US firms up $6.2 bn Micron funding to boost chipmaking

ALL CAPITALI$M IS STATE CAPITALI$M


By AFP
December 10, 2024

The US government's Micron investment aims to bring development and production of advanced memory semiconductor technology to US shores

 - Copyright AFP/File Hector RETAMAL

Beiyi SEOW

US President Joe Biden’s administration finalized nearly $6.2 billion in funding for Micron Technology on Tuesday, firming up a deal to boost domestic semiconductor production before Donald Trump returns to the White House.

The Biden administration has been working to green-light agreements with firms in the chip making supply chain over recent months, hoping to cement it as part of his legacy before leaving office in January.

Once a deal is finalized, funds can start heading to companies when they hit certain milestones.

The Micron investment helps bring development and production of advanced memory semiconductor technology to US shores, said Commerce Secretary Gina Raimondo.

This “is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security,” she added in a statement.

The United States has been trying to reduce its dependence on China and other countries for semiconductors.

In this case, Washington is keen to build up a reliable domestic supply of chips that can go into advanced technologies ranging from personal computing to artificial intelligence — including enabling new AI models.

The latest funding comes under the CHIPS and Science Act, a major law passed during Biden’s term aimed at strengthening the US semiconductor industry.



– ‘Stable supply’ –

The Micron deal in particular supports the company’s two-decade plan, including investments of some $100 billion in New York and $25 billion in Idaho, said the Commerce Department.

This should create some 20,000 jobs and help the US grow its share of advanced memory manufacturing, the department added.

Apart from the efforts in New York and Idaho, the Commerce Department also signed a preliminary agreement with Micron for up to $275 million in proposed funding to expand and modernize its facility in Virginia.

The aim is to support a “stable supply” of Micron’s technology, involving chips that are key to the automotive and industrial markets, the department noted.

“Memory chips are foundational to all advanced technologies,” Raimondo said.

“As the only US-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the US,” said Micron President Sanjay Mehrotra in a statement.

The United States used to make nearly 40 percent of the world’s chips but this proportion is now around 10 percent, with none being the most advanced chips.

While the US government has unveiled over $36 billion in grants through the CHIPS Act, some of the funds remain in a due diligence phase and cannot yet be disbursed until agreements are made final.

Stellantis, Chinese firm CATL plan $4bn battery plant in Spain

ByAFP
December 10, 2024

China's CATL is a major vehicle battery maker - Copyright AFP/File Hector RETAMAL
Valentin Bontemps with Frederique Pris in Paris

Car giant Stellantis and Chinese manufacturer CATL said Tuesday they would build a $4.3-billion factory to make electric vehicle batteries in Spain, the latest bid to boost Europe’s troubled EV drive.

They said they aim to start production by the end of 2026 at the site in the northern city of Zaragoza.

It “could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union”, the companies said in a statement.

The two firms signed an agreement in 2023 to produce battery parts for the manufacture of electric vehicles in Europe.

CATL, which has received robust financial support from Beijing, has launched two other European factories, in Germany and Hungary.

Its chief executive Robin Zeng met late on Monday with Spain’s Prime Minister Pedro Sanchez, ahead of the announcement of the 4.1-billion-euro deal.

In a message on X, the Socialist premier thanked the presidents of the two firms for their “firm commitment” to Spain, adding he was “very pleased”.

During a visit to China in September, Sanchez urged the European Union to “reconsider” a plan to impose tariffs on Chinese electric cars, calling for a “compromise” between the economic powerhouses.

Spanish Economy Minister Carlos Cuerpo called the announcement “excellent news for industry and employment in our country”.

Spain has been playing a growing role in European vehicle production, assembling 1.87 million cars in 2023 — the second-biggest producer in the continent after Germany, according to the European Automobile Manufacturers’ Association.



– Bumpy patch for carmakers –



The announcement comes at a turbulent time in the car industry as countries seek to switch to low-carbon electric vehicles to curb the climate crisis.

Sweden’s financially strained electric car battery maker Northvolt last month announced the resignation of its chief executive Peter Carlsson.

