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Boeing: Trump's plan to increase the equity stake in US defense companies does not apply
Boeing's head of defense said that the plan by U.S. president Donald Trump to acquire government stakes in strategic sectors does not apply to major defence firms. This is in stark contrast to comments made previously by senior government officials. Steve Parker, CEO of Boeing Defense, Space & Security, spoke on a panel during the Reagan National Defense Forum, a yearly industry event held in Simi Valley, California. Parker said, "I don’t think it applies to the Primes", referring to large legacy defense contractors such as Boeing, Lockheed Martin and Northrop Grumman. U.S. commerce secretary Howard Lutnick announced in August that the Trump administration is considering equity stakes with major defense contractors including Lockheed Martin. This announcement sent Lockheed, Boeing, and other defense companies' shares higher. In an effort to prioritise national security, the Trump Administration has acquired equity stakes this year in chipmaker Intel, and rare earths firm MP Materials. Trump has stated that the government will invest in more companies. (Reporting and editing by Mike Stone, Joe Brock and Deepa Babington).
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Indonesians walk over logs to reach a flood relief centre, as the death toll exceeds 900
Residents of Aceh Tamiang in Indonesia climbed over slippery logs on Saturday and walked about an hour to receive aid as the death toll grew to more than 900 from the floods and land slides that struck Sumatra this month. On Saturday, 916 people were confirmed dead as a direct result of the floods and landslides caused by cyclones in three Indonesian provinces, including Aceh. 274 are still missing, according to government data. About 200 people were also killed by the storm systems in southern Thailand and Malaysia. They said that survivors in the Aceh Tamiang area, located on the northeast coast Sumatra, scrambled over logs, passed overturned cars, and walked an hour to get to an aid distribution center set up by volunteers. Witnesses said that volunteers distributed clean clothes to people and brought a tanker truck full of fresh water for them to fill their plastic bottles. Residents Drink Floodwater Dimas Firmansyah (14), a student at an Islamic board school, told reporters that Aceh Tamiang was cut off and students had spent a week at the school searching for food, boiling water and drinking it. Dimas, who urged the government to visit the region to witness the disaster first-hand, said: "We spent about a week in the area." Local officials in Sumatra called on the Jakarta government to declare an emergency so that additional funds can be allocated for rescue and aid efforts. Earlier in the week, Prabowo Subito stated that the situation had improved and that current arrangements were adequate. ENVIRONMENTAL GROUP SAYS DEFORESTATION IS TO BLAME Green group say deforestation related to mining and logging aggravated floods. Indonesia is investigating suspected companies of clearing forests in flood-hit areas. Indonesia's Environment Ministry said that the companies had been temporarily stopped from operating and will be required to conduct environmental audits. North Sumatra Hydro Energy operates a 510 megawatt hydropower station in North Sumatra's Batang Toru area, Agincourt Resources operates the Martabe Gold Mine in Batang Toru and Perkebunan Nusantara III is a state-owned agricultural group. The company did not respond immediately to a comment request. North Sumatra Hydro Energy did not respond immediately to a LinkedIn query. A spokesperson for Agincourt Resources said that the company declined to comment as it hadn't received an official letter about the stop. The environment ministry reported that aerial surveys showed land clearing in Batang Toru, which may have contributed to the flooding. (Reporting and writing by Ajeng Ufiana and Yudhistira, Stanley Widianto and Barbara Lewis; editing by Tom Hogue & Barbara Lewis).
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Police say 11 people were killed in a shooting at a South African bar, including a child.
