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California farm town lurches from no water to polluted water

By Daniel Trotta

Published

on

6/6
California farm town lurches from no water to polluted water
© Reuters. Tiffany Copley, 40, looks at her garden that died last summer during the period when the water pump for the community went dry in Teviston, California, U.S., October 22, 2021. Picture taken on October 22, 2021. REUTERS/Stephanie Keith

2/6

By Daniel Trotta

TEVISTON, Calif. (Reuters) – The San Joaquin Valley farm town of Teviston has two wells. One went dry and the other is contaminated.

The one functioning well failed just at the start of summer, depriving the hot and dusty hamlet of running water for weeks. With temperatures routinely soaring above 90 degrees Fahrenheit (32 degrees Celsius), farm workers bathed with buckets after laboring in the nearby vineyards and almond orchards.

Even as officials restored a modicum of pressure with trucked-in water, and after the well was repaired, the hardships have endured. Teviston’s 400 to 700 people – figures fluctuate with the agricultural season – have received bottled drinking water since the well failed in June.

But for years, probably decades, the water coming from Teviston taps has been laced with the carcinogen 1,2,3-Trichloropropane, or 1,2,3-TCP, the legacy of pesticides.

The Western U.S. drought, the most severe in 125 years of record-keeping, is exacting a further toll on communities throughout the San Joaquin Valley, where people living on the edge of farmland gather many of the crops but little of the largesse from California’s $50 billion agricultural industry.

For Esperanza Guerrero, 35, a Mexican immigrant and homemaker whose husband works at a dairy farm, the poor water quality poses additional dangers for her 16-year-old daughter, who can drink only purified water because of a gastrointestinal ailment.

“It’s very stressful as a mother to know that if for any reason she should wash a piece of fruit (with tap water) and eat it, she’s going down,” Guerrero said while picking up bottled water from the community depot.

Teviston, devoid of any retail or commercial business, won a $3 million settlement in June from pesticide producers Dow Chemical Company and Shell (LON:) Oil Company and distributors that will pay for a water treatment plant.

Dow declined to comment on Teviston, but said there was “no merit” to allegations in similar lawsuits brought by other local jurisdictions in the San Joaquin Valley.

“The plaintiffs’ claims in these cases are based on a California water quality standard that went into effect in 2018, several decades after the product formulations in question were discontinued. To the extent TCP was present in past product formulations, it would have been at levels so low as to pose no environmental risk,” the company said in a statement.

Shell declined to comment on active litigation.

The settlement will help Teviston resolve the dilemma of having to choose between safe or affordable water, said Todd Robins, an attorney with San Francisco-based Robins Borghei LLP who has represented other towns like Teviston in similar lawsuits.

The arid, forbidding land of the San Joaquin Valley has been transformed into one of the most fertile plains in the world by farmers, politicians and engineers who changed the course of mighty rivers and brought water hundreds of miles to a valley so broad and flat that in most directions the fields meet sky.

The drought has made both surface and ground water scarce.

The U.S. Bureau of Reclamation, which operates canals moving surface water from Northern California further south, has cut allotments to farmers this year: first to a mere 5% of normal, then down to zero.

That increased demand on the aquifers. Growers who operate their own wells are lowering the water table for neighboring towns like Teviston that depend on well water.

Outside the valley, many environmentalists criticize growers. The people of Teviston don’t paint them as the enemy.

“We need the farms. Without the farms, we don’t have any work,” said Frank Galaviz, a director on the town council who has emerged as Teviston’s leading water advocate.

THE ENEMY BELOW

Historically, the farms have faced another nemesis besides drought.

Beneath the ground, tiny worms called nematodes infest roots. For decades, through the 1980s, growers injected their soil with the since-discontinued pesticides Telone, made by Dow, and D-D, made by Shell, according to Robins, who has pieced together the history of 1,2,3-TCP contamination through about 70 lawsuits against both companies.

By the 1990s health officials established that TCP was carcinogenic and would linger in the water table for a lifetime unless removed by filtration. California’s TCP problem is concentrated in the San Joaquin Valley, state data show.

Telone and D-D were essentially a byproduct of other chemical processes that would have been disposed of were it not found to be an effective pesticide, enabling the companies to offload the byproduct by selling it to farmers, Robins said.

“It’s a dirty secret,” Robins said, adding that Dow’s reformulated Telone II became more effective once TCP and other impurities were removed.

While Teviston awaits a treatment plant, its TCP levels remain above safe levels. In May, testing showed the TCP level was nearly three times the maximum acceptable level, and in March it was more than seven times the limit, according to the state’s Safe Drinking Water Information System. In September, Teviston showed a negligible amount, an outlier that experts said could be skewed by the new well or the extreme drought.

