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US increases facial recognition at border to track non-citizens
According to a document released by the government on Friday, the U.S. plans to expand its use of facial recognition to track noncitizens who enter and leave the country to combat visa fraud and overstaying. New regulations will expand on a pilot program that allowed border officials to take photos of non-citizens at airports or other points of departure. The regulation is set to come into effect on December 26 and could require that other biometrics such as DNA or fingerprints be submitted. The law also allows border officials to use facial recognition on children under 14 years of age and older people over 79 years, two groups currently exempted. The new border rules are part of a larger effort by U.S. president Donald Trump to crackdown on illegal immigration. The Republican president has increased resources to secure border between the U.S. and Mexico, but he's also taken steps in order to reduce the number people who overstay their visas. Watchdog groups are concerned about privacy issues raised by the growing use of facial identification in U.S. Airports. In a report from 2024, the U.S. Commission on Civil Rights stated that tests showed facial recognition had a higher likelihood of misidentifying Black people and other minorities. In 2023, the Congressional Research Service estimated that 42% of 11 million illegal immigrants living in the U.S. at the time overstayed a Visa. In 1996, the U.S. Congress passed a law mandating an automated entry/exit system. However, it was never fully implemented. The regulation stated that U.S. Customs and Border Protection uses facial recognition to verify all commercial air entry but only for exits in certain locations. CBP estimates a biometric system for entry-exit can be implemented in all commercial seaports and airports within three to five year. (Reporting Ted Hesson, Additional reporting David Shepardson, Editing Chris Sanders and Margueritachoy)
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Sources say that Russia's fourth largest oil refinery has halted a processing unit following a drone attack.
Two industry sources said on Friday that the fourth largest oil refinery in Russia, located in Ryazan, south-east of Moscow, had halted its primary crude distillation unit following an attack by a Ukrainian drone on Wednesday. Ukraine has intensified its attacks on Russia’s energy infrastructure, as the peace talks that were mediated by U.S. president Donald Trump failed to progress. Local authorities in Russia have reported that such attacks are the cause of fuel shortages in several regions. The Ukrainian General Staff said that Kyiv forces struck the Ryazan Oil Refinery on Thursday. Industry sources in Russia said that the CDU-4 unit was shut down on Thursday, after it caught fire due to a drone attack. The unit has a capacity of 4 million metric tonnes per year or 80,000 barrels a day. This is about a quarter the total plant capacity. The oil company Rosneft that owns the refinery did not reply to a comment request. Sources said that the refinery is still processing oil but in a smaller volume. According to one source, some units adjacent were also shut down, including a vacuum gasoil hydrotreater, catalytic cracker and reformer. In 2024 the refinery will process 13.1 million tonnes of crude oil, resulting in 2.3 millions tons of gasoline, 3.4million tons of diesel, and 4.2million tons of fuel. Reporting by Elaine Hardcastle; Editing by Elaine Hardcastle
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Carney: Canada is ready to resume trade talks with the US
Mark Carney, the Canadian Prime Minister, said on Friday that his country was ready to resume trade negotiations with Washington when Washington was ready. He added that Canada could not control the trade policy of its southern neighbor. Donald Trump, the U.S. president, said on Thursday that trade negotiations with Canada are over. He cited a political advertisement in Ontario that quoted Ronald Reagan as saying tariffs lead to trade wars and economic catastrophe. Carney, who was on his first official visit in Asia, said that "my colleagues and their American counterparts have been working on detailed, constructive negotiations, discussions, on specific sectors -- Steel, Aluminum, and Energy", before leaving Ottawa for Kuala Lumpur. He said, "We are ready to continue on this progress." Carney said that Canada has the ability to control new partnerships, including those with "economic giants in Asia", the focus of his visit. Reporting by Maiya Kiedan in Toronto, and Katharine J. Jackson in Washington. Editing by Susan Heavey.
