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Stocks drop as chipmakers, tech and other stocks slump due to rate bets
Global stocks fell on Monday, with a selloff of technology and semiconductors shares leading the way. Investors were bracing for a more aggressive Federal Reserve response to inflation. Wall Street saw the Nasdaq, a tech-heavy index, lead losses. Semiconductors?and?some megacaps were also under pressure. Nvidia shares fell 3%, Tesla shares dropped 5%. Shares of SpaceX recovered from their initial declines and traded up 1.6%. Chip stocks fell 7%. The Dow Jones Industrial Average rose 0.06%. The S&P 500 dropped 1%. And the Nasdaq Composite fell by 1.6%. Amanda Agati is the chief investment officer of PNC Asset Management Group. The STOXX600 index fell 0.51% in Europe, due to losses among semiconductor and chip-equipment manufacturers. Seoul's KOSPI Index plunged by 10% in its biggest one-day decline since March. MSCI's global stock index fell by 1.26%. David Morrison, senior market analyst at Trade Nation, said that questions are being raised about AI infrastructure spending. This is especially true as some corporations plan to sell their equity in order to fund expansion. Time will tell if it is just another "buy the dip" opportunity or a sign of even worse things to follow. OIL RESISTS BELOW $80 BARREL Oil price remained "subdued", with Brent crude remaining below $80 per barrel, as tanker traffic in the Strait of Hormuz grew and physical market prices approached pre-conflict prices. After the first round talks in a tentative peace agreement reached last week to end more than three months war, the U.S. has agreed to?waive sanctions on Iran? for 60 days? starting Monday. Investors are now more focused on the inflation outlook and central banks policy, rather than lower oil prices. The markets now expect the Fed under Kevin Warsh to take a more firm stance on inflation. In recent sessions, U.S. Treasury rates have surged. The 2-year yields, which are highly sensitive to expectations of interest rate changes -- reached 16-month highs. Both 2-year and 10-year yields on Tuesday were slightly lower than the previous day, at 4.20% apiece. Investors are close to fully pricing in an interest rate increase by September, according to the money markets. In this context, the dollar has reached its highest level in a year against a basket currency. The data does not indicate that rates should be raised. It seems they should pause and wait to see how the Middle East conflict-driven inflation data will change as a result of the negotiations. The Yen is at a 40-Year Low Money markets have now priced in a rate increase by September. This has helped push the dollar index up to its highest level for a year against a basket. The index rose 0.32% last to 101.33. The strength of the dollar has had a 'heavy impact on the Japanese yen. It hovered at a low level for 40 years, 161.53 per $1. Investors reduced expectations of further European Central Bank tightening, and the euro fell below $1.14. It was its lowest level since a year. Satsuki Katayama, Japanese Finance Minister, said that she had discussed global financial markets on Monday with U.S. Treasury Sec. Scott Bessent. Analysts said this could indicate a rising 'risk of intervention for the support of the yen. The pound in Britain fell by 0.35%, to $1.3201, on the 10th anniversary. Sterling remained under pressure following the resignation of Prime Minister Keir starmer, which paved the way for a smooth transition to Andy Burnham. Gold fell 1.5%, to $4,127 per ounce, as expectations of higher interest rates reduced the appeal for non-yielding investments. Bitcoin fell by 2.95%, to $62,475.67. Ethereum fell 4.12% to $1.661.63.
