Latest News
-
Canada will boost Arctic defenses and says it cannot rely on other countries
Mark Carney, the Prime Minister of Canada, unveiled on Thursday a C$35 Billion ($25.7 Billion) plan to 'boost Canada’s defenses' in the vast Arctic region as the country tries to reduce?its?reliance on the United States. Canada has relied on U.S. assistance to monitor the Canadian Arctic for many years. The Canadian Arctic covers an area of 4.4 million sq km (1,7 million sq mi) of land and water - more than India and almost entirely uninhabited. Trump's tariffs, and his musings on annexing Canada, have caused tensions. "We won't depend on one nation anymore, but instead, we will build a stronger and more independent country." Carney stated that Canada will take full responsibility to defend its Arctic sovereignty with this new plan. Canada was under constant pressure to increase its defense spending by the United States, even before Trump returned to the White House in 2017. Last June, Canada vowed to increase funding for the military. It has promised to reach NATO's 2% target for military spending five years sooner than expected. Carney stated in January that the United States and other large nations were undermining the traditional order based on rules, which had long been beneficial to Canada. He said that "the assumptions?that have shaped Canadian defense?and security for decades are being upended." Carney, in a speech delivered in Yellowknife (the capital of the Northwest Territories, and the home of Canada's Arctic Military Command), said that climate change was causing the Arctic to warm three times faster than global average. The amount of new money in the plan was not made clear. Ottawa announced in 2022 a plan worth?C$38.6billion to modernize Canada's defenses, and the North American Aerospace Defense Command it operates jointly with the United States. Canada has four Arctic airfields, each of which can house six fighters. Around 2,000 soldiers are also scattered around the area. Carney's plan includes investing C$32billion to expand military airfields and build four operational hubs. Two commercial airports would be upgraded and two roads proposed from Canada's northern regions to the southern ones would be accelerated. Trump has shown a keen interest in the Arctic, and its mineral potential. He has also 'commented about annexing Canada' and 'insisted that the U.S. need Greenland in order to defend itself against Russian and Chinese interests. Canada's Arctic region is approximately 25% of global Arctic. The region, which is rich in rare mineral deposits, has very little infrastructure, making mining extremely expensive and complex. Carney will fly to Norway's north later on Thursday to observe NATO's biennial drills. (1 Canadian dollar = 1.3620 Canadian Dollars) (Reporting and writing by Maria Cheng, Editing by Caroline Stauffer & Edmund Klamann).
-
Chile and the US are looking to collaborate on rare earths, critical minerals
Chile and the U.S. signed a statement on Thursday to start?discussions about rare earths and critical minerals. It was added that the first meeting would take place in 'the next two weeks. The areas of possible coordination include public-private financing of mining projects, management of scrap minerals recycling and exploration of new projects that can help boost mineral supplies in both countries. The Trump administration is pushing to reduce the reliance on China in a number of key minerals that are used for electric vehicles, semiconductors defense systems and consumer electronics. Chile is the second largest lithium producer in the world, but it depends on imports for other minerals. Christopher Landau, U.S. deputy secretary of state, told journalists that the United States and Chile can work together to improve?the supply chain of these minerals. Landau continued, "We will discuss ways we can work together." Landau, formerly the U.S. Ambassador to Mexico, signed with Chilean Foreign Minister Francisco Perez Mackenna at a Santiago ceremony presided over by Kast. Albemarle, a Charlotte-based company in North Carolina, has been producing?lithium for over 50 years in the northern Atacama area of the country. It is the world's leading producer of this?battery material. Albemarle did not comment immediately on the partnership between?the two countries. EnergyX, a Puerto Rico-based startup in the lithium technology sector backed by General Motors aims to construct a $1.1billion lithium facility in Chile. The facility is expected to be operational in 2028, and will eventually produce 50,000?metric tons of lithium per year. Teague Egan of EnergyX, the CEO of the company, said that signing a framework agreement on Kast's very first day as president is a great first step. He met Kast last Saturday at the "Shield of the Americas Summit" in Miami, hosted by U.S. President Donald Trump. (Reporting and editing by Sarah Morland; Additional reporting in Houston by Ernest Scheyder; Alistair Bell, Daina Beth Solon, and Sarah Morland)
-
Bessent: US Navy can escort ships in Strait of Hormuz alongside international coalition
The?U.S. The?U.S. Navy will escort ships?through the Strait of?Hormuz, possibly with an international alliance, when it's militarily feasible, U.S. Treasury Sec. Scott Bessent said in an interview with Sky News on Thursday. Bessent stated that he believed the US Navy would escort vessels through as soon as it was militarily possible. He said that the plan to escort ships would be implemented as soon as "the U.S. had complete control over the skies" and the Iranians' ability to rebuild their missiles was completely degraded. U.S., Israeli and Iranian strikes on Iran have escalated regional tensions. The response from Tehran has paralyzed shipping in the Strait of Hormuz and disrupted vital Middle East oil and gas supplies. Energy prices are also rising. Iran's Islamic Revolutionary Guard Corps has raised the stakes in the global economy by announcing that it will?block all oil shipments out of the Gulf until the U.S. There are in fact tankers coming through, Iranian tankers and I believe Chinese flag tankers. Bessent stated that we "know" they have not mined the Straits. Reporting by William James, Ismail Shakil and Caitlin webber; editing by David Ljunggren and Caitlin webber
-
No other victims reported in Detroit area synagogue shooting.
