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Around the world, pain is felt at the pump

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According to AP, at a gas station near the Cologne, Germany, airport, Bernd Mueller watches the digits quickly climb on the pump: 22 euros ($23), 23 euros, 24 euros. The numbers showing how much gasoline he’s getting rise, too. But much more slowly. Painfully slowly.

“I’m getting rid of my car this October, November,” said Mueller, 80. “I’m retired, and then there’s gas and all that. At some point, you’ve got to scale back.”

Gasoline and diesel prices are a complex equation of the cost of crude oil, taxes, the purchasing power and wealth of individual countries, government subsidies where they exist, and the cut taken by middlemen such as refineries. Oil is priced in dollars, so if a country is an energy importer, the exchange rate plays a role — the recently weaker euro has helped push up gasoline prices in Europe.

And there’s often geopolitical factors, such as the war in Ukraine. Buyers shunning Russian barrels and Western plans to ban the country’s oil have jolted energy markets already facing tight supplies from the rapid pandemic rebound.

Across the globe, drivers like Mueller are rethinking their habits and personal finances amid skyrocketing prices for gasoline and diesel, fueled by Russia’s war in Ukraine and the global rebound from the COVID-19 pandemic. Energy prices are a key driver of inflation that is rising worldwide and making the cost of living more expensive.

A motorcycle taxi driver in Vietnam turns off his ride-hailing app rather than burn precious fuel during rush-hour backups. A French family scales back ambitions for an August vacation. A graphic designer in California factors the gas price into the bill for a night out. A mom in Rome, figuring the cost of driving her son to camp, mentally crosses off a pizza night.

For the untold millions who don’t have access to adequate public transportation or otherwise can’t forgo their car, the solution is to grit their teeth and pay while cutting costs elsewhere.

Nguyen Trong Tuyen, a motorcycle taxi driver working for the Grab online ride-hailing service in Hanoi, Vietnam, said he’s been simply switching off the app during rush hour.

“If I get stuck in a traffic jam, the ride fee won’t cover the gasoline cost for the trip,” he said.

Many drivers have been halting their services like Tuyen, making it difficult for customers to book rides.

In Manila, Ronald Sibeyee used to burn 900 pesos ($16.83) worth of diesel a day to run his jeepney, a colorfully decorated vehicle popular for public transportation in the Philippines that evolved from U.S. military jeeps left behind after World War II. Now, it’s as much as 2,200 pesos ($41.40).

“That should have been our income already. Now there’s nothing, or whatever is left,” he said. His income has fallen about 40% due to the fuel price hikes.

SpaceX fires at least 5 employees after internal letter criticizes Elon Musk

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SpaceX has fired at least five employees involved in circulating a letter around the company that was critical of CEO Elon Musk, two people familiar with the company told CNBC.

The open letter, first reported by The Verge, was circulated and signed by an unknown number of SpaceX employees earlier this week. The letter was addressed to company executives, according to media reports, and described the billionaire’s public behavior as “a frequent source of distraction and embarrassment” for SpaceX employees.

The internal SpaceX letter also referenced recent sexual misconduct allegations against Musk, reported by Business Insider last month. The report said Musk sexually harassed a SpaceX flight attendant during a private flight, and that the company paid the employee $250,000 for her silence.

SpaceX President and COO Gwynne Shotwell defended Musk after the misconduct allegations, writing in an email to employees that she believes “the allegations to be false.”

The New York Times first reported the SpaceX firings. SpaceX did not immediately respond to CNBC’s request for comment.

Musk is the controlling shareholder of the privately held company, with his trust owning about 78% of SpaceX’s voting shares as of last year. The CEO has created an often eccentric persona in public spheres, particularly on Twitter where he offers commentary and updates on SpaceX and his electric vehicle company, Tesla.

Musk has often said he uses Twitter to express himself, comparing his use of the service to how “some people use their hair,” and is seeking to acquire the social media company.

Musk said during a Twitter all-hands meeting on Thursday that free speech is critical to users of the platform – even if a company is under his private ownership, like SpaceX.

Alabama church shooting kills 2, wounds 1

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A gunman opened fire at a potluck dinner inside a suburban Alabama church, killing two members and wounding a third before being taken into custody, authorities said.

