Business

Argentina’s Left stages ‘March of Anger’ over Milei’s austerity measures | Business and Economy News

Thousands of protesters took to the streets of Buenos Aires for the ‘March of Anger’, organised largely by left-wing groups opposing the Milei government’s austerity policies. Protesters say the cuts are hurting working families.

Source link

Many Venezuelan immigrants shun Florida and turn to smaller cities in Utah, elsewhere

Snow-covered mountains ringing a valley of wide, free-flowing roads remind Venezuelan transplants that the growing suburbs south of Salt Lake City offer what Miami can’t.

One million Venezuelans were released into the United States after crossing the Mexican border during a record immigration surge, and many shunned Miami and other longtime immigrant footholds for smaller places with less established communities — a pattern found in an exclusive Associated Press analysis of federal data from fall 2018 to summer 2025.

These cities and towns promised better jobs, cheaper homes, less traffic and higher quality of life, outweighing Florida’s allure of tropical weather and ease of getting by on Spanish alone.

Enrique Vera, 32, crossed the border in Yuma, Arizona, in 2021 and went to Miami to settle with his mother, who’d been there six years. But he found Florida untenable, he told AP — “the work, the conditions, the low pay.”

After less than two weeks there, Vera and his mother accepted a cousin’s invitation to Utah. In the southern suburbs, with massive new housing tracts and pristine shopping centers, Vera found factory work but soon quit to turn a hobby baking for co-workers into his own business. Today he employs 15 people — many, like him, asylum seekers — at a warehouse and two bakeries.

Utah — known as a relatively immigrant-friendly state despite deep Republican roots and support for President Donald Trump — became a top destination for Venezuelans crossing the border, along with parts of the Chicago, Denver, Atlanta, Dallas and Houston metro areas, AP’s data show. Venezuelans also went to smaller cities including Madison, Wisconsin; Albuquerque, New Mexico; and Savannah, Georgia.

It’s a pattern playing out across the U.S.: Some Cubans eschewed Florida and went to Louisville, Kentucky, and Odessa, Texas; Colombians chose the Boston and Denver areas; and Paterson, New Jersey, was the top pick among Peruvians.

These communities have both benefited from the influx of people and struggled to integrate their new arrivals.

Venezuelans stand out for their sheer numbers. About 8 million people, or one-fourth of the country’s population, have fled since 2014, many to the United States. About 30,000 of the 1 million released into the U.S. in AP’s data said they were going directly to Utah.

For Venezuelans in Utah, Trump’s deportation drive has instilled widespread fear

Despite the growing population here, there are few Venezuelan flags, bumper stickers or displays of patriotism on the bustling commercial strips of Midvale, an older suburb of about 40,000 people at the interchange of two highways. Signs are generally in English. The Venezuelan population has mixed in with the largely white population as new houses, malls, office parks and warehouses have gobbled up barren hillsides to meet demand for cheaper land.

President Donald Trump’s immigration crackdown instilled fear and made Venezuelans less visible since 2023, when arrivals peaked in Utah and in the United States as a whole. Everyone here seems to know someone who returned to Venezuela voluntarily because they feared being detained and deported or because they lost their work authorization.

In May 2025, Alberto Salcedo opened the parking lot of his Centro de Apoyo Familiar Church to Venezuelan food trucks. The asylum-seeking evangelical pastor dreamed of creating a vibrant gathering spot for Venezuelan immigrants. Nearly 20 vendors and 5,000 visitors came each week, he said, with trucks serving empanadas, arepas, even burgers and sushi. But that dropped down to maybe five vendors and a few hundred people. The fear of deportation is real, he said.

Restaurant owner Fidel Arrieta said it’s affected his business, too. He opened Arempa’s, his first restaurant in downtown Salt Lake City in 2019, drawing non-Latino customers and Venezuelan immigrants alike. Arempa’s — where the walls are filled with photos of Venezuelan waterfalls, an image of Mona Lisa eating an arepa and Miss Venezuela portraits — grew to five restaurants. But three closed in the last year as business slowed.

Arrieta’s wife — co-owner Sandy Arrieta — wanted to stay open. But he believes nothing will turn around while Trump’s in office.

“Until the government changes, the problems will not end,” said Fidel, 65, who immigrated in 1994.

For proof of the growing Venezuelan population, look no further than Utah’s churches

In 2001, Gregorio Rausseo immigrated to Utah, knowing no one. Fast-forward more than two decades, to 2023: Rausseo had just started as pastor at Saint Therese of the Child Jesus Church and was ready for the annual celebration of the patron saint of Zulia, an oil-rich Venezuelan state that includes Maracaibo, the country’s second-largest city. He was shocked to see more than 1,000 parishioners snake into the lobby and parking lot.

“I asked the deacon, ‘All of them are Venezuelan?’ He said … ‘They are all Maracuchos,’” a term for someone from Maracaibo.

Today, Rausseo estimates about 40% of his church’s more than 700 families are Venezuelan immigrants.

Carlos Trujillo, a 42-year-old lawyer who handles immigration cases, puts Venezuelan immigrants in three categories: those who came for the Church of Jesus Christ of Latter-day Saints; those who came to join family or friends; and those who came knowing no one. He has repeatedly heard variations of, “This is a place where I can bring my family and have a start.”

Trujillo — who immigrated in 2001, as an 18-year-old whose parents decided he would do better living with family closer to the Mormon church headquarters — said his firm has about 1,700 immigration cases, with staff fielding calls in a large room resembling a call center.

Many of the Venezuelans here came after COVID hit, flying to the Mexican border before January 2022, when Mexico tightened travel restrictions for Venezuelans. That prompted hundreds of thousands to walk through the Darien Gap, a jungle in Panama and Colombia, on a grueling journey through at least eight countries.

Ashly Estupinan, 18, walked the jungle with her grandmother. In Mexico, they used the appointment app CBP One to enter the U.S. in San Diego. Trump ended CBP One on his first day in office, two years after his predecessor, Joe Biden, started it and let more than 900,000 people come legally with two-year permits.

Estupinan, who graduated high school this spring, and her grandmother chose Utah because her uncle was there. “It’s very tranquil, very pretty, the people are very friendly,” she said.

Word of mouth and family advice brought many to Utah

Juan Gonzalez, 41, a cook at Arempa’s, walked the jungle for four days with his brother — passing corpses, he said — before eventually crossing the U.S. border in Texas. He went to Utah on the advice of a distant cousin.

“He had gone to other states, and Utah struck him as the best one,” Gonzalez said, noting he’s drawn to the state’s “strong economy.”

Many Venezuelan immigrants here work in food service — at restaurants or selling meals from their homes. Some proudly noted that a local Walmart now stocks special flour for arepas.

Others cycle through low-wage jobs: construction, nail salons, warehouse and factory work.

Gonzalo Rodriguez, 39, worked as a laborer, carpenter and office manager before rising to general manager of Fillerup Employment Services, a construction company. He said it had about 25 Venezuelans in its workforce of about 300 when he arrived in 2020. By 2022, that grew to 165.

At one point, Rodriguez said, Venezuelans camped in tents on the sidewalk at the company’s office park in suburban Sandy, waiting for work and accepting food while migrant shelters were full.

Julio Gonzalez, 33, climbed company ranks from laborer to human resources manager after crossing the border in 2021 with his wife and son, then 9, in Del Rio, Texas. A friend in Utah told him it was a good place to live. Many here agree, saying they’ve felt no pervasive racism in Utah.

It was a welcome change for Gonzalez, who said he lived in Panama for six years under anti-Venezuelan xenophobia that prompted his move to the United States.

Hector Escalona, 42, also started in construction at Fillerup, then opened a barber shop in 2022. He now has 27 barber chairs at three shops, and many employees are Venezuelan. He said he’s expanding his business even with uncertainty about his asylum case.

Others have had less financial success.

Adaya Amaya, 47, ran a catering business from her home and now operates a food truck but barely gets by. She crossed the border in 2021 with her daughter, now 9, and father, now 74. They relied at times on a food bank. She knows other Venezuelans who’ve slept in their cars.

Her father gave up his asylum claim in June to return to Maracaibo because he didn’t want to burden her.

Some wonder: Is goodwill toward immigrants cooling in Utah?

In the 2024 election, Trump — and his immigration enforcement campaign messages — won Utah by 22 points. The same year, Carlos Moreno, who won asylum after fleeing Venezuela in 2009, was elected to the Salt Lake County Council.

The state’s immigrant-friendly reputation is tied to the Utah Compact, a 2010 document signed by hundreds of local governments, businesses and civic leaders that endorses “common-sense immigration reforms that will strengthen our economy, as well as attract talent and business to our state.”

But Trujillo, the immigration attorney, said goodwill cooled during the Biden-era immigration surge and some elected leaders who were allies became more guarded in public comments.

Gov. Spencer Cox called the Venezuelan Tren de Aragua gang “a growing threat in Utah” in 2024, but few major crimes in the state have been linked to the group.

Venezuelan immigrants repeatedly told AP that a small minority of their own are their worst enemies — not just those who commit crimes but those who drink in public, play loud music and repair cars in the street. They say that while some of that behavior may be accepted in Venezuela, they must adopt local norms.

“It makes me angry,” said Joiren Rangel, who arrived in 2018 and worked at an Amazon warehouse before opening two Venezuelan restaurants, one of which closed last year. “We saw that we were in a different country and had to abide by the rules. In Venezuela, I would drive with my daughter seated on my lap. I would never do that here.”