That came hours after the company sought bankruptcy protection in the United States.

The company said in September it was slashing 1,600 jobs — a quarter of its staff — and suspending the expansion of its site as it struggled with strained finances and a slowdown in demand.

The company had been seen as a cornerstone of European attempts to catch up with China and the United States in the production of battery cells, a crucial component of lower-emission cars.

Stellantis’s former chief executive Carlos Tavares also resigned on December 1, with the company signalling differences over how to save the group’s slumping profits.

Like other auto groups, Stellantis has blamed competition from China and the difficult transition to electric cars for much of its troubles.

It announced on November 26 that it was closing a factory at Luton in England with the loss of 1,100 jobs.



– ‘High-quality’ EVs –



Founded in 2011 in Ningde, eastern China, CATL produces more than a third of the electric vehicle batteries sold in the world.

Italian-US-French company Stellantis produces 14 brands including Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep.

The Zaragoza plant will make lithium iron phosphate (LFP) batteries, which are cheaper to produce but less powerful compared with nickel manganese cobalt (NMC) ones, the other current mainstream technology.

The companies said the factory, which will be designed to be completely carbon neutral, would enable Stellantis “to offer more high-quality, durable and affordable battery-electric passenger cars, crossovers and SUVs”.

Stellantis chairman John Elkann said in the statement that the venture “will bring innovative battery production to a manufacturing site that is already a leader in clean and renewable energy”.

Zeng said CATL’s goal was “to make zero-carbon technology accessible across the globe”.

The deal is expected to be closed in 2025, subject to regulation.

Stellantis CEO Resignation Sends Shockwaves Through U.S. Auto Industry

By Metal Miner - Dec 06, 2024

The resignation of Stellantis CEO Carlos Tavares has created uncertainty in the US automotive market.

Tavares' departure could lead to a shift in Stellantis' strategic priorities, impacting dealer relationships, vehicle sales, and steel demand.

The new CEO's approach will be crucial in determining the company's future direction and its impact on the US automotive landscape.


The Automotive MMI (Monthly Metals Index) remained sideways, only moving down 2.58%. There are currently no significant factors within the US automotive market causing much movement in price action, and automotive sector as a whole remains slow. Despite this, concern about incoming tariffs from the new Trump administration remains palpable. While Trump hasn’t threatened tariffs on large automotive manufacturing nations like Japan or Germany, any hot-dipped galvanized steel products coming out of China will be subject to Trump’s proposed tariffs. This could create more market volatility and place pressure on the automotive industry in the long term.

Another noteworthy trend in the US automotive market is a steady increase in imports to the U.S from Vietnam. In recent years, steel imports have been flowing into Vietnam from China, raising suspicions as to whether China is again looking for a country in which to dump steel products. However, this hasn’t caused any major fluctuations in hot-dipped galvanized prices or the US automotive market just yet. Currently, all eyes remain on the new Trump Administration to see what will happen with the proposed tariffs.

Stellantis CEO Carlos Tavares Resigns. What Next?

The resignation of Stellantis CEO Carlos Tavares on December 1 sent shockwaves through the automotive industry, particularly impacting the US market and the steel sector. Tavares’ departure, which was attributed to disagreements over operational strategies and stakeholder relations, raises questions about the future direction of Stellantis and its broader impact on the US automotive market.

Tavares’ exit was driven by deep disagreements with Stellantis’ board over the company’s strategic priorities. According to reports, his push for aggressive cost-cutting and ambitious sales targets sparked friction with dealers, suppliers, and unions.

Critics contended that his approach favored short-term profits at the expense of long-term stability, thus undermining product quality and innovation. During his tenure, Stellantis faced a 20% drop in sales and a €12 billion decline in revenue, which raised alarms about the company’s financial outlook.

Impact on the U.S. Automotive Market

As the parent company of Jeep, Ram and Chrysler, Stellantis holds a key position in the US automotive industry. Therefore, Tavares’ resignation brings a wave of uncertainty that could impact market dynamics. His strict cost-cutting policies had created tension with U.S. dealers, causing dissatisfaction. However, his departure represents an opportunity to rebuild dealer relationships and adopt strategies that better align with their interests.

