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A $46 trillion wipeout in stocks and bonds won"t stop until central banks around the world launch a coordinated pivot, Bank of America says

"Markets stop panicking when central banks start panicking but BoJ/BoE panics not yet credible nor coordinated," Bank of America said. Traders work on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020.Lucas Jackson/ReutersA $46 trillion wipe out in stocks and bonds over the past year has led to forced liquidations on Wall Street, according to Bank of America.The bank doesn't expect the bleeding to stop until the Fed launches a coordinated dovish pivot with other central banks. "Markets stop panicking when central banks start panicking but BoJ/BoE panics not yet credible nor coordinated," BofA said.It's been a tough year for investors, with global stock and bond markets erasing $46.1 trillion in market value since November 2021, according to Bank of America.The massive drawdown has led to forced liquidations on Wall Street, the bank's chief investment strategist Michael Hartnett said in a Friday note, highlighting the recent break below 2018 support in the NYSE Composite Index.And investors shouldn't expect the pain to stop until the Federal Reserve, in coordination with other central banks, pivots away from its currently hawkish monetary policy and towards a more dovish stance, according to the note.That's because this year's interest rate and quantitative tightening shock from the Fed has hit Wall Street's "addiction to liquidity," Hartnett said.  And while the Bank of England and Bank of Japan have recently pivoted to a more dovish stance amid turmoil in their local currency and fixed income markets, that hasn't been enough, as evidenced by the continued downtrend in stock prices."Markets stop panicking when central banks start panicking but BoJ/BoE panics not yet credible nor coordinated," Hartnett said, referencing the fact that the Bank of England's recent easing measures, combined with the UK government's tax cut plans, runs counter to its goal of reducing elevated inflation. As to when such a panic by central banks might occur, Hartnett believes mid-November is a possibility, arguing that the S&P 500 could fall another 10% from current levels by then, which would "force policy panic" right when the G20 meets on November 16.Such a policy shift from central banks would help spark a short-term relief rally, but the stock market likely won't find its ultimate low until the first quarter of next year when recession and credit shocks lead to a peak in interest rates and the US dollar, Hartnett said. To take advantage of such a decline, Hartnett recommends investors "nibble" if the S&P 500 hits 3,600, "bite" if it falls to 3,300, and "gorge" if the index touches 3,000, which would represent a peak-to-trough decline of 37.5% from its January peak. Based on historical data, the S&P 500 has experienced 20 bear markets over its lifetime, with a average peak-to-trough decline of 37.3%, which would be right in line with 3,000 for the S&P 500. Read the original article on Business Insider.....»»

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Electric bills hit $50,000 for California mansion owners amid heat waves and high supply costs for power companies

Billionaires and average Joes alike feel the pinch of more expensive electric bills thanks to heat waves, more air conditioning and higher rates from providers. The One Bel Air mansion at nightMarc Angeles Mega mansions cost their owners between $10,000 and $50,000 in electric bills, reports say. Residents across the country report higher electricity rates due to supply cost issues.  A/C expert says residents should check their HVAC system if they want to cut down on power usage. Record-breaking heat waves mean California residents are spending more to keep homes cool – and some are paying thousands to do so.Multi-million dollar mansions require more electricity to power their sprawling layouts than the average home, and owners are shelling out more than $10,000 each month to cover the bill, the LA Times reports.A record-breaking $141 million mansion known as "the costliest house sold at auction," has monthly electric bills estimated at around $50,000. According to the LA Times, mega mansions like this one may have up to 50 HVAC systems compared to one system for a regular-sized home."In theory, a 100,000-square-foot home would have the same energy bill as 40 2,500-square-foot homes," A/C expert Lawrence Castillo told the LA Times. "That's two city blocks' worth of houses to cool one property."Although heat waves don't help, there could be more to why power is more expensive than before.California's San Diego Gas & Electric raised its rates due to higher supply costs, and the new bills cost residents nearly 12% more than last year on average, the Wall Street Journal reported.Energy company Consolidated Edison reported the same issue to explain a 23% increase on customers'  bills in January.A New York City resident told the Journal his utility bill "literally doubled overnight," having to spend $1,000 on electricity for the month.Castillo said those hoping to cut down on electricity bills should focus more on their A/C units instead of turning off lights and appliances. In the LA Times report, he said that makes up 70% of electric bills during the summer."People think that leaving appliances running or turning off lights will make a big difference, but the main difference-maker is the age and usage of the A/C unit," he said.Read the original article on Business Insider.....»»

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I write movies for Lifetime. I broke in when I was in my 30s by cold-emailing screenwriters — here"s how, and the formula I use to sell scripts.

Melissa Cassera says the "soapy, salacious Lifetime movies" she writes need tropes and a happy ending, and don't linger on dark details. Melissa Cassera is a screenwriter for Lifetime.Emily Scott Melissa Cassera, 43, started pursuing screenwriting when she was 35 years old. She looked up her favorite Lifetime movie producer and hired her for help with a spec. Cassera's written many scripts for Lifetime and says that all movies have a certain formula. This as-told-to essay is based on a conversation with Melissa Cassera, a 43-year-old independent screenwriter from Washington state, about how she creates Lifetime movie scripts. It has been edited for length and clarity. I'm not a super optimistic person. The normal statistics for screenwriters say it takes seven years to get your first project going, and securing your first project doesn't guarantee a long career. It's a difficult industry. So when I decided to become a screenwriter, I set my expectations accordingly. I worked diligently and intentionally on my writing, while getting clear on what I wanted.I began pursuing screenwriting when I was 35 years old, after working as a publicity and content strategist for nine years. In the beginning, I bought a book called "The Coffee Break Screenwriter" by Pilar Alessandra and wrote a script using that book. I contacted her after I had a first draft and asked if I could hire her for a consultation to tell me where I might improve.I worked with Alessandra for the next year or so on several sample scripts and took classes at a wonderful place called Script Anatomy in LA that employs working screenwriters as teachers. I also had several generous writers and producers offer to read my work over the years and provide helpful notes — I'm still learning.I've always been a fan of Lifetime, and I love soapy, salacious entertainment — things like "Gossip Girl," "Twilight," and romance novels. I was clear that's what I wanted to write because it's what I like to consume. Christine Conradt had written many of my favorite Lifetime movies, so I looked her up onlineI saw she was teaching a workshop at a writer's conference, and I signed up. After the conference, I emailed her and invited her for coffee. She was generous enough to take me up on it, and I asked her all kinds of questions about how she got her start and grew her career.We kept in touch over time and I hired her for some help with a spec I was writing called "Bad News" (the story was never made but it was optioned a few times). She eventually produced a movie and went to bat for me so I'd get the job. That led to my very first produced screenwriting credit for the Lifetime movie "Girl Followed," in 2017.I've also worked with a few other producers who have deals with Lifetime. Most prominently, I work with Pierre David, who produces many movies for the network. I had some basis of knowledge because I was a fan, but I'm lucky because these two mentors really helped me carve my path in this space. I've written 10 movies in the last five years for Lifetime as an independent screenwriter, including "Girl Followed" starring Joey Lawrence, "The Obsession Thrillogy" (Lifetime's first trilogy), and "Crazy Neighborhood Moms."There's a bit of a formula that needs to happen with any television movie Whether for Lifetime or its counterpart Hallmark, the audience likes tropes. At the same time, I have to try to subvert expectations and surprise the audience. It can be tricky to do because I've written a lot of these movies. Lifetime wants writers to make the movies feel like a fun thrill ride instead of an intense dramatic experience. Intense movies may be a better fit for a network like HBO, but Lifetime tries to not linger too long on some of the heavier stuff that's happening. I have to keep the pace moving. There are certain stories or story lines that can be pretty intense, but I don't go super dark. In Lifetime movies, there may be murder, affairs, and other things happening — that's part of its formula. But I intentionally don't explore darker themes like sex trafficking. Lifetime wants its audiences to have fun while watching, even though it's heavy material.If I'm doing thrillers, there are certain things that need to happen in every movie I must have a punchy opening that typically involves some type of murder or somebody getting harmed. That's standard across all Lifetime movies. Then around page 50 of the script, or 45 minutes into the movie, I'll add a second big thriller beat that turns the story in a new direction. The writer term we use for it is the "blood on the floor moment."For Lifetime thrillers, the ending of our movies need to come to some sort of resolution. It's very much like a romantic comedy. People want the characters to get together in the end. If they don't, it's really disappointing. We have the same thing in our Lifetime movies. There has to be some sort of happy resolution, and that can happen in different ways — but it needs to end on that beat. Another thing that's common in our movies are female-driven stories When writing Lifetime scripts, I really like having a strong mom and daughter dynamic. I like having that combination where we're seeing that emotional journey for those two people throughout the movie. This dynamic can be any sort of relationship that's maternal — it doesn't have to be specifically mother and daughter, but a sister, mentor, or grandmother.There's a comfort level with Lifetime movies that I also see with shows like "Law and Order." It's why I always see "Law and Order" in the top 10 of shows. It's been going for 30 years because people show up and know what to expect. You know that you'll learn about a new case and the case will be solved by the end of the episode. That provides a certain level of comfort for people, and my Lifetime movies do the same thing.Are you a screenwriter with a similar story that you'd like to share? Please reach out to Manseen Logan at mlogan@insider.com.Read the original article on Business Insider.....»»

