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Tag: energy and resources

  • Nuclear Power/IAEA Fast Facts | CNN

    Nuclear Power/IAEA Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the International Atomic Energy Agency and nuclear power.

    The International Atomic Energy Agency (IAEA) inspects nuclear and related facilities under safeguard agreements. Most agreements are with countries that have committed to not possessing nuclear weapons. The IAEA is the verification authority to enforce the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).

    The IAEA has 173 member states (as of April 7, 2021).

    Rafael Grossi has been the director general of the IAEA since December 3, 2019.

    There are 35 member countries on the IAEA Board of Governors, which meets five times a year.

    The IAEA has about 2,500 employees.

    IAEA safeguard programs monitor nuclear reactors to make sure nuclear material is not being diverted for making weapons.

    The IAEA sends out inspectors to monitor reactors.

    The IAEA helps countries prepare and respond to emergencies.

    There are more than 420 nuclear power reactors in operation.

    There are more than 50 nuclear power reactors under construction.

    There are more than 90 operational nuclear reactors in the United States.

    France has a 69% share of nuclear power to total electricity generation, the highest percentage of nuclear energy in the world.

    1939 – Nuclear fission is discovered.

    1942 – The world’s first nuclear chain reaction takes place in Chicago as part of the Manhattan Project, a US research program aimed at developing the first nuclear weapons.

    July 16, 1945 – The United States conducts its first nuclear weapons test in New Mexico.

    August 6, 1945 – An atomic bomb is dropped on Hiroshima, Japan.

    August 9, 1945 – An atomic bomb is dropped on Nagasaki, Japan.

    August 29, 1949 – The Soviet Union conducts its first nuclear weapons test.

    December 1951 – Electricity is first generated from a nuclear reactor at the National Reactor Testing Station in Idaho.

    October 3, 1952 – The United Kingdom conducts its first nuclear weapons test.

    December 8, 1953 – In a speech to the United Nations General Assembly, President Dwight D. Eisenhower asks the world’s major powers to work together in developing peacetime uses of the atom. This is known as the Atoms for Peace program, and 40 countries participate. Also during this speech, Eisenhower proposes the creation of an international agency to monitor the spread of nuclear technology.

    June 26, 1954 – In the Soviet Union, the first nuclear power plant is connected to an electricity grid to provide power to residences and businesses in a town near Moscow.

    1957 – The IAEA is established to facilitate the peaceful use of nuclear energy.

    1950’s – Brazil and Argentina begin research and development of nuclear reactors.

    February 13, 1960 – France conducts its first nuclear weapons test.

    October 16, 1964 – China conducts its first nuclear weapons test.

    March 5, 1970 – The NPT goes into effect.

    May 18, 1974 – India conducts its first nuclear weapons test.

    March 28, 1979 – A partial meltdown of the Three Mile Island nuclear power plant occurs in Middletown, Pennsylvania. It is determined that equipment malfunctions, design-related problems and human error led to the accident.

    April 26, 1986 – Reactor number four explodes at the Chernobyl Nuclear Power Plant, releasing large amounts of radiation into the atmosphere.

    September 24, 1996 – The United States, China, France, the United Kingdom, Russia and 66 other UN member countries sign the Comprehensive Nuclear Test Ban Treaty, barring the testing of nuclear weapons.

    December 1997 – Mohamed ElBaradei is appointed IAEA director-general.

    May 1998 – India and Pakistan test nuclear devices amid tensions between the neighboring countries.

    January 10, 2003 – North Korea announces its withdrawal from the NPT.

    August 2003 – IAEA inspectors find traces of highly enriched uranium at an electrical plant in Iran.

    December 19, 2003 – Libya announces that it will dismantle its WMD program, in cooperation with the IAEA as well as the United States and the United Kingdom.

    October 7, 2005 – The IAEA and ElBaradei are named the winners of the Nobel Peace Prize.

    December 1, 2009 – Yukiya Amano replaces ElBaradei as director general of the IAEA.

    March 11, 2011 – A 9.0 magnitude earthquake strikes near the coast of Honshu, Japan, creating a massive tsunami. The tsunami knocks out the Fukushima Daiichi nuclear power plant’s cooling systems. The cores of three of six reactors are damaged by overheating. Resulting hydrogen explosions blow apart the buildings surrounding two reactors.

    May 30, 2011 – Germany announces it will abandon the use of all nuclear power by the year 2022. This repeals a 2010 plan to extend the life of the country’s nuclear reactors.

    November 11, 2013 – Iran signs an agreement with the IAEA, granting inspectors access to nuclear sites.

    July 14, 2015 – After 20 months of negotiations, Iran reaches a comprehensive agreement (The Joint Comprehensive Plan of Action (JCPOA)), with the United States and other countries that is aimed at reining in Iran’s nuclear program. In exchange for limits on its nuclear activities, Iran will get relief from sanctions while being allowed to continue its atomic program for peaceful purposes.

    August 11, 2015 – Japan restarts a nuclear reactor on the island of Kyushu. It’s the country’s first reactor to come back online since the 2011 tsunami.

    January 16, 2016 – The IAEA confirms that Iran has taken all of the steps outlined in the nuclear deal, allowing for sanctions to be lifted, as per the agreement.

    May 8, 2018 – US President Donald Trump announces that the United States will withdraw from JCPOA and will be imposing “the highest level of economic sanction” against Iran. In Tehran, Rouhani says Iran will take a few weeks to decide how to respond to the US withdrawal, but Rouhani says he had ordered the country’s “atomic industry organization” to be prepared to “start our industrial enrichment without limitations.”

    May 8, 2019 – Rouhani announces a partial withdrawal from the JCPOA.

    February 16, 2021 – The IAEA reports it received a February 15 letter from Iran stating that it will stop implementing provisions of the additional monitoring protocol as of February 23. This will effectively limit which facilities nuclear inspectors can scrutinize and when they can access them, making it harder for experts to determine if Tehran is attempting to develop nuclear weapons.

    February 18, 2021 – The Joe Biden administration releases a statement indicating that the United States is willing to sit down for talks with Tehran and other signatories to the Iran nuclear deal, before either side has taken tangible action to salvage or return to compliance with the agreement.

    February 21, 2021 – In a joint statement, the IAEA and Iran announce they have reached a deal in which Iran will give IAEA inspectors continued access to verify and monitor nuclear activity in the country for the next three months.

    March 15, 2023 – A spokesman from the IAEA tells CNN in an email that “approximately 2.5 tons of natural uranium” contained in 10 drums were found to be missing from supplies held in Libya during an inspection on March 14, 2023.

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    April 26, 2024
  • 2011 Japan Earthquake – Tsunami Fast Facts | CNN

    2011 Japan Earthquake – Tsunami Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the earthquake and tsunami that struck Japan in March of 2011.

    March 11, 2011 – At 2:46 p.m., a 9.1 magnitude earthquake takes place 231 miles northeast of Tokyo at a depth of 15.2 miles.

    The earthquake causes a tsunami with 30-foot waves that damage several nuclear reactors in the area.

    It is the largest earthquake ever to hit Japan.

    Number of people killed and missing

    (Source: Japan’s Fire and Disaster Management Agency)

    The combined total of confirmed deaths and missing is more than 22,000 (nearly 20,000 deaths and 2,500 missing). Deaths were caused by the initial earthquake and tsunami and by post-disaster health conditions.

    At the time of the earthquake, Japan had 54 nuclear reactors, with two under construction, and 17 power plants, which produced about 30% of Japan’s electricity (IAEA 2011).

    Material damage from the earthquake and tsunami is estimated at about 25 trillion yen ($300 billion).

    There are six reactors at Tokyo Electric Power Company’s Fukushima Daiichi plant, located about 65 km (40 miles) south of Sendai.

    A microsievert (mSv) is an internationally recognized unit measuring radiation dosage. People are typically exposed to a total of about 1,000 microsieverts in one year.

    The Japanese government estimated that the tsunami swept about five million tons of debris offshore, but that 70% sank, leaving 1.5 million tons floating in the Pacific Ocean. The debris was not considered to be radioactive.

    READ MORE: Fukushima: Five years after Japan’s worst nuclear disaster

    All times and dates are local Japanese time.

    March 11, 2011 – At 2:46 p.m., an 8.9 magnitude earthquake takes place 231 miles northeast of Tokyo. (8.9 = original recorded magnitude; later upgraded to 9.0, then 9.1.)
    – The Pacific Tsunami Warning Center issues a tsunami warning for the Pacific Ocean from Japan to the US. About an hour after the quake, waves up to 30 feet high hit the Japanese coast, sweeping away vehicles, causing buildings to collapse, and severing roads and highways.
    – The Japanese government declares a state of emergency for the nuclear power plant near Sendai, 180 miles from Tokyo. Sixty to seventy thousand people living nearby are ordered to evacuate to shelters.

    March 12, 2011 – Overnight, a 6.2 magnitude aftershock hits the Nagano and Niigata prefectures (USGS).
    – At 5:00 a.m., a nuclear emergency is declared at Fukushima Daiichi nuclear power plant. Officials report the earthquake and tsunami have cut off the plant’s electrical power, and that backup generators have been disabled by the tsunami.
    – Another aftershock hits the west coast of Honshu – 6.3 magnitude. (5:56 a.m.)
    – The Japanese Nuclear and Industrial Safety Agency announces that radiation near the plant’s main gate is more than eight times the normal level.
    – Cooling systems at three of the four units at the Fukushima Daini plant fail prompting state of emergency declarations there.
    – At least six million homes – 10% of Japan’s households – are without electricity, and a million are without water.
    – The US Geological Survey says the quake appears to have moved Honshu, Japan’s main island, by eight feet and has shifted the earth on its axis.
    – About 9,500 people – half the town’s population – are reported to be unaccounted for in Minamisanriku on Japan’s Pacific coast.

    March 13, 2011 – People living within 10 kilometers (6.2 miles) of the Fukushima Daini and 20 kilometers of the Fukushima Daiichi power plants begin a government-ordered evacuation. The total evacuated so far is about 185,000.
    – 50,000 Japan Self-Defense Forces personnel, 190 aircraft and 25 ships are deployed to help with rescue efforts.
    – A government official says a partial meltdown may be occurring at the damaged Fukushima Daiichi plant, sparking fears of a widespread release of radioactive material. So far, three units there have experienced major problems in cooling radioactive material.

    March 14, 2011 – The US Geological Survey upgrades its measure of the earthquake to magnitude 9.0 from 8.9.
    – An explosion at the Daiichi plant No. 3 reactor causes a building’s wall to collapse, injuring six. The 600 residents remaining within 30 kilometers of the plant, despite an earlier evacuation order, have been ordered to stay indoors.
    – The No. 2 reactor at the Daiichi plant loses its cooling capabilities. Officials quickly work to pump seawater into the reactor, as they have been doing with two other reactors at the same plant, and the situation is resolved. Workers scramble to cool down fuel rods at two other reactors at the plant – No. 1 and No. 3.
    – Rolling blackouts begin in parts of Tokyo and eight prefectures. Downtown Tokyo is not included. Up to 45 million people will be affected in the rolling outages, which are scheduled to last until April.

    March 15, 2011 – The third explosion at the Daiichi plant in four days damages the suppression pool of reactor No. 2. Water continues to be injected into “pressure vessels” in order to cool down radioactive material.