Stellantis experienced a 17% drop in US sales this year alone. The impact of leadership changes will depend on the new CEO’s approach, which could either stabilize or further unsettle sales. Under Tavares, the company prioritized high-end vehicles. However, the firm’s focus could shift to more affordable models, influencing competition and consumer preferences in the US market.

Potential Effects on Hot-Dipped Galvanized Steel Prices

The automotive industry relies heavily on hot-dipped galvanized (HDG) steel for vehicle manufacturing. As a result, changes in leadership at an American automotive manufacturer as large as Stellantis could impact both demand and pricing. Moreover, leadership transitions might alter production levels, with higher vehicle output potentially boosting HDG steel demand and driving up prices.

Stellantis’ procurement strategies also play a key role in shaping the steel supply chain. A new CEO could redefine supplier relationships, affecting demand and pricing for HDG steel. Of course, the overall sense of uncertainty surrounding Stellantis’ direction may also impact market sentiment, causing price fluctuations as stakeholders anticipate potential shifts in demand.

Moving Forward

Carlos Tavares’ resignation marks a pivotal moment for American automotive manufacturing, with significant implications for both the US automotive market and the industrial metals sector.

The company’s strategic direction under its new leadership will be crucial in determining its market position and influence on HDG steel demand. Stakeholders should closely monitor developments within Stellantis to assess potential impacts on market dynamics and pricing structures.

By Jennifer Kary

GM abandons robotaxi operations derailed by accident

By AFP
December 10, 2024

GM bought the Cruise startup in 2016 and has since poured billions of dollars to make the operation a viable business - Copyright AFP Richard A. Brooks

US auto giant General Motors announced Tuesday it will abandon its robotaxi development efforts after a highly publicized incident last year stymied its progress in the autonomous vehicle field.

The Detroit-based manufacturer plans to merge the Cruise robotaxi vehicle unit with GM’s technical teams to concentrate on developing advanced driver assistance systems for personal vehicles, a statement said.

The company said it abandoned the Cruise project “given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market.”

It marks a major turnaround for GM, which bought the Cruise startup in 2016 and has since spent billions of dollars to make the operation viable.

“A robotaxi business is not General Motors’ core business,” said GM CEO Mary Barra in a call with analysts.

But Barra said GM’s commitment to autonomous technology “is unwavering.”

The halt of operations comes a year after Cruise was forced to suspend all operations in San Francisco after one of its self-driving cars dragged a woman who had first been hit by a hit-and-run driver in the city.

Cruise lost its operating permits from regulators, paused expansions into other states and laid off 900 employees — a quarter of its workforce.

Shortly before the incident, California authorities had allowed for expanded driverless taxi services in San Francisco, giving the go-ahead for Alphabet-owned Waymo and Cruise.

Cruise’s exit confirms Waymo as the dominant player in the business, which was valued at $45 billion after a fundraising round in October, according to Bloomberg.

The company has been expanding its reach and currently runs robotaxi fleets in San Francisco, Phoenix and Los Angeles.

And in a team-up with Uber, the company is planning to offer Waymo robotaxi rides in Atlanta and Austin.

Amazon’s Zoox meanwhile is conducting robotaxi testing in California and Las Vegas, while Elon Musk recently unveiled what he said was a robotaxi capable of self-driving, predicting it would be available by 2027.

GM’s strategic pivot comes as embattled automakers worldwide face mounting pressure to balance investments in emerging technologies with near-term profitability.

The auto giant said that the restructuring is expected to generate annual savings exceeding $1 billion once completed in the first half of 2025.

GM’s share price was up by more than three percent in after hours trading on Wall Street.

Boeing resumes production at Seattle plants after strike


By AFP
December 10, 2024

Boeing workers shown just after union leaders announced November 4 that the contract was ratified, ending a more than 50-day strike - Copyright AFP/File Jason Redmond

Boeing has resumed production on the 737 MAX after a nearly three-month stoppage due to a lengthy labor strike in the Seattle region.

