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Business News

Nike sneakers fuel sales beat, excess apparel stocks still a drag

by Reuters March 22, 2023
By Reuters

By Ananya Mariam Rajesh

(Reuters) -Nike raised its full-year revenue outlook on Tuesday after reporting quarterly results that beat estimates, but warned of margin pressures as it continues to get rid of excess inventory through heavy discounts.

The company saw strong demand for its sneakers, including classic styles such as Jordan Retro and newer franchise launches such as LeBron 20, that helped grow its market share.

Nike said its apparel inventory fell in the third quarter and expects to end fiscal 2023 with “healthy” inventory levels.

Rival Adidas is still struggling from its split with the artist formerly known as Kanye West and the German company is expected to post its first annual loss in three decades this year.

Nike’s shares fell 2% in extended trading on Tuesday after the company said it expects 2023 gross margin to decline about 250 basis points, at the low end of its previous forecast range.

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The company’s margins remain pressured by a strong U.S. dollar, higher freight costs and Nike’s efforts to offer steeper discounts in an attempt to get rid of excess inventory, Chief Financial Officer Matthew Friend said.

Nike is in a much better position with inventories than it was in the past six months, Jessica Ramirez, senior analyst at Jane Hali and Associates said.

Sales in Greater China fell about 8% even as the country eased pandemic-related restrictions, which is expected to benefit the company in the near term.

Nike’s recovery in China looks a lot more better than Adidas which has been “falling apart” in the country, Morningstar analyst David Swartz said.

Nike now expects reported revenue for the full year to increase in the high-single-digit range, compared with its previous forecast of growth in the mid single digits.

In the fourth quarter, the company expects flat to low-single-digit revenue growth, compared with estimates of a 2.42% rise, according to IBES data from Refinitiv.

Nike posted revenue of $12.39 billion in the third quarter beating estimates of $11.47 billion and reported a profit of 79 cents per share above estimates of 55 cents.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)

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March 22, 2023 0 comments
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Business News

US mortgage rates tumble by the most in 4 months in SVB’s wake, MBA says

by Reuters March 22, 2023
By Reuters

(Reuters) – Last week’s banking sector turmoil had at least one silver lining for U.S. home buyers: lower mortgage interest rates.

Interest rates on the most popular U.S. home loan tumbled by the most in four months last week after the failure of Silicon Valley Bank and emergency measures taken to shore up the wider banking system drove a mad dash by investors to the safety of government bonds, the Mortgage Bankers Association said on Wednesday.

The resulting drop in yields on the Treasury notes that act as benchmarks for home loans pushed the average rate on 30-year fixed-rate mortgages down by 0.23 percentage point to 6.48% for the week ended March 17 from 6.71% the week before. It was the largest weekly drop since a decline of the same magnitude in mid-November.

The lower rates drove a jump in loan application volumes, with applications for both new purchases and refinancing of existing loans hitting a six-week high, MBA said.

“Both purchase and refinance applications increased for the third week in a row as borrowers took the opportunity to act, even though overall application volume remains at relatively low levels,” MBA Vice President and Deputy Chief Economist Joel Kan said in a statement.

In fact, the drop in residential borrowing costs of 0.31 percentage point in the last two weeks was far more modest than might have been expected given that the yield on the 10-year Treasury note, which acts as a benchmark for mortgage rates, tumbled more than half a percentage point over the same window. It was the largest drop – outside of the panic in the early days of the COVID-19 pandemic – since the financial crisis in 2008.

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Kan attributed that to increased volatility in the market for mortgage-backed securities, which prevented consumer borrowing costs from dropping even more. The spread between the 30-year fixed and 10-year Treasury remained wide at around 3 percentage points compared with a more typical spread of 1.80 percentage points, he said.

Mortgage rates had soared to more than 7% last October as the Federal Reserve raised its benchmark policy rate in 2022 at the fastest pace in 40 years to combat inflation. The interest rate-sensitive housing sector has borne the brunt of the Fed’s actions, though sales of existing homes increased in February for the first time in about a year.

With the U.S. central bank seen as likely to raise interest rates again later on Wednesday and with market turbulence having subsided so far this week, it’s not clear how long the recent interest rate relief will last.

(Reporting by Dan Burns; Editing by Leslie Adler)

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March 22, 2023 0 comments
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Business News

UK inflation surprise pressures BoE to raise rates again

by Reuters March 22, 2023
By Reuters

By David Milliken and William Schomberg

LONDON (Reuters) – British inflation unexpectedly rose to 10.4% in February, pushed up by higher food and drink prices in pubs and restaurants, according to official data which is likely to prompt the Bank of England to raise interest rates on Thursday.

Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 9.9% in February from January’s 10.1% and move further away from October’s 41-year high of 11.1%.

The figures – including increases in underlying inflation measures that the BoE closely monitors – are likely to bolster the concerns of those BoE policymakers who worry that inflation will be slow to fall, even after 10 straight rate hikes.

Investors had been split on whether the central bank would pause that run after the recent upheaval in the global banking sector. But financial markets on Wednesday fully priced in a quarter-point increase to 4.25%.

“While the decision has at times over the last week looked to be on a knife edge, this inflation outturn would appear to swing it in favour of a 25-basis-point hike,” said Liz Martins, senior economist at HSBC.

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Sterling rose against the dollar and the euro after the data was published and two-year British government bond yields, which are sensitive to speculation about interest rates, jumped.

The increase in inflation contrasted with a fall in the U.S. CPI rate to 6.0% in the 12 months to February. Euro zone inflation also eased last month to 8.5% but underlying price growth continued to accelerate.

The ONS said that an end to January drinks promotions in pubs and restaurants was the biggest factor behind last month’s rise, but shortages of salad items also played a role.

Overall inflation for food and non-alcoholic drinks rose to 18.0%, the highest since 1977, reflecting cold weather in southern Europe and north Africa, as well as reduced production from greenhouses in northern Europe that face high energy bills.

Higher alcoholic drink prices added 0.17 percentage points to February’s inflation rate while the increased cost of food and non-alcoholic beverages added 0.15 percentage points. Lower petrol prices helped offset some of these increases.

GRAPHIC – Unexpected jump in UK inflation: https://www.reuters.com/graphics/BRITAIN-ECONOMY/INFLATION/lgpdkjjlovo/chart.png

UNDERLYING INFLATION UP TOO

Annual inflation in the services sector, which most policymakers view as a good measure of underlying price pressures in the economy, rose to 6.6% from 6.0% in January.

Basic wages – a big driver of services prices – rose by an annual 6.5% in the three months to January, and a survey of employers on Wednesday showed they expected to raise pay by an average of 5% this year, around double pre-pandemic rates.

Core CPI – which excludes energy, food, alcohol and tobacco and is also watched closed by the BoE – rose to 6.2% from 5.8% in January, versus a forecast decline to 5.7%.

“These inflation figures smell a little like the recent U.S. experience, where it appeared that core inflation was easing rapidly a few months ago only for it to accelerate again as economic activity proved resilient,” said Paul Dales, chief UK economist at Capital Economics.

However, other analysts said the increase in inflation appeared to be caused by one-off factors.

Last month, the BoE forecast headline inflation would drop below 4% by the end of 2023 and be beneath its 2% target from mid-2024 onwards, with energy prices no longer rising steeply.

The government’s Office for Budget Responsibility forecast last week that inflation would fall below 3% by the end of 2023.

Some BoE policymakers have said they had tightened enough and the full impact of past rate rises had yet to be felt.

Finance minister Jeremy Hunt said the data showed the expected decline in inflation could not be taken for granted.

“Falling inflation isn’t inevitable, so we need to stick to our plan to halve it this year,” he said.

