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Hezbollah's chief in Lebanon says the group is concerned about confronting US threats against Iran
Naim Qassem said that the leader of Lebanon's Iran aligned Hezbollah, Naim, was worried about Washington's threats against Iran. He also expressed concern for any threat made by Washington towards Supreme Leader Ayatollah Ayatollah Khamenei. The tensions between Iran, the United States and Israel have increased following a crackdown against protests in Iran that resulted in thousands of deaths in recent weeks. President Donald Trump suggested this could lead to an American response. Tehran warned that any attack against?Khamenei could trigger a "holy conflict". "We are worried about what is happening and targeted by potential aggression. We are?determined?to defend ourselves. We will decide in due time how to proceed, whether we intervene or do not, but we are not neutral", Qassem stated in a television address. Hezbollah's leader claimed that mediators told the group that the U.S., Israel and others were considering attacking it in the event of an attack on Iran. He said a war against?Iran would ignite the entire area this time. Hezbollah suffered a severe blow in 2024, during the cross-border fighting between Israel and Hezbollah that Hezbollah claimed was to support Palestinians in Gaza. Israel and Lebanon agreed to a ceasefire in 2024 that was mediated by the United States, but both sides have accused each other of violating it. Reporting by Laila Basam and Maya?Gebeily Writing by Jaidaa?Taha Editing Peter Graff
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Shares jump as US backs $1.6 billion USA Rare Earth Funding
USA Rare Earth announced on Monday that Trump's administration will support a $1.6billion debt-and equity funding package for it to build a Texas magnet and mine facility to supply the defense and high tech sectors. Over the weekend, it was reported that the U.S. Department of Commerce had taken a 10% stake of USA Rare Earth in Oklahoma as part of an effort to?boost the production of critical materials and reduce reliance on the market leader China. USA Rare Earth shares grew 15% on Monday to $28.42. Rare earths are a grouping of 17 minor elements and magnets made of them can be found in many products including cell phones and fighter jets. They also appear in electric vehicles, medical kits, and even medical equipment. USA Rare Earth is developing a mine with Texas Mineral Resources in Sierra Blanca (Texas) that will be open by 2028. The company has a magnet production plant in Stillwater (Oklahoma) that is scheduled to open later this year. After taking stakes in MP Materials and Lithium Americas, Trilogy Metals is the latest investment to strengthen Washington's crucial minerals presence. DETAILS OF THE DEAL USA Rare Earth?said that it received a letter indicating $277 million of proposed federal funding, and $1.3 billion for a proposed senior secured loans under the CHIPS Act. Last year, it was reported that this was happening. Repurposed for funding minerals-related project. The deal excludes a price guarantee or a price floor that had been offered to MP Materials last year in a similar transaction. MP received a guaranteed price of $110 for each kilogram of light rare earths that it sells. Executives said that USA Rare Earth would need to purchase light rare earths from the market, and they assume it will pay $125 a kilogram. USA Rare Earth issuing 16.1 million shares of stock and approximately 17.6 million warrants. The company also raised $1.5 billion in private equity investment (PIPE), anchored by Inflection Point. Under this, it will issue 69,8 million shares for $21.50 per share. Inflection Point, a company with a specific purpose for acquisitions, helped USA Rare Earth to go public in the past year. Michael Blitzer, the chairman of each company, is a renowned businessman. Total investment of $3.1 billion, including the PIPE agreement and the government's proposed investment. Costs for the mine, magnet facilities?and other related projects will be around $4.1 billion. USA Rare Earth would still need an additional $600,000,000 to cover the cash and investments that were announced on Monday. The company has not yet lined up customers and is instead aiming to become a "safety-stock" that supplies niche products when needed. Executives believe this will result in a higher margin approach. On a conference call with investors, CEO Barbara Humpton said: "What is the cost of not having anything? That is what drives our early sales strategy." Last month, a senior Trump official stated that the administration is Planning more "historic" deals with the U.S. Mining sector . (Reporting from Ernest Scheyder, Shashwat Chandhu and Vallari Srivastava, in Bengaluru, and editing by Devika Syamnath and Shilpa Majumdar, and Alexander Smith).