Category: worldSource: NYT5 hr. 59 min. ago Related News

Russian Consulate in New York vandalized with red paint in possible bias incident, police say

Two people wearing black masks and dressed in black clothing were captured on surveillance footage vandalizing the building, police said. A woman holds a protest sign as she stands in front of a vandalized Russian Consulate on September 30, 2022 in New York City.Michael M. Santiago/Getty Images The Russian Consulate in New York City was vandalized with red spray paint early Friday, police said. The New York Police Department is investigating the vandalism as a possible bias incident, said a spokesman. The incident came just hours before Russian President Vladimir Putin signed decrees to annex four Ukrainian regions. The Russian Consulate in New York City was vandalized with red spray paint early Friday in a possible bias incident, a spokesman for the New York Police Department told Insider. Authorities received a 911 call about the incident at around 1:30 a.m. on Friday and discovered that the facade of the consulate on Manhattan's Upper East Side had been doused with red paint, the police spokesman said. Two people wearing black masks, dressed in black clothing, and holding a backpack were captured on surveillance footage vandalizing the East 91st Street building, according to the spokesman. No arrests have yetThe NYPD is investigating the vandalism as a possible bias incident, the spokesman said.The Russian Consulate could not immediately be reached for comment by Insider. The incident came just hours before Russian President Vladimir Putin signed decrees to annex four Ukrainian regions amid his seven-month war with Ukraine.In a speech on Friday, Putin said that the regions were now part of Russia. Ukraine and Western nations have rejected the move by Putin. "The United States condemns Russia's fraudulent attempt today to annex sovereign Ukrainian territory," President Joe Biden said in a statement Friday as he announced new sanctions against Russia.Biden added, "Make no mistake: these actions have no legitimacy. The United States will always honor Ukraine's internationally recognized borders."Last week, Putin again escalated his war with Ukraine when he announced plans to partially mobilize hundreds of thousands of reservists to beef up Moscow's forces in the war.The Russian leader threatened the use of nuclear weapons as he said in a televised address to the nation that mobilization would begin immediately. Putin's announcement of a partial mobilization of troops came as Russia has suffered recent disastrous defeats on the battlefield in Ukraine.Read the original article on Business Insider.....»»

Category: worldSource: NYT5 hr. 59 min. ago Related News

Former NYPD commissioner Bill Bratton says Rudy Giuliani "really wanted to be the police commissioner" during New York City mayoralty: book

"Giuliani watched with a wary eye as the media credited his commissioner for the remarkable turnaround," Andrew Kirtzman wrote of NYC's crime decline. Then-New York City Mayor Rudy Giuliani, right, speaks during a news conference alongside then-Police Commissioner Bill Bratton at New York City Hall on February 22, 1995.AP Photo/Ed Bailey Bratton said ex-NYC mayor Giuliani "really wanted to be the police commissioner," per a new book. The writer Andrew Kirtzman chronicled the former prosecutor's mayoralty in the book "Giuliani." Giuliani, who was first elected in 1993, brought on Bratton to curb crime in the bustling city. Former New York City Police Commissioner Bill Bratton said former New York City Mayor Rudy Giuliani "really wanted to be the police commissioner" during the ex-mayor's tenure, according to a new book.Giuliani — who led New York City from January 1994 to December 2001 — took over the reigns during a time when the city retained its status as a center of finance, media, and the arts, but also continued to struggle with high crime rates that had ballooned in the 1970s and 1980s.Although Giuliani's predecessor, David Dinkins, had hired thousands of new police officers during his term in office, the Republican executive ran on reducing crime in his successful 1993 mayoral campaign against Dinkins.And Giuliani tapping Bratton as the city's top cop was a key element of his commitment to tackling violent crime, which the writer Andrew Kirtzman detailed in his new book, "Giuliani: The Rise and Tragic Fall of America's Mayor."Bratton's tenure began in January 1994."There was no one in city government as crucial to Giuliani's success as the police commissioner," Kirtzman wrote. "Arrests shot up 25 percent in the first two years of the administration, and murders plummeted by almost 40 percent, a far greater reduction than most other cities were experiencing with the end of the crack epidemic. The streets grew safer: the number of gunshot victims in the city plunged by 35 percent."He continued: "Giuliani watched with a wary eye as the media credited his commissioner for the remarkable turnaround. The mayor worked virtually around the clock; he turned up at every major fire, every major crime scene, every water main break, any hint of an emergency."As time went on, Bratton's poll numbers registered higher than Giuliani's, and his press coverage was more positive than that of the hard-charging ex-federal prosecutor. Giuliani then sought to control more of Bratton's schedule, while also seeking to approve the commissioner's appointments and internal promotions."The mayor really wanted to be the police commissioner," Bratton expressed in the book. "Denny Young [the mayor's counsel] and Peter Powers reinforced that he was the police commissioner, and I was the first deputy.""Anybody on whatever enemies list they had, everything had to be cleared through them," Bratton added.Bratton stated that he was taken aback when Giuliani's mayoral deputies in 1994 told him not to attend an event featuring then-President Bill Clinton at a police precinct in Brooklyn."They were snubbing the president of the United States over some pissing match," Bratton said in the book.Bratton would eventually leave his position in April 1996 after he was featured on the cover of Time magazine earlier that year, an act that caused the relationship between the police commissioner and Giuliani to sour, according to The New York Times.'An Excellent Police Commissioner'Bill Bratton, left, speaks during a press conference with New York City Mayor-elect Bill de Blasio on December 5, 2013.AP Photo/Seth WenigBratton would eventually serve a second stint as New York City's police commissioner.From January 2014 to September 2016, Bratton led the department under then-Mayor Bill de Blasio.In a 2015 interview with journalist Geraldo Rivera, Giuliani praised Bratton's latter tenure, calling him "an excellent police commissioner."Giuliani, who was a frequent critic of de Blasio's mayoralty, said Bratton was "about the best thing we got," as he remarked on the then-mayor's shaky relationship with the city's powerful police unions.In a 2018 interview with CNBC, Bratton said that he "regretted" the way his tenure ended during Giuliani's first mayoral term."I regretted that, I still regret it," Bratton expressed at the time. "The mistake I made with the mayor was, using the term, I didn't 'stay in his headlights' — I didn't stay close enough to him and to his vision."Bratton also served as the Boston police commissioner from June 1993 to January 1994 and the police commissioner of Los Angeles from October 2002 to October 2009.While speaking with the New York Times opinion columnist Maureen Dowd last year, Bratton remarked that Giuliani had "made a caricature of himself" as one of former President Donald Trump's most fervent allies."As somebody who's got a big ego, speaking about another guy with a big ego, I can't understand how he allowed himself to be subsumed by Trump," Bratton said.Read the original article on Business Insider.....»»

