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US and World News

Exclusive-Citing attack threat, France bans Iranian opposition rally -document

by Reuters June 19, 2023
By Reuters

By John Irish and Juliette Jabkhiro

PARIS (Reuters) – France has banned an upcoming Iranian opposition rally over the risk of an attack, according to a letter sent to the organisers and seen by Reuters, after the release of an Iranian diplomat convicted of masterminding a plot to bomb the group in 2018.

The ban comes as Western powers seek to defuse tensions with Iran and a few weeks after Tehran released several Europeans from prison, including two French nationals. French President Emmanuel Macron held a 90-minute call with Iranian President Ebrahim Raisi on June 10.

The Paris-based National Council of Resistance of Iran (NCRI), political arm of the People’s Mujahideen Organisation of Iran (PMOI), has held frequent rallies in the French capital over the years, often attended by high profile former U.S., European and Arab officials critical of the Islamic Republic.

In February, the NCRI attracted several thousand people to an event in central Paris, and plans its annual rally on July 1.

However, given a recent spate of mass anti-government protests in Iran over the death of a 22-year-old woman while in morality police custody, a “tense context” had developed posing “very significant security risks” to NCRI gatherings, said the document, a letter from Paris police chief Laurent Nunez.

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Therefore, “this meeting, organised every year since 2008, cannot be held…” read the letter, sent to the NCRI rally’s organising committee.

In response to an inquiry, Paris police issued a statement to Reuters confirming that they had informed the committee of the decision to ban the rally as it could “generate disturbances to public order due to the geopolitical context”.

“Moreover, given the terrorist risk cannot be neglected, the holding of such an event would make its security but also the security of sensitive guests extremely complex,” said the statement.

A senior NCRI official condemned the decision when asked about it by Reuters, before the police confirmation.

“If French authorities take such a stance, it will represent a brazen disregard for democratic principles, caving in to the ruling religious tyranny’s blackmail and hostage-taking,” Shahin Gobadi, a member of the NCRI’s Foreign Affairs Committee, said.

FOREIGN SUPPORT FOR IRAN UNREST

Mahsa Amini’s death in custody sparked months of nationwide protests, prompting Tehran to accuse the United States, its Western allies and Israel of exploiting the unrest to try to destabilise the Islamic Republic.

Thousands of supportive rallies have been held around the world since her death September, although the nationwide unrest has subsided after Iranian security police clamped down on it.

To dampen rising tensions, the United States has been holding talks with Iran to sketch out steps that could limit the disputed Iranian nuclear programme, release some detained U.S. citizens and unfreeze some Iranian assets abroad, according to Iranian and Western officials.

ABORTIVE PLOT

Nunez’s letter put the July 1 NCRI rally in the context of the abortive plot led by Vienna-based Iranian diplomat Assadolah Assadi in October 2018 and three others.

Assadi, who French officials said was running an Iranian state intelligence network and was acting on orders from Tehran, was sentenced in Belgium to a 20-year prison term in 2021. He was exchanged in May for four Europeans held in Iran.

“This attempted attack, which underlines the operational capacities for attacking the PMOI, falls into a series of violent and lethal operations in France and Europe, in the form of assassinations and kidnappings of Iranian opposition figures,” the letter said, without providing details.

“Partner countries have in this regard recently mentioned many planned violent attacks, potentially targeting Iranian opposition figures.”

Nunez also said in his letter to the NCRI that given the group’s rally would attract several hundred important foreign dignitaries and PMOI members coming from overseas, “securing the event would be particularly complicated”.

There have been three attacks on an NCRI building in a Paris suburb since the end of May, the letter said, and these were under investigation. Two sources close to the investigation said gunshots, petrol bombs and other incendiary devices had been used to target the building. It was unclear who was responsible.

The letter said there was also an elevated risk of conflict between the NCRI and rival Iranian opposition groups at the rally, although there had been no incidents at past rallies.

Tehran has long called for a crackdown on NCRI activities in Paris, Washington and the Saudi capital Riyadh. The group, whose sources of funding and support are unclear, is regularly lambasted by Iranian state media.

(Reporting by John Irish; editing by Mark Heinrich)

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Renault names Luca de Meo as new head of Ampere electric vehicle unit

by Reuters June 19, 2023
By Reuters

PARIS (Reuters) – French carmaker Renault appointed on Monday its group chief executive Luca de Meo as the future chairman and CEO of Ampere, the electric vehicle division which Renault is aiming to list on the stock market.

Renault added that its board of directors had also set up an ad-hoc committee, chaired by Jean-Dominique Senard, to oversee the envisaged initial public offering (IPO) of Ampere.

(Reporting by Sudip Kar-Gupta; Editing by Alison Williams)

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Intel spends $33 billion in Germany in landmark expansion

by Reuters June 19, 2023
By Reuters

By Friederike Heine, Supantha Mukherjee and Andreas Rinke

BERLIN/STOCKHOLM (Reuters) -Intel will spend more than 30 billion euros ($33 billion) to develop two chip-making plants in Magdeburg as part of its expansion push in Europe, a deal Chancellor Olaf Scholz hailed on Monday as Germany’s biggest ever foreign investment.

Berlin has agreed subsidies worth nearly 10 billion euros with the U.S. chipmaker, a person familiar with the matter said, more than the 6.8 billion euros it had initially offered Intel to build two leading-edge facilities in the eastern city.

Intel CEO Pat Gelsinger said he was grateful to the government and the state of Saxony-Anhalt, where Magdeburg is located, for “fulfilling the vision of a vibrant, sustainable, leading-edge semiconductor industry in Germany and the EU”.

Under Gelsinger, Intel has been investing billions in building factories across three continents to restore its dominance in chipmaking and better compete with rivals AMD, Nvidia and Samsung.

“Today’s agreement is an important step for Germany as a high-tech production location – and for our resilience,” Scholz said after Monday’s signing.

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“With this investment, we are catching up technologically with the world’s best and expanding our own capacities for the ecosystem development and production of microchips.”

