Monday, February 12, 2024

Cocoa prices soar to record highs as traders scramble for supplies

Maytaal Angel and Marcelo Teixeira
Thu, February 8, 2024 

Giant Hershey's Kiss chocolates are seen on display in a shop in New York City


By Maytaal Angel and Marcelo Teixeira

LONDON (Reuters) -Global cocoa prices hit fresh record highs on Thursday as traders continued to scramble for supplies, predicting ever wider deficits this season and with concerns growing for the next.

The surge in prices is filtering through to retail shelves, with Hershey expecting to see a further slowdown in demand for its products from cash conscious customers after its sales volumes slid 6.6% in the fourth quarter.

The chocolate major, shares of which are down some 30% from a May 2023 peak, also said earlier that it expects the higher cocoa prices to limit its earnings growth this year.

Volumes at its rival, Cadbury maker Mondelez, also fell last quarter.

"Going back 47 years, almost every major price blip was followed by a massive 20-50% price break, within one to two years. Is this situation different? According to my sources in the cocoa bush of West Africa...YES!" said Jim Roemer, meteorologist and commodity trading advisor at Best Weather Inc.

"At least for now, a squeeze situation may well continue for another month or two," he added, citing current damage to the cocoa crop from strong Harmattan winds in top producing region West Africa.

Benchmark London cocoa futures hit a record 4,670 pounds a metric ton during the session at ICE exchange on Thursday, before closing at 4,660 pounds/ton, gaining 7.3% in the day. Prices have roughly doubled since the start of last year.

In New York, benchmark ICE cocoa futures hit a new all-time high of $5,874 a ton, closing up 7.3% at $5,805, having risen about 90% since the start of last year.

Exporters and pod counters in No. 2 cocoa producer Ghana told Reuters output for the current 2023-24 season is expected to reach just 475,000-500,000 tons versus 655,000 last year.

Last week, a Reuters cocoa poll forecast a global deficit of 375,000 tons in the 2023/24 season, more than double the average view in the previous poll in August, and indicating a third successive supply deficit for the market.

An industry source told Reuters that traders feared the shortage will extend into next year, with missing volumes from this season's crop having to be filled with beans from the next.

"What happens if the crop is poor next season?" he asked.

In other soft commodities, raw sugar rose 0.4% to 23.98 cents per lb, while white sugar gained 1.4% to $665.70 a ton.

Arabica coffee fell 1.1% to $1.8585 per lb and robusta coffee lost 0.2% to $3,109 a ton.

(Reporting by Maytaal Angel and Marcelo Teixeira; Editing by Kirsten Donovan and Shinjini Ganguli)
CERN proposes $17 billion particle smasher that would be 3 times bigger than the Large Hadron Collider

Ben Turner
Thu, February 8, 2024 

A schematic map showing a possible location for the Future Circular Collider.

Researchers at the world's biggest particle accelerator have put forward proposals to build a new, even larger atom smasher.

The $17 billion Future Circular Collider (FCC) would be 57 miles (91 kilometers) long, dwarfing its predecessor, the 16.5-mile-long (27 kilometers) Large Hadron Collider (LHC), located at the European Organization for Nuclear Research (CERN) near Geneva.

Physicists want to use the FCC's increased size and power to probe fringes of the Standard Model of particle physics, the current best theory that describes how the smallest components of the universe behave. By smashing particles at even higher energies (100 tera electron volts, compared with the LHC's 14), the researchers hope to find unknown particles and forces; discover why matter outweighs antimatter; and probe the nature of dark matter and dark energy, two invisible entities believed to make up 95 percent of the universe.

Related: Our universe is merging with 'baby universes,' causing it to expand, new theoretical study suggests

"The FCC will not only be a wonderful instrument to improve our understanding of the fundamental laws of physics and nature," Fabiola Gianotti, CERN's director-general, said at a news conference Monday (Feb. 5). "It will also be a driver of innovation, because we will need new advanced technologies, from cryogenics to superconducting magnets, vacuum technologies, detectors, instrumentation — technologies with a potentially huge impact on our society and huge socioeconomic benefits."

Atom smashers like the LHC collide protons together at near light speed while looking for rare decay products that could be clues to new particles or forces. This helps physicists scrutinize their best understanding of the universe's most fundamental building blocks and how they interact, described by the Standard Model of physics.

Though the Standard Model has enabled scientists to make remarkable predictions — such as the existence of the Higgs boson, discovered by the LHC in 2012 — physicists are far from satisfied with it and are constantly looking for new physics that might break it.

This is because the model, despite being our most comprehensive one yet, includes enormous gaps, making it totally incapable of explaining where the force of gravity comes from, what dark matter is made of, or why there is so much more matter than antimatter in the universe.

To unlock these new frontiers, physicists at CERN will use the sevenfold increase in beam energy of the FCC to accelerate particles to even higher speeds.

But the detector, despite having taken a promising step forward, is far from built. The proposals put forward by CERN are part of an interim report on a feasibility study set to be finished next year. Once it's complete and if the detector plans go ahead, CERN — which is run by 18 European Union member states, as well as Switzerland, Norway, Serbia, Israel and the U.K. — will likely look for additional funding from nonmember states for the project.

Despite the high hopes for what the new collider could find, some scientists remain skeptical that the expensive machine will encounter new physics.

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"The FCC would be more expensive than both the LHC and LIGO [Laser Interferometer Gravitational-Wave Observatory] combined and it has less discovery potential," Sabine Hossenfelder, a theoretical physicist at the Munich Center for Mathematical Philosophy, wrote in a 2019 post on the platform X, formerly Twitter. "It would, at the present state of knowledge and technology, not give a good return on investment. There are presently better avenues to pursue than high energy physics."

Member states will meet in 2028 to decide whether to greenlight the project. Then, the first phase of the machine — which would collide electrons with their animatter counterparts, positrons — would come online in 2045. Finally, in the 2070s, the FCC would begin slamming protons into one another.


How the Large Hadron Collider's successor will hunt for the dark universe

Robert Lea
SPACE.COM
Thu, February 8, 2024 

Planning is well underway for the successor to the world's most powerful particle accelerator, the Large Hadron Collider (LHC).

The new "atom smasher," named the Future Circular Collider (FCC), will dwarf the LHC in size and power. It will smash particles together with so much energy, in fact, that scientists say it may be capable of investigating our universe's most mysterious entities: Dark energy and dark matter.

LHC operators at CERN revealed the results of a "midterm review" of their FCC Feasibility Study to the press on Monday (Feb. 5). The feasibility study began in 2021 and is set to conclude in 2025. The findings thus far constitute three years of work, with scientists and engineers from across the globe determining the placement of the new accelerator's ring, the implementation of the FCC facility, concepts for detectors and funding aspects.


The FCC will run under the jurisdiction of France and Switzerland, just like the LHC currently does, but the future accelerator will stretch 56.5 miles (90.7 kilometers), making it over three times the length of CERN's current particle accelerator, which is 16.8 miles (27 kilometers) long. The LHC is the largest and most powerful particle accelerator in the world.

Related: Dark matter may be hiding in the Large Hadron Collider's particle jets


A small stretch of the near 17-mile-long LHC particle accelerator which will be dwarfed by the FCC. (Image credit: Robert Lea)

The FCC will operate in the same way as the LHC, accelerating charged particles around a loop, using superconducting magnets, then smashing them together as they approach the speed of light.

Scientists can probe fundamental physics by observing showers of secondary particles created when particles like protons slam together. But whereas the LHC can attain energies of around 13 terra electronvolts (TeV) when operating at full power, CERN says the FCC should be able to reach energies as great as 100 TeV.