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Elon Musk"s vacation buddy, famed Hollywood agent Ari Emanuel, has reportedly tried to arrange a potential settlement ahead of the Tesla CEO"s Twitter trial

Ari Emanuel reportedly contacted Twitter director Egon Durban earlier this month and said the two sides should settle before the case goes to trial. Ari Emanuel and Elon MuskAmy Sussman and Pascal Le Segretain via Getty Ari Emanuel has recently pushed for a settlement between Elon Musk and Twitter, Bloomberg reported. It's unclear whether either side is open to settling the case before it goes to trial in October. Spokespeople for Twitter and Musk did not respond to a request for comment ahead of publication. Elon Musk's friend Ari Emanuel has recently attempted to broker a potential settlement between Twitter and the billionaire Tesla CEO, according to a report from Bloomberg.Emanuel is one of Hollywood's most powerful agents and the CEO of William Morris Endeavor (WME). He. was also the basis for the character of Ari Gold on the HBO show "Entourage."Musk is set to face off against Twitter in court on October 17. The social media company is attempting to force Musk to buy the company for the original purchase price of $44 billion.Spokespeople for Twitter, Musk, and Emanuel did not respond to a request for comment ahead of publication.Bloomberg reported that Emanuel contacted Twitter director Egon Durban within the past few weeks and said the two sides should settle before the court case goes to trial. Durban is also a board member at Emanuel's company William Morris Endeavor (WME).Durban notified Twitter's board regarding his conversation with Emanuel, but it's unclear if Twitter is amenable to a settlement, Bloomberg reported. It is also unclear whether Emanuel is acting on Musk's behalf or if the billionaire is even open to a settlement.Erik Gordon, a professor at the University of Michigan's Ross Business School, told Insider Emanuel is unlikely to have a major sway on the dispute."Musk and Twitter don't need another emissary to shuttle diplomacy between them," Gordon said. "They have bankers and attorneys who have decades of experience mediating legal disputes."The billionaire and Twitter's CEO, Parag Agrawal, were both scheduled to sit down for a deposition this week, but the interviews were rescheduled.Emanuel has been spotted with Musk on several occasions while yachting or lunching. Most recently, the two men were photographed in the summer vacationing on a superyacht off the coast of Greece.Read the original article on Business Insider.....»»

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Axel Springer CEO Mathias Döpfner texted Elon Musk urging him to buy Twitter days before Musk"s stake in the company became public. "Will be fun," Döpfner wrote.

A trove of private texts between Elon Musk and notable figures in business and media is part of Twitter's ongoing lawsuit against the billionaire. Elon Musk.REUTERS/Adrees Latif Text messages between Elon Musk and various notables in tech and business have been released. In one private text exchange, the CEO of Axel Springer, Insider's parent company, speaks to Musk.  The CEO urges Musk to acquire Twitter and offers to "run it" on his behalf. Days before Elon Musk's investment in Twitter became public, he was already being urged to acquire the company by a number of notable figures in business, including Mathias Döpfner.Döpfner is the CEO of Axel Springer, parent company of Insider Inc., the publisher of this story. In a private text exchange dated March 30, 2022, unveiled Thursday in as part of Twitter's lawsuit against Musk, Döpfner urged Musk to buy Twitter."Why don't you buy Twitter?" Döpfner asks. "We run it for you. And establish a true platform of free speech. Would be a real contribution to democracy."Musk replied a few minutes later, according to the text log, saying "Interesting idea."Döpfner wrote back, "I'm serious. It's doable. Will be fun."Insider emailed Axel Springer spokespeople asking if Döpfner could comment on Thursday. They did not immediately respond to the request.The exchange took place several days before Musk's accumulation of just over 9% of Twitter's stock became public April 4. The log of Musk's text messages over a series of weeks shows the extent to which he was already discussing his potential involvement in the company with acquaintances and executives, including leaders of Twitter. Musk agreed to buy Twitter for $44 billion in late April. Since then, he has attempted to back out of the agreement, leading to the current court case. Twitter is trying to force the billionaire to buy the company at the agreed upon price. The case is set to go to trial next month.Are you a Twitter employee or someone with insight to share? Contact Kali Hays at khays@insider.com, on secure messaging app Signal at 949-280-0267, or through Twitter DM at @hayskali. Reach out using a non-work device.Read the original article on Business Insider.....»»