The German deal marks Intel’s third big investment in four days. It unveiled plans on Friday for a $4.6 billion chip plant in Poland, another European Union member, while Israel said on Sunday that Intel would spend $25 billion on a factory there.

Globally, semiconductor manufacturing is expected to become a trillion-dollar industry by 2030, expanding from $600 billion in 2021, according to McKinsey.

Both the United States and Europe are trying to lure big industrial players via a mix of state subsidies and favourable legislation, with Germany concerned about losing appeal as a place to invest.

The government in Berlin is investing billions of euros in subsidies to lure tech companies, amid growing alarm over supply chain fragility and dependence on South Korea and Taiwan for chips.

ATTRACTIVE LOCATION

“The size of Intel’s reaffirmed and increased commitment to its expansion in Magdeburg speaks louder than words about Germany’s appeal as a high-tech business location,” said Robert Hermann, CEO of government agency Germany Trade & Invest.

Berlin is also talking with Taiwan’s TSMC and Sweden’s electric vehicle battery maker Northvolt about setting up production in Germany, having already convinced Tesla to build its first European gigafactory there.

Frankfurt-listed Intel shares were 0.3% higher at 1534 GMT.

Monday’s agreement includes what Intel said was increased government support, including incentives, reflecting the expanded scope of the project since it was first announced in March 2022.

Initially, Intel wanted to invest 17 billion euros in the Magdeburg plant, an amount that has nearly doubled to more than 30 billion.

“This shows: Germany is a highly attractive location. We play at the forefront of global competition and secure sustainable and qualified jobs and value creation,” Economy Minister Robert Habeck said.

The first facility in Magdeburg is expected to enter operation 4-5 years after the European Commission’s approval of the subsidy package, Intel said.

About 7,000 construction jobs will be created in the first expansion, plus around 3,000 high-tech jobs at Intel and tens of thousands of jobs across industry, the U.S. chipmaker said.

Intel announced plans last year to build a big chip complex in Germany and facilities in Ireland and France as it seeks to benefit from easier European Commission funding rules and subsidies. The EU is trying to reduce its dependence on U.S. and Asian chips supply.

Gelsinger had told Reuters on Friday that the gap between what Germany had offered in subsidies and what Intel needed was too big but said he expected to reach an agreement, adding that his request was to be cost competitive.

“We lost this industry to Asia, we have to be competitive if we’re going to bring it back,” he said.

($1 = 0.9150 euros)

(Additional reporting by Maria Martinez and Riham Alkousaa; Writing by Christoph Steitz; Editing by Rachel More, Jason Neely, Sharon Singleton and Catherine Evans)

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Canada investing C$350 million to boost drive for sustainable aerospace industry

by Reuters June 19, 2023
By Reuters

OTTAWA (Reuters) – Canada is investing C$350 million ($265 million) to help fund efforts to make the aerospace industry more environmentally sustainable, Innovation Minister Francois-Philippe Champagne said on Monday.

The focus will be on hybrid and alternative propulsion, aircraft systems, the transition to alternative fuels, and aircraft support infrastructure, he said in a statement.

“(This) … will help drive and accelerate the green industrial transformation of Canada’s aerospace industry, generating high-value jobs while strengthening supply chains and supporting the transition to a net-zero economy,” he said.

Earlier this month, global airlines called for broad co-operation to reach “very tough” emission targets. Aviation, which produces around 2% of the world’s emissions, is considered one of the hardest sectors to decarbonise.

The C$350 million includes a C$49 million aerospace innovation investment announced in 2019.

Airbus said in 2021 it was working on hybrid-electric propulsion among the options for reducing jetliner emissions. It has pledged to introduce the first hydrogen-powered commercial plane in 2035.

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In 2019, Vancouver-based seaplane operator Harbour Air carried out the world’s first fully electric, commercial flight.

($1 = 1.3202 Canadian dollars)

(Reporting by David Ljunggren; editing by Jonathan Oatis)

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Costs at American Lithium’s Peru project up to $700 million, CEO says

by Reuters June 19, 2023
By Reuters

By Kylie Madry

(Reuters) – Costs of the first phase of construction at American Lithium’s Falchani lithium mine in Peru likely have risen some 20% from an original estimate to $700 million, the chief executive of the firm said in an interview.    “If you think about the post-COVID world and inflationary pressures, that bill (of $580 million) is probably more like $700 million today,” CEO Simon Clarke said.    Peru, the world’s second-largest copper producer, is vying for a piece of the pie in the booming lithium market.     Nearby Chile, Argentina and Bolivia form a so-called “lithium triangle,” with massive deposits, but the Canadian-owned Falchani project is currently the only one under way in Peru, where deposits are estimated to be much smaller.    The Peruvian government has made it clear “they want to attract other investment to drive the mining sector forward,” Clarke said, mentioning drill permit approvals coming in since a government shake-up last year.    If all goes according to plan, construction could begin at Falchani by late 2024 or late 2025, Clarke said, to begin production in late 2026 or early 2027.     Before that, an environmental impact assessment, which could take another three to six months, and an updated economic assessment need to wrap up.

A new economic assessment will also be carried out to include byproducts potassium, cesium and rubidium, which were not analyzed in the original study, Clarke said.

Clarke said the firm was in talks for investment in the project, adding that it was doing drilling tests in a new area near Falchani after receiving approvals last month.    “We’re certainly very excited by what we saw on the surface,” Clarke said. “We should start to get results from that over the next couple of months.”

(Reporting by Kylie Madry; Additional reporting by Marco Aquino; Editing by Sandra Maler)

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Breaking NewsD.C. NewsPolice Blotter

Father’s Day Shooting Leaves Six-Year-Old Boy and Father Injured in D.C.

by Kristen Harrison-Oneal June 19, 2023
By Kristen Harrison-Oneal

WASHINGTON, D.C. – Father’s Day took a tragic turn in Southeast, D.C., when a six-year-old boy and his father were the victims of a shooting Sunday night.

Officers from the Washington, D.C. Metro Police Department arrived at the 2200 Block of Minnesota Avenue shortly before 10 p.m. Sunday night, close to the intersection of 22nd Street. Police discovered the injured pair inside a vehicle.

