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UN weather agency reviews its priorities after funding is cut
A spokesperson for the U.N. Weather Agency said that it plans to reduce some positions and review its priorities because dozens of countries including the United States are behind in their fees. This week, during a conference in Geneva, the World Meteorological Organization (WMO), which was founded in 1951 to provide global weather forecasts and coordinate data, established a task force for a review of early warning systems against deadly climate disasters. In August, the WMO began restructuring its budget to reduce costs in line with broader U.N. Reforms. This was done even though the rate of climate change is increasing, particularly in developing countries, where there are no early warning systems. According to a document viewed by, the WMO plans on cutting 26 positions and reducing travel. Clare Nullis, spokesperson for the company, said at a Friday press conference: "We need to ensure that we are ready for our future and we're able to face it." She said that a taskforce would be formed in January to "tweak", or adjust, the WMO’s work in light of current funding restrictions and new opportunities like the use artificial intelligence for weather prediction. A WMO document shows that the outstanding late payments amount to approximately 48 million Swiss Francs ($60m) at the end of August. This is equivalent to about two-thirds its annual budget. The U.S. is owed over 30 million Swiss francs. According to a spokesperson for the U.S. State Department, the administration is focused on making sure that taxpayer dollars spent at the U.N. serve U.S. national interests. The congress was attended by U.S. delegate. Washington, under President Donald Trump has announced that it will leave some U.N. organizations, including the U.N. backed Paris Climate Accord to slow down climate change. It is also late with paying other U.N. organisations. Trump has repeatedly questioned international organizations' effectiveness, costs and accountability, saying they fail to serve U.S. interest.
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After US inflation data, stocks rise and benchmark Treasury yields fall briefly
The major stock indexes rose on Friday, with U.S. shares hitting new highs. Benchmark U.S. Treasury Yields fell briefly as data revealed that U.S. Inflation rose less than anticipated last month. This reinforced expectations that the Federal Reserve would cut interest rates during its next policy meeting. The U.S. Dollar was unchanged, but oil prices rose further. They had already risen by 5% on Thursday, after the U.S. imposed sanctions against major Russian oil companies. The U.S. Consumer Price Index increased by 0.3% in September, slightly less than expected (0.4%), after rising 0.4% in August. "Today's data on inflation shows that we are not in a similar crisis to 2022. Prices are rising, but in a controlled manner. Callie Cox is the chief market strategist for Ritholtz in Charlotte, North Carolina. The Fed is expected to reduce rates two more times this year, with a quarter-percentage-point cut baked in for the October 28-29 meeting, according to LSEG calculations using rate futures. Donald Trump's announcement on social media, that he would end all trade negotiations with Canada, had a limited impact on the Canadian dollar. The Canadian dollar last fell 0.28% against the greenback, at C$1.4. Intel shares were up by 1.3% on Friday after the company's results beat expectations. This added to optimism in Wall Street. The Dow Jones Industrial Average gained 346.77, or 0.74 percent, to 47.081.38, while the S&P 500 climbed 52.67, or 0.78 percent, to 6,791.01, as well as the Nasdaq Composite, which rose 251.42 or 1.10 percent, to 23,193.53. Apple and Microsoft are among the "Magnificent 7" U.S. firms at the heart of the artificial-intelligence boom that will report their earnings next week. The U.S. stock market has soared this year and some analysts are predicting a bubble. MSCI's index of global stocks rose 6.22 points or 0.63% to 1,001.31. The pan-European STOXX 600 rose by 0.1%. After a brief dip following the U.S. Inflation data, the U.S. Dollar was almost flat on Friday. The dollar index (which measures the greenback versus a basket including the yen, euro and other currencies) rose 0.03% at 98.97. Meanwhile, the euro gained 0.07% to $1.1625. The dollar gained 0.15% against the Japanese yen to reach 152.81. Data showed that the business activity in the Eurozone grew more rapidly than expected in October. Euro zone government bond yields rose. Treasury yields in the United States were a little mixed on Friday. The 10-year yield was briefly lower after the CPI report. The yield of the benchmark 10-year U.S. notes rose 0.2 basis points to 3.991% from 3.989% at Thursday's close. The yield on the 2-year note, which moves typically in line with Fed interest rate expectations, was down by 1.5 basis points to 3.467% from 3.482% at late Thursday. U.S. crude climbed 0.73% to a barrel of $62.24 and Brent rose 0.8% to $66.52 a barrel. Spot gold dropped 0.03%, to $4123.69 per ounce. Reporting by Caroline Valetkevitch and Elizabeth Howcroft, both in New York, with additional reporting from Laura Matthews, also in New York, and editing by Toby Chopra and Joe Bavier.
