ReportWire

Tag: a

  • Stock futures slide after Fitch’s U.S. downgrade sours the market mood

    Stock futures slide after Fitch’s U.S. downgrade sours the market mood

    [ad_1]

    U.S. stock futures stumbled Wednesday after markets were rattled by a downgrade to the U.S. government’s credit rating.

    How are stock-index futures trading

    • S&P 500 futures
      ES00,
      -0.73%

      dipped 42 points, or 0.9%, to 4559

    • Dow Jones Industrial Average futures
      YM00,
      -0.51%

      fell 257 points, or 0.7%, to 35500

    • Nasdaq 100 futures
      NQ00,
      -1.04%

      lost 204 points, or 1.3%, to 15613

    On Tuesday, the Dow Jones Industrial Average
    DJIA
    rose 71 points, or 0.2%, to 35631, the S&P 500
    SPX
    declined 12 points, or 0.27%, to 4577, and the Nasdaq Composite
    COMP
    dropped 62 points, or 0.43%, to 14284.

    What’s driving markets

    Equity-index futures are succumbing to a broad risk off tone across markets after rating agency Fitch downgraded the U.S.’s credit rating from AAA to AA+, citing “expected fiscal deterioration” and an “erosion of governance”.

    Fitch’s move follows a similar downgrade by S&P more than a decade ago. The U.S. Treasury market acts as a global benchmark upon which many financial products are based and so uncertainty about its stability can cause anxiety for investors.

    The news found a stock market arguably vulnerable to unwelcome surprises, with the S&P 500 having already gained 19.2% this year and the tech-heavy Nasdaq Composite up 36.5%.

    The CBOE VIX Index , an option-based gauge of expected S&P 500 volatility, jumped 16% to 16.2, its highest in nearly four weeks.

    Traditional perceived havens saw demand, with the Japanese yen
    USDJPY,
    -0.41%

    gaining 0.7%, gold
    GC00,
    +0.34%

    nudging up to $1,950 an ounce, and benchmark German government bond yields
    BX:TMBMKDE-10Y
    moving lower. U.S. 10-year Treasury yields
    BX:TMUBMUSD10Y
    were little changed at 4.03%.

    However, most analysts did not see the downgrade causing the stock market much long term damage.

    “While debt downgrades seldom, if ever, have long legs, investors may pause and let the dust settle before re-entering risk markets. However, within this super market-friendly environment of stable growth and a Fed close to the end of its hiking cycle creating fertile ground for stock gains, its unlikely risk sentiment will wander too far off the soft landing path,” said Stephen Innes, managing partner of SPI Asset Management.

    Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said “the market remains sensitive as the final throes of earnings season rumble on, but 82% of S&P 500 companies that have reported results so far have surprised to the upside, offering a bit of a sentiment buffer.”

    Earnings results due Wednesday include CVS Health
    CVS,
    -0.99%
    ,
    Humana
    HUM,
    +0.28%

    and Carlyle Group
    CG,
    -0.56%

    before the opening bell, followed after the close by PayPal
    PYPL,
    -0.38%
    ,
    Shopify
    SHOP,
    -0.19%

    and Qualcomm
    QCOM,
    -0.07%
    .

    U.S. economic updates set for release on Wednesday include the ADP employment report at 8:15 a.m. Eastern.

    [ad_2]

    Source link

  • ‘You’re too honest’: Donald Trump’s alleged Jan. 6 conspiracies, explained

    ‘You’re too honest’: Donald Trump’s alleged Jan. 6 conspiracies, explained

    [ad_1]

    Once is an accident, twice is a coincidence and three times is a conspiracy.

    Former President Donald Trump is accused by federal prosecutors of engaging in three major conspiracies ahead of the Jan. 6, 2021, Capitol riot to subvert the process of counting and certifying the vote before Congress in his bid to hold on to power despite having lost the 2020 election.

    While spreading lies about how votes had been illegally cast, tampered with or miscounted in order to build mistrust among the public about the election’s outcome, special counsel Jack Smith says Trump and a group of six unnamed lawyers and advisers plotted to illegally meddle with the very basis of how presidential elections have been run in the U.S since its founding.