The company’s Renton factory resumed production on the 737 MAX on Friday, Boeing said. Its Everett facility, where the 767, 777 and 777X are produced, will resume operations in the coming days.

The two plants were shuttered for more than seven weeks after some 33,000 workers with the International Association of Machinists and Aerospace Workers (IAM) District 751 voted down an initial contract offer in September.

On November 4, workers ratified a revised proposal, setting the stage for a resumption of work.

Boeing said it has been working “methodically” to ensure a safe restoration of activity.

US air safety regulators have stepped up oversight of the company following several incidents, including a mid-flight Alaska Airlines panel blowout that required an emergency landing in January.

“Over the last several weeks, we dedicated time toward training and certifications, ensuring parts and tools are ready and completing work on airplanes in inventory to prepare to resume production at pre-stoppage rates,” Boeing said.

The statement came as Boeing disclosed that it made 13 new plane deliveries in November, including nine MAX jets produced before the strike.

But Boeing’s deliveries have lagged its historic trend, pinching revenues. Boeing has delivered just 318 jets in all through the first 11 months of the year.

In 2023, it delivered 528 planes. In 2018, Boeing delivered 806 planes.

Boeing’s travails have dented its financial outlook, resulting in the company raising more than $20 billion in new stock offerings this fall and trimming its workforce by 10 percent.

In recent weeks Boeing notified 4,700 US workers that they will be laid off, including nearly 2,600 in the Seattle region, according to figures compiled by AFP.

Biden says Trump economic plan will be ‘disaster’

“President-elect Trump is receiving the strongest economy in modern history,”

By AFP
December 10, 2024

President Joe Biden said US consumers would pay the price for the tariffs that Donald Trump has vowed to slap on US neighbors Mexico and Canada and on Asia-Pacific rival China - Copyright AFP Richard A. Brooks

Danny KEMP

Outgoing US President Joe Biden on Tuesday branded his successor Donald Trump’s economic plans a “disaster,” in a speech hailing his own legacy.

Biden said Trump’s threats to slap huge tariffs on imports were a “major mistake” and challenged Trump to build on what he said were the successes of his own administration.

The lame-duck president’s speech comes after Trump won a second term largely on the back of US voters’ anger at high costs of living under Democrats.

“I pray to God the president-elect throws away Project 2025. I think it’d be an economic disaster for us and the region,” Biden said at the Brookings Institution in Washington, referring to a conservative blueprint for a second Trump administration.

Coughing frequently because of a cold, Biden said US consumers would pay the price for the tariffs that Trump has vowed to slap on US neighbors Mexico and Canada and on Asia-Pacific rival China.

Together they are the three biggest US trading partners.

“I believe this approach is a major mistake,” Biden added.

At a separate event Tuesday, Treasury Secretary Janet Yellen said Trump’s tariffs could “derail the progress that we’ve made on inflation, and have adverse consequences on growth.”

She warned at the Wall Street Journal’s CEO Council Summit that sweeping tariffs could raise prices significantly for US consumers and pile pressure on companies which rely on imports.



– Shadow president –



The White House touted Biden’s speech as a “major address on his economic legacy” as the 82-year-old looks to the history books with fewer than six weeks left in office.

Biden dropped out of the 2024 presidential race against Trump in July due to concerns about his age and passed the torch to Vice President Kamala Harris, whom Trump comfortably defeated at the November polls.

Trump’s inauguration is not until January 20, but he has already become something of a shadow president, making pronouncements on the economy and foreign policy and being feted by world leaders.

Biden has kept a relatively low profile, but he came out swinging in defense of his own record before an audience of economists.

He contrasted his “middle-out, bottom-up economic playbook” with what he called Trump’s failed promise of “trickle-down economics” in which tax cuts for the wealthy are supposed to boost incomes.

Biden also touted achievements including the US economy’s recovery from the Covid pandemic and his huge investments in green technology and industry.