Teviston’s marginalization dates back nearly a century, when Black workers arrived to work white-owned cotton farms. While the farmers had sought the Black workers, the workers were unwelcome in white towns, and they formed a tent city that became Teviston. Over the years the workforce became immigrant Mexican, another politically disadvantaged class, and white family farms were supplanted by corporations operating ever larger tracts of factory farms.      

Dorris Brooks, an African American woman who lives at the end of Teviston’s water line, said past efforts to improve well water have only resulted in temporary relief.

“You can see there’s actually sludge that comes out of the tap,” Brooks said.

Brooks, who moved to Teviston as an adult 43 years ago, questioned whether the settlement was just.

“That company got away with for messing up the water and the people’s lives,” Brooks said. “There’s sick people here.”

Stock Markets

Morgan Stanley: bear market rally to continue

Published

on

One of Wall Street’s best-known bears, Michael Wilson, thinks the S&P 500 will rise another 7% before turning down, so the bear market rally will continue for now, writes Market Watch.

After the Dow Jones, S&P 500 and Nasdaq Composite joined their strongest weekly gains since at least May last Friday, Wilson, who is chief strategist and head of U.S. equity markets at Morgan Stanley (NYSE:MS), told clients that there could be another 5% to 7% before the downward trajectory of U.S. stocks resumes during the latest bear market recovery.

Wilson has held a bearish view of the stock market for about 2 years and correctly predicted a sell-off this year.

Wilson explained in a research note sent out to clients on Monday that a pullback in the 38-50% drop in the stock market this year “would not seem like something unnatural, not consistent with the previous bear market rally.”

While growth concerns have triggered a sell-off in commodities and lowered inflation expectations, the fact that the U.S. economy is already slowing and heading toward recession means that any market rally is likely to be short-lived, and U.S. stocks are likely to eventually fall.

Wilson mentioned in the note that the bear market is not over yet, although it may appear otherwise in the next few weeks as the market takes the rate cut as a sign that the Fed can still manage a “soft landing” and prevent a meaningful revision to earnings forecasts.

U.S. stocks rose last week as investors now hope the slowing economy and falling commodity prices may inspire the Fed to raise interest rates less sharply. Federal funds futures, a derivative used by investors to bet on the pace of the Fed’s monetary policy changes, estimate with a high probability that the Fed will be forced to start cutting interest rates again as soon as next summer.

They also consider the lower peak in the federal funds rate: it will peak around 3.5% at the end of 2022 instead of 3.75% just a couple of weeks ago. Wilson also pointed out the drop in Treasury yields: the 10-year Treasury bond yield went from 3.230% to a low of 3.07% on Friday before rebonding again on Monday.

Wilson expects the S&P 500 index to fall to around 3,400 points if the U.S. Federal Reserve manages to get a “soft landing” for the economy — which Fed Chairman Jerome Powell said last week would be “a very difficult thing to do.”

Wilson expects that if the U.S. economy plunges into recession, the S&P 500 index will fall to around 3,000 points. In any case, Wilson believes that U.S. stocks are still highly valued because the risk premium — that is, the measure of compensation that investors receive for the extra risk of owning stocks instead of bonds — remains about 300 basis points higher than the 10-year Treasury bond yield, which is considered a “risk-free rate.” 



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Stock Markets

Easing chip shortages to help Volkswagen in H2 – CEO

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© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo

BERLIN (Reuters) – Volkswagen (ETR:VOWG_p) sees a strong second half of 2022 and expects progress in catching up with rival Tesla (NASDAQ:TSLA) as easing chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker’s CEO said on Tuesday.

“We are earning more than ever,” Chief Executive Herbert Diess said at a works meeting, adding Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.

This should allow the carmaker to narrow the Volkswagen-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.

“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That’s going to take strength out of him,” Diess said.

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Stock Markets

Reliance Chairman Mukesh Ambani steps down as director of telecom arm

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on


© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general meeting in Mumbai, India July 5, 2018. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – Reliance Industries Chairman Mukesh Ambani has stepped down as director of Reliance Jio Infocomm Ltd, the conglomerate’s telecom arm said on Tuesday.

Reliance Jio said https://refini.tv/3Nrs773 it has appointed Mukesh’s son and non-executive director Akash Ambani as the chairman of its board. Akash has been involved with the telecom unit since its launch in late 2016, where he started as a director.

India’s telecoms sector had been upended after the entry of Jio, which triggered a price war that forced some rivals out of the market and turned profits into losses.

Jio, which started out offering mobile teleservices, has been aggressively investing in services like internet broadband and forging ties with handset makers to launch low-cost smartphones and providing 5G services.