    A four-count indictment unsealed in federal court in Washington on Tuesday alleges that the group worked unrelentingly to tamper with how several states counted their ballots and the process by which states sent electors to Washington to finalize their vote. The indictment also accused Trump of pressuring the Justice Department and Vice President Mike Pence to intervene even though they had no standing to do so.   

    “Each of theses conspiracies — which built upon the widespread mistrust the defendant was creating through pervasive and destabilizing about election fraud — targeted a bedrock function of the United States federal government: the nation’s process of collecting, counting, and certifying the results of the presidential election,” the indictment read.

    Trump has dismissed the charges as being purely politicized.

    “The lawlessness of these persecutions of President Trump and his supporters is reminiscent of Nazi Germany in the 1930s, the former Soviet Union, and other authoritarian, dictatorial regimes,” a statement released by his campaign read. “President Trump has always followed the law and the constitution, with advice from many highly accomplished attorneys.”

    The charges allege three acts of conspiracy and one of obstructing an official proceeding. Here are the main legal arguments Smith makes against the former president:

    ‘We have lots of theories’

    Prosecutors say that starting almost immediately after the election on Nov. 3, 2020, Trump began a campaign to get officials in key states like Arizona, Nevada, New Mexico, Pennsylvania, Michigan, Wisconsin and Georgia to overturn the election results.

    Trump pressured state officials to throw the vote out based on allegations ranging from dead people voting to non-citizens casting ballots, and from voting machines being tampered to ballot-box stuffing, despite there being no evidence any of it had occurred. 

    “We don’t have evidence, but we have lots of theories,” one of Trump’s co-conspirators allegedly told the speaker of the house of Arizona, a Trump-backer, when asked what proof they had about electoral malfeasance.

    When officials in the states refused to go along with Trump’s request to decertify the results, the president continued to publicly trumpet false claims about voter fraud and attack local officials as “terrible people” who were in on the fraud, the indictment said.

    Smith said that Trump continued to make the claims despite having been told repeatedly by numerous people in multiple agencies — many of them his own supporters — that there was no truth to it and having lost case after case in court. 

    “When our research and campaign team can’t back up any of the claims made by our Elite Strike Force Legal Team, you can see why we’re 0-32 on our cases,” one senior campaign advisor said, according to the indictment. “It’s tough to own any of this when it’s all just conspiracy s*** beamed down from the mothership.”

    Smith argues that this effort amounted to using deceit to subvert the election’s result, which is against the law. 

    Phony electors

    One key component of the conspiracy case against Trump revolves around efforts to create a competing slate of electors from each challenged state.

    As part of the presidential electoral process, every state sends electors to Washington to deliver the vote to congress. It’s a mostly ceremonial procedure, but Trump’s legal team is accused of hatching a plot to send a second group of electors who backed Trump from several states in order to create confusion in Congress and force legislators in Washington to have to debate the election’s outcome.  

    No matter that the second slate of electors hadn’t been approved by officials in the states they purported to represent and were not authorized in any way, the indictment says. The effort was so patently bogus that Trump’s team even referred to the group as “phony electors” in their own correspondence, the indictment stated. 

    In the indictment, Smith said the effort amounted to a conspiracy to commit fraud.  

    ‘You’re too honest’

    A third leg of the conspiracy allegedly involved pressuring officials at the Justice Department and Pence to intervene in the election even though they had no standing to do so.  

    The indictment says Trump and his co-conspirators repeatedly communicated with then acting attorney general Jeffrey Rosen and insisted that he declare ahead of the Jan. 6 certification of the election by Congress that there had been evidence of fraud.

    When Rosen said he would not do that because there was no such evidence, Trump allegedly threatened to replace him with one of the unnamed co-conspirators included in the indictment. 

    At one point, a deputy White House counsel told the co-conspirator that “there is no world, there is no option in  which you do not leave the White House,” and warned that there would be “riots in the streets” if Trump attempted to remain in office, to which the co-conspirator allegedly said: “That’s why there is an Insurrection Act.”

    For weeks ahead of the Jan. 6 certification hearing in Congress, Trump and his cohorts pressured Pence to refuse to certify the vote tally, a purely ceremonial task the vice president has presided over since the country’s founding. 

