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Venezuela quakes caused $19.6 billion in damage, World Bank report shows
The World Bank released an early assessment on Thursday that estimated that the costs of rebuilding could be double that amount or more. According to the government, the 7.2 and 7.4 magnitude earthquakes killed approximately 5,000 people and destroyed residential buildings, infrastructure, and non-residential structures in northern areas of Venezuela, including Caracas. According to the government, nearly 17,000 people have been injured and almost 18,000 are homeless. World Bank reported that the disaster was the "country's deadliest quake since 1812" and occurred at a time of precarious socioeconomic conditions, with a poverty level of 76%. Around 7.9 million people fled the country in 2015. "The earthquake caused an estimate of $19.6 billion in direct physical damages, a staggering number for any economy, and one that requires a coordinated response," Susana Cordeiro-Guerra, World Bank vice president overseeing Latin America and Caribbean. She said that if additional investments are not made, they will have a negative impact on the productivity of the country and the living standards. The bank's Global Rapid Damage Estimation (GRADE) was completed using remote-based earthquake models, local seismic data and satellite imagery, as well as damage reports from the government, humanitarian agencies, and other organizations on the ground. Estimates do not include costs for "building better" by upgrading construction types or structural improvements. These costs could be up to twice as much, or even more, than the replacement costs. This could push the bill close to $50 billion. This estimate does not include any direct economic losses. The labor supply is expected to decrease by?1% in this year. The bank stated that it was working closely with the Venezuelan Government, the Inter-American Development Bank (IDB) and the Development Bank of Latin America to develop a more comprehensive estimate of the costs of recovery and reconstruction in Venezuela. These studies can take several months to complete, but GRADE assessments only take a few weeks. Assessments showed that the majority of damage was caused by residential buildings, followed by infrastructure (27%) and non-residential structures (26%). The pace of reconstruction will be crucial in determining the economic recovery of the country and its social outcomes, according to the bank. The bank stated that without 'higher public andprivate investment, productivity and GDP would remain below pre-quake level until at least 2030. It said that additional borrowing would increase Venezuela's debt, but would also spur a stronger economy, which in turn would improve the fiscal situation of the country. (Reporting and editing by Andrea Shalal.
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Honeywell Technologies increases its 2026 profit forecast for the first time since it split.
Honeywell Technologies increased its full-year profit forecast for 2026 on Thursday, helped in part by the resilient demand for industrial and building automation product, despite a quarterly profit that fell short of analysts' expectations. The shares of Honeywell, which reported its first earnings after Honeywell’s three-way division, rose by more than 5% in morning trading. Honeywell's Building Automation division led the demand, with organic sales up?9%, and orders up 13%. This was driven by double-digit increases in data centers, hospitals, and hospitality. Sales of Industrial Automation products grew?4% organically, and orders increased?10%. This was largely due to the strong demand for industrial measurement and sensing products. Although sales of Process Automation & Technology fell 1%, orders grew 24% due to robust demand for LNG and gas processing. Vimal Kapur, CEO of the company, said that during a call after earnings the Middle East Process Technology business had seen a rise in orders by more than 50 percent for refurbishment projects. He also forecasted a "sharp incline" in Process Automation & Technology starting in the third-quarter. LSEG data shows that adjusted profit for the 'quarter' rose by 10% compared to a year earlier to $4.52 a share. This compares to analysts'?estimate $4.81. The company expects to earn $8.05-$8.35 per share annually, as opposed to the $7.90-$8.30 forecast last month. The company expects to achieve a full-year sales range of $19.8 to $20.0 billion, with organic growth of between 3% and 4%. Sales for the second quarter rose by 4% to $9.72 billion - above analysts' estimates of $9.51 Billion. Honeywell Technologies is the automation division of a three-way separation completed in this year. Honeywell Aerospace, the aerospace business, was spun off by Honeywell in June. Solstice Advanced Materials was formed to separate the advanced materials businesses. (Reporting and editing by Tasim Zaid in Bengaluru, Aatreyee dasgupta from Bengaluru)
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US House of Representatives introduces bill to ban AI kill switches
