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Bangladesh garment workers suffer heat exhaustion amid power outages
* Energy crunch disrupts factories' cooling systems Plans for heat adaptation go slowly Experts say that legal safeguards and support for brands are necessary Tahmid Zami Tahmid Zami Since late April, the garment belt in the area around Dhaka's capital has experienced alternating rains and scorching temperatures. The temperature has reached 37 Celsius (98.6? Fahrenheit), with high humidity levels. Zahangir Alam is an independent fashion consultant. He said that many smaller garment producers find it too expensive to run generators when grid power fails. They therefore'minimize the use' of fans and cooling equipment. Kalpona Aker, executive director of Bangladesh Center for Worker Solidarity and a workers rights organization, said: "With such oppressive heat, many workers fall sick with profuse perspiration, nausea, cramps, and fainting." Bangladesh imports 95% of the energy it needs. The conflict in Middle East has caused a shortage of energy and an increase in fuel prices. A.K.M. said: "With the disruption of energy supply, industries struggle to maintain production, much less run fans, ventilation, and cooling equipment properly." Kamruzzaman is a manager of Matin Spinning Mill, located in Gazipur near Dhaka. In a survey published by the Bangladesh Institute of Labour Studies in February, 78% of 215 garment workers interviewed said they had experienced more summer heat and that about half of them had become weaker due to the high temperatures. The Lancet Countdown 2025, an annual report by The Lancet Medical Journal on climate change and health, reported that in Bangladesh, heat exposure caused the loss of 29 billion hours of potential work in 2024. This is a 92% increase compared to 1990-1999. The loss of income was estimated at $24 billion or 5% Bangladesh's GDP. According to a study conducted by Cornell University’s ILR Global Labor Institute in?2023, the failure to reduce the heat in factories, and the flooding that occurs around them, could cost the clothing industry $65 billion and potentially 1 million jobs in Bangladesh. EFFORTS TO PROTECT WORKERS ARE MOVED SLOWLY Experts in the sector and labour leaders said that protection for workers during heatwaves was patchy. There is no comprehensive framework to cover factory heat risks. A February report from Stand.earth Oxfam, and the Bangladesh Center for Worker Solidarity stated that five major global brands recognized the importance of addressing climate impact. However, little funding was available to help workers deal with heat stress. "But it's even worse at home, where we get only a few minutes of electricity every day," said Sikder. The efforts to protect low-income workers and residents from the heat have been slow. Dhaka North City Corporation (Dhaka South City Corporation) and Dhaka South City Corporation (Dhaka North City Corporation) launched climate action plans for 2024. These plans listed a number of measures that would protect workers and other people from heat, such as early warnings and strengthening the health care system in the city to combat heat-related illnesses and installing cool roofing in buildings and in slums. But Md. Rashid said that there have been few progresses on these plans. Jubaer Rashid is the Bangladesh representative for ICLEI. ICLEI is a global network of local government working on sustainability. ICLEI assisted the city corporations to develop the plans. Dhaka North City Corporation aimed to create a heat-action plan with measures such as planting trees and increasing awareness among residents of low income. Bushra Afreen was the former chief heat officer of Dhaka North City Corporation. She said that the work on the plan had stalled following the political turmoil which led to the overthrow in 2024 of Sheikh Hasina’s government. BRANDS Prioritise Decabonisation over Worker Adaptation The government adopted a national health adaptation plan for the years?2031-31. Meanwhile, the southern municipality of the city announced that it would plant 300.000 trees in the next five year. Farzana Misha is an associate professor of BRAC James P Grant Public Health. She said that her team worked with the government on mapping heat in Dhaka, and drafting a heat action plan. This would include specific interventions for each area, such as creating cooling shelters and early warnings. Misha said that Bangladesh's rules on ventilation, drinking-water and first aid in the workplace are good, but there is still a lack of specific heat-stress protections, such as mandatory breaks at temperatures above specified thresholds, and recognition of fatigue, and heat stress, as workplace health hazards. Climate experts said that brand compliance systems often ignore the issue of increasing heat in supply chains. HeatWatch is an international NGO that promotes heat awareness. The Stand.earth report, Oxfam, and BCWS, cites that better cooling systems, clean drinking water, and health support at factory level, as well as trade union-led initiatives, are all key measures for workers to adapt to heat. Varshney stated that brand sustainability budgets tend to prioritize decarbonisation rather than worker adaptation. Climate finance pledges made under the U.N. process for climate change have not reached garment workers in factory floors.