Many here are still waiting on their asylum cases

Some asylum seekers were told to wait 10 years for an initial appointment in 2023, but the government has moved aggressively to winnow the backlog. Still, about 500,000 Venezuelans have pending cases in immigration court, more than any other nationality.

Loreana Pachano, who spent much of her childhood in Miami, has been waiting 10 years for an asylum interview. She was increasingly impatient but now wonders whether she might do better if her case remains open until after Trump leaves office.

She and her husband settled in Florida but tired of long commutes and anti-Venezuelan sentiment. They moved to Utah after a friend told her that construction wages were significantly higher. “If we had to start from scratch, how about we start from scratch somewhere else?” she remembers thinking.

Now a real estate agent, she sells houses to asylum seekers who crossed the border and has seen the impact of Trump’s policies — for example, a bank closing on a house that a Venezuelan client gave up because she lost work authorization when Trump ended Temporary Protected Status for more than 600,000 Venezuelans.

“It feels like we’re building on quicksand. We’re trying to build a future here for ourselves, for our kids,” said Pachano, who flips homes and owns trucking and construction businesses with her husband while raising their 3- and 7-year-old daughters.

“Are we going to be here by the time we reach retirement age? We don’t know. You don’t know when the rug is going to be pulled right under your feet.”

Spagat writes for the Associated Press. AP reporter Aaron Kessler contributed to this report.

Source link

‘Culture shift’ needed in how UK does business, Andy Burnham urges

The UK needs a “culture shift” in how it does business, Andy Burnham has said ahead of a meeting with some of Britain’s biggest bosses.

The prime minister said those who take risks in business should be backed by government and local leaders should have the power to work with companies.

The Labour government has been criticised for increasing costs for firms, such as with the employer national insurance and minimum wage changes under Burnham’s predecessor Sir Keir Starmer.

The meeting comes as Chancellor John Healey prepares for his first Budget next month, with rising borrowing costs in recent weeks adding to the pressure on government finances.

Downing Street said Burnham will meet the chief executives of BP, Shell, HSBC, Morrisons, Sainsbury’s, BT, Vodafone, Rolls-Royce and several others at Number 10.

Ahead of the meeting, Burnham said he would give people “the confidence that if they have a great idea, they’ll get all the support they need to bring it to life”.

“When local leaders have the tools to get things done and government works in partnership with business, you can pull in investment, create jobs and transform communities,” he said.

He added the government would be “a partner for growth to make every part of Britain better off”.

Burnham will host a reception for the business community where local leaders are invited before a private engagement with senior chief executives at Downing Street on Monday evening.

The meeting comes as higher borrowing costs in the UK and other countries present problems for governments looking to spend money on business support or investment.

Separately, hundreds of hospitality businesses have written to the prime minister, calling on him to cut VAT for the sector.

More than 800 pub, restaurant and hotel bosses – include celebrity chefs Heston Blumenthal and Tom Kerridge – signed the letter asking for the hospitality VAT rate to be reduced from 20% to 10%.

When he was still Mayor of Greater Manchester, Burnham said he would argue for the tax to be in line with the lower rates seen in other European countries.

Source link

Oil jumps to $105, pushing up chances of a US interest rate increase | Business and Economy News

Prices spiked as attacks on oil tankers escalated in the Middle East.

Oil prices have increased by four percent, with benchmark Brent crude hitting $105 a barrel after the biggest rise in attacks on shipping since the Iran war began spurred trader concerns about further supply disruptions.

Brent crude futures were up $4.05, or four percent, at $105.26 a barrel by 1215 GMT on Thursday. United States oil topped $100 a barrel for the first time since May, as West Texas Intermediate crude futures CLc1 rose $3.99, or 4.15 percent, to $100.04.

Recommended Stories

list of 4 itemsend of list

Brent prices have surged by more than 30 percent from lows touched in early August, as a permanent agreement between the US and Iran to cease attacks never materialised and fighting resumed.

Iran-aligned Houthis seized control of Yemen’s port of Mocha on Thursday, further threatening Red Sea traffic, while Gulf traffic remains restricted through the Strait of Hormuz as tanker attacks in the region have intensified in recent days.

“The recent run-up in prices lays bare the market’s approach: this conflict will last longer than anticipated even a month ago, let alone at the beginning of the summer. If oil supply and exports are diminished, the oil balance remains tight and prices remain elevated,” PVM analyst John Evans said.

Iran said it had attacked 10 ships near the Strait of Hormuz on Wednesday, after the US hit five Iranian oil tankers. Iran’s Islamic Revolutionary Guard Corps said it would escalate its response to any further attacks.

While fears of prolonged and more severe supply disruptions in the Gulf have lifted Brent above $100, analysts say the durability of the rally will hinge on China.

Chinese demand

China, the world’s largest crude importer, has stepped up purchases in recent weeks after months of subdued demand, boosting physical crude markets, ING analysts said in a note.

If Chinese buying continues to recover, it could amplify the impact of any supply disruptions and drive prices higher, while a pullback in imports could temper market gains, ING said.

“For months, the bearish case rested on soft Chinese demand,” said David Jorbenaze, global oil market lead at commodities information provider, ICIS.

Rising oil prices have worsened worries about inflation and cranked up pressure within the bond market, helping to lower stocks again on Wall Street.

The S&P 500 fell 0.6 percent and is on track for a fourth straight loss.

The increase in oil prices has pushed the price for a gallon of regular petrol to an average of nearly $4.28 across the US, according to the American Automobile Association. That is not only costing more at the pump but also through higher prices for all kinds of products that move by truck to store shelves.

Following Thursday’s reports, traders are betting on a close to 70 percent chance the Fed will raise the federal funds rate at its meeting next week. That’s up from the 61 percent probability seen the day before, according to data from CME Group. That’s also despite President Donald Trump’s consistent lobbying for interest rates to go lower rather than higher.

Source link

Special interests spend millions boosting Becerra in governor’s race

Companies and special interest groups with some of the diciest issues expected to land on California’s next governor’s desk are among the top financial backers of Democrat Xavier Becerra, the gubernatorial front runner.

Money from Big Tech, the healthcare industry, labor unions and tribes helped propel Becerra’s bid for governor, which languished at the outset then took off just months before the June primary. All are major players in national and state politics and have a major financial stake on the policies of California’s next governor.

Meta, which has contributed nearly $1.2 million to groups backing Becerra’s campagin, has faced mounting scrutiny by lawmakers and the courts. The Menlo Park-based company, which operates social media and communication platforms such as Facebook, Instagram and WhatsApp, just agreed to a landmark $17.1 billion settlement to resolve multi-state claims that its apps endanger children.

The state Legislature in August also passed a measure to bar social media platforms from providing an “addictive feature” to lure children, as well as bills to shield Californians from threats posed by the boom in artificial intelligence and data centers. The fate of these measures is now in the hands of Gov. Gavin Newsom, and the next governor likely will have to decide whether approve even stricter controls on Big Tech.

Meta is among eight donors that wrote seven-figure checks supporting Becerra’s gubernatrial campaign, with most of he money funneled to independent committees backing the Democrat that are not allowed to legally coordinate with the candidate. Campaigns often find back doors to do so.

Former state Sen. Steve Glazer, a Democrat who ran Jerry Brown’s successful 2010 gubernatorial campaign, said such spending is not surprising.

“Look, millions and billions of dollars are at stake, and the governor is the central point for all of that in California,” Glazer said. “It’s not a gamble anymore. You’re not picking a winner or a loser, right? So the floodgates open up for a runaway winner like Xavier Becerra.”

Becerra, the former secretary of the U.S. Department of Health and Human Services and a longtime congressman, won one of the top two spots in the chaotic June primary. Republican Steve Hilton, a conservative media commentator and strategist who was endorsed by President Trump, won the other slot to advance to the Nov. 3 election. Becerra is considered a heavy favorite to win, given that Democratic voters in California outnumber Republicans nearly 2 to 1.

Becerra has the financial edge in the race, raising at least $30 million while also receiving significant support from the independent committees. Donors have contributed $48.8 million to Becerra’s campaign committee as well as outside efforts supporting his bid, according to a Times analysis of contributions through Sept. 3.

A Becerra spokesman said that although the campaign welcomed support from any donor, he would not weigh their contributions as he makes policy decisions if elected

“Xavier Becerra is laser-focused on making California work for working people — lowering costs, building housing, and making this state affordable again,” said Jonathan Underland, a spokesman for the Democrat. “Anyone willing to stand with us in that fight is welcome to join it, and we won’t hesitate to challenge anyone who gets in the way of that goal.”

His GOP rival raked in $18.8 million, including a $90,100 contribution from the candidate himself. Hilton’s top donors are billionaires and business executives including manufacturer Donald Friese and his wife Andrea, Silicon Valley billionaire Tim Draper, former Fox Corp. Chairman Rupert Murdoch, Google co-founder Sergey Brin, Los Angeles real estate magnate Geoffrey Palmer and the founder of defense contractor Anduril Industries, Palmer Luckey.

Executives and employees at Lighthouse Worldwide Solutions Inc., a company that makes contamination monitoring systems, contributed more than $474,000 to Hilton’s campaign.