"Our aim is to study the properties of matter at the smallest scale and highest energy," CERN director-general Fabiola Gianotti said at the interim report presentation in Geneva on Tuesday (Feb 6.)
Why do particle accelerators need more power?

The crowning achievement of the LHC thus far is undoubtedly the discovery of the Higgs Boson, the force-carrying particle of a field called the Higgs Field, which permeates the universe and dictates most other particles' masses.

The breakthrough sighting of the Higgs Boson by two LHC detectors was announced on July 4, 2012, and is credited with completing the Standard Model of particle physics, which is humanity's best description of the universe, its particles and their interactions on a subatomic scale.

Yet, the Standard Model still requires some tweaking — and, since 2012, scientists have been using the LHC to search for physics beyond the model to make those adjustments. Success has been limited. This search will get a boost when the LHC's high luminosity upgrade is completed, which will mean the particle accelerator can perform more collisions and offer scientists more opportunities to spot exotic physics.


THE GOD DAMN PARTICLE

A Higgs boson decays recorded in a particle collision recorded by the ATLAS detector at the LHC on May 18, 2012. (Image credit: ATLAS)



The two main outliers of the Standard Model (aka, why some of those tweaks are necessary) are dark matter and dark energy.

Sometimes collectively known as the "dark universe," these phenomena constitute such large mysteries for scientists because dark energy accounts for around 68% of the universe's energy and matter, while dark matter accounts for around 27% of these continents. But neither can be seen because they don't interact with light, and no one has been able to pin them down through other forms of direct detection, either. That means that the matter and energy we understand and can account for comprise no more than 5% of the universe's contents, and we have little idea what around 95% of the universe actually is.

And probing these aspects of the universe may require smashing particles together with much more energy than the high-luminosity LHC is capable of.

To begin with, dark matter can't be "standard matter" like the atoms that make up the stuff we see around us on an everyday basis, like stars, planets and our bodies. Remember how it doesn't interact with light? Well, protons, neutrons and electrons — collectively known as "baryons" — do. So, dark matter must be something else.

Currently, the only way scientists can infer the presence of dark matter is via its interaction with gravity and the effect this has on baryonic matter and, in turn, light.

Dark energy is even more problematic. It's the force that scientists see driving the acceleration of the universe's expansion.

It concerns a period of expansion separate from the universe's initial inflation, which was triggered by the Big Bang. After that early expansion slowed to a near halt, in a later epoch, the universe unexplainably started to expand again. This expansion rate is actually speeding up to this day, with dark energy used to account for that action.

Yet, as we've discussed, scientists don't actually know what dark energy is.

To see why that is troubling, imagine pushing a child on a swing. The Big Bang is akin to your first and only push that gets the swing in motion. The swing may keep going for a short while, even without any action from you, then it will come to a half. Then, imagine that it suddenly begins motion again despite you just standing there. And not only that, but it swings faster and faster, reaching higher and higher points. This is similar to what dark energy is doing to the very fabric of space.

CERN hopes the high-energy collisions of the FCC could reveal the nature of this ongoing, late-universe push and the particles that make up dark matter.

However, it will be some time before this future particle accelerator is ready to embark on its investigation of the dark universe.
The timeline and cost of the Future Circular Collider

In 2028, three years after the completion of the FCC feasibility study, CERN member states will convene to decide if the FCC will get the go-ahead. Should the future collider get greenlit, CERN says, construction will begin in the mid-2030s.

The FCC will be completed in stages. The first stage is a electron-positron collider (FCC-ee) that will slam together negatively charged electrons, their positive antiparticle counterparts, known as positrons, and other light particles. CERN adds that FCC-ee should start operations in 2045.

The second machine of the FCC will be a proton colliding accelerator (FCC-hh) sitting alongside the FCC-ee in the same evacuated tunnel buried under the French-Swiss Alps and Lake Geneva. This part would come online no sooner than 2070, according to CERN.

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— Researchers dig deep underground in hopes of finally observing dark matter

— Euclid 'dark universe' telescope captures 1st full-color views of the cosmos (images)

At the CERN press conference, Gianotti laid out some of the costs of the FCC, saying that the first FCC-ee stage alone would cost an estimated $17 billion USD.

CERN's Director general justified the cost by adding that the FCC is the only machine that would allow humanity to make the big jump in studying matter needed to crack the secrets of the dark universe.


A four-legged ‘Robodog’ is patrolling the Large Hadron Collider

Mack DeGeurin
Thu, February 8, 2024 

CERT’s four-legged Robodog can maneuver through cramped spaces and use sensors to spot fires, leaks, or other hazards.


Traversing through the dark, underground areas of the Large Hadron Collider (LHC) in Geneva, Switzerland isn't for the faint of heart. The world’s most powerful particle accelerator violently smashes protons and other subatomic particles together at nearly the speed of light, which can emit radiation at levels potentially harmful to humans. If that weren't enough, long stretches of compact, cluttered areas and uneven surface areas throughout the facility make stable footing a necessity.

Scientists at the European Organization for Nuclear Research (CERN) are turning to four-legged, dog-inspired robots to solve that problem. This week, CERN showed off its recently developed CERNquadbot robot which they said successfully completed its first radiation survey in CERN’s North Area, the facility's largest experimental area. Looking forward, CERN plans to have its “Robodog” trot through other experiment caves to analyze areas and look for hazards.

Why does CERT need a robot dog?

The hazardous, sometimes cramped confines of the LHC’s experiments caverns pose challenges to both human workers and past robot designs alike. Temporary radiation levels and other environmental hazards like fires and potential water leaks can make some areas temporarily inaccessible to humans. Other past CERT robots, while adept at using strong robotics arms to carry heavy objects over distance, struggle to traverse over uneven ground. Stairs, similarly, are a nonstarter for these mostly wheeled and tracked robots.

That’s where CERT’s robot dog comes in. CERTquadbot’s four, dog-like legs allow it to traverse up and down and side to side, all while adjusting for slight changes on the ground's surface. A video of the robot at work shows it tic-tacking its four metal legs up and down as it navigates through what looks like pavement and a metal grated floor, all the while using onboard sensors to analyze its surroundings. A human operator can be seen nearby directing the robot using a controller. For a touch of added flair, the robot can also briefly stand up on its two hind legs. The Robodog had to use all of its various maneuverability during its recent test-run up the North area, which was reportedly filled with obstacles.

“There are large bundles of loose wires and pipes on the ground that slip and move, making them unpassable for wheeled robots and difficult even for humans,” CERN’s Controls, Electronics and Mechatronics robotics engineer Chris McGreavy said in a statement.

Thankfully for the CERN scientists, the Robodog rose to the occasion. And unlike other living dogs, this one didn’t need a tasty treat for a reward.

“There were no issues at all: the robot was completely stable throughout the inspection,” McGreavy added.

https://youtu.be/cbcpJZicJ2w?si=35A_xHeZ7si6lhtX

Now with the successful test completed, CERN says it's upgrading the robot and preparing it and its successors to deploy in experiment caves, including the ALICE detector which is used to study quark-gluon plasma. These areas often feature stairs and other complex surfaces that would stump CERN’s other, less maneuverable robots. Once inside, the robot dogs will monitor the area for hazards like fire and water leaks or quickly respond to alarms.

CERN directed PopSci to this blog post when we asked for more details regarding the robot.

Dog-inspired dogs are going where humans can’t

Four-legged quadruped robots have risen in popularity across numerous industries in recent years for their ability to nimbly access areas either too cumbersome or dangerous for humans and larger robots to access. Boston Dynamics’ “Spot,” possibly the most famous quadruped robot currently on the market, has been used to inspect dangerous offshore oil drilling sites, explore old abandoned mining facilities, and even monitor a major sports arena in Atlanta, Georgia. More controversially, law enforcement officials in New York City City and at the southern US border have also turned to these quadruped style robots to explore areas otherwise deemed too hazardous for humans.

