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UK economy expands 0.6% in second quarter

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UK economy expands 0.6% in second quarter

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The UK economy grew 0.6 per cent in the second quarter, in only a marginal slowdown from the robust growth of the previous three months, providing some good news for the new Labour government.

The quarter-on-quarter change in the GDP figure from the Office for National Statistics on Thursday compared with 0.7 per cent growth in the first three months of the year and was in line with economists’ expectations.

Monthly GDP growth was zero in June following a 0.4 per cent expansion in May, the ONS said. The figure was in line with analysts’ expectations.

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Hailey Low, economist at the National Institute of Economic and Social Research, said the GDP figures “signal that growth remains on course, building on Q1’s strong performance”.

But she added: Persistent challenges such as low productivity growth, strained public finances and inadequate infrastructures have acted as barriers to achieving sustained growth.”

Prime Minister Sir Keir Starmer has placed growth at the centre of his economic agenda, promising to “take the brakes off Britain”.

Responding to the GDP data, chancellor Rachel Reeves said the government was “under no illusion as to the scale of the challenge we have inherited after more than a decade of low economic growth”.

Reeves argues that unless she can boost Britain’s long-term growth rate, the country will be trapped in a “doom loop” of high taxes and poor public services.

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But Jeremy Hunt, former Conservative chancellor, said: “Today’s figures are yet further proof that Labour have inherited a growing and resilient economy.”

“The chancellor’s attempt to blame her economic inheritance on her decision to raise taxes — something she had always planned — will not wash with the public.”

Sterling nudged higher following the ONS release. The pound climbed 0.2 per cent against the US dollar to $1.285. 

The yield on the interest rate-sensitive two-year gilt rose 0.03 percentage points to 3.58 per cent.

Ashley Webb, economist at consultancy Capital Economics, noted that the 0.6 per cent figure was marginally lower than the 0.7 per cent forecast by the Bank of England.

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“At the margin, this may give the bank a bit of reassurance that the recent strength of activity won’t prevent further falls in services inflation,” he added.

Separate ONS data published on Wednesday showed services inflation, a crucial gauge of domestic price pressures in the eyes of interest rate-setters, fell more than expected to 5.2 per cent in July from 5.7 per cent in June.

The UK economy entered a technical recession at the end of last year after being hit by high inflation and borrowing costs. However, it returned to growth this year, helped by stronger household spending as price pressures and mortgage rates declined.

In August, the BoE upgraded its GDP growth forecast for this year to 1.25 per cent from just 0.5 per cent owing to stronger-than-expected activity in the first half of the year.

It expects quarterly GDP growth to fall back to 0.4 per cent and 0.2 per cent in the third and fourth quarters, respectively.

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Suren Thiru, economics director at the ICAEW professional body, said: “This current pace of economic growth is unlikely to be maintained in the second half of the year as weaker wage growth, high interest rates and persistent supply constraints limits output.”

Services grew 0.8 per cent in the three months to June, with widespread offsetting falls of 0.1 per cent in the production and construction sectors.

GDP per head, which matters for living standards, posted the second consecutive quarterly expansion, but it remains below the level of the same quarter last year following seven quarters of contraction.

In the second quarter, there were increases in gross capital formation, government consumption and household spending, partially offset by falls in net trade.

Bar chart of Contribution to GDP growth, % points showing UK growth was helped by increases in gross capital formation, government consumption and household spending

In June growth was flat, driven by a fall in services owing to a weak month for health, retailing and wholesaling. The health sector was affected by the junior doctors’ strike, while wet weather hit sales.

The UK’s GDP quarter-on-quarter figure for the three months to June compares with a 0.3 per cent expansion in the Eurozone and 0.7 per cent growth in the US.

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Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

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Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

For decades, immigrants who have followed the rules and have not broken the law have had hopes of earning a green card, a document that allows them to live legally in the United States and gain a path to citizenship.

But under new guidance issued by the Trump administration, immigrants can now be denied a green card for expressing political opinions, such as participating in pro-Palestinian campus protests, posting criticism of Israel on social media and desecrating the American flag, according to internal Department of Homeland Security training materials reviewed by The New York Times.

The documents, which have not been previously reported, show how expansively the Trump administration is carrying out a directive from last August to vet green card applicants for “anti-American” and “antisemitic” views.

The administration includes criticism of Israel as a potentially disqualifying factor, with the training materials citing as an example of questionable speech a social media post that declares, “Stop Israeli Terror in Palestine” and shows the Israeli flag crossed out.

The materials were distributed last month to immigration officers at U.S. Citizenship and Immigration Services, which is part of the Department of Homeland Security and handles applications for green cards and other forms of legal status.

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They reflect how U.S.C.I.S. — long considered the gateway agency for legal migration — has rapidly transformed under President Trump into another cog in his administration’s deportation machine. The agency has worked to strip naturalized Americans of their citizenship and has hired armed federal agents to investigate immigration crimes.

The administration is also granting permanent legal residency to far fewer applicants. Green card approvals have fallen by more than half in recent months, according to a Times analysis of agency data.

“There is no room in America for aliens who espouse anti-American ideologies or support terrorist organizations,” Joseph Edlow, the agency’s director, told Congress in February.

Critics of Mr. Trump’s approach say the administration is seeking to restrict legitimate political speech, and has conflated opposition to Israeli government policies with antisemitism.