According to a law enforcement official, the suspect in a?episode?of gun violence that occurred on Thursday at a Detroit area synagogue has been shot dead. No other victims have yet been reported. Michigan State Police reported an?active shooting at Temple Israel Synagogue, located in West Bloomfield, Detroit suburb. The building's roof was visible from aerial footage, although few details were available. Many police and fire departments vehicles were gathered at the scene. According to CNN, Oakland County Sheriff Michael Bouchard stated that no injuries were confirmed "except possibly the shooter". Bouchard told reporters that the suspect drove through the building's doors in a car, then drove down the hallway before being confronted. The police could not confirm what killed the suspect, but they did say that security exchanged gunfire with him. He said that no children or staff members were injured. However, one security officer was struck by the vehicle and taken to hospital for treatment. Bouchard stated, "That individual should not be a problem." Later, a law enforcement official familiar with the case confirmed that the suspect had been shot at the scene. CNN, citing a number of law enforcement sources, reported that a large quantity of explosives was found in the trunk of the suspect's vehicle. Temple Israel has over 12,000 members and runs a center for early childhood education. It provides care to children as young 6 weeks, according to the website. Local media reported that buses were being used to transport children away from the synagogue to be reunited their parents. FBI Director Kash patel wrote in X that "FBI personnel are responding with partners to the apparent vehicle rammings and active shooter situations out of Temple Israel Synagogue, West Bloomfield Township in Michigan." In response to the Temple Israel incident, The Jewish Federation posted a message on Facebook stating that its affiliated agencies are "currently under precautionary lockdown". Since U.S.-Israeli forces launched airstrikes against Iran on 28 February, Jewish organizations in the United States are operating under increased security. This has triggered a war that is intensifying across the Middle East. "We have been talking about this potential for the past two weeks. It's a pity that it has happened." Bouchard told CNN that there had been a lot of preparation. "All Jewish institutions in the area will have an extra presence until we figure out this." In a statement, Michigan Attorney General Dana Nessel stated that "antisemitism has no place in Michigan. It cannot be tolerated." In moments such as these, it is more important than ever to come together, stand up with our neighbors and confront hate wherever it appears. Temple Israel, as per its website, was founded in 1941. Reporting from Washington by Jasper Ward; writing by Steve Gorman, editing by Scott Malone and Chris Reese; David Gaffen, Lisa Shumaker, and Lisa Shumaker
-
Oil reaches $100 per barrel; shares tumble after Gulf shipping attacks, Iran warns
Global?shares dropped on Thursday, as the attacks on oil tankers and the warnings of Iran?shattered the prospects of an impending de-escalation to the Middle East conflict. Oil prices rose around $100 per barrel, and inflation fears were stoked. Wall Street stock indexes fell, 'dragged down by the rising oil price and concerns over?the private credit market. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all dropped by about 1.2%. The STOXX600 pan-European equity benchmark fell 0.66%. The MSCI All-World Index fell by 1.2%. Brent crude futures rose as high as 10.4%, to $101.59 per barrel, before trimming their gains as concerns remained over whether the release of reserves would be sufficient to cushion the blow from the Middle East shock. Brent crude last traded just below $100 per barrel. U.S. crude futures last traded 8.7% higher, at $94.85 per barrel. Monica Guerra is the head of U.S. Policy at Morgan Stanley Wealth Management. She said that historically, geopolitically-driven equity volatility has been?short lived. If higher oil prices continue, however, "the Fed’s reaction function could become complicated, supporting a longer higher fed funds rate." IRAN WARNS MORE ATTACKS As STRIKES on TANKERS? In his first remarks after succeeding his father, Mojtaba Khmenei, the new Supreme Leader of Iran, said that Iran would avenge its martyrs' blood, close the Strait of Hormuz and attack U.S. military bases. Iraqi officials reported that two fuel tanks in Iraqi waters had been