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Earlier: FTX founder Sam Bankman-Fried is on trial for fraud and conspiracy charges after the collapse of his crypto empire last year. WSJ’s Alexander Osipovich breaks down what happened to FTX and what to look for as the trial unfolds. Photo illustration: Annie ZhaoJurors are expected to begin deliberating Thursday afternoon on whether FTX founder Sam Bankman-Fried is guilty of fraud and other crimes that contributed to the collapse of the crypto exchange. The deliberations cap a nearly monthlong trial in which jurors heard testimony from more than 20 witnesses, including Bankman-Fried. On Thursday morning, a prosecutor delivered a rebuttal to the closing arguments made by Bankman-Fried’s defense team.
Persons: Sam Bankman, WSJ’s Alexander Osipovich, Annie Zhao, Fried
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. WSJ’s Dion Rabouin explains. Illustration: Elizabeth SmelovApple said sales fell for the fourth consecutive quarter, including a decline in China that came as the company faces a broad economic slowdown in the country and new competition from rival Huawei Technologies. The September quarter marks the fourth straight period in which Apple reported year-over-year declines in total revenue, the longest such slump in years. Apple sales were $89.5 billion, down less than 1% from the previous year and largely in line with analyst estimates, even as net income of about $23 billion exceeded expectations.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov Apple Organizations: Huawei Technologies, Apple Locations: China
Diabetes drugs could become an effective way to treat behavioral issues and addiction. WSJ’s Daniela Hernandez breaks down the science on how they work and how they could change psychiatry forever. Photo illustration: Elizabeth SmelovWegovy maker Novo Nordisk reported soaring profit, boosted by blockbuster weight-loss drugs that have quickly made the Danish drugmaker Europe’s most valuable company. Surging demand for the drugs has supercharged the company’s stock price, tilted the scales of its home economy in Denmark and triggered a frenzy on Wall Street over how the treatments and others like it might affect other industries, including snack foods and airlines.
Persons: WSJ’s Daniela Hernandez, Elizabeth Smelov Organizations: Novo Nordisk Locations: Danish, Denmark
Beneath Gaza, a labyrinth of tunnels used by Hamas will complicate any potential Israeli ground offensive in the Palestinian enclave. WSJ’s Rory Jones—who visited the tunnels in 2014—explains the unique challenge they pose for Israel. intelligence agencies all but stopped spying on Hamas and other violent Palestinian groups in the years after the Sept. 11, 2001, terrorist attacks on the U.S., instead directing resources to the hunt for the leaders of al Qaeda and, later, Islamic State, according to U.S. officials familiar with the shift. Calculating that Hamas had never directly threatened the U.S. and burdened with other spying priorities, Washington ceded the responsibility to Israel, confident that its aggressive security services would detect any threat, the U.S. officials said. It should have been “a well-placed bet,” said one senior counterterrorism official.
Persons: Rory Jones —, , Yousef Mohammed, al, Organizations: Zuma Press WASHINGTON —, Islamic, Hamas, Washington Locations: Gaza, Israel, Zuma Press WASHINGTON — U.S, al Qaeda, Islamic State, U.S
FTX founder Sam Bankman-Fried is on trial for fraud and conspiracy charges after the collapse of his crypto empire last year. WSJ’s Alexander Osipovich breaks down what happened to FTX and what to look for as the trial unfolds. Photo illustration: Annie ZhaoProsecutors and defense attorneys clashed Wednesday over whether FTX founder Sam Bankman-Fried was a liar who stole billions of dollars—or an unconventional executive who made mistakes. During his closing argument, Assistant U.S. Attorney Nicolas Roos told jurors that almost a year ago, when thousands of people were trying to withdraw their money from the collapsing crypto exchange, their dread turned to despair.
Persons: Sam Bankman, WSJ’s Alexander Osipovich, Annie Zhao Prosecutors, Fried, Nicolas Roos Organizations: U.S
Parents Left Out of Biden’s New Student Loan Plan
  + stars: | 2023-10-31 | by ( Julia Carpenter | ) www.wsj.com   time to read: +1 min
The Supreme Court overturned President Biden’s student-debt forgiveness plan, claiming it exceeded the authority Congress delegated to the executive branch. Photo illustration: Elise DeanMillions of parents who took out student loans on behalf of their children were left out of the Biden administration’s new repayment plans. Parent Plus loans, which account for more than $111 billion in outstanding student debt, aren’t eligible for the lower monthly payments and shorter paths to forgiveness offered under the new Saving on a Valuable Education (SAVE) program announced in January. Neither were they part of the one-time adjustment in July to other income-driven repayment programs that awarded borrowers nearly $40 billion dollars in debt relief. There is a way to convert Parent Plus loans into one that is eligible, but it is complicated.