    March 16, 2011 – The nuclear safety agency investigates the cause of a white cloud of smoke rising above the Fukushima Daiichi plant. Plans are canceled to use helicopters to pour water onto fuel rods that may have burned after a fire there, causing a spike in radiation levels. The plume is later found to have been vapor from a spent-fuel storage pool.
    – In a rare address, Emperor Akihito tells the nation to not give up hope, that “we need to understand and help each other.” A televised address by a sitting emperor is an extraordinarily rare event in Japan, usually reserved for times of extreme crisis or war.
    – After hydrogen explosions occur in three of the plant’s reactors (1, 2 and 3), Chief Cabinet Secretary Yukio Edano says radiation levels “do not pose a direct threat to the human body” between 12 to 18 miles (20 to 30 kilometers) from the plant.

    March 17, 2011 – Gregory Jaczko, head of the Nuclear Regulatory Commission, tells US Congress that spent fuel rods in the No. 4 reactor have been exposed because there “is no water in the spent fuel pool,” resulting in the emission of “extremely high” levels of radiation.
    – Helicopters operated by Japan’s Self-Defense Forces begin dumping tons of seawater from the Pacific Ocean on to the No. 3 reactor to reduce overheating.
    – Radiation levels hit 20 millisieverts per hour at an annex building where workers have been trying to re-establish electrical power, “the highest registered (at that building) so far.” (Tokyo Electric Power Co.)

    March 18, 2011 – Japan’s Nuclear and Industrial Safety Agency raises the threat level from 4 to 5, putting it on a par with the 1979 Three Mile Island accident in Pennsylvania. The International Nuclear Events Scale says a Level 5 incident means there is a likelihood of a release of radioactive material, several deaths from radiation and severe damage to the reactor core.

    April 12, 2011 – Japan’s nuclear agency raises the Fukushima Daiichi crisis from Level 5 to a Level 7 event, the highest level, signifying a “major accident.” It is now on par with the 1986 Chernobyl disaster in the former Soviet Union, which amounts to a “major release of radioactive material with widespread health and environmental effects requiring implementation of planned and extended countermeasures.”

    June 6, 2011 – Japan’s Nuclear Emergency Response Headquarters reports reactors 1, 2 and 3 at the Fukushima Daiichi nuclear power plant experienced a full meltdown.

    June 30, 2011 – The Japanese government recommends more evacuations of households 50 to 60 kilometers northwest of the Fukushima Daiichi power plant. The government said higher radiation is monitored sporadically in this area.

    July 16, 2011 – Kansai Electric announces a reactor at the Ohi nuclear plant will be shut down due to problems with an emergency cooling system. This leaves only 18 of Japan’s 54 nuclear plants producing electricity.

    October 31, 2011 – In response to questions about the safety of decontaminated water, Japanese government official Yasuhiro Sonoda drinks a glass of decontaminated water taken from a puddle at the Fukushima Daiichi nuclear plant.

    November 2, 2011 – Kyushu Electric Power Co. announces it restarted the No. 4 reactor, the first to come back online since the March 11 disaster, at the Genkai nuclear power plant in western Japan.

    November 17, 2011 – Japanese authorities announce that they have halted the shipment of rice from some farms northwest of the Fukushima Daiichi nuclear power plant after finding higher-than-allowed levels of radioactive cesium.

    December 5, 2011 – Tokyo Electric Power Company announces at least 45 metric tons of radioactive water have leaked from the Fukushima Daiichi nuclear facility and may have reached the Pacific Ocean.

    December 16, 2011 – Japan’s Prime Minister says a “cold shutdown” has been achieved at the Fukushima Daiichi nuclear power plant, a symbolic milestone which means the plant’s crippled reactors have stayed at temperatures below the boiling point for some time.

    December 26, 2011 – Investigators report poorly trained operators at the Fukushima Daiichi nuclear power plant misread a key backup system and waited too long to start pumping water into the units, according to an interim report from the government committee probing the nuclear accident.

    February 27, 2012 – Rebuild Japan Initiative Foundation, an independent fact-finding committee, releases a report claiming the Japanese government feared the nuclear disaster could lead to an evacuation of Tokyo while at the same time hiding its most alarming assessments of the nuclear disaster from the public as well as the United States.

    May 24, 2012 – TEPCO (Tokyo Electric Power Co.) estimates about 900,000 terabecquerels of radioactive materials were released between March 12 and March 31 in 2011, more radiation than previously estimated.

    June 11, 2012 – At least 1,324 Fukushima residents lodge a criminal complaint with the Fukushima prosecutor’s office, naming Tsunehisa Katsumata, the chairman of Tokyo Electric Power Co. (TEPCO) and 32 others responsible for causing the nuclear disaster which followed the March 11 earthquake and tsunami and exposing the people of Fukushima to radiation.

    June 16, 2012 – Despite public objections, the Japanese government approves restarting two nuclear reactors at the Kansai Electric Power Company in Ohi in Fukui prefecture, the first reactors scheduled to resume since all nuclear reactors were shut down in May 2012.

    July 1, 2012 – Kansai Electric Power Co. Ltd. (KEPCO) restarts the Ohi nuclear plant’s No. 3 reactor, resuming nuclear power production in Japan for the first time in the wake of the Fukushima Daiichi meltdown following the tsunami.

    July 5, 2012 – The Fukushima Nuclear Accident Independent Investigation Commission’s report finds that the Fukushima Daiichi nuclear crisis was a “man-made disaster” which unfolded as a result of collusion between the facility’s operator, regulators and the government. The report also attributes the failings at the plant before and after March 11 specifically to Japanese culture.

    July 23, 2012 – A Japanese government report is released criticizing TEPCO. The report says the measures taken by TEPCO to prepare for disasters were “insufficient,” and the response to the crisis “inadequate.”

    October 12, 2012 – TEPCO acknowledges in a report it played down safety risks at the Fukushima Daiichi power plant out of fear that additional measures would lead to a plant shutdown and further fuel public anxiety and anti-nuclear movements.

    July 2013 – TEPCO admits radioactive groundwater is leaking into the Pacific Ocean from the Fukushima Daiichi site, bypassing an underground barrier built to seal in the water.

    August 28, 2013 – Japan’s nuclear watchdog Nuclear Regulation Authority (NRA) says a toxic water leak at the tsunami-damaged Fukushima Daiichi power plant has been classified as a Level 3 “serious incident” on an eight-point International Nuclear Event Scale (lINES) scale.

    September 15, 2013 – Japan’s only operating nuclear reactor is shut down for maintenance. All 50 of the country’s reactors are now offline. The government hasn’t said when or if any of them will come back on.

    November 18, 2013 – Tokyo Electric Power Co. says operators of the Fukushima nuclear plant have started removing 1,500 fuel rods from damaged reactor No. 4. It is considered a milestone in the estimated $50 billion cleanup operation.

    February 20, 2014 – TEPCO says an estimated 100 metric tons of radioactive water has leaked from a holding tank at the Fukushima Daiichi Nuclear Power Plant.

    August 11, 2015 – Kyushu Electric Power Company restarts No. 1 reactor at the Sendai nuclear power plant in Kagoshima prefecture. It is the first nuclear reactor reactivated since the Fukushima disaster.

    October 19, 2015 – Japan’s health ministry says a Fukushima worker has been diagnosed with leukemia. It is the first cancer diagnosis linked to the cleanup.

    February 29, 2016 – Three former TEPCO executives are indicted on charges of professional negligence related to the disaster at the Fukushiima Daiichi plant.

    November 22, 2016 – A 6.9 magnitude earthquake hits the Fukushima and Miyagi prefectures and is considered an aftershock of the 2011 earthquake. Aftershocks can sometimes occur years after the original quake.

    February 2, 2017 – TEPCO reports atmospheric readings from inside nuclear reactor plant No. 2. as high as 530 sieverts per hour. This is the highest since the 2011 meltdown.

    February 13, 2021 – A 7.1 magnitude earthquake off the east coast of Japan is an aftershock of the 2011 quake, according to the Japan Meteorological Agency.

    April 13, 2021 – The Japanese government announces it will start releasing more than 1 million metric tons of treated radioactive water from the destroyed Fukushima nuclear plant into the ocean in two years – a plan that faces opposition at home and has raised “grave concern” in neighboring countries. The whole process is expected to take decades to complete.

    September 9, 2021 – The IAEA and Japan agree on a timeline for the multi-year review of Japan’s plan to release treated radioactive water from the destroyed Fukushima nuclear plant into the ocean.

    February 18, 2022 – An IAEA task force makes its first visit to Japan for the safety review of its plan to discharge treated radioactive water into the sea.

    July 4, 2023 – An IAEA safety review concludes that Japan’s plans to release treated radioactive water from the Fukushima nuclear plant into the ocean are consistent with IAEA Safety Standards.

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    February 27, 2024
  • The IMF sees greater chance of a ‘soft landing’ for the global economy | CNN Business

    The IMF sees greater chance of a ‘soft landing’ for the global economy | CNN Business

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    London
    CNN
     — 

    The International Monetary Fund (IMF) sees better odds that central banks will manage to tame inflation without tipping the global economy into recession, but it warned Tuesday that growth remained weak and patchy.

    The agency said it expected the world’s economy to expand by 3% this year, in line with its July forecast, as stronger-than-expected growth in the United States offset downgrades to the outlook for China and Europe. It shaved its forecast for growth in 2024 by 0.1 percentage point to 2.9%.

    Echoing comments made in July, the IMF highlighted the global economy’s resilience to the twin shocks of the pandemic and the Ukraine war while warning in its World Economic Outlook that risks remained “tilted to the downside.”

    “Despite war-disrupted energy and food markets and unprecedented monetary tightening to combat decades-high inflation, economic activity has slowed but not stalled,” IMF chief economist Pierre-Olivier Gourinchas wrote in a blog post. “The global economy is limping along,” he added.

    The IMF’s projections for growth and inflation are “increasingly consistent with a ‘soft landing’ scenario… especially in the United States,” Gourinchas continued.

    But he cautioned that growth “remains slow and uneven,” with weaker recoveries now expected in much of Europe and China compared with predictions just three months ago.

    The 20 countries using the euro are expected to grow collectively by 0.7% this year and 1.2% next year, a downgrade of 0.2 percentage points and 0.3 percentage points respectively from July.

    The IMF now expects China to grow 5% this year and 4.2% in 2024, down from 5.2% and 4.5% previously.

    “China’s property sector crisis could deepen, with global spillovers, particularly for commodity exporters,” it said in its report

    By contrast, the United States is expected to grow more strongly this year and next than expected in July. The IMF upgraded its growth forecasts for the US economy to 2.1% in 2023 and 1.5% in 2024 — an improvement of 0.3 percentage points and 0.5 percentage points respectively.

    “The strongest recovery among major economies has been in the United States,” the IMF said.

    The agency expects that inflation will continue to fall — bolstering the case for a “soft landing” in major economies — but it does not expect it to return to levels targeted by central banks until 2025 in most cases.

    The IMF revised its forecasts for global inflation to 6.9% this year and 5.8% next year — an increase of 0.1 percentage point and 0.6 percentage points respectively.

    Commodity prices pose a “serious risk” to the inflation outlook and could become more volatile amid climate and geopolitical shocks, Gourinchas wrote.

    “Food prices remain elevated and could be further disrupted by an escalation of the war in Ukraine, inflicting greater hardship on many low-income countries,” he added.

    Oil prices surged Monday on concerns that the latest conflict between Israel and Hamas could cause wider instability in the oil-producing Middle East. Brent crude prices were already elevated following supply cuts by major producers Saudi Arabia and Russia.

    High oil and natural gas prices, leading to skyrocketing energy costs, helped drive inflation to multi-decade highs in many economies in 2022. The latest jump in oil prices could cause a fresh bout of broader price rises.

    Bond investors are already on edge. They dumped government bonds last week in the expectation that the world’s major central banks would keep interest rates “higher for longer” to bring inflation down to their targets.