On Tuesday, he told lawmakers that inflation above 10% was “dangerously high”.

There were some signs of decreasing price pressures ahead.

Prices paid by factories increased by 12.7% over the 12 months to February, still a big rise by historical standards but their weakest increase since September 2021. Prices charged by manufacturers rose at their weakest pace in a year, up by 12.1%.

(Editing by Bernadette Baum)

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March 22, 2023 0 comments
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US and World News

Scranton to Biden: Love ya, Joe. But a 2024 run?

by Reuters March 22, 2023
By Reuters

By Jarrett Renshaw

SCRANTON, Pennsylvania (Reuters) – In Joe Biden’s childhood hometown of Scranton, signs of affection for the U.S. president are hard to miss.

Two streets and an expressway into the city bear his name, and personal letters from Biden that invoke the “Scranton values” of hard work and common decency that he frequently flags are proudly displayed in living rooms and offices of some supporters.

Two residents told stories about Biden making surprise calls to their moms during one of his visits. Business owners credit Biden’s programs for their financial survival through the COVID-19 pandemic.

Despite those strong ties, interviews with about two dozen Scranton voters show many harbor deep concerns about Biden running again. Biden, 80, is already the oldest sitting U.S. president and would be 86 at the end of his second term, if re-elected.

“I worry about his age and his health,” said Jenn Saunders, 57, who owns a downtown coffee shop, and voted for Biden in 2020.

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The interviews provide a window into voters’ attitudes toward Biden’s re-election bid, set to be formally announced in coming weeks. National polls show Democrats want a younger candidate, and the lack of fervor in Scranton may be an early warning sign for the party. Biden’s approval rating remains quite low but it edged up to 42% in a Reuters/Ipsos poll this month.

Many Scranton residents say they might back Biden again in 2024, albeit without much enthusiasm. They expressed frustration at the Rust Belt town’s long economic slump and the apparent lack of options in 2024.

“I think it’s kind of what he’s supposed to do, run again, right? That’s really what he’s supposed to do. Is there a president that didn’t go for a second run at all? But who else is there?” Kimberly Smith, 45, a manager at the city’s Glider Diner, said. “We just need someone fresh.”

With lower voting rates than many other democracies, enthusiasm plays an important role in deciding U.S. elections. An average of 57% of voting age eligible voters cast ballots in the last four presidential elections.

Biden aides say they welcome a possible rematch against Donald Trump, arguing it will help energize a base angered by the former president. However, polls show the American public doesn’t feel the same way.

“The idea of a Biden-Trump rematch makes me cringe,” said Donald Banks, 83, a retired teacher and Scranton native. Saunders said choosing Biden over Trump might end up being “the lesser of two evils once again.”

ORIGIN STORY

Scranton, where European immigrants once flocked to local coal mines, has long been the foundation of Biden’s origin story, even though he left around the age 10. The region was for years dominated by Democrats, but Trump upended that dynamic with his support among white, working-class voters.

Biden won the Democratic stronghold of Lackawanna County, due in large part to Scranton, by nine points in 2020, outperforming Hillary Clinton in 2016 who won the county by under four points.

Biden often peppers speeches with references to the lessons learned in his town in northeastern Pennsylvania, now a swing state in presidential elections. Biden has visited Scranton twice as president and several times on the campaign trail.

“I am proud to fight for the Scranton values that we were raised on,” Biden wrote in a 2021 letter to former mayor Jim Connors. The letter hangs in Connors’ living room, along with other Biden photos and a newspaper clipping showing a 13-year-old Biden at a Scranton parade for former president Harry Truman.

Connors, 76, says the president embodies the underdog mentality embraced by working-class cities like Scranton. He says he is proud of Biden for leading the global fight against Russia’s invasion of Ukraine, which he visited recently.

“He went over there to help. He’s from Scranton. That’s what we do. They call this place the friendly city. That’s not just hype,” Connors said. “That’s how Joe was raised.”

He added: if Biden wants to run again, “let somebody step up and beat him.”

Few residents, though, said life has improved under Biden.

Glyn Johns, 29, is a local Black activist who had hoped having a Scranton native in the White House would illuminate the problems facing Rust Belt cities. Roughly one-in five people in Scranton are in poverty, twice the national rate, and the school district sits near the bottom of national and state rankings.

Johns says she is disappointed so far.

“I still think there should be more than street names that are changed and highways that are renamed for you. Because those highways still have potholes. People that are on Biden Street are still struggling with their businesses,” said Johns.

Black voters were credited for helping deliver the White House to Biden, but Democrats fear some Black people are growing disillusioned and souring on the idea that politics offer solutions to their problems.

Paige Cognetti, the current mayor of Scranton, says the city has flourished under Biden, even if that has sometimes gone unnoticed. She said the city and region benefited from millions of COVID-19 stimulus dollars, including paying for a new fleet of electric vehicles.

Scranton has tapped into federal funding to help boost local wages and support small businesses. Biden is also supporting a plan to build a new rail line from Scranton to New York City.

“So, when I think about President Biden, I don’t just think about President Biden being our hometown son,” Cognetti said. “I think about him ushering through an era of funding for the things that cities like Scranton need.”

(Reporting By Jarrett Renshaw; Editing by Heather Timmons and Alistair Bell)

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March 22, 2023 0 comments
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South Africa Feb inflation higher than forecast as power cuts bite

by Reuters March 22, 2023
By Reuters

By Bhargav Acharya

JOHANNESBURG (Reuters) -South Africa’s inflation rose slightly more than expected in February, a further indication that rolling power cuts nationwide may be fuelling price pressures, data showed on Wednesday.

South Africa’s headline consumer inflation rose to 7.0% year-on-year in February from 6.9% in January, Statistics South Africa said.

On a month-on-month basis, consumer inflation was at 0.7% in February compared to -0.1% in the previous month.

Analysts polled by Reuters had predicted the year-on-year figure to come in at 6.9% and month on month at 0.6%.

South Africa has been dealing with rotational power cuts on a daily basis, hampering businesses and economic growth in Africa’s most industrialised economy.

“The rise… may be a sign that the intensification of loadshedding (power cuts) in recent months is fuelling price pressures,” Capital Economics said in a research note.

The South African Reserve Bank targets inflation of between 3% and 6%.

The central bank’s Monetary Policy Committee (MPC) raised rates by a smaller than forecast 25 basis points in January as it lowered its economic growth forecasts over the crippling power cuts.

The bank, which has raised interest rates at its last eight monetary policy meetings to tame inflation, said inflation is expected to sustainably fall to the midpoint of its target range by the fourth quarter of 2024.

“So long as renewed fears about the global banking system do not flare up, the Reserve Bank will almost certainly press ahead with a final 25 basis points interest rate hike at next week’s MPC meeting,” the note added.

Market focus will be on the U.S. Federal Reserve’s policy meeting, which will end later in the day, with investors awaiting clarity on the path the U.S. central bank could take in the wake of a global banking turmoil.

Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, was at 5.2% year on year in February, from 4.9% the previous month.

On a month-on-month basis core inflation was at 0.8% in February, compared to 0.2% in January.

(Additional reporting by Rachel Savage; Editing by James Macharia Chege and Bernadette Baum)

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March 22, 2023 0 comments
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Marketmind: Leaning back to Fed hike, UK inflation jolt

by Reuters March 22, 2023
By Reuters

A look at the day ahead in U.S. and global markets from Mike Dolan

A semblance of banking calm has allowed markets to pick a lane and bet one last U.S. interest rate hike later on Thursday – but you’d be forgiven for doubting any suggestion of market conviction right now.

Two weeks of U.S. and European banking stress and failures leaves the Federal Reserve and other major central banks in the unenviable position of choosing between stabilising financial systems and fighting still historically high inflation.

