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December 19, 2024

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While the S&P 500 and Nasdaq 100 have been holding steady into this week’s Fed meeting, warning signs under the hood have suggested one of two things is likely to happen going into Q1.  Either a leadership rotation is amiss, with mega cap growth stocks potentially taking a back seat to other sectors, or a risk-off rotation is coming where investors rotate to defensive positions.

A quick review of the Bullish Percent Indexes can help us review how the resilience of the markets can be attributed to the continued strength of the Magnificent 7 and related names.  Today we’ll compare breadth conditions for the S&P 500 and Nasdaq 100, and update some key levels to watch into year-end and beyond.

The S&P 500 Bullish Percent Index is a breadth indicator driven by point and figure charts.  This data series basically reviews 500 point & figure charts and shows what percent of the stocks have most recently generated a buy signal.  I’ve found the Bullish Percent indexes to be most valuable around major market tops, because a downturn in a breadth indicator such as this can only happen if lots of stocks are pulling back in a fairly significant fashion.

Here we’re showing the S&P 500 index for the last 12 months along with the Bullish Percent Index for the S&P 500 as well as the BPI for the Nasdaq 100.  Note that toward the end of September, the S&P 500’s BPI was around 80% while the Nasdaq’s was around 70%.  

Going into this week, the S&P 500’s BPI had pushed down to around 60%, while the Nasdaq 100’s BPI was still around that 70% level.  This change of character is due to the fact that large cap growth stocks have remained largely constructive, while some of the most important breakdowns we’ve witnessed in recent weeks have been in more value-oriented sectors.

This divergence between the two Bullish Percent Indexes tells us that the S&P 500 and Nasdaq 100 have not remained strong because of broad support from a variety of sectors, but more because of concentrated support from a limited number of growth sectors like technology.

As the market is reeling this week in reaction to the Fed’s expectations for further rate cuts into early 2025, we can see that both of the Bullish Percent Indexes have now pushed below the 50% level for the first time since the August market correction.  This means we need to focus on a key “line in the sand” for the S&P 500 and to attempt to better define market conditions.

The SPX 5850 level has been the most important support level in my work, based on the fact that a break below that key pivot point would mean the S&P 500 has made a lower low.  We haven’t seen that sort of short-term weakness since the August pullback.  While the initial downturn post-Fed has pushed the SPX down toward the 5850 level, we would need to see a confirmed break below that point to unlock potential further downside targets.

Our latest video on StockCharts TV breaks down the Bullish Percent Index chart above, along with four key stocks reporting earnings this week.  While those charts will all most likely be affected by this week’s Fed announcement, earnings still matter!  I will be watching important levels of support in all four of those names, and I’d encourage you to leverage the alert capabilities on StockCharts to ensure you don’t miss the next big move!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

The uranium market entered 2024 on strong footing after a year of significant price movement, as well as renewed attention on nuclear energy’s role in the global energy transition.

After a hitting a 17 year high in February, the uranium spot price declined and then stabilized for the rest of 2024, highlighting the fragile balance between supply constraints and growing demand.

Uranium ended the year around US$73.75 per pound, down from its earlier heights, but still historically elevated.

Key drivers of 2024’s momentum included geopolitical tensions, particularly US sanctions on Russian uranium imports, and supply-side challenges, such as Kazatomprom’s (LSE:KAP,OTC Pink:NATKY)reduced output. Meanwhile, the energy transition narrative bolstered uranium’s importance as countries sought reliable, low-carbon energy sources. The global push for nuclear energy, amplified by new commitments at COP29, has set the stage for continued growth in demand.

Heading into 2025, questions about long-term supply security, the geopolitical reshaping of the uranium market and the direction the price will take are expected to dominate industry discussions.

Investors, utilities and policymakers alike are navigating an increasingly dynamic market, looking to capitalize on nuclear energy’s pivotal role in a decarbonized future.

Uranium M&A heating up, more expected in 2025

According to the World Nuclear Association, uranium demand is forecast to grow by 28 percent between 2023 and 2030. To satisfy this projected growth, uranium majors will need to increase annual production.

They can do so by expanding current mines — if the economics are viable — or by acquiring new projects.

The market began to see heightened merger and acquisition activity in 2024, and the trend is likely to continue into 2025 and beyond, according to Gerado Del Real of Digest Publishing.

He added, “I think it makes sense for some of these bigger companies to start merging and really create a market for themselves, and then take market share for the next several decades.”

One of 2024’s most notable deals was a C$1.14 billion mega merger that saw Australia’s Paladin Energy (ASX:PDN,OTCQX:PALAF) move to acquire Saskatchewan-focused Fission Uranium (TSX:FCU,OTCQX:FCUUF).

The deal, which was announced in July, is currently undergoing an extended review by the Canadian government under the Investment Canada Act. Canadian officials have cited national security concerns as a reason for the extension.