Still, CERN doesn’t expect its new Robodog to completely eliminate the need for the other models in its family of robots. Instead, the various robots will work together in tandem, using their respective strengths to fill in gaps with the ultimate goal of hopefully speeding up the process of scientific discovery.
Barclays to adopt fresh curbs on oil and gas financing


Fri, February 9, 2024

 A Barclays bank building is seen at Canary Wharf in London

By Simon Jessop and Sinead Cruise

LONDON (Reuters) -Barclays, Britain's biggest lender to the oil and gas industry, told Reuters it will stop direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production.

The move, part of its Transition Finance Framework (TFF), published on Friday, follows intense pressure from campaigners over its energy policy amid an increase in climate damaging emissions from the burning of fossil fuels.

In addition, from 2025, the bank will curb broader financing to non-diversified companies such as pure-play exploration companies if more than 10% of their expenditure goes toward expanding production over the longer term.

Barclays group head of sustainability Laura Barlow said the new policy was part of its commitment to reduce emissions linked to the bank's lending and bolster finance to greener alternatives.

"It's about strengthening our focus on the energy transition," Barlow said.

Barlow said existing upstream energy clients that breach the 10% threshold would go through an enhanced oversight process that also looked at the client's investment in decarbonisation.

"It wouldn't be a red line but ... would inform our risk appetite," Barlow said.

Barclays joins banks such as HSBC and BNP Paribas that are tightening oil and gas lending while pledging to increase funding to areas such as renewable energy that can help cap global warming, targeting $1 trillion in such lending by 2030.

Non-profit ShareAction, that had pressured Barclays to do more to help tackle climate change, said that in response to the new curbs it had withdrawn a proposed shareholder resolution calling for the bank to stop funding new expansion projects.

The project finance curbs are not expected to have a major impact on its business given its limited market share. The bank is not in the top 15 of major project finance banks globally, and most have yet to adopt similar restrictions.

Jeanne Martin, its head of banking standards, said the move to limit finance to expansion projects and set climate tests for all clients was good to see, although it still had concerns, including around the bank's funding of fracking.

"We have outstanding concerns ... so have made clear to the bank that we will be scrutinising the way it implements its fossil fuel policy and will not hesitate to escalate our engagement again should we be dissatisfied with ... progress," she said.

Danish investor Sparinvest, which had backed the resolution, said Barclays' policy "introduces significant new commitments" but urged "further steps, for example on short-lead time assets", Senior Portfolio Manager David Orr said in a statement.

Katharina Lindmeier, senior responsible investment manager at UK pension investor Nest, called it a "strong step forward" but said the bank "could and should" go further", including on fracking.

The bank was the biggest funder of fossil fuels in Europe between 2016 and 2022 and the second-biggest in 2022, a report by the non-profit Rainforest Action Network showed, though most of it came from corporate lending rather than project finance.

Barlow said the bank's oil and gas on-balance sheet financing as a percentage of its total lending activities was less than 2%, with capital markets financing for the sector less than 3% of total activity.

Emissions linked to Barclays' lending to the energy sector dropped 32% between 2020 and 2022, beating a target reduction of 15%, the bank said in its 2022 annual report.

Additional restrictions introduced by Barclays include no financing for exploration and production in the Amazon, and, from June 2024, no financing to firms that get more than 20% of their production from unconventional sources such as oil sands.

All Barclays corporate clients in the energy sector will be expected to present transition plans or decarbonisation strategies by January 2025, alongside 2030 methane reduction targets, and a commitment to end all non-essential venting and flaring by 2030.

The clients would also need to have near-term net-zero aligned targets for Scope 1 and 2 emissions - those linked to their own operations and energy usage - by January 2026.

Barclays' head of sustainable finance, corporate and investment bank Daniel Hanna said the bank looked at over 80 variables when assessing clients' decarbonisation plans and had committed to review 750 client entities at the last AGM.

In January, Barclays announced the formation of a new energy transition group to provide strategic advice to clients on everything from renewables to nature-based solutions and carbon capture.

(Reporting by Simon Jessop and Sinead Cruise in London; Editing by Stephen Coates)

Barclays to Acquire Tesco’s Retail Bank, Grocer Vows Buyback

Jenny Surane and Jan-Henrik Förster
Fri, February 9, 2024 


(Bloomberg) -- Barclays Plc said it will acquire much of Tesco Plc’s banking business as the lender seeks to establish a greater foothold in retail banking in the UK.

Barclays expects to pay about £600 million ($758 million), according to a statement on Friday. Tesco separately said it expects to receive around £1 billion in cash from the sale — which includes the release of regulatory capital and an earlier dividend paid by Tesco Bank — and it will use the majority of that for a share buyback.

The move comes just weeks after Barclays Chief Executive Officer C.S. Venkatakrishnan said the firm will likely have to grow in areas like retail banking in order to shrink the investment banking unit’s share of the bank’s overall business as part of his bid to boost the lender’s share price. The company is planning to unveil a series of new financial targets at an investor event later this month.

The transaction includes £4.2 billion of credit-card receivables, £4.1 billion of unsecured personal loans and £6.7 billion in customer deposits. The two companies will also enter into a 10-year deal that allows Barclays to use the Tesco brand to market and distribute credit cards, unsecured personal loans and deposits, according to the statement.

“This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses,” Venkatakrishnan said in the statement.

What Bloomberg Intelligence Says:

Barclays’ planned acquisition of Tesco’s UK retail banking business, £8.3 billion of unsecured loans, is small at 2% of total loans, but is a big statement on the lender’s direction. Along with plans to sell its German consumer finance business and restructuring at its investment bank (which we expect to be detailed at its Feb. 20 investor day), UK retail banking and corporate banking is the new growth focus as Barclays looks to revive its sector-low 0.3-0.4x book valuation.

— Philip Richards and Uzair Kundi, BI banking analysts

Shares of Barclays were little changed in early London trading on Friday and Tesco jumped as much as 2.4%.

Tesco’s rival J Sainsbury Plc has also been looking at disposing of its banking business for quite some time. Last month, it said it’s planning a “phased withdrawal” from the division as part of its wider aim to focus on its core food business. In 2023, British lender Co-operative Bank agreed to buy Sainsbury’s Bank’s £500 million mortgage portfolio.

The 10-year deal with Tesco will require Barclays to pay the retailer £50 million per year in royalty, new account and Clubcard participation fees.

About 2,800 Tesco bank employees, including the unit’s senior managers, will transfer to Barclays. The grocer will still operate ATMs and offer insurance, travel money and gift cards, according to the statement.

Barclays said it will finance the deal with existing resources and doesn’t expect it to materially impact financial returns or shareholder distributions. While the Tesco transaction is expected to reduce Barclays’ common equity tier 1 ratio by 0.3%, a proposed sale of its German consumer-finance business will be accretive, according to the statement.

The transaction, subject to regulatory approvals, is expected to complete in the second half of 2024.

Barclays investors crave simpler bank as CEO Venkat prepares revamp


Thu, February 8, 2024 




By Sinead Cruise and Lawrence White

LONDON (Reuters) -Barclays' CEO C.S. Venkatakrishnan is under pressure to deliver a plan this month to win over restless shareholders clamouring for a streamlined business model and higher, more sustainable returns for a fraction of the risk.

The British bank has one of the lowest valuations among peers, with shares down by around 24% in the last year, driven in part by a hefty disposal of stock by a top investor, Qatar Holding, on Dec. 4.

It has also underperformed UK and eurozone banking indexes, data shows.