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UK will toughen its regulatory powers against price gouging
Finance Minister Rachel 'Reeves announced on Wednesday that Britain would give its competition watchdog greater powers to 'crackdown on companies who it determines have unfairly increased prices during crises. This move is a formalisation of the warnings made earlier this year by Keir starmer. He said that the government was prepared to give "further tooth" to the Competition and Markets Authority to combat suspected price gouging, as energy prices?surged after the U.S. and Israel’s attack on Iran. The new framework for "anti-profiteering", which was announced by the CMA, would give it and other regulators tools to take action faster in investigating sharp price increases and scrutinising company margins when supply shocks occur. This, officials say, should allow them to intervene earlier. Reeves stated that "working families are the first to feel the impact of global events on costs." She said: "I won't tolerate anyone who exploits a crisis for a quick profit." Regulators will also be able publish data about how margins of firms change during crises. The government says this is a way to discourage excessive pricing. In more serious cases ministers can grant limited time powers to order firms to stop exploitative pricing. Although 'energy costs' have increased since the Middle East conflict began, industry data suggests that the impact is yet to be felt in supermarket prices. In April, grocery inflation eased. Reeves’ office has also pressured major?supermarket group to agree to voluntary cap on essentials like bread, milk and egg in return for regulatory concessions. Sector has reacted with some opposition to the?proposal. The measures are a clear indication of the government's desire to combat rising prices without resorting to direct price control. (Reporting and editing by Edmund Klamann; Sam Tabahriti)
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Investment bank Lincoln International raises 421 million dollars in US IPO
Lincoln International announced?on Tuesday that it had raised $421 in its U.S. Initial Public Offering, clearing the way for one of the rare public market debuts by an investment bank. Chicago-based boutique investment banks and their selling stockholders, who were based in Illinois, sold 21 million shares at $20 each, which was the upper end of the price range they had set. This gave the company an estimated value of $2.04 billion. The IPO market is fueled by a robust investor demand. Cerebras Systems, a company that makes AI chips, has made a stellar debut, which encourages companies to list. However, the Iran War remains largely volatile. Lincoln, founded in 1996, is a mid-market focused investment bank that advises private capital firms about selling and buying businesses, securing financing, and valuing the organization or portfolio. It operates in two main segments: investment banking advisory and valuations and opinions. As of December 31, it had more than 30 offices in 14 countries, with approximately 1,400 professionals. In October, the Lincoln International acquired MarshBerry. MarshBerry is an advisory firm that serves insurance brokerage, distribution, and wealth management sectors. Its acquisition of Spurrier capital Partners in 2022, and TCG Corporate Finance in 2024, also increased its M&A tech franchise. Lincoln's M&A business is focused on private deals between $250 million to $2 billion. They also represent private equity firms in the sale of their portfolio companies. Goldman Sachs and Morgan Stanley were the two joint book-running managers. Lincoln will be listed on the New York Stock Exchange on Wednesday under the symbol "LCLN". (Reporting from Prakhar Srivastava, Bengaluru; and Natalia Bueno Rebolledo, Mexico City. Editing by Shilpa Majumdar.)
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Oil eases following the latest headlines about Iran war, as stocks fall due to rising US bond yields
The global stock index dropped on Tuesday as 30-year U.S. Treasury rates rose to their highest level since 2007. Oil prices also eased, as investors digested recent headlines about U.S. negotiations with?Iran in order to end the conflict. U.S. president Donald Trump said on Tuesday that it may be necessary to strike again at?Iran. He also stated that he was an hour from ordering an assault before postponing. Trump said on Monday that he had put off a planned resumption after a new Iranian proposal to end the U.S. - Israel war. U.S. Vice-President JD Vance stated that the United States has made significant progress in its talks with Iran and neither party wants to see the military campaign resumed. Brent futures fell 82 cents to $111.28 per barrel, and the U.S. West Texas Intermediate