A key factor is opposition from China’s state-owned CGN Mining, which holds an 11.26 percent stake in Fission Uranium. The review reflects heightened scrutiny over critical uranium resources amid geopolitical tensions and global energy security concerns. The prolonged evaluation is now set to conclude by December 30, 2024.

With no guarantee of approval, both companies are navigating the implications as Canada carefully weighs the acquisition’s potential impact on its domestic uranium sector and national interests.

Although the Paladin deal remains precarious, it hasn’t impeded other uranium sector transactions.

At the beginning of Q3, IsoEnergy (TSX:ISO,OTCQX:ISENF) announced plans to buy US-focused Anfield Energy (TSXV:AEC,OTCQB:ANLDF). The deal will significantly increase the company’s resource base to 17 million pounds of measured and indicated uranium, and 10.6 million pounds inferred.

The acquisition will also position IsoEnergy as a potentially major US producer.

“We’ll be looking toward some pretty robust M&A In 2025,” said Del Real.

Companies weren’t the only dealmakers in 2024. In mid-December, state-owned Russian company Rosatom sold its stakes in key Kazakh uranium deposits to Chinese firms.

Uranium One Group, a Rosatom unit, sold its 49.979 percent stake in the Zarechnoye mine to SNURDC Astana Mining Company, controlled by China’s State Nuclear Uranium Resources Development Company.

Additionally, Uranium One is expected to relinquish its 30 percent stake in the Khorasan-U joint venture to China Uranium Development Company, linked to China General Nuclear Power.

For Chris Temple of the National Investor, the move further evidences the notion that China is using backdoor loopholes to circumvent US policy decisions for its own benefit.

“China is selling enriched uranium to the US that’s actually Russian-enriched uranium — but (China) owns it,” he said. “It’s the same as when China goes and sets up a car factory in Mexico, and Mexico sells the cars to the US.”

Geopolitical tensions to amp up supply concerns

Geopolitical tensions are also anticipated to play a key role in uranium market dynamics in 2025.

In the US, the Biden administration’s Russian uranium ban will continue to be a factor in the country’s supply and demand story. In 2023, the US purchased 51.6 million pounds of uranium, with 12 percent supplied by Russia.

In response to the Russian uranium ban and other sanctions stemming from the Russian invasion of Ukraine, the Kremlin levied its own enriched uranium export ban on the US in November.

With a potential shortfall of 6.92 million pounds looming for the US, strategic partnerships with allies will be crucial.

“If we take a North American — and this includes Canada — (approach), we can find enough supply for the next several years. I am a firm believer that after the next several years of contracts have gobbled up and secured the supply that’s necessary, that we’re just going to be short unless we have much higher prices,” said Del Real.

Canada is home to some of the largest high-quality uranium deposits, making it a plausible source of US supply.

Continental collaboration was an idea that was reiterated by Temple.

“The biggest beneficiaries, if we’re looking at it in the context of North America, are going to be Canadian companies first,’ he said. ‘Secondly, some of the US ones that are going to be adding production that have just been idle for years. You’ve got UEC (NYSEAMERICAN:UEC) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU), two that I follow most closely, and they are starting to ramp back up. It’s going to take a while to get there, but they’re going to do well.”

While Canadian uranium may be the closest and most accessible for the US market, concerns that tariffs touted by Donald Trump could result in a tit-for-tat battle impacting the energy sector have grown in recent weeks.

Despite the incoming president’s tough rhetoric, both Del Real and Temple see it more as a negotiation tactic.

“The cynical part of me doesn’t believe that the tariffs will actually be implemented in any sort of sustainable way, because I’m not a fan. They’re not effective. They’ve been proven to not be effective. They hurt the consumer more than anyone else, and I don’t think that the incoming administration is going to want to start by ramping prices up,” said Del Real, noting that it remains to be seen if the tariff strategy is deployed like a “chainsaw or a scalpel.”

Temple also underscored the need for diplomacy and unification between the US and Canada.

“Trump has made a lot of threats about what he’s going to do as far as tariffs and whatnot. But again, his whole tariff policy is using a sledgehammer in multiple places when a scalpel in fewer places is appropriate,” he said.

He went on to explain that the tariffs are meant to impact China, but the policy is not well targeted. He believes there needs to be more wisdom and nuance in dealing with China, rather than just relying on overarching tariffs.

More broadly, Temple warned of the potential consequences of pushing China too hard and destabilizing the global economy, a concern he sees as a factor that could be very impactful in 2025.

China’s economic troubles, driven by an unprecedented debt-to-GDP ratio, are a looming concern for global markets, Temple added. While much of the focus remains on tariff policies, the bigger issue is China’s fragile economic position, with mounting challenges that require more nuanced strategies than punitive measures like tariffs.

If political tensions escalate — especially under a Trump presidency — market confidence could erode further as businesses look to exit China.

Resource nationalism, jurisdiction and green premiums

Resource nationalism is also seen playing a pivotal role in the uranium market next year.

As African nations like Niger and Mali look to reshape their domestic resource sectors, uranium projects in those jurisdictions will have a heightened risk profile.