A small handful of donors gave to both candidates. Uber and its employees gave nearly $42,000 to Hilton, while the company and an affiliated political action committee spent $1,039,200 supporting Becerra. Vlad Tenev, founder of the financial trading platform Robinhood, gave $289,000 to Becerra and $15,000 to Hilton.

A committee ostensibly established to oppose Hilton, an effort that effectively propped him up among Republican voters before the June primary, raised $2.5 million through large donations from the California Nurses Assn., the Service Employees International Union, the Democratic Governors Assn. and wealthy businessman Bill Bloomfield, an unsuccessful congressional candidate and Republican-turned-Democrat.

Hilton said Becerra’s financial backers are unsurprising and illustrate the “corruption” created by one-party rule in Sacramento.

“All these businesses and organizations assume he’s going to be the next governor, so they’re trying to bribe him,” Hilton said in an interview. “You can call it donations if you want, but it’s actually legalized bribery. … Big business and special interests are shoveling cash into his mouth in the hope that they can bribe him to do their bidding.”

Becerra, who served in public office for nearly 35 years, has a long history of support from powerful industries, labor unions and others with business before the government. During his 24 years in Congress, donors spent roughly $11 million supporting Becerra, according to the Times analysis and Open Secrets, a nonprofit, nonpartisan tracker of campaign fundraising. While he served as California attorney general for four years, contributors spent nearly $9.4 million backing him.

Among the former Biden Cabinet secretary’s top financial backers in the governor’s race are labor unions, healthcare groups, tech companies and Native American tribes that own some of the state’s splashiest casinos. All will probably be affected by decisions made by the next governor.

The Laborers’ International Union of North America and local affiliates and political arms, focused on infrastructure projects and the creation of union jobs, has contributed nearly $3.2 million. A committee associated with the California Assn. of Realtors that is focused on housing, real estate policy and property rights has spent nearly $2.8 million backing Becerra.

The Pechanga Band of Indians chipped in more than $2.3 million to efforts supporting Becerra at a time that gaming issues continue to be scrutinized.

A Pechanga representative said the tribe’s leader was unavailable due to travel but pointed to a statement he made before the primary.

“Secretary Becerra has stood with Indian Country for decades and understands Tribal sovereignty. When tribal healthcare was on the line, he was there,” said Tribal Chairman Mark Macarro. “This experience comes from a lifetime of public service, not a checkbook.”

The California Medical Assn. has spent nearly $1.5 million backing Becerra at a time of deep impending federal healthcare funding cuts and efforts by the state to backfill that lost financial support.

Dr. René Bravo, president of the California Medical Assn., which represents more than 50,000 physicians, said their spending was spurred by the their belief that Becerra is the best candidate to take on impending federal healthcare funding cuts that will harm millions of Californians access to care.

“Xavier Becerra understands healthcare and the challenges facing patients and physicians. The next governor will make critical decisions on MediCal, the physician workforce, affordability and access to care,” Bravo said. “We’re investing in this race because those decisions will directly affect California patients and physicians.”

Meta declined to comment on its contributions, and the Realtors and the Laborers did not respond to requests for comment.

Becerra, asked about the Realtors’ large donations supporting his campaign, noted that most of the money was contributed to committees outside his control. But he argued that his policy priorities have long been clear, including when he was an afterthought in the gubernatorial race.

“I was pretty clear in the primary, where I wasn’t getting as much support from a lot of different folks,” Becerra said Fridayat a news conference in north Long Beach supporting Proposition 1, a proposed $11.25-billion bond measure on the November ballot to boost affordable housing construction around the state.

“What I will tell you is this: Take a look at my record. Take a look at what I’ve said, and rather than look to inflated promises, look at what I’ve done in my record,” Becerra said, standing in front of Laborers’ International Union of North America members clad in orange safety vests. “And I will tell you, I have built, not just as a public servant, but when I was wearing myself that orange vest as a construction worker, as a laborer for Local 185, in my younger years, I was out there helping build. And so what we’re going to do is we’re going to do what we need to do, regardless what the voices say. We’re doing it because the people demand it.”

Fossil fuel and renewable energy firms have also supported Becerra, notably Chevron and affiliated groups and employees, spent more than $1.1 million boosting his bid — money that his Democratic rivals in the governor’s race and other critics, including climate activist Jane Fonda, pounced upon before the primary.

Billionaire hedge fund founder Tom Steyer deployed mobile billboards touting Becerra saying “You need Chevron, I need Chevron,” a clip from a longer comment about how every Californian doesn’t drive an electric car.

Chevron did not respond to a request for comment.

Earlier this year, Becerra was a single-digit polling afterthought in the crowded race to replace Newsom, who is termed-out. But after a dizzying primary that included a potential front-runner, then-Rep. Eric Swalwell (D-Dublin), dropping out amid allegations of rape and sexual assault, Becerra took the lead in the Democratic field and placed first in the June election.

Becerra, 68, has a long career in elected office, serving two years in the state Assembly, 24 years in Congress, four years as California’s attorney general, and four years in the Biden administration.

While he was in Congress, donations to his federal campaign committee grew dramatically, according to an analysis of Federal Election Commission documents provided by Open Secrets.

In the early 1990s, Becerra was receiving donations in the low six figures, but by the end of his time in Congress, he was receiving well over $1 million during each two-year electoral cycle.

Finance, insurance and real estate firms and trade groups, such as Charles Schwab, the National Assn. of Insurance and Financial Advisors, the New York Life Insurance Co., Merrill Lynch and Pacific Life Insurance, were major supporters of Becerra, who served on the powerful House Ways and Means Committee, which regulates taxation. Such donors contributed more than $2.6 million to his congressional bids, according to Open Secrets.

Healthcare interests came in a close second, contributing more than $2.4 million to his congressional campaigns in the years before he was nominated and confirmed as Biden’s secretary of Health and Human Services, according to Open Secrets. Among the groups that supported Becerra’s federal campaigns included organizations representing physical therapists, anesthesiologists, podiatrists, assisted living and long term care facilities, and dietitians. While in Congress, Becerra was a strong advocate and supporter of the Affordable Care Act, a landmark healthcare overhaul championed by former President Obama.

Labor donated more than $1.7 million to Becerra’s congressional bids, a trend that continued when he ran for attorney general. Unions representing laborers, electrical workers, pipe fitters and firefighters donated $1 million, according to the Times analysis. The number has spiked to $6.3 million for Becerra’s gubernatorial bid.

Lorena Gonzalez Fletcher, president of the powerful California Labor Federation, said Becerra’s personal and political resume are significant at a time when the next governor will need to tackle artificial intelligence and the potential resulting job losses, the state’s volatile budget and federal funding cuts to MediCal and Medicare.

“He comes from a union family,” she said. “He has a long history of being on the right side of working people in a lot of different roles — in Congress, as attorney general and as secretary of Health and Human Services.”

Source link

Why are borrowing costs rising across the world? | Business and Economy

Rising bond yields are lifting borrowing costs for governments, businesses and households across the global economy.

For more than a decade, governments got used to cheap borrowing. That era may now be ending.

Government bond markets are flashing warnings around the world.

Across major economies, yields – the interest rates governments pay to borrow – are climbing to levels not seen in years and, in some cases, decades.

Investors are pricing in more risk before they’ll lend to governments already carrying heavy debt loads.

Inflation remains stubborn, geopolitical tensions are adding pressure, and central banks may have to keep interest rates higher for longer.

Those higher borrowing costs are pushing up what banks charge companies and homeowners.

Source link

‘Totally reliant on Mother Nature’: UK drought raises water security fears | Business and Economy News

London, United Kingdom – In a wheat field near High Wycombe in the rolling English countryside, Alex Nelms watched the harvest on his farm die in a matter of days.

His crop had looked strong until the first heatwave came in May, when temperatures surpassed 35 degrees Celsius (95 degrees Fahrenheit) just as his milling wheat entered its grain-fill phase, the critical weeks when the plant fattens its kernels.

Recommended Stories

list of 4 itemsend of list

“It just killed everything stone dead,” he told Al Jazeera. “Everything was finished really early, and when we were sort of full of optimism and hope, it was scuppered almost overnight.”

Nelms farms just over 2,000 acres (809 hectares) of arable land in south Buckinghamshire, on a business his grandparents founded in 1955. His uncle, who has worked the farm for more than 40 years, has just suffered the worst harvest of his career.

Last month, the Department for Environment, Food and Rural Affairs (Defra) said almost three-quarters of England, 71.3 percent, remained in drought. Rainfall in August reached just 34 percent of what would normally be expected by that point in the month, Defra said, and reservoir levels were 18.2 percentage points below where they should be for the time of year.

“We’re totally reliant on Mother Nature,” Nelms said, and nature did not deliver this year.

After a historically dry spring and a run of summer heatwaves, the farm is down roughly 1,000 tonnes on its average harvest, a shortfall of some $270,000 in revenue.

The farm, tucked in the Chiltern Hills, a steep, long ridge of white limestone rock, has no irrigation and never will.

“That has serious knock-on effects on our cash flow,” he said. A third consecutive difficult year would mean hard conversations with his bank and landlord, and farming to minimise risk rather than maximise output, “consequently, probably producing less food”.

‘Financial crisis point’

The National Farmers’ Union (NFU) says farmers are at a “financial crisis point” after the worst drought in 50 years, with historically low harvests, stunted grass growth, rising fuel and fertiliser costs, and a severe outbreak of bluetongue disease in livestock.