The young boy was rushed to the hospital, where he currently remains in critical but stable condition, while his father was also hospitalized, although his condition remains undisclosed. The investigation is ongoing, with no suspects or motives identified thus far.

If you have any information about this incident, please take no action but call the police at (202) 727-9099 or text your tip to the Department’s TEXT TIP LINE at 50411.

June 19, 2023 0 comments
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US and World News

Denmark plans to aid Ukraine military by over $3 billion

by Reuters June 19, 2023
By Reuters

HELSINKI (Reuters) – Denmark’s military support to Ukraine will be increased to 21.9 billion Danish crowns ($3.21 billion) during 2023-2028, the Danish defence ministry said in a statement on Monday.

The aid will be delivered through a Ukraine fund Denmark set up in March as part of the small Nordic nation’s ambition “to be among the most significant supporters of Ukraine”.

The fund was set at 7 billion Danish crowns, to be spent on humanitarian, business recovery and military needs. It is not immediately clear how much of that has been paid out.

“I am proud that Denmark will continue to be a significant contributor. Ukraine remains deeply dependent on military aid,” acting Defence Minister Troels Lund Poulsen said in a statement.

($1 = 6.8219 Danish crowns)

(Reporting by Essi Lehto; Editing by Alison Williams)

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Sport-Judge who sentenced Nassar calls for national inquiry into Canadian sport

by Reuters June 19, 2023
By Reuters

(Reuters) – Rosemarie Aquilina, the American judge who sentenced disgraced USA Gymnastics doctor Larry Nassar, has called for an independent inquiry into sports across Canada amid widespread allegations of harassment, abuse and bullying.

Aquilina, who testified on Monday at the Standing Committee on Canadian Heritage, said all athletes deserved immediate and meaningful action and accountability and that could happen only with an independent judicial investigation.

“When will Canada hear its children and take this meaningful action to protect them from the pain, suffering and trauma they suffer in sport?” said Aquilina. “Canada should be celebrating and honoring the excellence of Canadian athletes and their well-being, not profiting from their abuse.

“Athletes have the absolute right to expect safe, positive, healthy training without physical and emotional abuse and the current culture allows aggressive coaches who overstep, blur lines and abuse children.”

Canada has been rocked by scandals across many sports as several athletes have testified at parliamentary committees over the past year, sharing stories about the physical and mental abuse they endured at the hands of coaches and other officials.

Sport Minister Pascale St-Onge announced a series of reforms in May aimed at holding Canada’s national sport organizations accountable, but the many who have been calling for a national inquiry for months said the measures did not go far enough.

Aquilina also said that if Canada wanted to protect the integrity of sport it needed to protect both the sport and the players.

“Remember, all athletes begin as children and what’s happening now in sport is that they are suffering a lifetime of abuse that has become normalised in sports,” said Aquilina.

“And allowing abuse in sports is allowing and condoning child abuse. It is the murdering of the soul of the athlete who pays the price for the rest of their lives while everyone else profits.”

In January 2018, Aquilina famously sent Nassar to jail for up to 175 years for sexually abusing young female gymnasts who were entrusted to his care.

Nassar was sentenced followed an extraordinary week-long hearing in which 160 of his victims, most of whom were minors at the time they were abused, unflinchingly told their stories.

The outspoken Aquilina gained national attention for her handling of Nassar’s sentencing hearing and has since used her platform to help to give survivors a voice and restore their personal power.

(Reporting by Frank Pingue in Toronto; editing by Clare Fallon)

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WFP hopes to resume some Ethiopia food aid distribution by July

by Reuters June 19, 2023
By Reuters

By Aaron Ross

NAIROBI (Reuters) – The U.N. World Food Programme hopes to resume some food aid distribution in Ethiopia as soon as next month once it has received greater control over how beneficiaries are selected, a senior WFP official said on Monday.

It paused food aid to the northern Tigray region in May and then to all of Ethiopia this month in response to widespread theft of donations. In both cases, its announcements came just after the United States said it was doing the same.

More than 20 million people need humanitarian assistance in Ethiopia, largely due to the Horn of Africa’s worst drought in decades and a two-year civil war in Tigray.

The WFP has been providing emergency food assistance to nearly 6 million of them.

Valerie Guarnieri, WFP assistant executive director for programme and policy development, said the agency wanted to reduce the authority of local and regional government officials to decide who qualified for food aid.

“We would want to have a much more direct involvement ourselves as WFP and our partner non-governmental organisations in the process of selecting beneficiaries,” Guarnieri told Reuters.

She said WFP investigators had identified weaknesses in the agency’s monitoring systems, particularly in Tigray, where donors surged aid after a November peace deal ended the war.

Assistance in Tigray and to refugee camps could resume by the second half of July after the WFP received positive feedback from the relevant authorities, Guarnieri said, adding she hoped that would spur a swift resumption of distributions more widely.

Other WFP programmes, including nutrition assistance to children, pregnant and breastfeeding women have not been affected by the aid pause.

Neither WFP nor the U.S. Agency for International Development (USAID) have said who benefited from the thefts, but an internal briefing by a group of foreign donors said USAID believed some food has gone to Ethiopian military units.

Guarnieri said she had no information about who was behind the diversions and was awaiting the results of investigations.

Ethiopia’s government has said it is investigating the allegations but also criticised the aid cuts, saying they would deepen a humanitarian crisis. Ethiopia’s army has denied receiving stolen food.

Guarnieri defended WFP’s decision as necessary to ensure donations are reaching those who need them.

“I think the kind of reforms that are needed probably required a rather drastic step to undertake the changes,” she said.

(Reporting by Aaron Ross; Editing by Alison Williams)

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14-Year-Old Shot Multiple Times Dead In D.C.

by Kristen Harrison-Oneal June 19, 2023
By Kristen Harrison-Oneal

WASHINGTON, D.C. – A 14-year-old boy was shot multiple times early Saturday morning in Southeast D.C. He did not survive.