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Argentina's farmers vote for Milei before midterm elections
Argentine farmers renew their confidence in Javier Milei, ahead of the midterm elections on Sunday. This is a vital sector for the government to generate foreign currency. The radical libertarian President, who hopes that his minorities will have a significant increase in representation in Congress, needs the support of farmers in Argentina. Since Milei took office nearly two years ago, he has received broad support from the agricultural sector. This sector shares his vision for unrestricted, deregulated markets. The government of Milei has taken steps to lower unpopular export taxes. In July, the government lowered the export tax for soybeans and corn - the two main crops of the country - by 20%. Milei promised to completely eliminate the taxes, even though they remain high at 26% and 9,5%, respectively. Martin Doffo is a 51-year old farmer from 25 de Mayo in the province Buenos Aires. "He wants the necessary path, tax reduction, lower export taxes, and work reform. All things we need." The 'Risk' of the Peronist The main opposition is the Peronist Party led by Cristina Fernandez de Kirchner. During her tenure, she clashed repeatedly with the agricultural sector over export quotas that were protectionist and price controls. "There are many farmers who do not want Kirchnerism back," said Horacio deciancio, a 70 year old cattle rancher in San Vicente, a small rural town near Buenos Aires. He said he was betting on Milei’s "market-based policies, where demand and supply can open up markets to the rest of the world." The farmers Milei spoke with also expressed their support for labor reforms that would increase the formal workforce, which he has stated he will push through the next Congress. According to them, the hiring of workers is complicated by bureaucracy under the current system. On October 26, half of Argentina's lower Chamber of Deputies (127 seats) and a third of its Senate (24 seats) will be up for elections. Currently, the Peronist movement is the opposition party with the largest majority in both houses. About half of the seats in the lower chamber are up for election. Milei's relatively young party, La Libertad Avanza has just 37 deputies, and six senators. Experts say that Milei's party would gain more than 35% in the polls, which is a sign of increasing support. (Reporter Maximilian Heath, Writing by Leila Miller Editing by Margueritachoy)
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The FOREX-US Dollar is almost flat after falling on low inflation
The U.S. Dollar was almost flat Friday, after it had dipped following new inflation data showing that U.S. Consumer Prices increased less than anticipated in September. This kept the Federal Reserve on course to reduce interest rates next week. Consumer Price Index increased by 0.3% in September and 3.0% over the past 12 months. The economists polled had predicted that the CPI would rise by 0.4% this month, and by 3.1% on an annual basis. The U.S. Dollar Index was down last 0.003%, at 98.934, following earlier falls of up to 0.2%. Marc Chandler, Bannockburn Capital Markets' chief market strategist, said that the headline was less rosy than expected. The dollar was sold by the news even though the market believed that the Fed will cut rates not only next Monday, but also in December. The CPI report has been published despite the lack of economic data due to the shutdown. The Social Security Administration used this figure to calculate the cost of living adjustment for millions upon millions of retirees, and other benefit recipients. It was originally due on October 15th. The euro was up by 0.06% and closed at $1.163. A survey released on Friday showed that the services sector led the growth in business activity in the Euro Zone in October. All Eyes on Trade The trade war fears returned after U.S. president Donald Trump announced that all trade negotiations with Canada had been terminated due to an Ontario advertisement featuring a recording by Ronald Reagan, the former US President who spoke negatively about tariffs. The Canadian dollar last fell to 1.403 US dollars, but the market's reaction was relatively subdued. Investors' attention remained focused on the upcoming meeting between Trump and Chinese president Xi Jinping. Some people have hoped that the Trump-Xi summit in South Korea will bring an end to the trade war which has been on and off between the two world's largest economies. Ben Bennett, the head of Asia investment strategy at L&G Asset Management, said: "I believe expectations for the Trump-Xi summit are high, and there is a risk that the situation will de-escalate significantly following the face to face meeting." Oil prices rose due to U.S. sanctions against Russian suppliers Rosneft & Lukoil for their involvement in the war in Ukraine. This weighed heavily on currencies linked to oil imports including the yen. The performance of the yen is also tied to policies of Japan's newly appointed Prime Minister Sanae Takaichi. Takaichi is widely considered a fiscal dove and a monetary dove. The yen fell to its lowest level in two weeks and was last trading at 152.87 US dollars. The data released earlier on Friday indicated that Japan's core consumers prices were above the central banks 2% target. This kept expectations alive of a rate hike in the near future. Government sources informed on Wednesday that Takaichi was preparing a package of economic stimulus likely to surpass last year's $92billion to help families combat inflation. Sterling was up 0.08% at $1.334, after stronger-than-expected retail sales that were boosted by demand for gold from online jewellers. This week, it was down 1% after investors added to expectations of a rate reduction from the Bank of England in this year. (Reporting from Hannah Lang in New York, and Samuel Indyk at the Bank of England in London. Additional reporting by Ankur Banerjee in Singapore. Editing by Nick Zieminski and Peter Graff.