“President-elect Trump is receiving the strongest economy in modern history,” said Biden.

But the departing president said he regretted not signing his name to Covid stimulus checks sent out to Americans, like Trump had done.

Biden ended his speech with a broader plea for US leadership in a troubled world, even as Trump has repeatedly signaled his intention to take a more isolationist stance.

“If we do not lead the world, what nation leads the world?” he said.


Trump’s tariff plans may ‘derail’ US inflation progress: Yellen


By AFP
December 10, 2024


US Treasury Secretary Janet Yellen warned that President-elect Donald Trump's sweeping tariff proposals could raise prices for consumers and pressure firms - Copyright AFP/File Allison ROBBERT

US President-elect Donald Trump’s proposals to impose sweeping tariffs on imports could counter earlier efforts to cool inflation, Treasury Secretary Janet Yellen said Tuesday, warning that consumer prices could rise.

Her comments at the Wall Street Journal’s CEO Council Summit come as Trump has vowed broad tariffs of at least 10 percent on all imports, and higher rates on goods from China, Canada and Mexico.

Imposing broad-based tariffs could “raise prices significantly for American consumers and create cost pressures on firms” which rely on imported goods, Yellen said when asked about Trump’s plans.

She cautioned that this could weigh on the competitiveness of certain sectors and increase costs to households.

“This is a strategy I worry could derail the progress that we’ve made on inflation, and have adverse consequences on growth,” she said.

But she defended efforts by President Joe Biden’s administration to impose targeted tariffs on Chinese goods to counter unfair trade practices by Beijing.

She has previously raised concern over China’s industrial overcapacity — which risks a flood of underpriced goods into global markets and could undermine the development of key US industries.

On Tuesday, Yellen also expressed regret that the United States has not made more progress on the country’s deficit, saying she believes it “needs to be brought down, especially now that we’re in an environment of higher interest rates.”

She stressed the importance of an independent Federal Reserve too, saying that countries perform better economically when central banks are allowed to exercise their best judgment without political influence.

Trump has said that he would like “at least” a say over setting the Fed’s interest rate.

“I think it’s a mistake to become involved in commenting on the Fed and certainly taking steps to compromise its independence,” said Yellen.

“I believe it tends to undermine the confidence of financial markets and, ultimately, of Americans in an important institution,” she added.

Yellen noted that she has spoken with Trump’s Treasury chief nominee, billionaire hedge fund manager Scott Bessent, congratulating him on his nomination

US courts block Kroger’s $25 bn supermarket mega-merger


“Today’s win protects competition in the grocery market, which will prevent prices from rising even more” 

By AFP
December 10, 2024


Kroger, the supermarket giant which owns Food 4 Less among other grocery brands, was blocked by a US judge in its proposed merger with rival chain Albertsons - Copyright AFP Richard A. Brooks

Two US courts ruled against supermarket giant Kroger’s planned $24.6 billion acquisition of rival chain Albertsons on Tuesday, dealing an existential threat to the merger in a win for the Federal Trade Commission, which had argued the deal would harm consumers.

The first order implemented a temporary block after a three-week federal trial in Portland, Oregon, a significant blow to what would have been one of the largest retail grocery deals in US history.

“Plaintiffs are likely to succeed on the merits and the equities weigh in favor of an injunction,” US District Judge Adrienne Watson wrote in a court filing confirming the preliminary injunction, which delays the deal but does not kill it.

Later on Tuesday, a Washington state court also ruled on the merger, permanently blocking the transaction, according to US legal trade publication Law360.

It was not immediately clear how the two rulings from differing jurisdictions — the former a federal ruling, the latter at the state level — would work.

The FTC had argued the acquisition would lead to higher prices for groceries and other essential household items for millions of Americans.

The Oregon judge rejected the companies’ arguments that the merger would generate billions in cost savings and lead to lower prices for consumers, finding these claims were “neither merger-specific nor verifiable.”

A Kroger spokesperson said in a statement that the company was “disappointed” by the rulings, arguing the judges overlooked “the substantial evidence” presented in court.