    The IMF also pointed to concerns that high inflation could become a self-fulfilling prophecy. If households and businesses expect prices to go on rising, that could cause them to set higher prices for their goods and services, or demand higher wages.

    “Expectations that future inflation will rise could feed into current inflation rates, keeping them high,” the IMF noted.

    It added that the “expectations channel is critical to whether central banks can achieve the elusive ‘soft landing’ of bringing the inflation rate down to target without a recession.”

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    October 10, 2023
  • US retail spending picked up in August, mostly due to sales at gas stations | CNN Business

    US retail spending picked up in August, mostly due to sales at gas stations | CNN Business

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    Washington, DC
    CNN
     — 

    US retail sales picked in August, boosted by higher gas prices, as spending on other items grew modestly.

    Retail sales, which are adjusted for seasonal swings but not inflation, rose 0.6% in August, the Commerce Department reported Thursday. That’s a slightly faster pace than July’s revised 0.5% gain, and marks the fifth straight month of growth. It’s also well above economists’ expectation of a 0.2% increase.

    The increase was largely driven by spending at gas stations, which advanced 5.2% last month. Spiking oil prices due to OPEC+ production cuts, strong demand and disruption from a deadly flood in Libya have pushed up prices at the pump. The national average for regular gasoline stood at $3.86 a gallon on Thursday, according to AAA, the highest level in 10 months.

    Excluding sales at gasoline stations, retail spending advanced a more modest 0.2% in August from July.

    Retail spending increased across most categories, including at restaurants and grocery stores. Sales of furniture and at specialty stores, such as those that sell sporting goods, fell 1% and 1.6% respectively. Online retail sales in August were flat, after jumping in July due to Amazon’s Prime Day promotional event.

    Despite 11 interest rate hikes from the Federal Reserve intended to cool demand, the US economy remains on strong footing, with American shoppers still doling out cash thanks to a strong job market.

    But after a summer of robust spending, US consumers are facing a number of economic challenges for the rest of the year, including student loan payments restarting and tougher lending standards, which could curb spending.

    “Fitch continues to view the consumer as relatively healthy, supported by low unemployment and somewhat declining goods inflation,” wrote David Silverman, senior director at Fitch Ratings, in an analyst note.

    However, he noted that “headwinds are emerging,” citing lower consumer savings and the resumption of student loan payments this fall.

    The US economy is widely expected to cool in the coming months, and since consumer spending accounts for about two-thirds of economic output, a weaker economy typically means softer spending. But economists don’t expect a recession this year. While Goldman Sachs recently reduced its bet of a US recession, the Wall Street bank still thinks there’s a 15% chance of an economic downturn.

    The job market is also expected to slow, which would include softer wage growth. That could prompt US consumers to pump the brakes on their spending.

    “Slowing labor market gains and softer disposable income growth in the coming months will likely mean ongoing consumer cautiousness. And it appears that consumers are already taking note,” wrote Lydia Boussour, senior economist at EY-Parthenon, in a note.

    However, if inflation slows in the months ahead, that could actually maintain economic activity, since it means consumers have regained some spending power.

    “Encouragingly, falling inflation should continue to provide a tailwind to real wages and avoid a retrenchment in consumer activity,” Boussour added.

    The Consumer Price Index rose 3.7% in August from a year earlier, up from July’s 3.2% rise, largely due to higher gas prices. Economists still expect inflation to cool later in the year, despite volatile energy markets. But gasoline prices are highly visible indicators of inflation, so more pain at the pump could also dampen consumers’ attitudes.

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    September 14, 2023
  • Hurricane Idalia and Labor Day could send gas prices and inflation higher | CNN Business

    Hurricane Idalia and Labor Day could send gas prices and inflation higher | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Labor Day — one of the busiest driving holidays in the US — is on the horizon, and so is Hurricane Idalia. That’s potentially bad news for gas prices.

    The storm, which is expected to make landfall in Florida as a Category 3 hurricane on Wednesday, could bring 100 mile-per-hour winds and flooding that extends hundreds of miles up the east coast. The impact could take gasoline refinery facilities offline and may limit some Gulf oil production and supplies. Plus, demand for gas is expected to surge as residents of the impacted areas evacuate.

    “Idalia… could pose risk to oil and gas output in the US Gulf,” wrote the Nasdaq Advisory Services Energy Team.

    The storm is expected to make landfall as drivers nationwide load into their vehicles for the Labor Day weekend, pushing up the demand for gasoline even further.

    All together it means the price of oil and gasoline could remain elevated well into the fall.

    Generally, summer demand for oil tends to wane in September, but so does supply as refineries shift from summer fuels to “oxygenated” winter fuels, said Louis Navellier of Navellier and Associates. Since the 1990s, the US has required manufacturers to include more oxygen in their gasoline during the colder months to prevent excessive carbon monoxide emissions.

    With the storm approaching, that trend may not play out.

    What’s happening: Gas prices are already at $3.82 a gallon. That’s the second highest price for this time of year since at least 2004, according to Bespoke Investment Group. (The only time the national average has been higher for this period was last summer, when prices hit $3.85 a gallon).

    Geopolitical tensions have been supporting high oil and gas prices for some time. Recently, increased crude oil imports into China, production cuts by Russia and Saudi Arabia and extreme heat set off a late-summer spike in gas prices. And the threat of powerful hurricanes could send them even higher.

    Analysts at Citigroup have warned that this hurricane season could seriously impact power supplies.

    “Two Category 3 or higher hurricanes landing on US shores could massively disrupt supplies for not weeks but months,” Citigroup analysts wrote in a note last week. In 2005, for example, gas prices surged by 46% between Memorial Day and Labor Day because of the landfall of Hurricane Katrina, according to Bespoke.

    What it means: The Federal Reserve and central banks around the world have been fighting to bring down stubbornly high inflation for more than a year. This week we’ll get some highly awaited economic data: The Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, is due out on Thursday. But the task of inflation-busting is a lot more difficult when energy prices are high, and it’s even harder when they’re on the rise.

    The PCE price index uses a complicated formula to determine how much weight to give to energy prices each month, but they typically comprise a significant chunk of the headline inflation rate.

    “Crude oil price remains elevated, even after the surge at the start of the Russia-Ukraine War,” said Andrew Woods, oil analyst at Mintec, a market intelligence firm. “Energy prices have been a major contributor to persistently high inflation in the US, so the crude oil price will remain a watch-out factor for future inflation.”

    High oil and gas prices are one of the largest contributing factors to inflation. That’s bad news for drivers but tends to be great for the energy industry, as oil prices and energy stocks are closely interlinked.

    Energy stocks were trading higher on Monday. The S&P 500 energy sector was up around 0.75%. Exxon Mobil (XOM) was 0.85% higher, BP (BP) was up 1.36% and Chevron (CVX) was up 0.75%.

    OpenAI, will release a version of its popular ChatGPT tool made specifically for businesses, the company announced on Monday.

    OpenAI unveiled the new service, dubbed “ChatGPT Enterprise,” in a company blog post and said it will be available to business clients for purchase immediately.

    The new offering, reports my colleague Catherine Thorbecke, promises to provide “enterprise-grade security and privacy” combined with “the most powerful version of ChatGPT yet” for businesses looking to jump on the generative AI bandwagon.

    “We believe AI can assist and elevate every aspect of our working lives and make teams more creative and productive,” the blog post said. “Today marks another step towards an AI assistant for work that helps with any task, is customized for your organization, and that protects your company data.”

    Fintech startup Block, cosmetics giant Estee Lauder and professional services firm PwC have already signed on as customers.

    The highly-anticipated announcement from OpenAI comes as the company says employees from over 80% of Fortune 500 companies have already begun using ChatGPT since it launched publicly late last year, according to its analysis of accounts associated with corporate email domains.

    A multitude of leading newsrooms, meanwhile, have recently injected code into their websites that blocks OpenAI’s web crawler, GPTBot, from scanning their platforms for content. CNN’s Reliable Sources has found that CNN, The New York Times, Reuters, Disney, Bloomberg, The Washington Post, The Atlantic, Axios, Insider, ABC News, ESPN, and the Gothamist, among others have taken the step to shield themselves.

    American Airlines just got smacked with the largest-ever fine for keeping passengers waiting on the tarmac during multi-hour delays.

    The Department of Transportation is levying the $4.1 million fine, “the largest civil penalty that the Department has ever assessed” it said in a statement, for lengthy tarmac delays of 43 flights that impacted more than 5,800 passengers. The flights occurred between 2018 and 2021, reports CNN’s Gregory Wallace.

    In the longest of the delays, passengers sat aboard a plane in Texas in August 2020 for six hours and three minutes. The 105-passenger flight had landed after being diverted from the Dallas-Fort Worth International Airport due to severe weather, with the DOT alleging that “American (AAL) lacked sufficient resources to appropriately handle several of these flights once they landed.”

    Federal rules set the maximum time that passengers can be held without the opportunity to get off prior to takeoff or after landing, at three hours for domestic flights and four hours for international flights. Current rules also require airlines provide passengers water and a snack.

    American told CNN the delays all resulted from “exceptional weather events” and “represent a very small number of the 7.7 million flights during this time period.”

    The company also said it has invested in technology to better handle flights in severe weather and reduce the congestion at airports.

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    August 29, 2023
  • As hundreds remain missing in Maui, electric company admits evidence to determine how wildfires started may have been compromised | CNN

    As hundreds remain missing in Maui, electric company admits evidence to determine how wildfires started may have been compromised | CNN

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    CNN
     — 

    Hundreds of people are still listed as unaccounted for after this month’s devastating wildfires on Maui – a number that’s expected to change as the FBI continues vetting names.

    The “validated list” curated by the FBI currently includes 388 names, Maui County said Thursday, as cell phone data is now being used to try to pinpoint where victims may have been when the deadliest US wildfire disaster in more than 100 years tore through the Hawaiian island. At least 115 people are confirmed dead, though authorities say that number is likely to change.

    The FBI on Friday acknowledged the list of names was “a subset of a larger list” of people who are believed to be missing. Steven Merrill, the bureau’s special agent in charge in Hawaii, said those currently on the list are people who authorities had more complete information about. Since the list was released, they’ve gotten “at least 100 people that have notified us that a certain person shouldn’t be on the list,” Merrill said – so the number of those still unaccounted for is expected to change.

    As the race to identify the lost continues, the state’s main electrical utility stands accused of compromising evidence in the fire investigation, and Maui County officials have followed others in suing the company over responsibility for the fire. First responders also are pressing for answers about why they weren’t better prepared after a similar ruinous fire five years ago.

    The updated list of the missing was released with hopes of confirming anyone who’s not truly still lost, officials said.

    “We’re releasing this list of names today because we know that it will help with the investigation,” Police Chief John Pelletier said in the release. “We also know that once those names come out, it can and will cause pain for folks whose loved ones are listed. This is not an easy thing to do, but we want to make sure that we are doing everything we can to make this investigation as complete and thorough as possible.”

    Pelletier said Friday that since the names were released, authorities have received hundreds of calls. Authorities would like to do a weekly update on the list of missing people to help notify the public, he said.

    The FBI has worked with agencies “to unduplicate people that have been reported missing,” Hawaii Gov. Josh Green said earlier Thursday in a social media post. Some 800 to 1,200 people have been listed as unaccounted for since the fires, he said.

    The grim search for those believed missing began shortly after wind-whipped flames tore through the island on August 8. Much of the western Maui community of Lahaina – once a lively economic and cultural hub – was left in ruins, with entire neighborhoods and businesses reduced to ash. Some residents were forced to jump into the ocean to survive as flames overtook the town.