Category: worldSource: NYTSep 29th, 2022Related News

6 Republican states are suing the Biden administration over student-loan relief calling it "economically unwise and downright unfair"

Six states claim student-loan relief will hurt tax revenue, that Biden doesn't have the authority to cancel debt, and are seeking to pause the plan. President Joe Biden.JIM WATSON/POOL/AFP via Getty Images Six Republican states are suing the Biden administration over student loan relief, the AP reported. The states are claiming that some of them will lose out on tax revenue from the relief. They also cite Biden calling the pandemic "over" since relief is hinged on an ongoing crisis. Six Republican-led states are suing over President Joe Biden's plan to relieve $10,000 to $20,000 in student loan debt for some federal borrowers.Arkansas, South Carolina, Iowa, Kansas, Nebraska, and Missouri filed the lawsuit jointly, with Arkansas Attorney General Leslie Rutledge leading the effort, according to the Associated Press's Seung Min Kim.The suit claims that Biden's student loan relief, which cancels $10,000 in debt for borrowers making under $125,000 and $20,000 for borrowers under the same income cap who received Pell Grants, will negatively impact states' revenues, and is impairing Missouri's loan servicer, MOHELA, from giving out loans."In addition to being economically unwise and downright unfair, the Biden Administration's Mass Debt Cancellation is yet another example in a long line of unlawful regulatory actions," the complaint says. "No statute permits President Biden to unilaterally relieve millions of individuals from their obligation to pay loans they voluntarily assumed." The states cited that the president used the pandemic as legal justification for the ability to cancel debt, despite recently pronouncing the pandemic over — an announcement that could imperil student loan relief."Even Congress knew that the result of this policy would not ultimately benefit the country," Rutledge said in a Thursday press conference. "And that's why, again, the president resorted to the now-concluded Covid-19 pandemic."The states will be seeking a preliminary injunction against relief, Rutledge confirmed in a press conference. If granted, that could potentially pause student loan relief.In Nebraska, Iowa, Kansas, and South Carolina, student loan relief can't be taxed by the state — and Democrats ensured it would not be subject to federal taxes. As a result, those states will miss out on tax revenue from the relief, the suit claims."President Biden's unlawful political play puts the self-wrought college loan debt on the backs of millions of hardworking Americans, who are struggling to pay their utility bills and to make their mortgage payments," Rutledge said. "In the midst of this inflation, President Biden does not have the authority to arbitrarily erase college debt of adults who voluntarily chose to take out those loans."The White House did not immediately respond to Insider's request for comment.The spate of lawsuits come as the Department of Education sends out its first guidance to borrowers on how relief mechanisms will work, with applications set to open in October. The complaint marks the second major lawsuit over student loan relief, which many Republicans have publicly decried. Pacific Legal Foundation, a conservative legal group, filed suit earlier this week. They claimed that plaintiff Frank Garrison, an attorney at the organization, would find himself on the other end of a tax bill over $1,000 because he was eligible for $20,000 in relief, and his home state of Indiana intends to tax relief.Garrison is paying off his loans through the Public Service Loan Forgiveness (PSFL) program, where he should full, untaxed relief in about four years.However, the Biden administration and Department of Education may have sidestepped that lawsuit after clarifying that borrowers who qualify for automatic relief can opt out. In a Wednesday filing, the Department of Justice reiterated that borrowers will be able to opt out — and said that the Department was already working to ensure that Garrison would not receive automatic relief, per his wishes.Read the original article on Business Insider.....»»

Category: worldSource: NYTSep 29th, 2022Related News

GOP oversight chief says a full-blown investigation into Hunter Biden is unavoidable if Republicans retake the House this fall: "We believe he"s compromised Joe Biden"

Examining Hunter Biden's entire existence isn't something Rep. James Comer said the GOP relishes, but it's also something they just can't drop. Then-Vice President Joe Biden (R) points to some faces in the crowd with his son Hunter Biden as they walk down Pennsylvania Avenue following the inauguration ceremony of President Barack Obama in Washington, DC, on January 20, 2009.REUTERS/Carlos Barria Rep. James Comer said Republicans have to keep investigating Hunter Biden's entire life.  "We believe he's compromised Joe Biden," Comer said, though no evidence to date backs him up. If the GOP retakes the House this fall, Comer would the power to probe deeper as oversight chair. Rep. James Comer said poring over every facet of Hunter Biden's life isn't something Republicans want to do if they reclaim control of the House after the midterm elections so much as it's something they feel obligated to follow through on. "The reason we're investigating Hunter Biden is because we believe he's compromised Joe Biden," the Kentucky Republican told reporters at the US Capitol on Thursday. Comer, who stands to become chairman of the House oversight panel if Republicans flip enough seats this fall, billed his ongoing probe into the business and personal dealings of President Joe Biden's scandal-plagued youngest son as patriotism, not political payback. "We've already brought forth more evidence of wrongdoing with Hunter Biden in foreign countries than Adam Schiff ever brought forward with Donald Trump or Jared Kushner or anyone else," Comer said when asked if avenging the embattled former president played any role in continuing to dig for dirt on the younger Biden. To date no evidence has substantiated GOP claims that Hunter Biden's work influenced policy decisions made during his father's three stints in the White House or that Joe Biden has somehow profited from Hunter's dealings. That hasn't stopped Comer and other House Republicans from claiming that the entire Biden family is dangerously corrupt.Comer mapped out plans to run Hunter Biden through the wringer last fall, and dubbed the political scion "a national security risk" this summer. Biden aides began preparing for an investigatory backlash this spring, anticipating that gavel-wielding House Republicans would likely come after the president, Hunter Biden, and key administration officials the first chance they get. At least for now, House Minority Leader Kevin McCarthy seems uncomfortable with plowing into impeachment proceedings should he become speaker. "We will not play politics with it," McCarthy told reporters Thursday morning. Read the original article on Business Insider.....»»

Category: worldSource: NYTSep 29th, 2022Related News

A first-in-class US Navy supercarrier is about to set sail on its maiden deployment for the first time in over 40 years