“Through its proposed merger with Albertsons, Kroger would invest more than $1 billion in lower grocery prices, invest an additional $1 billion in higher grocery worker wages, and invest an additional $1.3 billion to improve Albertsons stores,” the spokesperson said.

Albertsons did not immediately respond to a request for comment.


– ‘Back to the drawing board’ –


“Today’s win protects competition in the grocery market, which will prevent prices from rising even more,” FTC spokesperson Douglas Farrar wrote in a statement shared with AFP after the injunction was granted.

The injunction makes clear, he added, “that strong, reality-based antitrust enforcement delivers real results for consumers, workers, and small businesses.”

At the close of the New York Stock Exchange on Tuesday, shares of Kroger were up 5.1 percent, while Albertson shares fell 2.3 percent.

In a statement, the Biden administration praised the judge’s decision.

“The Kroger-Albertsons merger would have been the biggest supermarket merger in history — raising grocery prices for consumers and lowering wages for workers,” National Economic Council Deputy Director Jon Donenberg said in a statement.

“Our Administration is proud to stand up against big corporate mergers that increase prices, undermine workers, and hurt small businesses,” he added.

“The Kroger-Albertsons deal always faced an uphill battle in its bid for approval,” GlobalData managing director Neil Saunders wrote in a note to clients. “While some of the FTC’s arguments were debatable, it operated from a position of strength.”

“For both firms, it is now a case of putting this distraction behind them and going back to the drawing board,” he added.

German VW workers kick off second round of strikes


By AFP
December 9, 2024


Volkswagen and unions have been locked in bitter talks since the company said in September it was considering closing factories in Germany for the first time in its history - Copyright AFP STRINGER

Thousands of Volkswagen workers walked out on Monday in the second round of strikes in the escalating conflict between unions and management over the German carmaker’s drastic savings plans.

The four-hour work stoppage was called at nine Volkswagen factories across the country.

The action is twice the length of the first “warning strike” organised by union IG Metall last week, which saw some 100,000 workers down tools.

The walkout was timed to coincide with the latest round of negotiations between unions and management over VW’s savings plan.

The two sides have been locked in bitter talks since Volkswagen said in September it was considering closing factories in Germany for the first time in its history.

The situation at the group’s eponymous Volkswagen brand is “serious” according to executives, with drastic action needed to put the company on a sustainable footing.

The auto manufacturer has struggled with the switch to electric vehicles as it battles high costs at home and rising competition from Chinese carmakers.

According to unions, management has laid out plans to close at least three plants in Germany, where the Volkswagen brand employs some 120,000 people.

Worker representatives have vehemently opposed the plan to close sites in Germany and threatened the group with massive industrial action.

Unions presented a cost-cutting plan to management, which they said would save the car maker 1.5 billion euros ($1.6 billion).

But management has rejected the proposals, saying they did not add up to a “sustainable solution”.

“We need to find further potential (for savings)… this is the only way we can finance our investments,” Volkswagen negotiator Arne Meiswinkel said Monday.

Volkswagen’s “insistence on maximalist positions” had “destroyed trust” among workers, IG Metall negotiator Thorsten Groeger said ahead of talks.

He added that if VW showed a willingness to compromise, it would be “possible that we can find solutions before Christmas” in just over two weeks.

Pushback against Volkswagen’s plans has also come from Germany’s political leadership.

“Closing factories would not be the right way,” Chancellor Olaf Scholz told the Funke media group over the weekend.

“Precisely because the bad decisions of management have contributed to the situation, that would not be ok,” said the Social Democrat, who is battling to save his job in elections slated for February.

Ecuadoran workers accuse ‘monster’ Japanese company of exploitation


By AFP
December 10, 2024


Maria Guerrero gave an emotional account of her experience on a Furukawa plantation - Copyright GETTY IMAGES NORTH AMERICA/AFP Michael M. Santiago

Ex-employees of a Japanese textile company in Ecuador told Tuesday of their dire living and working conditions, after the country’s constitutional court ruled the firm kept its staff in a slave-like setting.

