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    Teething troubles in the green transition

    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

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    California pot farmers feel the heat from low pricing, wildfires

    (Reuters) – Small-scale cannabis farmers in California are calling it quits, crushed by crop damage from devastating wildfires and sliding prices, and industry experts expect the exodus to continue near-term in the largest pot market in the United States.Unlike for traditional crops, pot cultivators cannot claim government monetary support for damage from extreme weather because cannabis remains on the federal list of controlled substances.”These operators don’t have the ability to go to FEMA (Federal Emergency Management Agency) to get reimbursement for losses in a federal disaster zone because of the federal classification,” said Anthony Coniglio of NewLake Capital Partners.California has also seen prices plummeting since 2021 due to oversupply.The Golden State has witnessed an influx of new producers as demand peaked during the pandemic, when wholesale flower prices went above $2,000 per pound, but the buzz has waned and prices are currently around $1,200 per pound.”The lower price point of wholesale doesn’t create enough margin for people to take on risk of wildfires. As we continue to see elevated risk of wildfires, fewer people will invest in outdoor grows,” Coniglio said.Climate change is also raising insurance costs for cannabis farmers, who are already restricted to a limited pool of insurers.”We’ve seen increased costs, such as electricity, water, and labor, which has not pushed through to crop pricing… pressuring margins and causing more farmers to exit,” said Morgan Paxhia, co-founder and managing partner, Poseidon Investment Management.Many have surrendered cultivation permits and left Lake County in northern California, a once popular growing region, several farmers told Reuters.In Q1 2024, active business licenses declined over 20% year-over-year, according to cannabis data firm CRB Monitor.California sold $5.3 billion worth of cannabis products in 2023, according to the state’s tax department, versus nearly $6 billion recorded in 2021, losing the top spot to Colorado in the first quarter this year.”Industry dynamics continue to pose significant challenges for legal cannabis operators in California. As a result, other state markets are seen as more attractive,” said Verano founder and CEO George Archos. More

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    UK rental affordability at worst level in more than 7 years

    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

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    Bangladesh student protesters plan new party to cement their revolution