Persons: Biden’s, WSJ’s Andrew Restuccia, Elise Dean Organizations: Biden, Parent, Valuable
The Supreme Court overturned President Biden’s student-debt forgiveness plan, claiming it exceeded the authority Congress delegated to the executive branch. WSJ’s Andrew Restuccia explains what the decision means for borrowers. Photo illustration: Elise DeanMillions of parents who took out student loans on behalf of their children were left out of the Biden administration’s new repayment plans. Neither were they part of the one-time adjustment in July to other income-driven repayment programs that awarded borrowers nearly $40 billion dollars in debt relief. There is a way to convert Parent Plus loans into one that is eligible, but it is complicated.
Persons: Biden’s, WSJ’s Andrew Restuccia, Elise Dean Organizations: Biden, Parent, Valuable
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressAmerican workers are still commanding big pay raises, though not quite as beefy as last year. That is good news for workers but a potential complication for the Federal Reserve’s fight to lower inflation. Employers spent 1.1% more on wages and benefits in July through September than in the prior three months, according to the Labor Department’s employment-cost index, released Tuesday. That was slightly better than the 1% gain in the second quarter and a sign that wage pressures remained strong as economic growth accelerated.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press American, Federal, Employers, Labor
Chip maker Nvidia broke into the exclusive club of companies that have a $1 trillion market cap. WSJ’s Asa Fitch breaks down how Nvidia got there—and why AI is fueling the company’s rapid growth. Photo illustration: Annie ZhaoSINGAPORE—New U.S. export controls may compel artificial-intelligence giant Nvidia to cancel billions of dollars in next-year orders for its advanced chips to China, a move that could deprive Chinese tech companies of crucial AI resources. The Santa Clara, Calif.-based company had already finished delivering orders of its advanced AI chips to China for this year, according to people familiar with the matter, and was pushing to deliver some 2024 orders in advance before the new rules were scheduled to come into effect in mid-November.
Persons: WSJ’s Asa Fitch, Annie Zhao Organizations: Nvidia, Annie Zhao SINGAPORE — Locations: Annie Zhao SINGAPORE, Annie Zhao SINGAPORE — New, China, Santa Clara, Calif
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. Illustration: Elizabeth SmelovChina’s surprise investigation into Apple supplier Foxconn, a key link in the iPhone supply chain, may be intended to send a message. The one Apple and its suppliers actually receive might do China more harm than good. Chinese authorities have launched tax and land-use probes into subsidiaries of Foxconn , formally known as Hon Hai Precision Industry , the company confirmed last week. That is surprising since Foxconn, which is the world’s largest contract electronics manufacturer, has long had an amicable relationship with China—and is one of the biggest employers in the country.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov China’s Organizations: Apple, Foxconn, Hai Precision Industry Locations: China
So you just traded in your old iPhone to get a deal on a new one. Where does that old phone go? WSJ’s Joanna Stern follows an iPhone through the refurbishment process to explain why the second-hand phone market is booming. Photo illustration: Kenny WassusU.S. wireless companies are showing they can still upsell customers in no hurry to buy a new smartphone. AT&T , T-Mobile US and Verizon Communications made more money from providing wireless services in the third quarter compared with the prior year as they added phone lines and nudged many clients toward more expensive plans.
Persons: Joanna Stern, Kenny Wassus Organizations: Mobile, Verizon Communications
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressFederal Reserve officials have said for more than a year that beating inflation could require them to hold interest rates higher for longer than investors expected. The swift run-up in long-term Treasury yields—to around 5% from 4% in early August—suggests Wall Street now agrees. As a result, borrowing costs for U.S. businesses and households are rising in ways that could allow the Fed to suspend its historic run of interest-rate increases.