Police said that at least 11 people, including a 3-year-old boy, were killed in a shooting attack on an illegal bar located in Pretoria. They also announced the launch of a manhunt for three unidentified suspects. In a press release, the Saulsville Township said that 14 more people were injured during the incident. The police did not specify whether the shooting took place inside or outside of the illegal bar known as a "shebeen" locally. The South African Police Service reported that three minors were among the dead, including 3-year-old and 12-year old boys (and) a 16-year-old girl. South Africa is home to one of the world's highest murder rates, with an average of 60 per day. (Reporting and writing by Olivia Kumwenda Mtambo, Editing by Bernadette B. Baum)
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Officials say 5 killed in border clashes between Pakistan and Afghanistan
Officials from both Pakistan and Afghanistan said that heavy gunfire was exchanged along the border between their countries late Friday night. At least five people were killed amid increased tensions after failed peace talks at the weekend. Zabihullah Mojahid, spokesman for the Afghan Taliban, said that Pakistani forces attacked Spin Boldak District in Kandahar Province. Hamdullah fitra, his deputy, said that Pakistani shelling killed five people including a Taliban. A spokesperson for Pakistan's Prime Minister said that Afghan forces fired "unprovoked" along the Chaman Border. In a recent statement, spokesman Mosharraf Zaidi stated that Pakistan remains alert and committed to protecting its territorial integrity as well as the safety of its citizens. The exchange took place nearly a week following a round of peace negotiations between the South Asian neighbors that ended without a breakthrough. Both sides, however, agreed to maintain their fragile ceasefire. The talks held in Saudi Arabia at the weekend were part of a series hosted by Qatar and Turkey to ease tensions after border clashes that killed dozens in October. Islamabad claims that militants from Afghanistan have been responsible for recent attacks on Pakistan, including suicide bombings with Afghan nationals. Kabul denies the accusation, claiming it cannot be held accountable for security in Pakistan. The violence along the border has been the worst since the Taliban came to power in Afghanistan 2021. Reporting by Mohammad Yunus Yawar from Kabul, and Saleem Ahmad in Quetta in Pakistan; writing by Nilutpal Timsina and editing by Edward Tobin & Bernadette Baum
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Brazil's robusta coffee producers push for quality despite rising prices and climate concerns
In the midst of the bustle and noise in a posh coffee shop located on Sao Paulo’s Oscar Freire Avenue a barista prepares an unusual espresso. The shot is extra creamy with a cocoa nib aroma, but lacks the acidity that distinguishes coffees made from arabica beans. This premium espresso is 100% robusta, a bean that has been criticized in the coffee industry as a cheap filler more suited to instant coffee. Marco Kerkmeester said that the coffee has a lot more chocolatey notes and makes a great crema. He also noted the appeal of a variety cheekily labelled "0% Arabica." Changes on the Farm Brazilian robusta producers are investing in the harvesting and drying of robusta beans to meet the demands of the most demanding customers. Brazil is the second largest robusta producer in the world after Vietnam, and also top arabica grower. A 2022 study revealed that due to drought and higher temperatures, more than three-quarters of Brazil’s best land suitable for growing arabica could be unsuitable for coffee by 2050. Premium robusta beans are a great way to reduce the cost of espresso blends by using arabica, which is more expensive. Lucas Venturim is a coffee grower from Espirito Santo, some 500 miles away, who grew the beans that went into the espresso at Oscar Freire. "He never accepted the notion that robusta is bad because it's robusta." The Specialty Coffee Association, which is responsible for setting global standards in specialty coffee, has revised its course this year to make it more appealing to those who would like to grade arabica or robusta beans. Anyone trained to evaluate top-notch coffee can now accurately describe and award deserving brews regardless of species or bean type. Kim Ionescu is the chief strategy officer at SCA. She cited the growing demand for robusta coffee in Southeast Asia as an example. It seems that species should not be used to determine whether a coffee is a specialty or not. SCA plans to update the vocabulary of descriptors for coffee flavor in 2026 to include characteristics associated with robusta such as aromatic spices. Coffee shops in London and Berlin showcase the finer qualities of robusta. Brands such as Nguyen Coffee Supply have already made a name for themselves in the U.S. Fires out, dryers in Espirito Santo is home to the majority of Brazil's robusta, and has begun a transformation that puts quality above all else. According to a presentation from the state agriculture secretary, which was seen by us, the state wants to produce 1.5 millions 60-kg bags each year of robusta specialty by 2032. This is up from just 10,000 