AFP

US Capitol riot panel to get inside Trump's head: aides

Lawmakers investigating the 2021 attack on the US Capitol plan to journey inside the mind of Donald Trump on Thursday during the final public presentation on their sprawling probe before crucial midterm elections.

The House of Representatives panel has already unveiled reams of evidence on the former president’s involvement in a labyrinthine series of connected schemes to overturn the 2020 election.

In what could be its last public session before it issues a report on its findings, the panel of seven Democrats and two Republicans has promised fresh damning evidence on the insurrection.

“And we’re going to bring a particular focus on the former president’s state of mind and his involvement in these events as they unfolded,” a select committee aide said.

Blockbuster witness testimony across eight hearings in the summer provided stunning examples of Trump and his allies pressuring election officials and trying to get lawfully-cast votes nullified in swing states, and of Trump’s inertia amid the mob uprising on January 6, 2021.

The aide said that while each previous hearing had dug into separate aspects of the plan to overturn the election and block the transfer of power, Thursday’s session would reach back before January 6 to tell the broader story.

“So what you’re going to see is a synthesis of some evidence we’ve already presented with that new, never-before-seen information to illustrate Donald Trump’s centrality to the scheme from the time prior to the election,” he added.

– ‘Right to the violence’ –

The panel plans to release its final report by the end of the year, but after the November 8 elections that decide which party controls Congress. A preliminary report may come out beforehand.

It will be the first hearing without live witnesses — instead featuring new video evidence, including footage from a Danish film crew shot for a documentary about longtime Trump ally Roger Stone.

In one clip from the day before the 2020 election, the notorious self-styled “dirty trickster” is seen telling the filmmakers he has no interest in waiting to contest the vote tally.

“Let’s get right to the violence,” says the 70-year-old Republican operative.

Stone, who has not been charged in connection with the riot, has challenged the authenticity of the clips.

Committee aides said there would also be new video footage showing “efforts to respond in real time to the violence… as that violence was unfolding.”

The panel also plans to unveil evidence developed from “hundreds of thousands” of pages of documents surrendered by the Secret Service, the aides said, as lawmakers seek to understand why certain agents’ text messages from the eve of the insurrection and the day itself went missing.

The records are expected to confirm evidence from earlier hearings that Trump riled up his supporters despite being repeatedly warned of looming violence on January 6.

– Criminal referrals? –

Former White House aide Cassidy Hutchinson testified in June that Trump was briefed that some of his supporters had turned up armed, and demanded they be permitted into his rally and that he be allowed to lead them at the Capitol.

Trump, who urged his supporters in a fiery speech near the White House to “fight like hell,” was impeached for inciting the mob to storm Congress to halt the peaceful transfer of power to Joe Biden.

The defeated president’s election fraud falsehoods inspired a welter of restrictive voting laws in conservative states as he endorsed a crop of Republican candidates running to oversee future elections who have tried to undermine faith in the last one.

The hearing comes with the former president’s legal woes mounting, as the Justice Department probes the mishandling of government secrets found at his Florida beach club, Mar-a-Lago.

Individual panelists have publicly suggested Attorney General Merrick Garland should charge Trump over the Capitol attack, although the committee has not announced a formal decision on whether it will make criminal referrals.

It is looking increasingly unlikely that members will subpoena Trump and his vice president Mike Pence, who was threatened by the president’s supporters during the insurrection.

G20 to meet under Ukraine war, inflation cloud

A divided G20 holds talks on Thursday under the shadow of multiple crises, from Russia’s war in Ukraine to a global economic slowdown, on top of soaring inflation and climate change.

Finance ministers and central bankers from the Group of 20 major economies are gathering in Washington during annual meetings of the IMF and World Bank this week that have underscored the multiple challenges the world is facing.

The list of threats ranges from rising interest rates to soaring food prices, along with growing poverty and natural disasters blamed on climate change.

The IMF lowered its growth forecast for the world economy for next year earlier this week, warning that the “worst is yet to come.”

But the G20, which includes Russia, is expected to close its meeting without a joint communique, as in its previous gatherings presided by Indonesia this year.

“It may be difficult to have a joint communique,” said a source in the French economy ministry.

While Western nations have imposed unprecedented sanctions on Russia, other countries have maintained economic ties with Moscow, with India and China stepping up their purchases of Russian oil.

The Group of Seven wealthy democracies is now looking to cap the prices of Russian crude exports, a move aimed at stripping the country of a major source of funding for its war effort.