Just before 1 am Saturday morning, officers arrived at the 2600 Block of Sheridan Avenue to investigate a report of a shooting. At the location, police found the victim suffering from multiple gunshot wounds. He was pronounced dead at the scene.

14-year-old Stephon Shreeves was identified as the victim.

If you have any information about this shooting, please contact the police at 202-727-9099 or TEXT TIP LINE by sending a text message to 50411. This case remains under investigation.

June 19, 2023 0 comments
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US opens safety probe into Hyundai Ioniq 5 EVs over power loss reports

by Reuters June 19, 2023
By Reuters

By David Shepardson

WASHINGTON (Reuters) -U.S. auto safety regulators are investigating nearly 40,000 Hyundai Ioniq 5 electric vehicles over reports of power loss while driving tied to a battery charging issue.

The National Highway Traffic Safety Administration’s preliminary investigation covers 2022 model-year vehicles after it received 30 consumer complaints alleging a loss of acceleration. The agency said many consumers reported a loud popping noise followed by a warning displayed on their dashboard, and immediately experienced a loss of power that ranged from a reduction in acceleration to a complete loss.

NHTSA said it learned from Hyundai the failure is related to the Integrated Charging Control Unit (ICCU) responsible for powering both the main electric vehicle and low-voltage 12-volt batteries.

A preliminary review indicates too much current within the unit can damage transistors, resulting in the inability to recharge the 12V battery, NHTSA said.

Hyundai said Monday it is launching a service campaign in July that will update impacted vehicles’ software and replace the ICCU if necessary. “We value our cooperative relationship with NHTSA and have engaged in frequent, open and transparent dialogue with the agency on this topic,” the Korean automaker said, adding it is fully cooperating.

NHTSA conducted several owner interviews confirming a range of loss of power and varying time intervals between the warning message and power loss but did not report any crashes or injuries tied to the issue.

One complaint reported a driver traveling 75 miles (120 km) per hour on a highway using advanced highway assist and “the car became completely unresponsive.” The driver added that there was a semi-trailer truck behind him “and one to my right in the slow lane. The car stopped accelerating, and I was unable to resume driving. I was forced to coast to a stop on the side of the highway.”

According to another complaint in February, a driver on a highway in Santa Maria, California, heard a loud pop coming from my car and “within a few seconds my car lost speed rapidly, from 55 mph to 25 then a second later 22 mph.”

(Reporting by David Shepardson; editing by Jonathan Oatis and Chizu Nomiyama)

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Breaking NewsPennsylvania NewsPhiladelphia News

Police Searching For Missing 68-Year-Old Man in Philadelphia

by Erica Schmidt June 19, 2023
By Erica Schmidt

PHILADELPHIA, PA- The Philadelphia Police Department is seeking the assistance of the public in locating Leroy Sorrels, a 68-year-old man who has been reported missing. Sorrels was last seen on June 11, 2023, at 10:00 PM in the vicinity of the 5700 block of Filbert Street.

Standing 6 feet tall and weighing around 200 pounds, Sorrels has black and gray hair, brown eyes, and glasses. At the time of his disappearance, he was dressed in a black T-shirt and blue jeans. It is possible that he is carrying a blue bag and a gray bag. Additionally, it is believed that he may be traveling on the El Train between 60th and 60th Streets.

The Philadelphia Police Department urges anyone with information regarding Leroy Sorrels’ whereabouts to immediately contact the Southwest Detective Division at 215-686-3183 or dial 911.

June 19, 2023 0 comments
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Breaking NewsPennsylvania NewsPhiladelphia News

86-Year-Old Man Missing From Philadelphia

by Erica Schmidt June 19, 2023
By Erica Schmidt

PHILADELPHIA, PA- The Philadelphia Police Department is reaching out to the public for assistance in locating Nham Bui, an 86-year-old man who has been reported missing and is considered endangered. Bui was last seen on Friday, June 16, 2023, at midnight in the area of the 1200 block of North 15th Street.

Described as 5 feet 8 inches tall and weighing approximately 120 pounds, Bui has an olive complexion, thin build, gray hair, and brown eyes. At the time of his disappearance, he was wearing colored pajamas.

Authorities are urging anyone with any information regarding his whereabouts to contact the Central Detective Division at 215-686-3093 or at 911.

June 19, 2023 0 comments
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US and World News

Fresh Supreme Court bill will be launched on Wednesday, Israel’s Knesset says

by Reuters June 19, 2023
By Reuters

By Maayan Lubell

JERUSALEM (Reuters) -Israel’s parliament will on Wednesday start work on a fresh bill that limits Supreme Court power to rule against the government, the Knesset said, risking renewed uproar over Prime Minister Benjamin Netanyahu’s proposed judicial changes.

Netanyahu on Sunday said he would advance his government’s judicial overhaul after compromise talks with the opposition over the plan, which had plunged Israel into one of its worst political crises in years, were suspended by his rivals.

Netanyahu met with the heads of his nationalist-religious coalition government on Monday to discuss what they see as justice reforms that will balance out branches of government and end perceived court overreach.

After the meeting, Finance Minister Bezalel Smotrich said that the legislation will better define “Supreme Court authority to intervene in government and ministers’ decisions” by limiting ‘reasonability’ as a standard of judicial review.

Discussions on the bill will begin on Wednesday, the Knesset’s Constitution, Law and Justice Committee said.

Smotrich in his televised remarks echoed Netanyahu, saying the coalition will advance changes to the judiciary slowly and responsibly. Their government’s January-March judicial drive had prompted alarm abroad and spooked investors.

Unveiled soon after Netanyahu’s return to office, the sweeping judicial changes sought to curb Supreme Court powers and give the government more control over appointments to the bench in what opponents called a fatal blow to democracy.

The overhaul plan set off unprecedented protests, with critics of Netanyahu – who is on trial on corruption charges he denies – accusing him of trying to curb judicial independence.

With Israel’s economy bruised and Western allies voicing concerns for its democracy, Netanyahu froze the drive in March for compromise talks, which opposition leaders suspended last week pending the formation of a key panel for selecting judges.