Eight shareholders who spoke to Reuters -- including four among the top 20 -- favour shrinking its investment bank, offloading stakes in sub-scale businesses or exiting non-core assets entirely, and putting billions back into their pockets.

Barclays' CEO, known as Venkat, has been listening. Speaking at the World Economic Forum at Davos last month, he acknowledged the outsized contribution Barclays' investment bank had made to group profits, and pledged to restore balance and clarity on the make-up of the bank.

In a bid to bolster its British retail bank, Barclays said on Friday it had agreed to buy supermarket Tesco's banking operations.

But with the global economy in flux, buyers of businesses Barclays aims to sell appear to be running shy.

The bank's struggle to secure backers for its UK payment business, reported by Reuters on Feb 1, risks complicating Venkat's aims and shareholder hopes of a swift turnaround.

Barclays, one of Britain's oldest banking brands, lacks focus, according to fund managers who say they are underwhelmed by its risk-adjusted returns.

"The basic problem is this bank isn't boring enough for the majority of its investors," said Sajeer Ahmed, portfolio manager at Aegon Asset Management, which manages Barclays shares.

"It is an investment bank with a retail bank attached. Management has tried to spell out the benefits of diversification but this just isn't supporting the bottom line right now," he said.

Many banks streamlined their riskiest activities after the 2008-9 financial crisis, but Barclays set its sights on growing a top-tier transatlantic investment bank from the embers of Lehman Brothers.

The regulation which followed the crisis has made making money from investment banking much tougher, pushing investors to question whether it is time to scale back those ambitions.

Barclays declined to comment.

The bank, which drafted in Boston Consulting Group to help with its revival plan, is due to present it on Feb. 20.

HIGH RISKS, UNEVEN RETURNS

The investment bank has long been central to Barclays' universal banking business model, which also spans consumer and corporate lending.

But six shareholders said the group's depressed valuation reflected the investment bank's high costs and unpredictable returns.

In nine months through September, Barclays' Corporate & Investment Bank reported quarterly income ranging between 4 billion and 3.1 billion pounds, with quarterly costs of around 2 billion.

Returns on tangible equity (ROTE), a key profitability measure, ranged between 15.2% and 9.2% across these quarters.

The division consumes 63% of group capital reserves, and delivers returns below industry peers, UBS analyst Jason Napier said in a Jan. 11 note.

By contrast, BNP Paribas commits less than a third of group capital to its investment bank, while UBS has said it will allocate no more than 25% of risk-weighted assets to its investment banking operations.

Investment banking as an industry also tends to be accident-prone. In 2022, a U.S. securities sales blunder saw the bank's litigation and conduct costs that year surge to 1.6 billion pounds from 400 million pounds the year before.

"Execution is key," said Benjamin Toms, analyst at RBC. "This means no mishaps and a conduct and litigation expense that is closer to 100 million pounds rather than a billion."

INVESTORS LOSE FAITH

Barclays' forward price to book ratio, a measure of its market valuation relative to assets, is at 0.34 -- compared with 0.34 for Deutsche Bank, 0.56 at BNP Paribas, 0.82 at HSBC and 0.95 at UBS, based on LSEG data on Feb. 8.

Investors said this reflects doubts about Barclays' mix of businesses, and a growing consensus that a leaner, simpler bank could deliver stronger returns.

Barclays has sub-scale businesses which could fetch respectable price-tags if they were sold, five of the investors said, pointing out that several of these units were unlikely to be more than number three or four in their respective markets.

Disposals from Barclays' Consumer, Cards & Payments (CCP) unit would be welcomed, four of the shareholders said, with one suggesting the international credit cards business applied a "complexity discount" to the bank's overall valuation.

Reuters earlier reported the bank's wider study of its global payments activities.

Capital unlocked by asset sales could support a more generous dividend or buyback programme or be reinvested in fee-earning businesses like wealth management, three investors said.

"In my opinion the only way the shares re-rate is a meaningful reduction in the size of the corporate and investment bank, and re-focus of the business on forecastable franchise based revenue streams," said Ed Firth, analyst at KBW.

Jefferies analysts expect Barclays to propose a sharp rise in capital redistribution, rising to around 7 billion pounds by end-2025, to help boost flagging shares.

There are signs short-sellers are retreating ahead of any potential move. Barclays has not featured in the top 10 of EMEA's most heavily shorted large-cap banks since October, research from data firm Hazeltree showed.

Investors who spoke to Reuters expect the bank to upgrade its annual 10% ROTE target to between 11% and 13%. In 2023, U.S. bank JP Morgan achieved 21%.

"I think people are struggling to believe that higher returns are deliverable and sustainable," said Ben Ritchie, head of developed market equities at Abrdn.

"But once companies get the credit for consistent delivery, it is a game-changer," he said.

($1 = 0.7920 pounds)

(Editing by Jane Merriman)




UBC student group sues Jewish non-profit and former contractor, claiming defamation over pro-Hamas stickers

CBC
Thu, February 8, 2024

The UBC sign is pictured at the University of British Columbia in Vancouver in April 2019. (Jonathan Hayward/The Canadian Press - image credit)


The Social Justice Centre (SJC) at the University of British Columbia is suing a prominent Jewish organization and one former contractor for defamation after pro-Hamas stickers bearing the SJC's logo were placed on campus in November.

The stickers said "I [heart] Hamas" and circulated widely on social media in the wake of Hamas' Oct. 7 attacks in Israel.

The student-run SJC — which advocates "solidarity with Palestine," according to the claim — publicly denied involvement in the stickers and denounced their message on Nov. 18.


On Nov. 20, non-profit Hillel B.C. — which "promotes Jewish life on campus and beyond," according to its website — said in a public statement an "independent contractor" was responsible for the "offensive" stickers and had been fired.


A photo of an I Heart Hamas sticker posted on Instagram by UBC professor Vadim Marmer. Marmer deleted his post and issued an apology to student-run advocacy group UBC Social Justice Centre after learning they were not behind the post. The original Instagram post was picked up and shared on X, formerly Twitter, leading to threats against the students who run the organization. (Instagram)

"The defamatory statement was made with actual malice, knowing it was false, for the improper or ulterior motive of impugning SJC's reputation … and encouraging others to inflict on SJC and its leaders violence, vitriol, harassment, intimidation and hostility," reads the SJC's notice of civil claim filed in the Supreme Court of B.C. on Wednesday.

Hillel B.C., which is independent from UBC but located at the university, has not publicly named the individual.

"This incident has nothing to do with Hillel B.C.," executive director Rob Philipp said in a previous emailed statement to CBC News. "When Hillel found out about the activity it terminated its relationship with the independent contractor who was doing some unrelated part-time work for us."

However the lawsuit claims the stickers were created and distributed by an individual and "unknown others also acting on behalf of Hillel B.C.," and says the organization is vicariously liable.

On Thursday, Hillel said in a public statement it had not yet been served with court documents and could not comment on the lawsuit as it is currently before the courts.

Members from the university Jewish community are pictured gathered during a pro-Israeli rally organized by Hillel B.C. at the University of British Columbia on Wednesday, Nov. 1, 2023. (Ben Nelms/CBC)

"At a time when antisemitic hate crimes in British Columbia have surged, including on our campuses, we are deeply concerned that this lawsuit will result in a further reduction of safe spaces for Jewish students," read the statement.

Hillel B.C. assistant executive director Ohad Gavrieli declined to comment further in an emailed statement to CBC News.

CBC News has also reached out to the former contractor for comment.

The SJC, which is affiliated with UBC's student union the Alma Mater Society (AMS), says the sticker incident has caused its members to feel unsafe on campus due to harassment, co-plaintiff and SJC member Matthew Cheesman said Thursday.