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India Central Bank to Exempt Sovereign-backed Real Estate Fund from Alternate Investment Fund Rules
In a Friday notification, the Reserve Bank of India announced that it would exempt an alternate investment fund (AIF) backed by the government from its stricter rules. The Special Window for Affordable Housing and Mid-Income Housing Fund (SWAMIH) was established in 2019 to provide debt financing for housing projects that were stalled. SWAMIH, managed by SBICAP Ventures - a government-owned unit of State Bank of India – is a fund that's heavily invested in. The lender is a major investor in the fund. The RBI requested banks and nonbanking finance companies last year to increase provisions for AIF investment, including sovereign funds. This was if the lenders were also lending to the projects that the AIFs invested in. In March, the RBI partially relaxed some of the tightened lending rules introduced to reduce indirect lending risk and possible ever-greening. In response, the government sought to exempt sovereign-backed funds from these rules by citing their "socioeconomic purpose". The current framework limits the investment of a single regulated institution in an AIF to 10% of its corpus. All lenders combined can only invest up to 20%. (Reporting by Anuran Sadhu in Bengaluru; Editing by Sonia Cheema)
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Sources say that the Urals freight rate to India increased in October due to high exports and tighter sanctions.
Industry sources say that the rate of shipping Urals crude oil from Russia's western port to India has risen sharply since October due to increased exports and sanctions. The U.S. president Donald Trump imposed additional sanctions on Russia's largest oil producers Lukoil, and Rosneft on Wednesday. The European Union also approved its 19th set of sanctions against Moscow on the same day. The EU added 117 vessels, mostly tankers, to its shadow fleet of ships that are linked to Russia. This brings the total up to 558. The crude oil loadings in Russia's western port of Primorsk remained high in October, at around 2.3 millions barrels per day. This is slightly lower than the record of 2.5 million barrels a day fetched in Septembre, due to volumes released by unplanned refinery repairs. The cost of transporting Urals to India from the Baltic port of Primorsk or Ust-Luga for loading in November has risen from $7 million for one-way trips at the beginning of the month. One trader stated that the offer prices for individual vessels had approached $10 million. However, no fixtures at these levels have been confirmed. Sources said that Urals shipments out of Russian ports are now handled largely by tankers in the shadow fleet while Greek shipowners reduce their presence on the market. One source stated that "the number of Greek shipowners actively involved in the market is at a minimum." The United States has launched a new round of sanctions against Russia's oil industry, among the most severe yet. These sanctions have hit major exporters, insurance companies, traders, and shipping firms and caused a dramatic rise in freight costs. (Reporting and Editing by Louise Heavens).
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Asian spot prices barely changed due to high inventories and softer demand
The Asian spot prices for liquefied gas were largely unchanged this week, as low inventories and weaker demand countered regional cold snaps. Further sanctions against Russian LNG are also a possibility. Average LNG price for delivery to North-east Asia in December Industry sources estimate that the price per million British Thermal Units (mmBtu) was $11.20, up from $11.10/mmBtu in the previous week. Go Katayama, Kpler analyst, said: "An early chill in North China boosted demand and supported regional prices." He added that "next week, the price downside due to higher domestic gas production, high inventories in China and softer demand in Thailand, as well as softer demand is offset by upside from additional heating demand due to cold spells in Korea, northern China and Russian LNG sanctions risk." The European Union adopted this week a 19th set of sanctions against Russia, including a prohibition on Russian LNG imports. Meanwhile, the United States imposed sanctions against Russia's major oil companies. Martin Senior, head LNG pricing at Argus, says that in Japan, a stronger heating demand will be expected this month, as temperatures are forecasted to fall below the seasonal averages. However, this has yet to translate into an additional spot demand. The European Picture Gas prices in Europe fell on Friday, despite concerns about the impact of Russian sanctions on energy supplies. TTF trading was relatively quiet in the week ended October 17. Seb Kennedy, an independent gas analyst, noted that the net long positions held by hedge funds and commercial participants were mostly unchanged. This reflects confidence in Europe's short-term gas supply outlook. Kennedy said