The G7 — which includes Britain, Canada, France, Germany, Italy, Japan and the United States — said Wednesday it had made “significant progress” in key parts of its proposal, noting that it had added Australia to its coalition.

Gaining broad global approval for a price cap is a key challenge for the proposal.

The Saudi-led OPEC group of oil exporters has angered the United States by agreeing on a drastic production cut with Russia and other allies, which could send energy prices soaring even higher.

US President Joe Biden warned of “consequences” for Saudi Arabia in an interview with CNN this week.

– ‘We’re cooked’ –

Tensions within the G20 come as leaders are due to meet at a summit in Bali, Indonesia, next month that could see Biden share the same venue as Russian President Vladimir Putin and another rival, Chinese leader Xi Jinping.

The lack of consensus within the group also comes ahead of the United Nations’ COP27 climate summit in Egypt in November.

Climate change has been among the central topics of the IMF and World Bank meetings this week.

IMF Managing Director Kristalina Georgieva said that the world has to invest up to $6 trillion per year if it is to meet the Paris agreement goal of reaching net-zero carbon emissions by 2050 in order to limit the increase in global temperatures.

“If we do not shift our trajectory this decade, we’re cooked. If we don’t want to be cooked, then we should speed up,” Georgieva said Wednesday in talks on climate change.

Mideast petrolheads hope eSports takes them to the track

Virtual cars whizz by with engines roaring, as 26 drivers vie for the top spot at an online tournament in Jordan — many dreaming one day of transitioning to real racers.

Professional racing requires not only talent, but also support from well-established teams and sponsors who can help cover the hefty costs that go into acquiring and maintaining race cars.

Young people in the Middle East and elsewhere with a passion for the sport have instead been opting for a far more affordable and accessible alternative followed by millions of fans — eSports.

The dimly lit event hall in Jordan’s capital was buzzing with excitement this weekend, as the racers at the Toyota Gazoo Middle East and North Africa eSports Cup assumed positions behind simulators, representing 13 countries across the region.

“It’s a great experience,” said the youngest competitor, 16-year-old Khaled Dashti of Kuwait, encouraging others “to give this kind of racing a try”.

Dashti said he would love to swap computer games for the driving wheel. 

“My dream is to go into GT racing,” he said. “As these games evolve, there will be more opportunities”, he added.

– ‘Sport of the future’ –

One racer who has made the transition is Japan’s Yusuke Tomibayashi, a former eSports champion who now competes at Super GT300 races.

At the race in Amman, he said he was “amazed” to see how quickly virtual racing was taking hold in the Middle East.

There as part of a marketing push to illustrate the link between the virtual and real-life sport, he played against Lebanon’s Karl Etyemezian — and lost.

Since the 1980s, virtual simulators have given players the chance to feel the rush of driving a race car.

Today, Tomibayashi said the starkest difference is that virtual racing cannot convey how gravity affects real-life drivers as they take the track corners.

Accidents happen and teams must stop to change tires and refuel like the real thing — save for risks and the smell of fuel and burning rubber.

“It’s not only the drivers who get an adrenaline rush, but also the crowd,” said Fawaz Dahdal, 28, watching the tournament for the second year in a row.

“It is no longer just a game,” he said. “It’s the sport of the future.”

The races were projected live on a big screen, accompanied by live commentary and shouts of support from a crowd of some 500 fans — with many more watching from home.

“eGames take up a lot of my children’s time,” said Rana Alyan, who took her son Bakr, 11, to watch the tournament. “But they only practise after they finish their homework.”

– Millions watching –

The racers in Amman were playing “Gran Turismo”, endorsed since 2018 and sponsored by the International Automobile Federation (FIA).

Nadim Haddad, head of Jordan Motorsport’s eSports department and a member of the FIA eSports Commission, said that Covid lockdowns “contributed to the spread of digital games.”

After a national championship organised in 2020, players moved on to a regional cup, he explained.

The first Middle Eastern cup last year drew around 13.8 million viewers online, about 70 percent aged between 18-34, according to figures shared by digital strategy firm APEX.

Over a million people watched the cup from the United Arab Emirates alone.

Applause rang through the hall in Amman as Oman’s Mohammed al-Barwani, 34, was declared the winner of this year’s tournament on Saturday, qualifying him for the world grand finals.

“I wasn’t expecting this victory,” Barwani said.

