Aurelia Butler

WASHINGTON (Reuters) – U.S. President Joe Biden on Tuesday touted progress by government and private industry to boost American production of minerals used to make electric vehicles and other renewable energy products, but stressed that new mines must benefit host communities and not damage the environment.Washington has grown increasingly concerned that low U.S. production of minerals essential for the construction of future technologies could leave it beholden to China and other nations that have heavily invested in mining. That has sparked a range of attempts by Biden, as well as his predecessors, to boost U.S. output of lithium, rare earths and other strategic minerals while balancing opposition from environmental and indigenous groups.”We can’t build a future that’s made in America if we ourselves are dependent on China for the materials that power the products of today and tomorrow,” Biden said at a White House event.Even still, the president emphasized he would not support new U.S. mines unless “the historical injustices that too many mining operations have left behind” are avoided. “Environmental protections are paramount,” said Biden. “We have to ensure that these resources actually benefit folks in the communities where they live, not just shareholders.”Biden, who spoke just after outlining the latest U.S. response to Russian aggression against Ukraine, was joined virtually by industry and labor leaders, as well as California Governor Gavin Newsom. U.S. Energy Secretary Jennifer Granholm and national climate adviser Gina McCarthy joined in person.STANDARDSTo address environmental concerns, the White House said it would form a committee to recommend changes to the 1872 Mining Law, which has governed hard rock mining across much of the United States since the 19th Century.Biden also announced a $35 million grant from the U.S. Defense Department to MP Materials Inc to process rare earths, which are used to make magnets found in consumer goods and weapons. The Pentagon has already awarded roughly $10 million to MP, which controls the only U.S. rare earths mine but depends on China for processing. The Las Vegas-based company said it will invest $700 million of its own funds and create more than 350 jobs by 2024. The company has said it aims to begin processing rare earths in California by the end of the year.Jim Litinsky, MP’s chief executive, told Biden the investments will help the company produce enough rare earth products to build 500,000 EVs domestically by 2025.Additionally, Berkshire Hathaway (NYSE:BRKa) Energy Renewables said at the event it will break ground this spring on a California facility to test sustainable ways to produce lithium from geothermal brines found underneath California’s Salton Sea and elsewhere. Biden also announced that the Pentagon plans to boost its stockpile of strategic minerals, a development that Reuters reported last week. His comments on Tuesday were the clearest to date about the rubric administration officials deploy when determining whether or not to support a proposed U.S. mining project. “It’s my hope and my expectation that those communities … get the benefit of being able to be employed and being able to generate a living from what’s going to be happening and are protected environmentally,” Biden said.Last month, the Biden administration blocked a proposed Minnesota copper mine from Antofagasta (LON:ANTO) Plc. It has also taken steps to slow down development of a lithium mine in Nevada from ioneer Ltd and a copper mine in Arizona from Rio Tinto (NYSE:RIO) Ltd.Other announcements at the event included a $140 million pilot project to recover rare earths from coal ash, with funding from the recently passed infrastructure law. The White House has also touted an agreement between Talon Metals Corp and the United Steelworkers to train workers in northern Minnesota near Talon’s Tamarack nickel project. Talon signed a nickel supply deal with Tesla (NASDAQ:TSLA) Inc last month. Talon has also agreed to remain neutral in any union organizing effort, the White House said. Biden has been a large supporter of organized labor throughout his presidency. More

NEW YORK (Reuters) – The S&P 500’s 1% slump on Tuesday confirmed that the world’s most watched stock index was in a correction for the first time since the 2020 Wall Street plunge brought on by the COVID-19 pandemic. U.S. investors sold stocks amid growing fears of war between Russia and Ukraine, paring some losses after U.S. President Joe Biden announced a wave of sanctions against Russia.Those geopolitical concerns have added to recent worries about the possible path of the U.S. Federal Reserve’s interest rate hikes as the central bank attempts to rein in inflation at 40-year highs.Earlier, NATO Secretary-General Jens Stoltenberg said that the alliance believed Russia was still planning a big assault on Ukraine following Moscow’s recognition of two separatist regions in the former Soviet republic’s east.The S&P 500 is now down 10.25% from its record closing high of 4,796.56 set on Jan. 3, confirming a correction, based on a widely used definition of a decline of 10% or more. The index had briefly been down more than 10% from its intraday record several times in recent trading sessions, without closing at that level. GRAPHIC: S&P 500 Corrections and Bear Markets – https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnwgmrvq/Pasted%20image%201643397044082.png The small-cap Russell 2000 index last month confirmed it was in a bear market, or drop of 20% from its most recent high. However, some analysts feel smaller stocks are in the process of bottoming out.Also in January, the Nasdaq confirmed that it had entered its fourth correction since the start of the pandemic. It is down almost 17% from its record high close in November. GRAPHIC: Index corrections – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjoegqnpr/Pasted%20image%201645567996374.png Rising interest rates tend to disproportionately weigh on shares of high-growth companies as investors value them based on earnings expected years into the future, and high interest rates erode the value of future earnings more than the value of earnings made in the short term. More