According to AP, emergency dispatchers got a call about 6:20 p.m. Thursday reporting an active shooter at Saint Stephen’s Episcopal Church in the Birmingham suburb of Vestavia Hills, said Police Capt. Shane Ware.

A suspect was detained and the wounded victim was being treated at a hospital, Ware said at a news conference late Thursday. Police declined to identify the suspect or the victims, or provide further details on the attack. Another briefing was planned Friday.

Alabama Gov. Kay Ivey issued a statement late Thursday lamenting what she called the shocking and tragic loss of life. Although she said she was glad to hear the suspect was in custody, she wrote: “This should never happen — in a church, in a store, in the city or anywhere.”

Vestavia Hills is a residential community just southeast of Birmingham, one of Alabama’s two most populous cities.

The event was a “Boomers Potluck” gathering inside the church, according to messages posted on the church’s Facebook page by pastor the Rev. John Burruss. He said he was in Greece on a pilgrimage with a group of members and trying to get back to Alabama.

“More than anything, I ask your prayers for our community, especially those who are injured and the families of the deceased. These are the pillars of our community, and I cannot begin to fathom how painful this is for our entire church, and the larger community,” he wrote.

The Rev. Rebecca Bridges, the church’s associate rector, led an online prayer service on the church’s Facebook page Friday morning. She prayed not only for the victims and church members who witnessed the shooting, but also “for the person who perpetrated the shooting.”

“We pray that you will work in that person’s heart,” Bridges said. “And we pray that you will help us to forgive.”

Bridges, who is currently in London, alluded to other recent mass shootings as she prayed that elected officials in Washington and Alabama “will see what has happened at St. Stephens and Uvalde and Buffalo and in so many other places and their hearts will be changed, minds will be opened.”

“And that our culture will change and that our laws will change in ways that will protect all of us,” she added.

There have been several high-profile shootings in May and June, starting with a racist attack on May 14 that killed 10 Black people at a supermarket in Buffalo, New York. The following week, a gunman massacred 19 children and two adults at an elementary school in Uvalde, Texas.

Thursday’s shooting happened just over a month after one person was killed and five injured when a man opened fire on Taiwanese parishioners at a church in Southern California. It comes nearly seven years to the day after an avowed white supremacist killed nine people during Bible study at Emanuel AME Church in Charleston, South Carolina.

Agents with the FBI, U.S. Marshals Service and the Bureau of Alcohol, Firearms, Tobacco and Explosives joined investigators at the scene, which remained cordoned off Friday with yellow police tape and police vehicles with flashing lights blocking the route to the church.

People huddled and prayed nearby in the hours after the shooting.

“It is shocking. Saint Stephen’s is a community built on love and prayers and grace and they are going to come together,” the Rev. Kelley Hudlow, an Episcopal priest in the Diocese of Alabama, told broadcast outlet WBRC. “People of all faiths are coming together to pray to hope for healing.”

She said supportive messages were coming in from all over the U.S. and the world. “We need everybody out there. Pray, think, meditate and send love to this community because we are going to need all of it,” she said.

On Saturday thousands of people rallied in the U.S. and at the National Mall in Washington, D.C., to renew calls for stricter gun control measures. Survivors of mass shootings and other incidents of gun violence lobbied legislators and testified on Capitol Hill earlier this month.

FDA authorizes first COVID-19 shots for infants, preschoolers

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According to AP, U.S. regulators on Friday authorized the first COVID-19 shots for infants and preschoolers, paving the way for vaccinations to begin next week.

The Food and Drug Administration’s action follows its advisory panel’s unanimous recommendation for the shots from Moderna and Pfizer. That means U.S. kids under 5 — roughly 18 million youngsters — are eligible for the shots, about 1 1/2 years after the vaccines first became available in the U.S. for adults, who have been hit the hardest during the pandemic.

There’s one step left: The Centers for Disease Control and Prevention recommends how to use vaccines. Its independent advisers began debating the two-dose Moderna and the three-dose Pfizer vaccines on Friday and will make its recommendation Saturday. A final signoff would come from CDC Director Dr. Rochelle Walensky.