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UN weather agency reviews its priorities after funding is cut
A spokesperson confirmed Friday that the U.N. Weather Agency plans to cut some positions and review its priorities, as dozens countries, including United States, have not paid their fees on time. This week, during a conference in Geneva, the World Meteorological Organization (WMO), which was founded in 1951 to provide global weather forecasts and coordinate data, established a task force for a review of early warning systems against deadly climate disasters. In August, the WMO began restructuring its budget to reduce costs in line with broader U.N. Reforms. This is happening even though the accelerating climate change caused by man increases the risk of deaths due to weather, particularly in developing countries without early warning systems. According to a document on the WMO's budget, it is planned that 26 posts will be cut and travel expenses reduced. Clare Nullis, spokesperson for the company, said at a Friday press conference: "We need to ensure that we are ready for our future and we're able to face it." She said that a taskforce will be formed in January in order to "tweak", or adjust, the WMO’s work in light of current funding restrictions and new opportunities like the use artificial intelligence for weather prediction. A WMO document shows that the outstanding late payments amount to approximately 48 million Swiss Francs ($60m) at the end of August. This is equivalent to about two-thirds its annual budget. The United States is owed over 30 million Swiss Francs (38 million dollars). The U.S. State Department has not responded to a comment request. The congress was attended by U.S. delegate. Washington, under President Donald Trump has renounced some U.N. organizations, including the U.N. backed Paris Climate Accord to slow down climate change. It is also late with paying other U.N. organisations. Trump has repeatedly questioned international organizations' effectiveness, costs and accountability, saying they do not serve U.S. interest. $1 = 0.7931 Swiss Francs (Reporting and editing by Kevin Liffey; Emma Farge)
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Angola bids to buy majority stake in De Beers according to source
Angola bid on Friday for the majority of Anglo American De Beers. This could lead to a standoff between Botswana and Angola.Botswana also wants control over De Beers. The company has operations in Botswana Namibia Angola South Africa and Canada. According to a June report, Anglo put it up for sale amid falling diamond prices. At least six consortiums had expressed interest. Bloomberg News reported that the source confirmed that Angola’s state-owned diamond firm Endiama submitted an offer to De Beers for a majority share. Botswana owns 15 percent of De Beers and considers it a strategic asset for the country, despite a global slump in diamond prices that has severely hurt the economy. The mining minister In July, The Southern African country wants to control De Beers. Angola had Sayings in September It said it wanted a minority stake and that the company should be run by a private sector firm.