The first-in-class carrier USS Gerald R. Ford, the Navy's most advanced flattop, is finally ready to deploy and will set sail next week from Virginia. The aircraft carrier USS Gerald R. Ford (CVN 78) transits the Atlantic Ocean, March 26, 2022.US Navy/Mass Communication Specialist 3rd Class Jackson Adkins The US Navy is ready to deploy a new first-in-class supercarrier for the first time in over four decades. The aircraft carrier USS Gerald R. Ford will set sail on its maiden deployment next week from Hampton Roads, Virginia. The Ford's first deployment comes four years after the ship was first expected to deploy. The $13 billion lead ship of a new class of advanced US Navy aircraft carriers is about to finally set sail on its first deployment after years of costly setbacks and delays that have at times made it the target of fierce criticism.The first-in-class aircraft carrier USS Gerald R. Ford, which was commissioned over five years ago and has been over a decade in the making, will deploy for the first time next week on a short, service-retained deployment, Vice Adm. Daniel Dwyer, US 2nd Fleet commander, told reporters.During the Ford's time deployed at sea, thousands of personnel, 17 ships, one submarine, and at least 60 aircraft from nine countries will participate in military exercises in the Atlantic, an area of increasing strategic significance.The deployment to the Atlantic will come amid heightened tensions between the US and Russia and growing competition at sea. The Navy reestablished 2nd Fleet just four years ago to address emerging challenges in the region."The Atlantic, especially for US 2nd Fleet headquarters, is an area of strategic importance, not only for the US and our allies and partners to strengthen the transatlantic link between North America and Europe, but also for homeland defense," Dwyer said."In this era of strategic competition, we can no longer assume that geography provides us with the protection and standoff that we've had in the past," he said.Emphasizing the role of training with allies and partners in advancing collective security, the admiral said that "not only is this a historic deployment for our first Gerald R. Ford-class aircraft carrier," but it also matters that "we are coming together with eight allied navies to operate together throughout the Atlantic."During the upcoming deployment, which is aimed at giving the ship a chance to find its footing before a more extensive operational deployment next year, Carrier Strike Group 12 will deploy under the control of the chief of naval operations and the command of US 2nd Fleet.Deployed assets are typically directed by combatant commanders. A service-retained deployment, which is less common, is an opportunity to "figure out what is the best way to use the ship," Bryan Clark, a former Navy officer and defense expert at the Hudson Institute, told Insider."You have generations of sailors that have come up with only one kind of carrier," he said. "But now, you've got this new ship that is completely different" in terms of how quickly it can get its planes airborne and other capabilities."There are a lot of new opportunities that the Navy has not really had a chance to work through because the focus has been on testing and getting the basics established," Clark said. "They know everything works on the ship and basically how to run it, so now the question is what are the best ways to exploit the new capabilities."Experimenting is not necessarily something the Navy would want to attempt while trying to meet a combatant command's operational demands though. Those kinds of deployments strain and break even proven gear and systems."When we go out and sail on the high seas, it is a thing just to launch and recover aircraft every single day, to have the battle rhythm of command and control throughout the carrier strike group," the Ford's commanding officer, Capt. Paul Lanzilotta, told reporters on a call. "We're going to refine all that with our team.""We're going to eat three square meals a day, we're going to fly aircraft, we're going to do air defense, we're going to do long-range maritime strike," he further explained."It is really a stepping-stone kind of approach from my perspective. It is a chance for us to really find areas where we can improve," the captain said.Lanzilotta added that the crew will be looking at areas where "maybe we can take our technology that much further and get better" than some legacy systems.Dwyer said that the deployment "is an opportunity for the Navy to come together with other members of the NATO alliance to exercise and train within the Atlantic and its littorals while testing out advanced technologies on the first new class of US aircraft carrier in more than 40 years."An EA-18G Growler, assigned to Air Test and Evaluation Squadron (VX) 23, prepares to land aboard USS Gerald R. Ford's (CVN 78) flight deck.US Navy/Petty Officer 2nd Class Ruben ReedFirst maiden deployment of a first-in-class US Navy supercarrier in decadesUSS Gerald R. Ford is the first ship in a class that will include at least three other ships which are in various stages of work, outfitting, and construction.The last time a first-in-class US Navy supercarrier deployed for the first time was when the USS Nimitz, commissioned in 1975, deployed the following year.And just as the Nimitz represented an improvement over the conventional Kitty Hawk-class carriers and the Enterprise-class, the first carrier class to use nuclear power, the first-in-class USS Gerald R. Ford features 23 new technologies designed to give it an edge over its predecessors.Onboard systems like the Electromagnetic Aircraft Launch System (EMALS) and Advanced Arresting Gear, for example, are expected to facilitate improved sortie generation and better aircraft launch and recovery. Dwyer said this week that the Ford's crew has already executed over 10,000 catapult launches and carrier landings.It has hardly been smooth sailing for the Ford, which has seen costly technological integration issues with the weapons elevators, catapult malfunctions, and other problems over the years.In 2019, a year after the carrier was first expected to deploy, Rep. Elaine Luria, a Virginia Democrat and Navy veteran, sharply criticized the sea service and shipbuilder Huntington Ingalls Industries for its mishandling of the project and argued the Ford was essentially a "$13 billion nuclear-powered berthing barge."Last year, Chief of Naval Operations Adm. Michael Gilday acknowledged that the Navy overloaded the carrier with too many new technologies, which he said "increased the risk" of this carrier being delivered late and over budget.The carrier is now finally ready to deploy though. "Everything is on track," Rear Adm. Gregory Huffman, who will command the Ford Carrier Strike Group on its maiden deployment, told USNI News last year.His remarks followed the successful completion of explosive shock trials last summer, when the Navy detonated multiple 40,000-pound bombs near the Ford to test its ability to handle the shock of actual combat, and came as the Navy made necessary repairs."Getting the Ford-class out there with its capabilities is basically just going to increase the number of carriers and carrier strike groups that we have available to meet the demands," the admiral said."When you couple that with the projected increase in what the Ford should be able to do," he said, "that's going to just provide the combatant commanders and other folks with just more options and more things at their fingertips that they can use."Read the original article on Business Insider.....»»

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Natural gas supplies will grow even tighter in 2023, and its "very obvious" who was behind the Nord Stream pipeline sabotage, IEA chief says

It's "very obvious" who was behind the Nord Stream attacks, IEA director Fatih Birol said, warning that gas supplies would tighten next year. Fatih Birol warned summer could be difficult for energy markets.Anadolu Agency/Getty Images Gas supplies will tighten into next year as constraints continue to mount, IEA chief Fatih Birol said. Birol's supply warning came shortly after the Nord Stream explosions, which caused gas prices to surge 11%. "It is very obvious … who was behind this issue," Birol said at a Paris energy conference. Natural gas supplies are set to be even tighter next year as the Nord Stream pipeline deals with an apparent act of sabotage, International Energy Agency chief Fatih Birol said, adding that it's "very obvious" who was behind the attempt to cripple the key piece of energy infrastructure.Birol's warning comes as Europe is facing a major energy supply crunch this winter, with Russian gas flows halted on the Nord Stream 1 pipeline. That caused already-high natural gas prices to soar even higher, with Dutch TTF futures, the European benchmark for natural gas, surging 28.5% shortly after the halt.Supplies came under new pressure this week after explosions occurred at both of the Nord Stream pipelines, which Denmark said was likely due to deliberate leaks made in both pipelines. Dutch TTF futures rose another 11% on Wednesday. "It is not yet known who made it, who is behind this sabotage, there is still discussion more or less, but ... it is very obvious … who was behind this issue," Birol said at a Paris energy conference on Thursday, according to Reuters. Other world leaders have wagered guesses at who may be behind the pipeline attacks: Spain's energy minister said Russia was likely responsible for the damage, but the Kremlin brushed off any suspicion of Russian involvement on Wednesday, with Kremlin spokesperson Dmitriy Peskov calling the accusations "stupid."At another energy conference in Japan, Birol warned that gas supplies in the coming year would grow tighter, due to the strain of Russian supplies being taken off the market as well as increased demand in Asia. China is slowly emerging from its COVID-19 lockdowns, and will likely ramp up the competition for alternative gas supplies once its economy is back in full swing."We may well see that the LNG markets in 2023 will be rather tight, maybe tighter than this year," Birol said on Thursday. "If the Chinese economy recovers ... it will be difficult for Europe to attract so much LNG."88% of the European Union's gas storage has been filled as of Monday, according to Reuters, offering some cushion for the bloc to get through supply disruptions this winter. But still, the IEA previously said that Europe would be in danger of blackouts even with 90% storage, leading to a scramble for alternative supplies.Read the original article on Business Insider.....»»

