US stocks traded mixed after a surprisingly strong employment report made some investors nervous the Fed will be forced to be much more aggressive with fighting inflation. The Nasdaq was boosted after yesterday’s flawless Amazon earnings report. Amazon delivered strong eps and AWS revenue beats, reported a $12 billion gain from their bet on Rivian, and raised their annual Prime membership prices. Investors care about Cloud growth and future profits and Amazon’s earnings report had all those boxes checked off.
The next couple of months should be very choppy for equity markets as Fed tightening certainty will clearly take a cue from how quickly supply chain issues improve. The Fed clearly is rushing to fix their mistake in tackling inflation and that surging global bond yield environment will make it tough for risky assets. Selling into rallies may not become the dominant theme, but it is hard to imagine investors will be aggressively bullish here.
Financial markets got stunned after a shockingly strong nonfarm payroll report. Many on Wall Street were expecting a negative number, instead we saw robust hiring, higher wages and more Americans returned to the workforce. Treasury yields skyrocketed alongside the dollar following the impressive labor report that will fuel into the inflationary theme that is driving markets. With a couple hotter inflation reports coming before the March FOMC meeting, the base case is quickly becoming for the first-rate hike to be a half-point interest rate increase.
This employment report will not be shrugged off. The US economy gained 467,000 jobs in January, a strong beat of the 125,000 consensus estimate and a big surprise for many analysts expecting a negative print. December payrolls also had a very robust revision from 199,000 to 510,000. The labor force participation rate also improved from 61.9% to 62.2%, which is why the unemployment ticked higher to 4.0%. If it weren’t for the massive revisions, the participation rate would have stayed at 61.9%, which would still be well below the pre-pandemic level of 63.4%. What complicated this report was seasonal factors and that 6 million people were out of work due to COVID. The labor market is so tight that even a massive COVID surge can’t disrupt hiring.
Average hourly earnings were 5.7% higher in January compared with a year ago, which confirms the wage pressure companies are seeing.
The January nonfarm payroll report supports the argument that the Fed will do more to tackle inflation and that the yield curve will flatten. The 2-year Treasury yield rose 9.8bps to 1.298%, while the 30-year Treasury yield rose 4.9bps to 2.200%.unemployment pandemic yield curve nasdaq stocks fomc fed unemployment
Nansen third-party vendor suffers security breach, affects user data
The crypto analytics provider says a security breach of a third-party vendor has affected nearly 7% of users in the system who were promptly informed of…
The crypto analytics provider says a security breach of a third-party vendor has affected nearly 7% of users in the system who were promptly informed of the incident.
The prominent crypto and blockchain analytics company Nansen posted on social media platform X that one of its third-party vendors suffered a security breach that affected 6.8% of its users.
According to Nansen, the breach gave hackers access to admin rights for an account used to “provision customer access” to its platform.
Important update from us at Nansen. Please take a moment to read this. pic.twitter.com/syKE0sNnC6— Nansen (@nansen_ai) September 22, 2023
Without directly naming the company affected, it said this vendor is “an established company that is used by many Fortune 500 companies” along with other companies in the industry for the purpose of managing data.
The users who were affected by the breach reportedly had their email addresses exposed, along with some password hashes and a small group had their blockchain addresses compromised.
Nansen said it has identified and informed those affected of the matter and asked all to change their passwords. It also clarified that wallet funds were unaffected by the event.
Nansen is a prominent resource in the crypto space and provides on-chain analytics about many of the industry’s major players.
In a recent interview with Cointelegraph, the CEO of Nansen, Alex Svanevik commented that he believes in the future a protocol will exist that creates a balance between blockchain transparency and user privacy and is compliant with regulators.
Back in May, the company was among the many that felt the effects of the ongoing bear market and laid off around 30% of its workforce.bitcoin blockchain crypto crypto
How air pollution is making life tougher for bugs
We’re making life tough for insects – and not just by swatting them away with a newspaper.
Whether you love them or loathe them, we all depend on bugs. Insects help to pollinate three-quarters of the world’s crop varieties, making them a treasured resource.
But we’re making the lives of insects tough – and not just by swatting them away with a newspaper. Insect populations worldwide are in sharp decline as they battle against climate change, habitat loss and pesticides.
Now, we can add air pollution to the list of threats. Our research from 2022 revealed that when exposed to two common air pollutants at concentrations within EU air quality limits, the visits of pollinating insects to flowers plummeted by as much as 90%.
