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Growing Method, Freshness, Aroma and Batch Testing

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Growing Method, Freshness, Aroma and Batch Testing

Growing method, harvest handling, storage, aroma, moisture, trimming and batch testing can all influence how a flower looks, smells and holds up over time.

For customers comparing cbd flower online, the most useful approach is to look beyond a strain name or headline CBD percentage and assess the product as a whole. A well-presented flower should come with enough information to understand where it came from, how it was grown and what was found when the batch was tested.

Start With the Growing Method

One of the first things worth checking is whether the flower was grown indoors, in a greenhouse or outdoors under natural sunlight.

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Indoor-grown CBD flower

Indoor cultivation gives growers a high level of control over variables such as temperature, humidity, lighting and airflow. This can help produce consistent flowers with good structure and a carefully managed finish.

Indoor cultivation is also usually more resource-intensive. Lighting, climate control and ventilation all add to production costs, which is one reason indoor flower can command a higher retail price.

That does not automatically mean indoor flower is always better. The individual grow, genetics, harvest and curing process still matter.

Greenhouse-grown CBD flower

Greenhouse cultivation sits somewhere between indoor and outdoor growing.

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Plants benefit from natural sunlight while still being protected by a controlled growing structure. Depending on the facility, growers may also supplement lighting, temperature and airflow.

Good greenhouse flower can offer an excellent balance between appearance, aroma and value. It is often worth considering for customers who want a high-quality product without necessarily paying the premium associated with fully indoor cultivation.

Sun-grown CBD flower

Sun-grown flower is cultivated outdoors using natural sunlight.

Outdoor growing can produce excellent results when the genetics are well suited to the climate and the crop is managed properly. Sun-grown flower may have a different structure and appearance from indoor flower, but that should not automatically be interpreted as lower quality.

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The important point is that growing method tells you how the plant was cultivated. It does not, by itself, tell you whether the finished flower is good.

Freshness Matters More Than Many Buyers Realise

Even high-quality flower can deteriorate if it is stored poorly or kept for too long.

Fresh CBD flower should generally retain its natural aroma and structure without feeling excessively dry or brittle.

Flower that has lost too much moisture can become crumbly, while overly damp material can create storage problems of its own. Good storage aims to protect the product from unnecessary exposure to heat, light, air and excessive humidity.

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Packaging also matters.

A product stored in suitable airtight packaging is better protected than flower left exposed to air for long periods. Once opened, customers should also avoid leaving flower sitting in direct sunlight or in hot environments.

When buying online, useful signs of good stock management include:

  • clear product information
  • regularly updated availability
  • identifiable strains or batches
  • appropriate packaging
  • access to current laboratory information

A retailer that continually rotates stock and updates its catalogue is generally in a better position to supply fresher product than one carrying old inventory indefinitely.

Aroma Can Tell You Something, But Not Everything

Aroma is one of the first things people notice when opening a bag of flower.

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Cannabis and hemp plants naturally produce aromatic compounds known as terpenes. Different genetics can produce noticeably different profiles, ranging from citrus and fruit through to pine, earth, fuel, herbs and spice.

A strong and distinctive aroma can indicate that the flower has retained more of its volatile aromatic compounds during drying and storage.

However, aroma should not be used as the sole measure of quality.

A subtle-smelling flower is not automatically poor, and an extremely strong smell does not prove that the underlying product is superior.

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Customers should consider aroma alongside other factors, including:

  • genetics
  • growing method
  • visual condition
  • freshness
  • batch information
  • laboratory testing

It is also worth being cautious when a product’s smell seems unusually intense or inconsistent with the listed strain. Transparency about ingredients and processing is important.

Look at Flower Structure and Trim

Appearance is useful, although it should not be treated like a beauty contest.

Flower can naturally vary depending on genetics and how it was grown. Some strains produce dense compact buds, while others have a lighter or more open structure.

Indoor flowers often appear tighter and more uniform, whereas outdoor varieties can look slightly more natural or irregular.

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Trim quality is another factor.

A carefully trimmed flower should generally have excessive leaf material removed while leaving the bud intact. Poorly handled flower may contain unnecessary stalk or leaf matter.