“I think (jurisdiction) will be critical,” said Del Real. “I think it has been critical.”

He went on to underscore that with equities currently underperforming, using jurisdiction as a barometer is easier.

“The silver lining that I see as a stock picker and somebody that invests actively in the space, is that it’s so much easier for me to pick the companies that are in great jurisdictions when I’m getting a discount,’ said Del Real.

Africa is an area that Del Real would be cautious about due to a variety of risks, but moving forward supply from the continent is likely to become a key part of the long-term uranium narrative. According to data from the World Nuclear Association, Africa holds at least 20 percent of global uranium reserves.

For Temple, the scramble to secure fresh pounds could lead to a fractured market. “I think there’s going to be a bifurcation in the world, where eastern uranium is going to stay in the east. Western uranium is going to stay in the west. As we ramp back up and some of what’s in between, maybe including Africa, will get bid over,” he said.

Adding to this bifurcation could be a green premium on uranium produced using more sustainable methods such as in-situ recovery. This “green” uranium could demand a higher price than recovery methods that rely on sulfuric acid.

“There is more likely to be a green premium, and beyond a green premium it’s a matter simply of logistics and shipping costs and all of those things — and, of course, resource nationalism,’ said Temple.

He also pointed out that globalization is increasingly being reevaluated, with national security and environmental concerns driving a shift toward regional supply chains and localized production.

Even without recent tariff and trade disputes, the push to reduce dependency on global markets has been growing for years, fueled by legislation like the EU’s distance-based import taxes.

This trend suggests a premium on domestically produced goods and resources.

Experts call for triple-digit uranium prices in 2025

With so many tailwinds building for uranium, it’s no surprise that Del Real and Temple expect the price of the commodity to rise back into triple-digit territory sooner rather than later.

“I think that inevitably, the spot price is going to have some catching up to do with the enrichment prices, as well as the contract prices,” said Temple. “It’s a no-brainer that we get back in triple digits sooner rather than later in 2025, and ultimately I think you’re looking easily in the next few years at US$150 to US$200.”

He cited the rise of artificial intelligence data centers as one of the main price catalysts.

For Del Real, the spot price has found a new floor in the US$75 to US$80 range, with higher levels to come.

“I think we’ll finally be at triple digits in the uranium space,” he said. “(It didn’t take a lot of) time to get from US$20, US$30 to US$70, US$80 and then it was a real straight line past the US$100 mark into consolidation,” he said. “I think the utilities are going to start coming offline. And I absolutely see a sustainable triple-digit price in the uranium space for 2025.”

In terms of investments, both Temple and De Real expressed their fondness for UEC. Del Real also highlighted uranium exploration company URZ3 Energy (TSXV:URZ,OTCQB:NVDEF) as a junior with growth potential.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

(TheNewswire)

TheNewswire – Troy Minerals Inc. (‘ Troy ‘ or the ‘ Company ‘ ) (CSE: TROY; OTCQB: TROYF; FSE: VJ3) announces a private placement financing of up to 4,166,666 flow-through common shares (the ‘ Shares ‘) of the Company at a price of $0.24 per Share for gross proceeds of up to $1,000,000 (the ‘ Offering ‘).

Proceeds of the Offering will be used towards advancing the Company’s current mineral projects. Closing is expected to occur on or about December 24, 2024.

ON BEHALF OF THE BOARD,

Rana Vig | CEO and Director

Telephone: 604-218-4766 rana@ranavig.com

The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.

Certain information contained herein constitutes ‘forward-looking information’ under Canadian securities legislation. Forward-looking information includes, but is not limited to, the completion of the Offering, size of the Offering, and intended use of funds. Generally, forward-looking information can be identified by the use of forward-looking terminology such as ‘will’ or variations of such words and phrases or statements that certain actions, events or results ‘will’ occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are from those expressed or implied by such forward-looking statements or forward-looking information subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different, including receipt of all necessary regulatory approvals. Although management of the Company have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

Not for distribution in the U.S. or to U.S. Newswire services.

Copyright (c) 2024 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

This post appeared first on investingnews.com

The United Nations has designated 2025 as the year of quantum science and technology, highlighting the profound impact that technological advancements are poised to have on the world.

The increasing prevalence of artificial intelligence (AI) across a wide array of industries has spurred significant investment in the sector over the last two years as the world’s largest tech firms jump in. As AI continues to evolve, many investors are wondering if 2025 will be a pivotal year when these investments begin to show significant returns.

How will AI affect the stock market in 2025?

2024 was marked by concerns over the dominance and high valuations of the Magnificent 7, and heading into 2025, investors are keenly watching how these companies will influence the broader stock market.

Citigroup (NYSE:C) analysts have a generally positive outlook for 2025, noting that the Magnificent 7 aren’t trading at unprecedented valuations; rather, the other S&P 500 (INDEXSP:.INX) stocks are at a higher risk.

Essentially, the US stock market is priced for perfection, leaving it susceptible to a correction triggered by rising interest rates, disappointing earnings or a broader economic slowdown.