While some of his rivals had accidents, he also attributed his success to a strategy of conserving fuel and tyres.

“We didn’t make any mistakes,” he said.

Barwani said his goal now is to get into drifting — a motorsport which involves deliberately oversteering the car to slip, skid and spin.

“I started my journey on simulators,” he said. “If I get a change in real-life races, I won’t miss it.”

'Everything has collapsed': Russia's draft tanks small businesses

In his brand new co-working space in Chelyabinsk, a city in central Russia, entrepreneur Maxim Novikov is counting the empty seats.

The space is usually overflowing with designers, programmers and young Russians working on their start-ups.

But since President Vladimir Putin announced a mobilisation of hundreds of thousands of young Russian men last month, the 33-year-old has lost much of his clientele.

“Many have stopped coming,” he told AFP by phone.

Instead, they are filling the depleted ranks of Russia’s army or they are among the tens of thousands of others who have fled south for neighbouring Kazakhstan.

The Kremlin’s mobilisation has brought uncertainty and chaos to businesses already hard-hit by sanctions and still recovering from the fallout of the pandemic.

In the last three weeks, a little more than half of the 77 spots in Novikov’s co-working place were occupied.

He has “no idea” if the people who fled or were drafted will keep paying subscription fees, which cost between 70 and 130 dollars.

And now Novikov is worried about his loans.

“Turnover has already dropped by more than 40 percent this year,” Novikov, an architecture graduate, said. 

“I wanted to buy a third space but for the moment it is not possible to take the risk.” 

 – ‘Projects on hold’ – 

But he is far from the only business owner in Russia who is growing more nervous over the workforce vacuum.

“It means projects are being put on hold and private companies will be afraid to invest,” said Natalia Zubarevich, an economist at Moscow State University.

Russia’s economy has already been battered this year by unprecedented Western sanctions in response to Putin’s decision to send troops to Ukraine on February 24.

But Zubarevich said mobilisation was an “additional aggravating factor.”

She added she was not surprised young men from the provinces were joining the army, attracted by monthly payouts that are sometimes almost as much as their annual salaries. 

Meanwhile, in glitzy central Moscow, 45-year-old Yelena Irisova is distraught at seeing her company, which produces luxury leather bags, stop production.

She employs around ten people in the small business. 

But two of her craftsmen left the company in recent weeks — one fearing mobilisation, another to help her daughter whose husband had been sent to the front.

“After September 21, everything collapsed,” Irisova said. “Our sales fell threefold — from 10 to three orders a day.”

She says her savings will keep her going “a month or two, but not more.”

– Almost no orders – 

No Russian business seems unscathed.

Katerina Iberika, 39, who owns a pastry shop specialising in birthday cakes in Moscow, is also facing ruin. 

Her five employees are women with exemptions from mobilisation. But it’s the low morale among the public that’s endangering her business. 

“Cancellations of orders for big events started two days before mobilisation,” Iberika told AFP.

Now she gets nearly no orders at all, except for “very small” ones. 

She is considering leaving Russia.

In increased isolation — and hit by sanctions and mobilisation — an anxious Russian society is watching its spending closely. 

“People are looking to put their money aside,” Sofya Donets, chief economist for Russia at Renaissance Capital, said.

“They’re not going to overspend.”

Some industries have been harder hit than others by a sudden lack of men. 

Employers have sounded the alarm in recent days, asking the government for exemptions from mobilisation, in particular for small and medium-sized companies.

Russia’s economic development ministry told AFP that it had drawn up a list of measures for these “problematic issues”.

It said it had facilitated grants and micro credits. 

“A mobilised entrepreneur will be able to suspend the fulfilment of obligations” to pay the loans back, the ministry said.

Analyst Sofya Donets expects “more intervention and state aid” to calm the effects of mobilisation. 

Especially since Russian coffers continue to fill up thanks to its energy exports.

Wildlife populations plunge 69% since 1970: WWF

Wild populations of monitored animal species have plummeted nearly 70 percent in the last 50 years, according to a landmark assessment released Thursday that highlights “devastating” losses to nature due to human activity.

Featuring data from 32,000 populations of more than 5,000 species of mammals, birds, amphibians, reptiles and fish, the WWF Living Planet Index shows accelerating falls across the globe.

In biodiversity-rich regions such as Latin America and the Caribbean, the figure for animal population loss is as high as 94 percent.

