AFP

Smoke signals: US House to vote for cannabis decriminalization

US lawmakers were expected to vote Friday to decriminalize marijuana nationwide, eliminating punishments for providing or possessing the drug in a major step towards bringing federal laws in line with the states.

The Marijuana Opportunity Reinvestment and Expungement (MORE) Act would remove its categorization alongside heroin and cocaine as a dangerous controlled narcotic under federal laws mandating tough sentences.

The administration in Washington is out of line with three-quarters of states that have legalized marijuana for medical use and a third, like Colorado and Washington, that have freed it for recreational use, too.

“If states are the laboratories of democracy, it is long past time for the federal government to recognize that this experiment in legalization has been a resounding success,” House Judiciary Committee Chairman Jerry Nadler, one of the bill’s sponsors, said.

Analysts expect the bill to clear the House, but are more skeptical about its prospects in the Senate, where Democrats would need 10 Republicans to overcome a 60-vote hurdle.

Cannabis is one of the fastest-growing industries in the United States, with sales hitting $25 billion in 2021, according to influential cannabis website Leafly, and projected to reach $40.5 billion by 2025.

A report released in February by the Seattle-based company said the legalized cannabis industry provides work for more than 400,000 Americans and created some 280 new jobs a day last year.

California, the first state to legalize medical marijuana in 1996, made $1 billion in tax revenue in the first two years after expanding to full recreational use in 2018.

But it remains illegal under federal law, posing significant hurdles for businesses that find themselves barred from accessing financial services and unable to secure loans or open bank accounts.

– Huge popular support –

The MORE Act would provide loans to help small businesses “owned and controlled by socially and economically disadvantaged individuals,” the bill reads.

Many people arrested for marijuana use would see their records expunged, and those jailed on federal cannabis charges would have their sentences reviewed. 

A federal tax would begin at five percent, with proceeds funding substance abuse treatment and legal counseling for the overwhelmingly Black communities harmed by the war on drugs.

The reform is hugely popular among Americans. A Pew Research poll found last year that 91 percent of adults think marijuana should be legal, either medically, recreationally or both.

But Republicans argue that decriminalization will increase use and create another layer of bureaucracy in the Treasury Department.

A similar bill passed the House in 2020 in a vote divided largely along party lines — but went nowhere in the then-Republican majority Senate.

“There is a high probability that Republicans will control the House next year. This debate will be a chance to see how many support legalization even if they object to the MORE Act,” Cowen analyst Jaret Seiberg said in a note last week reported by Bloomberg. 

“This would be especially relevant if the House goes Republican but Democrats manage to keep control of the Senate. It would mean there would be a path for cannabis legislation next year.”

There are signs of increasing sympathy for liberalization even in the Senate, however, which unanimously passed a bill last week that would expand research of marijuana.

“Current rules and regulations make it hard for researchers to study how marijuana and marijuana-derived medications can best be used to treat various conditions,” said it Democratic co-sponsor Dianne Feinstein. 

EU warns China against backing Russia's Ukraine war

Top EU officials warned China’s leader Xi Jinping at a virtual summit Friday that any attempt to aid Russia’s war in Ukraine could hurt business ties between the two economic superpowers. 

The EU and US worry that Beijing’s failure to condemn the invasion means it could be willing to help the Kremlin sidestep the impact of sanctions or even supply hardware to aid the war effort.

“No European citizen would understand any support to Russia’s ability to wage war. Moreover, it would lead to a major reputational damage for China here in Europe,” European Commission chief Ursula von der Leyen said. 

“The business sector is watching very closely the events and evaluating how countries are positioning themselves. This is a question of trust, of reliability and of course of decisions on long-term investments.”

Von der Leyen insisted that “China has an influence on Russia and therefore we expect China to take its responsibility to end this war and that Russia comes back to a peaceful negotiations solution”.

The talks with President Xi — initially intended to focus on issues like trade and climate change — were overshadowed by Western fears of Chinese support for Moscow in its attack on Ukraine.

Chinese state media reported that Xi told the EU the two sides should “play a constructive role on China-EU relations and major issues concerning global peace and development, as well as provide some stabilising factors to a turbulent world”.