At a Senate hearing Thursday, Walensky said her staff was working over the Juneteenth federal holiday weekend “because we understand the urgency of this for American parents.”

She said pediatric deaths from COVID-19 have been higher than what is generally seen from the flu each year.

“So I actually think we need to protect young children, as well as protect everyone with the vaccine and especially protect elders,” she said.

The FDA also authorized Moderna’s vaccine for school-aged children and teens. Pfizer’s shots had been the only option for those ages.

For weeks, the Biden administration has been preparing to roll out the vaccines for little kids, with states, tribes, community health centers and pharmacies preordering millions of doses. FDA’s emergency use authorization allows manufacturers to begin shipping vaccine across the country. Vaccinations could begin early next week.

While young children generally don’t get as sick from COVID-19 as older kids and adults, their hospitalizations surged during the omicron wave and FDA’s advisers determined that benefits from vaccination outweighed the minimal risks. Studies from Moderna and Pfizer showed side effects, including fever and fatigue, were mostly minor.

“As we have seen with older age groups, we expect that the vaccines for younger children will provide protection from the most severe outcomes of COVID-19, such as hospitalization and death,” FDA Commissioner Robert Califf said in a statement.

In testing, the littlest children developed high levels of virus-fighting antibodies, comparable to what is seen in young adults, the FDA said. Moderna’s vaccine was about 40% to 50% effective at preventing infections but there were too few cases during Pfizer’s study to reliably determine effectiveness, the agency said.

’’Both of these vaccines have been authorized with science and safety at the forefront of our minds,” said Dr. Peter Marks, FDA’s vaccine chief.

The two brands use the same technology but there are differences.

Pfizer’s vaccine for kids younger than 5 is one-tenth of the adult dose. Three shots are needed: the first two given three weeks apart and the last at least two months later.

Moderna’s is two shots, each a quarter of its adult dose, given about four weeks apart for kids under 6. The FDA also authorized a third dose, at least a month after the second shot, for children who have immune conditions that make them more vulnerable to serious illness.

Both vaccines are for children as young as 6 months. Moderna next plans to study its shots for babies as young as 3 months. Pfizer has not finalized plans for shots in younger infants. A dozen countries, including China, already vaccinate kids under 5, with other brands.

In the U.S., it remains uncertain how many parents want their youngest vaccinated. By some estimates, three-quarters of all children have already been infected. And only about 30% of children aged 5 to 11 have been vaccinated since Pfizer’s shots opened to them last November.

Dr. Beth Ebel, professor of pediatrics at University of Washington in Seattle, said the tot-sized vaccines would be especially welcomed by U.S. parents with children in daycare where outbreaks can sideline parents from jobs, adding to financial strain.

“A lot of people are going to be happy and a lot of grandparents are going to be happy, too, because we’ve missed those babies who grew up when you weren’t able to see them,” Ebel said.

Georgia takes control of new megasite in Peach County to target electric vehicle and other sectors

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According to AJC, the state of Georgia and a Peach County agency announced Thursday the purchase of more than 1,100 acres southwest of Macon for a manufacturing megasite, property that leaders said could suit the electric vehicle industry.

The land, located near the city of Fort Valley along Ga. 96 west of I-75, is about a three-hour or so drive from the Savannah and Brunswick ports, about a half-hour from Macon and two hours from Atlanta.

The Peach County site has been in the works for some time and quietly marketed to industry. On Wednesday, the state and Development Authority of Peach County acquired four parcels for about $18.6 million, authority Executive Director B.J. Walker told The Atlanta Journal-Constitution.

The Middle Georgia Megasite gives the state a large new shovel-ready tract of land with direct rail access to pitch to heavy industry. Georgia has been lacking in ready-build property of more than 1,000 acres that it controls, after landing two of its biggest economic development projects in state history.

In December, EV maker Rivian announced a $5 billion factory along I-20 about an hour east of Atlanta. Last month, Hyundai Motor Group confirmed plans to build a $5.54 billion EV factory in Bryan County near Savannah.