Some gave birth to children in unsanitary and overcrowded camps, while others were denied proper medical attention after work-related injuries, according to testimonies given at a news conference in Quito.

Justices last week ordered the company, Furukawa, to pay $120,000 to each of the 342 victims — a total of around $41 million. It will also have to make a public apology to them.

As of 2021, Furukawa’s plantations for abaca — a fine plant fiber — covered almost 23,000 hectares spread over three provinces on the Pacific coast, where the majority of the population is Black.

“We have been confronting the monster that is Furukawa,” Segundo Ordonez, a 59-year-old farmer, told Tuesday’s meeting at the headquarters of Ecuador’s Ecumenical Human Rights Commission (CEDHU).

He recalled a lack of medical attention on the plantations, where nine people died in work-related accidents.

“A friend was cut, we were working in a downpour. That was the most anger I felt, seeing him shedding blood like an animal and nobody doing anything,” Ordonez said.

Maria Guerrero recounted that her parents took her and six siblings to the Furukawa crops when she was two years old. She knew no other place for three decades and met her husband there, with whom she had seven children.

“I gave birth to all my children in the company, I did not have a postpartum check-up or a medical check-up during my pregnancy. It is something I will always carry in my heart as a wound,” the 39-year-old said.

Furukawa contested the constitutional court’s decision, arguing that there were inconsistencies and asking for a downward revision of the financial compensation ordered, which it deemed impossible to comply with.

‘Huge demand’: Portugal dreams of becoming medical cannabis hub


By AFP
December 10, 2024


A Tilray worker seals cannabis flowers in a bag at their Portugal farm

 - Copyright AFP EVARISTO SA

TILRAY IS A CANADIAN CANNIBIS COMPANY TRADED ON THE TSX

Thomas CABRAL

“We should be the new El Dorado of medical cannabis production,” said agronomist Jose Martins as dozens of workers harvested marijuana in bright sunshine at a farm in southeastern Portugal.

The country is fast becoming a European hub for medical cannabis, with its warm temperate subtropical climate — often compared to California’s — making it an ideal place to grow the plant.

“No other country in Europe has better environmental conditions,” Martins told AFP at the plantation, which is surrounded by razor wire and infrared cameras.

Set in hills near Serpa dotted with olive trees and cork oaks, the 5.4-hectare (13.3-acre) farm owned by the Portuguese pharmaceutical company FAI Therapeutic produces around 30 tonnes of cannabis flowers a year.

They set up two years ago after a flood of foreign cannabis producers were drawn to Portugal because of its favourable climate and legislation.

More than 60 companies are currently authorised to grow, produce or distribute medical cannabis products there, with 170 more having applied for permission.

Portugal exported some 12 tonnes of cannabis-based medical products last year, mainly to Germany — Europe’s largest market — as well as to Poland, Spain and Australia, according to the national drugs agency, Inframed.

– High standards –

But the industry has even higher ambitions.

“Portugal is clearly at the forefront of European countries producing cannabis for medical use,” said Jose Tempero, the medical director at Tilray, a Canadian multinational that set up a cannabis farm near the central town of Cantanhede in 2019, straight after Portugal legalised marijuana-based medicines.

The farm has its own labs and processing and packaging sites, with its cannabis oil selling as far afield as Latin America.

The Portuguese boom is fuelled by growing global demand for medical cannabis for chronic pain, the side effects of cancer therapy, some forms of epilepsy and other ailments.

Around 50 nations have so far approved the use of cannabis-based medicines, and that number is expected to rise.

The global medical cannabis market is expected to grow to over $65 billion by 2030 from $16.6 billion last year, according consulting firm Grand View Research.

“There is a huge demand from patients,” said Bernard Babel, the head of German cannabis pharmaceutical firm Avextra, which set up part of its business in Portugal.

Portugal’s rising importance in the emerging industry down to more than its sunny climate, however.

Babel said it has “very good regulatory framework” thanks to its 2019 legislation which sets well-defined quality standards, he added.