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Text messages reveal Sam Bankman-Fried"s guru told Elon Musk the crypto billionaire was "potentially interested" in buying Twitter

The text messages were revealed as a part of a trove of unredacted messages between Musk and several of Silicon Valley's most powerful players. Sam Bankman-Fried, founder of crypto exchange FTX.Tom Williams/Getty Images Sam Bankman-Fried's advisor told Elon Musk the crypto billionaire was possibly interested in buying Twitter. The advisor, Will MacAskill, attempted to set up a meeting between the two billionaires in March. The text messages were revealed as a part of the discovery process in Musk's court battle with Twitter. Sam Bankman-Fried's advisor told Elon Musk that the crypto billionaire was "potentially interested" in buying Twitter, according to a series of private texts that were released amid Musk's court battle with the social media company.Will MacAskill, an altruism ethicist and top advisor to Bankman-Fried, texted Musk in March regarding the crypto billionaire's interest in Twitter."Hey — I saw your poll on Twitter about Twitter and free speech," MacAskill wrote on March 29. "I'm not sure if this is what's on your mind, but my collaborator Sam Bankman-Fried has for a while been potentially interested in purchasing it and then making it better for the world. If you want to talk with him about a possible joint effort in that direction."Musk responded to the text asking if Bankman-Fried — whose net worth is $9.44 billion, per the Bloomberg Billionaire's Index —  had "huge amounts of money?" At the time, MacAskill said the co-founder and CEO of FTX was worth about $24 billion and would be willing to contribute as much as $8 billion to $15 billion.In the exchange, MacAskill attempted to set up a meeting between the two billionaires and Bankman-Fried, later discussed financing with Morgan Stanley banker Michael Grimes in April.Grimes told Musk that Bankman-Fried would be willing to commit up to $5 billion on April 25."I do believe you will like him," Grimes texted Musk at the time. "Ultra genius and doer builder like your formula. Built FTX from scratch after MIT physics. Second to Bloomberg in donations to Biden campaign."Musk appeared less interested in the deal, saying he didn't want to "have a laborious blockchain debate" with Bankman-Fried.When Musk's funding for the Twitter deal was revealed in a financial filing on May 4, neither Bankman-Fried's name nor his company FTX were listed.The last publicly shared text between Musk and Bankman-Fried was sent on May 5, when Musk texted Bankman-Fried, saying "Sorry, who is sending this message?"Spokespeople for Bankman-Fried and MacAskill did not immediately respond to Insider's request for comment ahead of publication.The text messages were revealed as a part of a trove of unredacted messages between Musk and several of Silicon Valley's most powerful players, including Oracle cofounder Larry Ellison, and former Twitter CEO Jack Dorsey. The messages are part of the pretrial discovery process in the court battle between Twitter and Musk.The five-day trial that will determine whether Musk will be forced to buy Twitter is set to start on October 17.Read the original article on Business Insider.....»»

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An Army major"s wife had them read up on how to be a Soviet spy so they could leak sensitive US military medical info to Russia, prosecutors say

In a federal indictment, prosecutors allege that Dr. Anna Gabriellian told her partner to read "Inside the Aquarium," a book on Soviet espionage. Russian flagPaul Zinken/picture alliance via Getty Images In a new federal indictment, prosecutors allege a Maryland couple tried to spy for Russia. The indictment says one of the accused told her partner to read the book, "Inside the Aquarium." The book is by a former Soviet spy, Viktor Suvorov, who defected in the late 1970s. The wife of an Army major encouraged her partner to read a book by a former Soviet spy in order to prepare them for leaking sensitive US military medical information to the Russian government, federal prosecutors alleged Thursday. According to a newly unsealed indictment filed with the US District Court in Maryland, the Department of Justice is charging Maj. Jamie Lee Henry and wife Dr. Anna Gabrielian with conspiring to hand over medical information to a person they believed was working for the Russian government but who was actually an undercover FBI agent. Court documents reviewed by Insider said that the couple gave the personal medical records of US Army patients and their family members to the undercover agent last month under the impression that the information would then be passed on to the Russian government. Henry, a doctor who worked at North Carolina's Fort Bragg, had secret level security clearance, which allows access to content that, if disclosed, could harm the country's national security. Gabrielian in an anesthesiologist at Johns Hopkins Hospital. The indictment alleges that at an initial meeting with the undercover agent at a hotel on August 17, Gabrielian said she was motivated to help Russia in any way she could because she felt patriotism for the country, court documents showed. According to a listing on Johns Hopkins' website, Gabrielian speaks English and Russian.Prosecutors allege that Henry denounced the US to the undercover agent and even said he considered joining the Russian army after it invaded Ukraine in late February.Wife urged partner to study Soviet espionageDuring that meeting, Henry allegedly told the undercover agent that Gabrielian had them read ''Inside the Aquarium," a book on becoming a spy for the Soviet Union.  The book is by a former Soviet spy, Viktor Suvorov, who defected in the late 1970s. According to Publishers Weekly, the book provides a "brisk, readable account" of the author's "recruitment and training as an agent of Russia's ultra-secret GRU intelligence group."Henry told the undercover agent, per the indictment, that Gabrielian recommended the book because it details "the mentality of sacrificing everything... and loyalty from day one. That's not something you walked away from."The indictment suggests Henry had some potential qualms about spying for Russia, however."My point of view is until the United States actually declares war against Russia, I'm able to help as much as I want. At that point, I'll have some ethical issues I have to work through," Henry said during the meeting, prosecutors allege. Henry's wife then responded: "you'll work through those ethical issues."At a meeting a week later, Gabrielian told the undercover agent that Henry was a "coward" because the Army officer had expressed concern about violating HIPAA, the law that protects patient privacy. She, by contrast, allegedly told the agent that she engaged in such violations "all the time."Later that month, prosecutors claim the couple provided the undercover agent medical information related to an Air Force veteran, a retired Army officer, a Defense Department employee, the spouse of someone employed by the Office of Naval Intelligence, and the spouses of multiple deceased Army veterans. Read the original article on Business Insider.....»»

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China tells state banks to prepare for a massive dollar dump and yuan buying spree as Beijing"s prior interventions have failed to stem its currency"s worst year since 1994

The amount of dollars to be sold hasn't been decided yet, but Reuters said it will primarily involve state banks' currency reserves. Chinese President Xi Jinping.Kevin Frayer/Getty Images Reuters reported that China told state-owned banks to get ready to sell dollars and buy yuan in an effort to prop up the local currency.  The move could stem the yuan's fall, as it remains on track for its largest annual loss against the dollar since 1994.  A hawkish Fed has pushed the dollar to 20-year highs this year, pressuring currencies around the world.  The People's Bank of China has told major state-run banks to prepare to shed dollar holdings while snapping up offshore yuan, which has continued to fall despite prior interventions, sources told Reuters.The scale of this latest effort to prop up the yuan will be big and could provide a floor to the Chinese currency, according to the report.The amount of dollars to be sold hasn't been decided yet, but Reuters said it will primarily involve the state banks' currency reserves. Their offshore branches, including those based in Hong Kong, New York and London, were ordered to review offshore yuan holdings and check to see that dollar reserves are ready. On Thursday, the yuan fell 0.9% to 7.1340 against the dollar and is on track for its worst annual decline since 1994, having lost more than 11% so far this year. Earlier this week, China's offshore yuan this week depreciated to a record-low against the greenback, and its domestic unit fell to its weakest level since the 2008 financial crisis.The Federal Reserve's hawkish policy path has bolstered the dollar to 20-year highs this year, putting pressure on other central banks and triggering a "reverse currency war."While a weaker currency can sometimes be beneficial, as it means exports get cheaper, the yuan's recent decline below the psychological threshold of 7-per-dollar has raised concerns. The People's Bank of China has consistently imposed a strong bias to its currency reference rate to help support the yuan. Central bank officials have also issued verbal warnings against speculating on the yuan and increased the cost of shorting the currency.But it has refrained from raising benchmark rates and instead has been easing them in an effort to spark growth in an economy that's been dragged down by COVID-19 lockdowns, a real estate crash, and supply chain snags. Read the original article on Business Insider.....»»