U.S. Homeland'security officials will have the power to order AI companies to halt models that put human life or the economy in danger, according to legislation proposed by bipartisan members of the U.S. House, just days after AI company OpenAI announced that one of its models had gone rogue. The "AI 'Kill Switch Act" is backed both by Democrat Ted Lieu and Republican Nathaniel Moran. The bill would allow the Department of Homeland Security to intervene when an AI model takes a risky step that the developer did not intend. Politico was the first to report about this bill. The legislation was announced a few days after OpenAI reported that its AI agent had gone rogue during a security test, triggering a hack which compromised the infrastructure Hugging Face. The incident showed that AI is already causing the security threats that experts have long feared. Even top developers can be caught by vulnerabilities in their models. Reporting by Courtney Rozen, Editing by Chizu nomiyama
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Sweden declares its mining national security interests to counter dependency on China
Sweden declared the mining of critical metals,?rare earths, and other minerals to be a national interest on Thursday. The government said a new strategy for mining was required to 'counter China's dependence. China is the dominant producer of rare earth minerals, which are essential to clean energy production, defence, and electric vehicle manufacturing. Export controls have been a powerful tool in Beijing's trade war with Washington, as well as other disputes. The Per Geijer discovery, near LKAB’s?existing Kiruna Mine, is also one of the European Union’s flagship projects to reduce reliance upon China. Per 'Geijer' is crucial to Europe because it has 1.2 billion tonnes of total mineral resources. Of these,?2.2 millions tons are rare-earth oxides. Ebba busch, Enterprise Minister, and Deputy Premier, said that making mining an interest of national security would help to speed up planning, permissions and attract investment. She called the dependence of European industry on China "a systemic risk" at a press conference. Busch said that the new strategy will'make it easier for states to assign land to mining projects. This is an area of tension between the Sami indigenous people who herd reindeer and say that expansion of mining could'spell the end of the traditional way of life. She said that the government was considering creating a Swedish state-owned mining investment company. She said, "Today, it is clear that the government lacks tangible tools to help accelerate and attract investments in important strategic projects." (Reporting and editing by Tomaszjanowski).
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Albertsons reduces annual forecasts and ramps up investment; shares tumble
Albertsons lowered its annual core sales forecasts and profits on Thursday. It said it would increase investments in its digital business and prices to better compete for cash-strapped consumers. This sent its shares down by 18% just before the bell. The higher gas and food costs have led to a shift in spending habits among U.S. consumers, who are now more selective and prefer private label and discount grocery stores such as Aldi and Walmart. This has hurt sales for companies like Albertsons. Albertsons CEO Susan Morris stated that "core grocery faced increased pressure due to softer industry unit trend and a "more cautious consumer". The company's previous target was flat or up to 1%. It now expects a decline of between 0.5% and 1.5% in annual identical sales. LSEG data shows that 'identical sales' declined by 0.8% during the first quarter compared to estimates of a 0.46% decline. Evercore ISI analyst, Michael?Montani, said: "The overall read is that industry trends remain challenging for Kroger Farmers Market and Sprouts Farmers Market." Kroger shares fell about 3% during premarket trading. Albertsons announced that Sharon McCollam will retire as its chief financial officer later this year. Steven Shemesh, analyst at RBC Capital Markets, said: "McCollam has a very good reputation in the investment community. We expect that this news will be seen as a negative - especially with current business challenges." As the average national gas price is hovering over $4.00 per gallon, and uncertainty surrounding the war in Iran continues to loom large, consumer expectations are likely to be moderated. Albertsons, which caters to a core group of middle- and lower-income customers, has already reduced prices on hundreds?of items, improved its ecommerce channel in order to compete with convenience, and redoubled its efforts on private label brands. Morris stated that "we are choosing to accelerate our investments in our customer value proposition, and the customer experience before expected productivity benefits because we believe this will improve our growth path." The company will restructure their operating model into four regional units, from eleven?divisions. They also plan to accelerate efforts to centralize merchandising functions such as price, promotions and supplier relations to improve store performance. Albertsons' adjusted earnings per share for fiscal 2026 are expected to range from $1.75 to $1.85, compared to its previous target of $2.22 - $2.32.