“We hope that the EU can form its own perception of China, pursue its own independent policy towards China,” Xi was reported to have said. 

A Chinese foreign ministry official said after a first round of talks involving premier Li Keqiang that the two sides “agreed to work together to maintain peace, stability and prosperity in the world”.

– Frozen trade pact –

The EU’s relations with its largest trading partner had already been battered by tensions ahead of Moscow’s assault on Ukraine and the annual summit was skipped last year as ties frayed.

The exchange of tit-for-tat sanctions over the plight of China’s Uyghur minority, followed by Beijing’s trade coercion of EU-member Lithuania over Taiwan, soured the mood.

The downgrade in relations came surprisingly quickly after the EU and China secured the investment deal in late 2020 long sought by Germany.

Human rights concerns, and US pressure on the EU, sapped momentum, sowing distrust and sinking diplomatic ties.

– ‘No limits’ –

The tensions over Russia’s war on Ukraine now threaten to hit relations harder — even if the EU for now is shying off threatening sanctions on Beijing if its helps the Kremlin.

In a meeting with Russian counterpart Sergei Lavrov, Chinese Foreign Minister Wang Yi on Wednesday said that “China-Russia cooperation has no limits”, repeating a line used by Presidents Vladimir Putin and Xi.

European Council boss Charles Michel, who was also on the virtual summit, warned that the talks were not “business as usual”.

“Any attempts to circumvent sanctions or provide aid to Russia would prolong the war. This would lead to more loss of life and greater economic impact,” he said.

“This is not in anyone’s long-term interest. We will also remain vigilant on any attempts to aid Russia financially or militarily.”

But experts say the EU remains reluctant to go too far in pressuring Beijing as it fears hitting its mammoth trade ties at a time when soaring energy prices and inflation are already causing major economic pain.

“The idea of detaching China from Russia is a pipe dream,” said Sylvie Bermann, a former French ambassador to both Moscow and Beijing.

Falkland islanders, UK veterans look back and to the future

Tom Herring knows exactly what he was doing on April 2, 1982. He was 31, a member of the 3rd Battalion The Parachute Regiment, and on weekend leave before Easter.

Then Argentinian troops invaded the Falkland Islands and he was called back to barracks. “Four days later we were boarding a ship in Southampton,” he said.

Forty years on, the memories for military veterans are strong, as too is the conviction that the islands — nearly 13,000 kilometres (8,000 miles) from London — are British.

“Our job was to protect our citizens and we felt very good about that because we wanted to make sure they were OK,” the former sergeant told reporters in London.

“It was British sovereign territory,” he said at the National Army Museum, where a new exhibition has opened about the conflict and its impact on the islands.

In Britain and the Falklands, the anniversary of the start of the conflict is muted. Islanders in particular see Argentina’s invasion as nothing to celebrate.

But a year-long series of events are taking place to mark the 40th anniversary, including on June 14 to mark Liberation Day — a public holiday on the islands.

– Public consciousness –

In Britain in 1982, few people knew much about the Falklands. 

“They thought it was near us, in Scotland,” said Herring, who is chairman of the South Atlantic Medal Association, a group for British veterans.

At the time, prime minister Margaret Thatcher was driving through unpopular economic reforms. Unemployment was sky-high and her position was under threat.

But her high-risk deployment of nearly 30,000 troops — and their swift victory — hoisted the remote archipelago of 770 islands to public consciousness.

The task force returned from the South Atlantic to a sea of Union Jacks, giving a declining Britain a patriotic boost — and ensuring Thatcher a landslide re-election in 1983.

But veterans charity Help for Heroes said last week the conflict risks becoming a “forgotten war”, and many younger people were “clueless” about its details.

Not for Herring, who also served three tours of Northern Ireland.

He visited the islands in 2012, meeting an Argentinian officer with whom he is still in contact.

“He still believes in the islands being part of their country. We believe it’s British,” he said, but added: “We don’t argue about that.

“We talk about military esprit de corps. There are friendly relationships. It’s only the governments that seem to be at loggerheads.”

– Grateful –

The islanders too have moved on, thankful for their past liberation but with an eye on a more prosperous future.