that the number of funds with positions has increased to 438. This is a record-high, and Kennedy believes it could lead to big moves. Katayama, from Kpler, said that prices are expected to stay stable next week. This is due to the fact that there will be ample LNG and pipeline supplies, and strong wind power generation, which puts downward pressure on gas for electricity demand. These factors will be offset by temperatures lower than average and renewed geopolitical tensions. Aly Blakeway is the manager of Atlantic LNG for S&P Global Commodity Insights. She said that Europe, with less storage than in the past two years, may experience a strong demand this winter from Central and Eastern Europe to replace lost Russian volumes during the heating season. S&P Global Commodity Insights estimated its daily North West Europe LNG Marker price benchmark (NWM) for cargoes to be delivered in December ex-ship on October 23 at $10,534. This is a $0.55/mmBtu reduction from the December futures prices at the TTF Hub. Spark Commodities estimated the October price to be $10.421/mmBtu. ATLANTIC FREIGHT RATES AND PACIFIC RATES RISE Qasim Afghanistan, Spark Commodities analyst, says that the U.S. arbitrage for front-month cargoes going to Asia via Cape of Good Hope has caused U.S. cargoes being delivered to Asia. The global LNG freight rate in the Atlantic has risen for the second consecutive week, and is now $34,500/day. Pacific rates have risen for the first nine weeks, to $28,250/day. Marwa Rashad reported. Mark Potter (Editing)
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Brazil's Lula is open to discuss tariffs with Trump about Venezuela
Luiz inacio Lula da silva, the Brazilian president said on Friday that he would be willing to talk about a variety of topics with Donald Trump, if they were to meet. These include tariffs on Brazilian imports and tensions between Brazil and Venezuela. Lula, who spoke in Jakarta just before he left for the ASEAN summit in Malaysia, said that the meeting was highly anticipated, but it has not yet been confirmed. Brazil's President plans to argue the tariffs of 50% imposed by Washington against Brazilian goods was a "mistake". Citing a $410 Billion U.S. Trade Surplus with Brazil over a 15-year period. Lula told journalists that there are no forbidden subjects. "We can discuss Gaza, Ukraine Russia Venezuela, critical materials rare earths, anything." Trump raised tariffs on U.S. goods imported from Brazil to 50%, up from 10% early in August. He attributed the increase to what he described as a witch hunt against Bolsonaro. Lula also criticised U.S. sanctions against Brazilian officials including Supreme Court Justice Alexandre de Moraes who presided over the trial which led to Bolsonaro being convicted of attempting a coup. Lula expressed his desire to have a conversation with Trump on Venezuela. He urged respect for international law, and sovereignty, amid reports about U.S. military operations in the area. The White House did not confirm the meeting and Lula was not mentioned during Trump's Asia briefing.
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Japan scrambles jets when nuclear-capable Russian Bombers fly near
Japan scrambled jets to monitor Russian warplanes that flew along the Japanese coast, including strategic bombers with nuclear weapons. In a press release reported by the state-owned RIA, Russia's Defence Ministry confirmed that jets from a different country escorted its Tu-95 Bombers during a routine patrol over neutral waters. The incident occurred just hours before Japan’s new Prime Minister, Sanae Taichi, promised in her first address to the parliament after taking office that she would accelerate a defense buildup. Takaichi stated that Russia's military actions, as well as those of China and North Korea were "a serious concern". The Japanese Ministry of Defence has released a map that shows the flight path of Russian planes over the Sea of Japan, off the west coast of Japan. The two Tu-95 Bombers, accompanied by the two Su-35 Fighters, flew towards Japan's Sado Island and then turned north. Shinjiro Koizumi, Defence Minister Shinjiro Koizumi, wrote in a post on X that "Russia conducts military operations daily around our country while invading Ukraine. This is the reality." Takaichi praised Ukraine’s President Volodymyr Zelenskiy, and the people of Ukraine for their courage in "standing up against the aggressiveness day by day". In recent weeks, European countries have accused Russia of repeated incursions by drones and jets. The most recent was Thursday when NATO member Lithuania claimed that Russian fighters briefly entered its airspace. Moscow denied its planes were involved in nearby exercises had entered Lithuanian airspace. (Reporting and editing by Peter Graff in Tokyo)
US companies grapple with the economic divide as lower-income struggles mount
As tariffs increase uncertainty, U.S. businesses across all industries feel the pinch from the growing divide between low-income consumers and wealthy consumers.