For its part, BNY asserts that the Magnificent 7 may actually be undervalued relative to their future growth potential. While acknowledging the record-high profit margins in the tech sector, the firm contends that valuations relative to the rest of the market are cheaper than during similar periods of technological advancement in history.

Further, the expectation of continued profit margin expansion and earnings growth fueled by ongoing AI innovation supports the notion of further upside potential for tech stocks.

AI juggernaut NVIDIA’s (NASDAQ:NVDA) sustained profitability underscores its dominant market position and ability to efficiently capitalize on the surging demand for its products.

Goldman Sachs (NYSE:GS) analysts believe the Magnificent 7 will continue to outperform the rest of the S&P 500 in 2025, but only by 7 percentage points, the lowest amount in seven years. The firm sees various elements, including macro factors like US growth and trade policy, favoring the ‘S&P 493.’

David Rosenberg, founder of independent research firm Rosenberg Research and Associates, expressed to the Globe and Mail on December 5 that he has shifted his perspective on the US stock market.

Rather than focusing on reasons for its overvaluation and bearish indicators, he aims to understand the underlying factors driving the market’s behavior over the past two years.

“The market is telling us that we are in a ‘Model Shift’ when it comes to future growth and profits,” he explained. “Traditional valuation methods, like price-to-earnings ratios, are backward-looking and may not be suitable in this environment. Investors are focused on long-term potential, particularly in areas like AI, and are willing to pay a premium for it. The current surge in AI might resemble the dot-com bubble, but it could take years to confirm.’

He added that interest rate cuts from the US Federal Reserve would support higher valuations.

BNY also points to historical data showing that an environment of easing monetary policy tends to coincide with economic growth, with an average of 16.5 percent growth in the year following initial rate cuts since 1984. It suggests that S&P 500 earnings growth will be between 10 to 15 percent in 2025, with the index reaching around 6,600 in 2025. Although this represents slower growth compared to 2024, it still indicates continued expansion.

While Rosenberg is mindful of near-term risks, such as weakness in the US labor market and the likelihood of profit-taking and early rebalancing, he emphasized the importance of keeping an open mind in 2025.

In his view, it’s key for investors to learn from the mistakes of the past year, such as overreacting to short-term volatility and underestimating the potential of transformative technologies.

Profitability in focus as AI improvement rate slows

While Big Tech pours billions into AI development, the question of profitability in 2025 hangs in the balance.

Google (NASDAQ:GOOGL) is prioritizing long-term AI dominance over short-term gains. The company’s aggressive AI spending is expected to continue in 2025, potentially impacting immediate revenue growth.

Similarly, Meta (NASDAQ:META) is heavily investing in AI, with a projected US$1 billion increase in capital expenditures for 2024. CFO Susan Li acknowledged in the company’s earnings call for Q3 of this year that both depreciation and operating expenses will grow next year as Meta expands its AI infrastructure and product line.

Overall, the AI landscape in 2025 hinges significantly on whether Big Tech can deliver on its ambitious promises, and recent commentary suggests that the rate of AI improvement may be slowing down. Several AI investors, founders and CEOs told TechCrunch in November that the focus may shift to efficiency and specialized AI solutions.

Test-time compute, which gives AI models more time to “think” before answering a question, emerged as part of the new era of scaling laws toward the end of 2024. Scaling laws are described by TechCrunch as the methods and expectations that labs have used to increase the capabilities of their models.

This development has fueled a growing belief — held by experts like Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman — that artificial general intelligence (AGI) may be closer than previously anticipated.

Beyond the evolution of scaling laws, Konstantine Buhler of Sequoia Capital told Bloomberg News that 2025 is poised to be a breakout year for AI agents. These sophisticated programs, capable of independently performing tasks and making decisions, have the potential to revolutionize how we interact with technology and automate complex processes.

While the transformative potential of AI spans countless industries, the scale and timing of substantial returns remain uncertain as we navigate this uncharted technological territory.

AI hardware and infrastructure developments to watch

Regardless of the exact timeline or nature of AGI’s arrival, one thing is certain: the race to develop and deploy advanced AI is driving an insatiable demand for powerful hardware, and key companies are stepping up.

“While the mega-cap cloud companies will capture a lot of future revenue opportunities for AI, they are still in spending mode right now. They’re spending heavily on semiconductors, data center infrastructure, and energy,” Nicholas Mersch, associate portfolio manager at Purpose Investments, wrote in a July market commentary note.

The buildout is ongoing, and Big Tech’s latest round of quarterly reports indicates no immediate slowdown in infrastructure spending. This dynamic positions key hardware players like Taiwan Semiconductor Manufacturing Company (NYSE:TSM), NVIDIA and Broadcom (NASDAQ:AVGO) for potentially stronger near-term returns.

For its part, Goldman Sachs predicts that investor focus will now shift from AI infrastructure to a wider “Phase 3” of AI application deployment and monetization. Companies of interest include software and services firms.