“Even after announcing the two largest projects in the State’s history back-to-back, we remain focused on attracting key industries and investment by providing the project sites companies need,” Gov. Brian Kemp said in a news release. “It is very encouraging to see a new, fully prepared megasite that will create more high-quality jobs for hardworking Georgians in rural parts of the state.”

South Korean president’s unnecessary mixing of languages annoys citizens

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Yoon has been heard using English terms on several occasions, even when the events did not call for a mixing of languages.

In a meeting on June 10 with the leaders of the ruling People Power Party, Yoon brought up a name change for Yongsan Park, a newly opened former Korea base for the U.S. Forces.

While suggesting a new name, the president said, “When you say ‘National Memorial Park’ in English, it sounds cool, but when you say ‘Gukrip Chumo Gongwon,’” referring to the Korean equivalent of the name, “it doesn’t, so I don’t know what to call it in our country’s language.”

Despite the controversy, Yoon’s favoring of English is not completely uncalled for in a country that requires most of its citizens to achieve a high level of English fluency in their schooling.

Korea’s College Scholastic Aptitude Test (CSAT), also known as Suneung, has a notoriously difficult English section that has proven to be difficult for even native English speakers.

In another incident on June 8, Yoon spoke about how “In advanced countries like the U.S., former ‘general attorneys’ are widely positioned in politics and government,” saying “general attorneys” in English.

Yoon’s seemingly unnecessary inclusion of English in his official statements have sparked debate in South Korea as to whether the new president is showing bias toward the U.S. and the West more broadly.

Sejong Institute of Korean English Language and Culture Director Kim Seul-ong stated that Yoon had a responsibility as the country’s leader to speak in a way that is most accessible to the public.

“The president represents the country and the public organizations, so he is obligated to use words that are easy to communicate and keep to the Framework Act on Korean Language,” the director explained. “His overuse of foreign languages like English may disrupt the public’s use of language.”

In another speech, Yoon pledged to make Busan Port an international, massive “megaport,” with the last word in English again, despite “megaport” not being a familiar term to most Koreans.

Main opposition Democratic Party of Korea Representative Cho Eung-chun stated on an MBC radio show that Yoon appears to have “some sort of complex about English,” adding that the president had mentioned Justice Minister Han Dong-hoon’s fluency in English as one of the first reasons for picking him.

China launches a new generation aircraft carrier in naval milestone

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According to AP, Beijing launched a new-generation aircraft carrier Friday, the first such ship to be both designed and built in China, in a milestone as it seeks to extend the range and power of its navy.

The Type 003 carrier christened Fujian left its drydock at a shipyard outside Shanghai in the morning and tied up at a nearby pier, state media reports said.

State broadcaster CCTV showed assembled navy personnel standing beneath the massive ship as water jets sprayed over its deck, multi-colored streamers flew and colorful smoke was released.

It is not known how close China is in the development of its KJ-600 AWACS aircraft, which it began testing in 2020, to have it ready for carrier operations, and there is “little evidence” it has begun work on carrier onboard delivery transport aircraft, he said.

Now that it is launched, the carrier will have to be fitted out, which could take two to six months. Then there will be harbor acceptance trials and sea trials, which will likely take another six months before engineers begin launching test loads using the catapult system.

“The first aircraft will only be launched from this carrier perhaps in late-2023 to 2024, and full operational capability will likely be declared closer to 2025,” he said.

Equipped with the latest weaponry and aircraft-launch technology, the Type 003 ship’s capabilities are thought to rival those of Western carriers, as Beijing seeks to turn its navy, already the world’s largest, into a multi-carrier force.

Satellite imagery captured by Planet Labs PBC on Thursday and analyzed by The Associated Press showed the carrier in what appeared to be a fully flooded drydock at the Jiangnan Shipyard, near Shanghai, ready for launch. It was draped with red bunting, presumably in preparation for the launch ceremony.

“This is an important milestone for China’s military-industrial complex,” said Ridzwan Rahmat, a Singapore-based analyst with the defense intelligence company Janes.

“This shows that Chinese engineers are now able to indigenously manufacture the full suite of surface combatants associated with modern naval warfare, including corvettes, frigates, destroyers, amphibious assault ships, and now an aircraft carrier,” he said. “This ability to construct a very complex warship from the ground up will inevitably result in various spin-offs and benefits for the Chinese shipbuilding industry.”