Globally, the report found that monitored animal populations had fallen 69 percent since 1970.

Marco Lambertini, director general of WWF International, said his organisation was “extremely worried” by the new data. 

“(It shows) a devastating fall in wildlife populations, in particular in tropical regions that are home to some of the most biodiverse landscapes in the world,” he said.

Mark Wright, director of science at WWF, said the figures were “truly frightening”, particularly for Latin America.

“Latin America is renowned for his biodiversity of course, it’s really important for lots of other things as well,” he said. 

“It’s super important for regulating the climate. We estimate currently there’s something like 150 to 200 billion tonnes of carbon wrapped up in the forests of the Amazon.”

That is equivalent to 550 to 740 billion tonnes of CO2, or 10 to 15 times more than annual greenhouse gas emissions at current rates.

The index found that freshwater species had declined more than those found in any other habitat, with an 83-percent population fall since 1970.

The report found that the main drivers of wildlife loss are habitat degradation due to development and farming, exploitation, the introduction of invasive species, pollution, climate change and disease. 

Lambertini said the world needed to rethink its harmful and wasteful agricultural practices before the global food chain collapsed.

“Food systems today are responsible for over 80 percent of deforestation on land, and if you look at the ocean and freshwater they are also driving a collapse of fishery stocks and populations in those habitats,” he said.

With world leaders due to convene in Montreal for the COP15 biodiversity summit in December, the report authors called for an international, binding commitment to protect nature, similar to the 2015 Paris Agreement on climate change.

– ‘Need to act now’ –

The Living Planet Report argues that increasing conservation and restoration efforts, producing and consuming food more sustainably, and rapidly and deeply decarbonising all sectors can alleviate the twin crises of climate change and biodiversity loss. 

It also calls for governments to properly factor into policymaking the value of services rendered by nature, such as food, medicine and water supply. 

“We need to stress the fact that nature loss is not just a moral issue of our duty to protect the rest of the world. It is actually an issue of material value, an issue of security for humanity as well,” said Lambertini.

Some areas experienced more population loss than others — Europe, for example, saw a wildlife population decline of 18 percent.

“But that also masks historic, very extreme losses of biodiversity,” said Andrew Terry, director of conservation at the Zoological Society of London, which helped compile the data. 

“We know that we’re coming out of (a) low point in the state of biodiversity in the northern hemisphere.”

In Africa, where 70 percent of livelihoods rely on nature in some form, the report showed a two-thirds fall in wildlife populations since 1970.

Alice Ruhweza, Africa regional director at WWF, said the assessment showed how there was a “huge human cost” when nature is lost.

She said young people in particular were concerned about wildlife preservation, and would push governments to implement greater protective measures. 

“We have a young, entrepreneurial and increasingly educated population that is showing more awareness around issues of nature,” said Ruhweza. 

“So the potential for transformative change is really significant. But the time is running short, and we need to act now.”

Ukraine claims new gains, welcomes Western air defence pledge

Ukraine said Wednesday it had reclaimed more territory in the south and welcomed a Western pledge to deliver air defence systems to Kyiv “as fast as we can” after days of intense Russian missile strikes. 

A US-led group of around 50 countries held talks at the NATO headquarters in Brussels and vowed to deliver new anti-missile systems to Kyiv.

Ukraine is reeling from Russian attacks that have left scores dead and wounded as well as villages and towns without power and hot water across the country.

“The systems will be provided, as fast as we can physically get them there,” US Defense Secretary Lloyd Austin said after the meeting, without giving details.

In a further show of Western solidarity, the G7 vowed to “stand with Ukraine for as long as it takes”, while International Monetary Fund chief Kristalina Georgieva pledged financial help for the sake of “moving with you in the direction of a strong Ukraine”.

Ukrainian President Volodymyr Zelensky, who has described the Russian missile attacks as an act of terrorism and has pressed the West for an “air shield”, welcomed the promised anti-missile systems.

“The more audacious and cruel Russian terror becomes, the more obvious it is to the world that helping Ukraine to protect the sky is one of the most important humanitarian tasks for Europe today,” Zelensky said in his daily address to the nation.

– ‘Come back to the table’ –

As Ukraine faces a barrage of Russian aerial assaults, Britain on Thursday said it would supply drones and, for the first time, rockets capable of shooting down cruise missiles.

“The AMRAAM rockets… will be provided in the coming weeks for use with the NASAMS air defence systems pledged by the US,” the British defence ministry said in a statement.