"We are undergraduate students. We are just trying to finish our degrees and yet we are forced to defend our freedom of speech rights on the University of British Columbia campus," Cheesman said outside the B.C. Supreme Court in Vancouver.

Cheesman and the SJC are seeking both general, aggravated and punitive damages, as well as an injunction for Hillel and the individual to retract the alleged defamatory stickers.

"The SJC and Cheesman do not love, admire or support Hamas," reads the lawsuit. "They advocate for social justice, peace and human rights."

Calls for UBC to investigate

Representatives from the National Council of Canadian Muslims (NCCM), an independent advocacy group not affiliated with UBC, joined the plaintiffs Thursday to call for the university to investigate the incident.

Shawn Ullah, the NCCM's advocacy and government relations officer in B.C., said Thursday the lawsuit is the result of inaction by UBC that he says is putting the safety of Muslim and other racialized students at risk.

"Without a thorough investigation, we can never truly be sure that what happened [or if] possible acts of fraud will be fully prevented by the university leadership in the future," said Ullah.

"We call on UBC Vancouver's leadership to conduct a full investigation and to publicly commit to making sure that the campus is a safe place for all to engage in critical discussions regarding international human rights issues."


SJC member Matthew Cheesman, right, and Shawn Ullah, a B.C. representative for the National Council of Canadian Muslims, stand outside the B.C. Supreme Court on Thursday. (CBC News)

A spokesperson for UBC declined to comment on the proceedings as it is not named in the lawsuit.

"Both the AMS and Hillel B.C. are separate legal entities from UBC and are not under the management or control of UBC," wrote director of university affairs Matthew Ramsey in an emailed statement to CBC News.

Campus security reported the incident to RCMP and UBC is providing information "as requested," he said.

Karen Segal, the SJC and Cheesman's lawyer, says the lawsuit is about holding Hillel and UBC accountable for the alleged harms.

"Students must be free on campus to engage in political activism without being harassed and intimidated," said Segal.

CBC News asked Segal what evidence she has to suggest the individual named in the lawsuit was not acting independently from Hillel as the organization previously said in public statements in November and again on Thursday.

Segal declined to provide an immediate answer, saying that those details would be provided in court.
Farmers’ protests have erupted across Europe. Here’s why

Sophie Tanno and Chris Liakos, CNN
Sat, February 10, 2024 at 3:18 AM MST·8 min read

Farmers are holding protests across Europe, clogging the streets with their tractors, blocking ports and pelting the European Parliament with eggs over a long list of complaints from environmental regulation to excessive red tape.

“We are no longer making a living from our profession,” one aggrieved farmer in Paris told CNN.

While some of the most dramatic protests have been in France, similar action has been taking place in a host of countries including Italy, Spain, Romania, Poland, Greece, Germany, Portugal and the Netherlands.


Farming makes up just 1.4% of the European Union’s GDP, the latest figures show, but protests in Eastern Europe last year over cheap Ukrainian imports – which saw lengthy blockades at border crossings – show how farmers as a group are capable of causing major disruption.

Both national governments and the EU are now under pressure to quell the fresh demonstrations.

CNN takes a closer look at the factors involved.

What’s happening and where?

Earlier this month, the farmers’ protests struck at the heart of the European Union, when they rolled into Brussels on February 1 as leaders held a major summit on Ukraine. Once camped outside the parliament building, they lobbed eggs, blared their horns and sparked fires.

Belgian farmers targeted border crossings with the Netherlands in Zandvliet, Meer and Postel, causing delays.

In France, farmers blocked major highways leading to Paris as well as the cities of Lyon and Toulouse. Dozens of farmers set up tents and lit fires to keep themselves warm as they attempted to shut off routes into the French capital.

At least 91 people were detained in late January for obstructing traffic and causing damage near the Rungis market south of Paris, a key distribution food hub, CNN affiliate BFMTV reported. But other protesters were less hostile: Some farmers handed out freshly baked pain-au-chocolats to police outside Paris.

A farmer pulls waste to block a highway near Vesoul, eastern France. - Sebastien Bozon/AFP via Getty Images

Farmers with tractors protest at the Brandenburg Gate in Berlin, Germany. - Kay Nietfeld/dpa via AP

One farmer, Hugo Auge, told CNN that the current system “makes a mockery of both farmers and consumers.”

Also this month, tractors in Greece marched towards the second biggest city of Thessaloniki on Thursday, with the aim of blocking key routes inside the city.

Images from Portugal showed long lines of trucks parked near the Spanish border.

In January, cities in Germany were brought to a standstill by thousands of rallying farmers braving freezing temperatures, piling misery on Chancellor Olaf Scholz’s governing coalition.

Major road blockages stretched across cities from east to west including Hamburg, Cologne, Bremen, Nuremberg and Munich – with up to 2,000 tractors registered for each protest.

The protests echo those of last year, when farmers in Eastern European countries, including Poland, Romania and Bulgaria, demonstrated against the impact of cheap Ukrainian grain imports, which were undercutting domestic prices and hitting the sales of local producers.
What are the grievances?

While anger over economic, regulatory and green policies unites many of the protests, there are also grievances unique to each country.

Farmers across the bloc say that the costs of energy, fertilizer and transport have risen, particularly in light of Russia’s war in Ukraine. On top of this, governments have been trying to reduce rising food prices amid inflation.

Eurostat data shows that the prices farmers get for their agricultural products peaked in 2022 but has been declining since then – dropping nearly 9% on average between the third quarter of 2022 and the same period in 2023.

In France, a government plan to phase out a tax break for farmers on diesel fuel, as part of a wider energy transition policy, has also sparked anger.

Protesting farmers blockade the A10 highway near the Peage de Saint-Arnoult-en-Yvelines toll gates southwest of Paris. - Dimitar Dilkoff/AFP via Getty Images

Cheap foreign imports have fanned the flames of discontent, with farmers arguing that such products are unfair competition.

Emmanuel MathĂ©, a French farmer from the small village of Noisy-Rudignon in Seine et Marne, told CNN: “We’re subject to enormous constraints and there are products coming in from outside Europe, that compete with us without having to apply the same rules that we’re obliged to in order to produce.”

Farmers, particularly in Eastern Europe, continue to voice grievances over the cheap agricultural imports from Ukraine, including grain, sugar and meat. The EU has waived quotas and duties on Ukrainian imports in light of Russia’s invasion of Ukraine.

Climate change is aggravating the situation in different ways. Extreme weather events such as wildfires and droughts are increasingly affecting production.

Anger has also been directed at Brussels over the EU’s environmental targets. Renaud Foucart, a senior economics lecturer at Lancaster University in England, points to the European Green Deal as a major source of tension.

The deal aims to introduce measures including a tax on carbon, pesticide bans, nitrogen emissions curbs and restrictions on water and land usage.

Foucart says farmers are trying to postpone the regulations of the Green Deal for as long as possible. “So they want to further postpone any attempt to tax carbon, any attempt to reduce pesticides.”

He points out that each European country has its own specific concerns.

“In Germany, it was really focused on diesel, so starting to tax diesel for tractors. In the Netherlands, the specific problem was about the taxation of nitrogen, which affects the industrial production of pigs and chickens. Poland is a very interesting case because it has been at the forefront of military support for Ukraine, but at the same time the Polish farmers are very angry and blockading the border to make sure Ukrainian grain doesn’t arrive in Poland.”

What’s being done to calm the protests?

At the EU level, farmers won a compromise from Brussels on January 31, when a delay was announced to rules that would have required them to set aside land to encourage soil health and biodiversity.

The European Commission offered an exemption to EU farmers from a requirement to keep a minimum share of their land fallow while allowing them to keep associated support payments.

