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1. All three major U.S. stock indexes closed lower. The Dow Jones Industrial Average fell 0.34% to 49,240.99 points, the S&P 500 fell 0.84% to 6,917.81 points, and the Nasdaq Composite fell 1.43% to 23,255.19 points. Salesforce fell nearly 7%, and IBM fell more than 6%, leading the Dows decline. Walmart rose nearly 3%, pushing its market capitalization above $1 trillion. The Wind U.S. Tech Big Seven Index fell 1.62%, with Microsoft and Nvidia both falling nearly 3%. The Nasdaq China Golden Dragon Index fell 0.94%, with Daqo New Energy and Bilibili both falling more than 4%. Investors sold off tech stocks, and the Nasdaq almost completely wiped out its year-to-date gains. The partial U.S. government shutdown will prevent the January jobs report from being released this Friday as scheduled. 2. European stock markets closed slightly lower. The German DAX index fell 0.07% to 24,781.38 points, the French CAC40 index fell 0.02% to 8,179.5 points, and the UK FTSE 100 index fell 0.26% to 10,314.59 points. A market correction was triggered by a sharp decline in global AI stocks, uncertainty surrounding the pace of the Federal Reserves interest rate cuts, fundamental problems in the European economy, high market valuations, and profit-taking pressure. 3. US Treasury yields were mixed. The 2-year Treasury yield rose 0.01 basis points to 3.570%, the 3-year Treasury yield rose 0.01 basis points to 3.643%, the 5-year Treasury yield fell 0.34 basis points to 3.832%, the 10-year Treasury yield fell 0.59 basis points to 4.266%, and the 30-year Treasury yield fell 1.76 basis points to 4.895%. 4. International precious metals futures generally closed higher. COMEX gold futures rose 6.83% to $4,970.50 per ounce, and COMEX silver futures rose 10.27% to $84.92 per ounce. Signals of interest rate cuts from the Federal Reserve, the end of the US government shutdown, and progress on the US-India trade agreement, coupled with adjustments to risk control measures by exchanges, all boosted market sentiment and drove prices higher. 5. The main WTI crude oil contract closed up 2.83% at $63.9 per barrel; the main Brent crude oil contract rose 2.55% to $67.99 per barrel. Data from the American Petroleum Institute (API) showed that US crude oil inventories fell by 11.079 million barrels last week, far exceeding expectations, indicating a contraction in market supply and pushing up oil prices. 6. Most London base metals rose, with LME tin up 7.95% to $50,295.0/ton, LME copper up 4.02% to $13,410.0/ton, LME nickel up 3.38% to $17,395.0/ton, LME aluminum up 1.41% to $3,099.0/ton, LME zinc down 0.02% to $3,323.0/ton, and LME lead down 0.08% to $1,961.5/ton.Conflict Situation: 1. Kharkiv, Ukraine, has activated its emergency response mechanism. 2. Ukraines power company, DTEK, stated that last nights Russian airstrikes were the largest attack on the energy system since early 2026. 3. The mayor of Kharkiv stated that nearly 270,000 Kharkiv residents are still without heating after the Russian attacks. Peace Negotiations: 1. Ukraine agreed to a multi-tiered plan to implement a potential ceasefire agreement with Russia. 2. Zelensky: The UAE talks aimed to assess Russias willingness to compromise. Ukraine will remain open to similar proposals from the United States, such as a cessation of attacks. Other Developments: 1. Zelensky approved Ukraines new defense plan framework. 2. Zelensky: Ukraine is negotiating with the United States for more Patriot missiles. 3. NATO Secretary General: NATO military support will arrive in Ukraine immediately after a peace agreement is reached. 4. European Commission spokesperson: Ursula von der Leyen will visit Ukraine on the fourth anniversary of the Russia-Ukraine conflict. 5. Russian Deputy Foreign Minister Ryabkov stated that Russias nuclear triad modernization has reached a very advanced stage. February 4th - Barbara Hampton, CEO of U.S. Rare Earth Corporation, stated that the company has over $3 billion in potential funding to build a domestic rare earth and critical mineral supply chain. Hampton anticipates that the funding includes up to $1.6 billion in grants from the U.S. Department of Commerce, with the remainder coming from the private sector. She stated that this would enable the Round Top deposit to begin production by 2028. She said, "Our current communications indicate that the U.S. government is willing to make procurement commitments several years earlier to ensure supply stability." Following the governments announcement of a $12 billion critical mineral reserve plan, the companys stock price rose over 17% on Tuesday. It should be noted that federal funding is contingent on achieving phased goals, and private sector investments have not yet been finalized. However, Hampton emphasized that this funding will allow the company to accelerate its plans.A U.S. judge issued a temporary restraining order restricting Portland, Oregons Immigration and Customs Enforcement agency from taking any action against peaceful protesters and journalists.OpenAI issued a statement regarding the ChatGPT outage: All affected services have now been fully restored.

U.S. States Battle to Share Diminishing Colorado River Water Supplies

Skylar Williams

Feb 03, 2023 11:45

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The Colorado River, which supplies 40 million people in seven U.S. states with potable water, is drying up, straining a water distribution treaty in the midst of the greatest drought in 1200 years, which is compounded by climate change.


California left the six states of Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming on Tuesday in response to a U.S. government deadline requiring them to negotiate their own supply cuts or face the possibility of federally mandated reductions.


Kevin Moran, a specialist in water policy at the Environmental Defense Fund, described today's events as a step forward.


"After twenty years of drought and the effects of climate change, six of the seven basin states are playing catch-up to minimize water use from the Colorado River," Moran told Reuters.


When the states signed its pact a century ago, the river was expected to produce 20 million acre-feet of water annually. An acre-foot (1,233 cubic meters) of water is sufficient to supply two urban households with water for one year.


The real flow has decreased to an average of 12.5 million acre-feet over the past two decades, leaving state water managers with more rights on paper than actual availability.


California receives the greatest allocation, of which 80 percent is utilized by its $50 billion agriculture sector.


Many experts believe that the state's choice to opt out of the deal increases the likelihood that the water dispute will reach the nation's top courts.


David Hayes, a lecturer at Stanford University Law School, stated, "We have a scenario where certain water rights holders in California say, 'We're not willing to give up additional water, and we believe we have legal rights and are willing to go to court if necessary.'"


"And there is insufficient time to fight these issues," Hayes, a former senior climate adviser to President Joe Biden, warned.


He identified the need for significant conservation efforts to safeguard reservoirs from overuse and drought exacerbated by climate change, a condition that, if left uncontrolled, might threaten water supply to Las Vegas or California from the Hoover Dam.


Although California was deluged for weeks beginning in late December by seven atmospheric rivers that dumped up to 30 inches (76 centimeters) of rain in some regions, the Colorado River basin received little of this precipitation.


California cannot resolve its long-term crisis without substantial investments to capture more storm water, repair flood plains, and recycle wastewater, despite forecasts of more such atmospheric rivers of increasing magnitude and frequency.


In at least 1,200 years, 2000-2021 was the driest 22-year period for southwestern North America, according to a paper published in Nature in 2017.


Sharon Megdal, director of the Water Resources Research Center at the University of Arizona, stated, "Something will have to give."


As temperatures rise, mountain snows melt more rapidly in the spring, and the state lacks the storage capacity to accommodate the runoff.


She noted that a letter signed by the six states demonstrated that they all acknowledged the need for a change in operating protocols for the Colorado River and its supplies.


"I believe that people would like to believe that we can find a way to keep these economic activities, our type of businesses, and our livelihoods going," Megdal added.