Over a span of two years, we artificially elevated the levels of either ozone or diesel exhaust fumes around plots of flowering black mustard plants, all within fields of non-flowering wheat. We carefully monitored and controlled the release of pollutants using rings constructed around each plot.
This method allowed us to monitor the number of pollinating insects visiting the flowers in polluted plots and draw comparisons with plots devoid of pollutants.
We were surprised by what we found. In the rings where we released ozone or diesel exhaust fumes, the number of pollinating insects decreased by 70% and overall pollination success rates decreased by up to 31%.
It wasn’t just bees and butterflies that were affected. Ground-dwelling insects suffered too, with exposure to these pollutants causing their numbers to decrease by as much as 36%.
Why air pollution makes life so hard
Many insects rely on their sense of smell to locate flowers. When they feed on nectar, they quickly connect the flower’s scent with its sugary reward. Consequently, when they come across the same scent later on, they track its trail in pursuit of another tasty treat.
Thus, flowers serve a dual purpose. They are not just pretty to look at but also function as beacons that release a specific blend of fragrant chemicals designed to attract pollinators.
But these signals are under threat. Air pollutants like ozone are highly reactive and can degrade the signals by destroying the chemicals that make up a flower’s scent.
In our more recent research, we simulated a floral scent in a 20-metre long wind tunnel and then mapped out how the levels of each of the chemicals that made up the scent changed in response to increasing ozone pollution. We found that ozone quickly ate away at the edges of the plume, reducing both its width and length.
Essentially, the chemical signal could travel only a shorter distance, which limited the number of insects it could reach.
Adding ozone also changes the smell of each of the chemicals that make up a flower’s scent. By observing these changes in a wind tunnel, we could measure the speed at which these chemical changes occur.
Some chemicals degraded within seconds, whereas others were not affected at all. How far away you are from the scent’s source appears to change how the scent smells.
To understand how changes to the floral scent might affect pollinators, we taught honeybees to recognise the same floral scent that we released into the wind tunnel. Much like Pavlov’s dogs drooling at the sound of a dinner bell, bees stick out their proboscis (tube-like tongue) when they sniff an odour they have learned to associate with a sugary reward. This allowed us to see how many bees could still recognise the floral scent once it had been exposed to ozone pollution.
We first tested the honeybees with scent blends replicating those observed at the plume centre when ozone levels were elevated. At a distance of six metres from the flower, 52% of bees recognised the scent. This fell to only 38% at a distance of 12 metres.
We then tested the response of honeybees to the more degraded plume edges. Only 32% of the bees responded at six metres, falling to just 10% at 12 metres.
These results help to explain the significant decline in the number and diversity of insect visits and pollination rates observed in our field trials. Put simply, ozone pollution limits the reach of chemical signals and changes their meaning, leaving insects confused.
But this is unlikely to be the full story. Although we replicated the effects of ozone pollution on floral scents, we never exposed the bees directly to ozone. Separate research carried out in France suggests that direct exposure to ozone might also impair the ability of bees to detect floral scents.
The full extent to which air pollution is impacting the insects we all depend on is only just beginning to be revealed. So, the next time you lift your newspaper to swat a bug, take a second and ask yourself – don’t they have it tough enough already?
Ben Langford receives funding from the Natural Environmental Research Council
James Ryalls has received funding from The Leverhulme Trust and The Royal Society to conduct research on this topic.
Robbie Girling has received funding to conduct research on this topic from the Natural Environment Research Council, the Leverhulme Trust and the Gerald Kerkut Charitable Trust.france eu
Fast fashion’s waste problem could be solved by recycled textiles but brands need to help boost production
Brands like Zara and H&amp;M are teaming up with recycled textile producers but more collaboration is needed.
Earlier this year, fast fashion retailer Zara released its first womenswear collection made of recycled poly-cotton textile waste. The collection is available for sale in 11 countries, helping clothing made of blended textile waste reach the mass market.
The collection came about after Zara’s parent company Inditex invested in textile recycler Circ. This follows a €100 million (£87 million) deal between Inditex and Finnish textile recycler Infinited Fiber Company for 30% of its recycled output. Zara’s fast fashion rival H&M has also entered a five-year contract with Swedish textile recycler Renewcell to acquire 9,072 tonnes of recycled fibre – equivalent to 50 million T-shirts.
There is a growing appetite among some fashion retailers to turn old clothes into high-quality fibres, and then into new clothes. But even though well-known brands are developing lines using recycled textiles, this movement has not yet reached the scale needed to have a truly global impact.