The Commission also said it would extend the suspension of import duties on Ukrainian exports for another year to June 2025.

At a governmental level, Berlin has partially walked back on its plans to cut diesel subsidies last month. Watering down its original blueprint, the government said a car tax exemption for farming vehicles would be retained and cuts in diesel tax breaks would be staggered over three years. Many farmers however are calling for a complete reversal.

Farmers gather with their tractors at the Agrotica agricultural fair in Thessaloniki, Greece. - Sakis Mitrolidis/AFP via Getty Images

Tractors take part in the Farmer's Protest on January 31 in Novara, Italy. - Stefano Guidi/Getty Images

Greece announced it would extend a special tax rebate on agricultural diesel by one year, in response to calls from farmers who had their crops and livestock lost in destructive flooding.

France this week announced a series of measures for farmers in light of the protests. Newly appointed French Prime Minister Gabriel Attal pledged to safeguard “food sovereignty” and said that France would increase checks on food imports “that don’t respect our rules at a European and French level,” in an effort to protect farmers from unfair competition.

Attal also announced the allocation of 150 million euros ($162 million) to livestock farmers “in tax and social support, starting this year and continuing on a permanent basis.”

There are signs that the French measures are working – some blockades have been lifted after two major unions called for an end to the roadblocks. But elsewhere the protests continue.

What happens next?

While governments have granted concessions, some farmers say they do not go far enough and are calling for continued action.

The protests have also fueled backlash against the EU ahead of European Parliament elections in June.

European Commission President Ursula von Der Leyen has championed the EU target of reaching net zero by 2050. However, she is facing pressure from her own center-right party to water down green legislation.


Dutch and Belgian farmers take part in a road blockade near the border crossing between Belgium and the Netherlands, in Arendonk. - Rob Engelaar/ANP/AFP via Getty Images

European far-right parties are hoping to make gains in the elections and may capitalize on the farmers’ grievances for their own political gain.

This has already been seen in Germany, when the far-right Alternative for Germany (AfD) involved itself in the protests and expressed solidarity with the farmers.

And there is precedent for protesting farmers to do more than just take to the streets.

In March last year, a Dutch populist party surfed a wave of rural anger to land a big election. The Farmer-Citizen Movement or BoerburgerBeweging (BBB) grew out of mass demonstrations against the government’s environmental policies. It is now the largest party in the Dutch senate.

Dover: Slow tractor demo as farmers protest over imports

Daniel Sexton & Tanya Gupta - BBC News, South East
Sat, February 10, 2024 

The protesting farmers in Dover said they did not want to cause disruption but they wanted to raise awareness


Tractors lined up on roads outside Dover on Friday as farmers protested against foreign imports of food.

Kent Police said they responded to an incident of "slow-moving vehicles" in Jubilee Way, one of the main roads heading to the port.

Officers had worked with Port of Dover Police, the force said.

A Government spokesperson said: "We firmly back our farmers. British farming is at the heart of British trade."

They said agriculture was at the forefront of any deals negotiated, with a priority on creating new export opportunities and protecting UK food standards.

One farmer took to social media to explain why he was taking part in the protest over food trade deals.

Jeffrey Gibson, from Yew Tree Farm in Wingham, Kent, said supermarkets were selling British produce at prices "cheaper than the cost of production".

Traffic built up around the port as farmers took to the roads

The protest follows similar demos in France in recent weeks which saw French farmers move tractors to blockade routes into Paris, arguing they had been hit by falling incomes, environmental regulations, rising red tape and competition from imports.

Across Europe, farmers have also ramped up protests in Poland, Hungary, Spain and Belgium.

Mr Gibson said about 30 tractors had gathered on roads around the port but were "dispersed" because police had blocked off many of the roads, adding: "They are not allowing us anywhere near the port."

He said protesters wanted to raise awareness of how unfairly farmers were being treated.

He said: "We produce crops to the highest standards in the world, but have to compete with imported foods containing illegal chemicals and the government does trade deals with those countries."

Farmers are using their vehicles to protest against foreign imports

He said Friday's protest was only planned at lunchtime and about 30 tractors were taking part.

But he added: "This is just the start of something a lot bigger unless the government start to take notice."

He said protests could escalate to the level of those seen in Paris and Brussels.

"We don't want to cause disruption," he said. "We want to get the message across."

One truck displayed the slogan No More Cheap Imports

A Department for Environment Food and Rural Affairs spokesperson added: "We've maintained the £2.4 billion annual farming budget which supports farmers to produce food profitably and sustainably, while protecting nature and helping to meet our net zero ambitions.

"We are also looking at ways to further improve fairness in the supply chain and support British farmers and growers"

Migrants Face Cold, Perilous Crossing From Canada to New York

Luis Ferré-Sadurní
Sun, February 11, 2024 

A crumbling farm shed where a migrant family slept overnight before being detained the next day by Border Patrol officers, in Champlain, N.Y., a town on the Canadian border, Jan. 24, 2024.
 (Anna Watts/The New York Times)


CHAMPLAIN, N.Y. — In a dilapidated farm shed in New York state’s rural North Country, the belongings of a migrant family who quietly took shelter one night were still visible months later: some clothing and children’s shoes, stiffened by the cold and a thin blanket of snow.

Thomas Brassard recalled his surprise when he saw the family — a husband, wife and two children — emerge from the shed as he started his truck in the early morning.

They asked him in broken English if he could give them a ride to the nearest city. He apologetically told them he couldn’t help and then placed a call to Border Patrol, which quickly detained them.

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It has become a familiar scene in Champlain, New York, nestled on the state’s border with Canada, so much so that the mayor keeps knit hats and gloves in the trunk of her car to hand out to the migrants she encounters.

“The weather is so severe you just can’t survive,” said Janet McFetridge, the village’s mayor. “Border Patrol is working extremely hard to save people’s lives because that’s what it’s come down to.”

As migrants continue to overwhelm the southern border in record numbers, a growing wave is trying an alternative route into the United States: across the less fortified, more expansive Canadian border.

Rather than deal with an arduous journey through the DariĂ©n Gap in Panama and a near-certain encounter with the Border Patrol, migrants from as far as Mexico, India and Venezuela who have the wherewithal have been flying to Canada — taking advantage of border crossings without imposing walls or fences.

Yet perilous conditions have led to repeated rescues of migrants who get stranded in dark woods or have to be treated for hypothermia. At least a dozen migrants — families, children, a pregnant mother — have died attempting to cross in the past two years, their frozen bodies recovered from rivers and forests.

Officials at the northern border recorded 191,603 encounters with people crossing into the United States in 2023, a 41% increase from 2022 — although still a small number in comparison with the more than 2 million people apprehended on the southern border last year.

And while the vast majority of those migrants presented themselves at official ports of entry to request asylum, a growing number were caught after crossing illegally into the United States, sometimes guided by smugglers.

More than 12,200 people were apprehended crossing illegally from Canada last year, a 241% jump from the 3,578 arrested the previous year. Most of them were Mexicans, who can fly to Canada without a visa and may prefer the northern border to avoid the cartels that exploit migrants in their country.

The phenomenon has transformed a 295-mile border area along northern New York, Vermont and New Hampshire into a hot spot of migration: About 70% of the illegal crossings in 2023 happened on this stretch, known as the Swanton Sector.

Robert Garcia, the chief patrol agent in charge of the Swanton Sector, said in a social media post Friday that the 3,100 people apprehended in the sector since October — more than the past four fiscal years combined — hailed from 55 countries.

Clinton County, New York, a rural swath of farms and small towns just south of Quebec province, has emerged as one of the main passageways for migrants heading south, unsettling some residents and local officials.