As the latest quarter results continue to roll in, bellwethers like Coca-Cola and other companies such as hoteliers, toymakers, and financial-services providers have revealed their impact.
Mark Zandi is chief economist at Moody's Analytics. He said that businesses are feeling the impact of the growing gap between those who have and those who don't.
It is a difficult business environment for companies who don't cater the wealthy.
Affluent customers continue to support overall spending, despite rising prices. Lower-income households are pulling back on purchases or delaying them.
Target, which reported weak sales for several quarters due to missteps in merchandise, retail crime and inventory management said on Thursday that it would be cutting about 1,800 positions as part of the turnaround under the incoming CEO Michael Fiddelke.
The retailer is set to announce its quarterly results in the next month. It stocks a lot of non-essential items that consumers on lower incomes have avoided buying over the past year.
In a National Retail Federation poll, nearly two-thirds (up from 59% last season) of respondents plan to do most of their shopping for the holidays during Thanksgiving weekend to get discounts.
The deferred expenditure is evident in other areas as well.
Replacement auto parts retailer O'Reilly Automotive raised its annual revenue target after stronger-than-expected sales, but CEO Brad Beckham said some customers were delaying major repairs, a trend not seen earlier this year.
He told analysts that he was seeing some customers who were putting things off.
American Airlines raised its profit forecast for 2025 on Thursday, citing a robust demand for premium high-margin services.
CREDIT MARKET JITTERS
The U.S. Credit Market has been shaken by several high profile bankruptcy filings of lenders who serve primarily lower-income groups.
PROG Holdings cut its revenue forecast on Wednesday and announced that it would tighten lease approvals because of economic headwinds.
Steve Michaels, CEO of the company, said that while the unemployment rate was still low overall, "the increased financial stress and greater caution by lower-income consumers in our leasable category is a headwind for gross merchandise volume".
Consumer sentiment surveys indicate that consumers are pessimistic about inflation and future conditions, despite some estimates showing steady headline spending.
PrimaLend Capital Partners filed for bankruptcy on Wednesday. The company finances cars for people with bad or limited credit by using the "buy here-pay here" market.
Tricolor filed for bankruptcy in September. The company sold cars and provided auto loans to Hispanic low-income communities in the Southwest of the United States.
Some wins, some losses
This split is also visible within the individual companies.
Hasbro, the parent company of GI Joe and Barbie maker Mattel, reported a sharp drop in toy sales during the third quarter as retailers delayed their orders because customers were more cautious.
Hasbro's gaming division, which targets wealthier consumers and caters to them, has helped it achieve its annual target on Thursday.
Hilton Hotels and Wyndham Hotels, among others, have also announced a softening in their budget brands, and offered discounts to attract price-conscious travelers.
Geoffrey Ballotti, CEO of Wyndham Hotels, said that franchisees on lower scales were beginning to offer discounts to try and capture the demand at this time. We help franchisees in any way we can, and encourage them to keep rates at a level that makes sense.
Bet on smaller packs
Coca-Cola gains from its sparkling water and premium protein milk brands Topo Chico. It also sells its flagship drinks in smaller packs, targeted at consumers with lower incomes.
"Our system is adapting in the U.S. to both the upper and lower end. Both offer opportunities and challenges." John Murphy, Coca-Cola CFO, said that affordability and value were important at the lower end.
Dana Telsey, analyst at Telsey Advisory Group, says that the new 25% tariffs imposed by Donald Trump on medium- and heavy duty truck imports starting November 1 will add another challenge.
She said that for companies in high-competitive sectors, where price elasticities are high, they may have limited room to increase prices. This could force some firms to absorb a portion of the cost increases. (Reporting and editing by Sriraj K. Kalluvila in Bengaluru, Juveria T. Tabassum, Niket Nishant)
(source: Reuters)