The level of uncertainty – particularly during a public blackout period for Fed officials – has seen wild swings in market interest rates each day for a fortnight and the most volatile month for Treasury bonds since the banking collapse of 15 years ago.

While many think bank turmoil in itself will ultimately hasten a credit crunch that does the Fed’s job for it, shocking news of a re-acceleration of UK inflation last month was a reminder to central banks that disinflation is not yet baked in.

While the British inflation surprise reflects some of the price stickiness already evident in February U.S. numbers released earlier in the month, and may potentially be overtaken by recent banking events, it hugely complicates the Bank of England’s policy decision on Thursday at least.

Without another landmine in the banking world over the past 24 hours, and following the first consecutive daily gains in the S&P500 in almost three weeks on Tuesday, money markets have now focussed squarely on the looming policy decisions.

Futures markets now see a 85% chance the Fed will lift rates by a quarter point later – but no further rate rise is fully priced for the cycle and at least one rate cut by yearend still remains in the futures strip.

Two year U.S. Treasury yields clung on to 4% – but have now recorded intraday swings of more than 25 basis points every trading day since March 10, with a peak-to-trough move on March 15 alone exceeding 70bp.

In truth, the Fed meeting may be far messier than that implies, with Fed chair Powell’s press briefing having to square pressing financial stability questions and recent emergency Fed lending against ongoing quantitative tightening and another rate rise. On top of that, the latest quarterly economic projections from Fed policymakers may reveal a big dispersion of views.

U.S. stock futures and euro bourses were flat first thing, with banking news focussed on Treasury Secretary Janet Yellen’s latest assurances overnight and further moves to shore up First Republic Bank – which is still in the crosshairs.

Beyond the Fed, the dire UK inflation reading seems to have solidified expectations of another BoE rate rise on Thursday and a further move later in the year. The prospects of a hike this week were seen as only 50-50 just 24 hours ago.

If nothing else, it underlines in red ink just how all central banks are totally dependent now on incoming data evidence on what’s happening in the real economy.

On that score, Thursday’s news of the first annual drop in U.S. house prices in 11 years won’t go unnoticed in Washington either.

With the U.S. dollar lower across the board ahead of the Fed meeting, sterling hit its highest level since early February.

Elsewhere, the prospect of central banks hesitating in further credit tightening seems to have excited the frothier parts of the financial markets, with Bitcoin back above $28,000 this week for the first time since June and even ‘meme stocks’ like GameStop surging 40% before the bell after the videogame retailer reported a surprise profit.

In tech, Alphabet Google on Tuesday began the public release of its chatbot Bard, seeking users and feedback to gain ground on Microsoft Corp in a fast-moving race on artificial intelligence technology.

Key developments that may provide direction to U.S. markets later on Wednesday:

* U.S. Federal Reserve policy decision, press conference and new economic projections

* European Central Bank President Christine Lagarde, ECB chief economist Philip Lane and ECB board member Fabio Panetta speak in Frankfurt; Bundesbank chief Joachim Nagel speaks in London; Bank of Finland Governor Olli Rehn speaks in Brussels

* Bank of Canada policy meeting minutes

Graphic: Unexpected jump in inflation https://www.reuters.com/graphics/BRITAIN-ECONOMY/INFLATION/lgpdkjjlovo/chart.png

Graphic: Traders bet on rate hike as fears of bank crisis ease https://www.reuters.com/graphics/USA-RATES/FEDWATCH/xmpjkbnxmvr/chart.png

Graphic: Majority of Americans oppose a bank bailout https://www.reuters.com/graphics/GLOBAL-BANKS/SVB-POLL/gdpzqkynavw/chart.png

Graphic: OpenAI’s ChatGPT sees meteoric growth https://www.reuters.com/graphics/MICROSOFT-GOOGLE/AI/lgpdkjogqvo/chart.png

(By Mike Dolan, editing by Raissa Kasolowsky [email protected]. Twitter: @reutersMikeD)

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March 22, 2023 0 comments
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Argentina drought saps dollar reserves, pressuring FX crawling peg

by Reuters March 22, 2023
By Reuters

By Walter Bianchi and Jorge Otaola

BUENOS AIRES (Reuters) – Argentina’s slow-and-steady currency devaluation plan is coming under rising pressure as a historic drought pummels exports of cash crops soy and corn, draining the country’s reserves of dollars needed to prop up the embattled peso.

The South American country controls its official peso-dollar exchange rate with regular currency interventions, but the cost of doing so is rising, with $1.2 billion of hard currency sold in March alone, data from traders show

The drought – hitting dollar incomes – is now raising the specter of a faster devaluation, which the government is desperate to avoid ahead of general elections in October, wary of pumping up annual inflation already running at 102.5%.

“It strains the exchange plan the government is trying to implement with progressive devaluation, the alternative to avoid a sharp devaluation shock,” said Santiago Manoukian, economist at consultancy Ecolatina.

“It is the Achilles heel of the government’s strategy.”

The government has contended with flourishing parallel FX markets since capital controls were imposed in 2019. Dollars trade at around twice the price they do at the official exchange rate with even banks offering openly offering unofficial rates.

SOY, MALBEC DOLLARS

To deal with the distortions, the government has at times rolled out its own parallel rates for specific sectors, including a “soy dollar” for grains exporters and a “Malbec dollar” for wine.

An Economy Ministry source denied to Reuters the possibility of the formalization of official parallel FX rates, while a central bank spokesman declined to comment on the topic.

Local economist Gustavo Ber said the “daily bleeding” of reserves was a rising concern, with traders closely watching what happened with the peso crawling-peg.

“People are waiting for an acceleration to align it with the interest rate (at 78%) and inflation, although the government could be inclined to keep holding off so as not to add more pressure to prices,” he said.

The rising pressure on the currency has seen dollars trade at 400 pesos per dollar in parallel markets, compared to 205 pesos at the official rate.

The decline in reserves has also raised fears about Argentina’s ability to make repayments on large foreign debts, including with the International Monetary Fund (IMF), which struck a $44 billion deal with the country last year.

Argentina is seeking to ease reserve targets with the IMF and will delay two repayments due this week until March 31, the Washington-based lender confirmed on Tuesday.

Maximiliano Donzelli, analyst at IOL, said a sharp devaluation remained unlikely despite the growing pressure, with temporary and targeted parallel rates more likely.

“An aggressive devaluation will not occur in the coming months,” he said.

(Reporting by Walter Bianchi and Jorge Otaola)

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March 22, 2023 0 comments
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Biden, Trudeau to talk Ukraine, defense spending, Haiti in Ottawa

by Reuters March 22, 2023
By Reuters

By David Ljunggren and Andrea Shalal

OTTAWA/WASHINGTON (Reuters) -U.S. President Joe Biden will make a long-delayed visit to close ally Canada this week to express unity on Ukraine and the environment, but is unlikely to make much progress on tougher trade disputes, sources said on Tuesday.

Biden will be in the capital Ottawa on Thursday and Friday to address Parliament and meet with Prime Minister Justin Trudeau.

U.S. presidents traditionally make their first international trip to Canada but delays – in part caused by COVID-19 – mean Biden has already visited almost 20 other nations first. He held his first bilateral meeting as president with Trudeau, albeit virtually.

U.S. and Canadian sources said no significant announcements were likely, with both leaders expected to agree to continue working on areas where they differ – such as defense spending, the crisis in Haiti and a dairy trade dispute.

Top of mind in Ottawa is Biden’s push to boost manufacturing in the U.S., an economy 10 times the size of Canada’s.

Biden’s Inflation Reduction Act (IRA) passed last year includes massive incentives to invest in green industries in the U.S., forcing Canada to try to make up the difference with investments of its own.