In an interview, French President Emmanuel Macron also promised air defences.

“We’re going to deliver… radars, systems and missiles to protect them from these attacks,” Macron said, adding that France was also negotiating to send another six Caesar mobile artillery units.

It was not immediately clear whether the weapons promised by Macron were part of the commitment made in Brussels or separate.

Macron also called on Russian President Vladimir Putin to resume diplomatic negotiations with Kyiv.

“Today, first of all, Vladimir Putin must stop this war, respect Ukraine’s territorial integrity and come back to the table for talks,” Macron told broadcaster France 2.

The United Nations General Assembly voted overwhelmingly on Wednesday to condemn Russia’s annexation of parts of Ukraine, sending what US President Joe Biden said was a “clear message” that Moscow could not erase a sovereign state.

– ‘Under the rubble’ –

Since Monday, Russia has pummelled Ukraine with missiles, damaging energy facilities nationwide in attacks that Putin said were retaliation for last week’s deadly explosion at a Crimean bridge. 

That blast ripped through a road and rail link Moscow uses to transport its military equipment.

Just after 1:00 am Thursday (22:00 GMT), the bombing blitz targeted the Black Sea port of Mykolaiv, obliterating the top floors of a five-storey residential building, according to the mayor.

“(The) rest is under the rubble. Rescuers are working on the spot,” Oleksandr Senkevych wrote on Telegram.

And in the town of Avdiivka, Russian strikes killed at least eight people at a market, according to the Ukraine-appointed chief of the region.

The Russian military meanwhile said it has fended off Ukrainian attacks in the eastern Donetsk, Lugansk and Kharkiv regions.

But in the latest setback for Putin, Kyiv said Wednesday that it has retaken five more settlements in the southern region of Kherson — one of the four territories Moscow said it annexed in September.

For Ukrainians trapped on the frontline, fears over the relentless exchange of fire are now compounded by the prospect of a winter without power or water.

“Firewood… how can I get it?” said Oleksandra Pylypenko from the eastern town of Bakhmut.

“I don’t know how we’ll survive.”

– ‘Need more artillery’ –

Some of the anti-aircraft defence systems pledged by Western allies began arriving in Ukraine this week.

On the frontline in Donetsk, Western weapons have helped boost Ukrainian morale and the abilities of Kyiv’s forces.

“We definitely need more artillery,” said an officer who gave his name as “Sergiy” with Ukraine’s 5th Regiment on a hill overlooking Russian-held Gorlivka in Donetsk.

“When it comes to artillery, they still have an advantage so we can’t return fire equally,” he added. 

“We are firing more precisely now, but with fewer strikes.”

With Russia’s bombing blitz escalating nuclear fears, UN nuclear agency chief Rafael Grossi arrived in Kyiv for talks on setting up a nuclear safety and protection zone around Ukraine’s Russian-held Zaporizhzhia plant.

Asian markets drop as traders brace for key US inflation data

Equities fell in Asia and the dollar maintained its strength Thursday ahead of the release of crucial US inflation data that could determine the pace of Federal Reserve interest rate hikes.

The release of the September report comes a day after minutes from the central bank’s latest policy meeting showed officials determined to win their battle against runaway prices by ramping up borrowing costs, though they did note the risk to the economy that posed.

Investors are growing increasingly worried that the strict monetary tightening campaign — including three bumper rate hikes in succession — will plunge the United States into recession.

While there are hopes for signs of a slowdown, traders have taken to the sidelines in case of more volatility.

On Wednesday, figures showed wholesale inflation rose a forecast-beating 0.4 percent.

After another day of losses on Wall Street, Asia was again in the red with traders in Hong Kong, Tokyo, Shanghai, Singapore, Seoul, Wellington, Taipei and Manila selling.

“The Fed needs data to start finding an off-ramp,” Carol Schleif, of BMO Family Office, told Bloomberg Television.

“That’s a tough market to be in. Until we get a bunch more data, markets will have to figure out how to find their footing.”

Minutes from the Fed’s September meeting suggested it will press on with a fourth straight 0.75 percentage-point hike next month, with policymakers noting a slowdown of growth and the jobs market would be “required” to tame inflation, adding that prices remained “unacceptably high”.

They also pointed out that prices had “not yet responded” to the previous tightening.

Bank officials had for months stuck to a line that they will continue ramping up rates and hold them until they were satisfied they have slain inflation.