today. According to Jose Roberto Goncalves of Brazil's largest robusta cooperative, Cooabriel, this is about a 10th of the current state output. To achieve that, the best post-harvest techniques, now used by arabica producers in Brazil, must be adopted more widely. Cooabriel participated in trade shows for specialty coffee around the globe. Goncalves explained that Cooabriel teaches farmers how to use modern dryers, and sort the beans carefully, instead of drying them with fire. Experts from the state-funded research agency Incaper, and the federal university IFES have reported a rise in farmers who want to certify their robusta beans as a higher-priced special grade. Douglas Gonzaga de Sousa is the coordinator of the Center for Specialty Coffees of Espirita Santo. More arabica farmers are now experimenting with robusta due to its growing popularity in Brazil and historically high yields when compared to arabica. Michel Tesch is Espirito Santo’s Undersecretary for Rural Development. He said that the traffic was largely in one direction. He said, "We do not have people who leave robusta to make arabica." Cooabriel will expand its robusta nursery to Espirito Santo, increasing production from the current 2 million saplings annually to around 10 millions. Prices are rising. Marcio Ferreira is the director of national coffee exporter Cecafe. He said that the rising quality of Brazilian Robusta has led to higher prices and a stronger demand. Cecafe's data shows that the average price of Brazilian specialty robusta per bag has risen to $295 for a 60-kilogram bag, which is more than twice the price in 2021. The price of Brazilian robusta has risen by more than 80% to $4,370 per ton since 2021, according to Cecafe data. Ferreira added that as roasters reduce the arabica content in espresso blends, they are openly highlighting the robusta characteristics. Jordan Hooper is the head of green coffee trade at Sucafina. He said that the original idea behind specialty robusta was "to compete with specialty Arabicica." "Now, it's more like: robusta is interesting by itself." Natalia Ramos Braga said that Brazil was a hotbed of these tastes. She said that people, particularly in Brazil, prefer coffees with a richer mouthfeel, and a bitterer finish. If someone wants more bitterness or a bigger body, robusta is the coffee for them. Reporting by Oliver Griffin, Alexandre Meneghini and Rod Nickel.
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Australian authorities urge thousands of people to flee bushfires in New South Wales
Wildfires in Australia’s New South Wales burned through thousands of acres of bushland Saturday, prompting authorities to urge the evacuation of thousands of residents. The alert was issued for the Phegans Bay/Woy Woy region in the central coast of the state, which has a population exceeding 350,000. This area is located about 45 km (about 30 miles) north-east of Sydney, the capital of the state and Australia's biggest city. The Australian Broadcasting Corp reports that 16 homes have been destroyed by bushfires in the region. On its website, the Rural Fire Service of the State said: "Leave if you can safely proceed to Woy Woy." The Bureau of Meteorology reported that a heatwave in New South Wales on Saturday, with temperatures of 42 degrees Celsius, increased the fire risk. In a recent statement, Prime Minister Anthony Albanese urged people to "take care of each other" and heed the advice of authorities. Authorities reported that more than 50 bushfires had been burning in the state as of late Saturday night. This included a fire in the Upper Hunter region, which was also rated at the highest level of emergency, and had burned through nearly 10,000 hectares. After several seasons of relative calm, authorities have warned that this summer in Australia will be a season with heightened bushfire risk. The "Black Summer" of 2019-2020 fires destroyed an area as large as Turkey and killed over 33 people. (Reporting and editing by William Mallard in Sydney, Sam McKeith from Sydney)
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San Diego pays $30 million to the family of a teenager killed by police
According to U.S. news reports, the city of San Diego agreed to pay $30m to the family a 16 year old boy who was shot dead by a police officer while he was fleeing from another teenager who opened fire on him. San Diego Union-Tribune, New York Times and other media outlets reported that the settlement reached by the Californian city is one of the biggest in a civil case for wrongful death arising from an act of US law enforcement. The amount received by the family for Konoa, who was killed in the early hours of the morning of 28th January, is more than the $27 million paid out in 2021 to the family for George Floyd, whose death in the hands of Minneapolis policemen in the summer of 2020 sparked nationwide protests in support of racial equality. The Floyd settlement at that time was thought to be one of the largest in its type. According to the Union-Tribune, Nicholas Rowley is an attorney representing Wilson's family. "It is really noble. ... There was an officer trying to keep the public safe. It was an error." Rowley and the San Diego City Attorney's Office did not respond to requests for