The union puts the gross production value loss of wheat at approximately $499m and the cost of replacing a shortfall in forage at roughly $45m.

NFU president Tom Bradshaw has said farmers now lack “breathing space” and are “increasingly exposed to geopolitical shocks, as well as repeated weather extremes, animal disease and global wars”.

He believes action is needed now to ensure the future of British farming “and enable the next generation to keep producing the nation’s food”.

To manage the risk, Nelms is diversifying, planting oilseed rape again on about 350 acres (142 hectares) for the first time in 20 years. He says that the crop’s usual insecticide protection, neonicotinoid seed treatments, is now banned, leaving it exposed to cabbage stem flea beetle and to game birds that can “absolutely nibble, eat, and destroy a crop”.

Growing it also means breaking a continuous wheat rotation that has kept a soil-borne disease called “Take-all”.

Tax allowances would make investing in grain storage and diversified income worthwhile, he said, as well as government-backed bridging loans, modelled on COVID-era support, to survive a bad year without permanent damage.

It is the kind of relief the NFU is pressing the government to provide nationally.

The union wants an interest-free “Keep Britain Growing” loan tied to drought losses, help covering the cost of disposing of livestock lost to bluetongue, faster planning permission for on-farm reservoirs, and clearer rules letting farmers access water as soon as levels allow, echoing Nelms’s case for storage on his farm.

“Drought conditions will continue to worsen until we receive sustained rainfall across the country and we still all have a role to play in conserving precious water supplies,” according to Philip Duffy, the Environment Agency’s chief executive, in a statement shared by Defra.

The Environment Agency has applied for a drought order to restrict abstraction from the River Severn, and 10 water companies, serving 30 million customers, now have restrictions in place.

“A few days or even weeks of wetter weather cannot reverse the impacts of several months of exceptionally dry conditions,” added Duffy.

Defra noted that the first meaningful rains since June have fallen but they have been patchy, so reservoirs and groundwater are still declining even as a handful of rivers see brief upticks in flow.

Despite the losses, Nelms is hopeful about farmers pulling together – sharing labour, machinery and market routes. He points to the Central Chiltern Farmer Cluster, where growers meet to talk through their problems and find solutions together.

“We’re working together, not competing with each other,” he said.

For a farm like Nelms’s, with no irrigation and no water in reserve, that patchiness is the problem. Soil parched from months without rain needs to absorb sustained rainfall before groundwater can even begin to recharge, let alone refill the reservoirs a future harvest might depend on.

“Our climate has changed,” Water Minister Emma Hardy, who chairs the National Drought Group, said late last month, “and we will continue to take all action necessary.”

Source link

Why is Kenya cracking down on foreign traders and small retailers? | Business and Economy News

Kenya is beginning a crackdown on foreign nationals operating small retail shops and engaging in hawking, after President William Ruto directed authorities to shut down such businesses from September 7.

Ruto made the announcement on September 2 while addressing micro, small and medium-sized enterprise (MSME) traders at State House in Nairobi.

He said foreigners should not compete with Kenyans in businesses such as hawking and small retail, while foreign investment was welcome in activities requiring greater capital and investment.

What is Kenya doing?

Ruto directed authorities to begin shutting down small businesses operated by foreign nationals from September 7, saying hawking and small-scale retail should be reserved for Kenyans.

He said the government would take administrative action while the Parliament of Kenya considers the proposed Local Content Bill, 2025.

He also directed National Assembly Majority Leader Kimani Ichung’wah and Trade Cabinet Secretary Lee Kinyanjui to accelerate the bill’s passage through Parliament.

Why is Kenya moving against foreign traders and small retailers?

Hesbon Hansen Owilla, a professor at Aga Khan University in Nairobi, said the policy would help protect Kenyan traders.

“Yes, this is the best way to protect Kenyan small businesses and traders,” he told Al Jazeera. “Kenya is trying to bring in only investors who are bringing capital that can spur economic development by creating jobs rather than allow small-time foreign traders who only stifle Kenyan small traders while enjoying the robust infrastructure that Kenya has built and social securities.”

“It’s like expatriates. A country cannot allow expatriates in for jobs locals have expertise in,” he said.

The proposed Local Content Bill, 2025, would require foreign companies to increase local sourcing and employment, among other measures.

The bill is still being considered by Parliament and has not yet been enacted into law.

What businesses and traders are affected?

The directive is aimed at foreign nationals operating small retail shops and engaging in hawking. Ruto specifically referred to hawking and small shops when announcing the crackdown.

Kenya’s broader micro, small and medium-sized enterprise (MSME) sector covers a wider range of businesses. The government has not publicly provided a comprehensive list of all businesses covered by the September 7 directive or an estimate of how many foreign nationals will be affected.

Ruto also directed Ichung’wah to engage the State Department for Immigration’s principal secretary and establish the requirements governing permits issued to foreign investors and traders. It is therefore not yet clear how the directive will apply to foreign nationals who already hold permits to conduct business in Kenya.

Foreign Affairs Principal Secretary Korir Sing’Oei said on September 6 that foreign nationals who meet Kenya’s legal requirements, including holding the necessary work permits and licences, remain legally protected to operate businesses in the country. He said Ruto’s remarks had been taken out of context and were made in the context of the Local Content Bill, 2025.

How significant is foreign investment in Kenya?

Kenya’s 2024 Foreign Investment Survey, the latest such survey published by the Kenya National Bureau of Statistics (KNBS), put the country’s stock of foreign direct investment at  1.458 trillion Kenyan shillings ($11.27bn) at the end of 2023, up 8.5 percent from 1.343 trillion Kenyan shillings ($10.4bn) at the end of 2022.

These figures cover foreign investment across the Kenyan economy and are not limited to the small-scale trading activities targeted by Ruto’s directive.

Surveyed foreign-invested enterprises employed 224,769 people in June 2024, including 221,267 Kenyan employees. Foreign employees accounted for 1.6 percent of the workforce in those enterprises.

What is the Tata Chemicals case?

The Tata Chemicals dispute is separate from the small-business crackdown.

Tata Chemicals Magadi operates a soda ash business at Lake Magadi in Kajiado County. On July 28, the Kenyan government suspended the company’s mining operations, citing alleged compliance issues under the country’s mining laws. The suspension also affected its soda ash exports.

On September 3, Ruto said he had ordered Tata Chemicals to leave Kenya, saying the company had not provided sufficient benefits to the local community in Kajiado County. He said the government would bring in two new companies to establish glass and chemical manufacturing facilities in the area.

Tata Chemicals said it had submitted the information requested by Kenyan authorities and was awaiting further communication. The company has said it complied with regulatory requirements and remained committed to resolving the matter through legal and regulatory channels.

The Tata dispute concerns the company’s soda ash operations at Lake Magadi. This is separate from the directive targeting foreign nationals operating small retail businesses and hawking.

What does this mean for foreign investment?

International business consultant and Sols Inclinations Ltd Managing Director Solomon Kinyanjui said the distinction was not between welcoming foreign investment and rejecting it, but between foreign capital that complements Kenyan enterprise and activity that displaces it.

“The issue is not whether foreign capital is welcome, but what role it should play in Kenya’s economy,” he told Al Jazeera. “Foreign investment should complement Kenyan enterprise, not substitute for economic activities Kenyans can competitively undertake themselves.”

He said the stronger case for foreign investment was where it brought capital, technology, skills, industrial capacity and access to export markets, but warned that the government needed to draw the boundary clearly and apply its rules predictably.

Hafsa Abdiwahab Sheikh, a journalist, said the policy could have both benefits and costs depending on how it is implemented.

“The policy could create more jobs for Kenyans and encourage skills transfer, while helping protect local employment,” she told Al Jazeera.

“However, if implemented unpredictably, it may discourage foreign investment and increase business costs, leading to higher prices. It could also affect relations with foreign communities if foreigners are blamed for unemployment.”

Source link

Qatar removed from Fitch’s negative watch list as risks to LNG sites ease | Business and Economy News

The global ratings agency has also maintained the country’s sovereign rating at AA.

Fitch Ratings has removed Qatar from “Rating Watch Negative” while maintaining its sovereign rating at AA amid the US-Israel war on Iran and the Strait of Hormuz blockade.

The global ratings agency announced the decision on Friday, citing reduced risks to the country’s liquefied natural gas (LNG) facilities since March.

Recommended Stories

list of 3 itemsend of list

The agency, however, kept a negative outlook on the rating, citing ongoing risks surrounding the movement of gas exports through the blockaded Strait of Hormuz.

“The impact of the war on the credit profile will take longer to discern,” the agency said in a statement.

Qatar, one of the world’s largest gas exporters, continues to face export disruptions and shortages caused by damaged energy facilities during the war on Iran, which began six months ago.

Earlier this year, credit agencies S&P and Moody’s also affirmed Qatar’s ratings, noting that the country’s sizeable financial cushion helps protect it from the economic impact of the war.

Source link

Trump signs pro-rancher orders after backlash over beef imports

Sept. 4 (UPI) — President Donald Trump on Friday signed two executive orders aimed at strengthening the country’s ranching industry.

Trump has been facing criticism from beef producers since he waived tariffs on up to 300,000 metric tons of imported beef in an effort to ease rising costs as the nation heads into the midterm elections.

Trump’s first executive order directs the Interior Department to study removing gray wolves from the Endangered Species Act list, allowing ranchers to kill them on their properties. Gray wolves are a major threat to herds in the West.