Persons: WSJ’s Dion Rabouin, Li Jianguo, Organizations: Zuma Press Federal Reserve
My iPhone Battery Went Bad in Just a Year. Here’s Why.
  + stars: | 2023-10-27 | by ( ) www.wsj.com   time to read: 1 min
My iPhone Battery Went Bad in Just a Year. Every iPhone has a hidden “Maximum Capacity" setting to figure out the health of your battery. WSJ’s Joanna Stern investigates why her iPhone’s battery degraded so much in one year. Hint: Battery cycle counts. Photo illustration: Annie Zhao/The Wall Street Journal
Persons: Joanna Stern, Annie Zhao Organizations: Street
The tenure of Lynne Tracy, U.S. ambassador to Russia, comes at a time when relations between the U.S. and Moscow have rarely been as fraught as they are now. WSJ’s Russia Bureau Chief Ann Simmons talks with Tracy about the challenges. Photo: Valery Sharifulin/TASS via Zuma PressThe moment when ambassadors present their credentials to their hosts is usually a staid affair. When the U.S. ambassador presented herself at the Kremlin in April, Russian President Vladimir Putin railed at Washington during the televised ceremony, accusing it of sparking the war in Ukraine. With Putin set off behind a podium at the other end of the Alexander Hall, there was no way for Lynne Tracy or the other new ambassadors to respond.
Persons: Lynne Tracy, Ann Simmons, Tracy, Valery Sharifulin, Vladimir Putin, Putin, Alexander Hall Organizations: U.S, Kremlin Locations: U.S, Russia, Moscow, WSJ’s Russia, Washington, Ukraine
What the Latest U.S. GDP Report Means for Inflation and Odds of RecessionWSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma Press
Persons: Dion Rabouin, Li Jianguo Organizations: Zuma Locations: U.S
Moderately higher inflation in September would keep Fed officials on track to hold interest rates steady at its Oct. 31-Nov. 1 policy meeting. They are closely watching underlying price trends to gauge whether they have raised short-term interest rates enough to slow the economy and tame inflation. The Fed over the past 20 months has raised interest rates at the fastest pace in four decades. The Fed last raised rates in July, lifting its benchmark federal-funds rate to a range between 5.25% and 5.5%, a 22-year high. Has recent inflation progress stalled?
Persons: WSJ’s Dion Rabouin, Li Jianguo, saul loeb Organizations: Zuma, Wall, Fed, Agence France, Commerce, Commerce Department
Every iPhone has a hidden ‘Maximum Capacity’ setting to figure out the health of your battery. WSJ’s Joanna Stern investigates why her iPhone’s battery degraded so much in one year. Hint: Battery cycle counts. Photo illustration: Annie Zhao/The Wall Street JournalYou know what they say: iPhone batteries are like a box of organic raspberries. Your iPhone’s lithium-ion battery will expire and, unfortunately, there’s no “Best Before” label.
Persons: Joanna Stern, Annie Zhao
Inflation Trends Keep Fed Rate Hikes on Pause
  + stars: | 2023-10-27 | by ( Harriet Torry | Nick Timiraos | ) www.wsj.com   time to read: 1 min
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressInflation’s summer decline slowed last month. But inflation has improved enough recently for Federal Reserve officials to hold interest rates steady at their meeting next week. The personal-consumption expenditures price index, the Fed’s preferred inflation gauge, rose 0.4% in September from the prior month, the same pace as in August, the Commerce Department said Friday. So-called core prices, which exclude volatile food and energy categories, increased 0.3% in September, compared with a 0.1% rise in August.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press, Federal Reserve, Commerce Department
What Will the Economy Do for an Encore?
  + stars: | 2023-10-26 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
Economists expected economic growth to rise significantly and now that we’ve got the latest GDP report, we’ll break down the biggest takeaways in the data. WSJ’s Dion Rabouin will unpack the report and explain what really matters. Photo: Li Jianguo/Zuma PressA lot of investors are familiar with Stein’s law, named after the late economist Herbert Stein : “If something cannot go on forever, it will stop.”Which brings us to Thursday’s gross-domestic-product report. The Commerce Department reported that the U.S. economy grew at an inflation-adjusted 4.9% annual rate, the biggest gain since the fourth-quarter of 2021, and far stronger than the less-than-2% rate that Federal Reserve policymakers think it needs to settle in at to avoid overheating.