    Search crews and cadaver dogs have searched 100% of single-story homes in the disaster area, Maui County officials said Tuesday. They are now going through multistory homes and commercial properties.

    And an FBI team that specializes in using cell phone data has launched in Maui to help identify potential fire victims, a law enforcement source told CNN. The Cellular Analysis Survey Team was on the island working with local law enforcement, the official said.

    The team can get and analyze cell phone company subscriber records and cellular tower registration data, which could prove useful to the search efforts by geolocating the last known area where a victim’s cell phone was operating.

    The team in the past has used information obtained through court orders to help with terrorism, kidnapping and criminal investigations.

    “Cellular telephone analysis” is among the resources being provided by the bureau, Steven Merrill, special agent in charge of the FBI’s office in Hawaii, said during news conference Tuesday without giving specifics.

    Additionally, Maui County has named a new interim administrator of the Maui Emergency Management Agency after its prior chief resigned from the post August 17.

    In announcing Darryl Oliveira’s hiring Friday, Maui County Mayor Richard Bissen said he has a track record of “invaluable experience and skill during challenging times.”

    Oliveira, who previously served as the administrator of the Hawaii County Civil Defense Agency, is expected to begin leading the county’s emergency agency Monday.

    In pictures: The deadly Maui wildfires

    As the human toll of the fire comes into focus, investigators also are trying to determine what sparked the flames, and while no official cause has been announced, the Hawaiian Electric Company is facing scrutiny over its actions before and after the fires broke out.

    Some evidence potentially vital in determining the cause of the deadly fire in Lahaina may have been compromised, Hawaiian Electric Company (HECO) acknowledged in an exchange with attorneys included in court documents obtained by CNN.

    The company said fallen power poles, power lines and other equipment were moved during firefighting efforts and as officials worked to make the area safe for residents, according to letters part of a class action lawsuit. The company told attorneys, who are representing Lahaina residents in the class action suit, that it was “possible, even likely” that evidence that “relate(s) to the cause of the fire” might be lost, correspondence obtained by CNN shows.

    The equipment was removed from the area around the Lahaina substation – which is thought to be where the blaze started – before federal investigators arrived.

    Those actions could have violated national guidelines, which say the fire scenes should be heavily preserved for investigators and any and all evidence should be secured and not removed from the site without documentation, court documents filed by attorneys say.

    The ATF said on August 17 that its National Response Team was being deployed to Hawaii to help determine the cause and origin of the deadly fire – days after the utility company acknowledged equipment and evidence had likely been moved or lost.

    On August 10 – two days after the wildfire devastated the town of Lahaina, a group of attorneys notified the utility of anticipated litigation and requested that all electrical equipment that may relate to the origin of the fire – including power poles, lines and conductors – be preserved.

    An attorney for Hawaiian Electric responded on August 11 that some potential evidence may have already been compromised during the firefight, not by the utility itself, but by others.

    John Moore, an attorney for the utility wrote to attorneys for the families on August 11 that the company’s main focus was the safety of first responders and displaced residents and restoring power.

    The company also noted it was taking steps to preserve property but local, state and federal agencies were on the ground and it was possible “that the actions of these third parties, whose actions Hawaiian Electric does not control, may result in the loss of property or other items that relate to the cause of the fire.”

    The families’ attorneys then submitted a request for a temporary restraining order to stop Hawaiian Electric from altering the scene where it’s believed the Lahaina fire started, court documents show.

    A judge signed an interim discovery order on August 18, detailing how the company should handle evidence around the scene, including preserving and protecting all physical evidence within a defined area and refraining from destructive testing.

    The order also specified that it was not making any findings of any wrongdoing at this time.

    The class action lawsuit was filed several days after the fires ignited alleging Hawaiian Electric failed to deenergize power lines ahead of the fire despite high wind and red flag warnings. The cause of the fire has not yet been determined. It is believed to have ignited near a power substation where “where authorities reported a downed power line early on August 8, 2023,” the complaint says.

    Hawaiian Electric vice president Jim Kelly previously told CNN that, “as has always been our policy, we don’t comment on pending litigation.”

    “At this early stage, the cause of the fire has not been determined and we will work with the state and county as they conduct their review,” he said.

    Hawaiian Electric has been “in regular communication with ATF and local authorities and are cooperating to provide them, as well as attorneys representing people affected by the wildfires, with inventories and access to the removed equipment, which we have carefully photographed, documented and stored,” spokesman Darren Pai told The Washington Post.

    CNN has requested further comment on the potentially compromised evidence.

    The ATF’s National Response Team, which is investigating the cause of the fire, declined to comment.

    While the investigation continues, Maui County officials made their position clear in a lawsuit filed Thursday, claiming “the negligence, carelessness, and recklessness, and/or unlawfulness” of Hawaiian Electric Company and its subsidiaries is directly responsible for the fires.

    The utility, known as HECO, “inexcusably kept their power lines energized” in early August, despite the National Weather Service issuing a High Wind Watch and a Fire Warning, the lawsuit alleges. The warnings cautioned that strong winds could knock down power lines and ignite a fire that would spread quickly due to dry conditions, the lawsuit indicated.

    Maui County is seeking damages from HECO that may total tens or hundreds of millions of dollars, said John Fiske, an attorney representing the county in the suit.

    “Our primary focus in the wake of this unimaginable tragedy has been to do everything we can to support not just the people of Maui, but also Maui County. We are very disappointed that Maui County chose this litigious path while the investigation is still unfolding,” a spokesperson from Hawaiian Electric told CNN in a statement.

    Hawaiian Electric Company serves 95% of the state’s customer base.

    As of Thursday, officials still were tracking at least three active fires on Maui, including the Lahaina fire, which was 90% contained after burning more than 2,170 acres. The Olinda fire, which has burned an estimated 1,081 acres, was 85% contained, and the Kula fire was also 85% contained, with just over 200 acres burned, county officials said.

    And even as fire crews work to find and contain hot spots, a Hawaii police union official said firefighters “were set up for failure” ahead of the outbreak.

    Following a destructive wildfire that broke out in 2018 under similar conditions in the same area, no wildfire management or other preventative methods were taken to mitigate future disasters, Nicholas Krau, the Maui Chapter Chair for the State of Hawaii Organization of Police Officers, told CNN.

    “We all knew this was going to happen again. While no one could have predicted this much destruction or loss of life, we all knew there would be another destructive fire that would threaten these same businesses and homes again,” Krau said. “I don’t know who’s responsible for preventing wildland fires and managing the private owned land where the fire started, but they should definitely answer for it.”

    More than 2,000 acres burned and 20 homes were damaged in the 2018 fire, county officials have said.

    Many police officers who helped with evacuations this month suffered smoke inhalation because they didn’t have proper respiratory protection, even after it was requested following previous fires, Krau said.

    “If someone needs help, (the police) are going to rush in and do everything they can to help. But the department and county of Maui have the obligation to properly equip them,” he said.

    CNN has reached out to Maui County and the Maui Police Department for comment on Krau’s claims.

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    August 26, 2023
  • US wholesale inflation rose more than expected in July | CNN Business

    US wholesale inflation rose more than expected in July | CNN Business

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    Minneapolis
    CNN
     — 

    US wholesale inflation rose more than expected in July, reversing a yearlong cooling trend, the Bureau of Labor Statistics reported Friday.

    The Producer Price Index, which tracks the average change in prices that businesses pay to suppliers, rose 0.8% annually. That’s above June’s upwardly revised increase of 0.2% and higher than expectations for a 0.7% gain, according to consensus estimates on Refinitiv.

    Producer price hikes increased 0.3% from June to July, the highest monthly increase since January.

    PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers, and is a proxy for potential price changes in stores.

    Services and demand for services were the primary culprits behind the lift higher for producer prices, said Kurt Rankin, senior economist for PNC Financial Services. Services prices rose 0.5% from June, the highest monthly increase since March 2022 for the category, BLS data shows.

    “The inflation story now, be it for producers or consumers, is demand,” he told CNN. “Mainly that’s consumers still spending money on services.”

    The food index, which had declined for three straight months, rose 0.5% in July, suggesting a 6.3% annualized pace of inflation, he said.

    “Consumers continue to go out and spend money,” Rankin said. “And as long as consumers are spending money, that’s going to create demand from producers, so that’s going to drive up their costs for their raw materials, for their transportation needs, etc.”

    “And they’re going to pass those prices on to consumers,” he added.

    That’s an unpleasant cycle.

    “The numbers over the past six months have been much more encouraging, but it’s a reminder that the Federal Reserve has an eye toward the possibility of inflation flaring up again,” he said.

    The report comes just one day after the Consumer Price Index showed that prices rose 3.2% annually in July. That increase, which was below the 3.3% economists were anticipating, was largely driven by year-over-year comparisons to a softer inflation number the year before.

    Similar base effects played their role in the headline PPI increase as well, noted Rankin.

    The tick upward to 0.8% doesn’t tell the whole story, because the index decreased in five of the previous seven months. Annualizing the 0.3% monthly gain, however, would put the PPI rate at about 3.6% and core at 3.8%, he said.

    “So the July number does suggest that there’s still some producer cost pressures,” he said.

    When stripping out the more volatile categories of food and energy, core PPI rose 2.4% annually in July. That’s in line with what was seen in June but a tick above economists’ expectations for a slight cooling.

    On a month-to-month basis, core PPI increased 0.3%, also the highest monthly gain since January.

    “The underlying trends show that PPI inflation is reverting to its pre-pandemic run rate, though progress is likely to be slower in [the second half of 2023] than [the first half],” Oxford Economics economists Matthew Martin and Oren Klachkin wrote Friday in a note. “While these data will comfort Fed officials, policymakers will likely maintain a hawkish tone and keep a close eye on whether last month’s jump in services prices persists in the months ahead.”

    US stock futures tumbled after the report was released, as the hotter-than-expected data fueled concerns that the Fed could continue to hike rates in order to rein in inflation. The Dow has since pared its losses and is back in the green.

    One month does not make a trend, and this result alone should not trigger a September increase from the Fed, but it certainly could heighten concerns, Rankin said.

    “One spark could reignite this,” he said. “We’re seeing energy prices, oil prices, rising over the past few weeks. Any flareup in oil prices goes straight through to not only manufacturing costs, but transportation of goods to market, even transportation of food to restaurants. So even services, leisure and hospitality get hit when energy prices spike, so that possibility is always there.”

    The PPI’s energy index, which increased 0.7% in June, showed that prices were flat for July.

    “So the fact that energy prices were not a contributor tho this month’s reading makes this number jumping a bit a stark reminder that the Federal Reserve’s fight against inflation and their rhetoric regarding that fight is going to remain hawkish in the near term.”

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    August 11, 2023
  • Record heat and power outages create ‘the perfect storm,’ meteorologist says | CNN

    Record heat and power outages create ‘the perfect storm,’ meteorologist says | CNN

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    Editor’s Note: A version of this article originally appeared in the weekly weather newsletter, the CNN Weather Brief, which is released every Monday. You can sign up here to receive them every week and during significant storms.



    CNN
     — 

    People in the South are storm weary. I’ve heard it from friends and family in my home state of Louisiana, where storms have hit exceptionally hard, and the damage extends much further.

    Six tornadoes were reported in Mississippi alone in the last 24 hours, and strong storms are still in progress right now.

    Tornadoes have been reported in the South every day during the last week, and more could occur in the next few days. They have caused serious damage, several deaths, and as of this morning half a million people are in the dark, according to PowerOutage.us. Making matters worse, some are expected to be without power for much of the week, leaving them without air conditioning as temperatures reach the triple digits.

    The combination of power outages and dangerous heat “made this event the perfect storm,” meteorologist Michael Berry from the National Weather Service office in Shreveport said.