    Pence steadfastly refused to do so, saying his legal team had told him there was no constitutional basis for the vice president to be able to overturn an election at the last minute. In a phone call less than a week before Jan. 6, Trump allegedly berated Pence and told him, “You’re too honest.”

    When a senior White House advisor told one of the unnamed co-conspirators that if Pence tried to overturn the election it would lead to violence in the streets, the co-conspirator allegedly said that there had been times in the country’s history where violence was necessary to protect the Republic, the indictment said.

    In the days and hours leading up to the Jan. 6 riot, Trump posted several messages on Twitter stating that Pence had the authority to overturn the election and continuing to pressure him to do so. 

    Exploiting the chaos

    On Jan. 6, after Pence issued a statement saying he did not have the authority to not certify the vote, protests outside Congress turned violent, with hundreds of rioters clashing with police and storming the building, delaying the proceedings.

    During the standoff, some of Trump’s co-conspirators tried to reach members of Congress and the Senate to convince them to further delay the certifying process in order to buy Trump more time to convince state legislatures to nullify the already-approved votes, the indictment says.

    Later that afternoon, Trump tweeted: “See, this is what happens when they try to steal an election. These people are angry. These people are really angry about it. This is what happens.” 

    [ad_2]

    Source link

  • Trump indicted by special counsel over efforts to overturn 2020 election

    Trump indicted by special counsel over efforts to overturn 2020 election

    [ad_1]

    Former President Donald Trump on Tuesday was indicted by a grand jury in Washington, D.C., in connection with the Justice Department’s probe into efforts to overturn the 2020 presidential election, including the Jan. 6, 2021, attack on the U.S. Capitol.

    Special counsel Jack Smith has been examining Trump’s actions leading up to the Jan. 6 attack. On that day, a mob of Trump supporters stormed the Capitol building in an attempt to disrupt the congressional certification of the election results.

    In Tuesday’s 45-page indictment, Trump was hit with four charges: conspiracy to defraud the U.S., conspiracy to obstruct an official proceeding, obstruction of and attempt to obstruct an official proceeding and conspiracy against rights.

    “The attack on our nation’s capitol on Jan. 6, 2021, was an unprecedented assault on the seat of American democracy,” Smith said at a news conference.

    “As described in the indictment, it was fueled by lies — lies by the defendant targeted at obstructing a bedrock function of the U.S. government, the nation’s process of collecting, counting and certifying the results of the presidential election.”

    Trump is expected to be arraigned on Thursday in Washington.

    “In this case, my office will seek a speedy trial so that our evidence can be tested in court and judged by a jury of citizens,” Smith also said.

    The indictment said Trump had six co-conspirators, and it indicated that four of the individuals were attorneys, one was a political consultant and another was a Justice Department official.

    Trump has denied wrongdoing and is the overwhelming favorite in polls for the GOP nomination for the 2024 presidential race, far ahead in a crowded field that includes Florida Gov. Ron DeSantis, former Vice President Mike Pence, former New Jersey Gov. Chris Christie and entrepreneur Vivek Ramaswamy. The former president on July 18 said he’d gotten a letter informing him he is a target of that probe. He said he anticipated being indicted.

    Read: Trump says he’s a target of special counsel Jack Smith’s Jan. 6 case

    The indictment ratchets up legal pressure for Trump as he seeks the 2024 GOP nomination and aims to challenge Democratic President Joe Biden. The former president is already facing federal charges in Florida that he mishandled classified documents after leaving the White House, and criminal charges in New York over a hush-money case. A separate election-interference investigation is underway in Georgia.

    Read more: Trump has now been indicted in a third case. Here’s where all the investigations stand.

    “This is nothing more than the latest corrupt chapter in the continued pathetic attempt by the Biden crime family and their weaponized Department of Justice to interfere with the 2024 presidential election, in which President Trump is the undisputed frontrunner, and leading by substantial margins,” said Trump’s 2024 campaign in a statement.

    “The lawlessness of these persecutions of President Trump and his supporters is reminiscent of Nazi Germany in the 1930s, the former Soviet Union, and other authoritarian, dictatorial regimes,” the statement also said.