Goldy Hyder, chief executive of the Business Council of Canada, said he wanted more of a recognition from the U.S. that the two nations’ economies were highly integrated and that Canadian firms could benefit from the IRA.

“It is not in America’s interest to consolidate the capital to consolidate the innovation, to consolidate the talent, because you weaken your allies,” he told reporters.

Despite the unity over Ukraine, the U.S. is less happy with Canada over its defense spending, which has long failed to meet the 2% target of GDP set by NATO members.

The recent incursion of a Chinese balloon put the focus on

NORAD, the joint U.S.-Canadian North American defense organization that experts say is in dire need of upgrades.

Last June, Canada promised to invest C$4.9 billion ($3.6 billion) over six years to modernize NORAD. But Canada’s defense spending is around 1.3% of GDP, well below the NATO target of 2%.

David Cohen, the U.S. ambassador to Canada, told CTV that defense spending would be “a topic of ongoing conversation … because we do need more dollars for defense.”

The U.S. also wants Canada to address the chaos in Haiti, possibly by leading a security mission there, but Canada’s top general this month said he not have the capacity.

“The Americans, I think, are reaching a point where they are getting fed up,” said Colin Robertson, vice president of the Canadian Global Affairs Institute and a former Canadian diplomat with several U.S. postings.

Trudeau is likely make a commitment of sorts on Haiti but less than Washington is pressing for, said a source briefed on the summit.

($1 = 1.3727 Canadian dollars)

(Reporting by David Ljunggren in Ottawa and Andrea Shalal in Washington; Editing by Heather Timmons; Editing by Josie Kao)

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March 22, 2023 0 comments
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Italy makes biofuel demand as EU attempts to unblock combustion engine phase-out

by Reuters March 22, 2023
By Reuters

By Kate Abnett

BRUSSELS (Reuters) – Italy has warned the European Commission that it will only support a solution to unblock the EU’s planned phase-out of combustion engine cars by 2035 if it allows the sale of cars running on biofuels to continue after that date.

The European Union is racing to save its main policy for cutting car CO2 emissions, after Germany lodged last-minute opposition to the law, which would phase out sales of new combustion engine cars from 2035.

Italy and Germany have both demanded that the EU allow sales of new combustion engine cars after 2035 if they run exclusively on carbon neutral e-fuels – which could support manufacturers of combustion engine cars and parts.

In a letter to the Commission this week, Italy said the offer must also cover biofuels – those derived from biomass like plants.

“Italy would not accept an unduly restricted interpretation by the Commission of ‘CO2 neutral fuels’, that includes only e-fuels and not biofuels,” three Italian ministers, of transport, environment and enterprises, said in the letter dated March 21 and seen by Reuters.

Brussels is in talks with Germany to attempt to resolve the row, with some officials hoping to reach a deal before a summit of EU leaders on Thursday. Countries including Poland and the Czech Republic have also raised issues with the law.

In an attempt to resolve it, the Commission has drafted a proposal to allow carmakers to register new cars that run exclusively on carbon neutral fuels. The draft, seen by Reuters on Tuesday, did not include biofuels in the definition of “carbon neutral fuels”.

A spokesperson for Italy’s transport ministry said it had not received a response to the letter.

The Italian ministers said in their letter that they expected the Commission to propose allowing sales after 2035 of cars running on any fuels that when combusted in an engine, only release CO2 emissions that were captured from the air during their manufacture.

A commitment from the Commission on when it will make this legal proposal could unlock a deal on the combustion engine phase-out, they three said.

(Reporting by Kate Abnett, additional reporting by Alvise Armellini, editing by Robert Birsel)

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March 22, 2023 0 comments
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South Korea, US to hold largest live-fire drills amid North Korea tension

by Reuters March 22, 2023
By Reuters

By Hyonhee Shin

SEOUL (Reuters) – South Korean and U.S. forces will hold their largest-ever live-fire exercises in June in a show of force to North Korea, which has ratcheted up tension with numerous missile launches, South Korea’s defence ministry said on Wednesday.

The exercises are part of a series of events marking the 70th anniversary of the alliance between the two countries this year.

“We’ve planned various anniversary programmes focusing on realising ‘peace through strength’ through action based on our strategic deterrence capabilities and the solid combined defence posture amid North Korea’s evolving nuclear and missile threats,” the ministry said in a statement.

“During the live-fire exercises, the combined forces will demonstrate the alliance’s formidable firepower and mobility on an unprecedented scale.”

South Korea plans to mark the 75th anniversary of the founding of its military in September with a display by the allies’ forces of their “overwhelming deterrence and response capabilities” against the North, that will include South Korea’s missile defence system, the ministry said.

In recent weeks, North Korea has been ramping up its military tests, firing an intercontinental ballistic missile last week and conducting a nuclear counterattack simulation against the U.S. and South Korea over the weekend.

The United States has about 28,500 troops in South Korea.

U.S. and South Korean forces have been carrying out various types of military training in recent weeks including air and sea drills involving American B-1B bombers, and their first large-scale amphibious landing exercises in five years.

North Korea has reacted furiously to those drills, calling them a rehearsal for its invasion.

(Reporting by Hyonhee Shin; Editing by Robert Birsel)

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March 22, 2023 0 comments
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Donations and despair: Syria’s north-west tries to rebuild after quake

by Reuters March 22, 2023
By Reuters

By Khalil Ashawi and Timour Azhari

JANDARIS, Syria (Reuters) – Hussein Mankawi has little hope he will ever rebuild his home and food distribution businesses in the north-west Syrian city of Jandaris after they were reduced to rubble by last month’s deadly earthquake, wiping out his life’s work.

“What can we do? We’ll put up a tent instead. There is nothing but tents,” he said, standing by the mangled ruins of his home in the rebel-held region.

The Feb. 6 earthquakes were the worst modern-day natural disasters to strike Syria and Turkey, killing more than 56,000 people across the two countries.

Turkey has pledged state-led efforts to rebuild more than 300,000 homes within the first year and the cash-strapped Syrian government has created a compensation fund for victims and offered temporary housing to the displaced.

But this help is unlikely to reach Syria’s northwest, an enclave controlled by rival anti-government rebels and home to 4.5 million people — 2 million of whom lived in tented camps even before the quake struck, according to the United Nations.

International organisations struggle to access the zone regularly and there has been no visible centralized reconstruction effort.

The U.N. says more than 100,000 people have been displaced in the region since the first quake struck on Feb. 6.

On the edge of destitution and with nowhere to turn, residents are trying to make do on their own.

Mankawi is recovering what possessions he can with help from a local entrepreneur who agreed to move the rubble of his home in return for keeping the metal inside it – a deal underscoring the deep deprivation in the area.

“No-one is helping us at all. We’ve seen nothing,” Mankawi said.

OBSTACLES

Damage has not been limited to homes.

In Jandaris, one of the hardest-hit areas, half of the 48 schools required reconstruction or repairs, as did more than 20 kilometers of water and sanitation networks and most of the city’s roads, said Mahmoud Haffar, head of the local council.

But he said local authorities did not have the resources to rebuild.

“Frankly, local capabilities are very limited and (rebuilding) will require international help… there is no clear funding for reconstruction and repairs,” he said.

Donors at an EU-led conference on Monday pledged 7 billion euros($7.5bln) to help reconstruct Turkey.

But the bloc has sanctions on Damascus in place and said it would only finance humanitarian assistance and early recovery but not full-scale reconstruction for as long as there is no political dialogue between Assad and his adversaries.

Foreign state funding for reconstruction in the region held by rebels who seek Assad’s ouster faces additional stumbling blocks, according to three diplomats working on Syria.