Just 3,200 people live on the Falklands, most of them in the capital, Stanley. But with an average age of 38, many were not even born when the conflict began.

“Us islanders born in the aftermath of the conflict are all grateful to the veterans,” said Tamsin McLeod, a Falkland islander now at university in Britain.

“I can’t say that enough,” she added.

The operation claimed the lives of 255 British servicemen and three female civilians, along with 649 Argentinians.

The self-governing authorities in the Falklands are keen to push how much the islands have been transformed since the war.

They point to how it is financially self-sufficient, relying on the UK only for defence, and how it is now a hub for scientific research and biodiversity.

The thousands of landmines that were laid during the war, making swathes of the islands no-go areas, were finally cleared in late 2020.

Its main industries are fishing, agriculture and tourism, including to see its population of more than one million breeding penguins, whales and dolphins.

– Democratic rights –

UK government support for the Falklands under Thatcher’s successors has been unwavering, despite Argentina’s steadfast territorial claims.

“We will continue to defend the Falkland Islanders’ democratic rights and celebrate the modern, diverse community they have built,” said Amanda Milling, minister for UK overseas territories.

“This is an important reminder that all peoples have the right to determine their own future.”

Leona Roberts, a member of the Falklands legislative assembly, is thankful to the veterans and to Thatcher for her “incredibly decisive” action.

“We’ve seen how far we’ve come 40 years since,” said Roberts, who aged 10 in 1982 cowered from the sound of gunfire under a kitchen table and an overturned sofa.

“We built the country from nothing. It (the conflict) allowed us to move on.”

First audio recorded on Mars reveals two speeds of sound

The first audio recordings on Mars reveal a quiet planet with occasional gusts of wind where two different speeds of sound would have a strange delayed effect on hearing, scientists said Friday.

After NASA’s Perseverance rover landed on Mars in February last year, its two microphones started recording, allowing scientists to hear what it is like on the Red Planet for the first time.

In a study published in the Nature journal on Friday, the scientists gave their first analysis of the five hours of sound picked up by Perseverance’s microphones.

The audio revealed previously unknown turbulence on Mars, said Sylvestre Maurice, the study’s main author and scientific co-director of the shoebox-sized SuperCam mounted on the rover’s mast which has the main microphone.

The international team listened to flights by the tiny Ingenuity helicopter, a sister craft to Perseverance, and heard the rover’s laser zap rocks to study their chemical composition — which made a “clack clack” sound, Maurice told AFP.

“We had a very localised sound source, between two and five metres (six to 16 metres) from its target, and we knew exactly when it was going to fire,” he said.

The study confirmed for the first time that the speed of sound is slower on Mars, travelling at 240 metres per second, compared to Earth’s 340 metres per second.

This had been expected because Mars’ atmosphere is 95 percent carbon dioxide — compared to Earth’s 0.04 percent — and is about 100 times thinner, making sound 20 decibels weaker, the study said.

– ‘I panicked’ –

But the scientists were surprised when the sound made by the laser took 250 metres a second — 10 metres faster than expected.

“I panicked a little,” Maurice said. “I told myself that one of the two measurements was wrong because on Earth you only have one speed of sound.”

They had discovered there are two speeds of sound on the surface of Mars — one for high-pitched sounds like the zap of the laser, and another for lower frequencies like the whir of the helicopter rotor.

This means that human ears would hear high-pitched sounds slightly earlier.

“On Earth, the sounds from an orchestra reach you at the same speed, whether they are low or high. But imagine on Mars, if you are a little far from the stage, there will be a big delay,” Maurice said.

“All of these factors would make it difficult for two people to have a conversation only five metres (16 feet) apart”, the French CNRS research institute said in a statement.

– ‘Scientific gamble’ pays off –

It was otherwise so quiet on Mars that the scientists repeatedly feared something was wrong, the CNRS said, possibly provoking memories of two failed previous attempts in 1999 and 2008 to record sound there.

“There are few natural sound sources with the exception of the wind,” the scientists said in a statement linked to the study. 

The microphones did pick up numerous “screech” and “clank” sounds as the rover’s metal wheels interacted with rocks, the study said.