struck by Iranian boats laden with explosives. Meanwhile, an Iraqi official said to state media, "its oil ports have completely ceased operations." Rodrigo Catril is a senior FX Strategist at NAB. He said, "The market continues to be very concerned about what's happening in the Strait of Hormuz and the information we have received over the past 24 hours does not make for a good read." Iran had increased attacks on merchant vessels in the Strait of Hormuz. The number of ships that have been struck in this region since the fighting began has risen to at least 16 Tehran warned that oil could reach $200 per barrel. However, the U.S. Energy Secretary Chris Wright stated on Thursday that global oil prices will not reach this price. Inflation Risks The U.S. Consumer Price Index rose 0.3%, above the 0.2% rise in January. This was in line with expectations and higher than the 0.2% increase in January. The report was not considered particularly relevant, given that the Iran War has begun to fuel inflation. Globally, bond yields rose as the risk of rising inflation outweighed any considerations for safe havens. The yields on 10-year Treasury bills rose by 4.3 basis points, to 4.249%. They had risen 7 basis points overnight. The $2 trillion private credit markets were also a source of concern after Swiss private equity group Partners Group warned that default rates could more than double in the coming years. Morgan Stanley's share price fell by 4% following a similar action taken earlier in the month by Blackstone and BlackRock. Blackstone and BlackRock fell 3.8% and 2.3%, respectively. According to economists surveyed by, the U.S. Federal Reserve is expected to cut interest rates in June for the first time this year. Nearly 40% of economists polled by 'predict only one or no rate cuts this year. This is almost twice as many who predicted three or more. Investors on edge sought out the dollar's liquidity, while shunning currencies of countries which are net energy consumers. This includes Japan and most of Europe. The euro fell 0.4% to $1.1520. The dollar was slightly higher at 159.21 Japanese yen. Reporting by Lawrence Delevingne, Niket Nishant in London and Stella Qiu, Sydney; editing by Mark Potter and Kirby Donovan
-
Brazil scraps diesel taxes, but imposes a levy on exports of oil after price spike
Brazil's government has scrapped diesel taxes and imposed a tax on oil exports. The move, which was made on Thursday, could affect the state-run Petrobras as it tries to ease the impact of recent global oil price spikes. The administration of President Luiz inacio da Silva said that the temporary measures will reduce the impact on local fuel prices caused by price swings resulting from the U.S./Israeli war against Iran. The South American nation cut the PIS federal tax and Cofins federal tax levied on diesel to zero. It also imposed a 12 percent tax on crude oil and a 50 percent levy on diesel shipments. Lula said at a Brasilia press conference to announce the new measures that "oil prices have gotten out of hand". Diesel prices are on the rise, posing a serious threat to Brazil's powerful agricultural sector. Producers who have to harvest a record soybean crop or plant corn cannot afford to put off their plans. Petrobras may not have raised local fuel prices but Brazil is still partially dependent on imported diesel. Distributors are reluctant to sell the fuel at Petrobras prices because they fear a price increase in the future. Due to the tax reduction and the direct subsidy program, which will pay diesel producers and importers, the government expects the price of diesel at the pump to drop by 0.64 Reis ($0.1227). EXPORT TAX In a press release, the Brazilian government stated that it was aiming to increase domestic refining, and secure internal supplies. However, it is unclear what refining capacity Brazil has available to increase local diesel production. Petrobras operated its refineries around?91% capacity last year and aimed to raise it to 95% by the first quarter. In part, the company's net profit of nearly $3 billion in the fourth quarter is due to the record exports that occurred during this period. Sales to foreign markets increased by?41.7% on an annual basis to 42 billion reals, while sales to domestic markets dropped 6.8%. The Finance Minister Fernando Haddad stated that the measures "would not affect Petrobras’s own fuel pricing policy." Haddad said that they would run until the end of the year but the government is hoping for a quick-term solution to Middle East conflict.