    DHAKA (Reuters) -Student demonstrators who ousted Prime Minister Sheikh Hasina have rejected calls from Bangladesh’s two main political parties for quick elections and are considering creating their own party to cement in place reforms, according to interviews with four protest leaders.Their hope: to avoid a repeat of the last 15 years, in which Hasina ruled the country of some 170 million with an iron fist. That was until June, when a handful of students – most in their early-to-mid 20s – began organising demonstrations against a law reserving coveted government jobs for certain segments of the population.Within weeks, Hasina’s government was swept away by an upswell of popular anger at the brutality of its crackdown on anti-quota protesters. At least 300 people were killed in the single largest bout of violence since Bangladesh’s war of independence from Pakistan in 1971.The movement was hailed as a Gen Z revolution, spurred by young Bangladeshis’ anger at years of jobless growth, allegations of kleptocracy, and shrinking civil liberties.An interim government headed by Nobel Peace laureate Muhammad Yunus – which includes two student leaders in senior positions – now runs the country. For most of the past three decades, Bangladesh has been governed either by Hasina’s Awami League or the Bangladesh Nationalist Party of her rival Khaleda Zia, both of whom are in their 70s.Student leaders are discussing forming a political party to end the duopoly, said Mahfuj Alam, who chairs a committee tasked with liaising between the government and social groups such as teachers and activists.A decision would be made in about a month, the 26-year-old law student told Reuters, adding that protest leaders wanted to consult widely with citizens before deciding on a platform.Details of the students’ plans for their movement’s political future have not previously been reported. “People are really tired of the two political parties. They have trust in us,” he said, at the gates of Dhaka University’s Arts Faculty.Tahmid Chowdhury, another student coordinator who helped bring down Hasina, said there was a “high chance” they would form a political party. They were still working out their program, though he said it would be rooted in secularism and free speech. “We don’t have any other plan that could break the binary without forming a party,” said the 24-year-old graduate student in world religion.The student leaders in interim government have not specified what policies they intend to pursue, beyond sweeping institutional changes – such as reforming the electoral commission handpicked by Hasina – to avoid another spell of authoritarian rule.”The spirit of the movement was to create a new Bangladesh, one where no fascist or autocrat can return,” said Nahid Islam, 26, a key protest organiser who sits in Yunus’ cabinet. “To ensure that, we need structural reforms, which will definitely take some time.”The government is not considering calls from the Awami League and BNP to hold fresh polls as early as fall, said Islam, who holds the telecommunications portfolio.The regime change has forced out the chief justice, the central bank governor and the police chief who oversaw the crackdown on the students, among other officials. A spokesperson for Yunus, who has said he is not keen on holding elected office, did not return a request for comment. Touhid Hossain, a career diplomat serving as Yunus’ de facto foreign minister, told Reuters the students had not discussed their political plans with the technocrats. But he added: “the political scenario is going to change because we have basically excluded the young generation from politics.”   Yunus, an 84-year-old economist whose microcredit programs helped lift millions globally out of poverty, wields moral authority but there are doubts over what his administration can achieve.”We are totally in uncharted waters, both legally and politically,” said Shahdeen Malik, a constitutional expert. “The powers of this interim government are not defined because there is no constitutional provision.” Reuters interviewed more than 30 people, including key student leaders, Hasina’s son and adviser Sajeeb Wazed, opposition politicians and army officers to assess the divisions left in the wake of the protests and the prospects for the new government.Hasina, whose son said she hopes to return to Bangladesh, couldn’t be reached for comment. “The political parties are not going anywhere. You cannot wipe us out,” Wazed told Reuters from the United States, where he lives. “Sooner or later, either the Awami League or the BNP will be back in power. Without our help, without our supporters, you are not going to be able to bring stability to Bangladesh.”COLLABORATORSOn July 19, as Hasina’s supporters and police battled student demonstrators, authorities detained three of the movement’s most important leaders: Islam, Asif Mahmud and Abu Baker Mojumder. Mojumder told Reuters that he was sedated and beaten by law enforcement. The treatment, he said, solidified his view that Hasina had to go.The new police chief Mainul Islam did not respond to Reuters’ questions for this story.Previous protests had fizzled when leaders were detained but this time demonstrations raged on. Expecting to be arrested, the core of about two dozen coordinators had formed a structure in which they were supported by layers of other student-activists, said Islam, a veteran of previous protests.Missteps by Hasina, meanwhile, fuelled public anger against her. While the students had protested for more than a month, they were largely limited to public university campuses. Then, on July 14, Hasina held a news conference.Half an hour in, she half-smilingly referred to the demonstrators as “razakars”. The pejorative describes people who collaborated with Pakistan during the 1971 war, which she contrasted with descendants of freedom fighters for whom many government jobs would be reserved.The comment ignited furious mass protests.At Dhaka University, male demonstrators were joined by female students who broke out of their five halls of residences, whose gates are locked in the evenings, said Umama Fatema, 25, a female student coordinator.The next day, the Awami League’s student wing moved to suppress demonstrations and clashes erupted, with sticks, iron rods and stones for weapons. ‘STOP THE VIOLENCE’The escalation in violence that week expanded the demonstrations from public campuses to private institutions, said Nayeem Abedin, a 22-year-old coordinator at the private East-West University. “We had a responsibility to come out to the street for our brothers,” he said.Students at such institutions typically come from Bangladesh’s middle class that expanded rapidly during the robust economic growth that Hasina oversaw over much of her term. “It felt like a turning point,” said Islam. “Private university students joined in, and unexpectedly, so did many parents.”At least 114 people were killed by the end of that week, with hundreds more hurt. The scale of the crackdown shocked even some in the Awami League elite.”I also told my mother: ‘no, we need to immediately tell Chhatra League not to attack, stop the violence,'” said Wazed, without providing further details. “We suspended the police officers that shot at students.”At least two officers were suspended in early August after a video depicting the killing of a student went viral online. The student leaders plan to prosecute police and paramilitary accused of abuse.On July 21, Bangladesh’s Supreme Court, whose judges were effectively appointed by Hasina, ruled that 93% of state jobs should be open to competition, meeting a key demand of the students. The demonstrations continued to grow.Hasina declared an indefinite curfew on Aug. 4, a day after at least 91 people were killed. The army told the prime minister that evening it would not enforce the lockdown.”The army chief didn’t want more bloodshed,” said one serving officer, who spoke on condition of anonymity because he wasn’t authorised to talk to media. “People from all walks of life were joining.”The next day, as crowds marched to her official residence, Hasina fled to India.  More