The recording could also warn about problems with the rover — like how drivers sense something’s wrong when their car starts making strange noises.

Maurice said he felt the “scientific gamble” of taking microphones to Mars was a success. 

Thierry Fouchet of the Paris Observatory, who was also involved in the research, said that listening to turbulence, such as vertical winds known as convection plumes, will “allow us to refine our numerical models for predicting climate and weather”.

Future missions to Venus or Saturn’s moon Titan could also now come equipped with microphones.

And Perseverance is far from done eavesdropping. While its core mission lasts just over two years, it could remain operational well beyond that — the Curiosity rover is still kicking nine years into a planned two-year stint.

Stocks rise, oil steady before US jobs data, IEA meet

The world’s major stock markets mostly rose and oil prices steadied Friday as investors awaited US jobs data for an update on the world’s biggest economy, faced with soaring global inflation. 

Also Friday, the International Energy Agency was holding an emergency meeting on possible new measures to calm oil prices fuelled by the reopening of economies post pandemic lockdowns and following the invasion of Ukraine by major crude producer Russia.

Fallout from the war sent consumer prices in the eurozone surging by a record 7.5 percent, EU statistics agency Eurostat said heading into the weekend.

“Investor concerns have persisted about the continuing conflict in Ukraine and its inflationary effect on prices and, of course, the  Federal Reserve’s response,” noted Stephen Innes of SPI Asset Management.

“Fed rate hike expectations should react asymmetrically to any surprises in Friday’s US employment report for March.” 

The Fed has joined other central banks in hiking interest rates to combat decades-high inflation that is curbing economic growth.

Stock markets were slightly upbeat Friday after their worst quarter since the early days of the pandemic.

Traders are struggling to ascertain the outlook for the next three months, largely owing to uncertainty over energy prices.

The second quarter of 2022 “is going to start as messily as the first quarter has finished, with markets buffeted by a multitude of strong winds from various directions, with the outcome no clearer for the future than ever”, said Jeffrey Halley, analyst at OANDA, a foreign exchange firm.

The upcoming earnings season will be closely watched to see what impact higher inflation and the war has had on firms’ bottom line and their forecasts for the year ahead.

On Thursday, US President Joe Biden announced a record release of oil onto the market — one million barrels of US government oil every day for six months.

Biden described the move as a “wartime” measure that will defuse Russia’s leverage as an energy power.

However, while the move to ease a global supply crisis was welcomed, commentators warned it would only be a stopgap and could not be a long-term solution.

“It is worth keeping in mind that 180 million barrels is approximately nine days of US demand,” said Innes.

“And while one million barrels per day is better than nothing and can help balance the four million a day lost from Russia for about six months, what happens after?”

US oil prices briefly dropped under $100 on Friday.

– Key figures around 1100 GMT –

London – FTSE 100: UP 0.1 percent at 7,526.49 points

Frankfurt – DAX: UP 0.3 percent at 14,459.17

Paris – CAC 40: UP 0.5 percent at 6,692.75

EURO STOXX 50: UP 0.6 percent at 3,925.83

Tokyo – Nikkei 225: DOWN 0.6 percent at 27,665.98 (close)

Hong Kong – Hang Seng Index: UP 0.2 percent at 22,039.55 (close)

Shanghai – Composite: UP 0.9 percent at 3,282.72 (close)

New York – Dow: DOWN 1.6 percent at 34,678.35 (close)

Brent North Sea crude: UP 0.3 percent at $104.97 per barrel

West Texas Intermediate: DOWN 0.1 percent at $100.20 per barrel

Euro/dollar: DOWN at $1.1063 from $1.1067 late Thursday

Pound/dollar: UP at $1.3144 from $1.3143

Euro/pound: DOWN at 84.15 pence from 84.20 pence

Dollar/yen: UP at 122.39 yen from 121.69 yen

Ukraine war pushes eurozone inflation to new record

Spiralling energy bills and disruptions caused by the war in Ukraine caused consumer prices in the eurozone to surge by a new record of 7.5 percent, EU statistics agency Eurostat said Friday.

Last month’s rise marked a further acceleration in inflation from February, which at 5.9 percent year-on-year was already a eurozone record, it said.