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India and EU conclude talks on landmark trade agreement amid strained US-India relations
India and the European Union have completed negotiations on a long-coveted deal which will be announced Tuesday, said?the South Asian nation’s trade secretary on Monday. Both sides hail this agreement as?historic in light of strained U.S. relations. The agreement paves way for the free exchange of goods between India and the 27 European nations, who together account for a quarter the world's Gross Domestic Product and have a combined market of over 2 billion consumers. "It's a deal that is balanced and forward-looking for better integration of the EU into the economy." "The deal will boost trade and investment between both sides," said India's Trade Secretary Rajesh Agrawal. The trade between the two countries reached $136.5 billion during the fiscal year ending March 2025. FLURRY OF TRADE DEALS An Indian government official who is familiar with the matter stated that formal signing will take place only after legal vetting, which could last up to six months. The official said, "We anticipate the deal will be implemented in a year." This agreement comes just days after the EU concluded a crucial?pact, with Mercosur in South America, and follows agreements last year with Indonesia Mexico and Switzerland. In the same time period, New Delhi signed agreements with Britain and New Zealand, as well as Oman. The deals show that the world is trying to protect itself from US threats, such as President Donald Trump's attempt to seize Greenland or his tariffs on European nations. After almost two decades of intermittent negotiations, India will open its largest and most protected market to the EU, which is its biggest trading partner. Last year, a fast-track agreement was reached on negotiating. India and the EU have been working to finalize the agreement after Prime Minister Narendra modi and European Commission president Ursula von der Leyen agreed last year to speed up the negotiations. After a nine-year hiatus, two-way talks re-launched in the year 2022 gained momentum when Trump imposed tariffs on certain trading partners. This included a 50% tax on goods imported from India. A trade agreement between India and the United States collapsed last summer due to a breakdown of communication between their governments. The EU and India were locked in a last-minute give-and-take over steel and cars, which was one of the final points. India, a major producer of steel, has been pressing the EU to "reduce trade restrictions on its steel exports". As part of the agreement, it was reported on Sunday that India planned to reduce tariffs on imported cars from the EU from up to 110% to as low as 40%. New Delhi insists on protecting millions of subsistence-farmers.
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Gold reaches record high of $5,100 due to geopolitical concerns
On Monday, gold prices reached record highs above $5,100 as investors sought refuge amid political tensions around the world. Silver and platinum prices also reached new records. By 10:13 am, spot gold had risen 2.3% to $5,096.60 an ounce. After hitting a new record of $5,110.50 at 1513 GMT ET, gold prices were up 2.3%. U.S. Gold Futures for February Delivery gained 2.3%, to $5 094.30. Gold prices are supported by the elevated level of geopolitical uncertainty and economic instability. Central banks continue to be strong buyers, as they diversify their foreign exchange reserves and decrease reliance on the U.S. Dollar," said Ryan McIntyre. McIntyre said that investor inflows to physically-backed exchange traded funds have resumed. Holdings are up by approximately 20% over the past year. TRUMP'S 100% TARIFF THREATEN ON CANADA Donald Trump, the U.S. president, said that he would impose 100% tariffs on Canada if they follow through with a trade deal with China. Adrian Ash, BullionVault's head of research, said that "Trump and Trump" will be the main drivers for precious metals in 2018. This move is driven by a?wave of first-time investors. Private investors from Asia and Europe are leading the charge, as they rush to increase their personal gold and silver holdings. Investors also focused on the possibility of a coordinated currency-intervention by U.S. authorities and Japanese authorities. The criminal investigation by the Trump administration into Fed chairman Jerome Powell is also overshadowing this week's Federal Reserve Meeting, where the central bank will be expected to keep rates unchanged. Powell has been under pressure from Trump to lower interest rates. This would be a?supportive of non-yielding Gold, which has gained 18% this year so far after gaining 64 % in 2025. Gold reached major milestones last year. It was the first time that gold exceeded $3,000/oz or $4,000/oz. Some analysts say that gold may reach $6,000/oz by the end of the year. Analysts from Societe Generale predict gold will reach $6,000/oz before the end of the year, but they warn that this estimate may be conservative and there is still room for gains. Morgan Stanley, on the other hand, said that this rally could continue and highlighted a bull case target of $5700. Silver spot reached a new record high of $112.18 per ounce. The price of silver broke through the $100 barrier on Friday, as momentum-driven buying and retail investor?buying contributed to the tightness of the physical market for precious and industrial metal. "Momentum has been strong. Chinese silver prices are at a significant premium over London?prices. This indicates that further gains could be made in the near future. But such high prices will reduce industrial demand," said UBS Analyst Giovanni Staunovo. Spot palladium rose 6.2% to 2,133.75 dollars, its highest level since 2022.
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Canada PM Carney says that the review of USMCA will be thorough.