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    US single-family housing starts tumble in July

    Single-family housing starts, which account for the bulk of homebuilding, tumbled 14.1% to a seasonally adjusted annual rate of 851,000 units last month, the Commerce Department’s Census Bureau said on Thursday. Homebuilding has now declined for five straight months.Single-family housing starts dropped 14.8% on a year-on-year basis in July. The housing market has stepped down following a spring resurgence in mortgage rates. Residential investment, which includes home building, contracted in the second quarter after rising for three consecutive quarters. Though mortgage rates have since retreated amid optimism that the Federal Reserve will cut interest rates next month, a jump in new housing inventory to levels last seen in early 2008 could limit any rebound in housing starts. New construction had been buoyed by a dearth of previously owned homes for sale. But the stock of existing homes has also risen from historic lows. The average rate on the 30-year fixed-rate mortgage has declined to 6.45% from a peak of 7.22% in May.A National Association of Home Builders survey on Thursday showed homebuilder sentiment fell to an eight-month low in August. Builders blamed “challenging housing affordability conditions” for the fourth straight monthly drop in confidence.Permits for future construction of single-family homes slipped 0.1% to a rate of 938,000 units in July. More

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    Soccer spending and discounts help boost British retail sales in July

    LONDON (Reuters) -British retail sales edged up in July, boosted in part by extra spending due to the men’s Euros soccer championship, official figures showed on Friday, after an unusually cool and wet June had kept shoppers away and weighed on broader economic growth.Retail sales volumes rose 0.5% in July after falling 0.9% in June and were 1.4% greater than a year earlier, the Office for National Statistics said. Both rises were in line with forecasts from economists polled by Reuters and there was little market reaction.”We expect further increases in disposable income to feed through to overall spending,” said Rob Wood, chief UK economist at Pantheon Macroeconomics, pointing to a gradual upward trend in annual sales growth.The squeeze on British consumers from high inflation in 2022 and 2023 is beginning to ease, though not enough to keep the Conservatives from a historic loss to the opposition Labour Party in last month’s election. Inflation was back at its 2% target in May and June, and only slightly above that in July, while wage growth exceeded inflation by the highest margin since mid-2021 in the second quarter of the year.The Bank of England cut interest rates from a 16-year high this month and Britain’s longest-running consumer confidence measure rose to its highest in nearly three years as shoppers became more willing to make big purchases.Even so, sales volumes in July were still 0.8% lower than in February 2020, the last month before COVID-19 lockdowns started, and recent reports from UK retailers have been mixed. Clothing retailer Next reported better-than-expected second-quarter sales and raised its full-year profit outlook. By contrast, luxury brand Burberry warned on profit and other UK retailers have highlighted continuing low consumer confidence around more discretionary purchases.Sales volumes at clothing stores fell 0.6% in July and were 4.0% lower than a year earlier, the ONS said.Department stores and sports equipment shops did better, boosted by the Euros and discounting, Liz McKeown, the ONS’ director of economic statistics, said.Prices in shops were 0.9% higher than a year earlier, the smallest increase since March 2021.Hot weather in the second half of July also helped offset cool and wet weather earlier in the British summer, which had led to weak July data from the British Retail Consortium and the Confederation of British Industry. “Although retail sales haven’t come roaring back as the industry hoped, retailers should be confident of a strong end to summer trading now that warmer weather has finally arrived,” said Deann Evans, a managing director at online retail platform Shopify (NYSE:SHOP). More

