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Does a recession in Europe hurt the US?
  + stars: | 2023-06-13 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +7 min
New York CNN —Slow consumer spending and sticky inflation have led to two consecutive quarters of economic contraction in the European Union. That means that the eurozone fell into a recession over the winter months, and growth this year is likely to be weak. If Europe sneezes, the economists ask, is it possible that the United States catches a cold? Akinci and Pesenti recently examined whether economic crises in Europe have affected the United States over the past thirty years. Strong employment and higher wages can mean higher inflation as companies pass on increased labor costs by raising the price of goods.
Persons: they’re, Ozge Akinci, Paolo Pesenti, , we’ll, We’ll, Janet Yellen, Emmanuel Macron, , Goldman Sachs, David Solomon, , Solomon, ” Solomon, haven’t, It’s, Alicia Wallace Organizations: CNN Business, Bell, New York CNN, European Union, Federal Reserve Bank of New, Organisation for Economic Co, US Federal Reserve, French, CNBC, Federal, CPI, Federal Reserve Locations: New York, United States, Europe, Federal Reserve Bank of New York, Greece, France
Oil prices will remain under pressure until the Fed eases up on monetary tightening, Bank of America said. Meanwhile, Saudi Arabia is trying to boost oil prices by cutting production. Energy markets are facing a "battle royale" between the top oil exporter and the Federal Reserve. In a note last week, BofA commodities strategist Francisco Blanch pointed to the downward trend in oil prices compared to last summer, when oil hit triple digits. Earlier this month, Saudi Arabia announced a production cut of 1 million barrels per day starting in July, piling onto prior cuts from earlier this year.
Persons: , Francisco Blanch, Prince Abdulaziz bin Salman, Jay Powell, Blanch, Brent Organizations: Bank of America, Energy, Federal Reserve, Service, Privacy Policy, Fed, US Federal Reserve Locations: Saudi Arabia, Privacy Policy Saudi Arabia, China
A Bahamas court on Tuesday temporarily barred the country’s government from agreeing to let US prosecutors pursue part of their criminal case against Sam Bankman-Fried, the indicted founder of now-bankrupt cryptocurrency exchange FTX. Those charges were not in Bankman-Fried’s initial eight-count indictment last December, which focused on the collapse of FTX the previous month, but they were added after his extradition. The Bahamas Supreme Court said the country’s foreign affairs minister and attorney general could not consent to the new charges until Bankman-Fried had a formal chance to object. In papers filed late Monday in Manhattan federal court, Bankman-Fried’s lawyers said a sixth charge alleging US campaign finance violations should also be dismissed because the Bahamas did not consent to it. His lawyers want the six charges dismissed, or tried separately from charges of stealing from customers and lying to investors and lenders.
Persons: Sam Bankman, FTX, Fried, Loren Klein, Lewis Kaplan Organizations: US, Prosecutors Locations: Manhattan, Caribbean, Bankman, Bahamas, United States
Opinion | The Trump Case and the Bathroom Files
  + stars: | 2023-06-12 | by ( ) www.nytimes.com   time to read: +1 min
Justice System Put on Trial as Trump Denounces the Rule of Law” (news analysis, front page, June 11):Contrary to this analysis of the documents case against former President Donald Trump, what is being tested is not the credibility of the justice system. Mr. Trump’s completely predictable efforts to undermine confidence in the legal process are pure bluster. What is actually at stake is the credibility of the political system. Instead, early indications are that Mr. Trump’s base remains staunchly loyal to him. American democracy is imperiled if a significant segment of the voting public cannot see through dangerous, self-serving posturing.
Persons: , Donald Trump, Trump’s, Abraham Lincoln’s Organizations: U.S, Trump Locations: United States
The FTC just filed a new lawsuit to seek to stop Microsoft's purchase of Activision Blizzard. Microsoft has been trying to win the OK from global regulators for the nearly $70 billion purchase. This suit, filed in federal court in San Francisco, seeks to stop the deal from closing. "We welcome the opportunity to present our case in federal court," Brad Smith, Microsoft's vice chair and president, said in a statement Monday. "By filing in federal court to enjoin the transaction, the FTC is showing that it won't back down in the face of Microsoft's escalatory tactics."