    In addition, Trump’s campaign made an effort to raise money off the latest indictment, sending an email from the 45th president that asked supporters to “make a contribution to show that you will NEVER SURRENDER our country to tyranny as the Deep State thugs try to JAIL me for life.”

    Trump’s former vice president, Mike Pence, who’s also seeking the GOP presidential nomination, said in a statement late Tuesday: “Today’s indictment serves as an important reminder: anyone who puts himself over the Constitution should never be president of the United States,” adding he will have more to day after reviewing the indictment.

    An indictment does not disqualify Trump from mounting a White House campaign. The only requirements to run for president, as laid out in the Constitution, are being a natural-born citizen at least 35 years old and a resident of the U.S. for 14 years.

    Washington Watch: Donald Trump indicted again. Can he still run for president?

    [ad_2]

    Source link

  • Interactive: Search for the latest PCE inflation trends of almost 400 items

    Interactive: Search for the latest PCE inflation trends of almost 400 items

    [ad_1]

    The personal consumption expenditures price index, which is released by the U.S. Department of Commerce, is the Federal Reserve’s preferred measure of inflation. It is released each month and measures the change in prices of goods and services in the United States.

    The Fed uses core PCE, which excludes the volatile categories of food and energy, to help set monetary policy. The consumer-price index is another measure of inflation and is reported by the Bureau of Labor Statistics. 

    See more: MarketWatch’s breakdown of CPI inflation

    PCE measures the expenses of both urban and rural consumers by United States residents. According to the Commerce Department, the index “consists of the purchase of new goods and services from private businesses.” Though additional purchases are included, such as those from the government and expenditures by third-party payers on behalf of households.

    PCE by type of product is divided into three broad categories: durable goods, nondurable goods and services. 

    Use our searchable table to look up the most recent price data for almost 400 products reported by the the Commerce Department.

    [ad_2]

    Source link

  • German economy stagnated in the second quarter

    German economy stagnated in the second quarter

    [ad_1]

    The German economy was stagnant in the second quarter after two periods of decline.

    The Federal Statistical Office reported zero quarter-on-quarter change, after a 0.1% drop in the first quarter and a 0.4% drop in the fourth quarter of 2022. Most countries outside the U.S. report GDP on a quarterly, and not annualized, basis.

    Consumer spending by private households stabilized in the second quarter of 2023 after the weak winter half-year, it said.

    Over the last year, the eurozone’s largest economy dropped by 0.6%.

    Sentiment is dark for Germany’s economy, with the key Ifo index of business climate sliding in July to an eight-month low.

    [ad_2]

    Source link

  • Trump asked staffer to delete Mar-a-Lago camera footage, updated indictment alleges

    Trump asked staffer to delete Mar-a-Lago camera footage, updated indictment alleges

    [ad_1]

    WASHINGTON — Donald Trump faced new charges Thursday in a case accusing him of illegally possessing classified documents, with prosecutors alleging that he asked a staffer to delete camera footage at his Florida estate in an effort to obstruct a federal investigation into the records.

    The indictment includes new counts of obstruction and willful retention of national defense information, adding fresh detail to an indictment issued last month against Trump and a close aide. The additional charges came as a surprise at a time of escalating anticipation of a possible additional indictment in Washington over his efforts to overturn the results of the 2020 presidential election. The updated allegations make clear the vast — and unknown — scope of legal exposure faced by Trump as he seeks to reclaim the White House in 2024 while fending off criminal cases in multiple cities.

    The new allegations from special counsel Jack Smith center on surveillance footage at Trump’s Mar-a-Lago estate in Palm Beach, evidence that has long been vital to the case. Trump is alleged to have asked to have the footage deleted after FBI and Justice Department investigators visited in June 2022 to collect classified documents he took with him after leaving the White House. The new indictment also charges him with i llegally holding onto a document he’s alleged to have shown off to visitors in New Jersey.

    A Trump spokesperson dismissed the new charges as “nothing more than a continued desperate and flailing attempt” by the Biden administration “to harass President Trump and those around him” and to influence the 2024 presidential race.