Lux Research highlights two primary models: the monopoly model and the ‘walled garden’ approach.

Companies like NVIDIA, Meta and Microsoft are pursuing a monopoly strategy, aiming to capture a large market share and maximize value extraction from a broad user base. Challenges include competition and pressure to keep prices low.

Companies can also adopt a ‘walled garden’ approach, similar to Apple’s (NASDAQ:AAPL) ecosystem, which prioritizes a smaller, more engaged user base. By providing premium features and exclusive content, companies can increase value generated per user. This model may face challenges in achieving the same level of scale as the monopoly model.

Investor takeaway

The outlook for the tech sector and the broader stock market in 2025 is cautiously optimistic.

AI is expected to continue playing a pivotal role, with the race for AI dominance fueling investments in infrastructure and innovation, and positioning key hardware and software players for potential gains.

However, the profitability of AI investments remains to be seen. Companies’ ability to adapt and capitalize on emerging opportunities will be crucial for sustained success in the dynamic landscape of 2025.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Investor and author Gianni Kovacevic shared his thoughts on copper market dynamics, saying that while the long-term trend is up, speculators can create significant shorter-term prices moves.

He also mentioned three copper companies he’s interested in right now: CopperNico Metals (TSX:COPR,OTCQB:CPPMF), Entree Resources (TSX:ETG,OTCQB:ERLFF) and Horizon Copper (TSXV:HCU,OTCQX:HNCUF).

In addition to copper, Kovacevic spoke about the growing opportunity he sees in lithium, highlighting how major miners like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) are increasing their exposure to this important battery metal.

‘We are going to have a supply shortage. Not in the distant future — in the next 18 to 36 months it’ll be a front-page story, and it will be dovetailed with … oil and gas. And with that comes the oil and gas investor,’ he said.

Explaining his view, Kovacevic said oil and gas companies are becoming interested in direct lithium extraction.

Watch the interview above for more from Kovacevic on copper and lithium, as well as Donald Trump’s second term.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Human Rights Watch (HRW) on Thursday accused Israel of “acts of genocide” against Palestinians in Gaza by depriving them of adequate water supplies.

The group, in an extensive report, found that between October 2023 and September 2024, Israeli authorities deprived Palestinians of what the World Health Organization (WHO) says is the minimum quantity of water required for survival in prolonged emergency situations. This has contributed to thousands of deaths and the spread of numerous diseases, the report found.

Israel, which has repeatedly denied allegations of genocide and of using hunger as a weapon of war, denied HRW’s latest accusations, with a foreign ministry spokesperson saying the report was “full of lies.”

According to WHO, a person needs between 50 and 100 liters (13 and 26 gallons) of water per day to ensure their “basic needs are met.” In protracted emergency situations, the minimum amount of water can drop to 15 to 20 liters per day for drinking and washing.

For the over 2 million Palestinians living in the Gaza Strip, even this is out of reach, HRW found. Most or all of the water Palestinians in Gaza have access to is not safe to drink.

HRW says Israel’s actions amount to acts of genocide under the Genocide Convention and the Rome Statute of the International Criminal Court (ICC). It stresses that the deprivation of water is leading to the slow deaths of Palestinians in Gaza, including newborn babies whose mothers can’t feed them due to malnourishment and dehydration, and who are drinking formula mixed with dirty water.

Israel’s war in Gaza, launched after Hamas’ attack in October 2023, has killed nearly 45,000 Palestinians and injured 106,000 more, according to the Palestinian Ministry of Health.

HRW says that the obstruction of water in Gaza is a deliberate act by Israeli authorities, citing Israel’s obstruction of humanitarian aid including supplies relating to water treatment and production, restrictions on the flow of clean water through pipelines from Israel into Gaza, as well as “massive” damage to Gaza’s water infrastructure caused by Israeli strikes.

In January, the World Bank and Ipsos, a market research firm, estimated that nearly 60% of Gaza’s water and sanitation infrastructure had been damaged or destroyed by hostilities. By August, that had risen to 84%.

In a statement on X, Oren Marmorstein, the spokesperson for Israel’s foreign ministry, denied the accusations and said Israel had “facilitated the continuous flow of water and humanitarian aid” into Gaza.

He said Israel had also ensured water infrastructure, including four water pipelines and water pumping and desalination facilities, remain operational.

‘Brazen breach of international law’

Israel has previously faced accusations of using water as a weapon of war in Gaza.

Pedro Arrojo-Agudo, the UN special rapporteur on the human rights to safe drinking water and sanitation, said in November 2023 that “every hour that passes with Israel preventing the provision of safe drinking water in the Gaza strip, in brazen breach of international law, puts Gazans at risk of dying of thirst and diseases related to the lack of safe drinking water.”

The crisis has fueled diseases in Gaza and caused deaths estimated in the thousands, HRW said. The scale of the devastation caused by a lack of water may likely never be fully understood, the organization warned, due to the decimation of Gaza’s health care system including disease tracking.