Persons: Brad Smith, Matt Kent Organizations: FTC, Activision Blizzard, Microsoft, Activision, Morning, Federal Trade Commission, Sony, PlayStation, Nintendo, UK's, Public Citizen, Public Locations: San Francisco, China, Japan, Brazil, South Korea
Borrowers who are being transferred to a different servicer should receive alerts via email, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. These notices will explain any steps you'll need to take, he said, and include information on your new servicer. watch nowBorrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Borrowers can check who their new servicer is by logging in to StudentAid.gov., Kantrowitz said. Also, Kantrowitz said, "whenever there is a change of loan servicer, there can be problems transferring borrower data.
Persons: Berk, Scott Buchanan, Kantrowitz, Buchanan, You'll Organizations: Istock, Student Loan, Alliance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services Locations: MOHELA, Missouri, Granite State, StudentAid.gov
FBI agents flew with van der Sloot on a US Department of Justice plane to an airport in Birmingham, Alabama, where he landed Thursday afternoon. Van der Sloot was seen leaving the Ancón 1 prison in Lima early Thursday, as he was driven away in a black van while in the custody of law enforcement. Peru initially agreed to extradite van der Sloot to the US to face those charges only after he serves his murder sentence. “I want to go to the US,” van der Sloot told Altez in a letter. Holloway was last seen alive with van der Sloot and two other men leaving a nightclub in Aruba 18 years ago.
Persons: Joran van der Sloot, Natalee Holloway, van der Sloot, Holloway’s, Beth Holloway, John Kelly, van, Sloot, , Van der Sloot, Daniel Maurate, , Joran Van Der Sloot, Elizabeth Ann Holloway, Maximo Altez, Altez, ” van der Sloot, Stephany Flores, Holloway, – van der Sloot, Deepak, Satish Kalpoe Organizations: CNN, Alabama, Dutch, FBI, US Department of Justice, Northern District of Alabama, Agents, Peru’s Air Force Base Grupo, , CNN en Espanol, Police Locations: United States, Aruba, Birmingham , Alabama, Northern District, Netherlands, Holloway’s, Alabama, Peru, Lima, Lima , Peru, America
A bit of background for the uninitiated:Men’s pro golf in North America has been dominated by the PGA Tour for decades. Last year, the Saudi sovereign wealth fund spent an estimated $2 billion to form a rival league, LIV Golf, to challenge PGA’s dominance. LIV attracted many of the sport’s top players away from the PGA Tour and Europe’s DP World Tour by offering more prize money. A long legal battle followed, and LIV golfers were banned from established tours. It is pronounced like “live.” As in, “Please don’t kill me, I want to live.”Oh, yeah — that brings me to the whole “why you should care” bit, and why many pro golfers and fans are apoplectic over the tie-up.
Persons: CNN Business ’, LIV Golf, LIV, “ LIV ”, Jamal Khashoggi, sportswashing, Phil Mickelson, Greg Norman, soccer’s Cristiano Ronaldo —, Chris Isidore, Bloomberg, it’s, , Peter Coy, , you’ll Organizations: CNN Business, New York CNN, PGA Tour, PGA, Bloomberg, US Justice Department, Tour, US Federal Trade Commission, New York Times Locations: New York, North America, Saudi, Saudi Arabia
Former President Donald Trump greets supporters at a Team Trump volunteer leadership training event held at the Grimes Community Complex on June 01, 2023 in Grimes, Iowa. Donald Trump on Wednesday said he hasn't been told he's been indicted, while a spokesman for him testified before a Florida federal grand jury investigating the former president's handling of classified documents after leaving the White House. "No one has told me I'm being indicted," Trump said in a post on his Truth Social platform. An FBI raid on Trump's residence at his Mar-a-Lago club in Palm Beach, Florida, last August uncovered many documents marked classified. The raid occurred three months before Trump announced he would seek the Republican presidential nomination in 2024.