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Stock Markets

California farm town lurches from no water to polluted water

By Daniel Trotta

Published

on

6/6
California farm town lurches from no water to polluted water
© Reuters. Tiffany Copley, 40, looks at her garden that died last summer during the period when the water pump for the community went dry in Teviston, California, U.S., October 22, 2021. Picture taken on October 22, 2021. REUTERS/Stephanie Keith

2/6

By Daniel Trotta

TEVISTON, Calif. (Reuters) – The San Joaquin Valley farm town of Teviston has two wells. One went dry and the other is contaminated.

The one functioning well failed just at the start of summer, depriving the hot and dusty hamlet of running water for weeks. With temperatures routinely soaring above 90 degrees Fahrenheit (32 degrees Celsius), farm workers bathed with buckets after laboring in the nearby vineyards and almond orchards.

Even as officials restored a modicum of pressure with trucked-in water, and after the well was repaired, the hardships have endured. Teviston’s 400 to 700 people – figures fluctuate with the agricultural season – have received bottled drinking water since the well failed in June.

But for years, probably decades, the water coming from Teviston taps has been laced with the carcinogen 1,2,3-Trichloropropane, or 1,2,3-TCP, the legacy of pesticides.

The Western U.S. drought, the most severe in 125 years of record-keeping, is exacting a further toll on communities throughout the San Joaquin Valley, where people living on the edge of farmland gather many of the crops but little of the largesse from California’s $50 billion agricultural industry.

For Esperanza Guerrero, 35, a Mexican immigrant and homemaker whose husband works at a dairy farm, the poor water quality poses additional dangers for her 16-year-old daughter, who can drink only purified water because of a gastrointestinal ailment.

“It’s very stressful as a mother to know that if for any reason she should wash a piece of fruit (with tap water) and eat it, she’s going down,” Guerrero said while picking up bottled water from the community depot.

Teviston, devoid of any retail or commercial business, won a $3 million settlement in June from pesticide producers Dow Chemical Company and Shell (LON:) Oil Company and distributors that will pay for a water treatment plant.

Dow declined to comment on Teviston, but said there was “no merit” to allegations in similar lawsuits brought by other local jurisdictions in the San Joaquin Valley.

“The plaintiffs’ claims in these cases are based on a California water quality standard that went into effect in 2018, several decades after the product formulations in question were discontinued. To the extent TCP was present in past product formulations, it would have been at levels so low as to pose no environmental risk,” the company said in a statement.

Shell declined to comment on active litigation.

The settlement will help Teviston resolve the dilemma of having to choose between safe or affordable water, said Todd Robins, an attorney with San Francisco-based Robins Borghei LLP who has represented other towns like Teviston in similar lawsuits.

The arid, forbidding land of the San Joaquin Valley has been transformed into one of the most fertile plains in the world by farmers, politicians and engineers who changed the course of mighty rivers and brought water hundreds of miles to a valley so broad and flat that in most directions the fields meet sky.

The drought has made both surface and ground water scarce.

The U.S. Bureau of Reclamation, which operates canals moving surface water from Northern California further south, has cut allotments to farmers this year: first to a mere 5% of normal, then down to zero.

That increased demand on the aquifers. Growers who operate their own wells are lowering the water table for neighboring towns like Teviston that depend on well water.

Outside the valley, many environmentalists criticize growers. The people of Teviston don’t paint them as the enemy.

“We need the farms. Without the farms, we don’t have any work,” said Frank Galaviz, a director on the town council who has emerged as Teviston’s leading water advocate.

THE ENEMY BELOW

Historically, the farms have faced another nemesis besides drought.

Beneath the ground, tiny worms called nematodes infest roots. For decades, through the 1980s, growers injected their soil with the since-discontinued pesticides Telone, made by Dow, and D-D, made by Shell, according to Robins, who has pieced together the history of 1,2,3-TCP contamination through about 70 lawsuits against both companies.

By the 1990s health officials established that TCP was carcinogenic and would linger in the water table for a lifetime unless removed by filtration. California’s TCP problem is concentrated in the San Joaquin Valley, state data show.

Telone and D-D were essentially a byproduct of other chemical processes that would have been disposed of were it not found to be an effective pesticide, enabling the companies to offload the byproduct by selling it to farmers, Robins said.

“It’s a dirty secret,” Robins said, adding that Dow’s reformulated Telone II became more effective once TCP and other impurities were removed.

While Teviston awaits a treatment plant, its TCP levels remain above safe levels. In May, testing showed the TCP level was nearly three times the maximum acceptable level, and in March it was more than seven times the limit, according to the state’s Safe Drinking Water Information System. In September, Teviston showed a negligible amount, an outlier that experts said could be skewed by the new well or the extreme drought.