crude contract for June delivery that expired on Tuesday was down 89 cents to $107.77. The rising inflation concerns continued to push up U.S. Treasury rates. The yield on the 30-year Treasury bond reached its highest level in 19 years. Last time, it was around 5.18%. The yields on the 10-year U.S. Treasury note rose to their highest level in over a year. Peter Cardillo is the chief market economist of Spartan Capital Securities, New York. He said, "We are seeing the long-end of the market continue to rise." "That's why we see (stocks) in defensive mode." Stock valuations are challenged by rising yields, which increase borrowing costs and result in a greater discount on future earnings. Earnings from Nvidia, the world's largest?company, are due to be released on Wednesday. Expectations for this company will be sky-high. Walmart and other retailers will also be releasing their results this week. The Dow Jones Industrial Average dropped 322.24 points or 0.65% to 49,363.88, while the S&P 500 declined 49.44 points or 0.67% to 7,353.61, and the Nasdaq Composite was down 220.02 or 0.84% to 25,870.72. MSCI's global index of stocks fell 6.44 points or 0.59% to 1,091.79. The European stock market was higher on Monday, regaining ground that they lost last Friday, when they fell 1.5% due to bond market fears spreading to equity markets. Stocks in Europe are still below their pre-war level and lag behind their U.S. counterparts. This is because Europe imports energy and has less major tech companies. The pan-European STOXX 600 rose by?0.19%. U.S. U.S. The Iran War has not abated the fears of a long-lasting inflationary shock, mainly due to sharply rising energy prices. The yield on the benchmark 10-year U.S. notes increased 4.4 basis points from late Monday to 4,667%. Prices and yields are inversely related. British bond yields dropped?after reports that the most likely candidate to succeed Prime Minister Keir starmer would not change the country's borrowing regulations. The U.S. Dollar was up in part due to the?higher U.S. Yields, which were driven by inflation concerns and uncertainty about how new Federal Reserve Chairman Kevin Warsh would respond if prices continue to increase. The global rate hike expectation has changed, and traders are now pricing in higher 'probabilities' of rate increases from the Fed. The expectation is that policymakers are going to have to tighten their policies to combat the resurgence of inflation, which has been fueled by high energy prices. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.34% at 99.33. Meanwhile, the euro fell 0.45% to $1.1602. The?dollar gained 0.14% against the Japanese yen to 159.05. Data released on Tuesday revealed that Japan's economy grew an annualised 2.1% during the first quarter. This supports expectations of a Bank of Japan interest rate hike in June. Investors also await details of the government’s supplementary budget, which could further stress Japan’s already degrading public finances. This would weigh down the yen. Gold declined as the dollar strengthened. U.S. Gold Futures for June Delivery settled 1% lower at $4,511.20.
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Parabilis Medicines, a biopharmaceutical company, files for US IPO
According to a regulatory filing, Parabilis Medicines filed on Tuesday for an initial public offering in the United States. The company said it would use a portion of the proceeds from the IPO to help develop its drug pipeline. Investors' appetite for new listings is increasing after companies like?AI chipmaker Cerebras Systems, and geothermal power firm Fervo Energy have made strong debuts on the market. Parabilis, a biopharmaceutical firm in clinical development, is developing Helicons. This class of therapies targets proteins that are difficult to treat. The filing stated that the company's "lead drug" candidate, zolucatetide has been evaluated by?more 150 patients?and has demonstrated encouraging clinical results across several solid tumour types. Parabilis intends to use the IPO funds, as well as funds from a private placement, to advance clinical research on zolucatetide and expand its broader pipeline, support its Helicon platform, and for general corporate purposes. Regeneron Pharmaceuticals announced on Monday that it has partnered up with Parabilis. Parabilis could receive a milestone payment of up to $2.2 billion for developing treatments against hard-to reach disease targets. According to the filing, as part of their research collaboration, 'Regeneron' has agreed to purchase about $75 million?of Parabilis shares in the simultaneous private placement tied to IPO. Parabilis is slated to list on Nasdaq under the symbol "PBLS". Underwriters include Leerink Partners and BofA Securities. Reporting and editing by Shashesh Kuber in Bengaluru.