“It’s a hard thing to do for freedom,” Brassard said in a recent interview on his fiancee’s farm, less than 1 mile south of the border. He expressed some slight remorse about turning the family in. “It was actually sad,” he said, “because the kids said thank you and stuff.”

People like Brassard have increasingly spotted migrants marching across their fields and backyards, or lugging suitcases down dark back roads. After crossing from Canada, some migrants shelter from the frigid cold inside residents’ barns and garages, sometimes unnoticed except for the motion-activated deer hunting cams that capture them in the dead of night.

Dale Tetreault, 57, a third-generation dairy farmer, said that three migrants from Guatemala recently took refuge in one of his milk houses. One of his workers, who is Latin American and spoke with them in Spanish, told him the migrants had just crossed from Canada and were looking for work.

Tetreault called Border Patrol, which showed up within minutes to pick them up.

“I understand where they’re coming from and how horrible it has to be to make that kind of venture to get here, to try to find a place where you can find a good life,” Tetreault said as he stood by one of his rows of 1,200 cows last month. “But on the other side, it’s like, I’m not going to accidentally house the wrong people either, you know what I mean? It’s damned if you do, damned if you don’t.”

About a dozen residents who live just south of the border expressed mixed opinions about the influx of migrants, with most expressing sympathy in interviews with The New York Times. But many said the encounters with strangers on their property had made them uneasy. Others said they felt indifferent, largely unbothered as long as the migrants kept to themselves.

Residents in Clinton County, which leans conservative but has voted Democratic in the last presidential elections, had become accustomed to a northward migration, with refugees passing through on their way to claim asylum in Canada.

That pattern exploded in 2017 — when thousands of asylum-seekers began crossing the county on their way to Canada because they feared deportation under the Donald Trump presidency — and continues to this day. Quebec’s leader warned in January that the crush of asylum-seekers was leading the province to a “breaking point,” and Canadian officials are considering implementing a visa requirement for Mexican travelers.

But the increasing number of migrants moving south into the United States has created a two-way flow that has overwhelmed and frustrated local officials in New York’s North Country. They argue it is straining local law enforcement resources, forcing Border Patrol agents to respond to too many calls and putting migrants at risk.

“The northern border has been pretty much ignored,” said Assembly member Billy Jones, a Democrat who represents Clinton County, saying that the federal government was “failing on immigration, and they’re failing the people that live along the border.”

U.S. Customs and Border Protection officials said in a statement that the country had forged a close working relationship with Canada “to facilitate lawful crossings through ports of entry and to counter irregular migration, including in the Swanton Sector.”

“CBP continuously adjusts to shifting trends while continuing to call on Congress to provide the resources and personnel necessary to sustain and improve our border security along all our borders,” an agency spokesperson said in a statement.

The illegal crossings are sometimes facilitated by new human smuggling operations, often based outside New York, which advertise their services on social media and charge migrants thousands of dollars to get them into the country from Canada, often leaving them indebted to the smugglers.

Federal prosecutors in Syracuse, New York, have filed a series of cases aimed at taking down smuggling enterprises, detailing in court documents how smugglers — both American and foreign — help guide migrants through woods and coordinate drivers with out-of-state plates to pick them up once they get through.

The arrests come as numerous migrants have died attempting to cross treacherous conditions, sometimes lured by smugglers.

In January 2022, an Indian family of four— including an 11-year-old girl and a 3-year-old boy — was found frozen to death just feet from the border in Manitoba, Canada. A year later, the bodies of eight people — an Indian family and a Romanian family — were recovered from the St. Lawrence River in Quebec. All were trying to cross into the United States.

In January 2023, Fritznel Richard, 44, a Haitian man traveling to the United States, was found frozen to death in the woods of a border municipality in Quebec. The next month, Jose Leos Cervantes, 45, from Mexico, collapsed and died shortly after walking into Vermont.

And on Dec. 14, authorities found the body of a 33-year-old woman from Mexico who was five months pregnant in the Great Chazy River in Champlain. The woman, Ana Vasquez Flores, had traveled from Quebec and was trying to reunite with her husband in the United States.

Shortly after, U.S. prosecutors accused a Colombian man living in Canada of selling his smuggling services on TikTok to Vasquez Flores and her husband, and charging them $2,500 to guide her across the border via text messages. The man was arrested and extradited to the United States.

Portions of the U.S.-Canadian border — which at 5,525 miles is the longest international border in the world — are separated by natural barriers, such as the Great Lakes. But much of the border, especially in northeastern New York, is flat and barren, dotted with just woods or open fields where simple stone markers delineate the boundary.

Many migrants crossing illegally into the United States, officials said, are cutting through traversable woods that may still be perilous. Temperatures regularly drop below zero on cold winter nights, making it dangerously cold for those without adequate clothing. And the woods can be pocked with streams, ponds and swamps that freeze quickly.

Border Patrol officials said they have conducted 15 rescue missions in which 37 individuals were rescued along the northern border since October 2022.

David Favro, the Clinton County sheriff, whose department has been involved in some of the missions, said migrants regularly get disoriented in the forest or fall into freezing waters and suffer hypothermia, sometimes losing toes.

“They get lost in the woods,” Favro said in an interview in his office. “They lose sense of what direction they’re actually going in. They actually walk in circles for hours at a time.

Favro, a Democrat who supports tightening the nation’s immigration laws, said that Border Patrol needed “more boots on the ground.” The northern border has about 2,200 Border Patrol agents, according to federal officials.

Migrants who cross successfully into the United States are routinely apprehended by Border Patrol agents, who find them using sensors, thermal camera systems and even drones, or by responding to calls from residents.

“We were going to turn ourselves in, but they spotted us first,” said Liam Parra, 22, a Venezuelan migrant who arrived from Canada two weeks ago with a friend, Albert Colina, 24.

Both men had crossed from New York into Canada nearly a year ago seeking work. They found seasonal jobs in construction and packaging fruits in Niagara Falls, Canada, but decided to return to the United States this year, with hopes of reaching Orlando, Florida, after that work dried up.

“Canada is beautiful and all,” Colina said in Spanish. “But when the snow arrives, the work goes away.”

Crossing back into the United States, in their case, was surprisingly simple: They traveled to Montreal, took a one-hour Uber ride to a wooded area of the border and walked over in a matter of minutes, they said.

Like many migrants, Parra and Colina were briefly detained by U.S. immigration officials. They underwent a criminal background check and were then let go on parole — a status that allows migrants without visas to live and work in the United States temporarily as they await their court dates.

Once they were released, a taxi driver charged them $120 for a 20-minute ride from the border to Plattsburgh, New York, the largest city in Clinton County. The inflated taxi fare left them without enough money to afford the $90 tickets for a bus to New York City, stranding them in Plattsburgh.

For over a week, they wandered the city, waiting for money transfers from friends or trying unsuccessfully to persuade Greyhound bus drivers to give them a free ride. The two men, along with other migrants from Colombia and Haiti, slept at the local airport — a two-hour walk from downtown — or at roadside motels where county officials are required to put up people without shelter when temperatures drop below 32 degrees.

For the majority of migrants, Plattsburgh is a steppingstone in their journey north to Canada or south to larger cities, including New York City, a five-hour bus ride away, as well as final destinations as far as Arkansas and Seattle.

But many migrants seen on a visit to Plattsburgh last month were seemingly stuck in the city, passing time at a gas station and bus stop that serves as a de facto meeting point for migrants. Most had hoped to cross into Canada but were turned away by Canadian immigration officials, who have become strict about the documentation migrants need to claim asylum.