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Gold drops as rate-hike betting boosts dollar to an all-time high
The?U.S. dollar?hit a one-year high on Tuesday, outweighing support from lower oil prices amid progress in U.S.-Iran talks. Dollar?hit a year-high on expectations of a Federal Reserve interest rate hike. This outweighed support from lower oil prices in light of progress in U.S. Iran talks. By 11:45 am, spot gold had fallen by 1.2% to $4138.79 an ounce. ET (1545 GMT). U.S. Gold Futures for August Delivery fell by 1.1% to $4156.40 an ounce. The U.S. Dollar rose to its highest levels in over a year, making gold more expensive for foreign buyers. Right now, gold and silver don't look to the Middle East. Bob Haberkorn is a senior market strategist for StoneX. He said that they are more interested in what the Federal Reserve announced last week. Investors have increased their bets for interest rate hikes after Kevin 'Warsh, the new Fed chair, made hawkish comments about inflation. According to CME FedWatch Tool, traders now expect a rate increase by December. This is up from the 61% they expected before the Fed's meeting last week. Gold is seen as an inflation hedge, but it suffers in high interest rate environments as the precious metal offers no return. The United States lifted sanctions against Iran for a period of 60 days, starting Monday, after the first round of talks in the context of a new peace agreement. However, hostilities continued in Lebanon, according to officials. Earlier, ?U.S. Vice President JDVance said that talks with Iranian officials had been a success in Switzerland, and laid the foundations for a "final peace agreement". He added that tanker traffic through the Strait of Hormuz has increased. Brent crude futures dropped more than 1% Tuesday. Investors now await U.S. The Fed's preferred inflation indicator, Personal Consumption?Expenditures, is due on Thursday. This data will provide further clues?on monetary policies. (Reporting by Sukanya Mitra and Anjana Anil in Bengaluru; Editing by Jonathan Aanda and Dita Pujara) (Reporting by Sukanya Mitra and Anjana Anil in Bengaluru; Editing by Jonathan Ananda and Diti Pujara)
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The top cases in the US Supreme Court docket
The U.S. Supreme Court has been deciding important cases in its current term. These include voting rights, presidential power, tariffs and birthright citizenship. Other issues are race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through the end of June. Separately, the court has also acted in emergency cases in several cases that challenge President Donald Trump's policy. VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of the Voting Right Act, making minorities less likely to challenge electoral maps under the landmark civil right law as racially biased. The court blocked a map that would have given Louisiana a U.S. Congress district with primarily Black constituents. The decision severely undermined Section 2 the Voting Rights Act which Congress passed to prohibit electoral maps that could dilute the power of minority voters. The ruling allowed Republican-led Southern States to demolish Democratic-held districts with majority-Black or majority-Latino voters ahead of November's midterm elections. After the Supreme Court gutted another part of the Voting rights Act in 2013, Section 2 gained more importance as a barrier against racial bias in voting. Black and Latinos tend to vote for Democratic candidates. Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict the birthright citizenship in the United States. Justices asked the lawyer for the Trump administration questions regarding the legal validity and practical implications of Trump's order. The lower court blocked Trump’s order that told U.S. government agencies to not recognize citizenship for children born in the U.S. when neither parent is an American citizen, or a legal permanent resident (also called "green card") holder. The court found that Trump's policy was in violation of the 14th Amendment to the U.S. Constitution and federal law codifying rights to birthright citizenship. The Supreme Court will likely rule by June's end. TRUMP'S TARIFS The Supreme Court ruled on February 20, 2018 that Trump's tariffs were illegal because they were based on a law intended to be used in emergencies. This ruling has major implications for global economics. The 6-3 decision upheld the lower court's ruling that Trump had exceeded his authority in using this 1977 law. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty. TRUMP'S FIRE OF FED OFFICIAL Justices expressed skepticism about Trump's attempt to fire Federal Reserve Governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" by the president, though it does not define this term or establish procedures for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her post, said that the allegations were a pretext for firing her because of monetary policy disagreements, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June. PROTECTED STATUS OF IMMIGRANTS On April 29, the justices heard arguments examining Trump's administration's actions to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of his signature crackdown on immigration. The Trump administration appealed two federal judge's rulings that halted its efforts to terminate Temporary Protected Status (TPS), which the U.S. Government had previously granted to over 350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the challengers' claim that the administration didn't follow mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June. Federal Trade Commission Firing The conservative justices of the court have signaled that they will uphold Trump's legality in firing a Federal Trade Commission Member and give an historic boost to president power, while also putting at risk a 90-year old legal precedent. On December 8, the court heard arguments in the Justice Department appeal of a decision by a lower court that said the Republican president overstepped his authority in dismissing Democratic FTC member Rebecca Slaughter before the term she was to serve expired. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to independent agency heads unlawfully infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June. TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban transgender athletes to female sports teams, amid an escalating nationwide effort to restrict transgender rights. On January 13, the court heard arguments from Idaho and West Virginia in appeals of lower court decisions siding with transgender student who challenged the bans as being in violation of the U.S. Constitution, and a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June. LGBT "CONVERSION THERAPEUTY" The court rejected on March 31, a Democratic-backed Colorado Law that prohibited psychotherapists from using conversion talk therapy to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor who argued that the ban was an intrusion into free speech rights. The Colorado court rejected the argument that their law only protected speech, but regulated professional conduct. The court reversed a lower-court decision that upheld a law brought by Kaley Chiles who argued it violated First Amendment protections from government abridgment. HAWAII GUNS LAW The conservative Justices expressed skepticism about a Hawaii gun law which restricts the carry of handguns in public places, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a ruling by a judge that Hawaii's Democratic backed measure probably complies with U.S. Constitution Second Amendment rights to bear and keep arms. Hawaii's law demands that a property owner "expressly authorize" the bringing of a handgun on private property. Four other states in the United States have laws similar to Hawaii's. The ruling is expected to be made by the end June. Drug Users and Guns The court, on June 18, limited the application of an U.S. Law that prohibits firearms possession by certain drug users. It rejected a position taken the Trump administration which threatened the rights of millions Americans who use marijuana but own firearms. The justices upheld the decision of a lower court to dismiss a charge of illegal gun possession brought under the law in question against Ali Hemani. Hemani is an American-Pakistani who lives in Texas and told authorities that he regularly used marijuana. The Supreme Court ruled that the government failed to prove that Hemani's prosecution was in compliance with the Second Amendment of the U.S. Constitution, which allows citizens to "keep and carry arms." CAMPAIGN FUNDING The court heard arguments in December in a Republican led bid to strike federal limits on spending coordinated by candidates and political parties. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether 'federal limits on campaign spending coordinated by candidates they support violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that upheld restrictions regarding the amount of money political parties can spend in campaigns, with input from candidates who they support. This type of spending is called coordinated party expenses. The ruling is expected to be made by the end June. MAIL-IN-BALLOTS On March 23, conservative justices expressed skepticism about a Mississippi law that was challenged by Republicans. The law allows for a five-day period of grace to allow mail-in votes received after Election Day be counted. This case could lead to stricter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end June. U.S. ASYLUM - PROCESSING: The court seemed likely to rule for the Trump administration's defense of its authority to reject asylum seekers when officials deem U.S. - Mexico border crossings to be too overburdened to process additional claims. On March 24, the court heard arguments in a dispute over a policy known as "metering," which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. Immigration officials to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June. WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s efforts to stop thousands of lawsuits alleging that the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure. The lower court rejected Bayer’s argument that U.S. pesticide law bars lawsuits based on claims made under state laws. The ruling is expected to be made by the end June. Human Rights Abuses Abroad The Justices, on June 23, further limited the scope of a federal statute used to hold companies liable for abuses of human rights committed abroad. They issued a decision ending a suit brought by members of Falun Gong accusing Cisco Systems facilitating religious persecutors in China. Justices overturned a lower court decision which had given new life to the lawsuit brought in 2011 under the Alien Tort Statute of 1789. Cisco was accused of developing technology that enabled the Chinese government to monitor and persecute Falun-Gong practitioners. The Alien Tort Statute allows non-U.S. Citizens to seek damages from American courts in cases of violations of international laws. SEC "DISGORGEMENT" POWER On June 4, the court rejected a challenge against the U.S. Securities and Exchange Commission’s broad authority to recover illicit profits through a financial remedy known as disgorgement. This strengthened one of the key powers of the Wall Street watchdog. The court upheld the decision of a lower-court that endorsed an extensive use of disgorgement powers by the SEC. In this case, the Trump administration defended the SEC. A defendant brought the challenge after a California court ordered him to pay back more than $3,000,000 in unjustified gains and interest in connection with a financial fraud case. FCC FINES FOR WIRELESS CARRIERIES