    His region is recovering from an EF-1 tornado that hit Cass County, Texas on Friday night, along with extensive wind damage that uprooted trees and damaged power lines, littering them all over the region. He said the damage is in some ways worse than a tornado because it is so widespread.

    Power crews have not been able to keep up. SWEPCO, which services Louisiana, Texas and Arkansas issued a statement late Sunday saying, “Nearly 3,000 utility professionals have now joined forces to tackle the work and rebuild communities across northwest Louisiana, east Texas and the western communities in Arkansas following the continued onslaught of extreme weather.” They added, “When you have devastation at this scale, with widespread damage that includes significant impacts to both our transmission and distribution stations the prolonged effort requires time to mobilize additional resources.”

    Utility crews from as far away as Michigan and Indiana have come to the region to help rebuild the power grid.

    According to Berry, straight-line winds Friday night approached 100 mph, which is what resulted in the damage to be so widespread, as well as causing damage to the power grid. He said it is the type of storm they typically only see once or twice a decade.

    Another round of storms came through many of the same areas Saturday night, causing even more damage. Saturday’s round of storms produced nearly a dozen tornadoes across the South, hail greater than three inches in diameter and widespread wind reports stretching from Kansas to the Florida Panhandle. It caused even more power outages and set back power crews from getting power restored from Friday’s storms.

    SWEPCO’s outages account for about 30% of the power outages across the South and some could be in the dark another week or more. It creates another concern for not only this region but for all the residents without power across the South: the heat!

    Heat alerts are up for roughly 35 million people across the South, with temperatures remaining in the upper 90s to triple digits but feeling much hotter when you factor in the humidity.

    weather extreme heat

    “Widespread high and low temperature records are forecast to be tied or broken over the coming days,” the Weather Prediction Center said.

    The heat index will be running anywhere from 115 across northern Louisiana and East Texas to close to 125 degrees across South Texas. The heat index is the “feels like” temperature when you factor in the humidity. It could be deadly for the hundreds of thousands without power.

    “Our message quickly became how deadly the heat can become with the widespread power outages, encouraging people without power to try to stay cool by any means possible, drinking plenty of water, staying in the shade, relocating to friends or a family member’s home with power and AC,” Berry warned.

    Many areas have opened cooling centers for those without power and in need of a place to cool off.

    How to find cooling centers by state

    With nighttime temperatures staying in the upper 70s to low 80s, they could be just as dangerous. Overnight is when the body needs to cool and reset, and if temperatures are staying warm overnight, we could see serious heat-related consequences as a result.

    Why high overnight temperatures are so deadly

    More than 50 million people are in the path of more severe weather today across the South.

    A Level 2 of 5 slight risk of severe weather covers parts of the Gulf Coast from southeastern Louisiana to the East Coast of northern Florida. Areas possibly affected include New Orleans, Mobile and Jacksonville.

    A broader area at a Level 1 of 5 marginal risk covers 40 million people and extends from central Texas to the Carolinas and down to South Florida. Cities like Austin and Fort Worth in Texas, Atlanta and Miami could face severe weather today.

    “Any storm that develops will have the potential to become severe with large hail and damaging winds being the primary threats,” the weather service office in Fort Worth warned.

    While tornadoes are not the primary threat today, they will also be a possibility.

    The areas facing a severe threat also run the risk of excessive rainfall, which could lead to flash flooding. The storms could produce heavy downpours capable of dropping up to four inches of rain in some locations.

    The severe threat continues tomorrow, before winding down for the rest of the week, giving the South a much-needed break.

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    June 19, 2023
  • US oil prices sink below $70 on debt ceiling jitters and Russia-Saudi tensions | CNN Business

    US oil prices sink below $70 on debt ceiling jitters and Russia-Saudi tensions | CNN Business

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    New York
    CNN
     — 

    US oil prices dropped below $70 a barrel Tuesday on concerns about whether the debt ceiling deal will make it through Congress and on reports of tensions between Saudi Arabia and Russia ahead of a key OPEC+ meeting.

    Crude slumped 4.4% to close at $69.46 a barrel, the lowest settlement price in nearly four weeks.

    The selloff marks one of the worst days of the year for the oil market and could help keep a lid on pump prices. The national average for a gallon of regular gasoline is down by about $1 from a year ago.

    Oil market veterans blamed Tuesday’s decline in part on worries about whether conservatives in the House of Representatives will try to block the bipartisan deal to raise the debt ceiling forged over the weekend by President Joe Biden and House Speaker Kevin McCarthy.

    “It’s not a layup that the debt deal is going to get done. That’s spooking the market, no doubt about that,” said Robert Yawger, vice president of energy futures at Mizuho Securities.

    Patrick De Haan, head of petroleum analysis at GasBuddy, also pointed to “growing skepticism” about the debt ceiling agreement and the risk that a failure to raise the borrowing limit sets off a “deep recession” that curbs demand for oil.

    Treasury Secretary Janet Yellen has warned the government will not have enough funds to meet all of the nation’s obligations if Congress does not address the debt ceiling by June 5.

    Brent crude, the world benchmark, dropped by more than 4%, slipping below $74 a barrel.

    Meanwhile, there are new questions about the relationship between OPEC leader Saudi Arabia and Russia ahead of this weekend’s meeting of oil producers in Vienna.

    Saudi Arabia has expressed anger to Russia for failing to follow through on Moscow’s promise to cut production in response to Western sanctions, the Wall Street Journal reported, citing sources. The apparent tensions raises uncertainty about the status of OPEC+, the alliance between OPEC members like Saudi Arabia, the United Arab Emirates and Kuwait and non-OPEC nations led by Russia.

    “There is starting to be chatter about the Russian and Saudis not being the best of friends,” said Yawger.

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    May 30, 2023
  • European Union upgrades outlook for economy as energy prices retreat | CNN Business

    European Union upgrades outlook for economy as energy prices retreat | CNN Business

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    London
    CNN
     — 

    Questions swirl about the strength of China’s recovery from Covid lockdowns, and there’s talk of recession in the United States. Yet Europe’s economic prospects have brightened in recent months, according to the European Commission.

    The EU’s executive arm on Monday upgraded its growth outlook for 2023 and 2024. It now expects the EU economy to expand 1% this year, up from an estimate of 0.8% in February. Growth next year is pegged at 1.7%, an upward revision of 0.1 percentage points.

    The improved forecast for Europe — which narrowly dodged a recession this winter — still represents a marked slowdown on last year, when the bloc’s economy grew 3.5%.

    But it reflects sharply lower energy prices, which are reducing costs for businesses and easing the strain on households. A strong job market and ongoing government stimulus are also providing a lift.

    Even so, the Commission acknowledged that higher borrowing costs aimed at taming rising prices will weigh on growth in the months to come. The European Central Bank raised interest rates by a quarter of a percentage point this month, the smallest increase since it started hiking in July, but hinted at further rate hikes to come given stubbornly high inflation.

    “The key factors underpinning this forecast go in opposite directions: on the one hand, declining energy prices and a resilient labor market and, on the other hand, tightening financial conditions,” Paolo Gentiloni, the European Commission’s economy minister, said at a press conference.

    “Heightened risk perception” among banks after recent tumult in the sector is making it harder to access credit, while rising rates are eating into loan demand, Gentiloni noted.

    Significant divergence is also expected among countries in the European Union. Growth in Germany, the bloc’s biggest economy, is expected to slow sharply to 0.2% in 2023. Meanwhile, Italy’s output could increase by 1.2%, and Portugal’s economy could expand by 2.4%.

    Separately, industrial production data for Europe published Monday showed signs of weakness. Production fell 4.1% in March among the 20 countries that use the euro, worse than economists had expected.

    “With the tailwinds from lower energy prices and easing semiconductor shortages apparently exhausted and the economy struggling with tighter monetary policy, we expect industrial output to contract slightly over the rest of the year,” Andrew Kenningham, chief Europe economist at Capital Economics, said in a note to clients.

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    May 15, 2023
  • ‘A new era’: Germany quits nuclear power, closing its final three plants | CNN

    ‘A new era’: Germany quits nuclear power, closing its final three plants | CNN

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    CNN
     — 

    Germany’s final three nuclear power plants close their doors on Saturday, marking the end of the country’s nuclear era that has spanned more than six decades.

    Nuclear power has long been contentious in Germany.

    There are those who want to end reliance on a technology they view as unsustainable, dangerous and a distraction from speeding up renewable energy.

    But for others, closing down nuclear plants is short-sighted. They see it as turning off the tap on a reliable source of low-carbon energy at a time when drastic cuts to planet-heating pollution are needed.

    Even as these debates rumble on, and despite last-minute calls to keep the plants online amid an energy crisis, the German government has been steadfast.

    “The position of the German government is clear: nuclear power is not green. Nor is it sustainable,” Steffi Lemke, Germany’s Federal Minister for the Environment and Consumer Protection and a Green Party member, told CNN.

    “We are embarking on a new era of energy production,” she said.

    The closure of the three plants – Emsland, Isar 2 and Neckarwestheim – represents the culmination of a plan set in motion more than 20 years ago. But its roots are even older.

    In the 1970s, a strong anti-nuclear movement in Germany emerged. Disparate groups came together to protest new power plants, concerned about the risks posed by the technology and, for some, the link to nuclear weapons. The movement gave birth to the Green Party, which is now part of the governing coalition.

    Nuclear accidents fueled the opposition: The partial meltdown of the Three Mile Island nuclear power plant in Pennsylvania in 1979 and the 1986 catastrophe at Chernobyl that created a cloud of radioactive waste which reached parts of Germany.

    In 2000, the German government pledged to phase out nuclear power and start shutting down plants. But when a new government came to power in 2009, it seemed – briefly – as if nuclear would get a reprieve as a bridging technology to help the country move to renewable energy.

    Then Fukushima happened.

    In March 2011, an earthquake and tsunami caused three reactors of the Fukushima Daiichi power plant to melt down. For many in Germany, Japan’s worst nuclear disaster was confirmation “that assurances that a nuclear accident of a large scale can’t happen are not credible,” Miranda Schreurs, professor of environment and climate policy at the Technical University of Munich, told CNN.

    Three days later then-Chancellor Angela Merkel – a physicist who was previously pro-nuclear – made a speech called it an “inconceivable catastrophe for Japan” and a “turning point” for the world. She announced Germany would accelerate a nuclear phase-out, with older plants shuttered immediately.

    Russia’s invasion of Ukraine, however, provided another plot twist.

    Fearful of its energy security without Russian gas, the German government delayed its plan to close the final three plants in December 2022. Some urged a rethink.

    But the government declined, agreeing to keep them running only until April 15.

    For those in the anti-nuclear movement, it’s a moment of victory.

    “It is a great achievement for millions of people who have been protesting nuclear in Germany and worldwide for decades,” Paul-Marie Manière, a spokesperson for Greenpeace, told CNN.

    For critics of Germany’s policy, however, it’s irrational to turn off a low-carbon source of energy as the impacts of the climate crisis intensify.

    “We need to keep existing, safe nuclear reactors operating while simultaneously ramping up renewables as fast as possible,” Leah Stokes, a professor of climate and energy policy at the University of California, Santa Barbara, told CNN.

    The big risk, she said, is that fossil fuels fill the energy gap left by nuclear. Reductions in Germany’s nuclear energy since Fukushima have been primarily offset by increases in coal, according to research published last year.

    Germany plans to replace the roughly 6% of electricity generated by the three nuclear plants with renewables, but also gas and coal.

    More than 30% of Germany’s energy comes from coal, the dirtiest of the fossil fuels – and the government has made controversial decisions to turn to coal to help with energy security.