Persons: Donald Trump, hasn't, he's, I'm, Trump Organizations: Team Trump, White, FBI, Trump Locations: Grimes, Grimes , Iowa, Florida, Lago, Palm Beach , Florida
Vaping helps fuel huge rise in bad behavior on planes
  + stars: | 2023-06-05 | by ( Maureen O'Hare | ) edition.cnn.com   time to read: +3 min
CNN —There was the hope that when mask mandates on planes ended and people got used to traveling again, airplane passenger behavior might improve. Unruly passenger incidents were more than a third higher in 2022 than in 2021, a new global analysis by the International Air Transport Association (IATA) has revealed. Incidents of physical abuse remain thankfully rare but had a worryingly huge increase of 61% in 2022 over 2021. Zero tolerance“The increasing trend of unruly passenger incidents is worrying. IATA also wants to increase guidance, training and sharing of best practice when it comes to preventing and de-escalating incidents.
Persons: , Conrad Clifford, Said Clifford, , Clifford Organizations: CNN, International Air Transport Association, US Federal Aviation Administration Locations: Paris, Canada, Montreal
CNN —A disruptive passenger on a Friday flight from Paris, France, to Detroit, Michigan, is facing criminal charges after his behavior caused the plane to be diverted to Canada, police said. The flight, operated by Delta Air Lines, left Charles de Gaulle airport in Paris Friday morning and was in the air for about six hours before landing in Canada, according to flight tracker FlightAware. After about 90 minutes at the Canadian airport, it took off and headed to Detroit. “Delta has zero tolerance for unruly behavior, especially when it potentially compromises the safety of our customers and flight crew,” a Delta spokesperson said in a statement regarding the incident. Last year there were more than 2,300 reports of unruly passenger behavior, according to US Federal Aviation Administration statistics.
Persons: Cpl, Jolene Garland, Garland, Charles de Organizations: CNN, Royal Canadian Mounted Police, Stephenville, Delta Air Lines, Delta, US Federal Aviation Administration, FAA Locations: Paris, France, Detroit , Michigan, Canada, Newfoundland, Stephenville Municipal, Charles de Gaulle, Detroit
Allen Winsor, 46, has been a US District Judge in the Northern District of Florida since 2019. Before he became a US district judge, Winsor was a judge in Florida's First District Court of Appeal from 2016-2019. Winsor previously dismissed a lawsuit challenging the 'Don't Say Gay' billIn February 2023, Winsor issued a 21-page ruling dismissing a lawsuit challenging Florida's Parental Rights in Education Act, which opponents called the "Don't Say Gay" bill. In the hour-and-a-half-long conversation, four state solicitors general discussed various federal laws and lawsuits that they felt impeded states' rights. "He does not possess the neutrality and fair-mindedness necessary to serve in a lifetime position as a federal judge."
Persons: Allen Winsor, He's, Ron DeSantis, Winsor, , Mark Walker, Insider's Kimberly Leonard, Donald Trump, Sen, Joe Manchin, — didn't, Trump, Mr, Pam Bondi's Organizations: Northern District of, Walt Disney Parks, Resorts, Gov, Service, Walt Disney Co, Disney, US Senate, Florida's, Auburn University, University of Florida, Plaintiffs, Federalist Society, Committee, Walt Disney World, Conference, Civil, Hum­­­­an Rights, Associated Press Locations: Northern District, Northern District of Florida, Florida, West Virginia, Orlando, Lake Buena Vista , Florida
The Hang Seng (HSNGY)closed 4% higher, notching its biggest one-day gain in three months. Brent crude, the benchmark for global oil prices, gained almost 1.6% to trade at $75.46 a barrel. Hang Seng reboundsIn Hong Kong, the two best-performing stocks were Chinese real estate developers Longfor Group (LNGPF) and Country Garden Services, soaring 17% and 12% respectively. Citing people familiar with the matter, Bloomberg reported Friday that China was working on such measures. Elsewhere in Asia, South Korea’s Kospi index ended the day 1.3% up, Japan’s Nikkei 225 was 1.2% higher, and the Shanghai Composite Index gained 0.8%.