The surge has been fuelled by a 44.7-percent hike in energy prices over the year as Europe found itself caught in an oil and gas crunch due to tensions with Russia over its invasion of Ukraine.

European Central Bank (ECB) president Christine Lagarde warned Wednesday that a prolonged Ukraine conflict will keep energy prices and the cost of living spiralling, blighting a post-Covid recovery.

Similar leaps in inflation have been seen in the United States where the Federal Reserve is committed to a long series of interest hikes to cool the economy and stem the price hikes.

But the ECB is reluctant for now to take similar measures, convinced that the rise in the cost of living is linked to the war as well as lingering disruptions to the global supply chains brought on by the coronavirus pandemic.

But given inflation’s relentless pace, analysts said Lagarde would soon have no choice but to rethink her policy.

“With euro-zone inflation rising even further above the ECB’s forecast, and likely to remain very high for the rest of the year, we think it won’t be long before the Bank starts raising interest rates,” said Jack Allen-Reynolds at Capital Economics.

– ‘No painless options’ –

Of particular concern for policy makers is core inflation, which strips out volatile components such as energy and food. It soared to 3.0 percent in March, Eurostat said.

This is a full percentage point on top of the ECB’s target of two percent and will give armour to critics that argue for interest hikes to face down inflation.

“The inflation data speak for themselves,” said Joachim Nagel, the central bank governor from Germany, Europe’s biggest economy that traditionally wants stronger medicine against higher prices.

“Monetary policy should not pass up the opportunity for timely countermeasures,” he said.

But economists warn that raising interest rates would put the brakes on the post pandemic recovery, with officials already warning that current forecasts for growth in Europe are certain to take a hit due to the war.

“The question is whether the worst is behind us now and that seems doubtful,” said Bert Colijn of ING bank.

“The ECB is running out of painless options to battle current economic problems, so we expect it to tread carefully,” he added.

Metaverse builders grapple with sex harassment conundrum

Nina Jane Patel felt confined and under threat as the male avatars closed in, intimidating her with verbal abuse, touching her avatar against her will and photographing the incident.

The abuse took place in a virtual world but it felt real to her, and this kind of story is causing severe headaches for architects of the metaverse — the 3D, immersive version of the internet being developed by the likes of Microsoft and Meta.

“I entered the shared space and almost immediately three or four male avatars came very close to me, so there was a sense of entrapment,” Patel told AFP.

“Their voices started verbally and sexually harassing me, with sexual innuendos,” said the London-based entrepreneur.

“They touched and they groped my avatar without my consent. And while they were doing that, another avatar was taking selfie photos.”

Patel, whose company is developing child-friendly metaverse experiences, says it was “nothing short of sexual assault”.  

Her story and others like it have prompted soul-searching over the nature of harassment in the virtual world, and a search for an answer to the question: can an avatar suffer sexual assault?

– Tricking the brain –

“VR (virtual reality) relies on, essentially, tricking your brain into perceiving the virtual world around it as real,” says Katherine Cross, a PhD student at the University of Washington who has worked on online harassment.

“When it comes to harassment in virtual reality — for instance, a sexual assault — it can mean that in the first instant your body treats it as real before your conscious mind can catch up and affirm this is not physically occurring.”

Her research suggests that despite the virtual space, such victimisation causes real-world harm.

Underlining this point, Patel explained that her ordeal did briefly continue outside of the constructed online space.

She said she eventually took off her VR headset after failing to get her attackers to stop but she could still hear them through the speakers in her living room.

The male avatars were taunting her, saying “don’t pretend you didn’t like it” and “that’s why you came here”. 

The ordeal took place last November in the “Horizon Venues” virtual world being built by Meta, the parent company of Facebook.

The space hosts virtual events like concerts, conferences and basketball games. 

The legal implications are still unclear, although Cross suggests that sexual harassment laws in some countries could be extended to cover this type of act.  

– Protective bubbles –

Meta and Microsoft — the two Silicon Valley giants that have committed to the metaverse — have tried to quell the controversy by developing tools that keep unknown avatars away.

Microsoft has also removed dating spaces from its Altspace VR metaverse. 