    In January, protestors including Greta Thunberg converged on the west German village of Lützerath in an unsuccessful attempt to stop it being demolished to mine the coal underneath it.

    “Building new coal capacity is the opposite of what we need,” said Stokes. Fossil fuels are a climate problem, but they’re also a health risk, she pointed out. Air pollution from fossil fuels is responsible for 8.7 million deaths a year, according to a recent analysis.

    Veronika Grimm, one of Germany’s leading economists, told CNN that keeping nuclear power plants running for longer would have allowed Germany more time “to electrify extensively,” especially as renewable energy growth “remains sluggish.”

    A new solar energy park near Prenzlau, Germany. The German government is seeking to accelerate the construction of both solar and wind energy parks.

    But supporters of the nuclear shutdown argue it will ultimately hasten the end of fossil fuels.

    Germany has pledged to close its last coal-fired power station no later than 2038, with a 2030 deadline in some areas. It’s aiming for 80% of electricity to come from renewables by the end of this decade.

    While more coal was added in the months following Fukushima, Schreurs said, nuclear shutdowns have seen a big push on clean energy. “That urgency and demand can be what it takes to push forward on the growth of renewables,” she said.

    Representatives for Germany’s renewable energy industry said the shutdown will open the door for more investment into clean energy.

    “Germany’s phase-out of nuclear power is a historic event and an overdue step in energy terms,” Simone Peter, president of the German Renewable Energy Federation (BEE), told CNN. “It is high time that we leave the nuclear age behind and consistently organize the renewable age.”

    The impacts of nuclear power shouldn’t be overlooked either, Schreurs said, pointing to the carbon pollution created by uranium mining as well as the risk of health complications for miners. Plus, it creates a dependency on Russia, which supplies uranium for nuclear plants, she added.

    Nuclear has also shown itself to have vulnerabilities to the climate crisis. France was forced to reduce nuclear power generation last year as the rivers used to cool reactors became too hot during Europe’s blistering heatwave.

    The Gorleben nuclear waste storage facility, an interim storage facility for spent fuel elements and high-level radioactive waste.

    Now Germany must work out what do with the deadly, high-level radioactive waste, which can remain dangerous for hundreds of thousands of years.

    Currently, the nuclear waste is kept in interim storage next to the nuclear plants being decommissioned. But the search is on to find a permanent location where the waste can be stored safely for a million years.

    The site needs to be deep – hundreds of meters underground. Only certain types of rock will do: Crystalline granite, rock salt or clay rock. It must be geologically stable with no risks of earthquakes or signs of underground rivers.

    The process is likely to be fraught, complex and breathtakingly long – potentially lasting more than 100 years.

    BGE, the Federal Company for Radioactive Waste Disposal, estimates a final site won’t be chosen until between 2046 and 2064. After that, it will take decades more to build the repository, fill it with the waste and seal it.

    Plenty of other countries are treading paths similar to Germany’s. Denmark passed a resolution in the 1980s not to construct nuclear power plants, Switzerland voted in 2017 to phase out nuclear power, Italy closed its last reactors in 1990 and Austria’s one nuclear plant has never been used.

    But, in the context of the war in Ukraine, soaring energy prices and pressure to reduce carbon pollution, others still want nuclear in the mix.

    The UK, in the process of building a nuclear power plant, said in its recent climate strategy that energy nuclear power has a “crucial” role in “creating secure, affordable and clean energy.”

    France, which gets about 70% of its power from nuclear, is planning six new reactors, and Finland opened a new nuclear plant last year. Even Japan, still dealing with the aftermath of Fukushima, is considering restarting reactors.

    The Neckarwestheim nuclear power plant, Germany.

    The US, the world’s biggest nuclear power, is also investing in nuclear energy and, in March, started up a new nuclear reactor, Vogtle 3 in Georgia – the first in years.

    But experts suggest this doesn’t mark the start of a nuclear ramp up. Vogtle 3 came online six years late and at a cost of $30 billion, twice the initial budget.

    It encapsulates the big problem that afflicts the whole nuclear industry: making the economics add up. New plants are expensive and can take more than a decade to build. “Even the countries that are talking pro-nuclear are having big trouble developing nuclear power,” Schreurs said.

    Many nuclear power plants in Europe, the US and elsewhere are aging – plants have an operating life of around 40 to 60 years. As Germany puts an end to its nuclear era, it’s coming up to crunch time for others, Schreurs said.

    “There will be a moment of decision as to whether nuclear really has a future”

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    April 14, 2023
  • How electric tuk-tuks could become a ‘virtual power plant’ for this country | CNN

    How electric tuk-tuks could become a ‘virtual power plant’ for this country | CNN

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    CNN
     — 

    The streets of Dhaka are filled with constant clamor. Among the chorus of honking horns and ringing bells, roaring cars and rattling rickshaws, you can hear the electric hum of the city’s three-wheeled open taxis, called tuk-tuks, as they weave through traffic.

    Among the chaos, one Bangladeshi startup has spotted an opportunity. SOLshare plans to tap into the country’s estimated 2.5 million electric tuk-tuks, and turn them into a “virtual power plant.”

    “When (the tuk-tuks) return to the garage at the end of the night, they come back with 30% juice in their batteries,” says Salma Islam, head of projects, fundraising and communication at SOLshare. “If they can feed that back into the grid when the demand is really high, that would be amazing.”

    SOLshare knows exactly how much electricity is left in these tuk-tuks because it has been working with local garages to upgrade their conventional lead-acid batteries to smart, lithium-ion batteries. These are equipped with SOLshare’s digital chip, which collects data on the battery’s performance, location, and charge level.

    The startup claims that the leftover electricity in these batteries could provide up to 20% of the nation’s energy when demand is at its highest. The vehicles would recharge overnight when demand on the grid is lowest.

    SOLshare hopes that this mobile power supply could help to stabilize Bangladesh’s energy grid — and power the country’s economic development.

    “The demand is constantly growing, because the population is also growing, and as people’s livelihoods get better, their energy requirements also increase,” says Islam.

    SOLshare launched its EV pilot program, called SOLmobility, in 2021. It partnered with 15 tuk-tuk garages to upgrade the batteries of around 40 vehicles and began gathering data on the mileage and activities of the three-wheelers.

    The smart batteries use 40% less energy than lead-acid batteries, says Islam. Additionally, the lithium-ion batteries charge in just six hours, around half the time of lead-acid batteries, and are lighter and more efficient. Although they’re more expensive, costing more than double compared to lead acid batteries, they last up to five times longer, says Islam.

    Muhammad Delwar Hossain, who has been driving a tuk-tuk in the Dhaka suburb of Tongi for over a decade, started using a SOLshare smart battery last year. He says it’s boosted his monthly earnings by 50% because he can make more trips on a single charge, and he feels his health has improved because he’s no longer breathing in the toxic fumes emitted by the lead-acid battery.

    SOLshare’s ambitions go far beyond tuk-tuks – it wants to transform Bangladesh’s entire energy sector through multiple strands.

    In 2015, the company began building peer-to-peer solar-powered microgrids that allow households without solar panels to buy excess energy from others in the community using a pay-as-you-go mobile top-up system. To date, it has installed 118 microgrids across the country. The startup has raised $6 million so far.

    The company also installs solar panel systems for homes and commercial buildings, and has 27 megawatts of installation in the pipeline, says Islam.

    Increasing solar power can help the country reduce its reliance on fossil fuels, says Islam – and these microgrids could even feed excess energy back into the national grid.

    SOLshare’s innovations come at a pivotal time for the nation’s energy sector.

    “We had massive power grid failures last summer … that was an eye opener for everyone,” says Islam.

    Across the country, households experienced frequent load-shedding, a practice of enforced power outages that reduces strain on the grid to prevent a total blackout. Then, in October 2022, Bangladesh suffered its biggest blackout in eight years when the national grid failed and plunged 96 million people into darkness.

    Bangladesh has the world's largest off-grid solar power program, according to the World Bank. Home solar systems, seen here on the rooftops of Dhaka, supply individual households.

    Despite being home to the world’s largest off-grid solar power program, Bangladesh’s rapid growth and increasing demand for electricity means renewables account for just 3.5% of its energy.

    The low-lying nation is also one of the most climate change-vulnerable countries in the world and is highly susceptible to floods, droughts and storms – so finding a sustainable way to support its growing energy demand is vital.

    “I think they were a little bit early, ahead of their time,” says Sonia Bashir Kabir, founder of Bangladesh venture capital firm SBK Tech Ventures and an early investor in SOLshare. She believes the next five years hold a lot of opportunity for the company.

    “The government has taken a very serious mandate to look at climate, which helps because that means the policies are going to be favorable,” she says.

    Bangladesh isn’t the only country struggling to meet energy demand: disruptions in the oil and gas supply throughout 2022 have caused a global energy crisis. This has fueled a renewable revolution, with solar and wind energy growing 30% faster than expected last year – and many are hoping it will accelerate the expansion of the green energy sector.

    SOLshare installed its first peer-to-peer solar microgrid in 2015, and now has 118 across the country.

    SOLshare is continuing to upgrade more tuk-tuks, as well as working with battery manufacturers to install its digital chip directly into the battery.

    Through its different projects, Islam hopes the company will become “Asia’s largest virtual utility provider” – a model that could play “a massive role” in other countries with large fleets of electric three-wheel vehicles, such as Thailand and India, she says.

    “We are tapping into as many decentralized renewable sources as possible, and not relying on just a central power grid,” says Islam. “The way we see it, if we can do this right here in Bangladesh, you can actually do it anywhere.”

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    April 10, 2023
  • What the OPEC cuts mean for Putin and Russia | CNN Business

    What the OPEC cuts mean for Putin and Russia | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Some of the world’s largest oil exporters shocked markets over the weekend by announcing that they would cut oil production by more than 1.6 million barrels a day.

    OPEC+, an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC oil-producing countries, including Russia, Mexico, and Kazakhstan, said on Sunday that the cuts would start in May, running through the end of the year. The news sent both Brent crude futures — the global oil benchmark — and WTI — the US benchmark — up about 6% in trading Monday.

    OPEC+ was formed in 2016 to coordinate and regulate oil production and stabilize global oil prices. Its members produce about 40% of the world’s crude oil and have a significant impact on the global economy.

    What it means for Putin: OPEC+’s decision to cut oil production could have big implications for Russia.

    After Russia invaded Ukraine last year, the United States and United Kingdom immediately stopped purchasing oil from the country. The European Union also stopped importing Russian oil that was sent by sea.

    Members of the G7 — an organization of leaders from some of the world’s largest economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States — have also imposed a price cap of $60 per barrel on oil exported by Russia, keeping the country’s revenues artificially low. If oil prices continue to rise, some analysts have speculated that the US and other western nations may have to loosen that price cap.

    US Treasury Secretary Janet Yellen said Monday that the changes could lead to reassessing the price cap — though not yet. “Of course, that’s something that, if we’ve decided that it’s appropriate to revisit, could be changed, but I don’t see that that’s appropriate at this time,” she told reporters.

    “I don’t know that this is significant enough to have any impact on the appropriate level of the price cap,” she added.

    Russia also recently announced that it would lower its oil production by 500,000 barrels per day until the end of this year.

    Just last week Putin admitted that western sanctions could deal a blow to Russia’s economy.

    “The illegitimate restrictions imposed on the Russian economy may indeed have a negative impact on it in the medium term,” Putin said in televised remarks Wednesday reported by state news agency TASS.

    Putin said Russia’s economy had been growing since July, thanks in part to stronger ties with “countries of the East and South,” likely referring to China and some African countries.