Persons: Philip Jefferson, Joe Biden, , , Richard Hunter, ” Dow, Germany’s DAX, DAX Organizations: London CNN — Global, US, Markets, Treasury, Interactive, Nasdaq, CAC, Brent, Longfor, Garden Services, Bloomberg, Nikkei Locations: Hong Kong, London, China, France, Qingdao, Asia, South, Shanghai
Since then, I've built far more skills and become far more independent than I could've in college. So I dropped out and decided to live out of my car instead. It became clear to me that college was not preparing me to be an independent adultFor me, college was basically summer camp. There are national grasslands, national forests, and huge tracts of unused scrubland managed by various federal agencies. I've gained a lot from being voluntarily homelessDon't get me wrong; it's lousy to live out of your car for many reasons.
Persons: I've, , irresponsibly, Mount Elbert —, Lady Hercules, It's Organizations: Service, AmeriCorps, Rockies Locations: Steamboat Springs , Colorado, Rocky, Vail, Mount, Midwest, buttes, Nebraska, Wyoming, Pennsylvania
London CNN —Inflation in Europe has fallen to its slowest pace since Russia invaded Ukraine, bolstering the case for the region’s central bank to bring interest rate hikes to an end soon. That’s the lowest rate of inflation since February 2022, when Moscow launched a full-scale invasion of its neighbor, sending global energy prices soaring. The pace of food price rises eased for the second month running in May, while energy prices actually fell. Inflation has fallen sharply in Germany, France, Italy and Spain, national data published Wednesday showed. Separate data published Tuesday showed lending by banks in the euro area stagnated further in April, with loans to households barely growing at all.
Persons: Price, Christine Lagarde, ” Lagarde, ” Franziska Palmas, , Bert Colijn Organizations: London CNN, Russia, European Central Bank, ECB, US Federal Reserve, Bank of, Capital Economics, ING Locations: Europe, Ukraine, Moscow, Germany, France, Italy, Spain, Bank of England, Palmas
The European Central Bank is tightening as well to combat surging prices, with rates at levels not seen since the Great Financial Crisis in 2008. In addition, central bank tightening can also lead to a decline in bitcoin prices." "There's no doubt that bitcoin's price as well as wider crypto market movements are directly impacted by the US Federal Reserve and central bank policies. "We can therefore expect a continued disenfranchisement with the US dollar and uptake of bitcoin and other crypto assets. This will be reflected in price and we can surely expect upward price movements in bitcoin, even in 2023," Caselin told Insider.
Persons: Bitcoin, , Tacking, Christine Lagarde, Birgham Santos, Santos, Ben Caselin, bitcoin, Caselin Organizations: Service, Traders, Federal, European Central Bank, Lama, US Federal Reserve Locations: solana, bitcoin
The space plane is designed to then detach from the mothership, fire its rocket engine and swoop straight up with its two pilots at the controls. Virgin Galactic confirmed just before 12:30 p.m. The space plane then coasted back to a landing back at New Mexico’s Spaceport America. The SpaceShipOne technology was parlayed into a larger space plane design, called SpaceShipTwo, which Virgin Galactic still flies today. Virgin Orbit, a sister company to Virgin Galactic that is focused on launching satellites to space on a small rocket, filed for bankruptcy in April.
“Quantitative tightening,” or QT, by top central banks will suck $2 trillion in liquidity out of the financial system over the next two years, according to a recent analysis by Fitch Ratings. Investors and banks calibrate their strategies to the amount of money in the financial system, he noted. Then, central banks started withdrawing liquidity from the financial system. Even worse, many banks have large holes on their balance sheets because central banks have simultaneously jacked up interest rates. While government debt levels have skyrocketed in recent years, the cost of servicing that debt has been tamped down by the willingness of central banks to buy large chunks of it.
As more devices in our lives run on software, manufacturers have started to exert more control over their products even after the customer has taken them home. In some cases, companies force customers to use their repair services, disabling the product if they try to fix it themselves. Companies are just beginning to monetize this control, with dystopian methods and the assistance of America's unbalanced copyright laws. For companies, the appeal of subscriptions is pretty straightforward: a steady stream of revenue and a lot more money raised from their customers over time. In other cases, companies have tried to block consumers from accessing certain features at all unless they pay up first.
