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Fortescue suspends senior executive under sexual harassment probe
Fortescue is Australia's third largest miner. On Tuesday, it announced that a senior executive was suspended while he was under investigation for allegations of sexual harassment. Fortescue took the allegations "extremely serious" and hired MinterEllison as an investigator, it said in a last-week statement. Australian Financial Review first reported the allegations against the senior executive, who has not been named, earlier this month. The miner stated on Tuesday that Fortescue had continued to seek external legal and governance guidance as the investigation progressed. The employee who is the subject of the allegations has decided to not work for Fortescue until the investigation is completed. Fortescue Energy Chief Gus Pichot said in a earnings call last Thursday that legal advice indicated the employee did not require suspension. He said that they had taken extensive legal and governance advice from external sources. "We are confident we're following the right process," he added. The issue of sexual harassment at mine sites has been persistent in Western Australia, and led to a state investigation in 2021. Fortescue received a class-action lawsuit in July, alleging workplace misconduct including sexual harassment and gender discrimination. The lawsuit was filed by the law firm JGA Saddler. They also launched similar "class-action suits" against Rio Tinto in 2024. These cases are still pending in the courts. Fortescue reported last week a 20% decrease in "psychosocial breaches", which includes?sexual harassment and ethics issues, with 98 incidents reported in the most recent financial year. The company with 16,154 employees said that it dismissed 11 people for violating its code of conduct in relation to sexual harassment and discrimination. The report found that there were 13 instances of inappropriate sexual contact and 10 cases of sexual harassment. It also discovered one case of sexual assault. (Reporting by Melanie Burton; Editing by Kate Mayberry)
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EARLY MORNING BID EUROPE - Waiting for Nvidia to complete the next leg of AI rally
Rae Wee gives us a look at what the future holds for European and global markets. The?session began in Asia with a muted tone, as stocks drifted ahead of Nvidia’s upcoming?earnings, where high expectations are being placed on the artificial intelligence darling. Alibaba's $10.2 billion sale of shares at a steeply discounted price to fund its AI plans and Samsung Electronics disappointing shareholder-return program in the previous session weighed on technology shares. A roughly 45% drop in?the share price of Unitree after a five-fold increase on its Shanghai debut triggered concerns over bubble risk, retail investors losses, and flaws within the IPO system. The shares of China's most-known humanoid robotics manufacturer were mostly flat on Tuesday after days of declines following its listing. It is up to Nvidia now to drive the next leg in the AI rally. This is because of its role as a bellwether of the broader AI ecosystem, which includes chipmakers and companies that finance the rapid expansion of datacenter capacity. Oil prices are also falling after the U.S.'s threat of an "economic D-Day," or a wave of sanctions against Iran, turned out to not be as serious as they had hoped. The U.S. announced on Monday a new round of sanctions to 'cut off Iran’s economic lifeline.' However, it stopped short of the harshest measures and instead warned the world not to do business with the Islamic Republic. Tehran has promised to retaliate and expressed confidence that major trading partners will resist Washington's pressure. Investors are watching for a series of data releases this week from Europe, including German GDP data and the German Ifo Survey on Tuesday. These could provide insight into the cost to the economy of higher energy prices over a longer period. Key developments on Tuesday that may?influence the markets: - Germany's GDP, Ifo survey – Reopening 2-year German Government Debt Auction - Reopening 7-year UK Government Debt Auction Confidence of U.S. consumers according to the Conference Board Thomas Barkin, President of the Federal Reserve Bank of Richmond (Editing: Saad Sayeed).