-
After injuring and killing two, a gunman was shot at a Virginia university.
According to the university, a gunman opened fire on 'Thursday morning' at Old Dominion University, Norfolk, Virginia. He injured two people, before being fatally shot. The 'university issued an alert saying that the two injured people?were taken to hospital, and that classes and campus activities?were canceled for the rest of the day. According to the alert from the university, the gunman began shooting shortly before 10:49 in Constant?Hall. This is the heart of the college of business at the university. At?midday Thursday, police vehicles with flashing lights blocked streets around the Norfolk campus. According to the school's web site, the university has 24,000 students. Reporting by 'Ryan P. Jones and Rich McKay, Writing by Julia Harte, Editing by ChizuNomiyama.
-
UK gilts are scorched once again as the Iran war rages and BoE rate increase bets soar
British government bonds fell again on Thursday. The escalating conflict with Iran has prompted investors to price in a Bank of England interest rate increase this year, amid concerns about Britain's vulnerability?to energy prices shocks. Long-dated bonds dropped the most on Thursday. This was due to concerns about possible additional government borrowings for funding support for energy consumers. At 1547 GMT the yields on 10- and 20-year bonds, which move in the opposite direction to the prices, both rose by around 10 basis points. The former reached its highest level since September at 4,804%. Markets bet more on the BoE raising interest rates, a prospect that was viewed as highly unlikely just a week earlier. Oil prices reached $100 per barrel earlier in trading, and bets on rate hikes increased. Interest rate futures priced in roughly 60% of the possibility of a quarter point rise in borrowing rates by the BoE, compared to expectations of no change in borrowing costs on Wednesday. "In the face of an overwhelming number and variety of variables, no one expects the Bank to do more than wait," said Danni H. Hewson, the head of financial analyses at AJ Bell. She was referring to the announcement of interest rates on Thursday, following the meeting of the Monetary Policy Committee in March. "This decision is still a tough one. We will pay close attention to any advice about the way forward." Investors believe that Britain is more vulnerable than other Western countries due to its stretched finances and heavy reliance upon imported gas. The fall in gilt prices is a sign of a tightening financial environment in 'Britain. Both the Finance Ministry and BoE are concerned, given that economic growth in 'Britain is already weak. Mojtaba Khamenei, Iran's Supreme Leader, said Thursday that the country would continue to fight and keep the Strait of Hormuz closed. This month, the five-year yield is sensitive to changes in the medium-term outlook of interest rates. It has risen 63 basis points, the biggest increase since September 2022, when Prime Minister Liz Truss unveiled her disastrous economic agenda. Before 2022, the last time that five-year yields increased by this much was in January 1996. Investor appetite for sales on the primary market remains strong despite the drop in gilt prices in this month. The bids for the 500 million-pound auction ($667.8-million) of index-linked gilts that are due in 2049 were 3.57 times higher than what was offered. $1 = 0.7487 pound (Reporting and editing by Suban Abdallah and Susan Fenton).
Venezuela signss deal with Repsol to produce gas
Venezuela and the Spanish energy group Repsol signed "strategic agreement" on Thursday, according to a government statement. Delcy Rodriquez, the acting president of Venezuela, said on state television that the agreement would allow gas production to be carried out at Cardon?IV. This is a joint venture 50-50 between?Repsol, and Italy's Eni.
She said that the agreement would allow exports to expand.
Rodriguez stated, "I'm very happy that this is being done with two European companies that have stayed in Venezuela. They believe in Venezuela and didn't turn their backs to our people."
Venezuela's government has stated that it is "committed" to negotiating with international investors for oil and gas.
After the 'United States' captured President Nicolas Maduro, in?January it eased sanctions against Venezuelan energy sector by issuing general licenses that enables global energy companies to run?oil-and-gas projects in Venezuela, the OPEC nation.
Venezuela has a dilapidated infrastructure, despite having 'one of the largest oil reserves in the world. (Reporting and Writing by Daina-Beth Solomon; Editing Brendan O'Boyle).
(source: Reuters)