The presence of rival armed groups in the region is one of the main issues, they say, noting that the most powerful group, Hayat Tahrir al-Sham, is designated a terrorist organisation by the U.S. and United Nations.

Most international aid that has reached the area over the past decade has been earmarked for humanitarian relief, not reconstruction, a trend that was likely to continue, according to Karam Shaar, a political economist at the Middle East Institute think-tank.

“In the foreseeable future, people will continue to rely on private funding to reconstruct their buildings or just move to tents instead,” he said.

CROWDFUNDED RECOVERY

Before the quakes struck, Syrian NGO Molham Team was building a sprawling 1,500-unit housing complex in Azaz, driven by the ambitious goal of relocating families from tents into formal housing, team member Baraa Baboli said.

It was inspired by the realization that Syrians could not wait for help from outside, and was financed through online crowdfunding.

After the quake, Molham launched a new appeal, raising more than $11 million intended for the construction of an additional 2,300 units between Idlib, Salqin and Harem – all areas hit hard by the quake.

Meanwhile, property developers in the area say they have begun to adapt their construction plans to fit quake trauma and potential shortages in raw materials.

Abdo Zamzam, the director of a local construction company, said projects before the quake were mostly four- to five-story buildings but consultations with locals showed most people now wanted to live in one- or two-story buildings they deemed safer.

PRICE RISES

Construction materials in the enclave are almost entirely imported from Turkey, raising fears the Syrian zone could face shortages when mass reconstruction begins across the border or struggle to pay higher prices.

Prices of cement and metal have already risen by around 30 percent, according to developers and a Syrian border official, from $85 to more than $120 for a ton of cement, and from $600 to more than $800 for a ton of metal.

A senior Turkish official told Reuters authorities had not restricted exports of materials needed for construction – such as cement, sand and tiles – and had no plans to do so as these materials were abundant in Turkey.

At the Turkish-Syrian border crossing at Cilvegozu, long lines of trucks, many loaded with cement from factories based in southern Turkey purchased by private traders in Syria, have waited to cross into northwest Syria.

At the same crossing, tens of thousands of Syrians have crossed back into their homelands, many to rebuild their lives in the north-west, risking more pressure on already-scarce housing.

About 55,000 Syrians have returned since mid-February, Syrian rebel border official Mazen Alloush said, adding they had not yet recorded any trips back to Turkey.

Ahmad al-Ahmad, a 22-year-old Syrian who worked as a tailor in the devastated Turkish city of Kahramanmaras, said he was moving back to Syria after both his home and workplace were heavily damaged.

He said he did not know what awaited him.

“We were looking for a better life,” he said as he waited to be let through the border with his family.

“We migrated in order to settle down and now we are back to square one; displacement after displacement.”

(Reporting by Khalil Ashawi in Jandaris, Syria and Timour Azhari in Cilvegozu, Turkey; Additional reporting by Orhan Coskun in Ankara; Writing by Timour Azhari; Editing by Maya Gebeily and Christina Fincher)

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March 22, 2023 0 comments
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UK house prices rise 6.3% in 12 months to January – ONS

by Reuters March 22, 2023
By Reuters

LONDON (Reuters) – British house prices rose by 6.3% in January from the same month in 2022, the Office for National Statistics (ONS) said on Wednesday.

The rise was smaller than December’s downwardly revised 9.3% increase.

London saw the weakest annual price rise of all English regions, with prices in the capital up 3.2%, the ONS said.

(Reporting by Suban Abdulla)

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March 22, 2023 0 comments
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Video shows Virginia deputies restraining Black man who died at mental hospital

by Reuters March 22, 2023
By Reuters

By Brendan O’Brien and Brad Brooks

(Reuters) -Virginia sheriff deputies and medical staffers wrestled with a handcuffed Irvo Otieno, a 28-year-old Black man, for several minutes at a state mental hospital before he died, video surveillance shows.

The altercation took place on March 6 as Otieno was being admitted to Central State Hospital in Petersburg, Virginia, according to Dinwiddie County Commonwealth Attorney Ann Cabell Baskervill.

Otieno’s death, which has captured national attention, is the latest example of a Black man dying during a violent encounter with law enforcement.

Police have arrested and charged three former employees of the mental health hospital and seven sheriffs deputies of Henrico County, Virginia, with second-degree murder in Otieno’s death. Most of the deputies and hospital employees involved in the case are also Black. A grand jury on Tuesday formally indicted the ten people charged.

The video, a download link of which was made available in court documents, shows about six officers carrying Otieno into a room. He appeared to struggle as he was put on the ground. At times as many as 10 deputies and hospital workers held him down while his legs were shackled and his arms were held behind his back. Another six deputies and medical staffers were in the room watching the encounter.

Later the video shows Otieno slumped over and motionless. Officers turned him over and began chest compressions. They brought in a defibrillator machine and attempted to revive him. When it is clear Otieno was dead, a lone healthcare worker draped a white sheet over his lifeless body.

The family, who viewed the surveillance video last week, said during a Tuesday evening press conference with their attorney, the civil rights lawyer Ben Crump, that a mental health crisis should not be a “death penalty.”

“Ivor was my baby. He was special, he was caring, he was loving,” said Caroline Ouko, Ivor’s mother. “Those ten monsters, those ten criminals, I was happy to hear they were indicted. But that is just the beginning step. We will achieve justice for Ivor.”

A preliminary report by medical examiners said Otieno, who immigrated to the U.S. from Kenya when he was four years old, died of asphyxiation. Prosecutors say they were told he was restrained during the intake process because he was “combative.”

But Crump said the video clearly showed Otieno in handcuffs and leg shackles, and questioned why it was necessary for multiple officers to smother him as he was already restrained.

Officials have not ruled out making more charges or arrests.

Authorities have not said why Otieno was taken into custody or why he was being transferred to the mental health facility, which is located about 25 miles (40 km) south of Richmond.

The deputies were placed on administrative leave and the Henrico County sheriff’s office is conducting an independent investigation into the incident. The department did not respond to requests for comment on Tuesday.

Otieno’s death comes after the high-profile police brutality case in January involving some Memphis police officers, who beat Tyre Nichols after a traffic stop. Nichols died after enduring punches and kicks.

(Reporting by Brendan O’Brien in Chicago and Brad Brooks in Lubbock, Texas; Editing by Josie Kao and Chris Reese)

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March 22, 2023 0 comments
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Computing networking pioneer Metcalfe wins top industry prize

by Reuters March 22, 2023
By Reuters

By Stephen Nellis

(Reuters) – Computing networking pioneer Bob Metcalfe on Wednesday won the industry’s most prestigious prize for the invention of the Ethernet, a technology that half a century after its creation remains the foundation of the internet.

The Ethernet is the standard connection for everything from servers inside data centers to telecommunications networks.

The Association for Computing Machinery credited Metcalfe, 76, with the Ethernet’s “invention, standardization, and commercialization” in conferring its 2022 Turing Award, known as the Nobel prize of computing. It comes with a $1 million prize thanks to backing from Alphabet Inc’s Google.

The Ethernet got its start when Metcalfe, who later went on to co-found computing network equipment maker 3Com, was asked to hook up the office printer.

In the early 1970s, he worked at Xerox’s Palo Alto Research Center, which had invented the personal computer and also a laser printer. Metcalfe sketched out a networking approach that would excel at connecting them together in way that could expand smoothly as the number of computers in the network rose – which helped pave the way for the internet.

Metcalfe, who graduated from the Massachusetts Institute of Technology in 1969 and earned a doctorate in computer science from Harvard in 1973, told Reuters in an interview that there is still much research to be done in connecting computers, especially in artificial intelligence.