    Prosecutors accuse Trump of scheming with his valet, Walt Nauta, and a Mar-a-Lago property manager, Carlos De Oliveira, to conceal the footage from federal investigators after they issued a subpoena for it. Video from the property would ultimately play a significant role in the investigation because, prosecutors said, it captured Nauta moving boxes of documents in and out of a storage room — including one such incident a day before a Justice Department visit to the property.

    According to the indictment, Nauta met with De Oliveira on June 25, 2022, at Mar-a-Lago, where they went to a security guard booth where surveillance video was displayed on monitors and walked with a flashlight through a tunnel where the storage room was located, observing and pointing out surveillance cameras.

    Two days later, according to the indictment, De Oliveira walked with an unidentified Trump employee to an audio room, where De Oliveira asked how many days the server retained footage.

    De Oliveira, prosecutors said, told the other employee “that ‘the boss’ wanted the server deleted” and asked, “What are we going to do?”

    During a voluntary interview with the FBI last January, prosecutors say, De Oliveira lied when he said he “never saw nothing” with regard to boxes at Mar-a-Lago.

    De Oliveira was added to the indictment, charged with obstruction and false statements related to an interview he gave the FBI earlier this year. His lawyer declined to comment Thursday evening.

    The new charges were filed as Trump is bracing for the prospect of charges related to his efforts to undo the 2020 election in the run-up to the Jan. 6, 2021, riot at the U.S. Capitol. Last week, he revealed he had received a letter from the Justice Department informing him he was a target in that probe, suggesting that charges could be forthcoming, and his lawyers met with prosecutors on Smith’s office earlier Thursday to discuss that case.

    But despite the anticipation. the only charges filed Thursday were in Florida, not Washington.

    The superseding indictment also charges Trump with an additional count of willfully retaining national defense information, relating to a document he showed off to visitors at his Bedminster, New Jersey, golf club during an July 2021 interview for a memoir by his onetime chief of staff Mark Meadows. Prosecutors have described the document as a Pentagon plan of attack and Meadows, in his subsequent book, said the country it concerned was Iran.

    According to the indictment, Trump returned that document, which was marked as top secret and not approved to show to foreign nationals, to the federal government on Jan. 17, 2022.

    Trump has denied he had secret documents before him when he spoke.

    “There wasn’t a document. I had lots of paper. I had copies of newspaper articles, I had copies of magazines, I had copies of everything,” he said in an interview with Fox News host Bret Baier.

    The count was notable because prosecutors until now had mostly been focused on the records that Trump had refused to return in response to a Justice Department subpoena last year.

    Both Trump and Nauta have pleaded not guilty to the original 38-count indictment. De Oliveira is due in court in Florida on Monday.

    [ad_2]

    Source link

  • I accomplished a thing

    I accomplished a thing

    [ad_1]

    I’ve been trying to get this 1CC for a while now. And now I got it! Havin a good ******* night and I just wanted to share the good vibes cause this ******* challenge was way harder than I thought it was gonna be. That final level is brutal even when you know what you’re doing.

    [ad_2]

    Source link

  • U.S. stocks drift higher as tech earnings, Fed rate decision loom

    U.S. stocks drift higher as tech earnings, Fed rate decision loom

    [ad_1]

    U.S. stocks were modestly higher on Tuesday as the Dow’s winning streak continued for now, while investors waited for big tech company earnings after the bell and the Federal Reserve’s interest rate decision on Wednesday.

    How stocks are trading

    • The S&P 500 climbed 5 points, or 0.1%, to 4,560

    • The Dow Jones Industrial Average gained 12 points, or 0%, to 35,423

    • The Nasdaq Composite increased 51 points, or 0.3%, to 14,110

    On Monday, the Dow Jones Industrial Average
    DJIA,
    +0.21%

    rose 184 points, or 0.52%, to 35411, the S&P 500
    SPX,
    +0.30%

    increased 18 points, or 0.4%, to 4555, and the Nasdaq Composite
    COMP,
    +0.66%

    gained 26 points, or 0.19%, to 14059.

    What’s driving markets

    The Dow Jones Industrial Average is on an 11-session winning streak, its best run in more than six years, as hopes build that the Federal Reserve’s remaining interest rate hikes this year will not cause a recession as inflation cools.

    Whether the Dow can make it an even dozen days of gains and extend its rally even further to fresh 15-month highs will likely depend on the next few days containing corporate earnings reports and Fed comments.