The Supreme Court ruled on June 4, defending the Federal Communications Commission system of levying fines and ruling against AT&T's and Verizon's challenge to the agency. Trump's administration defended FCC's system of assessing financial penalties known as forfeiture order. The carriers argued that FCC's internal?proceedings" deprived them of the right to a jury-trial under the U.S. Constitution. Compensation from Cuba The Justices on June 23, made it easier for U.S. firms to seek compensation for property seized by the former government of Fidel Castro, ruling in ExxonMobil's lawsuit against Cuban State-owned Firm Corporacion CIMEX. The court ruled that a defense known as foreign sovereign immunity which prohibits U.S. suits against foreign governments or their agents is not applicable in cases such as the one Exxon filed against CIMEX. This was under the 1996 Helms-Burton Act. In a second case, on May 21, the court ruled against four American cruise operators who contested a combined $440 million judgment in litigation brought by an American company accusing them of using docks that they built in Cuba and later seized. 'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case over whether or not law enforcement's use a "geofence warrant" to identify suspects using data from mobile phones near crime scenes is a violation of the Fourth Amendment's bar against unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google, to search for mobile devices near crime scenes around the time of the crime. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June. CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator who is trying to impede an investigation by the state into whether these facilities are engaging in deceptive practice. First Choice Women's Resource Centers brought a federal suit against a subpoena issued by the state attorney general in 2023 seeking information about the organization's doctors and donors. The lawsuit had been dismissed by a lower court. First Choice's facilities are designed to discourage women from getting abortions. RASTAFARIAN INMATES The Justices refused on June 23, to allow a Rastafarian inmate in Louisiana to sue prison officials after they shaved his head and held him down in violation of religious beliefs. This was a case filed under a federal statute protecting people incarcerated from religious discrimination. The justices affirmed a lower court decision dismissing Damon Landor’s lawsuit, because the law at issue didn’t allow him to sue individual prison officials and security guards for money damages. Landor's religious beliefs require him to grow his hair. INMATE ON DEATH ROW A man convicted in Alabama of a murder committed in 1997 was spared the execution on May 21, after the court upheld a ruling that he is intellectually handicapped and therefore ineligible to receive the death sentence. Alabama officials appealed a lower court's method of determining Joseph Clifton Smith’s intellectual capacity. The justices rejected the appeal. This method involved weighing the multiple intelligence quotient (IQ) test scores along with expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person with intellectual disabilities violates the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment. JURY COMPOSITION On May 28, the justices sided with an inmate on death row who claimed that prosecutors had discriminated against him by preventing Blacks from serving as jurors in a 2006 trial where he was found guilty of murdering a grocery store manager. They found that the state courts of Mississippi had not evaluated Terry Pitchford’s claim that four Black potential jury members were unlawfully dismissed, in violation of a 1986 Supreme Court precedent called Batson v. Kentucky which prohibits exclusions based upon race. SENTENCE REDUCTIONS The court ruled May 28 that judges could not order early release of prisoners based on the fact that they would receive?shorter prison sentences now following the 2018 criminal justice reform legislation. The court upheld the lower court rulings against two Pennsylvanian men convicted of armed burglaries who requested compassionate release on the basis of First Step Act which Congress passed many years after their sentences. SECURITIES LITIGATION The court sided on June 11, with a group investment funds affiliated to BlackRock and other asset management firms in their attempt to defend against certain lawsuits filed by private plaintiffs pursuant a federal securities law. The court reversed an earlier ruling that allowed the hedge fund Saba Capital Master Fund, to sue the Investment Company Act of 1941 to invalidate fund bylaws that restricted the voting rights of activist shareholders. The Trump administration backed BlackRock and FS Credit Opportunities, as well as other funds in the case including Adams Diversified Equity Funds, Adams Natural Resources Funds and Royce Global Trust. COX COPYRIGHT DISSENSION The court ruled that Cox Communications could not be held responsible for the piracy of songs by subscribers to its internet service. These labels included Sony Music, Warner Music Group Universal Music Group, and others. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP. PHARMACEUTICAL SKINNY LABELS The court ruled that the generic version of Amarin Pharma Vascepa, a cardiovascular medication made by Hikma, did not violate Amarin Pharma patents. This decision could make generic drugmakers more resistant to patent suits involving "skinny label" claims. The justices reversed a decision by a lower court in favor of Amarin. Generic drugmakers argued that Amarin's victory in the case could have deterred them from producing and selling their cheaper drugs, and raised U.S. drug costs.
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Dallas Fed study finds that oil shock hurt US GDP, but the message was resilience.