The second executive order would allow ranchers to process their beef and sell directly to consumers, instead of going through USDA inspections.

“People have been asking for this change for decades, and we’re getting it done,” Trump told reporters at the White House. “This is the largest-ever government effort to change all federal rules and regulations necessary to support our ranchers and our farmers.”

Beef prices have risen this year due to drought and high feeding costs. The United States currently maintains the smallest herd since the 1950s.

The National Cattlemen’s Beef Association said it was “disappointed” by Trump allowing more foreign beef to flow into an industry already under severe stress.

“While America’s cattle producers share the goal of keeping groceries affordable for consumers, flooding the market with government-subsidized, below-market beef is not the way to rebuild the American cattle herd,” the association previously said in a statement.

“Cattle markets have already turned sharply lower this morning, to the detriment of farmers and ranchers.”

Vice President JD Vance briefs members of the media in the press room of the White House on Thursday. Photo by Annabelle Gordon/UPI | License Photo

Source link

US adds 162,000 jobs in August, raising Fed rate hike expectations | Business and Economy News

The United States economy has added 162,000 jobs in August, with large gains in local government education and food services.

The unemployment rate remained unchanged, according to the monthly jobs report released by the US Department of Labor’s Bureau of Labor Statistics (BLS) on Friday.

Recommended Stories

list of 4 itemsend of list

The data was well above analysts’ expectations. Economists polled by Reuters had forecast 56,000 gains, the Wall Street Journal forecast 53,000, and Bloomberg had forecast 55,000, following a loss of 23,000 in July.

Local government education, or public schools, accounted for nearly 42,000 of the jobs added as the 2026–27 school year begins across much of the US. Teachers typically fall off payrolls during the summer months when school is not in session.

Food service jobs also saw large increases, with the sector adding 59,000 jobs for the month of August compared with the month prior.

There were also gains in construction, which added 22,000 jobs, and healthcare, which added 12,000.

The information sector, which accounts for industries like data processing, web hosting, publishing, broadcasting and telecommunications, fell by 23,000, with notable layoffs at companies including Scripps TV and Zillow, which fall under the umbrella of these industries.

The financial activities sector, which accounts for industries like insurance, commercial banking and real estate, dropped by 12,000.

Mixed data

The data comes in sharp contrast to the ADP national employment report, which tracks private payrolls and found 38,000 jobs added across the US economy.

Meanwhile, the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) report released on Tuesday revealed job openings were slightly changed, with 7.3 million in July, up from 7.2 million the previous month, while total separations fell to 5.1 million in July from 5.3 million in June.

The move in job gains comes ahead of the US Federal Reserve’s policy meeting later this month, where the central bank will vote on interest rates. Amid the job gains, CME Group’s FedWatch, which tracks the likelihood of monetary policy decisions, had a 60 percent chance of a 25 basis point rate increase to 3.75–4.00 percent, up from 49 percent on Thursday.

US President Donald Trump was quick to comment on the jobs report and push for rate cuts.

“Lower the interest rates because the U.S.A. is a much stronger credit than it was a short time ago!” he said in a post on his social media platform Truth Social.

He also ramped up threats to cut off trade with nations that the US has a deficit with if the central bank does not cut rates.

Despite a strong jobs report, US markets are trending downwards. The Nasdaq is down 0.2 percent, the Dow Jones Industrial Average is down 0.5 percent, and the S&P 500 is down 0.3 percent amid Trump’s comments.

Meanwhile, Canada released its jobs report amid the ongoing trade dispute with the US. The Canadian economy lost 41,700 jobs, according to Statistics Canada, with the unemployment rate holding steady at 6.4 percent.

“We expect the economy will continue struggling to create jobs in the near term as mounting headwinds from new US-Canada tariffs, greater uncertainty from a flare-up in the trade war, and the ongoing Iran conflict and a shrinking population weigh on hiring,” Tony Stillo, director of Canada Economics at Oxford Economics, said in a note provided to Al Jazeera.

Source link

FCC moves to dismiss ABC’s free speech lawsuit

Sept. 4 (UPI) — The Federal Communications Commission asked a federal court to dismiss a lawsuit from ABC claiming the commission was curbing its right to free speech.

The Walt Disney Company and its subsidiary ABC sued the FCC on Aug. 18 to block an early license renewal from the agency, claiming the Trump administration is attacking the company for content it doesn’t like.

The FCC argued in its motion that the lawsuit is premature because the agency hadn’t yet tried to remove the licenses from eight local stations that ABC owns. In April, the FCC called for an early review of the licenses, an unusual move. None of the licenses were up for renewal for several years.

The FCC claims it asked for the early review because of ABC’s response investigation into the company’s diversity, equity and inclusion hiring policies. But the review came right after President Donald Trump told ABC to fire Jimmy Kimmel after a joke about First Lady Melania Trump.

The eight stations with their licenses are in jeopardy cover New York, Los Angeles, Chicago, Philadelphia, Houston, San Francisco, Raleigh-Durham, N.C., and Fresno, Calif. They renew their licenses every eight years and are almost never revoked. The FCC hasn’t filed an early-renewal order in decades.

“This [lawsuit] would only hobble the Commission’s efforts to investigate and resolve serious allegations that Disney has engaged in unlawful discrimination, and from otherwise ensuring that Disney’s stations are serving the public interest,” the FCC wrote in its filing. “Plaintiffs, in return, would only free themselves from the burdens of proving their case in administrative proceedings.”

“They have shown (at most) minimal and self-inflicted effects on speech, and no harms that could justify” blocking the agency’s moves, the FCC’s document said.

ABC had filed for an emergency stay of the FCC’s activity, arguing it was using the regulatory process to suppress its right to free speech.

ABC in its filing said that President Donald Trump is sending a “message to every media company in the country — that they should “tell only the stories the Administration deems favorable, or face the coercive machinery of the federal government.”

“In such a world, the press could in no way be described as free,” ABC wrote. “The FCC Chairman [Brendan Carr] has left little doubt that this is his goal.”

Judge Loren L. AliKhan scheduled a hearing for the week of Oct. 5.

Vice President JD Vance briefs members of the media in the press room of the White House on Thursday. Photo by Annabelle Gordon/UPI | License Photo

Source link

Major airline launches new premium economy seats with ‘lounge mode’ and even business class-like PRIVACY screens

A NEW premium economy seat is set to change the way you fly – with business class-like privacy screens.

Emirates has revealed its new seats, with premium usually only a small jump up from economy (often with more legroom and better food).

Emirates has launched new premium economy seats Credit: Emirates Airlines
The privacy screen is something more common in business class seats Credit: Emirates Airlines

However, the designs show something much closer to a business class seat too.

Launching on the Airbus A350, they will be the first fully electrically powered premium economy seats.

This means with a flick of the button, you can choose from ‘lounge mode’ to ‘meal mode’.

Don’t worry about annoying the person behind you when you recline – each seat is built into a ‘cradle’ so it doesn’t affect them.

SIT UP

I flew on world’s best airline with business-like perks in premium & huge reclines


TAKE OFF

I flew on one of world’s oldest airlines – one way economy trumped business class

But the highlight is the privacy screen between seats, the first ever for premium economy seats.

The divider can be lowered if sitting with family or friends, or raised and locked into position.

The new seats will be laid out in a 2-3-2 layout, with 28 seats in the cabin.

Pitch will be up to 39 inches – compared to most having around 38 inches – as well as 50.8cm width.

The recline wont bother the people behind you either Credit: Emirates Airlines

Other perks include wireless charging – a first for premium economy – as well as USB-C chargers and phone holders.

The new premium seats are part of wider regeneration of the plane cabins.

Recently, the airline unveiled the new economy seats with built in adjustable headrests.

Called the U-Dream Headrest, it means you can ditch the travel pillow as the headrest pulls down to offer neck support.

There are also plans to launch the world’s first ever private bathrooms onboard, albeit only for first class passengers.

Here’s what it is like to fly business class with Emirates.



Source link

OpenAI unveils GPT‑6 Astra amid rising scrutiny and safety concerns | Business and Economy News

ChatGPT creator’s latest release comes amid heightened fears following AI-led hacking of the startup Hugging Face.

OpenAI has announced the release of what it says is its most advanced AI model, amid heightened scrutiny of the risks of the frontier technology escaping human control.

The $852bn start-up said in its announcement on Thursday that GPT‑6 Astra, the “world’s most intelligent and aligned” AI model, earned perfect or near-perfect scores in key benchmarks of AI reasoning, beating both its prior release GPT 5.6 Sol and rival Anthropic’s Claude Fable 5.

Recommended Stories

list of 4 itemsend of list

The ChatGPT creator said GPT‑6 would become available to the general public in the coming days, following its initial launch with a “limited set of organisations”.

OpenAI’s latest release comes as the AI industry is at the centre of a lively public debate about the dangers of the cutting-edge technology following the AI-led hacking of the startup Hugging Face in July.

An independent probe into the cyberattack found that hundreds of OpenAI’s AI agents had begun communicating among themselves before breaking out of their controlled environment and compromising Hugging Face’s servers.

On Thursday, US Senator Bernie Sanders, an Independent, and US House Representative Greg Casar, a Democrat, unveiled legislation that would pause the development of advanced AI until the establishment of federal safety rules and an outright ban on the creation of “superintelligent” AI.