“I think the harassment issue is one that will actually get resolved because people will self-select which platform they use,” says Louis Rosenberg, an engineer who developed the first augmented reality system in 1992 for the US Air Force research labs.

The entrepreneur, who has since founded a company specialising in artificial intelligence, told AFP he was more concerned about the way companies will monetise the virtual space.

He says a model based on advertising is likely to lead to companies capturing all kinds of personal data, from users’ eye movements and heart rate, to their real-time interactions.

“We need to change the business model,” he says, suggesting that safety would be better protected if funding came from subscriptions.

However, tech companies have made themselves fantastically wealthy through a business model based on targeted advertising refined by vast streams of data.

And the industry is already looking to get ahead of the curve by setting its own standards.

The Oasis Consortium, a think tank with ties to several tech companies and advertisers, has developed some safety standards it believes are good for the metaverse era.

“When platforms identify content that poses a real-world risk, it’s essential to notify law enforcement,” says one of its standards.

But that leaves the main question unresolved: how do platforms define “real-world risk”?

Markets mixed at start of new quarter, while oil extends losses

Equities were mixed Friday after their worst quarter since the early days of the pandemic as traders assess the impact of the war in Ukraine and the Federal Reserve’s plans to fight surging inflation by ramping up interest rates.

And oil extended a sell-off following Thursday’s plunge in response to news that the United States would release a million barrels a day from its reserves as it looks to rein in a price rally fuelled by Russia’s conflict.

Investors suffered a torrid first three months, with markets across the planet first plunged into turmoil over central bank moves to tighten policy and reel in their Covid-era financial support measures, and then by Russian President Vladimir Putin’s invasion of Ukraine.

Inflation had already rocketed to multi-decade highs in several countries before the war in eastern Europe exacerbated the problem as crucial crude supplies from Russia were slashed and sent its price to six-year highs above $100.

The developments came as profit-takers cashed out after a near two-year rally fuelled by central bank and government largesse.

Despite a pick-up in recent weeks, most indexes finished the quarter in the red.

Traders are struggling to ascertain the outlook for the next three months, with the war showing no signs of ending and the Federal Reserve just getting started on its campaign of sharp rate hikes.

The second quarter of 2022 “is going to start as messily as the first quarter has finished, with markets buffeted by a multitude of strong winds from various directions, with the outcome no clearer for the future than ever,” said OANDA’s Jeffrey Halley.

And Anwiti Bahuguna, at Columbia Threadneedle Investments, told Bloomberg Television that a lowering of growth forecasts for the United States, Europe and China are “something to watch very carefully”.

The upcoming earnings season will be closely watched to see what impact higher inflation and the war has had on firms’ bottom line and their forecasts for the year ahead.

The release of US jobs data later in the day will be closely followed for an idea about the state of the world’s top economy.

All three main indexes on Wall Street finished more than one percent down but Asia ended mixed after a poor start.

Tokyo, Sydney, Seoul, Taipei, Manila, and Wellington were all down but Hong Kong finished higher thanks to a late rally while Shanghai, Mumbai, Singapore, Jakarta and Bangkok were also up.

London, Paris and Frankfurt also rose in morning trade.

Oil prices shed more than one percent, extending a selloff on Thursday that saw WTI lose seven percent after Joe Biden announced he would release up to 180 million barrels over six months.

The US benchmark was trading below $99.

The president described the move as a “wartime” measure that will defuse Russia’s leverage as an energy power.

However, while the move to ease a global supply crisis was welcomed, commentators warned it would only be a stopgap and could not be a long-term solution.

“It is worth keeping in mind that 180 million barrels is approximately nine days of US demand,” said SPI Asset Management’s Stephen Innes. “And while one million barrels per day is better than nothing and can help balance the four million a day lost from Russia for about six months, what happens after?”

He added: “Markets are still tight, but six months could be a meaningful lifeline and reduce the chances of (more than) $150 oil.”