    Russia, China and Saudi Arabia: The OPEC+ announcement came as a surprise this week. The group had already announced it would cut two million barrels a day in October of 2022 and Saudi Arabia previously said its production quotas would stay the same through the end of the year.

    “The move to reduce supply is fairly odd,” wrote Warren Patterson, head of commodities strategy at ING in a note Monday.

    “Oil prices have partly recovered from the turmoil seen in financial markets following developments in the banking sector,” he wrote. “Meanwhile, oil fundamentals are expected to tighten as we move through the year. Prior to these cuts, we were already expecting the oil market to see a fairly sizable deficit over the second half or 2023. Clearly, this will be even larger now.”

    Saudi Arabia stated that the cut is a “precautionary measure aimed at supporting the stability of the oil market,” but Patterson says it will likely “lead to further volatility in the market,” later this year as less available oil will add to inflationary feats.

    Still, the changes signal shifting global alliances with Russia, China and Saudi Arabia around oil prices, said analysts at ClearView Energy Partners. Higher-priced oil could help Russia pay for its war on Ukraine and also boosts revenue in Saudi Arabia.

    The White House, meanwhile, has spoken out against OPEC’s decision. “We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear,” National Security Council spokesman John Kirby said Monday.

    – CNN’s Paul LeBlanc and Hanna Ziady contributed to this report

    The crisis triggered by the recent collapses of Silicon Valley Bank and Signature Bank is not over yet and will ripple through the economy for years to come, said JPMorgan Chase CEO Jamie Dimon on Tuesday.

    In his closely watched annual letter to shareholders, the chief executive of the largest bank in the United States outlined the extensive damage the financial system meltdown had on all banks and urged lawmakers to think carefully before responding with regulatory policy.

    “These failures were not good for banks of any size,” wrote Dimon, responding to reports that large financial institution benefited greatly from the collapse of SVB and Signature Bank as wary customers sought safety by moving billions of dollars worth of money to big banks.

    In a note last month, Wells Fargo banking analyst Mike Mayo wrote “Goliath is winning.” JPMorgan in particular, he said, was benefiting from more deposits “in these less certain times.”

    “Any crisis that damages Americans’ trust in their banks damages all banks – a fact that was known even before this crisis,” said Dimon. “While it is true that this bank crisis ‘benefited’ larger banks due to the inflow of deposits they received from smaller institutions, the notion that this meltdown was good for them in any way is absurd.”

    The failures of SVB and Signature Bank, he argued, had little to do with banks bypassing regulations and that SVB’s high Interest rate exposure and large amount of uninsured deposits were already well-known to both regulators and to the marketplace at large.

    Current regulations, Dimon argued, could actually lull banks into complacency without actually addressing real system-wide banking issues. Abiding by these regulations, he wrote, has just “become an enormous, mind-numbingly complex task about crossing t’s and dotting i’s.”

    And while regulatory change will be a likely outcome of the recent banking crisis, Dimon argued that, “it is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended.” Regulations, he said, are often put in place in one part of the framework but have adverse effects on other areas and just make things more complicated.

    The Federal Deposit Insurance Corporation has said it will propose new rule changes in May, while the Federal Reserve is currently conducting an internal review to assess what changes should be made. Lawmakers in Congress, like Democratic Sen. Sherrod Brown, have suggested that new legislation meant to regulate banks is in the works.

    But, wrote Dimon, “the debate should not always be about more or less regulation but about what mix of regulations will keep America’s banking system the best in the world.”

    Dimon’s letter to shareholders touched on a number of pressing issues, including climate change. “The window for action to avert the costliest impacts of global climate change is closing,” he wrote, expressing his frustration with slow growth in clean energy technology investments.

    “Permitting reforms are desperately needed to allow investment to be done in any kind of timely way,” he wrote.

    One way to do that? “We may even need to evoke eminent domain,” he suggested. “We simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives.”

    Eminent domain is the government’s power to take private property for public use, so long as fair compensation is provided to the property owner.

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    April 4, 2023
  • Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

    Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

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    Hong Kong/Atlanta
    CNN
     — 

    Oil prices spiked during Asian trade Monday after OPEC+ producers said they would cut production in a surprise move.

    Brent crude, the global benchmark, jumped 4.8% to $83.73 a barrel, while WTI, the US benchmark, rose 4.9% to $79.36.

    Rising oil prices could mean inflation remains higher for longer, adding pressure to a hot-button issue for consumers around the world.

    On Sunday, Saudi Arabia announced that it would start “a voluntary reduction” in its production of crude oil, alongside other members or allies of the Organization of the Petroleum Exporting Countries (OPEC).

    The cuts will start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by Saudi state-run news agency SPA.

    The reductions are on top of those announced by OPEC+ in October, according to SPA.

    That month, oil producers had agreed to slash output by 2 million barrels a day, the largest cut since the start of the pandemic and equivalent to about 2% of global oil demand.

    Saudi Arabia now says it will cut oil production by another half a million barrels a day.

    Meanwhile, Iraq will slash production by 200,000 barrels per day, and the United Arab Emirates will decrease output by 144,000 barrels per day.

    Kuwait, Algeria and Oman will also lower production by 128,000, 48,000 and 40,000 barrels per day, respectively.

    In a Sunday note, Goldman Sachs analysts said the move was unexpected but “consistent with the new OPEC+ doctrine to act pre-emptively because they can without significant losses in market share.”

    The collective output cut by the nine members of OPEC+ totals 1.66 million barrels per day, said the analysts, who hiked their price forecast for Brent this year to $95 per barrel.

    Saudi Arabia’s energy ministry described its latest reduction as a precautionary measure aimed at supporting the stability of the oil markets, according to SPA.

    The White House pushed back on that notion — as well as the latest cuts by OPEC+.

    “We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear,” a spokesperson for the National Security Council said. “We’re focused on prices for American consumers, not barrels.”

    In October, OPEC+’s decision to cut production had already rankled the White House.

    US President Joe Biden pledged at the time that Saudi Arabia would suffer “consequences.” But so far, his administration appears to have back off on its vows to punish the Middle East kingdom.

    Russia, a member of OPEC+, also said Sunday that it would extend a voluntary reduction of 500,000 barrels per day until the end of 2023. The move was announced by Russian Deputy Prime Minister Alexander Novak, as cited by state-run news agency TASS.

    That decision was less surprising. Goldman analysts said they had forecast the cut would last into the second half of the year.

    — CNN’s Hanna Ziady and Arlette Saenz contributed to this report.

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    April 2, 2023
  • Key inflation gauge in Europe hits record high even as overall price rises slow sharply | CNN Business

    Key inflation gauge in Europe hits record high even as overall price rises slow sharply | CNN Business

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    London
    CNN
     — 

    Inflation in Europe has fallen to its slowest pace in more than a year, though stark signs of persistent underlying pressure on prices will complicate policymakers’ next move on borrowing costs.

    Prices in the 20 countries that use the euro rose 6.9% this month compared with a year ago, the European Union’s statistics agency said Friday.

    That’s a sharp decline from 8.5% in February and the lowest inflation rate since February 2022, when Russia launched its full-scale invasion of Ukraine, sending energy prices soaring. The pullback in inflation this month was driven by a 0.9% year-on-year fall in energy prices.

    But the latest data includes evidence of lingering upward pressure on prices. The price of food, alcohol and tobacco climbed 15.4% year over year, up from 15% in February. And prices for services rose 5%, up from 4.8%.

    More worryingly, core inflation — a measure that strips out volatile food and energy prices — ticked up to 5.7% in March from 5.6% in February, reaching a new record high.

    That is likely to create a headache for policymakers at the European Central Bank, who have been hiking borrowing costs aggressively. They have had to balance the need to tame inflation with limiting stress to the economy. The recent turmoil in the banking sector has also underscored the dangers that rapid interest rate rises pose to some lenders and to the wider financial system.

    Europe’s economic growth is also at risk from emerging efforts by banks to conserve cash following the failure of Silicon Valley Bank in the United States and the downfall of Credit Suisse, which could make it more expensive to take out loans.

    Stubbornly high core inflation makes it harder for the ECB to judge whether it has done enough to rein in inflation.

    “Descending headline inflation thanks to cooling energy prices will not be enough for the ECB to stop tightening, as policymakers are looking for clear signs of core inflation easing,” Riccardo Marcelli Fabiani of Oxford Economics said in a note to clients.

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    March 31, 2023
  • Biden designates area sacred to tribes as largest national monument of his presidency | CNN Politics

    Biden designates area sacred to tribes as largest national monument of his presidency | CNN Politics

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    CNN
     — 

    President Joe Biden on Tuesday officially designated a new national monument in Southern Nevada while speaking at a conservation event at the Interior Department.

    At more than 506,000 acres, the Avi Kwa Ame National Monument is one of the largest tracts of land to come under federal protection so far during Biden’s presidency, preserving Nevada’s Spirit Mountain and the desert around it.

    “It’s a place of reverence, a place of spirituality, a place of healing,” Biden said Tuesday. “It will now be recognized for the significance it holds and be preserved forever.”

    Biden’s proclamation is a major victory for the surrounding Fort Mojave Indian Tribe, which has been advocating for the monument’s creation for around three decades.

    “Avi Kwa Ame is the point of Mojave creation; it’s a very important and integral part of our history and belief system,” Ashley Hemmers, the tribal administrator for Fort Mojave, told CNN. “For us, that mountain is a living landscape; it’s like a person. If something were to happen to it, it would be like losing a loved one.”

    During an emotional speech Tuesday, Interior Secretary Deb Haaland highlighted Interior’s work to honor and uplift tribal nations and their knowledge of the land.

    “We’re incorporating Indigenous knowledge and honoring tribes for their role in stewarding our lands and waters since time immemorial,” Haaland said, tearing up during her speech.

    “I was thinking about how the federal government tried to erase Indigenous people in so many ways; taking their lands, taking their children, taking their lives and taking away bison that were so central to many tribal nations,” she added, talking about a recent order she signed to restore American bison. “The bison are still here here, and Indigenous people are still here.”

    Biden also designated the Castner Range National Monument in Fort Bliss in West Texas, which was a training site for the Army during World War II, the Korean War and the Vietnam War.

    “It’s a place of incredible beauty,” Biden said of Castner Range, describing the Mexican poppies that grow there as “transforming desert hills into a sea of yellows and oranges.”

    Together, the two monuments will protect close to 514,000 acres of new public lands. In addition, Biden is directing Secretary of Commerce Gina Raimondo to consider protecting all US waters around the Pacific Remote Islands as part of a new national marine sanctuary.

    Biden made the announcement at a summit for tribal leaders and elected officials that was hosted by the White House and Interior Department.

    As they met, climate and youth activists demonstrated outside the Interior Department’s headquarters to protest the recently approved Willow oil drilling project in Alaska. The Biden administration approved the controversial Willow Project last week. The drilling project, which is slated for the National Petroleum Reserve in Alaska, galvanized a surge of online activism against it in recent months. Environmental advocates have filed two lawsuits in federal court to stop the project.

    Inside the department, the focus was on protecting the new national monuments and the area around Spirit Mountain, which Biden initially vowed to designate as a national monument in November at the White House tribal nations summit.

    “When it comes to Spirit Mountain and the surrounding canyons and regions in southern Nevada, I’m committed to protecting this sacred place that is essential to the creation story of so many tribes that are here today,” Biden said in his November speech, adding, “And I look forward to being able to visit Spirit Mountain and experience it with you as soon as I can.”

    Spirit Mountain – known as Avi Kwa Ame in Mojave language – sits in the Mojave and Sonoran Deserts in Southern Nevada. It is a sacred site for more than 10 tribal nations and is the site of tribal ceremonies and rituals.