One migrant in Plattsburgh, Javier Semeco, 34, from Colombia, hugged his 8-year-old boy as he haggled with a taxi driver who was trying to charge him $70 for a short ride to the Canadian border. Using a translation app on the driver’s phone, they settled on $25, the only cash Semeco said he had.

Canadian officials turned Semeco away at the border hours later. He was forced to walk for hours with his young son along a snowy highway back to Plattsburgh.

After traveling for months from Venezuela and across the Mexican border to reunite with his sister in Canada, Dennys Ortega, 58, was also turned away at northern border.

Ortega had sought to claim asylum by proving he had family members in Canada; his sister, Damarys, says she has lived there for 40 years and is a Canadian citizen. But immigration officials said they found minor inconsistencies in his story and rejected his claim, according to immigration documents he was given.

Without much money or a place to live and possessing few English skills, Ortega was left to wonder what had gone wrong and what he would do next.

“They denied him his right,” said his sister, who drove to Plattsburgh from Quebec to meet him at a diner two days later. “They just left him out in the cold.”

c.2024 The New York Times Company

Sunday, February 11, 2024

A weed killer popular among Arizona cotton growers could be off limits after court ruling

Clara Migoya, Arizona Republic
Sat, February 10, 2024

A popular weed killer used on genetically modified cotton and soybeans could be off limits for 2024, a move that could raise already high costs for growers in Arizona.

A federal court in Arizona ruled Tuesday that the Environmental Protection Agency violated notice-and-comment rules when it reauthorized dicamba products in 2020, and, for the second time, revoked the registration of the herbicide.

The ruling by the U.S. District Court in Tucson could make the use of the product illegal. EPA registration is mandatory for all pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act.

The ruling is based on a failed procedure, but a 2020 ruling said EPA violated a federal statute regulating pesticides in six ways.


Pima cotton: Pima cotton, known for its elegance and durability, was formulated on experimental farms near Sacaton, but long before it became the go-to fabric for shirts and sheets, it played a key role in World War I.

Many products contain dicamba. Those affected by the ruling are XtendiMax by Bayer, Engenia by BASF, and Tavium by Syngenta, which are used on cotton and soybean crops and are effective in controlling weeds already resistant to glyphosate, a $2 billion problem for U.S. agriculture. At least 30 million acres of farmland across the U.S. are sprayed with the products every year, according to EPA records.

"This is something that could be very devastating to the cotton industry," said Jadee Rohner, executive director of the Arizona Cotton Growers Association.

"Cotton growers already have very high production costs and if they are forced to buy new seeds and chemicals, it's going to increase their already high costs."

Chemical companies sell dicamba and dicamba-resistant cotton and soybean seeds so growers can spray crops.

In Arizona, between 2018 and 2021, about 74% of all cotton crop acres were planted with dicamba-resistant seeds, Rohner said. While not all farmers spray the herbicide on their crops, they often stock up on both products ahead of the planting season.

Without the products, farmers will be left with less effective and more costly options.

The timing of the ruling is concerning because it comes just ahead of the planting season, and "leaves producers in a very weak position for 2024," Rohner said. Growers in Yuma County often start planting as early as late February.

The EPA has still not announced whether it will allow the use of existing stock, products that are already on retail store shelves and farmers' warehouses.

Jayson Cline works on his cotton harvester in a field farmed by Paul Ollerton, Jan. 23, 2022, east of Casa Grande.

Dicamba's collateral damage

Dicamba was first registered in the 1960s but it didn't become popular until a couple of years ago.

It's part of a group of herbicides that mimic plant hormones, and it specifically targets broad-leaf plants. It doesn't affect grasses, so it can be used in turf and forage crops to eliminate other weeds.

Farmers growing cotton and soybean, both broad-leaf crops, couldn't use the product directly at first. They applied it to the ground before the planting season and its use was minimal. The herbicide tends to drift and become volatile, so there was big risk they'd damage nearby crops.

But in 2015, Monsanto, which is now part of Bayer, developed genetically engineered crop varieties that could resist dicamba and decreased its volatility. Dicamba use skyrocketed. The next year, EPA approved over-the-top use of the weed killer.

The approval was controversial and followed immediately by lawsuits, some by environmental organizations and thousands more by farmers making crop damage complaints.

Dicamba has been extremely helpful for many cotton, corn and soybean growers to keep weeds at bay and increase yields. But its use has also caused harm to other farmers, beekeepers and native vegetation, particularly in the east and midwest.

Jayson Cline harvests cotton in a field farmed by Paul Ollerton, Jan. 23, 2022, east of Casa Grande.

In 2021, there were 3,400 drift incidents and 1 million acres damaged across the country, according to the EPA.

A lot of incidents are related to misuse and not following the herbicide label instructions when spraying.

But the herbicide can move to nearby crops, even when used correctly. Volatility, even if reduced in new products, means droplets can go from liquid to vapor and travel on the wind, even after spraying.

The product can evaporate under many circumstances that are not in the hands of growers, such as changes in temperature, atmospheric pressure, humidity and wind.
What about drift in Arizona?

Most of the drift damage has occurred in soybean crops, which are prominent in the east. This is because soybeans are "extremely sensitive to dicamba," said Ken Narramore, president of the Arizona Crop Protection Association.

Narramore and Rohner, of the Cotton Growers Association, said they know of no drift incidents in Arizona. There are also no soybean plantations in the state.


Paco Ollerton uses genetically modified cotton on his farm in Casa Grande, which helps combat cotton-eating pests and has helped reduce his use of pesticides.

"The ruling, which happened to be in Arizona, affected the entire country," said Narramore. "But as far as any (drift) impact on Arizona crops, dicamba is not an issue."

Dicamba is also applied other crops, and even by the National Park Service to control invasive plants, but its usage remains low or moderate, according to the Arizona Pest Management Center.

Labels for the three products that were revoked by courts include numerous restrictions because of how easily they can turn to vapor and drift. Anyone who applies the product has to be licensed.

"We have PCAs (pest control advisers) that are very diligent in following those labels," Rohner said. "Being a good neighbor is an extremely important trait for producers."

Arizona growers use dicamba products to control herbicide-resistant weeds on about 75,000 acres of cotton. Some growers use ground application of other herbicides and glyphosate, in cases where the weeds haven't become herbicide tolerant.

Not having dicamba could potentially lead to more glyphosate use, said Narramore, or push growers to consider hiring weeding crews, "and that job in that time of year is not the greatest from a worker-safety standpoint."
Plaintiffs call it a victory

EPA registered over-the-top use of dicamba for the first time in 2016, and renewed it in 2018 and 2020. The last re-approval was meant to last until 2025.

All approvals were followed by lawsuits by the National Family Farm Coalition, Pesticide Action Network, Center for Food Safety and the Center for Biological Diversity, which called the latest ruling "a sweeping victory for family farmers and dozens of endangered plants and animals."

There are many formulations of dicamba being used beyond cotton and soybean crops, but the plaintiffs targeted the three over-the-top products because of the damage they've been associated with.

"Once these over-the-top products were registered in 2017, there was an explosion in reports of drift. If you just look at the correlation it's quite clear that these are the products driving the widespread damage," Meredith Stevenson, an attorney with the Center for Food Safety, told The Republic.

The court agreed with this interpretation.

In 2020, the Ninth Circuit Court of Appeals concluded that EPA understated or "entirely failed" to acknowledge risks from dicamba use. The agency also approved the products assuming label instructions would be followed, but evidence showed the restrictions were “difficult if not impossible” to follow, courts said.

Courts revoked registration. But months later, the EPA added new restrictions to the products and approved its use for five more years. Plaintiffs sued again and won.

The National Cotton Council has urged the EPA to appeal the ruling.

Clara Migoya covers agriculture and water issues for The Arizona Republic and azcentral.