    Dow components 3M
    MMM,
    +5.58%

    and Verizon Communications Inc.
    VZ,
    +0.60%

    both reported results before the bell. So did big name companies like General Electric
    GE,
    +5.97%

    and General Motors
    GM,
    -4.44%
    .

    After the bell, come Microsoft
    MSFT,
    +1.18%

    and Visa
    V,
    -0.28%
    ,
    with non-Dow member Alphabet
    GOOG,
    +0.11%

    also a highlight. Coca-Cola
    KO,
    -0.23%

    and Boeing
    BA,
    -1.67%

    are among those Dow members presenting their numbers on Wednesday.

    Investors will be want to hear from Alphabet and Microsoft about their cloud businesses, the ongoing impact and use of artificial intelligence and their general outlooks for American and global markets, David Sekera, chief U.S. market strategist at Morningstar, said in a phone interview.

    Meanwhile, equity markets are in “a little bit of a holding period” ahead of the events to come, he noted.

    Read also: IMF sees signs global economy is headed in the right direction

    Wednesday also sees the Fed’s latest monetary policy decision. The market is certain the central bank will increase its policy interest rate by another 25 basis points to a range of 5.25% to 5.50%.

    But investors are less sure of whether that will be the last hike of the current cycle, so the Fed’s accompanying statement and what Chair Jerome Powell says at his press conference will be the main drivers of bonds, equities and forex around the event.

    “Our view is the Fed is one and done,” Sekera said. Even with expectations that central banks will continue to “talk tough” on inflation, Sekera said Morningstar’s base case is that July’s 25-basis point hike is the last, while inflation continues to cool over the second half of the year. Rate cuts could occur as early as February, he said.

    At Vanguard, Andrew Patterson, senior international economist, said in a note that the Fed could reach its terminal rate “with 1 or 2 more hikes.” The central bank is “likely to remain on hold through at least the end of the year.  If inflation proves persistent, this may be a sign of a higher neutral rate and the Fed may need to go to 6% or beyond in order to bring inflation back to target,” he said.

    Others think there’s more rate hikes to go. “There is a great chance that the Fed will spoil your mood if you are among those thinking that this week’s rate hike will be the last for this tightening cycle in the U.S.,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

    Read also: ‘No chance we’re having a soft landing’: Stock-market strategist David Rosenberg gives Powell’s Fed no credit — and no mercy

    Meanwhile, helping underpin sentiment on Tuesday was a rebound in Chinese stocks, notably property developers after Beijing signaled support for the heavily-indebted sector.

    In other economic data Tuesday, home prices increased for the fourth consecutive month in May, according to the S&P Case-Shiller Index. May’s strongest price gains were in Midwest cities, but the overall gains underscore the ongoing lack of supply of homes.

    While home prices are rising, so is consumer confidence. One gauge on consumer sentiment reached a two-year high, according to data out Tuesday. The Conference Board’s index for July increased to 117.0, which was above economists’ expectations and up from a revised 110.1 last month.

    While mood is brightening, the index is still below pre-pandemic levels as consumers contend with the toll of high prices and rising interest rates.

    Companies in focus

    • General Electric Co.
      GE,
      +5.97%

      shares up more than 6% and approaching a nearly five-year high after second quarter results from the aerospace and renewable energy company that topped expectation. The company reported net income of $946 million, or 86 cents per share, from a loss of $1.25 billion, or $1.13 a share one year ago, while free cash flow and revenue also beat estimates.

    • Verizon Communications Inc.
      VZ,
      +0.60%

       shares are up more than 0.7% after the telecommunications company topped profit expectations in its latest earnings but came just below revenue expectations. The company reported $1.21 earnings per share, above FactSet consensus for $1.17 earnings per share.

    • General Motors Co.
      GM,
      -4.44%

      shares are more than 3% lower after the car maker delivered better than expected second quarter earnings and raised its guidance. The company had adjusted earnings per share of $1.91, topping the $1.86 consensus according to FactSet.  

    • 3M Co.
      MMM,
      +5.58%

      shares are more than 6% higher Tuesday after results showing the company booked a loss in connection with a litigation settlement over “forever chemicals.” But taking away the one-time charge, the company still topped adjusted profit expectations and raised its full-year outlook.