Before this recent growth in interest in textile recycling, fast fashion’s efforts to tackle throwaway attitudes towards affordable clothing often simply added to the global textile waste mountain – especially in developing countries, say campaigners like Greenpeace.
For example, a skirt deposited at a London chain store under a take-back scheme was reportedly found in a landfill in Bamako, Mali. This is not an isolated incident, it’s a sector-wide problem that sees old clothes being collected but not disposed of properly. An estimated 15 million used clothing items are shipped to Ghana each week from around the world and many end up in the country’s landfills. This is often referred to as waste colonialism.
The fast fashion industry needs greater access to recycled textiles to address this problem. But this means having the means to track “thrown-away” garments to collect those suitable for recycling. The industry also needs facilities that are big enough to turn this waste into new materials for clothing at the scale needed to meet mass market demand.
This is particularly important as these firms prepare for an EU crackdown on the region’s own waste mountain. Following the EU strategy for Sustainable and Circular textiles 2022, the European Commission is drafting new legislation over the next five years to make the fashion industry pay for the cost of processing discarded clothing.
Under the new EU rules, companies will be expected to collect waste equivalent to a certain percentage of their production. While the exact amount has not yet been confirmed yet, European commissioner for the environment Virginijus Sinkevičius has said it will “definitely” be more than 5% of production. Companies may have to pay a fee (reportedly equivalent to €0.12 per T-shirt) towards local authorities’ waste collection work.
But fast fashion brands must ensure that this doesn’t just dump the problem of textile waste into other countries’ landfills. Instead, developing lines out of recycled textiles could give these old clothes a new lease of life.
A Fashion Pact signed by more than 160 brands (a third of the sector by volume) commits companies to ensure that, by 2025, 25% of the raw materials such as textiles that they use have a low impact on the environment – recycled fibre is considered a low-impact material. Some brands have set more ambitious targets, including Adidas, which has committed to using 100% recycled plastics by 2024, and Zara-owner Inditex, which pledged to source 40% of its fibres from recycling processes by 2030.
These impending deadlines, plus the EU legislation, should motivate brands to use more recycled fibres. While the supply of such material is currently limited, an influx of recycling start-ups are finding ways to turn old clothes into new fibres that replicate the look and feel of virgin materials.
Start-ups like Spinnova, Renewcell and Infinited Fibre have developed chemical recycling technologies to create new fibres from cotton-rich clothing. And while cheap low-cost blended materials like poly-cotton are difficult to separate and recycle, firms like Worn Again, Envrnu, and Circ are tackling this problem, too.
Worn Again plans to build a new recycling demo plant in Switzerland, paving the way for 40 licensed plants by 2040, which would be capable of processing 1.8 million tonnes of textile waste per year.
Taking textile recycling from hype to reality
Up to 26% of Europe’s textile waste could be recycled by 2030, according to some estimates, according to a 2022 McKinsey report. This would generate €3.5-€4.5 billion in economic output for the EU, create 15,000 new jobs, and save 3.6 million tonnes of CO². But only 1% of textiles are currently being recycled globally into new clothes – the recycling technology needed for this shift is still in its infancy.
Part of the challenge in scaling up textile recycling to this degree is the lack of information available about what happens to clothes that are thrown away. Sharing data on the volume, locations and compositions of waste generated in the supply chain and collected post-consumption would help evaluate the full potential of textile recycling. Companies like Reverse Resources already provide online databases of information on textile waste – in this case for a global network of 70 recyclers, 44 waste handlers and 1,287 manufacturers in 24 countries.
Increasing textile recycling will require a collaborative approach, as will the development of the technology needed to create high-quality recycled textiles. Brands, investors, suppliers, recyclers, technology providers and local governments must come together to find ways to grow the textile recycling industry. The recent New Cotton Project that involves 12 brands (including H&M group and Adidas), manufacturers, suppliers and research institutes is a first step towards increasing textile recycling.
More money is also needed from all of these groups. To reach the recycling rate of 18%-26% by 2030, it will take billions in infrastructure investment for collecting, sorting and processing textile waste.
Textile recycling is no longer for a few “sustainable” fashion firms – it is quickly becoming a reality that no fast fashion firm can ignore. Shoppers must demand that the brands they love show their commitment to textile recycling beyond marketing campaigns and low-volume fashion collections.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.european europe eu
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