Polio, a highly contagious viral disease often caused by insufficient access to safe water and sanitation, is one example of this. WHO testing first discovered the polio virus in samples of sewage taken from overcrowded tents of people displaced by Israeli airstrikes in Gaza in July. On August 16, the Palestinian Ministry of Health confirmed a case of polio in a 10-month-old child – the first case in Gaza in 25 years.

Bacterial infections like diarrhea have become commonplace in the enclave due to the consumption of contaminated water. Describing the impact of being forced to drink from an unclean well, one man told HRW: “I was getting sick, my kids were vomiting and had diarrhea, and I had diarrhea…This was from the moment we started drinking the (dirty) water.”

The HRW report comes as an Israel-Hamas ceasefire deal remains elusive, although negotiations appear to have taken a more positive turn in recent days.

In an official statement on Tuesday, Hamas said reaching an agreement was “possible.” A Hamas source also added that talks were “positive and optimistic.” However, the militant group cautioned that hurdles remain.

Both Israeli and Hamas teams are in the Qatari capital for indirect negotiations.

This post appeared first on cnn.com

French President Emmanuel Macron has landed on the Indian Ocean archipelago of Mayotte, days after the French overseas territory was hit by a devastating cyclone.

At least 31 people have been confirmed dead so far, but local officials fear the complete toll could be much higher, reaching hundreds or even thousands.

Many parts of Mayotte remain inaccessible after Cyclone Chido – the worst to hit the territory of just over 300,000 in at least 90 years – struck last weekend. The powerful storm flattened neighborhoods, knocked out electrical grids, crushed hospitals and schools and damaged the airport’s control tower.

Mayotte lies in the Indian Ocean off the east coast of Africa, just west of Madagascar. Made up of two main islands, its land area is about twice the size of Washington DC.

The extent of the damage has been difficult to ascertain, in part because of the prevalence of undocumented migrants living in informal dwellings. An estimated 100,000 undocumented migrants, many from neighboring Comoros and Madagascar, live in Mayotte, according to France’s interior ministry.

Mayotte has struggled with poverty, unemployment, violence and a deepening migration crisis, which France has responded to with police crackdowns and mass deportations.

The government activated a state of “exceptional natural disaster” on Wednesday evening, a measure that has never been used, to help manage the crisis, according to the French overseas minister. Authorities also froze the price of consumer goods, such as food and hygiene products, amid shortages.

Local officials have warned that a lack of safe drinking water and poor sanitation conditions could lead to a disease outbreak.

The International Federation of Red Cross and Red Crescent Societies (IFRC) said Tuesday it had lost contact with 200 of its volunteers in Mayotte and that it was racing to deliver aid, including water and medical supplies, to impacted communities.

French authorities distributed 120 metric tons of food Wednesday ahead of Macron’s visit, news agency Reuters reported. On Thursday, the president’s plane also transported more than four tons of food and health aid, Macron said on social media.

Cyclone Chido, a Category 4 storm, tore through the southwestern Indian Ocean over the weekend, impacting northern Madagascar before rapidly intensifying and slamming Mayotte with winds above 220 kilometers per hour (136 miles per hour), according to France’s weather service.

Bruno Garcia, a resident of Mamoudzou, Mayotte’s capital, told BFMTV the destruction was “catastrophic” and “apocalyptic.”

“There is nothing left. It’s as if an atomic bomb fell on Mayotte,” Garcia said.

This post appeared first on cnn.com

Ethiopia and Kenya both embrace renewables for their electricity production.

Ethiopia produces all the power for its national grid from renewable sources, and is home to the Grand Ethiopian Renaissance Dam, the largest hydropower plant in Africa. In Kenya, renewables account for around 90% of electricity, and the country boasts one of the largest geothermal facilities in the world, in the Olkaria Area.

But relying on renewables can be hard: electricity can’t always be generated when needed (a drought can mean no hydropower) and renewable energy is difficult to store. One solution? The Ethiopia-Kenya Electricity Highway.

The vast piece of infrastructure opened officially last year after a decade of work and $1.2 billion of investment. Now, when one country needs more electricity for its national grid and the other has a surplus, electricity automatically flows across the border, along 650 miles of transmission lines, so that supply meets demand. Last week, a Kenya-Tanzania link began operations, which will let energy flow across that border, too.

Power sharing

Experts say sharing electricity (or “power sharing”) between African countries is fundamental to a successful clean energy transition. According to Darlain Edeme, African Energy Analyst for the International Energy Agency (IEA), it can “improve quality, reliability, security, and have benefits on prices,” in a continent where demand for electricity is rapidly increasing.

In Ethiopia, a country with a population of nearly 130 million, electricity consumption per capita quadrupled between 2000 and 2022. In Kenya, it rose by three quarters within the same period. And it’s set to continue rising – in 2017 Ethiopia launched its National Electrification Plan that aimed to achieve universal electrification by 2025, despite only about one in four rural households currently having access to electricity. Across Africa, the UN has targeted universal access to electricity by 2030, which would mean adding the 600 million people currently without it – nearly half the population of the continent – in the next five years.