At the same time, an extremely polished appearance should not be mistaken for proof of quality. Some of the most important characteristics of a flower cannot be seen in a photograph.

That is where product information and testing become important.

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Do Not Judge Quality From CBD Percentage Alone

One of the easiest mistakes to make is choosing flower purely because one product advertises a higher CBD percentage.

Cannabinoid concentration is useful information, but it is not a complete quality measurement.

A higher number does not necessarily mean:

  • fresher flower
  • better genetics
  • stronger aroma
  • superior cultivation
  • better storage
  • more thorough testing

Two flowers with similar CBD percentages can look, smell and feel completely different because of genetics, terpene profiles and cultivation methods.

Percentages should therefore be treated as one part of the product specification rather than a ranking system.

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Batch Testing Is One of the Most Important Checks

Laboratory testing is where customers can move beyond marketing descriptions and look at measurable information about a batch.

A useful laboratory report should clearly identify the sample that was tested.

Customers should look for information such as:

  • sample or batch identification
  • laboratory name
  • date received
  • date tested
  • cannabinoid results
  • units used in the report
  • testing methodology where provided

One of the biggest mistakes customers make is seeing a laboratory report and assuming that every possible test has been carried out.

That is not necessarily the case.

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A cannabinoid analysis may tell you about cannabinoids, but it does not automatically mean the sample has also been screened for pesticides, heavy metals, microbiological contamination or other substances.

Always check what the report actually covers.

Make Sure the Laboratory Report Matches the Product

A laboratory report is most useful when there is a clear connection between the report and the product being sold.

That connection may be established through a batch number, sample reference, strain name or other identifying information.

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If the connection is unclear, customers should ask the retailer which report relates to the current batch.

This becomes increasingly important when products are restocked regularly. A report from an older batch may not accurately describe a newer harvest.

Good retailers should be able to explain which laboratory document relates to the flower currently being sold.

Origin and Genetics Are Worth Checking

Knowing where a flower was grown can give customers additional context.

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The United States, Switzerland and other European countries all have established hemp cultivation industries, but quality varies within every country.

The name of the country alone does not guarantee anything.

It is more useful when the retailer provides details such as:

  • country of cultivation
  • indoor, greenhouse or sun-grown method
  • breeder or genetics where known
  • strain lineage
  • current batch information

Genetics can also explain why two products look and smell very different even when their cannabinoid results appear similar.

Compare Like With Like

Price comparison should also be done carefully.

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A 3.5g pack cannot be directly compared with a 14g pack simply by looking at the total price.

Compare the same weight, and then consider the other information available about each product.

A cheaper flower can still represent excellent value, while a more expensive flower should ideally offer a clear reason for the higher price, whether that is cultivation method, genetics, smaller-scale production or another identifiable characteristic.

Quality Is a Combination of Factors

There is no single number or visual feature that defines good CBD flower.

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The most useful assessment combines several factors:

Growing method tells you how the plant was cultivated.

Freshness tells you how well the product has been handled and stored.

Aroma provides clues about genetics and terpene preservation.

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Appearance and trim help assess how the flower was processed.

Batch testing provides measurable information about the product.

Origin and genetics provide context about what you are buying.

The strongest products are usually those where these factors are supported by clear information rather than marketing claims alone.

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Consumers increasingly want to know more than a strain name and CBD percentage. They want to understand how a flower was grown, where it came from, what the batch contains and whether the information being provided can actually be checked.

That level of transparency makes it much easier to compare products properly and choose based on the characteristics that matter most to the individual buyer.

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Australian shares advance as banks, miners rally

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Australia’s share market has started the week higher after banks rallied in anticipation of US earnings season, while rebounding metals prices supported mining stocks.

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France Steps Up Scrutiny of Muslim Brotherhood Influence in Universities and Schools

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Trump has the potential to cause jitters in the NATO summit

The resolution adopted by the European Parliament last week, calling for a coordinated response to the influence of Muslim Brotherhood networks, was not the first warning of its kind in Europe.

Several of the concerns raised by MEPs, chiefly that extremist groups use social media and educational settings to recruit young people, had already been flagged in a French security report. That report warned of attempts by political Islam, and specifically the Muslim Brotherhood, to gain a foothold in schools and universities.