But the minutes said “several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook”.

However, they said the cost of not doing enough to tackle prices outweighed the cost of doing too much.

– Dollar still king –

“The Fed remains purposefully driven to tighten monetary policy further into restrictive territory given the rather gradual cooling of economic activity and slow inflation response,” said Gregory Daco, at Ernst & Young.

But added that “the balance of risks is rapidly shifting”.

“Elevated global economic and financial market uncertainty will make it essential for the Fed to calibrate its policy response.”

They expect to lift rates to around 4.6 percent in 2023, according to the median estimate — from the current 3-3.25 percent.

Expectations for even more tightening kept the dollar elevated across the board, and it hit a fresh 24-year high near 147 yen, more than one yen above the point at which Japanese authorities last month intervened to protect the currency.

Still, sterling held most of the gains it enjoyed Wednesday fuelled by expectations the Bank of England will unveil a huge rate hike next month in the wake of volatility in UK financial markets.

The crisis in London saw the yield on 30-year government bonds bounce above five percent, while that on 10-year bonds hit 4.64 percent, the highest since 2008 in the midst of the global financial crisis.

The UK government’s increased borrowing costs are a reflection of market unease regarding the affordability of upcoming tax cuts aimed at supporting Britain’s recession-threatened economy.

Oil prices were broadly flat after another drop Wednesday following a report from the industry-funded American Petroleum Institute indicating a huge jump in US stockpiles, suggesting weakening demand.

Meanwhile, OPEC trimmed its estimate for growth in demand this year and next by half a million barrels a day.

A drop in the past few days has eaten into last week’s gains that came in response to a decision by OPEC and other producers to slash output by two million barrels a day. 

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.5 percent at 26,260.25 (break)

Hong Kong – Hang Seng Index: DOWN 1.1 percent at 16,507.45

Shanghai – Composite: DOWN 0.3 percent at 3,018.07

Pound/dollar: DOWN at $1.1086 from $1.1101 Wednesday

Dollar/yen: UP at 146.90 yen from 146.86 yen

Euro/dollar: DOWN at $0.9701 from $0.9707

Euro/pound: UP at 87.50 pence from 87.41 pence

West Texas Intermediate: DOWN 0.2 percent at $87.08 per barrel

Brent North Sea crude: FLAT at $92.42 per barrel

New York – Dow: DOWN 0.1 percent at 29,210.85 (close)

London – FTSE 100: DOWN 0.9 percent at 6,826.15 (close) 

Asian markets drop as traders brace for key US inflation data

Equities fell in Asia and the dollar maintained its strength Thursday ahead of the release of crucial US inflation data that could determine the pace of Federal Reserve interest rate hikes.

The release of the September report comes a day after minutes from the central bank’s latest policy meeting showed officials determined to win their battle against runaway prices by ramping up borrowing costs, though they did note the risk to the economy that posed.

Investors are growing increasingly worried that the strict monetary tightening campaign — including three bumper rate hikes in succession — will plunge the United States into recession.

While there are hopes for signs of a slowdown, traders have taken to the sidelines in case of more volatility.

On Wednesday, figures showed wholesale inflation rose a forecast-beating 0.4 percent.

After another day of losses on Wall Street, Asia was again in the red with traders in Hong Kong, Tokyo, Shanghai, Singapore, Seoul, Wellington, Taipei and Manila selling.

“The Fed needs data to start finding an off-ramp,” Carol Schleif, of BMO Family Office, told Bloomberg Television.

“That’s a tough market to be in. Until we get a bunch more data, markets will have to figure out how to find their footing.”

Minutes from the Fed’s September meeting suggested it will press on with a fourth straight 0.75 percentage-point hike next month, with policymakers noting a slowdown of growth and the jobs market would be “required” to tame inflation, adding that prices remained “unacceptably high”.

They also pointed out that prices had “not yet responded” to the previous tightening.

Bank officials had for months stuck to a line that they will continue ramping up rates and hold them until they were satisfied they have slain inflation.

But the minutes said “several participants noted that, particularly in the current highly uncertain global economic and financial environment, it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook”.

However, they said the cost of not doing enough to tackle prices outweighed the cost of doing too much.

– Dollar still king –

“The Fed remains purposefully driven to tighten monetary policy further into restrictive territory given the rather gradual cooling of economic activity and slow inflation response,” said Gregory Daco, at Ernst & Young.