With a rising energy access deficit – the difference between supply and demand – it makes sense for neighbors to pool their resources. But power sharing requires sophisticated infrastructure – namely, interconnectors – transmission lines that enable electricity to flow both ways across a border or over a large distance.

And it’s expensive, too. The Ethiopia-Kenya Electricity Highway follows the model of other interconnectors in Africa, including one between Zambia and Namibia, which has run since 2010 and cost $300 million to construct, and a 1,000-mile interconnector between two regions of the Democratic Republic of the Congo, running since 1982 and costing over $800 million.

For the African Development Bank (AfDB), which contributed over $300 million of funding towards the Ethiopia-Kenya link, it’s worth it. “You see population growth somewhat outstripping the growth of new connections,” said Daniel Schroth, director of the Renewable Energy and Energy Efficiency Department at the AfDB. “There’s a big push on addressing this energy access deficit more decisively.”

Energy security for East Africa

Since the highway opened, Ethiopia’s electricity supply has provided vital backup for Kenya, which has been importing 200 megawatts (MW) of power daily from its neighbor, equivalent to around 10% of the peak demand of Kenya’s national grid. The interconnector has the capacity to transfer up to 2,000 MW.

For many countries in East Africa with a history of power outages, including Ethiopia and Kenya, access to a backup supply could be a lifeline. But while Alemayehu Wubeshet Zegeye, manager for Regional Power Systems Operations in the East African Region for the AfDB, said that the new interconnector “absolutely will reduce the number of blackouts,” it cannot remove them entirely. IEA analyst Edeme said that while having access to backup supplies of electricity is one thing, having functioning utilities to distribute it is another. Across Africa, he said, utilities “are not in the best shape from a financial perspective.”

In September, Reuters reported two “major blackouts” in Kenya in a single week, with Energy Minister Opiyo Wandayi blaming “sub-optimal investment in infrastructure.”

Connecting the continent

The Ethiopia-Kenya Electricity Highway, also funded by the World Bank, is one part of a wider project for the Eastern African Power Pool (EAPP), a group of 13 countries brought together to meet rising demand for electricity and ensure backup supplies.

The EAPP is one of five power pools in Africa, which, with the help of interconnectors, could one day link together the energy supplies of every region in the continent.

“The vision clearly articulated by the African Union is to create an African single electricity market building on the regional power pools being interconnected,” said Schroth. The hope is that with increased competition will come falling prices for consumers, and new sources of revenue for countries producing surplus energy that – in the absence of expensive storage systems – would otherwise go to waste. Already, due to the electricity highway, Ethiopia has increased revenue from its electricity exports, which were previously limited to Djibouti, by almost a half, according to Zegeye.

Having added the Kenya-Tanzania interconnector to its power sharing network, the next target for the EAPP is to link Tanzania (and therefore Kenya and Ethiopia, too) to Zambia, both countries in the Southern African Power Pool (SAPP).

Environmental benefits around the world

Interconnectors are popular outside Africa, too, with a network of over 400 in Europe. A link between Spain and Morocco already connects the electricity supplies of Europe and Africa, and another – between Greece and Egypt – is currently under construction, with the aim of completion by 2029.

“I think there has been a rallying call over the last two years,” said Schroth, explaining the proliferation of interconnector projects across the continent and the world. “There won’t be an energy transition without transmission.”

With more funding and international cooperation, there is hope that Africa will one day become a clean energy powerhouse. “I’m optimistic,” said Edeme, “I see a lot of momentum right now in the sector.”

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President Vladimir Putin declined to say when Russian forces would retake the southern Kursk region from Ukraine, insisting that they were making advances “along the entire frontline,” as he began his year-end news conference.

The Moscow event on Thursday consists of a public Q&A session combined with a public phone-in, which Putin stages annually to show his sweeping control of all aspects of the country.

Asked about Russia’s southern Kursk, where Kyiv’s forces are fighting to hold onto settlements following a surprise incursion launched in August, Putin declined to commit to stating when Russia would recapture the whole region – but promised it would happen.

“I cannot and do not want to name a specific date when they will push [the Ukrainian Armed Forces out of the Kursk region],” he said.

“Our guys are fighting, there is a battle going on right now, and serious battles. It is unclear why, there was no military sense in the Ukrainian Armed Forces entering the Kursk region, or holding on there now as they are doing, throwing their best units there to be slaughtered. But nevertheless, it is happening.”

He added, “We will definitely push them out, there is no other way.”

In response to a question on how Moscow’s full-scale invasion of Ukraine – which in Russia is referred to euphemistically as the “special military operation” – was going, Putin said the “situation is changing dramatically,” as the war approaches its third year.

“Movement is going on along the entire front line, every day.”

He continued: “And as I already said, we are not talking about advancing 100-200-300 meters. Our fighters are taking and returning territory in square kilometers. I want to emphasize – every day.”