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UK prime minister says pound"s slump is due to fallout from Russia-Ukraine war as she defends tax cuts in aftermath of market turmoil

UK's prime minister defended the tax cut plan slammed by economists this week, noting that "currencies are under pressure around the world." Lord Chancellor Liz Truss.Reuters UK prime minister Liz Truss defended the plan to cut taxes after the plan caused chaos in markets.  She blamed the pound's slump on the fallout from Russia-Ukraine war.  "Currencies are under pressure around the world," Truss said. UK prime minister Liz Truss said the pound's slump last week was due to the fallout from the Russia-Ukraine war, defending newly unveiled tax cuts days after a spasm of turmoil in the country's currency and government bond markets.The pound plunged to a 37-year low on Friday after Truss announced the UK's new mini-budget, which includes cutting taxes for the highest earners and slashing planned corporate tax hikes. Turmoil stemming from a loss of confidence in the ability of the UK economy to withstand further inflation and concern over government debt led to the steep decline in the pound and a sell-off in UK government bonds.But the slump in the UK currency can't be blamed on the new tax plan, Truss said to the BBC on Thursday, per the Wall Street Journal. She pointed instead to the Russia-Ukraine war and its impact on the global economy, particularly its effect on energy prices around the world. "This is a global financial situation. Currencies are under pressure around the world," Truss said. She added that she would not retreat on plans to cut taxes, as there was a need to take "decisive action" in the economy. Currently, the UK is strapped with 9.9% inflation, down slightly from 10.1% recorded in July.Meanwhile, experts have ripped into the new mini-budget, with Noble economist Paul Krugman calling the pound's fall the price the UK is paying for "moronic" economic policy, and top economist Mohamed El-Erian urging the Bank of England to issue a super-sized emergency rate hike or risk of letting inflation soar even further.Unfunded tax cuts and increased debt could exert more inflationary pressure on the economy when prices are already sky-high, economists say. It could also force the Bank of England to hike rates more aggressively than planned and increase the risk of a recession. Read the original article on Business Insider.....»»

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Mohamed El-Erian says the relentless rise in yields is driving the direction of stocks and markets desperately need stabilization

"Yields are in the driver's seat," El-Erian told CNBC. Treasury yields have hit multi-year highs this week, with the 10-year yield reaching 4%. Mohamed El-Erian, chief economic adviser at Allianz SE.Rob Kim/Getty Images The spike in Treasury yields is holding sway over other markets, Mohamed El-Erian said Wednesday.  "Yields are in the driver's seat and in the backseat of stocks and now FX," he said.  The 2-year and 10-year Treasury yields hit multi-year highs this week.  The spike higher in Treasury yields is holding sway over stocks and foreign exchange, said economist Mohamed El-Erian who sees the moves rooted in investors' fearing the Federal Reserve will go too far in raising interest rates. "Yields are in the driver's seat and in the backseat of stocks and now FX. So depending on what yields do, everything else follows and what we need desperately is a stabilization of yields. And we haven't had that - we've had a relentless rise," the chief economic adviser at Allianz said in a CNBC interview on Wednesday. This week, the 10-year Treasury yield rose to 4% for the first time since 2010, and the 2-year Treasury yield climbed past 4.35% for the first time since 2007. The increases highlight this year's drop in bond prices as Treasuries experience their worst decline since 1949, according to Bank of America. Yields and prices move inversely. Meanwhile, Wall Street's key stock indexes were on course to decline for September and deepen their year-to-date losses while the US dollar has soared against major currencies. The US Dollar Index has gained 18% during 2022 and the S&P 500 has slid into a bear market, down 22%. Bond yields have been rising in other global markets as well, with sovereign risks at play in the cases of the UK and Italy, El-Erian said. "In the case of the US, it's a Fed story," the President of Queens' College, Cambridge said.  The Fed first mistakenly embraced inflation as transitory and fell behind the curve, he said. "What the market is worried about [now] is the Fed will continue hiking and will go too far because it's looking at lagging variables. Why? Because it's trying to restore his credibility. And that is what's pushing yields up, especially at the front end in the US." The government's $43 billion auction of 2-year bonds was "poor" this week, he said. "I will keep an eye on that because that has significant technical spillovers." There's technical damage taking shape in the markets, and El-Erian said he's been hearing complaints about liquidity. "The pleasant surprise is that we haven't seen anybody really get offsides, not as yet at least. And that surprises me. It seems that risk management has become much better," he said.Read the original article on Business Insider.....»»

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Fox News owner Rupert Murdoch shared his succession plans for his media empire with Donald Trump, book says

The President was berating Murdoch about Fox News' coverage when the media magnate revealed which of his sons would succeed him, a book says. US President Donald Trump (L) is embraced by Rupert Murdoch at a dinner in New York in 2017.Brendan Smialowski/Getty Images Fox News owner Rupert Murdoch attended a 2017 meeting with Donald Trump, a new book says.  At the meeting, Murdoch shared his succession plans, says the book by Maggie Haberman.  Trump's closeness with key figures at Fox News has long been a subject of controversy.  Fox News owner Rupert Murdoch told Donald Trump which of his sons would take over running his media empire at a meeting in 2017, a new book says. CNN's "Reliable Sources" newsletter on Wednesday published extracts from "Confidence Man," New York Times reporter Maggie Haberman's new book about Donald Trump. At the White House meeting, Haberman writes, Trump and Murdoch were supposed to discuss candidates for the White House chief of staff role. But Trump's mind was elsewhere, and he instead spent 30 minutes "hectoring Murdoch about the supposed leftward drift of Fox News." "'It's going to become too liberal when James [Murdoch] takes over,'" Trump reportedly told Murdoch, referring to the media magnate's son, who was widely expected to take over from his father."'No,' Murdoch interrupted. 'It's going to be Lachlan [Murdoch].' That was one of the first times the succession plan ... had ever been made public, and Trump only managed to elicit it because he was so uninterested in dealing with his own staffing issues," Haberman writes. Donald Trump with Rupert Murdoch at one of his golf courses near Aberdeen, Scotland in 2016.Michal Wachucik/Getty ImagesIn May 2018 Lachlan Murdoch was appointed chairman and CEO of  Rupert Murdoch's TV empire, which includes Fox News and Fox Business, having previously worked there as a senior executive.Under his stewardship, Fox News championed Trump's presidency and has promoted far-right conspiracy theories during the pandemic and on immigration. Despite the backing he's received from the network, Trump has long railed against it at the slightest sign of criticism. James Murdoch resigned from his board position on News Corp, the umbrella ccompany for several of Murdoch's businesses, in 2020, citing editorial differences, specifically in relation to the coverage of global warming. News Corp did not immediately respond to Insider's request for comment.Read the original article on Business Insider.....»»