Metcalfe said previous generations of AI “died on the vine because of a lack of data.” That is no longer a problem thanks to the billion-plus people generating data by using the internet, but the challenge now is to better connect the computers that process that data through artificial neural networks.

Those networks loosely approximate the human brain, except that in a human brain, neurons have more than 10,000 connections each, while their artificial counterparts have far fewer.

“You can either increase the compute power of the neurons, or you can connect them better. And the brain teaches us that connecting them is where it’s at,” Metcalfe said.

The vast room for improvement in connecting neural networks “is cause for optimism on the future of AI, which I think will continue scaling,” he added.

(Reporting by Stephen Nellis in San Francisco; Editing by Edwina Gibbs)

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March 22, 2023 0 comments
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Multiple Vehicle Thefts Reported in Cambridge, Police Seek Community Assistance

by Jeff Jones March 22, 2023
By Jeff Jones

CAMBRIDGE, MD – Between Friday and Monday, Cambridge Police Department (CPD) received several reports of motor vehicle thefts in the area. In most cases, the vehicles were secured, but there was evidence of tampering with door handles and steering columns.

CPD is urging vehicle owners to ensure their cars are locked and not left running unattended. They are also seeking assistance from the community to identify suspects involved in the thefts.

Anyone with information can call the Cambridge Police Department at 410-228-3333, and all calls can remain anonymous.

March 22, 2023 0 comments
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Marcos says new military bases with US to be ‘scattered’ around the Philippines

by Reuters March 22, 2023
By Reuters

By Neil Jerome Morales

MANILA (Reuters) – President Ferdinand Marcos Jr said on Wednesday that four new military bases under a defense agreement with the U.S. would be located in various parts of the Philippines, including in a province facing the South China Sea.

Last month, Marcos granted the U.S. access to four sites, on top of five existing locations under the 2014 Enhanced Defense Cooperation Agreement (EDCA), which comes amid China’s growing assertiveness in the South China Sea and towards Taiwan.

“There are four extra sites scattered around the Philippines – there are some in the north, there are some around Palawan, there are some further south,” Marcos told reporters at the sidelines of the Philippine army’s founding anniversary.

The EDCA allows U.S. access to Philippine bases for joint training, pre-positioning of equipment and building of facilities such as runways, fuel storage and military housing, but it is not a permanent presence.

The Philippines and the U.S. would announce the locations of the bases soon, Marcos said, adding the sites would boost the country’s ability to defend the “eastern side” of its largest island, Luzon. Luzon is the closest main Philippine island to self-ruled Taiwan that China claims as its own.

China’s foreign ministry on Wednesday reiterated its stance that the U.S. side was increasing tensions by strengthening its military deployments in the region, adding countries should be “vigilant” and avoid being used by the U.S..

“We generally believe that defence cooperation between countries should be conducive to regional peace and stability, and should not be aimed at third parties or harm the interests of third parties,” spokesperson Wang Wenbin told reporters at a regular news briefing.

A former Philippine military chief has publicly said the U.S. had asked for access to bases in Isabela, Zambales and Cagayan, all on the island of Luzon, facing north towards Taiwan, and on Palawan in the southwest, near the disputed Spratly Islands in the South China Sea.

Some leaders of local governments at the potential EDCA sites have opposed Marcos’ decision, worried they would be dragged into a conflict if one arose between the U.S. and China over Taiwan.

But Marcos said his government has discussed with them the importance of the expanded U.S. access and “why it will actually be good for their provinces”.

Washington has committed $80 million worth of infrastructure investments at the five existing sites – the Antonio Bautista Air Base in Palawan, Basa Air Base in Pampanga, Fort Magsaysay in Nueva Ecija, Benito Ebuen Air Base in Cebu and Lumbia Air Base in Mindanao.

Speaking before Philippine troops, Marcos told them to be vigilant as the external threat to security was becoming more “complex” and “unpredictable”.

“Be vigilant against elements that will undermine our hard earned peace, our hard earned stability, continue to improve relations with your counterparts overseas,” Marcos said.

Without giving specifics, Marcos said he was aware of an “emerging threat” to his country’s territory, which he said would require “adjustments in our strategy”.

“The external security environment is becoming more complex. It is becoming more unpredictable,” Marcos said.

(Writing by Karen Lema; Editing by Ed Davies and Himani Sarkar)

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March 22, 2023 0 comments
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Arkansas enacts law restricting school bathroom use by transgender people

by Reuters March 22, 2023
By Reuters

(Reuters) – Arkansas Governor Sarah Huckabee Sanders on Tuesday signed a law targeting the trans community, prohibiting transgender people from using the restroom that matches their gender identity at public schools.

The bill signed by the Republican governor, who describes herself as a conservative reformer, applies to multi-person restrooms and locker rooms at public schools and charter schools serving prekindergarten through grade 12.

The law requires schools to provide reasonable accommodations, that include single-person restrooms and changing areas. School authorities that violate the law can face fines of at least $1,000, and parents can also file lawsuits to enforce the measure.

“The governor has said she will sign laws that focus on protecting and educating our kids, not indoctrinating them and believes our schools are no place for the radical left’s woke agenda,” Alexa Henning, a spokesperson for Sanders, told Reuters in a statement.

“Arkansas isn’t going to rewrite the rules of biology just to please a handful of far-left advocates.”

Similar laws directed at transgender youth have been enacted in Alabama and Oklahoma.

Republican legislators across the United States have escalated a campaign to ban certain healthcare for transgender youth, in some cases seeking to charge parents and doctors with child abuse if they provide treatment.

(Reporting by Juby Babu in Bengaluru; additional reporting by Kanjyik Ghosh)

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March 22, 2023 0 comments
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Austrian minister says Russia will remain important for Europe

by Reuters March 22, 2023
By Reuters

By John O’Donnell and Alexandra Schwarz-Goerlich

VIENNA (Reuters) – Russia will always remain important for Europe, Austria’s foreign minister said, saying that to think otherwise was delusional.

Alexander Schallenberg also defended the country’s second-biggest bank, Raiffeisen Bank International, saying it was unreasonable to single out the lender for doing business in Russia while so many other Western firms did the same.

“To think that there won’t be Russia anymore and we can decouple in all areas is delusional,” Schallenberg told Reuters, adding that while Austria would loosen ties this “can’t happen overnight”.

“Dostoyevsky and Tchaikovsky remain a part of European culture, whether we like it or not. It will continue to be our biggest neighbour. It will stay the second largest nuclear power in the world.”

Austria, which has modelled itself as a bridge between east and west, turning its capital of Vienna into a magnet for Russian money, is also part of a wider Western alliance that has sanctioned Russia after its invasion of Ukraine.

Austria still imports Russian gas although it is seeking to reduce it over the coming years.

Some Austrian officials, however, harbour hopes for a quick conclusion to the war and a return to more normal relations with Russia, people familiar with the matter said.

Schallenberg made his comments after the U.S. sanctions authority launched an inquiry earlier this year into Raiffeisen over its business related to Russia, increasing scrutiny of the Austrian lender.

Raiffeisen is deeply embedded in Russia and is one of the only two foreign banks on the Russian central bank’s list of 13 systemic institutions, underscoring its importance to Russia’s economy, which is grappling with sweeping Western sanctions.

A Russian scheme to grant loan payment holidays to troops fighting in Ukraine, which Raiffeisen participated in, also triggered sharp criticism by investors.

Schallenberg said it was for Austria to enforce sanctions and pointed the finger at other Western banks doing business in Russia. “Austrian companies have to stick to Austrian rules, part of which are the European Union sanctions.”

“Let’s get real,” he said. “91% of Western companies are still in Russia and doing what is sensible: waiting, containment, ring fencing.”