– Key figures around 0810 GMT –

Tokyo – Nikkei 225: DOWN 0.6 percent at 27,665.98 (close)

Hong Kong – Hang Seng Index: UP 0.2 percent at 22,039.55 (close)

Shanghai – Composite: UP 0.9 percent at 3,282.72 (close)

London – FTSE 100: UP 0.3 percent at 7,535.23

Brent North Sea crude: DOWN 1.2 percent at $103.47 per barrel

West Texas Intermediate: DOWN 1.5 percent at $98.78 per barrel

Euro/dollar: DOWN at $1.1059 from $1.1067 late Wednesday

Pound/dollar: DOWN at $1.3122 from $1.3143

Euro/pound: UP at 84.28 pence from 84.20 pence

Dollar/yen: UP at 122.67 yen from 121.69 yen

New York – Dow: DOWN 1.6 percent at 34,678.35 (close)

Asian markets fall further and oil extends steep losses

Equities mostly fell Friday after their worst quarter since the early days of the pandemic as traders assess the impact of the war in Ukraine and the Federal Reserve’s plans to fight surging inflation by ramping up interest rates.

And oil extended a sell-off following Thursday’s plunge in response to news that the United States would release a million barrels a day from its reserves as it looks to rein in a price rally fuelled by Russia’s conflict.

Investors suffered a torrid first three months, with markets across the planet first plunged into turmoil over central bank moves to tighten policy and reel in their Covid-era financial support measures, and then by Russian President Vladimir Putin’s invasion of Ukraine.

Inflation had already rocketed to multi-decade highs in several countries before the war in eastern Europe exacerbated the problem as crucial crude supplies from Russia were slashed and sent its price to six-year highs above $100.

The developments came as profit-takers cashed out after a near two-year rally fuelled by central bank and government largesse.

Despite a pick-up in recent weeks, most indexes finished the quarter in the red.

Traders are struggling to ascertain the outlook for the next three months, with the war showing no signs of ending and the Federal Reserve just getting started on its campaign of sharp rate hikes.

The second quarter of 2022 “is going to start as messily as the first quarter has finished, with markets buffeted by a multitude of strong winds from various directions, with the outcome no clearer for the future than ever,” said OANDA’s Jeffrey Halley.

And Anwiti Bahuguna, at Columbia Threadneedle Investments, told Bloomberg Television that a lowering of growth forecasts for the United States, Europe and China are “something to watch very carefully”.

The upcoming earnings season will be closely watched to see what impact higher inflation and the war has had on firms’ bottom line and their forecasts for the year ahead.

The release of US jobs data later in the day will be closely followed for an idea about the state of the world’s top economy.

All three main indexes on Wall Street finished more than one percent down and Asia was also mostly lower.

Tokyo, Hong Kong, Sydney, Seoul, Taipei, Manila, Jakarta, Bangkok and Wellington were all down. 

London, Paris and Frankfurt rose at the open.

However, Shanghai rose as traders kept an eye on the second phase of a Covid lockdown in China’s biggest city that will see restrictions imposed on the western side. Mumbai and Singapore were also up.

Oil prices shed at least one percent, extending a selloff on Thursday that saw WTI lose seven percent after Joe Biden announced he would release up to 180 million barrels over six months.

The US benchmark struggled to break back above $100.

The president described the move as a “wartime” measure that will defuse Russia’s leverage as an energy power.

However, while the move to ease a global supply crisis was welcomed, commentators warned it would only be a stopgap and could not be a long-term solution.

“It is worth keeping in mind that 180 million barrels is approximately nine days of US demand,” said SPI Asset Management’s Stephen Innes. “And while one million barrels per day is better than nothing and can help balance the four million a day lost from Russia for about six months, what happens after?”

He added: “Markets are still tight, but six months could be a meaningful lifeline and reduce the chances of (more than) $150 oil.”

– Key figures around 0720 GMT –

Tokyo – Nikkei 225: DOWN 0.6 percent at 27,665.98 (close)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 21,957.38

Shanghai – Composite: UP 0.9 percent at 3,282.72 (close)

London – FTSE 100: UP 0.1 percent at 7,526.08

Brent North Sea crude: DOWN 1.0 percent at $103.69 per barrel

West Texas Intermediate: DOWN 1.1 percent at $99.17 per barrel

Euro/dollar: UP at $1.1069 from $1.1067 late Wednesday

Pound/dollar: DOWN at $1.3125 from $1.3143

Euro/pound: UP at 84.33 pence from 84.20 pence

Dollar/yen: UP at 122.47 yen from 121.69 yen

New York – Dow: DOWN 1.6 percent at 34,678.35 (close)

Young Sami return to reindeer herding despite climate fears

In the snowy Arctic darkness Suvi Kustula throws bundles of lichen to her excitable herd of reindeer, their antlers lit up by her van’s headlights.