WASHINGTON (Reuters) -President Joe Biden said on Tuesday the United States was imposing a first tranche of sanctions against Russia for launching an invasion of Ukraine and promised that more would come if there are further incursions. Biden, speaking to reporters at the White House, said the United States would impose sanctions against two large Russian financial institutions and Russian sovereign debt. Sanctions were imposed against Russian elites and their family members as well, administration officials said.President Vladimir Putin on Monday told Russia’s defense ministry to deploy what he called peacekeeping forces into two breakaway regions of Ukraine after recognizing them as independent, raising fears of imminent war in Europe.”This is the beginning of a Russian invasion of Ukraine,” Biden said. “Russia has now undeniably moved against Ukraine by declaring these independent states.”The United States had promised severe sanctions against Russia if it invaded Ukraine, which the White House previously defined as any movement of troops across the border.The United States deployed its most powerful sanctioning tool, placing Russian elites and two banks on the Specially Designated Nationals list, effectively kicking them out of the U.S. banking system, banning them from trading with Americans, and freezing their U.S. assets.Biden said the sanctions in the initial tranche applied to VEB bank and Russia’s military bank – Promsvyazbank, which does defense deals. He said the sanctions against Russia’s sovereign debt meant the Russian government would be cut off from Western financing.”As Russia contemplates its next move, we have our next move prepared as well,” Biden said. “Russia will pay an even steeper price if it continues its aggression, including additional sanctions.”Putin did not watch Biden’s speech and Russia will first look at what the United States has outlined before responding, according to Kremlin spokesperson Dmitry Peskov, cited by Russian news agencies.Biden said the United States would continue to provide “defensive assistance” to Ukraine but had no intention of fighting Russia. He said he authorized additional movements of U.S. forces already stationed in Europe to strengthen Baltic allies Estonia, Latvia and Lithuania.Biden, who is facing concerns at home about inflation and high energy prices, said his administration was closely monitoring energy supplies for disruptions and working on a “collective investment to secure stability and global energy supplies” with major oil producers and consumers.”This will blunt gas prices. I want to limit the pain the American people are feeling at the gas pump. This is critical to me,” he said.SANCTIONS TRIGGEREDOn Monday a senior administration official said Russia sending troops to the breakaway regions of Donetsk and Luhansk in Ukraine did not represent a further invasion because Russia had troops there previously. But on Tuesday, White House officials changed their language to say an invasion had begun.Washington slapped sanctions on VEB and Promsvyazbank Public Joint Stock Company, as well as 42 of their subsidiaries, accusing the two banks of being “state-owned institutions that play specific roles to prop up Russia’s defense capability and its economy.”The sanctions on the banks come on top of designations of Russian “elites” the Treasury Department accused of being close to Putin, including Aleksandr Bortnikov, director of the Federal Security Service (FSB), and Petr Fradkov, the chairman and chief executive of Promsvyazbank Public Joint Stock Company.Also hit with sanctions was Sergei Kiriyenko, a former prime minister of Russia.”They share in the corrupt gains of the Kremlin policies and should share in the pain as well,” Biden said of Russian elites.Brian O’Toole, a former Treasury Department official now with the Atlantic Council, said Tuesday’s sanctions will have impact, but questioned whether it would be immediate enough.”I think the risk they run by not going after a big state-owned commercial bank is that Putin thinks that the West is not going to be willing to bear the pain of big economic sanctions, and therefore that he can safely expand his ambitions,” he said.Russia’s Sberbank and VTB would face American sanctions if Moscow proceeds with its invasion of Ukraine, a senior U.S. administration official told reporters. The official also said Russian elites not sanctioned on Tuesday should be on notice and noted that the Biden administration was fully prepared to implement export control measures with a large number of countries if Russia invades further.”Further Russian assault into Ukraine remains a severe threat in the days ahead,” Biden said. “The United States and our allies and partners remain open to diplomacy if it is serious.” More