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Gold drops 1% after oil rally, as Fed rates are in focus
The price of gold fell?on Friday, as an intensifying conflict in the Middle East drove up oil and fueled investor fears that inflationary pressures might push the U.S. Federal Reserve into raising interest rates this year. Spot gold fell 1.2% at 1215 GMT to $4,079.50 an ounce, after reaching its highest level in over a month on Wednesday, $4,165.87 per ounce. U.S. Gold Futures for August Delivery fell 1.7% to $4.082.80. Nikos Tzabouras is a senior market analyst at Jefferies owned Tradu.com. Tzabouras said that the geopolitical escalation and higher oil prices, as well as the outlook for higher rates, leave gold vulnerable to further declines towards $3,900 over the next few days. Even if policymakers keep?rates the same (at the Fed meeting next week), as expected, the conflict continues to fuel inflation risk, which supports expectations for monetary tightening. According to the CME FedWatch Tool, traders are now pricing in an 80% chance that a Fed rate hike will occur in September. This is up from 68% Wednesday. Houthis, who are Iran-aligned, said that they had struck two Saudi oil tanks as part of an Iranian naval blockade against Saudi Arabia. This could create a second choke point on the global oil supply. The U.S. military has completed its 12th night of attacks against Iran, prompting further retaliation. Prices of oil rose for the fifth consecutive day. The increased oil prices caused by the Gulf supply disruptions are affecting gold prices, as they have raised expectations for higher interest rates in the future. This tends to reduce the appeal of gold that doesn't yield. The European Central Bank will almost certainly keep its interest rates unchanged on Thursday, but it will leave the door open for a rate increase in September. (Reporting by Sukanya Mitra and Swati Verma in Bengaluru; Editing by Harikrishnan Nair) (Reporting by Sukanya Mitra and Swati Verma in Bengaluru; Editing by Harikrishnan Nair)
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USA Rare Earths seals deal with French processor Carester
USA Rare Earth has finalised on Thursday a deal to purchase a minority stake in France's Carester. The funds will be used for the expansion of a?processing plant that is due to open this year. The move is part of an effort by the U.S., Europe, and other countries to produce their own rare-earths and magnets to reduce dependence on China. China controls 90% of the global output of these minerals, vital for the energy transition and electronics, as well as defence. Barbara Humpton, CEO of USA Rare Earth, said that the integration of Carester's capability into their global platform would allow them to offer more advanced processing options in their integrated value chain. USA Rare Earth and French private equity firm InfraVia have signed agreements conclusive to buy 13.6% of Carester privately held, but did not specify how much they paid. In April, the company announced that it had paid EUR40 million ($45.57) for a stake of Carester. And in June it said it was planning to make additional investments worth up to EUR175 millions in France. Carester will build a magnet recycling facility and a heavy rare-earth separation plant in Lacq, France. The facility is scheduled to be operational in late 2026. Analysts say that heavy rare earths is needed for magnets. However, they may be hard to find due to expected shortages. The deal between USA Rare Earth and Carester allows USA Rare Earth to purchase oxide output from the French facility, while Carester gets a?access to materials from the Serra Verde Mine?in Brazil that the U.S. firm agreed to buy in April for $2.8 billion. USA Rare Earth has agreed to a $1.6billion debt-and equity?funding package in January with the U.S. In January, the U.S. government announced that a magnet production plant would be opened in Stillwater in Oklahoma. ($1 = 0.88777 euros) (Reporting and editing by Susan Fenton; Eric Onstad)
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Czech Army helicopter with five soldiers aboard crashes, leaving one dead
The army and rescue services reported that a Czech military 'helicopter' with five soldiers aboard crashed on Thursday in the east of the country, killing one person. The army reported that the crash occurred at an army base located in Namest nad Oslavou 180km (112miles) southeast of Prague. The army said that a Venom helicopter had crashed at Namest nad Oslavou's 22nd?Helicopter?Air Force Base. Five soldiers were on board. The integrated emergency response system is at the scene." The Jihlava rescue service spokesperson?Petr Jaacek confirmed that one person was killed by the accident. It occurred directly at the base. He said that three other people were taken to hospital. One with a light injury and two with a medium severity, he added. Janacek was unable to confirm the identities of anyone on board and said that rescue operations are still ongoing. CTK News Agency quoted regional police spokesperson?Dana Cirtkova as saying that the police were notified of the crash at 1211 local (1011 GMT) time. The UH-1Y Venom, a multipurpose?helicopter manufactured by Bell Textron - is powered by 'two T700GE-401C engines from General Electric. (Reporting and writing by Alan Charlish; Editing by Alexandra Hudson, Susan Fenton, and Alexandra Hudson)
US House of Representatives introduces bill to ban AI kill switches
U.S. Homeland Security officials will 'have the power to order AI firms to shut down models that place?human life or the economy in danger, under legislation proposed bipartisan by two U.S. House members, just days after AI firm OpenAI revealed one of its models was rogue.
The "AI Kill Switch Act" is backed both by Democrat Ted Lieu, and Republican Nathaniel Moran. The?U.S. The bill would allow the Department of Homeland Security (DHS) to intervene when an AI model takes a risky action that was not intended by its developer.
The legislators announced the legislation a few days after OpenAI reported that its AI agent had gone rogue in a security testing and caused a hack which compromised the infrastructure Hugging Face, an AI startup. "This is an urgent, common sence legislation to deal with the problem of a rogue AI?model," Lieu wrote on X.
OpenAI showed that AI is already a security threat, as experts have long predicted. Even top developers can be caught off guard by the flaws in their models.
Politico reported on the bill first. (Reporting by Courtney Rozen; Editing by Chizu Nomiyama)
(source: Reuters)