A new Dallas Fed study estimates that oil surging above $120 per barrel in spring of last year 'cut three-tenths a percentage points from U.S. economic output. However, the impact was only a fraction of the damage caused by a similar oil spike back in the 1980s when imports were more prevalent. After the U.S. supported war against Iran, which led to the closing of the Strait of Hormuz Shipping Lanes, the roughly 15% reduction in global oil supply impacted the commodity markets around the world. Prices rose and supplies became scarcer in some parts of the globe. Dallas Fed researchers estimate that the war caused a 1.7% drop in economic activity outside of the U.S. As a net oil exporter, price changes have a double edged effect on the U.S. They hit consumers when gasoline prices rise but also benefit oil industry firms and stockholders. U.S. efficiency is also improved. Economic output is less dependent on energy today than it was in the past. Dallas Fed economists Lutz Killian, Michael Plante, and Alexander W. Richter created a model to estimate how different impacts net out. They found that the economy was much more resistant to oil price changes than it had been in the 1970s or 1980s, during previous Middle East supply disruptions. These 'earlier disruptions' were smaller, but occurred at a time where the U.S. spent around 8% on oil, compared to around 3% now. The research showed that a similar change in supply to what was experienced in the 1980s would have reduced GDP by 5.6%. In the rest of world, output fell by 6%. These findings confirm recent data that the war has not had a significant impact on the U.S. economy. Job growth in recent months and consumption have been relatively unaffected. Federal Reserve officials are worried about the effect on prices, but they also believe that inflation will be short-lived. The U.S. economic growth rate was around 1.6% per annum in the first three month of this year.
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Climate-vulnerable nations push for global financing framework
Climate-vulnerable nations and major development banks have launched a new initiative aimed at providing more affordable and predictable financing for countries that are increasingly faced with climate shocks and increasing debt costs. Climate Vulnerable Forum and its "V20" finance minsters have agreed on the "Vulnerability To Viability (V2V), which brings together 74 economies, as well as more than a dozen lenders from the World Bank to OPEC Fund in Vienna. The plan aims to fill 'financial gaps left behind by global crises and more frequent and severe droughts, floods, or hurricanes? The Compact is focused on providing affordable and concessional financing, mobilizing private capital, and developing "shock responsive" financing such as loans that have payment suspension clauses. This helps governments maintain essential services in times of crisis. The outline of the initiative stated that it would prioritize investment in "water systems, education systems and health care" sectors which it called "the bedrock for human security". Barbados Prime Minster Mia Mottley, who has been a proponent of the initiative for many years, said that it would correct an "injustice", as debts borrowed to build?sanitation system?,?schools? or hospitals are usually repaid within 10-20 years even though they have served populations?for generations. The group will develop further details including possible financing targets and mechanisms in a White Paper that they expect to present at the World Bank?and IMF annual meetings in?Thailand mid-October. The countries and banks involved in the project added that they are committed to using "concessional resources strategically and catalytically", and continuing coordination. (Reporting and editing by Andrew Cawthorne; Marc Jones)
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Bangladesh calls for more climate finance support after saying that the $300 billion target falls short
Bangladesh demanded on Tuesday that the $300 billion per year global climate financing goal be increased to meet developing country needs. Tarique Rahman, the Prime Minister of Bangladesh, urged wealthy countries to honor their climate commitments before the next United Nations climate negotiations, which will take place in November. He spoke at the World Economic Forum Annual Meeting of the New Champions, held in Dalian, China. Bangladesh, one of the most vulnerable countries in the world to climate change is looking for'support to finance projects that will help it cope with rising flooding, cyclones and river?erosion, as well as saltwater intrusion. At the U.N. Climate Summit in 2024, countries had agreed to increase their annual climate financing provision to $300 billion. But Rahman said this was not enough to meet mitigation and adaptation requirements of developing countries. He urged a greater?mobilisation' of the U.N.'s Green Climate Fund, and urged government to make climate financing more accessible. He said that the Loss and Damage Fund should move beyond promises to deliver, by providing a predictable and accessible support for victims nations. Rahman said that adaptation measures are crucial for countries such as Bangladesh. They'must stand side by side with emissions reduction efforts.' He cited a number of domestic initiatives, including dredging 12,500 km (12,500 miles) worth of rivers and canals to reduce flooding, and planting 250 million trees. He said that "climate resilience?cannot by built by one country alone." He called for stronger global partnerships in finance, technology, and action. (Reporting and editing by Milla Nissi - Prussak).
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The Economy Minister of Italy says that Italy will not be able to hold elections in April next year.