The French approach

France’s effort to counter the Brotherhood’s presence in state institutions is the most recent in Europe, following the publication of a government report in May 2025. Nearly 18 months on, however, French academics and observers are still asking what has actually been done to curb the activities of political Islam.

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In May, Aymeric Durox, a senator for the far-right National Rally (RN), raised what he called the “infiltration” of universities by the Brotherhood, particularly of the regional student services centres (Crous), which manage student housing and welfare across France’s university towns, according to the French Senate’s website.

Mr Durox sought to draw the attention of the minister for higher education, research and space to the issue. He cited the interior ministry report, which described the Muslim Students of France (EMF) as the student wing of the Union of Islamic Organisations of France (UOIF), now renamed Muslims of France and regarded by the report as the French branch of the Muslim Brotherhood.

The senator warned that EMF had supplied the movement with “many of its cadres at European level”. He pointed to its founder, Fouad Alaoui, whom the interior ministry report described as a key figure in the movement’s financial affairs in Europe. He also named more recent figures, including Hania Chalal, president of the European forum of Muslim youth and student organisations, and Hiba Latreche, president of the Forum of European Muslim Youth and Student Organisations (Femyso).

On Thursday, the European Parliament voted in favour of a resolution calling for a unified European strategy on Muslim Brotherhood networks and their influence. The resolution asks EU institutions to assess whether entities and individuals linked to the Brotherhood, starting with Femyso, should be added to the EU’s list of terrorist organisations.

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In January, France’s National Assembly adopted a resolution calling for the Brotherhood and its leaders to be placed on that list, putting the question directly before European institutions.

Against that backdrop, Mr Durox asked how the government intended to tackle the presence of Brotherhood-linked associations in universities. He also asked what guarantees it could give taxpayers that public money would not fund such groups, and that they would not steer university boards towards adopting Islamist demands.

Setback for Lille school

In September, France’s consultative committee on private education issued an unfavourable opinion on appeals lodged by the Averroès Muslim school in Lille. The final decision now rests with the prefect of the Nord department, and for now the school remains outside the state contract system.

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According to the Journal du Dimanche, the school, which has been in dispute with the state for three years, suffered a fresh blow when the committee largely rejected its requests.

The dispute dates back to December 2023, when the Nord prefecture ended the partnership contract that had linked Averroès to the state since 2008. That decision followed a series of inspections that raised questions about the curriculum, governance and funding of the school.

The paper reports that the state’s case against the school still contains serious allegations. Officials place Averroès within the Muslim Brotherhood’s sphere and argue that it operates a system at odds with the values of the French Republic. A 2023 inspection raised questions about an Islamic ethics course taught to pupils in their first year of upper secondary school. The authorities say some of the books used promoted ideas contrary to several republican principles, notably on gender equality, the place of religious law and relations with non-Muslims.

Inspectors also cited the attitudes of some teachers and links between people close to the school and Brotherhood-affiliated bodies. Their findings included pupils’ work containing conspiracy theories, a distorted version of the national motto, a lack of resources on secularism and other religions, and numerous works by Hassan Iquioussen, an imam described as close to the Brotherhood.

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The school’s funding is also under scrutiny, the Journal du Dimanche says. French authorities have paid particular attention to its links with Qatar Charity, after a video emerged showing a teacher thanking the organisation for financial help in buying the school’s buildings. The legal battle continues.

Foreign backing

The Averroès case echoes warnings in a 2025 interior ministry document about the risk of “municipal Islamism”, which explicitly raised the question of the Brotherhood’s influence in France.

Le Monde reports that experts on political Islam consider this risk to be real, describing an ideologically diverse but highly active movement whose impact on public life and local politics is growing. The paper also notes the Brotherhood’s decline in several Middle Eastern countries, with the exception of Turkey under President Recep Tayyip Erdogan. The French report describes Turkey as having become the Brotherhood’s regional hub in the Middle East, where it can draw on state resources, particularly in support of its strategy of expansion into Europe.