Nonetheless, coalition lawmakers have indicated that the new bill would be a far softer version of previous government proposals that had sought to limit Supreme Court power to rule against the executive almost completely.

But any unilateral moves by the government to change the justice system would wreak havoc on Israel, opposition leaders said on Monday.

“Our democracy is in danger,” said Opposition Head Yair Lapid.

(Reporting by Maayan Lubell; Editing by Susan Fenton and Jonathan Oatis)

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RTX awarded $264 million US Navy modification contract to produce AIM-9X missiles

by Reuters June 19, 2023
By Reuters

(Reuters) – Raytheon Technologies on Monday said it was awarded a $264 million modification contract from the United States Navy to produce and deliver 571 short-range AIM-9X Sidewinder missiles.

The company said this was a modification to a production Lot 23 contract, that was originally awarded to the defense company in Dec. 2022.

Raytheon added it would also produce associated parts for the U.S. Navy, U.S. Air Force, and its foreign military sales customers, as well as provide captive air training systems, containers, related kits and support equipments for the missiles.

The U.S. aerospace giant said that majority of work is expected to be completed in August 2026.

Separately, RTX expects to take a $500 million hit to free cash flow due to a supply chain problem with the GTF engine made by its Pratt & Whitney subsidiary, the company said during an investor day on Monday.

(Reporting by Granth Vanaik in Bengaluru)

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European shares slide, Germany’s DAX retreats from record high

by Reuters June 19, 2023
By Reuters

By Shreyashi Sanyal and Bansari Mayur Kamdar

(Reuters) -European shares fell on Monday, as investors awaited further stimulus measures from China to revive demand and eyed testimony from Federal Reserve Chair Jerome Powell this week for more cues on the U.S. central bank’s rate outlook.

The pan-European STOXX 600 index shed 1.0%, while Germany’s DAX index also dropped 1.0% after closing at a record high in the previous session.

Trading was thin on Monday with U.S. markets shut for a public holiday.

Shares of lab supplies maker Sartorius plunged 15.7% after the company cut its 2023 revenue and margin forecasts on Friday.

Medical gear maker Getinge slumped 16.2% after saying it faced additional quality and supply chain problems that would hit the Swedish group’s second-quarter profit and also impact the business for the rest of 2023.

The focus remains on geopolitics after China and the United States agreed to stabilize their intense rivalry so it doesn’t veer into conflict but failed to produce any major breakthrough, while China’s cabinet met on Friday to discuss measures to spur growth in the economy, state media reported.

China is also widely expected to cut key lending benchmarks on Tuesday in the first such easing in 10 months, a Reuters survey showed, as authorities seek to shore up a slowing recovery in the world’s second-largest economy.

“There has been a lack of a more euphoric reaction in China-related markets to the latest easing measures,” strategists at Jefferies wrote in a client note.

“Given such market action and the relatively disappointing data, the question is whether more aggressive stimulus is coming.”

China-exposed luxury giant LVMH, which is Europe’s most valuable firm, fell 1.8%, while the basic resources index dropped 2.2% amid demand worries from the top metals consumer.

MTU Aero Engines climbed 4.2% after raising its earnings forecast for 2023, while the STOXX Europe aerospace & defence index added 0.4%.

Airbus shares edged up on announcing the biggest plane deal in history, with an order for 500 narrow-body jets from Indian budget carrier IndiGo.

The STOXX 600 is coming off its best performance in over two months, as investors await testimony from Fed Chair Powell on Wednesday and Thursday for further cues on the monetary policy outlook for the world’s largest economy.

Meanwhile, rate hikes are also expected in Britain, Norway and Switzerland this week.

(Reporting by Shreyashi Sanyal and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D’Souza, Eileen Soreng and Susan Fenton)

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Ukraine retakes village but fighting in east ‘difficult’ – Kyiv

by Reuters June 19, 2023
By Reuters

KYIV (Reuters) -Ukraine said on Monday it had recaptured an eighth village during its counteroffensive in the Russian-occupied south but that the Kremlin’s forces were trying to regain the initiative in the east by stepping up attacks.

Ukrainian soldiers held up yellow and blue national flags in a video circulated on social media in which they said they were inside Piatykhatky, a settlement on the way to one of the most heavily fortified Russian positions in the south.

“Today, June 18, the forces of 128 assault brigade chased out the Russians from the village of Piatykhatky. The Russians ran away leaving equipment and ammunition. Glory to Ukraine!” an unidentified soldier said.

Reuters confirmed the video had been filmed in Piatykhatky but was unable to verify the date.

A Russian-installed official in the partially occupied Zaporizhzhia region had said on Sunday that Kyiv’s troops had retaken Piatykhatky, but that they had then been pushed out and that the settlement was now located in a “grey” area of control.

Deputy Defence Minister Hanna Maliar said Ukrainian forces had not only retaken Piatykhatky but had advanced by up to seven km (4.3 miles) into Russian lines in two weeks.

“In the course of two weeks of offensive operations in the Berdiansk and Melitopol directions, eight settlements were liberated,” Maliar wrote on Telegram.

But in a later statement, she said the situation on the eastern front was “difficult”.

“The enemy has pulled up its forces and is actively attacking in the Lyman and Kupiansk directions, trying to seize the initiative from us. High activity of enemy shelling is recorded. Hot fighting continues.”

Maliar said that Russia had concentrated a significant number of units in the east, including air assault troops, but that Ukrainian forces were preventing their advance.

Reuters could not independently verify the battlefield claims.

(Reporting by Pavel Polityuk, Lidia Kelly and Anna Pruchnicka; Writing by Tom Balmforth; Editing by Timothy Heritage and Hugh Lawson)

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Factbox-Who are the forces involved in Ukraine’s counteroffensive?

by Reuters June 19, 2023
By Reuters

By Tom Balmforth

KYIV (Reuters) – Ukraine has prepared an array of new military units for its long-anticipated counteroffensive this summer, while its established brigades weathered Russia’s winter offensive in the east.

The first phase of the counteroffensive has begun. Here’s what we know about the new Ukrainian units.