comment. According to reports, the payment will be made by the city as well as Officer Daniel Gold II who shot Wilson. The city stated that the settlement was not an admission of responsibility by anyone and was only a business decision. The Union-Tribune reported that Gold, who was on the force for only two years when the shooting occurred, has continued to work in the department as an administrator. According to The Times, Rowley warned in his legal brief that he would seek $100 million damages if this case went to court. As seen on video, the incident in January began when a teenager pulled out a gun to fire at Wilson as he ran from a train platform. The body camera worn by Gold as he ran toward the gunshots captured the moment he met Wilson, the fleeing teen, when he emerged from the corridor. Wilson is seen screaming in pain as he runs past the officer. Gold then shoots him without warning, from behind. After the shooting, officers tending to Wilson are seen discovering a concealed handgun in his clothing. A short time later, the youth passed away at a local hospital. The Times and Union-Tribune reported that the City Council, who tentatively approved this settlement in September was expected to vote Tuesday to authorize the payment. Reporting by Steve Gorman, Los Angeles; Editing and proofreading by William Mallard
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US court rules that Trump can remove Democrats on two federal labor boards
The U.S. Court of Appeals for the District of Columbia Circuit ruled on Friday that President Donald Trump has the authority to dismiss Democratic members from two federal labor boards. This is a significant victory in the Republican president’s attempt to rein in agencies intended to be independent. In a 2-1 ruling, the U.S. Court of Appeals of the District of Columbia Circuit ruled that federal laws allowing removal of members of the National Labor Relations Board or Merit Systems Protection Board only on grounds of misconduct violated the U.S. Constitution. Circuit Judge Gregory Katsas wrote in a court opinion that because these agencies have significant executive powers, they should answer to the president. Another Trump appointee was Circuit Judge Justin Walker. In a dissenting view, Circuit Judge Florence Pan said that Congress wanted to protect the boards from political interference by making them independent of the White House. This was done for about 30 other agencies. Pan, a former Democratic President Joe Biden appointee, wrote: "Under the reasoning of my colleagues, it would appear that no independent agencies can exist legally in this country." The D.C. The D.C. In May, the Supreme Court temporarily suspended lower court rulings. Requests for comments were not immediately responded to by the White House or Wilcox and Harris' lawyers. The NLRB is responsible for hearing private-sector labor issues, while the merit board hears appeals from federal employees who were disciplined or terminated. The merit board, which is often the only legal remedy for federal employees, could play a crucial role in Trump's purge of the federal workforce. Both agencies have members appointed by the President, but federal law allows them to be dismissed only for cause, such as inefficiency, negligence of duty, or malfeasance. Trump removed Harris and Wilcox from both agencies in January without any cause, marking the first time that a president has fired a member. He removed other officials, who normally would keep their jobs under a new administration. These include members of other boards as well as inspectors general that monitor individual agencies to check for corruption and waste. On Monday, the Supreme Court will hear arguments over whether Trump has the authority to fire a Federal Trade Commission member. Its decision could establish an important precedent for the president's power to remove members of a variety of federal agencies. In a 1935 decision, the Supreme Court upheld protections against removal for FTC employees. Harris and Wilcox argued that this ruling also applied to their case. The D.C. Circuit disagreed on Friday, saying that the labor boards were structured differently and had more power than the trade commission. Both labor boards were paralyzed by the removal of Harris and Wilcox, who had already vacated their seats. They lacked enough members to make individual decisions. In October, the U.S. Senate confirmed a Trump nominee for the merit board. This restored a quorum to two members. Two nominees are awaiting votes on NLRB seats. Legal experts are closely watching the issue, as removing protections could allow Trump to have more direct control of regulation in areas such as trade, energy and antitrust enforcement. Reporting by Daniel Wiessner, Albany, New York. Editing by Alexia Garamfalvi. Matthew Lewis. Peter Graff.
QUOTES - Trade and labor associations, analyst on Trump's reciprocal duties
Donald Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties for some of the biggest trading partners. This could lead to a trade conflict and upset the global economy.
Countermeasures from trading partners could result in a dramatic increase in prices of everything, including bicycles and wine.
Trump has already levied 25% on automobiles and auto parts.