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    Wall St set for lower open after S&P, Nasdaq’s six-day winning run

    (Reuters) -Wall Street’s main indexes were set for a lower open on Friday following the S&P 500 and the Nasdaq logging six-session winning streaks after a spate of encouraging economic data fueled a broad rebound led by heavyweight tech and growth stocks.The benchmark index has recovered from a pullback earlier this month caused by a dour U.S. jobs report and the yen carry trade as better-than-expected data calmed nerves over a sharp slowdown in the world’s largest economy.U.S. consumer and producer prices data this week indicated inflation was moderating at a pace that would keep the U.S. Federal Reserve on track to start its monetary easing cycle with a 25-basis point rate cut next month as opposed to a more aggressive move.”The signal from this week’s batch of data is that the sky is not falling out as some investors had started to fear,” said Mike Reynolds, vice president of investment strategy at Glenmede.”The totality of the data we’ve gotten so far leading into (the next Fed meeting) makes a really strong case for rate cuts.”The U.S. central bank is now expected to track labor market trends more closely.Market participants will look to minutes from the Fed’s last policy meeting and Fed Chair Jerome Powell’s outlook of the U.S. economy at the Jackson Hole symposium, an annual gathering of global central bankers, next week for more clues on the rate cut trajectory.The S&P 500 and the Nasdaq were headed for their best weeks since October, while the Dow was on pace for its best weekly showing since December.Later in the day, University of Michigan will issue its consumer sentiment survey for August around 10 a.m. ET (1400 GMT).In an interview with National Public Radio, Chicago Fed chief Autan Goolsbee said the U.S. economy is not showing signs of overheating, so central bank officials should be wary of keeping restrictive policy in place longer than necessary.St. Louis Fed chief Alberto Musalem and Atlanta Fed boss Raphael Bostic on Thursday had gravitated toward an interest rate cut in September.At 8:15 a.m. ET, Dow E-minis were down 28 points, or 0.07%, S&P 500 E-minis were down 13 points, or 0.23% and Nasdaq 100 E-minis were down 50.25 points, or 0.26%.Applied Materials (NASDAQ:AMAT) dropped almost 3% in premarket trading following a strong jump ahead of its results. The chip-making equipment firm forecast fourth-quarter revenue slightly above Wall Street estimates.U.S.-listed shares of Amcor (NYSE:AMCR) slipped 6.1% after the packaging company reported a more-than-expected decline in fourth-quarter sales, hurt by weaker demand for its containers and cartons.Crypto- and blockchain-related firms gained as bitcoin rose 2.8%. Miners Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) gained almost 1% each, while iShares Bitcoin Trust ETF added 2.2%.U.S. equities saw inflows for the seventh straight week last week, with large caps seeing the bulk of inflows while growth stocks saw slight outflows, according to BofA data. Overall, U.S. stock trading volume has been below its 20-day moving average in the past six sessions as many investors are away for summer break. More

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    Brazil’s economy shows strength in Q2 as June activity overshoots forecasts

    The IBC-Br index, a key predictor of gross domestic product (GDP), increased by a seasonally adjusted 1.4% from the previous month, beating the 0.5% growth expected by economists in a Reuters poll.The monthly performance led to a 1.1% expansion in the second quarter compared to the previous three months.Finance Minister Fernando Haddad said this week that the government would likely revise this year’s expected economic growth forecast upwards to more than 2.5%, after maintaining the estimate at that level in July. Latin America’s largest economy has been supported by a strong labor market and booming services sector, which hit an all-time high in June. The second quarter’s performance showed resilience despite the severe floods that hit the southernmost state of Rio Grande do Sul in May, devastating cities and displacing more than a half million people. These events led many economists to predict potential economic losses for the country.The official gross domestic product (GDP) figures will be released by the statistics agency IBGE on September 3. More