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The UK should ditch tax cuts, hike rates, and accept a deeper recession to avoid higher inflation, Mohamed El-Erian says

An aggressive rate hike could cause a recession, but the UK is past the point of hoping for a soft-landing, Mohamed El-Erian warned. Mohamed El-ErianREUTERS/Fred Prouser The UK needs to ditch its plan to cut taxes and instead hike interest rates immediately, Mohamed El-Erian said. Though aggressive rate hikes could cause a recession, the UK is past the point of hoping for a soft-landing, he warned. El-Erian has been a vocal critic of the UK's mini-budget, which will exert more inflationary pressure on its economy. The UK needs to abandon its plan to cut taxes and instead hike interest rates, according to top economist Mohamed El-Erian, who added that the country must accept a deeper recession to avoid sky-high inflation.El-Erian has been a vocal critic of the UK's proposed mini-budget, which will involve hikes in government spending while slashing taxes for the wealthy. Fears of worse inflation and unsustainable deficits sent the pound to a record low against the dollar on Monday, prompting the Bank of England to start snapping up bonds on Wednesday to stabilize debt markets.While the central bank averted an immediate financial crisis with its intervention, that's the opposite of what it should be doing to lower inflation, El-Erian warned. He urged the nation to throw out its tax-cut plan and hike rates by 100 basis points. "It would be a tragedy if this ends up resulting in further [tax] cuts. What we need is for the tax reductions to be withdrawn, we need the Bank of England to act on interest rates," El-Erian said in an interview with BBC on Wednesday. "Without [tax cuts], I would look to the Bank of England to make incredible increases in interest rates and I would accept a much deeper recession," he added.El-Erian previously said that the turmoil in British markets was a sign of a paradigm shift in the global economy, as central banks are pivoting from quantitative easing to quantitative tightening to combat inflation. He's criticized central banks around the world for not acting on rising inflation soon enough, forcing them to raise rates too aggressively later. "We are now deep into the world of third- and fourth- best. There is no action that doesn't have some collateral damage to it. The least bad action right now is not to go forward with the tax cuts," he warned.Read the original article on Business Insider.....»»

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Retail investors are about to throw in the towel and finally sell if Apple and Tesla stumble, Vanda Research says

"A positioning puke in these two stocks could be the coup de grace for retail investors' profit and losses," Vanda said. Lucas Jackson/ReutersRetail investors are on the verge of throwing in the towel and selling stocks if Apple and Tesla tumble, according to Vanda Research.Both Tesla and Apple have considerably outperformed the S&P 500 over the past year and year-to-date."A positioning puke in these two stocks could be the coup de grace for retail investors' PnL," Vanda Research said.Shares of Apple and Tesla are becoming increasingly important to the portfolio performance of retail investors, and any stumble in those two stocks could set off a new wave of selling, according to Vanda Research.The firm estimates that combined, Apple and Tesla account for 34% of the average retail investors' stock portfolio. That concentration has actually helped retail investors performance, as both Apple and Tesla have outperformed the S&P 500 considerably year-to-date and over the past year.While the S&P 500 is down 15% over the past year, both Apple and Tesla have generated positive gains of 3% and 8%, respectively. And year-to-date, while the S&P 500 is down nearly 25%, Apple and Tesla are down just 18% and 21%, respectively.Vanda believes the outperformance has been driven by Apple's status as a defensive, high quality company favored by institutional investors, while Tesla's meteoric rise over the past few years has attracted a large retail shareholder base and has led institutions to be weary of shorting the electric vehicle maker.But while Apple and Tesla have delivered meaningful outperformance recently, any big drop-off in their stock prices could be the final straw for retail investors' portfolios, forcing them to throw in the towel and unleash a new wave of selling in the stock market, according to Vanda."A positioning puke in these two stocks could be the coup de grace for retail investors' PnL," Vanda said.Apple is starting to sell-off considerably, following reports that it is lowering production of its iPhone 14 due to demand concerns. The stock fell more than 1% on Wednesday as the market soared, and was down by about 4% in Thursday trades. Apple's sell-off could ultimately spread to Tesla and continue to drag down the stock market, according to Vanda."The danger here is that Apple's U-turn around its production plans risks causing a significant unwinding of positions, dragging Tesla along on second-round effects," Vanda said. The only silver-lining to a capitulation by retail investors is that it tends to be a contrarian indicator that happens at or near stock market bottoms."While there's still some further room to go, [retail capitulation] is closing in on levels that would mark an equity bottom. The typical path to retail capitulation is sudden and swift; therefore, we are paying close attention to any further deteriorating [market] internals," Vanda said. Vanda ResearchRead the original article on Business Insider.....»»

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Now might be "as good a time as you"ve had in a decade" to build a company from scratch, says famed investor Bill Gurley

In the past five years, venture capitalist Bill Gurley said the environment for starting a company "was really crazy," but now might be a good time. bill gurleyBrian Ach/Getty Images for TechCrunch Venture capitalist Bill Gurley talked about the environment for startups on a McKinsey podcast. Gurley said now might be as good a time as any in the past decade to build a company from scratch. He said founders can get "all the real estate" they want, and access to talent is better now. Silicon Valley venture capitalist Bill Gurley said on a podcast that right now might be as good a time as any in the past decade to build a company "from scratch."Speaking to Rick Tetzeli, editorial director of "McKinsey Quarterly," on "The Quarterly Interview: Provocations to Ponder," Gurley discussed the environment for startups in today's unpredictable economy. Gurley, a general partner at Benchmark, is well known in Silicon Valley, having invested in startups like Zillow, Glassdoor, and Uber.The environment of the past five years was "really crazy" to start a company, Gurley said. "And the truth is that if you're going to build something from scratch, this might be as good a time as you've had in a decade," he said.Right now, Gurley said founders "can get all the real estate" they want, and worries about the cost of a lease are "all gone.""That whole mentality of, oh, your competitor raised $100 million, now you have to raise $100 million. All those things have evaporated — for the better, I'd say," Gurley said about getting rid of money distractions.Another reason that right now is a good time to build a company, he said, is "access to talent is way better" compared to before, adding that hiring people is "cheaper" than it used to be.Layoffs at other companies also mean more talent is available, he said, and hybrid work means more people can join a company even if they don't live in the same area as the company."If you need an iOS programmer within 20 miles of your Silicon Valley location, that's way harder than if you can shop globally for that," Gurley said.When Tetzeli asked Gurley if he thinks hybrid work will affect startup culture, Gurley said he doesn't "know what makes sense.""The number one thing people at start-ups worry about is missing out on serendipity — just some random conversation between two people who were out visiting a customer and then said, 'Oh, wait, what if we did this?' and it becomes critical to the company's success," Gurley said, adding that it's more critical in a startup than it would be in a larger company. But Gurley said going hybrid "is really a founder-centric decision."In the macro environment, Gurley said events like Russia's war in Ukraine and Chinese escalations in Taiwan "are not things that start-ups can impact or control." So while they may "add anxiety," Gurley said they're not things that will "have any real impact" on startups.Read the original article on Business Insider.....»»

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