His answer comes as Ukrainian President Volodymyr Zelensky acknowledged in an interview published Wednesday that Ukraine lacks the strength to take back all its territory occupied by Russia.

Russian forces failed to capture the capital Kyiv in the early weeks of the war, but the war in the east of Ukraine has turned into a costly and brutal war of attrition.

Ukrainian forces remain in the Kursk region but have slowly ceded ground to Russian forces there. Kyiv has said North Korean troops fighting alongside Russian troops there have suffered heavy losses.

Putin did not mention North Korean troops in his reply to the caller, but promised that housing and infrastructure damaged or destroyed in the fighting would be restored.

“I understand that there is nothing good about what is happening to you,” the Russian leader said. “People are suffering heavy losses, hardships, and daily inconveniences, especially those related to children. But rest assured, we will do everything necessary. We will restore everything.”

The annual event allows citizens and journalists to ask the Russian president questions directly, providing a glimpse into Putin’s views on critical matters, and gives the Kremlin leader a platform to showcase his main talking points and address both domestic and international issues. The marathon sessions in the past have lasted well over four hours.

This year’s conference comes amid mounting economic challenges, ongoing tensions over the war on Ukraine, and increased scrutiny on Russia’s international and domestic policies as President-elect Donald Trump prepares to take office in the United States.

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The pilgrims crawled forward, some barely inching along the rough ground with hands, knees and elbows rubbed raw.

The procession of St. Lazarus is one of the largest yearly religious processions in officially secular Cuba and also one of the most colorful.

To show their devotion, thousands of Cubans walk for miles barefoot to the small church known as El Rincón — the corner in Spanish — on the outskirts of Havana ahead of December 17, the day when the saint is celebrated.

“It was a tradition of my father’s and I have followed it for 27 years since he passed away. Lazarus grants me what I ask for,” said pilgrim Fernando Valdez, after walking without shoes for more than five hours on broken roads.

In the New Testament, Lazarus was resurrected four days after his death by Jesus and became the patron saint of the poor and the sick. Many of the Cubans asking a wish from the saint wear clothing made from rough cloth sacks to represent poverty.

Other adherents take their shows of devotion to the extreme, crawling on their stomachs or facing backwards or sometimes with cinder blocks tied to their feet to further slow them down.

Blood stains the pavement in places and medics with the Red Cross apply bandages on scraped knees and hands and pass out water to exhausted pilgrims.

Open displays of religious belief have slowly grown over the years in Cuba, which changed its constitution in 1992 to transition from an officially atheist state to a secular one. A groundbreaking visit by Pope John Paul II six years later further helped restore rights for people of faith.

Still, a heavy police presence surrounded El Rincón during the pilgrimage and officials strategically placed large posters of former Cuban leaders Fidel and Raul Castro as well of the island’s current president Miguel Diaz-Canel outside the entrance to the church.

The complexity of Cuba was also on display as many of the pilgrims are believers in Santería, an offshoot of the Yoruba religion brought to Cuba more than 200 years ago by African slaves. Forced to convert to Catholicism, the slaves blended the two faiths into a syncretic religion that spread across the island and around the Caribbean.

Believers melded African deities like Babalú-Ayé, who both spread and healed sickness, with Catholic saints like Lazarus, who granted wishes for good health.

Already adept at surviving in the shadows and without central leadership, Santería in large part flourished after the crackdown on organized religion in Cuba following Fidel Castro’s 1959 revolution.

Santería’s growth has presented a dilemma to the Catholic Church in Cuba which does not recognize the religion but, faced with often empty pews at services, cannot afford to turn away its followers.

At an outdoor mass held at El Rincón, Catholic priests told Santerîa followers they were welcome at the ceremony but should not ask the priests to bless their beads and idols.

Some priests appeared to pretend to not notice as Santería followers blew cigar smoke onto statues of St. Lazarus, who is represented walking on crutches and wearing a sack cloth.

But the acceptance only goes so far.

Many of the pilgrims voiced concern at Cuba’s worsening economic situation and expressed a wistfulness for the change in policy towards the communist-run government announced by then-President Barack Obama exactly 10 years ago to the day.

Many followers of St. Lazarus saw the announcement on the same day celebrating their deity as fortuitous timing. As the two Cold War-era enemies restored diplomatic ties, Cuba experienced a tourism boom and the island’s beleaguered economic fortunes briefly lifted.

But during his first term, then-President Donald Trump, a critic of what he called Obama’s appeasement of Cuba, reversed much of that opening. Many Cubans say a second Trump term — combined with their own government’s resistance to make meaningful economic reforms — could spell the worst crisis in their lives.

In 2024, Cuba has suffered island-wide rolling blackouts that lasted more than a week, hundreds of thousands of people emigrated from the island and the social safety net once provided by the government all but evaporated.

But as he rested from his pilgrimage, Valdez said he was sure St. Lazarus would once again steer him through the tough times ahead.

“To live, human beings need a reason,” he said. “Something that gives them light and for me it’s my faith. If not, you die.”

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