An investigative committee of the U.S. Federal Circuit Court of Appeals rejected a request by Judge Pauline Newman, 95, to transfer the probe to another circuit. The Washington-based Federal Circuit said it will not comment on the order or other related documents it released on Tuesday. "Though it is difficult to say this, I believe Judge Newman is simply losing it mentally," one staffer told judicial investigators. The Federal Circuit disclosed the probe last month, citing concerns about Newman's ability to handle cases and her refusal to cooperate with the investigation. Newman was appointed by President Ronald Reagan in 1984 to the patent law-focused Federal Circuit, which often hears major cases involving technology and pharmaceutical companies.
Workers at a rural Georgia factory that builds electric school buses under generous federal subsidies voted to unionize on Friday, handing organized labor and Democrats a surprise victory in their hopes to turn huge new infusions of money from Washington into a union beachhead in the Deep South. The company, Blue Bird in Fort Valley, Ga., may lack the cachet of Amazon or the ubiquity of Starbucks, two other corporations that have attracted union attention. But the 697-to-435 vote by Blue Bird’s workers to join the United Steelworkers was the first significant organizing election at a factory receiving major federal funding under legislation signed by President Biden. “This is just a bellwether for the future, particularly in the South, where working people have been ignored,” Liz Shuler, president of the A.F.L.-C.I.O., said Friday evening after the vote. “We are now in a place where we have the investments coming in and a strategy for lifting up wages and protections for a good high-road future.”The three bills making up that investment include a $1 trillion infrastructure package, a $280 billion measure to rekindle a domestic semiconductor industry and the Inflation Reduction Act, which included $370 billion for clean energy to combat climate change.
Christopher Waller, governor of the US Federal Reserve, during a Fed Listens event in Washington, D.C., US, on Friday, Sept. 23, 2022. Federal Reserve Governor Christopher Waller on Thursday cast doubt on the need for special focus on how banks are preparing for climate change risks. Thus, he said that conducting special tests for how banks are preparing for such events probably shouldn't fall under the Fed's purview. The stress tests focus on how banks would respond to financial and economic crises. A financial stability report in 2020 first addressed the topic.
Persons: Christopher Waller, Waller Organizations: US Federal Reserve, Washington , D.C, Federal Locations: Washington ,, U.S, Madrid, United States
President Joe Biden will host Republican House Speaker Kevin McCarthy and other congressional leaders at the White House on Tuesday for a critical meeting on raising the US debt ceiling. The closest analogue to the US debt ceiling is the set-up in Denmark. Lawmakers did not want the debt ceiling to become a proxy for difficult conversations about the government’s fiscal plans. That makes it less likely the debt ceiling could be turned into a political football. Even so, it’s clear that in Denmark, the debt limit has enabled the smooth functioning of government, Kirkegaard said.
Premarket stocks: This is how the banking crisis ends
  + stars: | 2023-05-05 | by ( Julia Horowitz | ) edition.cnn.com   time to read: +7 min
London CNN —US regional bank stocks look set to rebound Friday but are still down sharply this week, accentuating fears that federal regulators have not yet contained a crisis in the sector that could shake the financial system. Breaking it down: Wall Street is on the hunt for any signs of vulnerability in the banking system after the high-profile demise of Silicon Valley Bank, Signature Bank and First Republic Bank in a matter of weeks. While authorities stepped in to protect depositors at those banks, investors were left with stocks that were suddenly worthless. “I believe it really only ends after we get some type of government intervention,” Michaud told me. The value of short positions in regional bank stocks reached $15.1 billion in mid-April, up from about $13.7 billion one year ago, according to data from S3 Partners.
Testimony continued in E. Jean Carroll's rape and defamation lawsuit against Donald Trump on Thursday. Carol Martin told jury about how Carroll confided in her about the alleged rape in the mid-1990s. Former President Donald Trump and E. Jean Carroll. "I'm here because I want to reiterate and remember what my friend E. Jean Carroll told me 27 years ago. In another message, Martin said she thinks Carroll was "acting a little scary" and was "in too deep" but "loving the adulation."
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