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The Hang Seng Tech Index turned negative, with stocks related to chips, nuclear power, and power equipment among the biggest losers.March 17th - The Federal Reserve is set to release an additional $200 billion in capital to several of the largest U.S. banks for their use. In recent years, the six largest U.S. banks have set aside substantial profits to meet stricter standards proposed by former Federal Reserve Vice Chairman for Supervision Barr. Much of this upcoming $200 billion release represents funds that are no longer needed. Later this week, U.S. regulators will unveil new proposals to update and, in some respects, relax U.S. capital regulations, a move that would boost stock buybacks, lending, and trading activity. However, this carries risks: deploying this additional capital too hastily could unhealthily lead to overheating of the economy and housing market. Such a large amount of additional capital will present banks with difficult choices. Goldman Sachs, JPMorgan Chase, and Morgan Stanley have all had to reconsider whether to return billions of dollars directly to investors through stock buybacks. Given the current high stock prices, this would be costly. All large lenders should be wary of expanding their lending too rapidly, as this almost always leads to an increase in bad debts as lending standards decline.1. WTI crude oil futures trading volume was 1,495,668 lots, an increase of 84,695 lots from the previous trading day. Open interest was 2,107,681 lots, an increase of 14,175 lots from the previous trading day. 2. Brent crude oil futures trading volume was 293,399 lots, a decrease of 7,786 lots from the previous trading day. Open interest was 286,510 lots, an increase of 6,372 lots from the previous trading day. 3. Natural gas futures trading volume was 431,760 lots, an increase of 283 lots from the previous trading day. Open interest was 1,568,818 lots, a decrease of 4,375 lots from the previous trading day.Iranian state television: The speaker of the Iranian parliament said that regional security must be sustainable and should not be imposed from the outside.On March 17th, eToro analyst Josh Gilbert stated that the Reserve Bank of Australias (RBA) first consecutive interest rate hikes since 2023 highlights the severity of the Middle East energy shock. This decision was far from easy, with the committee passing it by a near 5-4 vote. This was clearly not the rate hike the RBA wanted, but the institution is facing difficulties with escalating inflation risks and rising fuel prices. For families struggling with mortgage payments, rising fuel and food bills, this is undoubtedly a bitter pill to swallow. The rate cut many were hoping for is now highly uncertain. The RBAs decisiveness this time surpasses that during the 2022 Russia-Ukraine conflict, which could be a key turning point. If the conflict is resolved and oil prices return to normal, the March rate hike might be the last, but at present, this seems like wishful thinking.

Hershey, Nestle, and Cargill win the dismissal of a claim of child slavery in the United States

Charlie Brooks

Jun 29, 2022 11:06


Tuesday, a federal judge in Washington, D.C. dismissed a case brought by eight Malians claiming child slavery on Ivory Coast cocoa plantations against Hershey Co (NYSE:HSY), Nestle SA (SIX:NESN), Cargill Inc, and others.


U.S. District Judge Dabney Friedrich determined that the proposed class action plaintiffs lacked legal standing to sue because they failed to prove a "traceable nexus" between the seven defendant companies and the individual farms where the plaintiffs worked.


She added that the plaintiffs did not adequately explain the role of intermediaries in the cocoa supply chain, and that the companies did not oversee actions in "free zones" where 70 to 80 percent of cocoa is farmed.


Mali and Ivory Coast share a border in West Africa.


The plaintiffs claimed they were trafficked as children after being approached by strangers who promised them employment for which they would be compensated, but did not pay them, threatened them with starvation if they did not work, and forced them to live in squalor.


Their attorney, Terry Collingsworth, said that the plaintiffs plan to file an appeal to "compel the businesses to keep their agreements and put an end to this dreadful system they have created."


Other defendants included Mars Inc, Mondelez International Inc (NASDAQ:MDLZ), Barry Callebaut AG, and Olam International Ltd.


In court filings, the seven defendants said that they "strongly abhor the practice of forced labor" and that they were addressing non-forced child labor in cocoa supply chains.


However, they contended that the plaintiffs' too broad legal theory may hold too many parties liable for forced child labor, including consumers and merchants who would benefit from lower prices.


In accordance with the Reauthorization of the Trafficking Victims Protection Act, the plaintiffs filed suit.


The Supreme Court of the United States rejected a similar case brought by six Malians against Cargill and Nestle under the Alien Tort Statute of 1789 in June of last year.


This was the most recent in a line of judgments denying access to federal courts based on human rights breaches occurring outside the United States.


Coubaly et al. v. Cargill Inc. et al., U.S. District Court, District of Columbia, case number 21-00386.