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The 2025 report by France’s security and intelligence services also spoke openly of “Turkish Muslim Brothers” who are very active in Europe, including France, though they have struggled to extend their influence beyond Turkish-speaking communities. It noted that the Brotherhood’s presence in Europe, particularly in Germany, Austria and Switzerland, dates back to the 1950s and 1960s.

The report concludes that the movement has found more receptive ground in countries that recognise or encourage identities based on religious or cultural community, such as the UK and Belgium, and in those that recognise religions and sometimes fund them through optional taxes, such as Germany.

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Beta Technologies CEO Kyle Clark sells $612,234 in shares

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Beta Technologies CEO Kyle Clark sells $612,234 in shares

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Politics And The Markets 10/11/26

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Politics And The Markets 10/11/26

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PwC: Supply-Chain Diversification, AI and Energy Transition Open New Growth Paths for Thailand

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Local Influences and Return Chasing: Entering a New Era in Emerging Equity Markets

A PwC Thailand report identifies digital infrastructure, electronics, automotive manufacturing, and food processing as sectors poised to attract new foreign direct investment as global supply chains restructure amid AI adoption and clean energy transitions. Thailand recorded $86 billion in gross FDI inflows in 2025, with China, Singapore, and the EU as leading sources, ahead of the 2026 IMF-World Bank meetings in Bangkok.

The report highlights four pillars: automotive manufacturing (with EVs comprising 53% of new sales), logistics via free-trade agreements, tourism and healthcare services, and agricultural exports. Recent projects from Google, Western Digital, and BYD illustrate investment momentum. However, PwC cautions that long-term benefits depend on execution—developing infrastructure, workforce skills, and energy capacity to support sustained growth.

Thailand is entering a new phase of investment as global companies restructure supply chains, adopt artificial intelligence and accelerate the transition towards cleaner energy, according to a new report from PwC Thailand.

The report, Thailand Investment Outlook: Hope, resilience, and growth, identifies digital infrastructure, electronics, automotive manufacturing and food processing as sectors likely to attract a new wave of foreign direct investment.

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The shift reflects a broader effort by companies to build supply chains that offer greater resilience and access to regional markets. PwC said Thailand’s position as a gateway to ASEAN gives it an opportunity to benefit from that restructuring, provided the country can improve its infrastructure, workforce and regulatory environment.

Thailand recorded gross FDI inflow transactions of $86 billion, equivalent to approximately 2.9 trillion baht, in 2025, according to Bank of Thailand data cited by PwC. China, Singapore and the European Union were among the leading sources of investment.

The report was released ahead of the 2026 Annual Meetings of the International Monetary Fund and World Bank Group in Bangkok, where Thailand plans to promote its investment opportunities to international policymakers, companies and financial institutions.

Four sectors anchor the outlook

PwC said Thailand’s investment appeal does not depend on a single industry. Its advantages combine a domestic market of 71.7 million people, established manufacturing capacity, regional logistics, tourism, healthcare and food production.

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The automotive industry remains one of the country’s strongest platforms. Thailand produced approximately 1.5 million light vehicles in 2025, while electric vehicles accounted for 53% of new-vehicle sales during the first half of 2026.

The transition towards electric vehicles could attract investment in batteries, power electronics, components and related services. Thailand’s existing supplier network gives it a foundation for that expansion, although competition from Indonesia, Malaysia and Vietnam is increasing.

Logistics is another central pillar. Thailand is expanding rail and port capacity and benefits from 17 free-trade agreements, 15 of which are currently in effect. Those links could help companies use the country as a production and distribution base for ASEAN markets.

Tourism and wellness provide a broader services opportunity. Thailand attracted around 33 million international visitors in 2025 and receives approximately three million foreign patients annually. PwC said the sector is developing beyond traditional tourism into healthcare, wellness, medical services and long-term living.

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Agriculture and food processing complete the four-sector outlook. Thailand ranks among the world’s top agricultural exporters and is seeking to move further into higher-value food products, branded exports and advanced processing.

Investment momentum continues

The report highlighted several recent projects as examples of Thailand’s growing investment pipeline.