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Europe EV Sales Jump in April
According to data published on Wednesday, sales of fully electric vehicles in Europe's major auto?markets soared in April. This continued a strong growth as subsidies, policy supports and higher petrol prices boosted?demand. Data from E-Mobility Europe (formerly New Automotive) and Fier Automotive revealed that battery-electric vehicle (BEV), a proxy of sales, increased 34.1% in comparison to the previous year, reaching 201,541 cars across 15 European countries. This follows a rise of 51.3% in March. The increase in sales'suggests that the switch to electric cars in Europe is accelerating even as carmakers are facing weaker consumer demand on some markets, and increasing pressure from Chinese rivals. The policy lesson is that when governments instill confidence in consumers, BEV adoption increases. UNEVEN REGIONAL PICTURE Regionally, the picture is still uneven. The groups reported that in the first four month of this year, battery-electric vehicle registrations increased by 31.3%, to 740 021 vehicles. This increase has helped reduce oil consumption by nearly 3 million barrels. Germany was the biggest market in terms of volume with 25.8% battery-electric vehicle registrations in April. France had 26.2%. Northern Europe was ahead of the region with Norway at 98.6%, and Denmark at 81.9 %. Finland and Sweden had shares of 48.8% &?40.7%. Spain's battery electric registrations have risen?37.3% and Poland's by 50.1% year-to-date, but both remain below a 10% market share. Italy was the largest market with the highest growth rate, up 97.2%. These figures are derived?from the European Alternative Fuels Observatory and come before European Automobile Manufacturers' Association (EAMA) registration data, due on May 27, 2015. (Reporting and editing by Matt Scuffham; Amir Orusov and Mathias de Rozario)
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James Hardie's annual profit is below estimates due to weather and affordability problems
James Hardie Industries reported a lower-than expected annual 'profit' on Wednesday as bad weather disrupted?construction?activity in its key -markets, while affordability and inflationary pressures continue to hamper housing activity. The lower full-year profits underscore the pressure on building materials companies as a result of high mortgage rates, house price, and stretched affordability, which is weighing down?on new construction, repair and remodel activity. The U.S.-Israeli War with Iran has also increased energy costs, which are causing house owners to postpone large-ticket renovations. AZEK Exteriors contributed to the 25% increase in net sales, which drove a 3% rise in Siding & Trim. Europe sales grew 13% while Australia and New Zealand were flat. Net sales, however, fell short of Visible Alpha's expectations of $4.85bn, hurt by lower exterior and interior products volumes, weather-related volume pressures, and affordability concerns. The Dublin-based company reported an adjusted net profit?of $597.7 millions?for the fiscal year that ended on March 31. This is compared to $644.3million a year earlier?and slightly lower than the Visible Alpha consensus estimate of $597.7million. James Hardie, a leading fibre cement manufacturer, predicts net sales between $5.25 and $5.41 billion in 2027, with adjusted operating profits between $1.45 and $1.50billion. Reporting by Nikita?Jino Maria in Bengaluru and Jasmeen?Ara Shaikh; editing by Shashesh Kuber
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Citi warns that oil could reach $150/bbl if the risks of Hormuz are not mitigated.
Citi said on Tuesday that it expects Brent crude prices to rise to $120 per barrel in the short-term. It stated that oil markets undervalue the risks of a "prolonged supply disruption" and other "tail risks". The bank stated that its 'bull-case scenario' is that Brent prices will reach $150/bbl if the Strait of Hormuz gradually reopens during the third quarter. The oil prices fell on Tuesday, after Vice President JDVance stated that the U.S. had made progress with Iran in their talks. Neither side wanted to see military action resumed. Brent futures for the month of July?settled at $111.28 per barrel on Tuesday. The report said that its outlook for 2027 oil prices was 'extremely hard to predict. But its central case assumes Iran will maintain a 'control of the Strait of Hormuz flow and balance oil exports against demand growth expectations. Citi predicts that oil demand will contract by 0.6m barrels a day in 2026. The apparent weakness in demand is likely to overstate real consumption declines, as refinery reductions and inventory drawdowns mask relatively small end-use demand destruction. According to the bank, global oil inventories are expected to drop by approximately 1 billion barrels in 2018. Citi stated that "we?estimate" that the majority of these draws would occur outside China and that ex China inventories were on track to fall to 2011-2014 levels. Citi was optimistic about the short-term but said that the current market conditions must continue for six to nine more months before the inventory levels outside of China will drop to the levels seen in the second oil crisis. It maintained U.S. Henry hub?prices due to strong production, but also cited downside risks in Europe and Asia. TTF prices are expected to average around $17.8 for every million British thermal units, if disruptions continue. Anmol Choubey, Pooja Menon and Anushree mukherjee in Bengaluru contributed to the report; David Gregorio edited it.
Media reports indicate that Russia is concerned about US and EU activities in Central Asia involving rare earths.
The Deputy Foreign Minister Mikhail Galuzin, told the 'Izvestia' newspaper that Russia is worried by U.S. efforts to secure access to rare earths and vital minerals in Central Asia.
The?G7 nations including the U.S., EU and Canada have been exploring alternative markets to help reduce their reliance on Beijing.
Russia is interested in the Central Asian countries - Kazakhstan Kyrgyzstan Tajikistan Turkmenistan, and 'Uzbekistan. This is at a time when China has been increasing its focus on the region.
Galuzin, in an interview with?Izvestia published on Wednesday, said: "We are worried by the intensity of Washington's push for agreements on critical minerals.
"This isn't just about competition in economics, but about an effort to push Russia away?and?create a Western controlled infrastructure near our borders."
U.S. president Donald 'Trump' called critical minerals a "key priority" when he hosted five Central Asian nations at the White House in November. He also highlighted his administration's efforts to secure and expand U.S. supplies through new global agreements. (Reporting and editing by Jacqueline Wong in Tokyo)
(source: Reuters)