Basing green card decisions on “ideological screenings is fundamentally un-American and should have no place in a country built on the promise of free expression,” said Amanda Baran, a senior agency official under President Joseph R. Biden Jr.

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Administration officials said they were defending American values.

“If you hate America, you have no business demanding to live in America,” said Zach Kahler, a spokesman for U.S.C.I.S.

Abigail Jackson, a White House spokeswoman, said the administration’s policies had “nothing to do with free speech” and were meant to protect “American institutions, the safety of citizens, national security and the freedoms of the United States.”

The administration has moved aggressively against immigrants for expressing political views that officials have deemed anti-American, making ideology a central part of its immigration vetting process. Secretary of State Marco Rubio has revoked the visas of pro-Palestinian student activists, including one who wrote a column criticizing her university’s response to pro-Palestinian demands.

The Department of Homeland Security has proposed reviewing the social media histories of tourists seeking to visit the United States.

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Immigration officers have significant discretion in deciding whether to grant foreigners long-term permanent residence. They have long considered a variety of factors, including criminal records, national security threats, family ties to the United States and employment histories.

Ideology has also traditionally been one of those factors. In some cases, U.S. law forbids officers from granting green cards to people who have belonged to a Communist or other “totalitarian” political party, have promoted anarchy or have called for the overthrow of the U.S. government by “force or violence or other unconstitutional means.”

But in the past, immigration officers have focused on statements that could incite or encourage violence, given concerns about infringing on constitutionally protected speech, former U.S.C.I.S. officials said.

The new training materials reviewed by The Times guide immigration officers through the factors they should consider when ruling on green card applications. They discourage officers from granting green cards to people with a history of “endorsing, promoting or supporting anti-American views” or “antisemitic terrorism, ideologies or groups.”

Immigration officers have been told to weigh those factors as “overwhelmingly negative.”

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The documents list support for “subversive” ideologies as among other factors that could lead to an application being rejected. As an example, the materials point to someone “holding a sign advocating overthrow of the U.S. government.”

In addition, the guidance describes the desecration of the American flag as a negative factor, citing Mr. Trump’s executive order last year directing the Justice Department to prosecute protesters who burn the flag. The Supreme Court has ruled that flag burning is a form of political expression protected by the First Amendment.

Immigration officers have also been told to scrutinize applicants who encourage antisemitism “through rhetorical or physical actions.” They were instructed to “focus particularly on aliens who engaged in on-campus anti-American and antisemitic activities” after the Hamas attacks against Israel in 2023, the documents show.

Further examples in the documents of conduct characterized as antisemitic include a social media post showing a map of Israel with the nation’s name crossed out and replaced with the word “Palestine.” Another illustrative post suggests that Israelis should “taste what people in Gaza are tasting.”

Immigration officers must elevate all cases involving “potential anti-American and/or antisemitic conduct or ideology” to their managers and to the agency’s general counsel’s office for review, according to the documents.

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In recent months, the agency has also changed the way it refers to the employees who adjudicate green card applications, long known as “immigration services officers.” In job postings, it now calls them “homeland defenders.”

“Protect your homeland and defend your culture,” one posting says.

Steven Rich contributed reporting.

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America’s bid for energy supremacy is being forged in war

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America’s bid for energy supremacy is being forged in war

Additional work by Jana Tauschinski

Oil and gas tanker location and destination data are from Kpler. The map shows the latest position for vessels with an active AIS signal on April 19–20, filtered by minimum capacity thresholds: crude tankers of at least 50,000 deadweight tonnage (DWT); oil product tankers of at least 55,000 DWT; oil/chemical tankers of at least 40,000 DWT; LNG carriers of at least 150,000 cubic metres; and LPG carriers of at least 50,000 cubic metres. Net fossil fuel import data by country are based on Ember analysis of the IEA World Energy Balances 2023.

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Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

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Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

A 26-year-old man is facing two counts of first-degree murder in the deaths of two University of South Florida doctoral students who went missing last week, local authorities said Saturday. 

The Hillsborough County Sheriff’s Office in Florida said that evidence presented to the state attorney’s office resulted in the charges against Hisham Abugharbieh, the roommate of Zamil Limon, one of the doctoral students. 

Abugharbieh is accused of premediated murder with a weapon. He was arrested on Friday, the same day Limon was found dead. 

The family of Nahida Bristy, the other doctoral student, told CBS News that police said she is also likely dead. That is based on the volume of blood discovered at Abugharbieh’s residence, which he shared with Limon.

“Police told us she is no longer with us,” Bristy’s brother, Zahid Prato, said early Saturday.

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The family was told her body may never be found and police believe she may have been dismembered, according to Prato. 

CBS News has reached out to police for more information.

Authorities said in a statement Saturday they were still searching for Bristy.

Limon’s remains were found on the Howard Franklin Bridge in Tampa Friday morning, Chief Deputy Joseph Maurer with the Hillsborough County Sheriff’s Office said. His cause of death was pending autopsy results.

Deputies with the sheriff’s office took Abugharbieh into custody on Friday after responding to a domestic violence call at a home in the Lake Forest Community, a neighborhood near USF’s Tampa campus, officials said. He also faces charges of domestic violence and evidence tampering, as well as a charge of failing to report a death to law enforcement.

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Limon and Bristy, both 27, had last been seen in the Tampa area on April 16. 

Limon was studying the use of AI in environmental science and was set to present his doctoral thesis this week, his family said. Bristy is studying chemical engineering. 

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