“There are enough American banks, one with the name Bank of America, present in Russia,” said Schallenberg. “The list is a ‘who’s who’ of the Western banking world.”

A spokesperson for Bank of America said: “Our activities are focused on compliance with all sanctions.”

Schallenberg said he favoured enforcement of existing European sanctions over introducing further measures.

“It is a very blunt weapon,” he said. “We’ve had massive sanctions packages. Give them time to work.”

(Writing by John O’Donnell; Editing by Alison Williams)

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March 22, 2023 0 comments
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Japan cuts view on industrial output, vigilant on market volatility

by Reuters March 22, 2023
By Reuters

TOKYO (Reuters) – Japan’s government cut its assessment of the strength of industrial production for the first time in three months in March, pointing to weakening demand in the global semiconductor industry.

Its overall assessment of the economy was unchanged in the monthly economic report, however.

Amid lingering concerns about stress in the world’s banking system, the government retained a vigilant stance in relation to economic effects of financial market fluctuations.

Issued by the Cabinet Office, the report said industrial production had weakened recently because the global semiconductor industry had faced a deteriorating market and was therefore buying less fabrication equipment. Japan makes such equipment.

That assessment of industrial production represented the first downgrade since December. Previously, the government had said the recovery trend of industrial production was stalling.

Saying consumer and capital spending were recovering, the government retained its previous overall view of the economy, which it said was “recovering moderately”, though there was some weakness.

The government said it would need to pay full attention to effects of “price increases, supply constraints and financial and capital market volatility.”

Corporate profits were improving overall, but the pace of recovery had become moderate, the report said, pointing to raw-material price increases weighing on some manufacturers. That was the first downgrade in the assessment of corporate profits since April 2020, contrasting with the previous description of them “improving as a whole but with some weakness”.

The government has allocated more than 2 trillion yen ($15 billion) from reserve funds in the fiscal year to March 31 to cushion effects of rising inflation. Measures will include fresh cash payouts to low-income households and subsidies to curb personal electricity bills.

The report said the government expected the Bank of Japan to achieve its price target, based on an assessment of economic activity, prices and financial conditions.

Incoming governor Kazuo Ueda will join the BOJ next month when incumbent Haruhiko Kuroda’s term ends, but a global financial market rout this month has complicated his task of smoothly ending the country’s ultra-low interest rate policy.

(Reporting by Kaori Kaneko; Editing by Bradley Perrett)

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March 22, 2023 0 comments
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Explainer-What are e-fuels, and can they help make cars CO2-free?

by Reuters March 22, 2023
By Reuters

By Victoria Waldersee and Kate Abnett

BERLIN/BRUSSELS (Reuters) – Germany has declared last-minute opposition to a landmark European Union law to end sales of CO2-emitting cars in 2035, demanding that sales be allowed of new cars with internal combustion engines after that date if they run on e-fuels.

The EU rules would require all new cars sold from 2035 to have zero CO2 emissions, making it effectively impossible to sell new fossil fuel-powered cars.

The law – which Germany, alongside a majority of EU countries and lawmakers, previously supported – would not ban internal combustion engines (ICEs).

But it is seen as a death knell for the technology because of a dearth of options that could enable ICE cars to operate without producing CO2.

Here’s what you need to know.

WHAT ARE E-FUELS?

E-fuels, like e-kerosene, e-methane, or e-methanol, are made by synthesizing captured CO2 emissions and hydrogen produced using renewable or CO2-free electricity. 

The fuels release CO2 into the atmosphere when used in an engine. But the idea is that those emissions are equal to the amount taken out of the atmosphere to produce the fuel – making it CO2-neutral overall.

Germany and Italy want clearer assurances from the EU that sales of new ICE cars can continue beyond 2035, if they run on CO2-neutral fuels.

WHO MAKES THEM?

Most major carmakers are betting on battery-electric vehicles – a technology that is already widely available – as the main route to cut CO2 emissions from passenger cars.

But suppliers and oil majors defend e-fuels, as well as a number of carmakers who don’t want their vehicles weighed down by heavy batteries.

E-fuels are not yet produced at scale. The world’s first commercial plant opened in Chile in 2021, backed by Porsche and aiming to produce 550 million litres per year. Other planned plants include Norway’s Norsk e-Fuel, due to begin producing in 2024 with a focus on aviation fuel.

CAN E-FUELS CLEAN UP CARS?

E-fuels can be used in today’s ICE vehicles and transported via existing fossil fuel logistics networks – good news for ICE component makers and companies which transport petrol and diesel.

Supporters say e-fuels offer a route to cut the CO2 emissions of our existing passenger car fleet, without replacing every vehicle with an electric one.

Critics highlight that manufacturing e-fuels is very expensive and energy-intensive. Using e-fuels in an ICE car requires about five times more renewable electricity than running a battery-electric vehicle, according to a 2021 paper in the Nature Climate Change journal.

Some policymakers also argue that e-fuels should be reserved for hard-to-decarbonise sectors such as shipping and aviation – which, unlike passenger cars, cannot easily run on electric batteries.

WHAT NEXT FOR THE EU LAW?

Days before the final vote on the EU law, which was scheduled for March 7, German Transport Minister Volker Wissing called into question Germany’s support for it.

That has put one of Europe’s core climate change policies on hold – and surprised other policymakers, because EU countries and lawmakers had already agreed the law last year.

Alongside Germany and Italy, countries including the Czech Republic and Poland have expressed concerns about the law, raising the possibility of enough support to block it.

But other EU lawmakers and diplomats warn that allowing one country to torpedo an already-agreed law would endanger other carefully negotiated deals on EU policies.

Free Democratic Party member Wissing said the use of e-fuels should remain possible after 2035, and a promised European Commission proposal on this was still missing.

In response, the European Commission has drafted a proposal, seen by Reuters, to allow carmakers to register new cars in the EU that can run on climate neutral e-fuels only. That could be a first step towards allowing their sale after 2035.

The draft proposal said vehicles must use technology that would prevent the car from starting if it used non-carbon-neutral fuels.

The International Council on Clean Transportation said it was doubtful technologies would be able to sense whether a vehicle is operating on pure e-fuels or a blend with fossil fuels – since e-fuels have very similar properties to the fossil fuels they are designed to replace.

An EU official told Reuters any new proposal would be made only after countries approve the combustion engine phaseout. Germany’s Transport Ministry said it was examining the draft proposal.

WHAT DO COMPANIES WANT?

Big auto component suppliers in Germany such as Bosch, ZF and Mahle are members of the eFuel Alliance, an industry lobby group, as are oil and gas majors from ExxonMobil to Repsol.

Carmakers such as Piech, Porsche and Mazda are broadly supportive of the technology. Porsche holds a stake in e-fuel producer HIF Global. 

BMW has invested $12.5 million in e-fuel startup Prometheus Fuels, while also investing billions in battery-electric technology.

Other carmakers including Volkswagen and Mercedes-Benz are betting on battery-electric vehicles to decarbonise. Volvo and Ford this week urged EU countries not to row back on the 2035 phaseout of new petrol and diesel cars.

(Reporting by Kate Abnett, Victoria Waldersee, Markus Wacket; editing by Jason Neely)

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March 22, 2023 0 comments
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Fox faces skeptical judge in Dominion defamation suit

by Reuters March 22, 2023
By Reuters

By Jack Queen and Helen Coster

WILMINGTON, Delaware (Reuters) -Lawyers for Fox Corp faced a skeptical judge on Tuesday as they sought to block a $1.6 billion defamation lawsuit by Dominion Voting Systems from going to trial, while the voting-technology company accused Fox News of knowingly airing vote-rigging claims that the network knew were false.