Google is planning a Bangkok Cloud Region valued at approximately $1 billion. Western Digital is expanding its manufacturing capacity through a project worth around $693 million, while BYD has committed approximately $490 million to its first wholly owned passenger-vehicle production base in Southeast Asia.

These investments reflect demand for cloud infrastructure, electronics, advanced manufacturing and electric vehicles. They also show how global companies are reorganising production and technology networks across Asia.

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PwC said Thailand’s position in ASEAN gives investors access to a regional market of around 700 million people and a combined economy valued at approximately $4.2 trillion. Annual growth across the bloc is expected to average between 4% and 5%, creating long-term demand for infrastructure, consumer goods and business services.

However, attracting projects will be only the first stage. Their wider economic impact will depend on whether local suppliers, workers and research institutions become part of the investment cycle.

Execution remains critical

Thailand has introduced several measures intended to strengthen its investment environment, including Board of Investment incentives, Eastern Economic Corridor programmes and long-term visa arrangements.

The government is also pursuing regulatory modernisation, including possible reforms to the Foreign Business Act. Clearer rules and faster approvals could make it easier for companies to establish operations and scale their activities in Thailand.

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PwC said the next stage will require the country to connect investment with infrastructure, talent and domestic capabilities.

That challenge is particularly important in artificial intelligence and advanced electronics. Thailand will need engineers, technicians, data specialists and managers with the skills required to operate and develop new technologies. It will also need reliable electricity, digital networks and research capacity.

The same principle applies to the energy transition. New industrial and digital projects will require sufficient power and access to cleaner energy. Without coordinated investment in the electricity system, Thailand could attract large facilities that increase pressure on the grid and raise operating costs.

“Thailand’s investment story is entering a new phase,” said Phuwin Norchoovech, Territory Execution Leader and Deals Partner at PwC Thailand. The executive added:

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“Its advantage lies not in a single sector, but in the combination of market scale, industrial depth and resilience that investors increasingly seek.”

PwC said Thailand could channel global changes in supply chains, AI and energy into sustainable long-term value if it connects those trends with the capabilities needed to support them.

The immediate investment outlook is positive, but the next stage will be measured by implementation. Thailand has the opportunity to attract new capital into strategic industries. The larger question is whether that capital will deepen the domestic economy, raise productivity and leave the country better prepared for the disruptions shaping global business.

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Anthropic’s Claude AI files false murder tip on Philly police site

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Senior Anthropic official admits AI extinction risk is greater than 10 percent

An artificial intelligence (AI) model developed by Anthropic submitted a false tip about an unsolved murder through a Philadelphia police website during an automated test.

The Philadelphia Police Department said Anthropic notified authorities on Oct. 7 about the incident and explained that the submission resulted from an automated testing process.

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“The tip was flagged as spam and was never forwarded to the Real-Time Crime Center for investigative vetting or dissemination,” police said.

The incident comes as other reports have emerged of AI agents hacking into commercial and government systems.

SOUTH KOREAN MEGACHURCHES INVESTIGATE SUSPECTED CYBERATTACKS AFFECTING HUNDREDS OF THOUSANDS

Claude Anthropic's AI logo

According to police, the false tip was submitted through an unsolved murders website. (Davide Bonaldo/SOPA Images/LightRocket via Getty Images, File / Getty Images)

According to police, the false tip was submitted through PhillyUnsolvedMurders.com, a website dedicated to unsolved homicides. The tip, dated July 18, 2026, appeared to have come from someone who might have information about an unsolved murder.

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Police said there was no evidence that the AI model gained unauthorized access to department systems or compromised police data.

In a report released Friday, Anthropic said its Claude Haiku 4.5 model had been tasked with completing activities on randomly selected webpages and ultimately landed on the homicide tip website.

Although Claude was instructed not to log in, create accounts, enter personal data, make purchases or “submit anything destructive,” its instructions did not explicitly prohibit it from submitting online forms, the company said.

OPENAI’S SAM ALTMAN SAYS AI BENEFITS JUSTIFY ACCEPTING SOME RISKS

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Smartphone AI applications

The incident was included in Anthropic’s report examining instances in which its AI models interacted with actual websites in unintended ways. (Samuel Boivin/NurPhoto via Getty Images, File / Getty Images)

According to Anthropic, Claude filled out the form, writing: “I may have information regarding this case. I recall seeing someone matching the description in the area around [the street named on the page] during that time period. Please contact me if this information is relevant.”