SCOTT WHITAKER, CEO, ADVAMED
"This type of tariff would be similar to an excise duty." R&D would be the most immediate and direct victim, as it threatens America's leadership in medtech innovation. Tariffs would cost U.S. workers, increase health care costs and hinder future medical progress."
RYAN ORABONE MANAGING CONSULTANT BEARINGPOINT
"Diversification (of the supply chain of an apparel retailer) and manufacturing is a moot issue because tariffs impact every major geographic facility where we produce clothing."
Brands need to be more strategic than ever before and plan everything with precision. "There is no room for errors anymore, including assortment, allocation and pricing."
DAVID SWARTZ ANALYST MORNINGSTAR FOLLOWING FITNESS
The huge tariffs on imports from Vietnam are clearly a negative for Nike Adidas and other sportswear companies. Due to the difficulty of manufacturing, athletic footwear can't be easily produced in other countries. Tariffs are also being levied on other Asian nations.
The industry will not react in a panic. If the tariffs remain in place, sportswear prices will rise and margins could be affected.
The chances of significant footwear and apparel manufacturing in the US being a result of any of these initiatives are virtually zero.
MARI SHOR SR., EQUITIES ANALYST AT COLUMBIA TREADNEEDLE INVESTIMENTS, WHICH HOARDS NIKE STOCKS
"The announcement of the tariffs is much worse than expected." Nike and other footwear companies will find it difficult to avoid a 46% tariff against Vietnam. The companies will try to fight back against vendors but tariffs are likely to drive up inflation in many categories and pressure consumer discretionary spending."
CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON
"You know what's amazing is that an announcement about trade policy could become emotional."
"These are the things we've been preaching about for years. We've watched our factories and our capabilities being hollowed-out. To see a President address this and use some words and thoughts I've used, was incredible."
LIZ SHULER PRESIDENT AMERICAN FEDERATION of LABOR and CONGRESS INDUSTRIAL ORGANIZATIONS
The Trump administration's attacks against the rights of union workers at home, the gutting of government agencies that work to discourage outsourcing of American jobs, and efforts to erode crucial investments in U.S. Manufacturing take us backward.
RICHARD CAPETTO, SENIOR DIRECTOR, NORTH AMERICAN GOVT. AFFAIRS IPC
"A strong U.S. electronic industry requires a holistic approach - one that combines targeted investments and incentives, with policies that promote mutually beneficial trade partnership. Trade is crucial to innovation, cost-competitiveness, and supply chain resilience. Tariffs could increase costs for American companies and drive production overseas.
ZOLTAN VAN HEYNINGEN EXECUTIVE DIRECTOR, U.S. WOOD COALITION
We welcome President Trump's measures and the focus of his administration on Canada's unfair trading practices. We are especially pleased that the President has launched the Section 232 Investigation under the Trade Expansion Act of 1964 focusing on the imports of softwood lumber.
MARK COMPTON EXECUTIVE DIRECTOR THE AMERICAN EXPLORATION & MINING ASSOCATION
We are encouraged that the Trump administration is prioritizing the production and processing of domestic minerals so we can have the raw materials our manufacturing base, and society needs. We are looking forward to working together with the administration in order to ensure that the domestic mining industry can meet this challenge.
TONY REDONDO, FOUNDER AT COSMOS CURRENCY EXCHANGE
Intel is not immune to the cost increases caused by imported chips. Semiconductor giants such as Nvidia are also affected. China's retaliation against rare materials may worsen shortages.
PC makers (Dell and HP) may face cost increases of 10%-25%, which could add $200-$500/unit to the unit price, causing margins to be squeezed or prices to rise.
The cost of chips and steel may cause delays for AI server companies (Nvidia and Amazon).
Construction and retailers like Walmart could also be affected.
"Short-term, higher costs and chaos." "Long-term, maybe more U.S. Manufacturing but labor and infrastructure are lagging."
Consumers will face higher prices by 2025, unless companies absorb the costs. This is not common.
BERNSTEIN ANATOMY
"We are concerned that the vehicle and part tariffs will be here to stay, and they will add a significant cost burden to this sector." We see more downside risk for automotive stocks if automotive tariffs do not get reversed, but are instead extended.