Mark Carney, Canadian prime minister, said that a review of the U.S. Mexico-Canada free trade deal, which is due to begin later this year, will be thorough. He described U.S. president Donald Trump as an aggressive negotiator. Carney said that some of Trump's recent criticisms should be seen in the context of USMCA negotiations. The three-nation agreement came into effect in July 2020. Trump, who has often mused about annexation of Canada, said last week that Canada " Because of the United States", and threatened on Saturday to impose 100% Tarif If Ottawa concludes a "trade agreement" with China, it will impose a tariff on all Canadian imports. Carney said that "we will soon enter a formal negotiation and review of the USMCA... we expect a robust'review. "The President is an able negotiator and I believe some of these comments and positions should be viewed within a broader context." Trump claimed earlier this month that the USMCA was not needed by the United States, calling it a "sham". You can also find out more about the other options here . (Reporting and editing by Chizu Nomiyama; David Ljunggren)
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Century will take 40% of the project to build the first US aluminium smelter for 46 years.
Century Aluminum will take a 40% share in a U.S. aluminum smelter planned by Emirates Global Aluminium. This is the first primary aluminium plant built in the United States in nearly 50 years. EGA,?which retains 60% of the joint-venture, announced plans to construct the smelter at Inola in?Oklahoma in May 2025. The financial terms of the transaction were not disclosed by either company. EGA said last year that it was expecting to invest $4 billion in the development of the project. The smelter will now be able to produce 750,000 tons of aluminum annually, up from the previous 600,000 tons, according to the companies. This would double the U.S. production of the metal. The companies stated that construction of the smelter would begin by the year's end, and production will begin by the turn of the decade. They added that the project created 1,000 permanent jobs on the site, as well as 4,000 construction jobs. SEMI-SOLID AIR TO BENEFIT AUTO, CONSTRUCTION, DEFENSE SECTORS U.S. president Donald Trump has tried to boost domestic production of aluminium, which is listed on the U.S. critical minerals list, by imposing tariffs on imports. The levy has been doubled to 50% since June of last year, and the Midwest Aluminum Premium - the premium that U.S. customers typically pay on top the London Metal Exchange price for actual metal - is now at a record high 99 cents per lb this month or $2,183 per tonne. Jesse Gary of Century, CEO in Chicago, said that the U.S. aerospace, automotive, construction, packaging, and national defense industries would benefit. About 85% of aluminum requirements of American industries are met by imports. In a joint statement, EGA and Century stated that the new smelter would increase the supply of aluminum in the United States and help to grow the American workforce. This will revitalize the aluminum expertise and knowledge of the U.S. Reporting by Anmol Chhoubey and Tom Daly in Bengaluru; Editing by Louise Heavens, Bernadette B. Baum and Bernadette Heavens
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Marshall Islands' nuclear past, present and future are explored at a London exhibition
After a trip to the Marshall Islands as part of a?expedition, a group of artists has shed light on climate change and nuclear testing. The "Komij mour?Ijin/Our Life Is Here" exhibition, at London's National Maritime Museum, features photos, videos, and sculptures that explore the dark history of the country and the threats it faces. Cape Farewell is a cultural project that combines art, science and climate change founded by artist David Buckland. In 2023, a group of artists, scientists, writers and filmmakers will sail to the Marshall Islands. The group visited several atolls including Bikini where the U.S. conducted?nuclear tests between 1946 and 1958. "Castle Bravo", the largest U.S. detonated bomb, was one of the most notable. "Our life is here '..." refers to these people. Buckland said, "It's about how they could build their lives amidst the horrible history and potential future." The atolls rise six feet above the sea level. It doesn't require much water to rise in the Pacific Ocean for them to become uninhabitable. This threat hangs over them." The exhibition opened in November and will run until June. It features works that explore the threat of rising flooding waters, as well as photographs taken by local and international artists of Marshall Islanders. According to a study by the World Bank, in 2021, 96% of the capital, Majuro, is expected to be at risk of flooding. The World Meteorological Organization announced earlier this month that last year was one of the three hottest on record. EU scientists confirmed the average temperatures are now above 1.5 degrees Celsius for the longest time since records began. Reporting by Marie-Louise Gumuchian, Editing by Toby Chopra
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What is the suspected toxin in the recalled baby formula, cereulide?