Both sides made presentations during a hearing in Wilmington before Delaware Superior Court Judge Eric Davis, asking him to rule in their favor on various legal questions rather than proceeding to a full trial scheduled to start on April 17.

The judge peppered a Fox lawyer with questions about its defense against Dominion’s assertion that the network knew that allegations by former President Donald Trump and his lawyers of vote-rigging in the 2020 U.S. election were false but continued putting the claims on the air anyway in pursuit of ratings.

Dominion argues that this meets the “actual malice” standard to win a defamation case under which a plaintiff must prove a defendant knowingly spread false information or acted with reckless disregard for the truth. Fox lawyer Erin Murphy disagreed.

Fox’s lawyers also invoked the legal doctrine of “neutral reportage,” which holds that the press cannot be held liable for publishing newsworthy allegations in a neutral way.

Davis said there was tension between Fox’s arguments on “actual malice” and “neutral reportage.”

“To me, it doesn’t seem intellectually honest that you apply actual malice and say there’s neutral reporting privilege,” Davis said, adding: “How can you be neutral if you’re knowingly doing false things?”

Murphy sought to provide context for the defamatory statements alleged by Dominion and argued that reasonable viewers understood that the claims aired on Fox News were mere allegations. The Fox News statements cited by Dominion included a Twitter post by former Fox Business host Lou Dobbs that included pro-Trump hashtags.

“You’re saying he’s a neutral reporter?” Davis asked Murphy, who responded that Dobbs was not being neutral in his support for Trump but did not write the hashtag #DominionVoterFraud.

Dominion sued Fox Corp and Fox News in 2021, accusing them of ruining its reputation by airing false claims by Trump and his lawyers that the Denver-based company’s voting machines were used to rig the outcome of the election against him and in favor of Democrat Joe Biden. Fox has argued that coverage of these claims was inherently newsworthy and protected by the U.S. Constitution’s First Amendment guarantee of press freedom.

It is one of the most closely watched defamation cases involving a major U.S. media organization in years, pitting the influential cable news network that features conservative commentators against a company that claims Fox’s coverage destroyed its business.

Both sides are seeking summary judgment – asking the judge to decide the case in their favor before it goes to a jury trial. Davis said he does not plan to rule from the bench and will issue a written opinion sometime later. The hearing is due to resume on Wednesday.

‘RELEASE THE KRAKEN’

In their presentation to the judge, Dominion’s lawyers said internal Fox communications prove that the network repeatedly hosted guests who it knew were peddling “reckless” and “completely crazy” falsehoods because it was losing viewers to far-right media competitors.

“They chose to let the story be out there – to let out the hoax, to release the Kraken,” lawyer Rodney Smolla said, referring to a nickname for Sidney Powell, who was a lawyer for Trump. “And why? Because Fox viewers were abandoning Fox.”

Davis seemed particularly interested in whether 20 allegedly defamatory statements cited by Dominion were facts, opinions or a mix of the two. He also sought clarity on Dominion’s legal theories. 

“Are you saying that Fox adopts Trump’s statements just because the president said at a press conference that the election was a hoax?” Davis asked.

Lawyer Justin Nelson answered no, saying Dominion’s allegation is that Fox knew Trump’s lawyers were going to make false claims but hosted them on its shows anyway.

Separately, a Fox News producer filed a lawsuit on Monday accusing the network’s lawyers of pressuring her to provide misleading testimony in the Dominion case.

Abby Grossberg, who was head of booking for Fox News host Tucker Carlson, said coaching and intimidation by Fox lawyers before her deposition left her “feeling pressured not to name names or to implicate others, in particular prominent male on-air personalities and Fox News executives.”

Fox said in a statement on Tuesday that Grossberg’s “allegations in connection with the Dominion case are baseless and we will vigorously defend Fox against all of her claims.”

(Reporting by Jack Queen in Wilmington and Helen Coster in New York; Editing by Will Dunham and Amy Stevens)

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March 22, 2023 0 comments
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New Jersey News

Southern Shore Lawmakers Say Unprecedented Whale and Dolphin Deaths Warrant Suspension of Offshore Wind Projects

by Press Release March 22, 2023
By Press Release

Senator Michael Testa, Assemblyman Antwan McClellan, and Assemblyman Erik Simonsen are intensifying calls to suspend offshore wind projects following an unprecedented number of dolphin deaths on a beach in Sea Isle City.

Southern Shore Lawmakers Say Unprecedented Whale and Dolphin Deaths Warrant Suspension of Offshore Wind Projects

Sen. Michael Testa, Asm. Antwan McClellan, and Asm. Erik Simonsen are intensifying calls to suspend offshore wind projects following an unprecedented number of dolphin deaths on a beach in Sea Isle City. (Pixabay)

“It has been clear for a long time that Gov. Phil Murphy’s irrational green energy goals, facilitated by offshore wind projects, may pose significant risks to marine life. Since January, New Jersey has recorded an alarming number of whale deaths, and just earlier today, eight dolphins died after washing ashore in Sea Isle City. While the DEP claims there is no link between wind farms and damage to marine life, the logical thing to do would be to pause all offshore wind projects until we have more data,” said Testa (R-Cumberland). “In addition to the health and safety of marine life, our coastal communities and the thriving commercial fisheries rely upon a healthy and safe ocean and these projects pose an unnecessary risk to that. Until the proponents can assure our region that these projects are not playing a part in these incidents, it would be wise to suspend the work.”

Despite the incidents, Gov. Murphy continues his aggressive green energy goals, which calls for increasing offshore electric wind generation to 11,000 megawatts by 2040. To date, several offshore wind projects have been approved by the state Board of Public Utilities. One would add 98 wind turbines in Ocean and Cape May counties and others could produce as many as 350 along Atlantic County’s shoreline.

“Once again, Gov. Murphy is putting his radical green agenda before the safety of marine life and the jobs of fisherman and entrepreneurs,” added McClellan (R-Cape May). “Work related to offshore wind projects is the primary difference in our waters and an investigation should be done as to why whales and dolphins are dying in alarming numbers.”

Simonsen echoed calls for a moratorium, saying, “The only change in our waters recently has been the start of survey work for the construction of offshore wind farms—which seems like an awfully big coincidence to ignore. Our marine life must be safeguarded before any further progress can be made.”

March 22, 2023 0 comments
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Pets and AnimalsViral Videos

How This Puggle Lost Half Her Body Weight | The Dodo

by Jessica Woods March 22, 2023
By Jessica Woods

Just… wow 👏

Keep up with Bertha’s progress on Instagram: http://thedo.do/bertha_gets_bitty.

Special thanks to the team at Steel City K9 Rehab, you can check them out on Instagram: http://thedo.do/steelcityk9rehab.

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March 22, 2023 0 comments
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Pets and AnimalsViral Videos

Rescue Dog Stayed in Her Crate For Five Days Until She Realized She Was Home | The Dodo

by Jessica Woods March 22, 2023
By Jessica Woods

Rescue dog was too scared to leave her crate for 5 days — now she hugs her mom and dad with her whole body ❤️

To keep up with Mavyn, follow along on TikTok https://thedo.do/mayvnTT!

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March 22, 2023 0 comments
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Pets and AnimalsViral Videos

Cat Joins His Best Friend During His Daily Walk | The Dodo

by Jessica Woods March 22, 2023
By Jessica Woods

Neighborhood cat crashes these two dogs’ walk every day — then he follows them into their house… ❤️

Keep up with Hilarie on TikTok: https://thedo.do/englishbulldogemmie, Instagram: https://thedo.do/Englishbulldogemmie, and YouTube: https://thedo.do/englishbulldogEmmie.

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March 22, 2023 0 comments
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