    • Spotify Technology
      SPOT,
      -13.68%

      shares tumbled about 12% Tuesday after the streaming giant easily surpassed subscriber-growth expectations for its latest quarter but failed to sport upside on its key financials.

    [ad_2]

    Source link

  • Here are 4 of the biggest changes to the Nasdaq 100 from Monday’s special rebalancing

    Here are 4 of the biggest changes to the Nasdaq 100 from Monday’s special rebalancing

    [ad_1]

    New weightings for the largest stocks in the Nasdaq 100 are taking effect on Monday following the index’s second “special rebalancing” in 25 years.

    See: Nasdaq rebalancing is coming, and it’s boosting interest in Friday’s $2.3 trillion option expiration

    These new levels were shared ahead of time with Goldman Sachs Group Chief U.S. Equity Analyst David Kostin. Kostin and his team have published a report on the changes that was shared with Goldman clients and the press last week.

    Here are four of the most important shifts highlighted in Kostin’s note:

    • The seven stocks with the heaviest weightings in the Nasdaq 100 are seeing their collective weight reduced to 44% from 56%.

    • At the sector level, information technology will continue to account for roughly half of the index, but the sector’s weight will decline to 49% from 51%.

    • Apple Inc.
      AAPL,
      +0.56%

      and Microsoft Corp.
      MSFT,
      +0.19%

      will remain the index’s largest constituents, but their index weights will be reduced by roughly four percentage points — to 12% and 10%, respectively.

    • Broadcom’s index weight is seeing the biggest increase, and will see its weighting increase by 64 basis points to 3%.

    The Goldman analyst summarized how the new weightings would impact the index’s 25 largest constituents in the chart below.


    GOLDMAN SACHS

    According to Nasdaq representatives, the Nasdaq 100 is the most popular of the exchange’s indexes. So far this year, it has outperformed the Nasdaq Composite, a broader index including every company traded on the exchange. The Nasdaq 100 is up 41.2%, to the Composite’s 34.4%, according to FactSet data.

    EPFR data show $261 billion in mutual fund and exchange-traded fund assets are benchmarked to the Nasdaq 100, including the Invesco QQQ Trust Series
    QQQ,
    +0.11%
    ,
    better known by its ticker QQQ. More than $250 billion of this money is invested in passive benchmark-tracking strategies.

    Nasdaq decided to implement the special rebalancing earlier this month to try and ward off concentration risk after its seven largest components surged earlier this year. According to its official index-management methodology, Nasdaq aims to keep the combined weighting of its largest constituents to 40%.

    Kostin said he doesn’t expect these changes to have much of an impact on markets, arguing that the previous special rebalancing didn’t move the index much, either.

    Both the Nasdaq 100 and Nasdaq Composite were slightly lower on Monday as big-tech names continued to lag the S&P 500 and suddenly high-flying Dow Jones Industrial Average
    DJIA,
    +0.57%
    ,
    just like they did last week.

    Nasdaq 100-tracking QQQ
    QQQ,
    +0.11%

    was off by 0.2% at $374 per share Monday morning, while the Nasdaq Composite
    COMP,
    +0.19%

    was down 0.2% at 14, 013.

    [ad_2]

    Source link

  • Biden would beat Trump even if a third-party candidate joins White House race: poll

    Biden would beat Trump even if a third-party candidate joins White House race: poll

    [ad_1]

    Voters are more interested in another Joe Biden administration than any third-party option or Donald Trump in 2024, according to polling data from Monmouth University.

    In another Biden vs. Trump election, a combined 47% of voters say they would definitely or probably vote for President Biden and 40% of voters would definitely or probably vote for ex-President Trump. But majorities would not vote for either Biden or Trump, the poll found.

    The electorate is seemingly disheartened with these two choices, but they’re not exactly enticed by a third-party option, either.

    Biden still had more support than Trump, even when a third-party “fusion ticket” with one Democrat and one Republican was added to the mix, Monmouth found.

    With a fusion ticket as an option, 37% of respondents would definitely or probably vote for Biden whereas 28% would definitely or probably vote for Trump. Thirty percent of respondents would entertain voting for the fusion ticket.