“Nearly every day, there is a frightening new story about how Big Tech companies are losing control of the technology they are developing, with potentially cataclysmic results,” Sanders said in a statement announcing the legislation, which is unlikely to advance due to the Republicans’ control of all three branches of the US government.

“The leaders of the major AI companies publicly acknowledge that they do not fully understand the technology and that it is escaping their control. It is irresponsible for society to allow them to move forward and make these products even more advanced.”

In its announcement, OpenAI devoted significant space to AI safety, highlighting both GPT‑6’s potential to do harm and its safety features.

Toby Walsh, a professor and AI expert at the University of New South Wales, Sydney, said that while OpenAI is clearly “neck and neck” in the race to lead AI, the technology remains inconsistent and in need of greater scrutiny.

“The intelligence in artificial intelligence is still today very jagged,” Walsh said. “There are simple things that even the best AI models do poorly.

“And it’s hard to see how the AI companies, including OpenAI, are slowing down to address justified concerns around cyber risk, when new models are being released at an ever greater and greater rate.”

Roman Yampolskiy, a computer scientist at the University of Louisville, said GPT‑6 marks a “meaningful” advance that raises the stakes for AI safety.

“The key question is whether capabilities are improving faster than our ability to reliably understand, predict and control these systems,” Yampolskiy said.

“I see little evidence that this gap is closing.”

Source link

Nvidia announces $12.9 billion acquisition of Hugging Face

Nvidia CEO Jensen Huang (right) visits an internet cafe with NCSoft CEO Kim Taek-jin in Seoul, South Korea, on June 7. Huang announced in a blog post on Thursday that his company is acquiring Hugging Face for $12.9 billion. File Photo by Yonhap/EPA

Sept. 3 (UPI) — Nvidia announced on Thursday that it has agreed to acquire open-source AI company Hugging Face for $12.9 billion.

The acquisition will bring a platform that is used by 18 million people, including researchers and developers, under Nvidia’s ownership. Hugging Face has been used to share more than 3 million models, 500,000 datasets and 1 million applications, Nvidia said in a blog post.

“Over the past decade, Clem [Delangue], Julien [Chaumond], Thomas [Wolf] and the team at Hugging Face have built something remarkable: a vibrant home for the open model developer community,” Jensen Huang, founder and CEO of Nvidia, wrote in the blog post. “Hugging Face will remain an open platform for the entire AI ecosystem. Developers will choose the models they want, the frameworks they want, the clouds and inference service providers they want and the computing platforms they want.”

Nvidia adds that Nvidia compute will not be required to use Hugging Face.

In July, Hugging Face was targeted by OpenAI chatbots that went rogue, hacking the firm in what was described as a “security incident.”

OpenAI said its engineers had asked AI models to find solutions for ExploitGym, a benchmark that tests AI agents’ capability to exploit vulnerabilities in a system. The models were meant to perform this task within a sandbox but escaped, accessing the open internet and ultimately restricted information.

With restricted information, the AI models were able to cheat the vulnerabilities test and obtain an access code from Hugging Face’s servers.

Hugging Face CEO Delangue said there was “no malicious intent” by OpenAI. OpenAI said it took containment actions in response to the incident.

President of the New York Stock Exchange Lynn Martin speaks during a House Financial Services Committee hearing on the economy at the U.S. Capitol on Wednesday. Photo by Bonnie Cash/UPI | License Photo

Source link

U.S. turns to South Korea to help close China’s shipbuilding gap

Workers weld at Okpo Shipyard of Daewoo Shipbuilding & Marine Engineering Co. in Geoje, South Korea, in 2022. File Photo by Yonhap/EPA

Sept. 3 (UPI) — South Korean shipbuilders are pouring investment, technology and expertise into a U.S. maritime industry struggling with shrinking capacity, worker shortages and competition from China, offering Washington a potential path to rebuild American shipyards without sending ship construction overseas.

The growing partnership also raises a difficult question: How much foreign participation is the United States prepared to accept in an industry considered essential to national security?

The issue has gained urgency following a White House directive aimed at increasing competition and capacity in the U.S. maritime industrial base. The administration’s plan allows greater use of foreign shipbuilding expertise under certain conditions, including investment in American shipyards, training U.S. workers, transferring production technologies and developing domestic supply chains.

Limited shipyard capacity and a shortage of skilled workers remain major obstacles to expanding the U.S. Navy fleet, according to Shelby S. Oakley, director of Contracting and National Security Acquisitions at the U.S. Government Accountability Office.

“The capacity of the existing yards and the size and skill level of the current workforce are certainly a limiting factor when it comes to the U.S. Navy’s ability to increase the size of the fleet,” Oakley told UPI.

Oakley said meeting Navy shipbuilding goals will require expanding existing yards or adding new ones, increasing the skilled workforce and making greater use of technology and automation. Without those changes, she said, the Navy will struggle to meet its fleet targets.

South Korea could provide part of that capacity.

Under a broader $350 billion U.S.-South Korea investment framework, Seoul has committed $150 billion specifically to shipbuilding cooperation, with another $200 billion intended for strategic investments in other sectors.

South Korea moved toward implementing the maritime portion in June when the Korea-U.S. Strategic Investment Corporation, Korean policy finance institutions and shipbuilders HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries agreed to identify projects and coordinate financing.

The arrangement combines something Washington needs: capital and industrial expertise.

For decades, U.S. commercial shipbuilding has lost ground to Asian competitors. China now dominates global commercial ship construction, while South Korea and Japan retain substantial production capacity. The United States accounts for only a fraction of global commercial output.

President Donald Trump recently elevated shipbuilding capacity to a national security priority, directing his administration to look abroad for models that could help rebuild the U.S. maritime industrial base.

“I have determined that it is in the national security interest of the United States to increase domestic shipbuilding capacity,” Trump said in the memorandum, pointing to the October 2025 U.S. Finland Agreement on icebreaker construction as a model for cooperation with foreign companies.

China adds urgency to that effort.

China’s enormous civilian shipbuilding industry supports an expanding naval industrial base, allowing shipyards, suppliers and skilled workers to serve both commercial and military production. That industrial scale has made shipbuilding an increasingly important element of U.S.-China strategic competition.

The United States faces a different reality. The Government Accountability Office reported this year that Navy and Coast Guard shipbuilding programs have repeatedly exceeded budgets and fallen years behind schedule, while yards face skilled-worker shortages, capacity constraints and fragile supplier networks.

South Korea offers an alternative source of expertise. Its yards have decades of experience with modular construction, automation, digital design and high-volume production. Korean companies also build sophisticated naval vessels, including Aegis-equipped destroyers and submarines.

Hanwha has moved furthest into the U.S. market.

Hanwha Ocean and Hanwha Systems acquired Philly Shipyard for $100 million in 2024, giving the conglomerate a direct U.S. manufacturing foothold. Hanwha subsequently announced plans for billions of dollars in additional investment to expand the yard and introduce Korean shipbuilding technology.

Hanwha employs nearly 30,000 workers at Hanwha Ocean’s Geoje Shipyard in South Korea, where advanced manufacturing and automation help produce more than 40 ships a year.

“In the coming years, we will continue to bring trainers to develop our workforce at the Hanwha Philadelphia Shipyard as well as transfer technology to expand commercial and naval shipbuilding capacity,” Hanwha Defense USA spokesman James Hewitt told UPI.

Hanwha Ocean also completed a major overhaul of the Military Sealift Command dry cargo ship USNS Wally Schirra at Geoje in March 2025. The seven-month project was the first large-scale regular overhaul of a Military Sealift Command vessel awarded to a South Korean yard.

HD Hyundai Heavy Industries is pursuing a different route.

Rather than acquiring a U.S. yard, HD Hyundai has developed partnerships with American shipbuilders. The company and Huntington Ingalls Industries are cooperating on shipbuilding technology and production, including an August pilot program to expand automated welding at HII’s Ingalls Shipbuilding yard in Mississippi.

“The United States is a strong ally and a key business partner for us,” said Hannae Choi, Executive Vice President at HD Hyundai Shipbuilding and Offshore Engineering.

Such arrangements offer Washington a possible compromise: Korean companies can bring capital, technology, automation and production methods into American yards while training U.S. workers and developing domestic supply chains.

That distinction — foreign investment in U.S. shipbuilding rather than shifting construction overseas — has emerged as a key dividing line for the domestic industry.

The Shipbuilders Council of America supports foreign investment when it expands U.S. shipyard capacity but opposes sending construction abroad, said Danielle Hagen, the council’s executive vice president for communications.

“If South Korean capital and automation expertise flow into American facilities, employ American workers and produce American-built hulls, that model is consistent with our longstanding position,” Hagen told UPI.

“The SCA’s concern has never been the nationality of capital, but whether the work, the workforce and the industrial capability remain here in the U.S.,” she said.

Federal law has long restricted construction of U.S. naval vessels in foreign shipyards, while the Jones Act requires vessels operating in U.S. coastwise trade to be U.S.-built, U.S.-owned and U.S.-crewed.

“Any foreign partner needs to operate their U.S. yard as a genuinely American enterprise, with real decision-making authority here,” the council said, adding that foreign acquisitions should face national security scrutiny and continued congressional oversight.

Despite the backlog at U.S. yards, bipartisan opposition remains strong in Congress to building Navy vessels overseas. Rep. Jared Golden, D-Maine, a member of the House Armed Services Committee, has been among lawmakers seeking to preserve domestic construction requirements and prevent naval shipbuilding from migrating to foreign yards, including South Korea and Japan.