“I was just a few months old when I fed my first reindeer,” the 24-year-old laughed, saying she “pretty much always knew” she would follow her father and grandfather into herding.

“I managed one and a half weeks living in a city before I switched to reindeer herding college,” Kustula told AFP. 

“It’s a way of life. Reindeer before everything.”

Twenty years ago the ancient tradition of herding reindeer for meat and fur appeared to be in decline in Lapland, the vast area of forest and tundra which spans northern Finland, Sweden, Norway and Russia’s Kola Peninsula.

Young people felt they had to move south “to make a good life”, said Anne Ollila, head of Finland’s Reindeer Herders’ Association. 

But nowadays nearly a quarter of Finland’s 4,000 herders are under 25, as more young people choose to stay or return home to Lapland. 

The number of women entering the traditionally male-dominated profession is also at its highest ever.

“People have learned to better appreciate freedom and nature and tradition,” Ollila said. “Even if you can’t make big money.”

Instead herders get to live an outdoor life, dictated by the seasons and the weather in the often stunningly beautiful Arctic wilderness. 

But the new generation faces an array of emerging challenges, including a warming climate and pressure from industries keen to exploit Lapland’s resource-rich landscape.

– Indigenous culture revival –

A herder needs intimate knowledge of the landscape and how their animals behave to keep tabs on their reindeer, which roam freely across the plains and forests.

And asking how many animals a herder has is a big no-no.

“It’s a bit like if I asked you how much you have in your bank account,” Kustula laughed.

Most young herders are either born in or have married into a reindeer herding family, Ollila said.

Many belong to the indigenous Sami community, who have herded reindeer across northern Lapland for centuries. 

Oppressed for years by Nordic governments, many Sami have in recent decades begun reclaiming their traditional culture and language.

“Some earlier generations were ashamed of being Sami,” Ollila says. “But I think the young people choosing reindeer herding are very proud of it.”

– Long periods away –

Herding has been passed down through generations of the Lansman family, who live on Finland’s northern border with Norway.

In late November, with the sun setting at 1 pm — not to rise again for seven weeks — Anna Nakkalajarvi-Lansman and her two children climbed onto their snowmobile and drove to the enclosure where their children’s two reindeer live.

“The lighter one’s mine, called Golden Horn,” said six-year-old Antti Iisko, as he and his sister scatter lichen for the animals to eat.

He wants to be a herder when he grows up, while Anni-Sivia, eight, would like to be a vet.

“I’ll be able to give the reindeer their vaccinations,” Anni-Sivia told AFP.

“Our daily routine depends on the season and whether we’re helping out with the herding,” explained their mother Anna Nakkalajarvi-Lansman, a Sami musician.

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Two hours’ drive away, father Asko Lansman had just spent a fortnight at a meat-packaging plant. 

Demand is soaring, Lansman told AFP, standing in front of piles of boxes of vacuum-packed reindeer meat ready to be delivered across Finland.

“It’s my greatest hope that the kids continue the work, just like it was my father’s hope when I was young,” he said.

– New challenges –

The job has changed a lot, Lansman said, with quad bikes, helicopters and now drones making gathering the reindeer much easier.

But with temperatures in the Arctic warming three times faster than the rest of the planet, climate change is bringing new challenges.

The shorter winters can turn snow into ice “and cause the reindeers’ drinking holes to freeze over”, Lansman said, as well as making their food inaccessible.

Numerous proposed mining and energy projects across Lapland also threaten the animals’ pasture lands, herders warn.

“The more the land use changes, the less space we’ll have for reindeer,” Kustula said.

“I am hopeful about the future, she insisted, “but the government should listen to us more.”

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