– ‘Growing acceptance’ –

Pedro Ferraz da Costa, CEO of the Iberfar Group, the parent firm of the Serpa farm, said these regulations reassure international customers “that the products leaving the country offer safety guarantees”.

While Portugal may be at the forefront of medical cannabis production in Europe, patients in the country complain they have difficulty obtaining the drugs since many doctors are still reluctant to prescribe them and their cost is not fully covered by state healthcare.

“There is a lack of information” within the medical profession in this “very conservative” country, said Lara Silva, whose six-year-old daughter suffers from a serious form of epilepsy that has hampered her motor and cognitive development.

When she decided to treat her daughter with CBD, a derivative of cannabis two years ago, she said she had to order it from Spain.

Tilray’s Tempero said medical marijuana still suffers from a certain “stigma” but he sees “a growing acceptance of cannabis beyond its recreational use”.

Op-Ed: Brain rot — Is the Oxford University Press word of the year too honest?


By Paul Wallis

DIGITAL JOURNAL
December 10, 2024


Australian legislation could force social media firms to take steps to prevent those under 16 years of age from accessing platforms such as X, TikTok, Facebook and Instagram - Copyright GETTY IMAGES NORTH AMERICA/AFP/File Michael M. Santiago

“Brain rot” is the effect of too much information. Doomscrolling is one of the symptoms. According to The Guardian, this 20-plus-year-old expression is finally getting proper recognition.

It’s hard to argue that most of the “information” is anything but rot. The sheer scale and scope of bot-babble is a statistician’s horror story. The brain rot experience is extremely stressful and destructive.

That’s not quite the whole story. As a notation on a tombstone, “brain rot” would be very appropriate. As The Guardian article points out, this utter drivel is also linked to profit; we all know how well that works out.

There are a few flaws in the general theory of brain rot, though, despite the United States, X, FOX News, and similar irreproachable fountains of fecal fabrication.

The major flaw is a hard fact of marketing and advertising, and it also applies to social media and mainstream fantasyland.

In advertising, the brain automatically turns off about 95% of the advertising it sees. The information is either irrelevant or simply useless.

For example – Non-existent pet-eating Ohioans aren’t exactly urgent information.

This turnoff process then evolves into actual aversion. The sources are irritating if identified as serial offenders. People start to actively dislike the sources.

These sources can also easily discredit themselves, although that can take time.

At this point, 5% at most of the information is getting through to the audience. That’s a problem for the source. One counter to this underwhelming level of performance is repetition. Just keep on lying, in effect.

However, with today’s fashionable non-stick human brains, even that message may not stay in place too long.

Brain rot in one sense can solve itself. At a certain level of irritation, the negative reaction to information swamps its source.

One of the quick ways of infuriating anyone is to tell a person with a problem that they don’t have a problem. Try telling them it doesn’t hurt when it does.

Peer group psychology is prevalent in misinformation. The information works on the lowest common denominator. American psychology is one of the great exponents of peer group psychology, and it works all too well.

It’s how kids are taught to fit in with people they can’t stand in places they detest. It’s highly oppressive.

“Public opinion” is easy to selectively misrepresent on the same basis. Someone else thinks something, so if you’re in the same demographic, you must think that, too. You all have to fit in, like corpses in a mass grave.

It’s utter garbage, of course, and always has been, but they’re selling it.

I’ve always found peer group psychology extremely repulsive. I think people who respond to it are extremely naïve.

It’s exceptionally common on social media. Hordes of people fearlessly agreeing with each other. There’s nothing at all likely about any number of humans agreeing so much with each other about anything.

As an expression, “brain rot” is right on the money. It’s a rotting edifice of total nonsense. It’s doing untold damage to humanity, and nobody has the guts to shut it down.

The question is what happens when brains refuse to rot? Peer groups can react negatively, too, and violently.

Exactly how dumb can you afford people to be? The bottom of the barrel is making noises already.


Disclaimer

The opinions expressed in this Op-Ed are those of the author. They do not purport to reflect the opinions or views of the Digital Journal or its members.