TWELVE BRIGADES

NATO allies and partners helped Ukraine equip and train nine new armoured brigades for the counteroffensive, the military alliance’s Secretary General Jens Stoltenberg confirmed in April.

A U.S. intelligence document made public in the Discord leaks said Ukraine had also prepared three more brigades itself.

The document identified the nine brigades as the 47th, 33rd, 21st, 32nd, 37th, 118th, 117th and 82nd brigades. The name of the ninth one could not be made out.

A brigade typically has at least 3,500-4,000 troops, but exact numbers are not known.

By April, Ukrainian units had received more than 1,550 armoured vehicles, 230 tanks, other equipment and vast amounts of ammunition, Stoltenberg said. More supplies have followed since.

In mid-May, one Russian military blog noted a buildup of Ukrainian forces and equipment in southeastern Zaporizhzhia region and the neighbouring Dnipropetrovsk region, estimating Kyiv’s troop numbers at 50,000-55,000.

ASSAULT UNITS

Ukraine has separately created eight new assault brigades totalling 40,000 soldiers, according to Interior Minister Ihor Klymenko. The units drew from an aggressive recruitment campaign that began at the start of February.

The units have catchy or well-known Ukrainian names, including Azov, Kara Dag (a mountain in Crimea), Border of Steel, Hurricane, Spartan, Chervona Kalyna, Frontier and Rage.

Members of one of the units told Reuters in April that they wanted to be involved in frontline fighting and were highly motivated and wanted to “take revenge” on Russia.

ARE ANY OF THESE UNITS FIGHTING YET?

The 47th, 33rd and 21st mechanised brigades have been spotted in combat in the southeast in the last two weeks, as the main phase of the counteroffensive has got under way, some Western military analysts say.

The bulk of Ukraine’s forces are yet to be committed.

Analysts poring over battlefield images released by Russia believe the 47th lost some equipment in the fighting, including Bradley infantry vehicles, though they say that the images may not tell the whole story.

Valerii Markus, a prominent Ukrainian field commander and one of the brigade’s leaders, said on social media last week that his forces had suffered only small losses and that they had inflicted heavy casualties on the Russian side.

The new brigades are thought to contain mostly newly mobilised soldiers led by experienced officers.

During the fighting of the last few weeks military analysts have also spotted the presence of more experienced units such as the 68th Jaeger brigade and 35th Marine Brigade in the south.

That could suggest Ukraine is attaching battalions or companies of more established units to the newer forces it has prepared to increase overall battlefield experience, military analysts say.

(Reporting by Tom Balmforth; Editing by Hugh Lawson)

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New tropical depression expected to become first 2023 hurricane -US center

by Reuters June 19, 2023
By Reuters

(Reuters) – The third topical depression of the 2023 hurricane season has formed in the central tropical Atlantic and is expected to become a hurricane in a few days, the U.S. National Hurricane Center said on Monday.

The depression, about 1,425 miles (2,295 km) east of the southern Windward Islands, is packing maximum sustained winds of 35 miles per hour (55 km per hour), the Miami-based forecaster said.

“The depression is forecast to strengthen and move across the Lesser Antilles as a hurricane on Thursday and Friday, bringing a risk of flooding from heavy rainfall, hurricane-force winds, and dangerous storm surge and waves,” the hurricane center said.

While it was too early to specify the location and magnitude of where those hazards could occur, the center urged authorities in the Lesser Antilles, Puerto Rico and the Virgin Islands to closely monitor the system and have hurricane plans in place.

If the depression becomes a hurricane, it would be the first one of the 2023 season, which lasts from June through November.

A slightly below-average 2023 Atlantic hurricane season lies ahead with an El Nino weather phenomenon damping the storm outlook, researchers at Colorado State University predicted in April.

(Reporting by Deep Vakil and Seher Dareen in Bengaluru; editing by Jonathan Oatis)

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Top minister says Israel to keep promoting settlements despite U.S. concern

by Reuters June 19, 2023
By Reuters

JERUSALEM (Reuters) – A top Israeli minister defied U.S. concern over settlement building in the occupied West Bank on Monday, saying the government would continue building and would not accept “preaching” from other countries.

“This is our country, all of it,” said Finance Minister Bezalel Smotrich, who also holds some West Bank powers, during his party faction meeting. “Does anyone think that Israel will be managed like another U.S. state? I will not accept moral preaching from anybody,” Kan broadcaster reported him saying.

Most countries deem Jewish settlements built on land Israel occupied in a 1967 Middle East war as illegal, and their expansion has for decades been among the most contentious issues between Israel, the Palestinians and the international community.

Palestinian leaders have sought to establish an independent state in the West Bank and Gaza with East Jerusalem as its capital, and say settlements undermine hopes of a viable state.

On Sunday, Prime Minister Benjamin Netanyahu’s religious-nationalist government said it planned to approve 4,560 new housing units in various areas of the West Bank. The U.S. State Department said it was “deeply troubled” by the decision.

“As has been longstanding policy, the United States opposes such unilateral actions that make a two-state solution more difficult to achieve and are an obstacle to peace,” the statement said.

Senior Palestinian official Hussein Al-Sheikh said the Palestinian Authority, which exercises limited self-rule in the West Bank, boycotted an economic meeting with Israel scheduled for Monday in protest of settlement growth.

Another Palestinian official, Wasel Abu Youssef, called on the international community to move from statements of condemnation “to imposing a boycott on the government of the Israeli occupation” and urged Arab countries to suspend normalisation agreements with Israel.

Since taking office in January, Netanyahu’s coalition has approved the promotion of more than 7,000 new housing units, most deep in the West Bank. It also amended a law to clear the way for settlers to return to four settlements that had previously been evacuated.

According to the United Nations, some 700,000 settlers live in 279 settlements across the West Bank and East Jerusalem, up from 520,000 in 2012.

Israel cites biblical, historical and political ties to the area and in a recent interview with Sky News, Netanyahu said Israeli settlements were not an obstacle to peace with the Palestinians.