China’s first carrier was a repurposed Soviet ship, and its second was built in China but based upon a Soviet design. Both were built to employ a so-called “ski-jump” launch method for aircraft, with a ramp at the end of the short runway to help planes take off.

The Type 003 employs a catapult launch, which experts had said appears to be an electromagnetic-type system like one originally developed by the U.S. Navy. China’s official Xinhua News Agency confirmed the Fujian employed the electromagnetic system in a report on Friday’s launch.

Such a system puts less stress on the aircraft than older steam-type catapult launch systems, and the use of a catapult means that the ship will be able to launch a broader variety of aircraft, which is necessary for China to be able to project naval power at a greater range, Rahmat said.

“These catapults allow aircraft deployed to carry a more extensive load of weapons in addition to external fuel tanks,” Rahmat said.

“Once it is fully operational, the PLAN’s third carrier would also be able to deploy a more complete suite of aircraft associated with carrier strike group operations including carrier onboard delivery transport and airborne early warning and control airframes, such as the KJ-600.”

China’s People’s Liberation Army Navy, or PLAN, has been modernizing for more than a decade to become more of a “blue water” force — one capable of operating globally rather than being restricted to remaining closer to the Chinese mainland.

At the same time, the U.S. has been increasing its focus on the region, including the South China Sea. The vast maritime region has been tense because six governments claim all or part of the strategically vital waterway, through which an estimated $5 trillion in global trade travels each year and which holds rich but fast-declining fishing stocks and significant undersea oil and gas deposits.

China has been far and away the most aggressive in asserting its claim to virtually the entire waterway, its island features and resources.

The U.S. Navy has sailed warships past artificial islands China built in the sea that are equipped with airstrips and other military facilities. China insists its territory extends to those islands, while the U.S. Navy says it conducts the missions there to ensure the free flow of international trade.

In its report to the U.S. Congress last year on China’s military capabilities, the Department of Defense said the carrier development program was critical to the Chinese navy’s continued development into a global force, “gradually extending its operational reach beyond East Asia into a sustained ability to operate at increasingly longer ranges.”

China’s “aircraft carriers and planned follow-on carriers, once operational, will extend air defense coverage beyond the range of coastal and shipboard missile systems and will enable task group operations at increasingly longer ranges,” the Defense Department said.

In recent years, China has expanded its presence into the Indian Ocean, the Western Pacific and beyond, setting up its first overseas base over the last decade in the African Horn nation of Djibouti, where the U.S., Japan and others also maintain a military presence. It also recently signed a security agreement with the Solomon Islands that many fear could give it an outpost in the South Pacific, and is working with Cambodia on expanding a port facility there that could give it a presence in the Gulf of Thailand.

Xinhua reported the Fujian, which carries the hull number 18, had a fully loaded displacement of 80,000 tons. In a March report prepared by the U.S. Congressional Research Service, however, analysts said that satellite images suggest the Type 003′s displacement was about 100,000 tons, similar to those of U.S. Navy carriers.

The PLAN currently has some 355 ships, including submarines, and the U.S. estimates the force will grow to 420 ships by 2025 and 460 ships by 2030. Despite having the world’s largest navy numerically, however, the PLAN for now still has nowhere near the capabilities of the U.S. Navy and remains far behind in carriers.

The U.S. Navy is the world’s leader in aircraft carriers, with 11 nuclear-powered vessels. It also has nine amphibious assault ships that can carry helicopters and vertical-takeoff fighter jets.

American allies like Britain and France also have their own carriers, and Japan has four “helicopter destroyers,” which are technically not aircraft carriers, but carry aircraft. Two are being converted to support short take-off and vertical-landing fighters.

China’s new carrier was named after the Fujian province on the country’s southeastern coast, following a tradition after naming its first two carriers after the provinces of Liaoning and Shandong.

Its shipyard-launch ceremony was presided over by Xu Qiliang, member of the ruling Communist Party’s Politburo and vice chairman of the Central Military Commission led by president and party leader Xi Jinping.