Those concerns extend beyond jobs. Modern warships contain classified systems, sensitive designs and specialized supply chains. Greater participation by even close allies raises questions about intellectual property, cybersecurity and control over technologies considered essential to U.S. military power.

Few U.S. allies, however, can match South Korea’s shipbuilding scale, speed and technical expertise. The emerging model seeks to use those capabilities to increase production in the United States rather than substitute foreign yards for American ones.

Whether that approach succeeds will depend not only on transferring Korean technology and manufacturing expertise into U.S. yards, but also on Washington’s ability to integrate those investments into a broader shipbuilding strategy.

Managing competing demands for Navy ship construction and repair requires such an approach, Oakley told UPI. A 2025 GAO report found that the Navy lacked a comprehensive strategy for managing the private shipbuilding and repair industry on which it depends, complicating efforts to coordinate investment, yard capacity and workforce needs.

The challenge is magnified by China. Its dominance of commercial shipbuilding has created a vast network of yards, suppliers and skilled workers that the United States cannot quickly replicate. South Korea cannot close that gap alone, but its capital, technology and expertise could help expand U.S. capacity as American yards modernize, train workers and rebuild supply chains.

For Washington, the central policy question is whether greater South Korean participation can strengthen U.S. shipbuilding capacity without creating a new dependence on foreign production.

Source link

China’s support for Iran shows its limits as US ramps up pressure on Tehran | Business and Economy

China has long been a rare partner to Iran, with the economic heft to blunt the United States’ efforts to strangle the Iranian economy.

Yet even as China opposes US President Donald Trump’s latest pressure campaign, few observers expect it to go much further than the modest economic links it has thus far forged with Iran to shield it.

Recommended Stories

list of 4 itemsend of list

While China opposes the Trump administration’s military attacks and sanctions against Iran, Beijing’s relationship with Tehran is just one consideration in a foreign policy that seeks to balance relations with numerous countries, including the US and the Gulf states, limiting its appetite to prop up the Iranian leadership at any cost, analysts say.

“China, with broader global interests, can only actively promote de-escalation of the US-Iran conflict, and cannot and will not engage in fierce confrontation with the US for Iran’s sake,” said Hongda Fan, director of the China-Middle East Center at Shaoxing University in China.

“Ultimately, the US-Iran conflict must be resolved by the two countries themselves,” Fan said.

China and Iran share substantial trade links, particularly in energy, and a mutual suspicion of US dominance, but their relationship is heavily lopsided, with Tehran depending on Beijing far more than vice versa.

That asymmetry in ties was on full display this week at the annual gathering of the Shanghai Cooperation Organisation, a 10-member bloc widely seen as a counterbalance to US hegemony, where Chinese President Xi Jinping joined more than a dozen non-Western leaders, including Iranian President Masoud Pezeshkian.

While Iranian state media reported that Pezeshkian held a “brief meeting” with Xi on the sidelines of the summit in Bishkek, Kyrgyzstan, Chinese outlets made no mention of the encounter.

Xi immediately followed his attendance at the summit with his first visit to Egypt in a decade on Tuesday, using the visit to call on countries in the Middle East to oppose “external interference” and reiterate his calls for a diplomatic resolution to the Iran war.

As Iran’s top trade partner, China has taken up to 90 percent of Iranian oil exports since the US and Israel launched their war in late February.

Iranian crude, however, accounts for only about 2 percent of China’s overall energy mix.

While China’s oil purchases have been an economic lifeline for Tehran, Chinese importers have not been immune to fears of exposure to US sanctions.

China’s major state-owned refiners such as Sinopec and PetroChina have shunned Iranian oil for years, leaving the trade to independent “teapot” refiners with minimal links to the dollar-based global financial system.

Though the Trump administration has imposed sanctions on these “teapot” refiners and a limited number of China- and Hong Kong-based firms and individuals, it has yet to target major Chinese banks accused of facilitating Iranian oil purchases.

The Trump administration has hinted at targeting China’s financial system as part of its ramped-up sanctions campaign, dubbed “Operation Economic Outcast”, though analysts are sceptical that Washington will risk provoking Beijing’s ire as the sides seek to lower the temperature in their trade war before a scheduled summit between Xi and Trump on September 24.

“The legitimate question is why third countries should be expected to adopt Washington’s unilateral economic policy towards another sovereign state,” said Zichen Wang, deputy secretary-general of the Center for China and Globalization (CCG) think tank in Beijing.

“That does not, however, mean that Beijing will provide Tehran with a blank cheque,” Wang said.

“China is likely to continue opposing US secondary sanctions politically and to defend what it considers legitimate Chinese commercial interests. But past behaviour also shows that major Chinese banks and state-owned companies are highly conscious of sanctions exposure.”

Rhetoric versus reality

Even as Beijing and Tehran have forged closer ties, their relations have for years been marked by a substantial gap between rhetoric and reality.

While China pledged to invest up to $400bn in Iran over 25 years as part of a “comprehensive strategic partnership agreement” signed in 2021, few projects have materialised amid what analysts say is Chinese firms’ reluctance to navigate sanctions and the opaque Iranian bureaucracy.

In 2023, Iran’s then deputy economy minister, Ali Fekri, complained that he was “not satisfied” with China’s level of investment since the agreement, saying it had only amounted to about $185m.

“Iranian experts often blame their government for not doing enough to attract Chinese investors or not pushing Chinese companies to share more technology,” said Andrea Ghiselli, head of research at the ChinaMed Project.

“However, the reality is that there is no point for Chinese companies to give up their ties with the international financial system to expand their business in Iran,” Ghiselli said.

“It is much easier and more profitable to trade and invest elsewhere. Iran’s own domestic physical and bank infrastructure is also an obstacle.”

Iranian President Masoud Pezeshkian and Chinese President Xi Jinping shake hands as they meet in Beijing, China, on September 2, 2025
Iranian President Masoud Pezeshkian and Chinese President Xi Jinping shake hands as they meet in Beijing, China, on September 2, 2025 [Iran’s presidential website/Handout via Reuters]

Meanwhile, the most tangible measure of China’s economic support, purchases of Iranian oil, has been dwindling amid the US blockade of Iranian ports.

Iranian crude exports via the Strait of Hormuz, mostly bound for China, fell from an estimated 1.85 million barrels per day (bpd) in March-April to just 240,000bpd in August, according to data from ship-tracking platform Kpler, though millions more barrels shipped before the blockade are still at sea.

In an interview with CNBC on Monday, US Treasury Secretary Scott Bessent said “only” about 30 million barrels of Iranian oil remained on the water and Chinese remittances to Iran were “going to run out”.

Kpler last month estimated that about 80 million barrels were in on-water shortage, enough to provide revenues to Tehran for up to six months.

INTERACTIVE - Iran oil loadings war Kharg

“For China, Iran is valuable – but replaceable across many dimensions. Iranian oil matters, but China can obtain energy from Saudi Arabia, Russia, Iraq, the UAE, and numerous other suppliers,” said Mordechai Chaziza, an expert on China’s Middle East policy who lectures at Ashkelon Academic College in Israel.

“Iran offers geopolitical access, but China possesses relationships throughout the region. Iran supports China’s multipolar agenda, but so do many other states.”

China’s support for Iran is also not risk-free for Beijing, given its important relationships with Iranian rivals such as Saudi Arabia and the United Arab Emirates, Chaziza said.

“Saudi Arabia and the UAE are major energy and commercial partners.

“Gulf stability is vital because China obtains roughly half of its crude imports from the Middle East,” he added.

The “ideal outcome” for Beijing, Chaziza said, would be “a stable, sovereign, economically connected, and internationally non-Western” Iran, but not one “whose confrontation with Washington, Israel, or the Gulf monarchies forces China to choose sides”.

Wang, at the CCG, said that while Beijing appears determined to defend Chinese commercial interests, it is unlikely to sacrifice its broader interests in the region or elsewhere.

Beijing’s warning that it is ready to take countermeasures against unilateral sanctions is “not the same thing as promising to underwrite the Iranian economy”, Wang added.

For China, Iran is seen more as a customer than an ally, said Kerri Bitsoff, a former senior official at the US Treasury’s Office of Foreign Assets Control.

“I don’t think this is the alliance some people think it is, even though there’s real support. I think of a more like a customer relationship that Iran can’t walk away from,” Bitsoff said.

“And it was good for China – they got cheap oil, they got a US tied up in the Middle East, but I think that only lasts up until the point where it threatens China’s other interests,” she added.

Source link

Patagonia sues Trump administration over Bears Ears National Monument

Sept. 2 (UPI) — Patagonia, an outdoor apparel company, announced Wednesday it sued the Trump administration for cuts dramatically shrinking the size of Bears Ears National Monument in Utah.

This is the second time Patagonia has sued the administration, the company said. In 2017, during Trump’s first term, it became the first company to sue a sitting president over public land after the president issued orders shrinking Bears Ears by 85% and Grand Staircase-Escalante National Monument, also in Utah, by nearly half.

The case was not decided by the time of the 2020 election, and President Joe Biden restored both monuments to their original size in 2021.

On July 13, Trump issued orders to shrink them again — Bears Ears by about 91% this time and Grand Staircase-Escalante by about 90%. This amounts to nearly 3 million acres of land that will lose monument-related protections, the company said in a press release.