(Reuters) – Directors at three regional Federal Reserve banks voted in January to increase the interest rate charged to commercial banks for emergency loans by a quarter of a percentage point, minutes of their discount rate meetings showed on Tuesday. The rate-hike recommendations — from directors of the Cleveland, St. Louis, and Kansas City Feds — were overruled two weeks later when U.S. central bankers determined to keep the Fed’s policy rate in its current range of 0-0.25%. The last time Fed regional banks split over discount-rate views was in October 2019, when the U.S. central bank was cutting rates. Directors at the Fed banks who supported an earlier rate hike did so “in response to elevated inflation or to help manage economic and financial stability risks,” the minutes showed. Inflation has been running at more than twice the Fed’s 2% target.Directors at the nine other banks wanted to leave the rate unchanged to continue to support the economy, the minutes said. But even at those banks, the minutes said, “a number of directors noted that it might soon become appropriate” to begin removing accommodation in light of inflation pressures and strong labor market conditions. At the Fed’s January meeting, policymakers threw out a similar signal, with Fed Chair Jerome Powell saying policymakers were “of a mind” to begin raising interest rates in March. Fed bank directors are not policymakers and do not determine the Fed’s interest rate, but they do meet regularly with their respective Fed presidents who say their directors’ views help shape their own outlooks.St. Louis Fed President James Bullard has been among the most hawkish voices at the Fed in recent months, pushing for 100 basis points worth of rate hikes over the next three meetings. More