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Oil prices rise as investors assess the impact of US sanctions on Iran
The oil prices rose on Tuesday, after falling more than 2% the previous session. Investors were evaluating the impact of a new 'U.S. Sanctions?against Iran. Brent crude futures were up 27 cents or 0.3% to $92.44 per barrel at 0330 GMT. U.S. West Texas Intermediate crude rose 37 cents or 0.4% to $85.38. Both contracts settled lower Monday. U.S. crude fell to a new one-week low as profit taking took place after the prices had risen over the past two weeks. The market is not fazed at all by Washington's efforts to tighten economic pressure against?Iran. Traders see the U.S. push to nudge trading partners away from Iranian products as marginal and not market-moving. U.S. Treasury secretary Scott Bessent announced on Monday an expansion of sanctions in order to cut off Iran’s economic lifeline and force a?end to the war between the two countries. He told the countries that they must cut their business ties, or risk being cut from the dollar-based system. He refused to reveal the names of the countries targeted, or the date that the penalties would go into effect. Instead, he said he would give them some time to comply with the new directive. Although U.S. Secretary of Defense Pete Hegseth stated on Monday that the U.S. will not rule out the use of military force against Iran the country has turned to more economic coercion which analysts say removed concerns about Middle Eastern oil supplies being threatened by the war. Tim Waterer is the chief market analyst for KCM. He said that markets appear to be pricing in economic pressure as being a less-risky path for physical supplies than kinetic actions. This was why initially, oil moved lower rather than spiked higher. He warned that "Iran retains the capability to respond by disrupting the shipping, which continues a residual premium on the oil price." The United Kingdom Maritime Trade Operations highlighted 'those threats when an oil tanker, struck by an unknown projectile on Tuesday, was disabled and was located about 9 nautical kilometres (16,7 km) northeast from?Oman?s Ash Shishah. Iran still maintains that it should control the Strait of Hormuz. Before the start of the war in February, the Strait of Hormuz carried about 20% of the world's oil. It named 45 tankers who had violated its rules for crossing the Strait of Hormuz on Monday and threatened to take action, including seizing their cargo. Supply disruptions caused by the U.S. and Israeli war against Iran, which began on February 28, have led to countries reducing their 'commercial and strategic reserves. The Department of Energy announced on Monday that crude oil stocks in the U.S. Strategic Petroleum Reserve dropped by 3.7 million barrels, to 289.7 millions barrels, last week. This is the lowest level since November 1982. Ishaan Lerh and Jeslyn Arora reported from Bengaluru, and Christian Schmollinger edited the story in Singapore.
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Copper prices fall as dollar rises and new supply problems are outweighed
The copper price fell on Tuesday due to a stronger?dollar, and the macroeconomic climate, which overshadowed new fears about supply shortages triggered by withdrawal requests at the London Metal Exchange (LME). By 0301 GMT, the benchmark three-month copper contract on 'the 'LME had fallen 0.41% to $14,214 per metric tonne. The Shanghai Futures Exchange's most traded copper contract edged up 0.17% to 107 930 yuan (16,051.93) per ton. Red metal was also weighed down by the'stronger dollar', concerns about interest rates, and a cautious economic outlook. This is a reversal from Monday's gains, which were a result of a large increase in LME Copper warrant cancellations - meaning that metal was marked?for storage withdrawal - and "stoked new concerns about supply shortages," Daniel Hynes said, senior commodity analyst at ANZ. The dollar index was up by 0.08%. A stronger dollar can weigh on greenback-denominated commodities ?by making them more expensive ?for buyers using other currencies. Concerns about rising interest rates in the United States have been raised by concerns over tariffs and an apparent deadlock in negotiations to end the Middle East conflict. According to CME's FedWatch, traders were pricing in 42% of a rate increase at the U.S. Federal Reserve meeting on September, up from 36% one week prior. Interest rates that are too high can dampen economic activity, which in turn affects growth-dependent materials such as copper, which is used for power and construction. The gloomy conditions also helped Aluminium shrug off the news that a Russian aluminium manufacturer?Rusal had suspended exports of 600,000 tons per year alumina from its refinery in Guinea due to a derailment. The LME fell by 0.67% and the SHFE dropped by 0.21%. Zinc fell?0.37% among other?LME Metals. Lead dipped by 0.08%. Nickel dropped by?0.48%. Tin lost 0.44%. The SHFE showed that zinc gained 0.17%. Lead dropped 0.34%. Nickel lost 0.75%. Tin lost 0.47%.