Nestle, Danone, and Lactalis are among the major dairy companies that have issued "precautionary" recalls for infant milk powder due to concerns about it being contaminated with the toxin Cerulide. What is cereulide? The?toxin? Cereulide, produced by certain strains of Bacillus cereus bacteria that is found in raw foods and the environment is called the?cereulide? Where is it found? When bacteria multiply in food, it usually occurs when food is left at room temperature for too long. The condition is often associated with rice that has been cooled after cooking, and so it's called "fried rice syndrome." It can also be found in starchy foods?such as pasta and potatoes - as well as in dairy products, seafood, and vegetables, if they have been handled or stored badly. What are the symptoms? Most people feel sick between 30 minutes and five hours after eating contaminated food. The main symptoms include nausea, vomiting and stomach cramps. The majority of people recover within 24 hours. Acute liver failure is a severe but rare case. Why does reheating not solve the issue? Normal cooking or reheating won't destroy cereulide once it is in the food. The toxin is heat-stable. This means it can survive temperatures which would normally kill bacteria. HOW DOES IT END up IN INFANT FORMULAS? Infant formula often contains oils that contain arachidonic acids (ARA) in order to mimic breast milk. Bacillus cereus can survive in the dry ingredients of infant formula. Heat treatment will not destroy the toxin because it is heat stable. It can therefore be included in the final formula. DOES IT AFFECT OTHER FEED? Bacillus Cereus can grow if?cooked food is left warm or cooled slowly for long periods of time. Risky situations include large pots of pasta or rice, dishes that are kept warm on the stove, buffet or oven, and foods that have been left out for hours.
McGeever: ROI-America Inc.'s productivity boom could be global.
The U.S. economic system is experiencing a productivity boom, and it may even be spreading globally.
Artificial intelligence (AI) is expected to accelerate these trends. However, there are some early signs that AI's benefits may be spreading.
The Purchasing Managers' Index (PMI), released on Friday, showed that British businesses have started the year off on a high note. Demand at home and abroad has been robust. This is the fastest growth in output since April 2024.
The pace of job loss has also increased since December. Since late 2024, the sub-indices of employment in Britain's PMI have been below that threshold which separates expansion from contraction.
The UK appears to be increasing the amount of goods produced per hour of work - the textbook definition for productivity growth.
The latest German PMI data also revealed a similar picture, albeit a little grainier. The output in January was at its highest level in three months. Employment fell at the fastest rate since November 2009 - excluding pandemic declines.
It's true that PMI data doesn't always match up with official statistics on growth and employment, but one shouldn't put too much weight in any single month's results.
The burgeoning trend should not be ignored. JP Morgan economist Allan Monks points out that the UK's ratio of output per employee - a crude proxy for productivity – is at its highest level since August 2013 - even after excluding distortions caused by pandemics.
Bruna Skarica, a Morgan Stanley analyst, agrees, writing that "a degree of skepticism is probably warranted around the PMIs, but the dynamics of resilient growth, and sluggish labor demand, merits more consideration."
LONG-TERM PATIENTISM
What's ?driving this? It's probably the AI and technology frenzy. Businesses are betting that AI can make them more innovative, productive and cost effective.
However, it remains to be determined whether the AI revolution can help the rest of?the world to narrow the gap in productivity with the United States.
This seems to be a better option in China. China's economy has already seen significant productivity increases in some sectors, such as autos, steel and high-value goods.
Goldman Sachs economists estimate that computing capacity in China will double over the next five year period.
It's another story in Europe. The continent is often viewed as a weak point in the global value-chain, with low productivity and growth potential. Economists attribute this to a lack of innovation in technology, excessive regulation, high public debt, and low private investments.
Goldman Sachs economists estimate AI will only add a "meaningful" 0.2 percentage points per year to European growth over the next few decades.
The?U.S. The U.S. is expecting to see a productivity boost of 0.4 pp per year.
PRODUCTIVITY A 'GET OUT OF JAIL FREE' CARD?
Federal Reserve Chair Jerome Powell signaled in December that productivity growth can help the central banks reduce inflation, while maintaining a policy of "dovishness" to support the economy and labor market.
Productivity gains that are faster tend to be deinflationary. Central banks could avoid making drastic interest rate changes if productivity increases accelerate and spread globally.
The flip side is that it could be more difficult to maintain full employment if AI advancements allow economies flourish with far fewer workers. Powell could have more to share on this topic when the Fed meets next week.
All of this, of course, should be taken as a pinch of salt. Even at the best times, productivity figures can be a bit shaky and difficult to measure accurately. As with the flawed data that was revealed in Britain's Office for National Statistics last year, productivity estimates are also affected by this.
Investors are betting that AI will lead to a productivity boom. This may be revealed by the earnings of U.S. megacap tech companies including Meta, Microsoft and Apple.
There are still many unknowns, but there is some evidence that the AI spending could lead to a global economic boom.
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(source: Reuters)