Joe Biden announced new sanctions on Russia as he accused Vladimir Putin of beginning an “invasion” of Ukraine, and warned that Washington was prepared to take further action if Moscow escalates its assault on Ukrainian territory. Biden unveiled measures targeting two of Russia’s largest financial institutions, VEB and its military bank, as well as targeting Russian elites and their family members. Sanctions would also be aimed at preventing the Russian state from accessing US capital and financial markets, said Biden. “That means we’ve cut off Russia’s government from Western financing,” Biden said. “It can no longer raise money from the west and cannot trade in its new debt on our markets or European markets either.” Biden said Washington was prepared to go further if Russia continued its invasion.Despite tougher than expected sanctions, Vladimir Putin has endorsed the claims of Russian-backed separatists to the entire Donbas region of eastern Ukraine, taking the countries closer to full-blown conflict.The move came hours after Germany’s Chancellor Olaf Scholz halted the approval of the Nord Stream 2 gas pipeline, which connects Russia directly with Germany, scuppering Europe’s most controversial energy project. FT.com has the latest news on the Ukraine conflict. Explainer: After recognising breakaway regions in Ukraine, here is a look at Putin’s next options. Interview: Ukraine must be allowed to retain the option of Nato membership, Finland’s foreign minister has said, warning that Moscow’s open aggression seemed to be based on a “concept of the past and rebuilding the Soviet Union”. Markets: US stocks fell, with the S&P 500 index dropping into a correction, while oil prices neared $100 a barrel on Tuesday after Russian president Vladimir Putin ordered troops into eastern Ukraine.Thanks for reading FirstFT Asia. What questions do you have about the crisis in Ukraine? Share them with us at [email protected] — EmilyFive more stories in the news1. New Oriental posts $876mn loss after Beijing clampdown The Chinese online tutoring company posted heavy losses yesterday in its first results since Beijing banned the $100bn-a-year private education industry from making a profit.2. Volkswagen in advanced talks over listing Porsche brand The world’s second-largest carmaker by volume has taken the first step towards a €20bn initial public offering of its Porsche brand, in what would be one of Germany’s biggest listings in years.3. HSBC takes charge on Chinese real estate HSBC set aside $451mn as it braced for more defaults in the troubled Chinese real estate sector and warned of a slowdown in wealth management because of Hong Kong’s restrictive “zero Covid” strategy, marring otherwise positive fourth-quarter earnings. 4. EU targets Myanmar’s lucrative energy sector in latest sanctions The EU has imposed sanctions against almost two dozen Myanmar government and military officials as well as a state-backed oil and gas group, in the first measures targeting the country’s lucrative energy operator in the wake of last year’s coup.5. Crypto pushes into regulated derivatives markets Volumes in cryptocurrency derivatives registered almost $3tn last month, accounting for more than 60 per cent of crypto trading, as companies sought to meet demand from retail traders for supercharged bets on digital assets.The FT View: G20 ministers are right to take a proactive approach to crypto risks.Coronavirus digestHong Kong announced yesterday that all residents would have to undergo mandatory Covid-19 testing from next month.InterContinental Hotel Group, the owner of Holiday Inn and Crowne Plaza chains, said business was “closer to pre-pandemic levels” in 2021.Opinion: The pandemic has been a wake-up call. We now have a choice: carry on as before or find a way to ensure we are better prepared for extreme risks, writes Martin Rees.The day aheadHong Kong budget Financial Secretary Paul Chan Mo-po will deliver Hong Kong’s 2022-2023 budget, which will reportedly include higher taxes on pricey properties. (SCMP) Reserve Bank of New Zealand monetary policy statement New Zealand’s central bank is set to meet, and policymakers are expected to raise interest rates for the third time in a row. (Reuters) Bailey testifies before UK Treasury Committee The recently under-fire Bank of England governor Andrew Bailey will appear before the Treasury Committee to discuss the UK central bank’s quarterly Monetary Policy Report. Inflation is set to be a key topic.Earnings: Results are expected from companies including Barclays, Petrobras, Danone, Heathrow Airport Holdings, Metro Bank, Rio Tinto, Aston Martin Lagonda and eBay. Join us today for the FT’s Future of Business Education: Spotlight on MBA the ultimate guide to educating global business leaders. This event offers both young professionals and seasoned executives an ideal opportunity to find out how to enhance their skill set and accelerate their careers through an MBA. Register here.What else we’re reading How Xi Jinping’s anti-corruption crusade went global Since coming to power in 2012, the Chinese leader has targeted both “tigers and flies”, or high and low-ranking government officials, with a clear purpose: to eliminate corruption and eviscerate political rivals. A decade later, there is no end in sight and the hunt for fugitives overseas has accelerated.Toronto bakery is burnt by a cultural appropriation feud The Jellybean Cake & Dessert shop in Toronto is an unlikely battleground for East Asia’s online history wars. But when the Korean bakery in Canada’s largest city wished its customers a “Happy Korean New Year” on Instagram this month, it found itself at the heart of a bitter series of disputes that have marred South Korea’s relations with China.

A woman wearing a traditional Korean ‘hanbok’, second from right, during a parade of China’s ethnic minorities at the opening of the Beijing Winter Olympics, sparked outrage in South Korea © Lim Hwa-young/Yonhap/AP

Silicon Valley has learnt little from Elizabeth Holmes While Holmes awaits sentencing and her business partner waits for his own trial, venture capital money continues to flow into wild start-up ideas. No broader reckoning has been linked to her story. Instead of seeing the case as a spur to toughen up due diligence, the tech sector is choosing to dismiss it as an outlier, writes Elaine Moore. ‘Little tech’ can be dangerous at work too A faulty computer system has been blamed for wrongly prosecuting hundreds of people running UK post offices for false accounting and theft. The case is an example of just one of many companies that are in danger of believing computers over humans, writes Sarah O’Connor. Peloton’s plan to conceal rust Last autumn, the home fitness company was confronted with a crisis: the paint was flaking off some of its exercise machines. Instead of returning the bikes to the manufacturer, executives hatched a plan, dubbed “Project Tinman”, to conceal the corrosion and send the machines to customers.GardensDo you keep a gardening diary? It is one of those good intentions which seldom translate into reality. A look at Robert Darwin’s garden diary brings us closer to the Victorians — and to the formative years of a boy who would go on to change the world.

Some of the research material Susan Campbell worked with for ‘The Garden Diary of Doctor Darwin’ © Emily Jagger More