After Xu cut the ribbon for the launch, a bottle of champagne was broken across the Fujian’s bow, Xinhua reported. The doors of the drydock then opened and the ship moved out into the water and moored at its pier.

China’s development of the Type 003 carrier is part of a broader modernization of China’s military. As with its space program, China has proceeded extremely cautiously in the development of aircraft carriers, seeking to apply only technologies that have been tested and perfected.

At the moment, China is not believed to have the aircraft developed to fully realize the potential of the new carrier, Rahmat said.

Japan’s top court says government not responsible for Fukushima nuclear damage

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Japan’s government is not liable for damages demanded by people whose lives were devastated by the Fukushima nuclear disaster, the country’s top court said on Friday, the first such ruling in a series of similar cases, according to AP.

The ruling’s effect as a precedent will be closely watched, media said.

A massive tsunami set off by a 9.0 magnitude earthquake off Japan’s northeastern coast on March 11, 2011 struck the Fukushima Daiichi power plant of Tokyo Electric Power (Tepco), causing the worst nuclear disaster since Chernobyl and forcing hundreds of thousands from their homes.

About 470,000 people were forced to evacuate in the first days after the disaster, and tens of thousands remain unable to return even now.

Lower courts had split over the extent of the government’s responsibility in foreseeing the disaster and ordering Tepco to take steps to prevent it.

Plaintiffs demanded damages from both Tepco and the country in several class-action lawsuits, and in March the Supreme Court upheld an order for Tepco to pay damages of 1.4 billion yen to about 3,700 people.

Japanese Chief Cabinet Secretary Hirokazu Matsuno declined direct comment when asked about the ruling at a news conference, though he said he was aware of it.

“Regardless of the ruling, we will stay close to those affected by the disaster and keep on doing our utmost for Fukushima’s reconstruction and revival,” he said.

Biden announces additional $1 billion in military aid for Ukraine

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The Biden administration announced on Wednesday it was providing an additional $1 billion in military aid to Ukraine to fight Russia, a package that includes shipments of additional howitzers, ammunition and coastal defense systems, according to CNN.

US President Joe Biden spoke by phone with Ukrainian President Volodymyr Zelensky on Wednesday ahead of the announcement, which the Pentagon said included providing Ukraine with 18 howitzers, 36,000 rounds of howitzer ammunition and two Harpoon coastal defense systems.

The US will also provide $225 million in humanitarian assistance to Ukraine, which Biden said will go toward “supplying safe drinking water, critical medical supplies and health care, food, shelter, and cash for families to purchase essential items.”

Austin and Chairman of the Joint Chiefs Gen. Mark Milley on Wednesday were in Brussels, where a meeting was held with a working group of nearly 50 countries to discuss the crisis.

“I informed President Zelensky that the United States is providing another $1 billion in security assistance for Ukraine, including additional artillery and coastal defense weapons, as well as ammunition for the artillery and advanced rocket systems that the Ukrainians need to support their defensive operations in the Donbas,” Biden said in a statement after the call. “We also discussed Secretary Austin’s efforts in Brussels today to coordinate additional international support for the Ukrainian armed forces.”

Speaking in Brussels, Defense Secretary Lloyd Austin said the US and Ukraine are “working in lockstep to meet Ukraine’s requests for new capabilities, especially its need for long-range fires, armor and coastal defense.”

The latest weapons package comes as Ukraine’s military is burning through its Soviet-era ammunition, while Ukrainian officials have pleaded with the West to send additional heavy weaponry as the war with Russia girds on. Western intelligence and military officials believe the war is at a critical stage that could determine the long-term outcome of the conflict, while Russia has amassed a significant artillery advantage around two key cities in eastern Ukraine.

Zelensky thanked Biden on Wednesday for his “consistent, unwavering support” and for mobilizing the international security, according to a statement from the Ukrainian president’s office.

“The security support from the United States is unprecedented. It brings us closer to a common victory over the Russian aggressor,” Zelensky said.