(Reporting by Henriette Chacar; Additional reporting by Ali Sawafta and Nidal al-Mughrabi; Editing by Chizu Nomiyama)

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RTX: Pratt & Whitney engines unit to take $500 million free cashflow hit

by Reuters June 19, 2023
By Reuters

PARIS (Reuters) – RTX expects to take a $500 million hit to free cash flow due to a supply chain problem with the GTF engine made by its Pratt & Whitney subsidiary, the company said during an investor day on Monday.

GTF deliveries that are delayed in the second quarter will be recovered in the third quarter, RTX Chief Operating Officer Chris Calio said.

The issue involves a part that a supplier wrongly installed on a number of GTF engines, said Calio, who declined to name the company involved or the total number of engines affected. The part will need to be taken off the engine and replaced.

RTX announced a rebranding from its former name, Raytheon Technologies, on Sunday.

The GTF, one of two engine options to power Airbus’ A320neo aircraft, has suffered durability problems and Pratt & Whitney has been struggling to support airline customers with enough spare parts and engines

GTF engines are not moving through maintenance overhauls “fast enough to get them back out to our customers” without aircraft sitting on the ground waiting for engines, Calio said.

Currently, overhauls can take in excess of 120 days, well beyond the 90 to 100 days expected, due to supply chain and labor issues, he said.

“We have started to turn that corner and May was probably our highest output of the year,” Calio said. “Our intent is to get the fleet into a much more manageable position in the second half of the year.”

(Reporting by Valerie Insinna; Editing by Sudip Kar-Gupta and Mark Potter)

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Hong Kong stock exchange’s yuan stock trading debut gets lukewarm trade volume

by Reuters June 19, 2023
By Reuters

By Georgina Lee

HONG KONG (Reuters) – The 24 companies that debuted the yuan-denominated stock trading scheme in Hong Kong attracted a small fraction of their stocks’ trading volume on Monday, as interest in using the new currency option was dwarfed by the Hong Kong dollar.

Hong Kong Exchanges & Clearing began the so-called HKD/RMB dual share counter trading across two dozen firms on Monday allowing investors the option to trade stocks across the two currencies. The scheme represents part of the city’s effort to bolster its role as China’s offshore yuan hub and speed up the currency’s international use.

The top-three yuan counters that were most actively traded in terms of number of shares traded were CNOOC, which rose 1.4% to 10.38 yuan; China Mobile, which rose 1.9% to 59 yuan; and Geely Auto, up 0.6% at 9.1 yuan.

The three stocks bucked the downward trend of the Hang Seng Index, which slipped 0.6% to finish at 19,912.89.

A total of HK$177 million ($22.65 million) worth of yuan shares were traded on Monday, according to the HKEX, compared to HK$29 billion ($3.71 billion) traded across their Hong Kong-dollar counters.

For now, the dual counter service allows investors in Hong Kong to trade stocks using the 833 billion yuan offshore yuan pool in Hong Kong.

But the HKEX is working with Chinese regulators to allow mainland investors to eventually participate via the Stock Connect investment channel that connects the Hong Kong, Shanghai, and Shenzhen stock exchanges.

That could channel more trading volume into the Hong Kong bourse, as mainland investors currently trading Hong Kong stocks through the southbound leg of the Stock Connect face an exchange rate risk between the two currencies.

The Hong Kong dollar counter will remain the most traded currency for the southbound Stock Connect even after the yuan-counter is introduced, said Frank Shao, deputy head of equity investment at CSOP Asset Management.

Still, “many of our investors… are considering making the switch to the yuan-counter due to the elimination of exchange rate risk,” said Shao.

($1 = 7.1601 Chinese yuan renminbi)

($1 = 7.8160 Hong Kong dollars)

($1 = 7.8171 Hong Kong dollars)

(Reporting by Georgina Lee; Editing by Shailesh Kuber)

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Europe in danger of losing EV battery race – Court of Auditors

by Reuters June 19, 2023
By Reuters

By Julia Payne

BRUSSELS (Reuters) – Europe is in danger of losing the race to become a global battery powerhouse as access to raw materials remains a major roadblock along with rising costs and fierce competition, a report by the European Court of Auditors (ECA) said on Monday.

The report warned that the European Union may fail to meet climate goals as those efforts rely heavily on the uptake of electric vehicles run on batteries made up of a cocktail of metals ranging from cobalt to nickel and lithium.

The ECA, the EU’s independent external auditor, said nearly one in five new cars registered in the bloc in 2021 had an electrical plug. Demand is set to jump with about 30 million zero-emission vehicles expected to hit European roads by 2030, and the sale of new petrol and diesel cars will be banned by 2035.

However, the EU’s strategy has not taken into account the bloc’s ability to meet this new battery demand.

“The EU aspires to become a global battery powerhouse to ensure its economic sovereignty but will it succeed? The odds are not looking good,” Annemie Turtelboom, who led the ECA audit, told reporters.

“We are facing the risk that either the EU will miss its emissions goals for 2035 or that it will reach this target through imported batteries…which would harm European industry and come at very high prices from third countries.”

The EU’s supply of raw materials is highly concentrated in a few countries with geo-political risks that could result in shortages. For five key materials, the EU’s import reliance was on average 78%, the ECA said.

“The EU must not end up in the same dependent position with batteries as it did with natural gas from Russia,” Turtelboom said.

Some two-thirds of the world’s cobalt is sourced from the Democratic Republic of Congo, 40% of natural graphite is from China and the EU is entirely dependent on imports of refined lithium. China accounts for 76% of global battery production capacity.

Extraction in Europe will take too long. Portugal, which holds the bloc’s largest lithium reserves, does not expect production to start until 2026.

Further, the ECA said the EU lags on cost-competitiveness in part due to high energy prices while the EU Commission’s data remains outdated and incomplete, and public funding remains uncoordinated leading to overlaps.

(Reporting by Julia Payne; Editing by Kirsten Donovan)

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Ukraine targets initial $40 billion for ‘Green Marshall Plan’

by Reuters June 19, 2023
By Reuters

By Simon Jessop and Olena Harmash

LONDON (Reuters) -Ukraine is seeking up to $40 billion to fund the first part of a “Green Marshall Plan” to rebuild its economy, including developing a coal-free steel industry, a senior Ukrainian official said ahead of an international summit.