Giancarlo Giorgetti, the Economy Minister said that Italy could not hold a national election this April as it would not allow enough time for the government to approve plans to devolve greater powers to regional authorities. Giorgetti responded to reports in Italian media and Bloomberg stating that Prime Minister Giorgia meloni could seek elections for April of next year. This would be a few month earlier than the deadline set by autumn 2027. Giorgetti told a conference organized by the newspaper La Verita that we could not vote in April in order to finish 'the parliamentary passage' (of the regional-devolution legislation). The supporters of early elections point out that voting at the end?of Meloni?s term?of office in September 2027 would mean there wouldn't be a full-power government during the budget session?in?October. This is a sensitive time when new financial targets are being set. Giorgetti stated in separate remarks that Italy had a good chance to exit a European Union infringement process this year due to its excessive budgetary deficit. Rome's 2025 deficit, as reported by the national statistics bureau ISTAT on March 1, was 3.1% of its gross domestic product. This is just above the 3% limit set by the?EU. Rome cannot leave this procedure because it limits the fiscal room that can be used. Giorgetti stated that "the match isn't yet over", noting that the 2025 budget deficit could be revised lower at a scheduled review in September. He said he did not believe this would happen, but that he still had hope. Giorgetti said that the government will not extend the reduction in fuel excise duties beyond the current deadline on July 3 due to the recent downward trend of diesel and petrol prices. Giorgetti stated that the measure was no longer needed in light of current circumstances. Since its introduction in March, the measure has been extended several times and reduced in size. This was in response to an energy shock caused by the US/Israeli strike on Iran on 28 February. (Reporting and editing by Gavin Jones, Crispi Balmer and Giuseppe Fonte)
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US announces $17.5 Billion in Conditional Loans for Nuclear Power
The U.S. Department of Energy announced a total of $17.5 Billion in conditional loan for 'utilities and energy companies to purchase reactors, and other infrastructure needed to rebuild U.S. Commercial Nuclear Supply Chain. U.S. Energy Sec. Chris Wright told journalists that the loans would help the U.S. reach its goal of having ten new large-scale reactors under construction by 2030. This could potentially accelerate that timeline by three year. Wright said that this has drawn the attention of both data center hyperscalers - tech giants who run a 'global cloud computing and infrastructure' - and energy companies, as U.S. electricity demand has increased?with rapid expansion of data centers for U.S. artificial intelligence capabilities. Wright told reporters that he was confident these projects would be economically beneficial for utility shareholders, ratespayers, and hyperscalers. Energy Dominance Financing (formerly known as Loan Programs Office) of the Energy Department will provide up to five loans. Each loan will be used to support two Westinghouse reactors with a combined power of 1.1 gigawatts on a particular project site. Westinghouse is partnering with up to five eligible utilities and energy providers nationwide, who will "procure" the reactors and other supply chain requirements at a set price. Wright stated that seven utilities had?expressed an interest to date, but refused to disclose their names or the locations of projects. Westinghouse will jointly own each project with a utility or energy company partner. Each will have to commit $500,000,000 before they can access DOE loan funds. Wright stated that "this is not a dangerous endeavor." (Reporting and Editing by William Maclean, Valerie Volcovici)
Three people are killed in Gaza by Israeli strikes, say medics
Israeli strikes in Gaza killed three Palestinians on Wednesday, according to health officials. The militant Palestinian group Hamas also said that an end to these attacks is crucial for further talks?on safeguarding the U.S.-brokered truce.
Medical personnel?said that one Palestinian had been?killed? in an airstrike near Mughraqa, a central Gaza Strip area.
Israeli forces said they had killed a suspicious person who was acting near forces in a controlled area.
Two brothers were killed in a separate Israeli airstrike in a courtyard of a home in Maghazi Refugee Camp, said medics.
Israel's military has not commented on the incident immediately.
The ceasefire was brokered by the U.S. The ceasefire brokered by the U.S.
The indirect talks to implement the second phase of this deal, including the disarmament of the group and the withdrawal of Israeli troops, have reached a deadlock.
Sources familiar with the negotiations said that further talks were expected in Egypt this week, but Hamas denies sending delegates.
On Wednesday, a Hamas official said that the group is in constant contact with mediators. He also stressed the importance of ending Israeli attacks on Gaza.
The official stated that Israel has refused to end its attacks, continues to restrict aid and goods entering Gaza, and expands its occupation in violation of the ceasefire agreement.
Israel claims its strikes aim to?thwart imminent attacks. Israel also claims that it allows goods and aid to enter Gaza.
Gaza health officials, who do not differentiate between combatants or civilians, have reported that 930 "Palestinians" have died in Israeli strikes since the truce started.
Israel's military confirmed that four Israeli soldiers were killed by militants in the same time period.
(source: Reuters)