Persons: we’ve, WSJ’s Dion Rabouin, Li Jianguo, Herbert Stein Organizations: Commerce Department, Federal Locations: U.S
Economists expected economic growth to rise significantly and now that we’ve got the latest GDP report, we’ll break down the biggest takeaways in the data. WSJ’s Dion Rabouin will unpack the report and explain what really matters. Photo: Li Jianguo/Zuma PressU.S. economic growth surged this summer, as consumers boosted spending ahead of growing challenges that could limit their ability to maintain the momentum. Gross domestic product grew at a seasonally- and inflation-adjusted 4.9% annual rate in the third quarter, the Commerce Department reported Thursday. That was the fastest rate since late 2021 and much stronger than economists were anticipating just a few months ago.
Persons: we’ve, WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press U.S, Gross, Commerce Department
FTX founder Sam Bankman-Fried is on trial for fraud and conspiracy charges after the collapse of his crypto empire last year. WSJ’s Alexander Osipovich breaks down what happened to FTX and what to look for as the trial unfolds. Photo illustration: Annie ZhaoFTX founder Sam Bankman-Fried previewed a potential defense Thursday when he told a federal judge that he relied on the blessing of lawyers to make business decisions such as deleting communications and making loans to himself, actions that prosecutors said allowed him to commit the crimes that led to the implosion of his crypto exchange. Bankman-Fried, on trial for fraud, money laundering and other offenses, had been expected to testify in front of a Manhattan federal jury on Thursday afternoon. Instead, in what amounted to an unusual practice session after the jury was dismissed for the day, U.S. District Judge Lewis Kaplan required the FTX founder to walk through several subjects that were in dispute so the judge could rule on what Bankman-Fried could say to jurors.
Persons: Sam Bankman, WSJ’s Alexander Osipovich, Annie Zhao FTX, Fried, District Judge Lewis Kaplan Organizations: District Locations: U.S
How Chinese Aggression Has Pushed the Philippines Closer to the U.S. Located near Taiwan and the South China Sea, the Philippines has found itself at the center of a global effort to counter China. WSJ’s Shelby Holliday traveled there to learn about the nation’s strategic importance and its growing ties with the U.S. Photo: David Fang
Persons: WSJ’s Shelby Holliday, David Fang Organizations: U.S Locations: Philippines, Taiwan, South China, China
How Hamas Uses an Underground Maze of Tunnels Beneath the Gaza StripBeneath Gaza, a labyrinth of tunnels used by Hamas will complicate any potential Israeli ground offensive in the Palestinian enclave. WSJ’s Rory Jones—who visited the tunnels in 2014—explains the unique challenge they pose for Israel. Photo: Yousef Mohammed/Zuma Press
Persons: Rory Jones —, , Yousef Mohammed, Zuma Locations: Gaza, Israel
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressU.S. economic growth surged this summer at the fastest pace since 2021, as consumers spent at a blockbuster rate that will be difficult to sustain. Gross domestic product expanded at a 4.9% seasonally- and inflation-adjusted annual rate in the third quarter—more than double the second quarter pace—the Commerce Department reported Thursday. The acceleration won’t change the Federal Reserve’s plans to hold rates steady at their meeting next week.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press U.S, Gross, Commerce Department
Located near Taiwan and the South China Sea, the Philippines has found itself at the center of a global effort to counter China. WSJ’s Shelby Holliday traveled there to learn about the nation’s strategic importance and its growing ties with the U.S. Photo: David FangSINGAPORE—A dispute between China and the Philippines, a U.S. ally, is rapidly escalating over an unusual military outpost: a World War-II era ship that is leaky, riddled with holes, covered in rust and sitting atop a reef in the South China Sea. The decrepit ship, the BRP Sierra Madre, and the small detachment of marines aboard are defending the Philippines’ claim to Second Thomas Shoal, located about 100 miles off its west coast. The country grounded the ship on the reef 2½ decades ago to stave off China’s expanding control over the South China Sea.
Persons: WSJ’s Shelby Holliday, David Fang SINGAPORE, Thomas Organizations: U.S, BRP, BRP Sierra Madre Locations: Taiwan, South China, Philippines, China, U.S, BRP Sierra
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