Politicians and financiers will discuss short-term funding issues as well as look at long-term reconstruction efforts at the two-day meeting, starting in London on Wednesday and co-hosted by Ukraine and Britain.

It is expected to launch a “war risk” insurance scheme to cover companies that begin investing in Ukraine again and see government officials discuss behind the scenes if and how to use frozen Russian assets to fund some of the rebuild effort.

The World Bank estimates Ukraine’s reconstruction will cost more than $400 billion, three times the country’s gross domestic product. Since Russia’s invasion in February 2022, external backers have poured $59 billion into Ukraine to support it during the war.

Giving the figure of $40 billion for an initial phase of reconstruction, Rostyslav Shurma, a deputy head of President Volodymyr Zelenskiy’s office, told Reuters the first focus would be the iron and steel industry.

The sector contributed around 10% of Ukrainian GDP in 2021, a third of export revenues and employed around 600,000 people. It also accounted for 15% of the country’s carbon emissions and Shurma said there was now an opportunity to build an industry driven by renewable energy.

“If you have to rebuild, it is logical to rebuild green in line with new technologies … Our vision is to build a 50 million tonnes green steel industry in Ukraine,” he said.

Doing so would allow the country to become the world’s cheapest supplier of so-called “green” steel – made without the use of fossil fuels – and a major support to Europe’s efforts to decarbonise, driven by an investment push in new wind, solar, nuclear and hydro power.

RUSSIAN ASSETS

Many of the country’s damaged legacy steel plants were built in locations that suited their reliance on coal as a power source, but they were now free to build closer to the iron ore deposits and away from the Donbas region, Shurma said.

Moscow last year claimed the Donetsk and Luhansk regions, which make up the broader Donbas region, as “republics” of Russia, in a move condemned by most members of the United Nations as illegal.

To help raise $20 billion to $40 billion in initial funding, Ukraine plans a coalition of industry, public and private sector stakeholders to develop the plan, including doing initial scoping work on projects.

Preparatory work would likely take 1-1/2 years although “to be realistic, actual construction will start only after the war” is over, Shurma said.

Officials from over 60 countries are expected to attend the conference, as will the top global multilateral institutions such as the World Bank, European Investment Bank and European Bank for Reconstruction and Development bank that are being asked to ramp up their lending.

Shurma said funding would be a blend of finance from export credit agencies in other countries; concessional funding handled through the Ukrainian Development Fund it is setting up with asset manager BlackRock; equity of the operating companies; EU transition funding; and private sector loans.

Matteo Patrone, a managing director at the EBRD, said it was crucial to put the focus on the need for private sector involvement.

Multilateral lenders like the EBRD and World Bank will increase their roles too – in order to encourage the private sector – by providing the new “war risk insurance” schemes on behalf of their G7 and other shareholder governments.

The thorny issue of using the estimated $300 billion of frozen Russian central bank reserves is also expected to be discussed by government officials and bankers, although no firm steps to are likely to be announced at this stage.

U.S. lawmakers from both the Republican and the Democratic parties introduced a bill on Thursday that would make it easier for Ukraine to fund its fight against Russia by using seized and frozen Russian assets.

(AdditionaL reporting by Marc Jones and Jorgelina do Rosario; Editing by Elisa Martinuzzi, Frances Kerry and Alison Williams)

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Dollar nudges up, sterling near 14-month highs ahead of BoE decision

by Reuters June 19, 2023
By Reuters

By Iain Withers

LONDON (Reuters) -The dollar edged higher and the UK pound was near a 14-month peak on Monday as investors digested a slew of monetary policy decisions by central banks last week and looked ahead to a crunch decision by the Bank of England on Thursday.

Currency market moves have been dominated by central bank efforts globally to curb high inflation, with the dollar index sliding to its biggest weekly fall since January last week after the U.S. Federal Reserve skipped a rate rise.

The dollar index, which measures the U.S. currency against six major counterparts, ticked up 0.2% to 102.480. It remained not far from a one-month low of 102.00 it touched on Friday. U.S. markets are closed on Monday for a holiday.

Investors expect the Bank of England to hike rates by at least 25 basis points when it meets on Thursday, as it battles inflation running at more than four times its target.

The pound is changing hands near 14-month highs against the dollar on expectations UK rate rises will outpace other major economies. The pound edged down 0.2% at $1.27960.

Money markets place a 72% chance of the BoE opting for a 25 basis points hike and a 28% likelihood of a 50 basis point jump.

In a busy week for central banks last week, the European Central Bank on Thursday raised rates by 25 basis points and left the door open to more hikes, while the Bank of Japan’s decision on Friday to stick with its ultra-easy policy kept the yen fragile.

Euro zone inflation is at risk of overshooting recently lifted forecasts and the ECB should err on the side of raising rates too much rather than too little, ECB board member Isabel Schnabel said on Monday.

The bloc’s chief economist Philip Lane earlier said the ECB was likely to raise rates again next month but the September meeting is too far away and the decision will be shaped by incoming data.

The euro dipped 0.2% to $1.09190, trading close to a one-month peak, while the yen was broadly flat at 141.840, near a seven-month low of 142.005 earlier on Monday.

Traders will closely watch U.S. congressional testimony scheduled to be given by Federal Reserve Chair Jerome Powell on Wednesday and Thursday this week for any hints on the future path for rates in the world’s largest economy.

Currency analysts at MUFG said in a note that the testimony was one of the important risk events for the dollar this week, but said they expected similar messaging following the Fed decision last week.

“The Fed was clear that they now felt they could slow the pace of hikes but that the decision to skip a hike this month did not mean the hiking cycle was over,” the analysts said.

Markets are pricing in a 72% probability of the Fed hiking by 25 basis points next month, the CME FedWatch tool showed.

(Reporting by Iain Withers, additional reporting by Ankur Banerjee in Singapore; Editing by Emma Rumney, Marguerita Choy and Sharon Singleton)

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