    Designating the new monument has rankled some clean energy groups who warn it could hamper wind and solar energy development in Southern Nevada.

    While Interior and the Bureau of Land Management have identified millions of acres in Nevada for renewable energy development, much of the public land within the proposed monument area can’t be considered for clean energy development because they are part of the critical habitat for a desert tortoise species, the Department of Interior said last year.

    There is a pending application for a solar project on about 2,575 acres that the department has identified as exempt from conservation, an Interior spokesperson said last year.

    Outside of the monument area, the Bureau of Land Management has identified more than 9 million acres of federal land that could be used to build utility-scale solar panels, as well as 16.8 million acres of federal land that could be developed for wind energy.

    Hemmers said that while the tribe wants to actively encourage recreation on the newly created national monument, it wants to see energy and clean energy development done elsewhere in Nevada.

    “They can both protect an area while also walking towards an energy future that gets us to our climate goals,” Hemmers said.

    Hemmers, who watched Biden declare his intention to designate Avi Kwa Ame a national monument in November along with her elderly grandmother – a survivor of the brutal, federal Native American boarding school program – said seeing the proclamation finalized would bring an immense sense of “relief.”

    “It would give me a sense of relief that people in my community cannot have that burden on their shoulders, being threatened by possibly losing a piece of us,” she told CNN.

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    March 21, 2023
  • First nor’easter of the season set to hit the Northeast and New England | CNN

    First nor’easter of the season set to hit the Northeast and New England | CNN

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    Editor’s Note: A version of this article originally appeared in the weekly weather newsletter, the CNN Weather Brief, which is released every Monday. You can sign up here to receive them every week and during significant storms.



    CNN
     — 

    Much of the Northeast and New England so far has experienced an unusually quiet winter season (aside from areas around the Great Lakes). However, it is all changing this week.

    We are already into meteorological spring as of March 1, which means we did not see a single nor’easter in the winter months, and hardly any snow for some of the East Coast’s big cities. But a major spring nor’easter is in the making and will have far-reached effects on the Northeast and New England this week.

    “Overnight Monday, a coastal low pressure will strengthen rapidly into a major nor’easter that significantly impacts the Northeast beginning later Monday night through Wednesday,” the Weather Prediction Center said.

    A nor’easter is a coastal storm with winds out of the northeast. Nor’easters are notorious for bringing huge impacts such as heavy rain, snow, strong winds, power outages and coastal flooding.

    “The greatest concerns that I have about this storm is the fact that there will be heavy, wet snow that will combine with high winds, essentially causing power outages,” David Novak, director of the Weather Prediction Center, told CNN meteorologist Derek Van Dam. “The weight of the snow will be extreme. It’s known as ‘snow loading’ and has to do with the heavy, wet type of snow we are expecting.”

    Areas around New York City will begin feeling the storm’s effects later today. Heavy rain and windy conditions will be the opening act, before the storm peaks tonight through Tuesday evening. Closer to Boston, the storm will peak Tuesday into Wednesday.

    “The heavy-wet nature of the snow, combined with max wind gusts up to 50 mph, will result in scattered to widespread power outages and tree damage,” the prediction center explained. “Similar impacts could be felt along the I-95 corridor from New York City to Boston.”

    Along Cape Cod and the islands, winds could gust as high as 60 mph. Further inland, winds will top 50-55 mph, adding to the threat of falling tree limbs and power outages.

    More than 20 million people are under winter alerts in advance of the storm, including cities like Boston and Worchester in Massachusetts, Albany and Syracuse in New York and Portland, Maine.

    Heavy, wet snow could fall at 2-3 inches per hour, resulting in up to a foot of snow in the higher elevations of the Northeast. The area includes the Catskills and southern Adirondacks in New York, Berkshires and Worcester Hills in Massachusetts, Monadnocks and White Mountains in New Hampshire, and southern Green Mountains in Vermont. Localized snow totals of 24 to 30 inches are possible.

    “We’re trying to tell people not to focus on the amount of snow that you’ve got. Some areas are going to have a lot and other areas will only get four or five inches,” noted Glen Field, warning coordination meteorologist at the weather service office in Boston. ” Anything more than four inches of heavy wet snow will be enough loading to knock down trees, power lines, and lose power,” he added.

    A coastal low will rapidly develop into a major nor’easter tonight, bringing significant impacts to the region including heavy snow, dangerous to impossible travel, and coastal flooding through Wednesday. Here are the latest Key Messages. pic.twitter.com/2H7vXndBvX

    — NWS Weather Prediction Center (@NWSWPC) March 13, 2023

    Novak said there will be a sharp difference between low and top snow totals. Some areas around Boston could see up to 7 inches of snow, he said, while other sections, like downtown, might see little to no snow.

    Along with rain, snow, gusty winds and possible power outages, another big concern along the coast will be coastal flooding and beach erosion. For coastal areas in New York and Connecticut, residents can expect water to run a foot to a foot and a half above normal levels. This could result in flooding in coastal communities. Also, four-foot waves will break along the shoreline, leading to beach erosion.

    Get the latest on the nor’easter here

    The storm is coming late in the season, however, it is not unheard of. Nor’easters can strike the Northeast through April. In 1997, a nor’easter on April Fools’ Day buried New England. However, it is odd the first one of the season is striking so late. According to Field, New Englanders knew better than to count on the season finishing without a nor’easter.

    “I think everybody was still expecting that we were going to get one,” Field said.

    By late Wednesday, the nor’easter will push out, leaving chilly and windy conditions.

    Ahead of the storm, Maine Gov. Janet Mills ordered state offices closed Tuesday.

    “I encourage Maine people to stay off the roads if they can, plan for extra time if traveling, and give plenty of space to road crews and first responders working hard to keep us safe,” Mills said.

    New Jersey Gov. Phil Murphy declared a state of emergency for five counties – Morris, Sussex, Warren, Passaic and Bergen – in the northern part of the state.

    Connecticut Gov. Ned Lamont ordered a partial activation of the state emergency operations center, starting Tuesday.

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    March 13, 2023
  • Bay Area Rapid Transit running limited service to Oakland Airport due to power outage | CNN

    Bay Area Rapid Transit running limited service to Oakland Airport due to power outage | CNN

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    CNN
     — 

    California’s Bay Area Rapid Transit system says it is running a “limited service” to the Oakland International Airport because of a power outage in Alameda County.

    “Oakland Airport Connector service is running limited service due to a power outage. Shuttles will depart every 18 minutes,” BART said in a 2:38 p.m. PST update.

    Pacific Gas and Electric Company spokesperson Tamar Sarkissian tweeted that a “large outage” was impacting approximately 50,000 Oakland customers. “We are currently investigating the details and will provide more information on the timing of restoration as soon as we can,” Sarkissian said.

    A transformer fire at a substation caused the outage, Pacific Gas and Electric told CNN in an email Sunday evening.

    “The cause of the outage is a transformer fire within the substation, and we are working closely with fire officials to make the situation safe. We will provide more information on the timing of restoration once we have those details,” spokesperson JD Guidi said.

    The outage impacted the Oakland International Airport for more than an hour Sunday afternoon, according to airport spokesperson Robert Bernardo.

    The power at the airport went down at approximately 1 p.m. PST and was restored at 2:50 p.m. PST, Bernardo told CNN.

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    February 19, 2023
  • Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics

    Biden administration restores Obama-era mercury rules for power plants, eyes more regulations in coming months | CNN Politics

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    CNN
     — 

    The Biden administration on Friday finalized a decision to reestablish Obama-era rules that require coal and oil-fired power plants to reduce toxic pollutants, including mercury and acid gas, that come out of their smokestacks.

    Mercury is a neurotoxin with several health impacts, including harmful effects on children’s brain development. And while the updated rule significantly benefits public health for communities around these kinds of power plants, it also has the effect of requiring plants to cut down on planet-warming pollution that comes from burning coal to generate electricity.

    President Joe Biden’s Environmental Protection Agency announced early last year that it intended to undo a Trump-era rollback of the 2012 mercury pollution rules, one of many Trump-era environmental decisions it has reversed.

    “This is a really good day for public health in this country,” EPA Deputy Administrator Janet McCabe told CNN. “We’re talking about mercury, arsenic, acid gases; these are dangerous pollutants that impact people’s health.”

    The EPA estimates the 2012 rule brought down mercury emissions from power plants by 86% by 2017, while acid gas emissions were reduced by 96%.

    McCabe said the EPA is currently working on its own, stronger mercury standard that it expects to propose “not too long from now” and finalize before the end of Biden’s first term.

    The Mercury and Air Toxics Standards rules are part of a larger tranche of regulations the agency is expected to roll out this spring that would cut down on coal-fired power plant pollution, including rules on proper disposal of coal ash.

    It also plans to release a much-anticipated rule that would regulate planet-warming pollution like carbon dioxide and methane. That rule is expected to be more limited than climate advocates desire, after the US Supreme Court limited the EPA’s ability to broadly regulate carbon pollution in a ruling last year.

    “We’re very mindful of the Supreme Court precedent,” McCabe told CNN. “We’ve been working very, very carefully to craft a rule that will be in the four corners of the direction that the Supreme Court has laid down.”

    McCabe said the agency will propose that rule “in the relatively near future,” but did not share specifics about what the rule would do to limit pollution.

    Many of the nation’s coal-fired power plants are aging and new ones are not being built – especially as it’s getting more expensive operate existing plans. If the EPA implements stronger federal regulations on mercury, coal ash and greenhouse gas emissions, it could have the impact of more utilities shuttering coal-fired plants, as many are already doing.

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    February 17, 2023
  • Power outage disrupts New York’s JFK Airport Terminal 1 | CNN

    Power outage disrupts New York’s JFK Airport Terminal 1 | CNN

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    CNN
     — 

    A power outage is disrupting flights at a John F. Kennedy International Airport terminal, the airport said Thursday.

    The outage at Terminal 1 was caused by an electrical panel failure that resulted in a “small isolated fire overnight that was immediately extinguished,” the Port Authority of New York and New Jersey said in a statement.

    “The power outage is currently impacting the terminal’s ability to accept inbound and outbound flights,” the statement said.

    Other terminals are being used to accommodate the affected flights, and travelers should check with their airlines for flight status, the Port Authority said.

    An Air New Zealand flight that was due to land at JFK at 5:40 p.m. ET Thursday was diverted back to its origin airport, according to flight tracking site FlightAware.

    Some arriving international flights were diverted to other East Coast airports, including Newark Liberty International Airport in New Jersey, Boston’s Logan International Airport and Washington Dulles International Airport, JFK’s website showed.

    The Port Authority is trying to restore power at Terminal 1 by working around the circuits affected by the overnight fire, according to a Port Authority official with knowledge of the outage.

    If this method of restoring the power to the terminal is not successful, they are prepared to use generator power to get Terminal 1 back online, the Port Authority source added.

    The aircraft ramp around Terminal 1 has been closed and is scheduled to reopen Friday morning, according to a notice posted in a Federal Aviation Administration safety database.

    The FAA referred questions about the incident to the airport operator. The Transportation Security Administration said: “TSA is eagerly awaiting the power situation to be resolved.”

    Passengers on the Air New Zealand flight found themselves on a nearly 16-hour flight from Auckland back to Auckland after ANZ2 turned around because of the disruption at JFK.

    “Diverting to another US port would have meant the aircraft would remain on the ground for several days, impacting a number of other scheduled services and customers,” the airline said in a statement to CNN.

    Airline staff will be on hand to rebook passengers when they arrive back in Auckland.

    “We apologise for the inconvenience and thank our customers for their patience and understanding.”

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    February 16, 2023
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