“Slashing Bears Ears and dismantling the Bears Ears commission is a betrayal of Tribal sovereignty and needlessly throws away years of effort to create the first Tribal co-management structure of a national monument in U.S. history,” Ryan Gellert, Patagonia CEO, said in a statement. “Patagonia worked with the Bears Ears Inter-Tribal Coalition, scientists, conservation groups, outdoor industry advocates and more to establish the monument in 2016, and we are committed to defending it today and into the future.”

President Barack Obama designated the Bears Ears monument in late 2016, following a proposal by five Tribal entities: the Navajo Nation, Hopi Tribe, Ute Mountain Ute Tribe, Ute Indian Tribe of the Uintah and Ouray Reservation and the Pueblo of Zuni. A coalition of these groups co-manages the monument with the U.S. Bureau of Land Management.

Patagonia says the U.S. Antiquities Act gives presidents the power to designate national monuments but not to undo them. However, the Trump administration, as well as others including Republican Utah Gov. Spencer Cox, say the monuments violate that act, which they say limits the designation to the smallest parcel of land necessary for the proper care and management of the objects to be protected.

The Trump administration argued that term “objects of historic or scientific interest” in the Antiquities Act has been stretched to include landscapes and biodiversity — and should not.

When signing the new orders in July, Trump criticized the size of the monuments, claiming that the public cannot hunt, fish or “virtually not even walk” on the land. However, the Utah Division of Wildlife Resources and the U.S. Bureau of Land Management explicitly say people can hike, hunt and fish in both monuments, as well as take part in other forms of outdoor recreation.

The Center for Western Priorities said in July that Trump’s orders could open the land for sale or lease oil, gas, mining or logging companies within 60 days.

Source link

ADO: Private payrolls grew 38,000 in August, a decline from July

Private payrolls rose by 38,000 in August, though it was less than expected and fell below the 46,000 jobs added in July, ADP reported on Wednesday. File Photo by Tasos Katopodis/UPI | License Photo

Sept. 2 (UPI) — Private payrolls rose by 38,000 in August, though it was less than expected and fell below the 46,000 jobs added in July, ADP reported on Wednesday.

August’s new hires report was the slowest month in terms of hiring since January with the manufacturing, professional services and information industries cutting jobs.

“Pay can tell us a lot about today’s choppy hiring,” Dr. Nela Richardson, chief economist for ADP, said in a statement. “To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI’s effects on jobs.”

Manufacturing jobs posted the biggest losses, down 17,000, followed by professional and business services, down 16,000. The losses offset a 45,000 gain in education and health services jobs and 16,000 new hires in the leisure and hospitality industry.

Large businesses of more than 500 employees added the most new hires, up 34,000, followed by small businesses with one to 19 employees, up 20,000. Small businesses with 20 to 49 employees decreased by 17,000 jobs.

The Dow Jones consensus estimate projected 47,000 new hires in August, 9,000 jobs more than ADP’s reported results.

Wednesday’s report comes ahead of the U.S. Bureau of Labor Statistics’ monthly nonfarm payrolls report expected on Friday.

President Donald Trump signs an executive order to rename Lake Ontario as Lake America in the Oval Office of the White House on Thursday. Photo by Al Drago/UPI | License Photo

Source link

Korea Zinc expands semiconductor-grade sulfuric acid capacity by 14%

1 of 2 | A smelter of Korea Zinc in Ulsan. The company has increased the annual production capacity of semiconductor-grade sulfuric acid by more than 14%. Photo by Korea Zinc

SEOUL, Sept. 2 (UPI) — Korea Zinc said Wednesday that its production capacity for semiconductor-grade sulfuric acid has increased by more than 14% as the country’s two leading chipmakers boost production to meet rising demand.

The world’s largest non-ferrous metals manufacturer noted that it recently built two additional production lines for ultra-high-purity sulfuric acid at its Onsan Smelter in Ulsan, roughly 190 miles southeast of Seoul.

With the two new lines now in full-scale operation, Korea Zinc’s annual production capacity has risen from 280,000 tons to 320,000 tons.

Eventually, Korea Zinc aims to raise its domestic production capacity to 500,000 tons a year. It is also considering installing semiconductor-grade sulfuric acid lines at its planned integrated smelter in the United States.

In cooperation with the U.S. government, Korea Zinc is set to construct the smelter for strategic materials on a 160-acre site in Clarksville, Tenn. Under the $7.4 billion Project Crucible, the facility is expected to start production in 2029.

Korea Zinc said that it supplies more than 60% of South Korea’s demand for semiconductor-grade sulfuric acid. The Asian nation is home to the world’s two largest memory chipmakers, Samsung Electronics and SK hynix.

The corporation said that its product has a purity of more than 99.9999 percent, known as “six nines,” or 6N, purity.

“Through this capacity expansion, we will respond in a timely manner to the operation and ramp-up of key domestic clients’ new manufacturing facilities,” Korea Zinc said in a statement.

“Moving forward, we will phase in additional domestic production capacity in alignment with our clients’ demand and investment timelines. At the same time, we plan to establish a supply base in global markets, including the United States,” it added.

The share price of Korea Zinc fell 3.92% on the Seoul bourse on Wednesday, while the benchmark KOSPI declined 3.99%.

Source link

Cisco accused of fostering a hostile workplace for Muslim and Arab employees | Business and Economy News

The United States Equal Employment Opportunity Commission (EEOC) has found that the networking technology company Cisco may have violated the civil rights of Middle Eastern and Muslim employees amid a wave of anti-Arab and anti-Muslim comments on internal messaging platforms at the company.

In June, the EEOC, which is tasked with enforcing the US’s anti-discrimination laws, said Cisco subjected its employees to a hostile work environment, according to a letter of determination obtained by Al Jazeera.

Recommended Stories

list of 4 itemsend of list

The letter, which was first reported by Politico Pro, stemmed from a complaint filed with the EEOC in December 2024 by a group of Cisco employees called “Bridge to Humanity” (B2H), who had been voicing concerns that the company’s technology was provided to the Israeli military for use in Israel’s genocidal war on Gaza.

Several months earlier, the group of employees had sent a separate open letter calling on the San Jose, California-based company to stop providing its technology to the Israeli government. The document was signed by more than 1,700 of the company’s more than 86,000 employees.

In its December complaint filed with the EEOC, the employees alleged that Cisco had removed the open letter from an internal site and that it was “under review”, and that subsequently, many of the signatories were harassed. Among the allegations was a remark that one employee had told another to “quit living”.

The employees also alleged that Cisco had not responded to their complaints until they created a 76-page report cataloguing the hate comments they had been subjected to in an internal messaging group called Connected Jewish Network.

The report, which was provided to Cisco’s Employee Relations and Ethics offices, according to documents made public by The Guardian, outlined the waves of hate comments. In one of these, from November 2023, an unnamed employee had said that “Israeli passersby killed 2 members of a Palestinian family in Jerusalem this morning, and I for one am extremely grateful.”

“These Cisconians have, among other things, repeatedly glorified violence, joked about sending people to their deaths, likened Palestinians and those with opposing viewpoints to animals, labeled Palestinians, Arabs, and Muslims as murderous, violent terrorists, joked about respecting a person’s gender identity,” the 76-page report said. It added that the Connected Jewish Network was not even a “safe space for all of our Jewish colleagues”.

The EEOC’s determination said that the company had retaliated against one unnamed staffer for “her involvement in pro-Palestine efforts by terminating the individual”.

‘Important step’

The employees’ complaint with the EEOC was filed by Legal Aid at Work, a nonprofit legal services organisation.

“The EEOC’s determination is particularly significant because it appears to be the first time in any legal context where a governmental or judicial finding has sided with Big Tech workers who have collectively organised to fight for corporate accountability around their employers’ sales of their technology to Israel,” Christopher Ho, director of the national origin and immigrants’ rights programme at Legal Aid at Work, told Al Jazeera.

Advocacy groups like the Council on American-Islamic Relations (CAIR) praised the decision.

“The EEOC’s finding is an important step toward accountability and a reminder that federal civil rights protections apply equally to Muslim, Arab, Palestinian, and other employees who speak out about Palestine,” civil rights managing lawyer Jeffrey Wang at CAIR’s San Francisco Bay-area chapter said in a statement.

“Employers have a legal responsibility to address harassment and discrimination fairly and consistently. Workers should not have to fear retaliation or a hostile work environment because of their religion, national origin, or association with protected communities.”

According to reporting by The Guardian, although the EEOC issues its determination in June, the agency’s mediation with the company has “not gone anywhere”.

Legal Aid at Work told Al Jazeera that it has also submitted a complaint against Cisco to the National Labor Relations Board (NLRB) and the California Labor Commissioner.

“[The complaints] allege, respectively, that Cisco unlawfully interfered with our clients’ federally protected right to engage in concerted activity to improve working conditions, and unlawfully interfered with their right to engage in political activities that is protected by the California Labor Code. Both these complaints are still pending at the respective agencies,” Ho said.

Al Jazeera reached out to the EEOC for comment.

“Under federal law, both charges filed with, and charge inquiries made to the EEOC are confidential. The EEOC can neither confirm nor deny the existence of any charge or charge inquiry,” an EEOC spokesperson said.

Cisco did not respond to Al Jazeera’s request for comment.

Source link