But added that “the balance of risks is rapidly shifting”.

“Elevated global economic and financial market uncertainty will make it essential for the Fed to calibrate its policy response.”

They expect to lift rates to around 4.6 percent in 2023, according to the median estimate — from the current 3-3.25 percent.

Expectations for even more tightening kept the dollar elevated across the board, and it hit a fresh 24-year high near 147 yen, more than one yen above the point at which Japanese authorities last month intervened to protect the currency.

Still, sterling held most of the gains it enjoyed Wednesday fuelled by expectations the Bank of England will unveil a huge rate hike next month in the wake of volatility in UK financial markets.

The crisis in London saw the yield on 30-year government bonds bounce above five percent, while that on 10-year bonds hit 4.64 percent, the highest since 2008 in the midst of the global financial crisis.

The UK government’s increased borrowing costs are a reflection of market unease regarding the affordability of upcoming tax cuts aimed at supporting Britain’s recession-threatened economy.

Oil prices were broadly flat after another drop Wednesday following a report from the industry-funded American Petroleum Institute indicating a huge jump in US stockpiles, suggesting weakening demand.

Meanwhile, OPEC trimmed its estimate for growth in demand this year and next by half a million barrels a day.

A drop in the past few days has eaten into last week’s gains that came in response to a decision by OPEC and other producers to slash output by two million barrels a day. 

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.5 percent at 26,260.25 (break)

Hong Kong – Hang Seng Index: DOWN 1.1 percent at 16,507.45

Shanghai – Composite: DOWN 0.3 percent at 3,018.07

Pound/dollar: DOWN at $1.1086 from $1.1101 Wednesday

Dollar/yen: UP at 146.90 yen from 146.86 yen

Euro/dollar: DOWN at $0.9701 from $0.9707

Euro/pound: UP at 87.50 pence from 87.41 pence

West Texas Intermediate: DOWN 0.2 percent at $87.08 per barrel

Brent North Sea crude: FLAT at $92.42 per barrel

New York – Dow: DOWN 0.1 percent at 29,210.85 (close)

London – FTSE 100: DOWN 0.9 percent at 6,826.15 (close) 

Human brain cells implanted in rats offer research gold mine

Scientists have successfully implanted and integrated human brain cells into newborn rats, creating a new way to study complex psychiatric disorders such as schizophrenia and autism, and perhaps eventually test treatments.

Studying how these conditions develop is incredibly difficult — animals do not experience them like people, and humans cannot simply be opened up for research.

Scientists can assemble small sections of human brain tissue made from stem cells in petri dishes, and have already done so with more than a dozen brain regions.

But in dishes, “neurons don’t grow to the size which a human neuron in an actual human brain would grow,” said Sergiu Pasca, the study’s lead author and professor of psychiatry and behavioural sciences at Stanford University.

And isolated from a body, they cannot tell us what symptoms a defect will cause.

To overcome those limitations, researchers implanted the groupings of human brain cells, called organoids, into the brains of young rats.

The rats’ age was important: human neurons have been implanted into adult rats before, but an animal’s brain stops developing at a certain age, limiting how well implanted cells can integrate.

“By transplanting them at these early stages, we found that these organoids can grow relatively large, they become vascularised (receive nutrients) by the rat, and they can cover about a third of a rat’s (brain) hemisphere,” Pasca said.

– Blue light ‘reward’ –

To test how well the human neurons integrated with the rat brains and bodies, air was puffed across the animals’ whiskers, which prompted electrical activity in the human neurons.

That showed an input connection — external stimulation of the rat’s body was processed by the human tissue in the brain.

The scientists then tested the reverse: could the human neurons send signals back to the rat’s body?

They implanted human brain cells altered to respond to blue light, and then trained the rats to expect a “reward” of water from a spout when blue light shone on the neurons via a cable in the animals’ skulls.

After two weeks, pulsing the blue light sent the rats scrambling to the spout, according to the research published Wednesday in the journal Nature.

The team has now used the technique to show that organoids developed from patients with Timothy syndrome grow more slowly and display less electrical activity than those from healthy people.

Tara Spires-Jones, a professor at the University of Edinburgh’s UK Dementia Research Institute, said the work “has the potential to advance what we know about human brain development and neurodevelopmental disorders”.

But she noted the human neurons “did not replicate all of the important features of the human developing brain” and more research is needed to ensure the technique is a “robust model”.