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Investors await US inflation data as gold retreats from its three-month high
The gold price fell?on Tuesday, after reaching its highest?levels? in more than three month earlier that day. Investors' attention shifted towards upcoming U.S. data on inflation and Kevin Warsh's speech this week. As of 0334 GMT, spot gold was down by 0.2%, at $4,640.39 an ounce. U.S. Gold Futures remained steady at $4,696.00. Tony Sycamore, IG's market analyst, said: "We expect gold dips to be supported by buyers who are looking for gold. We also expect gold to move up towards the next resistance level at $4,900/$5,000." The U.S. Treasury Department announced that it would double its liquidity support buyback operation for longer-dated bonds and notes. Prices rose sharply in the last week. The announcement sparked currency debasement concerns. "These U.S. -dollar devaluation fears should see 'gold' well supported in the coming week, as the Fed is not sending a clear message it is prepared to fight higher inflation," TD Securities stated in a report. The risk rates may eventually rise, as crude oil grinds higher. Gold is often viewed as an inflation hedge. However, high rates can reduce its appeal because it is not a yielding asset. The Fed Chairman Warsh’s inaugural speech at this year's annual?Jackson Hole Conference has gained added importance as traders and analysts seek guidance on the recent rise in bond yields, and to reassure their independence from the Trump Administration. The U.S. The Personal Consumption Expenditures Report, the Fed’s preferred inflation indicator, is due Wednesday. Iran has vowed to respond in kind to the U.S. economic sanctions Washington claims will cut off Tehran's lifeline. Silver spot fell by 1.3%, to $68.01 an ounce. Platinum lost 1.2%, to $1853.85; and palladium dropped nearly 1%, to $1345.26.
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Japan does not plan to release crude oil from its national reserve during September and October
Ryosei Akazawa, Minister of Economy, Trade, and Industry, said that Japan will not release any more crude oil in September or October. He said that the amount of crude oil purchased in September will be about 80% less than the average monthly volume last year. This is because tankers which would normally travel through the Bab el-Mandeb Strait, are now being rerouted to the 'longer Suez route. Akazawa, a Japanese?press officer, said that Japan expects the August purchase to be the same as last year, but the September?volumes are expected to decline. This is because shipments via Suez take 55 days to arrive in Japan compared to 21-23 days via the Bab el-Mandeb Strait. * "Of those national reserves that have already been released, a portion has not been used due to the progress made in securing alternate supplies. Akazawa stated that using?that part would provide crude oil supply equivalent to a typical month in the past year. He added that Japan expects crude oil purchases to return to the average monthly levels of last year in October. (Reporting and editing by Kate Mayberry; Yuka Obayashi)
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Gold reaches its highest level since mid-May, as purchasing momentum builds
Tuesday's gold price hit a?higher than three-month high, continuing a rally that was?driven by?the recent announcement of the U.S. Treasury buyback. Investors are now focusing on key inflation data, and an upcoming speech from Federal Reserve Chair Kevin Warsh. As of 0146 GMT spot gold was up 0.4% to $4,668.19 an ounce after reaching its highest level since May 14, earlier in the session. U.S. Gold Futures increased 0.6% to $4724.50. Tony Sycamore, IG's market analyst, said that gold has continued to rise, and the return of?debasement trading last week has fuelled the latest leg of gains. He said: "We expect gold dips to be supported by buyers who are looking to see gold move towards the next resistance level at $4,900/$5,000." The U.S. Treasury Department announced that it would?double the size of liquidity support buyback operations for longer-dated notes and bonds. Treasury Department announced that it would "double the size" of its liquidity support buyback operations on longer-dated bonds and notes. The announcement sparked currency debasement concerns. TD Securities stated in a report that "these U.S. Dollar debasement concerns should see gold well supported in the coming week, as the Fed is not sending a clear message it is prepared to fight higher inflation." Gold is often regarded as a hedge against inflation, but high interest rates can reduce demand for bullion by increasing the cost of holding this non-yielding investment. Fed Chairman Warsh’s inaugural speech at this year’s annual Jackson Hole conference has gained in importance as traders and analysts seek guidance on the recent rise in bond yields, and to reassure themselves of his independence from Trump’s administration. The U.S. The Fed's preferred inflation indicator, the Personal Consumption?Expenditures Report, is due Wednesday. Iran has promised to respond geopolitically against the 'expanded U.S. sanctions, which Washington said would cut off Iran’s economic lifeline. Tehran expressed confidence in the ability of major trading partners to resist pressure. Silver spot gained 0.3% per ounce to $69.16, platinum gained 0.4% to 1,883.93, and palladium rose 0.2% to $1359.00.