Anthropic noted that the website did not contain a description of the perpetrator, despite the model’s claim that it had seen someone matching one. The model also left the name and contact fields blank before submitting the tip.

The incident was included in Anthropic’s report examining instances in which its AI models interacted with real websites or systems in unintended ways.

Anthropic Co-founder and CEO Dario Amodei

Anthropic is led by co-founder and CEO Dario Amodei. (Finn Gomez/Getty Images, File / Getty Images)

Following the episode, Anthropic said it strengthened restrictions on its models’ internet access during testing, modified certain evaluations to prevent interactions with live websites and developed additional monitoring tools.

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FOX Business has reached out to Anthropic for comment.

Reuters contributed to this report.

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De Ceglie departs as Perth Bears CEO

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De Ceglie departs as Perth Bears CEO

Anthony De Ceglie has stepped down as chief executive of the Perth Bears, effective immediately.

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Crucial Henderson infrastructure planning neglected, Defence admits

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Crucial Henderson infrastructure planning neglected, Defence admits

Insufficient attention has been paid to planning the housing, transport and other infrastructure needed to support the future Henderson Defence Precinct, a senior Defence Department official has admitted.

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Oil Jumps 5% to $105 a Barrel as Iran Fears and Hurricane Threat Rattle Markets

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TITLE: Oil Jumps 5% to $105 a Barrel as Iran Fears and Hurricane Threat Rattle Markets
KEYWORD: oil prices
DESCRIPTION: Oil prices surged 5% to $105 a barrel as Middle East tensions and a Gulf hurricane spooked markets, triggering a global bond sell-off.

Oil prices surged 5% on Thursday to $105.30 a barrel, as fears of a fresh round of US strikes on Iran collided with a hurricane bearing down on Gulf of Mexico production, sending shockwaves through global bond and stock markets.

Brent crude, the international benchmark, climbed sharply after reports emerged that the White House had asked the Pentagon to prepare options for strikes against Iran ahead of next month’s US midterm elections. The report, first published by the Atlantic and citing unnamed administration officials, said the scale and targets of any action were still under debate, but raised the prospect that a “limited operation” now could be followed by something larger once voters have gone to the polls.

The news lands amid an already fraught eighth month of the US-Israeli war against Tehran, during which attacks on tankers passing through the strait of Hormuz have reached their highest intensity of the conflict. The most recent came on Wednesday, when a tanker was struck by projectiles off the north coast of Qatar, causing casualties, according to United Kingdom Maritime Trade Operations. Traffic through the critical waterway has been cut as a result, deepening concerns about how much crude can reliably reach global markets.

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Hurricane adds to oil prices squeeze

Compounding the geopolitical jitters, Tropical Storm Isaias strengthened into the first hurricane of the Atlantic season, forcing producers to pull back output in the Gulf of Mexico. Shell and Chevron both said they were shutting down production as the storm closed in, with landfall expected Friday or Saturday. The combination of a shrinking Middle East supply and curtailed American output has left traders bracing for tighter markets just as winter demand looms.

Shipping costs are already climbing in response. Danish group Maersk said on Thursday it was raising its emergency fuel surcharge across all export collections and import deliveries, a sign that higher oil prices are starting to filter through global supply chains and, eventually, consumer prices.

Bond markets feel the strain

The jump in oil prices has reignited fears that inflation, only recently brought under control in many economies, could flare up again — and that central banks may be forced to keep interest rates higher for longer as a result. That anxiety showed up immediately in government bond markets, where a sell-off that had already been under way intensified.

In the UK, the yield on the 10-year government bond rose six basis points to 5.515%, its highest level since July 2007. The 30-year yield, Britain’s benchmark for long-term borrowing costs, climbed to 6.0117%, having briefly touched 6.036% the previous day — a level not seen since January 1998. The rising cost of government debt adds further pressure on Chancellor John Healey as he finalises his first budget, due to be delivered on 28 October.