– Ethical debates –

Spires-Jones, who was not involved in the research, also pointed out potential ethical questions, “including whether these rats will have more human-like thinking and consciousness”.

Pasca said careful observations of the rats suggested the brain implants did not change them, or cause pain.

“There are no alterations to the rats’ behaviour or the rats’ well-being… there are no augmentations of functions,” he said.

He argued that limitations on how deeply human neurons integrate with the rat brain provide “natural barriers” that stop the animal from becoming too human.

Rat brains develop much faster than human ones, “so there’s only so much that the rat cortex can integrate,” he said.

But in species closer to humans, those barriers might no longer exist, and Pasca said he would not support using the technique in primates for now.

He believes though that there is a “moral imperative” to find ways to better study and treat psychiatric disorders.

“Certainly the more human these models are becoming, the more uncomfortable we feel,” he said.

But “human psychiatric disorders are to a large extent uniquely human. So we’re going to have to think very carefully… how far we want to go with some of these models moving forward.”

Fledgling union efforts at Amazon, Starbucks dig in for long fight

Recent unionization drives at Starbucks and Amazon have lifted morale in the US labor movement, but organizers have yet to transform election victories into material change.

Moreover, some union backers such as Will Westlake have paid a price for their activism.

Formerly a Starbucks barista in Buffalo, New York, where the initial union votes took place in December 2021, Westlake was fired earlier this month — ostensibly for not removing a suicide prevention badge from his apron, which he has viewed as an expression of his solidarity with the movement.

But Westlake thinks his firing was payback for his union activism.

“I was number 123” on the list of Starbucks employees to lose their jobs as the campaign has spread to some 250 cafes nationwide, said Westlake.

Starbucks declined to comment on allegations from Starbucks Workers United that the company fired workers for union activism.

But such reprisals at US companies are “pretty routine in this country,” said Ruth Milkman, a sociologist at CUNY in New York.

– Young activists –

Milkman counts herself among the experts in labor relations who have been surprised at the spread of the union drives to a growing slate of corporations, including Apple, REI, Chipotle and Trader Joe’s — companies that union organizers have not in the past viewed as fertile to their efforts.

“This was kind of a different moment,” said Milkman of a period defined by a labor shortage, the pandemic and “a young labor force frustrated by their limited labor market options.” 

US officials have seen a 53 percent jump in the number of union elections over the last year, according to the National Labor Relations Board.

But that increase takes place against the backdrop of a longtime decline in organized labor since the 1980s, with fewer than 10 percent of private-sector employees now unionized.

While union backers have won some high-profile election victories over the last year, in many cases, the successful votes have taken place at small establishments, such as an individual Starbucks cafe.

What’s more, “winning the election is actually the easy part,” said Cedric de Leon, a sociologist at the University of Massachusetts at Amherst.

“The hard part is to negotiate the contract,” he said. “And there is nothing the government can really do to force the employers to negotiate in good faith.”

While two Starbucks cafes in Buffalo voted to unionize last December, the first meeting with management on the contract will take place only this month.

The outlook is even murkier at the Staten Island, New York warehouse that in April became the first Amazon site in the United States to unionize.

But Amazon is contesting the vote, alleging improprieties. 

Commenting on a union election now taking place at an upstate New York warehouse, an Amazon spokesman said this week that the company will continue to fight the Staten Island election outcome because “we don’t believe it represents what the majority of our team wants.”

– Culture of intimidation –

Under the Biden administration, the NLRB has for its part cracked down on some anti-union conduct by big corporations, as with a complaint earlier this month against Apple after the company prevented the distribution of union fliers in a break room.

In August, a US judge ordered Starbucks to reinstate seven employees that the NLRB found were unlawfully fired by the coffee giant.

Such moves by companies represent an effort to instill in workers “a culture of fear and intimidation,” said de Leon, noting that support from President Joe Biden and other political leaders will not be enough to make real change.

But “250 Starbucks going out on a nationwide strike, that could be decisive,” he said.

The recent wave of union campaigns has come amid a tight labor market in a period of elevated consumer demand. A recession would alter some of those dynamics, although de Leon notes that previous economically weak periods such as the 1930s and 1970s have boosted unions.

Westlake said he is determined to hold companies like Starbucks to account.

“They are hoping that the public won’t care enough and that in two or three years, they will be able to fire all the union leaders and crush the union,” said Westlake, who has filed a complaint with the NLRB over his dismissal.

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