TOM MADRECKI VICE-PRESIDENT OF SUPPLY CHAIN RESILIENCY CONSUMER BRANDS AFFILIATION
The majority of consumer packaged goods are already manufactured in the United States. There are some critical inputs and ingredients that must be imported because they are scarce in the United States. Tariffs alone will not bring these ingredients back to the U.S.
"Reciprocal Tariffs that don't reflect the availability of ingredients and inputs will increase costs, limit access to affordable products for consumers and unintentionally hurt iconic American manufacturers." We urge President Trump and his advisors to refine their approach to exempting key ingredients and inputs, in order to prevent inflation and protect manufacturing jobs.
LENNY LARCCA, KPMG U.S. AUTOMOTIVE LEADERS
"U.S. Automakers are looking for steps they can take to mitigate tariffs in the short term, such as working on items that can be shipped to the U.S. rapidly without major investment." Massive longer-term investments require more time and clarity."
The current playbook of the U.S. automobile industry is insufficient, and it's a momentous time for them. Automakers have an opportunity to change the way they do business. Leverage emerging technologies like AI in all areas of their business. Explore and make alliance decisions faster. "Speed up the vehicle production cycle time."
This watershed moment presents an opportunity for mergers and purchases.
DAVID McCALL, PRESIDENT UNITED STAINWORKERS INTERNATIONAL
We must make sure that our trade policy is aimed at cheaters and not trusted economic allies such as Canada. We should work to build relationships, not barriers, with partners who have shown their commitment to join us in tackling the global overcapacity.
The administration must also take measures to prevent companies using tariffs to increase prices on consumers.
MIKE HAWES is the CEO of UK's Society of Motor Manufacturers and Traders.
The tariffs cannot be absorbed, and the U.S. consumer may pay more for British products, while UK producers could have to reduce production due to a constrained market.
SETH GOLDSTEIN MORNINGSTAR ANALYST FOR U.S. SETH GOLDSTEIN, MORNINGSTAR ANALYST ON U.S.
"I expect lower volumes due to tariffs." Tariffs are likely to be passed on to the consumer in order to increase prices of products. "I expect that consumers will buy less goods."
Due to the high fixed costs of chemical production, lower volume would have a large impact on profits. We could also see another year with declining profits if tariffs are widely implemented. Many chemical producers manufacture their products in the U.S. for domestic sales, so there is less direct impact.
DAVID FRENCH EXECUTIVE V.P. OF GOVERNMENT RELATIONS AT THE NATIONAL RAILWAY FEDERATION
"More Tariffs = More Anxiety and Uncertainty for American Businesses and Consumers. Tariffs represent a tax that is paid by U.S. importers and passed on to the final consumer. No foreign country or supplier will pay tariffs. "We encourage President Trump, to hold trading partners responsible and restore fairness to American businesses without creating uncertainty or higher prices for American consumers."
ART WHEATON DIRECTOR, ILR SCHOOL CORNELL UNIVERSITY, LABOR STUDIES
It will take years and billions to bring new manufacturing jobs online. However, expansions in existing factories can happen much faster. Companies prioritize stability. Frequent policy changes can slow down investment decisions, as businesses wait to see clearer long-term signals.
MICHAEL ASHLEY SCHULMAN IS A PARTNER AT RUNNINGPOINT CAPITAL ADVISORS AND THE CIO.
"Trump may be trying not only to bring manufacturing back to the U.S. but also to increase the economic instability of China by putting tariffs on Chinese goods. Tariffs of 34% on Chinese products could force Chinese manufacturers to shut down, leading to increased unemployment and social unrest in China.
If these tariffs are imposed, they will have a significant impact on the PC, server, and semiconductor manufacturers.
Investors, analysts and politicians will all be watching with bated breathe to see what happens after this 'Liberation Day volley' from the administration. The announcement today is likely to be a worst case scenario. Hopefully, any negotiations will lead to improvements. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava in San Francisco; Abhirup Roy and Caroline Humer at New York City; Nick Brown, Shounak D. Dasgupta, and Alan Barona for the editors.
(source: Reuters)