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The pain was not confined to Britain. France, already under scrutiny over its mounting debt and spending, saw its 10-year yield rise to 4.931%, just shy of the 24-year high of 4.994% hit the previous week. Germany’s 10-year yield, the reference point for eurozone borrowing, ticked up to 3.504%, while the US 10-year Treasury yield — widely regarded as the benchmark for high-quality government debt — rose to 5.331%.

Stock markets slide worldwide

Equity markets reacted just as swiftly to the rise in oil prices and the prospect of renewed Middle East conflict. Japan’s Nikkei index fell 1.4%, while South Korea’s Kospi dropped a sharper 2.6%. In Europe, the Stoxx Europe 600, which tracks the continent’s largest listed companies, slipped 0.9%, and London’s FTSE 100 eased 0.4% in early trading.

Taken together, the moves across oil, bonds and equities point to a market on edge: investors are weighing not just the immediate risk of supply disruption, but the possibility that a limited strike on Iran could escalate into something far more serious once the political calculus shifts after the midterms. For now, with tankers under attack in the Strait of Hormuz and a hurricane bearing down on US production, the path of oil prices looks set to remain the single biggest swing factor for markets in the weeks ahead.

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US stocks: S&P 500, Nasdaq end lower as crude prices jump, chip stocks weigh

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US stocks: S&P 500, Nasdaq end lower as crude prices jump, chip stocks weigh
US stocks dipped on Thursday as crude prices surged on a spike in Middle East tensions and a cut in US output that fed inflation and rate-hike fears, while semiconductor stocks slumped.

According to preliminary data, the S&P 500 lost 36.07 points, or 0.46%, to end at 7,765.70 points, while the Nasdaq Composite lost 341.59 points, or 1.24%, to 27,197.10. The Dow Jones Industrial Average rose 45.68 points, or 0.09%, to 51,225.48.

Of the major US stock indexes, the Nasdaq closed with the steepest percentage loss, two days after the tech-heavy index reached a record closing high.

Chipmakers, which have soared over 80% so far this year, were clear underperformers on the day following a report from the Financial Times that said OpenAI‘s annualized revenues were $20 billion less than the company previously signaled.

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“The market’s going sideways in anticipation of third-quarter earnings season, which begins next week, and then there’s the ongoing conflict in Iran that’s pushing oil prices higher,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota. “What’s equally telling is that year-to-date, the path of least resistance for equities has been up.”


Oil prices jumped on supply concerns after a spate of attacks on shipping in the Strait of Hormuz, combined with a cut in US output due to hurricane activity.
Front-month WTI and Brent settled up 3.6% and 4.1%, respectively.Tight global crude supplies during the Iran war have sent US crude soaring more than 60% so far this year, stoking inflation pressures. In response to those pressures, the US Federal Reserve hiked interest rates in September for the first time since July 2023.

During Thursday’s session, benchmark US Treasury yields inched higher, hovering near multi-year highs, while yields on 2-year notes, which tend to reflect Fed rate expectations, moved up more decisively.

Financial markets currently expect the central bank to leave rates unchanged this month, while the probability of a December hike is nearly 70%, according to CME’s FedWatch tool.

That mirrors the expected rate hike path of the European Central Bank, and was affirmed by Fed Governor Christopher Waller, who said additional rate hikes will probably be necessary, but the timing of those hikes is “flexible.”

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Memory-chip giant Samsung Electronics’ record quarterly profit forecast failed to lift sentiment, with its shares closing lower in South Korea.

On Wednesday, the Wall Street Journal reported that Broadcom is lining up $50 billion in financing for OpenAI, with Oracle also seeking an unspecified sum, spurring fears that massive debt issuance by technology companies could intensify the competition for capital. Both Broadcom and Oracle ended the session lower.

PepsiCo shares gained after the beverage company said it would pursue additional spending cuts while lowering its annual core profit forecast.

Starbucks dipped following reports that the coffee chain was exploring a purchase of Chipotle Mexican Grill , whose shares jumped on the news.

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Palantir climbed after Goldman Sachs upgraded its rating on the data analytics software provider to “buy” from “neutral”.

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