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Asia shares drop on tech nerves, oil prices slip
Asia shares fell on?Tuesday, while oil prices continued to fall after the U.S.'s threats of an "economic D-Day," or sanctions against Iran, turned out to be a damp-squib. U.S. Treasury Yields are 'off their recent highs after a report that Treasury Department?might tap its cash account to fund increased debt buybacks. This could reduce the requirement for additional short-term bill sales. Investors are well aware of the high expectations that Nvidia will have to meet. Analysts expect quarterly revenues to nearly double, to $92 billion. Full-year earnings are expected to range between $103 billion and $105 billion. "These are high expectations that must be met," said Fabien Yips, a market analyst with IG. "Judging by Nvidia's past performance, it will not be surprising if the company meets the headline figures. But I think that the most important thing is to try and understand if there are any concerns about the circular deals driving its growth, or a question of whether the growth percentage in the next quarters is sustainable." MSCI's broadest Asia-Pacific index outside Japan fell 0.5%. Japan's Nikkei dropped 0.9%, and South Korea's Kospi plunged 2.7%. Alibaba's $10.2 billion sale of shares at a steeply discounted price to "fund" its AI ambitions and Samsung Electronics' disappointing shareholder-return program also weighed on the tech sentiment. Nasdaq Futures fell 0.08%, while S&P500 Futures were unchanged. EUROSTOXX?futures were 0.05% lower. SANCTIONS & BUYBACKS The Trump administration issued a warning on Monday to countries that they must cut off their business relations with Iran, or else face secondary sanctions. This was part of an "economic D-Day" which the Trump administration referred to as such. However, the Treasury Department did not impose any penalties. Brent crude futures fell by 0.1% on Tuesday to $92.08 per barrel. U.S. crude climbed 0.1% to $85.09 a barrel, both measures falling more than 2% over night. Joseph Capurso is a strategist with the Commonwealth Bank of Australia. He said: "We don't expect China, Iran's biggest trade partner, to give in to U.S. demands to stop commerce with Iran." The U.S. campaign against Iran threatens the trade truce that the U.S. has with China before the next leaders' meeting. The threat of being cut-off from the dollar-based system fuelled rumours about some countries and their banks needing to buy dollars as a precaution, thus lending support to greenback. The U.S. dollar extended gains against its Canadian counterpart and last stood at C$1.3844 after a rise of more than 0.5% overnight. The?U.S. dollar continued to gain against its Canadian counterpart, and stood last at C$1.3844 following a rise of over 0.5% overnight. Donald Trump, the U.S. president, threatened on Monday to increase U.S. tariffs starting January 1 on all Canadian cars, trucks, and automotive parts?to 50%. This escalated a trade war after negotiations broke down last week. The euro has slipped from its?three-month peak and bought $1.1668 last, while the pound sterling gained 0.06% at $1.3638. Investors will be watching the Federal Reserve Chair Kevin Warsh’s speech on Friday in Jackson Hole Wyoming. They are hoping to get some clarity on U.S. Interest Rates. Standard Chartered analysts stated that "fiscal uncertainty is unlikely to fade anytime soon... but there is scope for the Warsh led?Fed, to ease some monetary policies uncertainties by clarifying their reaction function - specifically how long they are willing to hold rates to see inflation returning to its 2% goal." All eyes will be on the Jackson Hole address by Chair Warsh for a sign, if not a forward-looking guidance. Spot gold rose 0.5% to $4,675.51 per ounce.
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)