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Spain investigates steelmaker for violating Israel Sales Ban
The Spanish High Court has opened an investigation into privately owned steelmaker Sidenor, which is accused of selling steel to a firm in Israel for the purposes of manufacturing weapons. This is one of the potential legal consequences that could result from Spain's ban of such deals. According to a statement, Judge Francisco de Jorge will lead the investigation against Sidenor CEO Jose Antonio Jainaga Gomez as well as two other executives. They are accused of smuggling drugs and being complicit in crimes against humanity and genocide. On November 12, they were called to testify. The court said Sidenor had sold steel to Israel Military Industries (a subsidiary of Elbit Systems) in a deal that was allegedly done without proper government authorization or registration. The High Court ruled that the executives "went forward with the deal knowing that (the company) was a producer of both heavy weapons and light weapons and that the materials sold were to be used in the manufacture of weapons." Sidenor stated in a press release that it has referred the case to its attorneys and will give the judge any information available. The Spanish government had decided in April to stop all contracts with Israel. This led to the steelmaker's announcement on July 1, that it would suspend all commercial relationships with Israel. Elbit Systems has declined to comment. The investigation is a result of a complaint that was filed by the Association of the Palestinian Community of Catalonia in July. Spain, which recognized a Palestinian state in Gaza last year, was a vocal critic, describing Israel's actions as genocide multiple times, an accusation that the Israeli government denies. In September, Spain banned aircraft and ships carrying jet fuel or weapons to Israel from entering Spanish airspace or calling at Spanish ports. This was done to put pressure on Israel to stop its Gaza offensive. It also reinforced the prohibition on Spanish companies selling weapons and materials to Israel. Washington mediated a fragile ceasefire in Gaza that came into effect on 10 October. The restrictions were maintained. Emma Pinedo, David Latona (Reporting). Emily Rose contributed additional reporting from Jerusalem. Editing was done by Andrei Khalip, Joe Bavier and Joe Bavier.
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Ribera, EU's Ribera, calls for stronger France-Iberia links to boost competition
The European Commission's Vice President Teresa Ribera stated on Friday that stronger electricity links between France, Spain and Iberia are crucial to Europe's competiveness. She urged France to play its part to allow long-delayed investments to flow. In April, a crippling blackout in Spain & Portugal exposed their poor connections with the rest of Europe. Analysts say the power outage in Spain and Portugal would have been less serious if they had more interconnectors for exchanging electricity with other countries. Ribera stated that an interconnected Europe is essential for the competitiveness of European industry. She told reporters that she hoped a pro-European nation, like France has always been, would understand that this was something that could not be denied. She added that she would pay as much attention to some projects, such as the expansion of links to Iberia, as it would new ones aimed at modernising grids in Europe. "It's very important to fully develop the interconnections between France and the Southwest of Spain through cooperation among the regional governments." Iberia's electricity capacity is only 3% connected to European neighbors, which is far below the EU target of 15% by 2030. Spain and Portugal has blamed France since years for blocking new interconnections. Maria da Graca Carvalho, Portugal's Minister of Energy, said that France showed a much greater level of openness after the outage. A meeting between the Commission and the three countries is expected to happen soon. She said, "We hope that the problem will be resolved." The European Investment Bank announced in June that it would invest 1.6 billion euro ($1.9 billion) to support a planned interconnector of power between Spain and France via the Bay of Biscay. Red Electrica, a Spanish company, and RTE, a French company, will receive loans from the European Union to help them launch their 400-kilometer project by 2028.
VW says production secure for coming week despite chip dispute
Volkswagen's German plants will continue to operate normally in the next week, as it seeks to protect its supply chain against a dispute involving Dutch chipmaker Nexperia. However, the automaker warned that short-term impacts were possible.
Sources told Reuters on Thursday that Volkswagen's main Wolfsburg plant production would continue as planned next week but there were uncertainties beyond that.
The Chinese ban on Nexperia chips in automotive and other industries has caused supply chains to be shaken. Companies are now looking for alternatives, as they wonder how long their stockpiles will last.
UNCERTAINTY RESURRES EVEN NEXT WOEEK.
Volkswagen said that production at its German sites was secure until Thursday, October 30. In parts of Germany, where Volkswagen's Wolfsburg and Zwickau factories are located, the following day is a holiday.
Volkswagen's spokesperson stated on Friday that "operations for the next week at all other German sites of the Volkswagen Group are also secured today as the current situation".
Skoda, Seat and Porsche are all part of the group.
The spokesperson added that the Volkswagen Group was in touch with potential suppliers and examining other sourcing options.
CHIP SHORTAGES HITTING SUBSIDIARIES
Nexperia does not supply Volkswagen or other automakers such as BMW and Mercedes directly. Its relatively simple computer chip is used in large numbers in car parts and impacts the supplier networks of companies more widely.
On Friday, a regional representative of the German IG Metall union expressed concern about deteriorating conditions.
Horst Ott said that some automotive suppliers have already announced furlough plans for their workers. He was speaking at an industry conference in Munich.
Mario Gutmann, a member of the works council at IG Metall and a parts supplier Bosch, announced at an event that the company will be furloughing workers in its Salzgitter plant.
When contacted, Bosch did not immediately comment on this matter.
The union representatives did not name any other companies. Rachel More reported. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
(source: Reuters)