Teviston’s marginalization dates back nearly a century, when Black workers arrived to work white-owned cotton farms. While the farmers had sought the Black workers, the workers were unwelcome in white towns, and they formed a tent city that became Teviston. Over the years the workforce became immigrant Mexican, another politically disadvantaged class, and white family farms were supplanted by corporations operating ever larger tracts of factory farms.      

Dorris Brooks, an African American woman who lives at the end of Teviston’s water line, said past efforts to improve well water have only resulted in temporary relief.

“You can see there’s actually sludge that comes out of the tap,” Brooks said.

Brooks, who moved to Teviston as an adult 43 years ago, questioned whether the settlement was just.

“That company got away with for messing up the water and the people’s lives,” Brooks said. “There’s sick people here.”

Stock Markets

Morgan Stanley: bear market rally to continue

Published

on

One of Wall Street’s best-known bears, Michael Wilson, thinks the S&P 500 will rise another 7% before turning down, so the bear market rally will continue for now, writes Market Watch.

After the Dow Jones, S&P 500 and Nasdaq Composite joined their strongest weekly gains since at least May last Friday, Wilson, who is chief strategist and head of U.S. equity markets at Morgan Stanley (NYSE:MS), told clients that there could be another 5% to 7% before the downward trajectory of U.S. stocks resumes during the latest bear market recovery.

Wilson has held a bearish view of the stock market for about 2 years and correctly predicted a sell-off this year.

Wilson explained in a research note sent out to clients on Monday that a pullback in the 38-50% drop in the stock market this year “would not seem like something unnatural, not consistent with the previous bear market rally.”

While growth concerns have triggered a sell-off in commodities and lowered inflation expectations, the fact that the U.S. economy is already slowing and heading toward recession means that any market rally is likely to be short-lived, and U.S. stocks are likely to eventually fall.

Wilson mentioned in the note that the bear market is not over yet, although it may appear otherwise in the next few weeks as the market takes the rate cut as a sign that the Fed can still manage a “soft landing” and prevent a meaningful revision to earnings forecasts.

U.S. stocks rose last week as investors now hope the slowing economy and falling commodity prices may inspire the Fed to raise interest rates less sharply. Federal funds futures, a derivative used by investors to bet on the pace of the Fed’s monetary policy changes, estimate with a high probability that the Fed will be forced to start cutting interest rates again as soon as next summer.

They also consider the lower peak in the federal funds rate: it will peak around 3.5% at the end of 2022 instead of 3.75% just a couple of weeks ago. Wilson also pointed out the drop in Treasury yields: the 10-year Treasury bond yield went from 3.230% to a low of 3.07% on Friday before rebonding again on Monday.

Wilson expects the S&P 500 index to fall to around 3,400 points if the U.S. Federal Reserve manages to get a “soft landing” for the economy — which Fed Chairman Jerome Powell said last week would be “a very difficult thing to do.”

Wilson expects that if the U.S. economy plunges into recession, the S&P 500 index will fall to around 3,000 points. In any case, Wilson believes that U.S. stocks are still highly valued because the risk premium — that is, the measure of compensation that investors receive for the extra risk of owning stocks instead of bonds — remains about 300 basis points higher than the 10-year Treasury bond yield, which is considered a “risk-free rate.” 



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Stock Markets

Easing chip shortages to help Volkswagen in H2 – CEO

Published

on


© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo

BERLIN (Reuters) – Volkswagen (ETR:VOWG_p) sees a strong second half of 2022 and expects progress in catching up with rival Tesla (NASDAQ:TSLA) as easing chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker’s CEO said on Tuesday.

“We are earning more than ever,” Chief Executive Herbert Diess said at a works meeting, adding Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.

This should allow the carmaker to narrow the Volkswagen-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.

“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That’s going to take strength out of him,” Diess said.

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Stock Markets

Reliance Chairman Mukesh Ambani steps down as director of telecom arm

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on


© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general meeting in Mumbai, India July 5, 2018. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – Reliance Industries Chairman Mukesh Ambani has stepped down as director of Reliance Jio Infocomm Ltd, the conglomerate’s telecom arm said on Tuesday.

Reliance Jio said https://refini.tv/3Nrs773 it has appointed Mukesh’s son and non-executive director Akash Ambani as the chairman of its board. Akash has been involved with the telecom unit since its launch in late 2016, where he started as a director.

India’s telecoms sector had been upended after the entry of Jio, which triggered a price war that forced some rivals out of the market and turned profits into losses.

Jio, which started out offering mobile teleservices, has been aggressively investing in services like internet broadband and forging ties with handset makers to launch low-cost smartphones and providing 5G services.

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