A Pentagon spokesman said the US has now committed more than $5 billion in security assistance to Ukraine since Russia invaded in February. The latest tranche of weapons includes ammunition for High Mobility Artillery Rocket Systems, or HIMARS, and tactical vehicles “to recover equipment,” as well as thousands of secure radios and thousands of night vision devices, thermal sightsand “other optics,” the Pentagon said.

The package is expected to include weapons and supplies that can be quickly shipped from existing US stockpiles as well as issuing new contracts for long term supplies for

U.S. weekly jobless claims fall modestly

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The number of Americans filing new claims for unemployment benefits fell less than expected last week, suggesting some cooling in the labor market, though conditions remain tight.

The economy’s outlook is darkening, with other data on Thursday showing homebuilding slumping to a 13-month low in May, weighed down by soaring mortgage rates and building material prices. Manufacturing also appears to be losing speed. The economy’s waning momentum comes as the Federal Reserve is aggressively raising interest rates to fight inflation.

Fed Chair Jerome Powell told reporters on Wednesday that “the labor market has remained extremely tight,” and that “labor demand is very strong.” The U.S. central bank has increased the overnight rate by 150 basis points since March.

“For now, supply and demand mismatches will keep filings low,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York. “But the level could start to trend up as the Fed continues to remove policy accommodation to slow demand.”

The latest batch of economic data followed on the heels of news this week of a surprise decline in retail sales last month, and could amplify fears of a recession. The Fed on Wednesday raised its policy interest rate by three-quarters of a percentage point, the biggest hike since 1994.

“The risk of a hard landing for the U.S. economy has grown exponentially,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The Fed’s aggressive and abrupt policy tightening may soon be criticized for letting in the winds of recession.”

Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 229,000 for the week ended June 11. Economists polled by Reuters had forecast 215,000 applications for the latest week.

The decline partially reversed the prior week’s jump, which had lifted filings close to a five-month high, and was blamed on seasonal fluctuations around moving holidays like Memorial Day.

Significant increases in claims were reported in California, Ohio, Illinois and Michigan. Claims fell in Missouri.

There has been a steady rise in reports of job cuts mostly in the technology and housing sectors. Still, claims have remained locked in a tight range since plunging to a more than a 53-year low of 166,000 in March.

U.S. stocks opened sharply lower. The dollar fell against a basket of currencies. U.S. Treasury yields rose.

The claims report showed the number of people receiving benefits after an initial week of aid increased 3,000 to 1.312 million during the week ending June 4. There were 11.4 million job openings at the end of April.

Higher borrowing costs are combining with record high home prices to chill the housing market. This could help to bring housing demand and supply back into alignment and lower prices.

A separate report from the Commerce Department on Thursday showed housing starts plunged 14.4% to a seasonally adjusted annual rate of 1.549 million units last month, the lowest level since April 2021. Economists had forecast starts would slide to a rate of 1.701 million units.

Permits for future homebuilding declined 7.0% to a rate of 1.695 million units. A survey on Wednesday showed the National Association of Home Builders/Wells Fargo Housing Market sentiment index hit a two-year low in June, with a gauge of prospective buyer traffic falling below the break-even level of 50 for the first time since June 2020.

Single-family housing starts, which account for the biggest share of homebuilding, tumbled 9.2% to a rate of 1.051 million units last month, the lowest since August 2020.

Single-family homebuilding rose in the Northeast, but fell in the Midwest, South and West regions.

The 30-year fixed-rate mortgage jumped 25 basis points last week to an average of 5.65%, the highest level since November 2008, according to data from the Mortgage Bankers Association.

Building permits for single-family homes declined 5.5% to a rate of 1.048 million units, the lowest since July 2020.

Starts for housing projects with five units or more dived 26.8% to a rate 469,000 units. Multi-family housing permits dropped 10.0% to a rate of 592,000 units.

The number of houses approved for construction that are yet to be started increased 0.7% to 283,000 units. The single-family housing backlog was unchanged at 152,000. These will eventually become starts and help to underpin residential construction.

“Mortgage rates north of 6% are likely sufficient to cool the housing market, which isn’t necessarily a bad thing,” said Ryan Sweet, an economist at Moody’s Analytics in West Chester, Pennsylvania.

“The housing market was red-hot, and that wasn’t sustainable.”