    Democrats have expressed concern that a third-party ticket would siphon votes from Biden and spoil his chances in 2024. The presence of a third-party fusion ticket detracts votes from both Biden and Trump, but not enough for the ticket to be a “spoiler,” the polling report said.

    Support for a fusion option declines when actual candidates are named on the ticket.

    When the poll introduced a potential ticket of Democratic West Virginia Sen. Joe Manchin and Republican former Utah Gov. Jon Huntsman, 44% of respondents definitely would not vote for the option. Only 2% of respondents definitely would vote for the hypothetical Manchin-Huntsman ticket.

    Manchin and Huntsman headlined a town hall on Monday hosted by the nonprofit No Labels, which is pursuing ballot access to enter a “unity” ticket, similar to the Monmouth poll’s fusion ticket, in the 2024 race. The event heightened speculation that Manchin could have presidential aspirations for 2024.

    Read: Sen. Joe Manchin fuels rumors of a third-party 2024 presidential bid

    If 2024 turns out to be a Biden vs. Trump vs. Manchin-Huntsman race, Biden would likely get 40% of the vote, Trump 34% and Manchin-Huntsman 16%, the poll found.

    “Some voters clearly feel they have to back a candidate they don’t really like. That suggests there may be an opening for a third party in 2024, but when you drill down further, there doesn’t seem to be enough defectors to make that a viable option,” Patrick Murray, director of the Monmouth Polling Institute, said.

    [ad_2]

    Source link

  • Lionel Messi set to make his Inter Miami debut in Leagues Cup opener against Cruz Azul

    Lionel Messi set to make his Inter Miami debut in Leagues Cup opener against Cruz Azul

    [ad_1]

    FORT LAUDERDALE, Fla. (AP) — Lionel Messi’s debut gameday with Inter Miami has arrived.

    Messi is expected to play Friday night when Inter Miami takes on Cruz Azul in a Leagues Cup match at his new home stadium. Team officials say all tickets — about 21,000, in a newly expanded stadium — have been sold, though thousands were available for resale on secondary markets Friday morning.

    It’s unclear how much Messi, a World Cup champion for Argentina and someone who Inter Miami co-owner David Beckham calls the best player ever, will be on the field in his debut. He signed a 2-1/2 year contract with Inter Miami this past weekend, and the deal will pay him between $50 million and $60 million annually. That will almost certainly work out to more than $1 million per match.

    He was introduced to his new home fans on Sunday and officially trained for the first time as a member of the club Tuesday.

    Messi made the decision in June to join Inter Miami and come to Major League Soccer. He considered a return to Barcelona, the club with whom he spent almost the entirety of his career, after spending the last two seasons with Paris Saint-Germain.

    But Inter Miami and MLS found a way to land the seven-time Ballon d’Or winner in Messi, setting the stage for an unprecedented era for the club that has largely sputtered during its first four seasons.

    Leagues Cup is a tournament between clubs from MLS and Liga MX, the top Mexican league. Cruz Azul won the inaugural version of this event in 2019.

    Neither club has enjoyed much success this season. Inter Miami has the fewest points in the MLS standings; Cruz Azul is the only team in the Mexican league yet to record a standings point through the season’s first three matches.

    [ad_2]

    Source link

  • Dow posts longest winning streak in nearly 6 years; Nasdaq slumps over 2%

    Dow posts longest winning streak in nearly 6 years; Nasdaq slumps over 2%

    [ad_1]

    U.S. stocks finished mostly lower Thursday, with the Nasdaq and S&P 500 dragged down by disappointing earnings, while the Dow Jones Industrial Average rose for a ninth straight day for its longest winning streak in nearly six years.

    How stocks traded

    • The S&P 500
      SPX,
      -0.68%

      fell 30.85 points, or 0.7%, to close at 4,534.87.

    • The Dow
      DJIA,
      +0.47%

      rose 163.97 points, or 0.5%, to finish at 35,225.18. The winning streak is its longest since a nine-day run that ended on Sept. 20, 2017, according to Dow Jones Market Data.

    • The Nasdaq Composite
      COMP,
      -2.05%

      ended at 14,063.31, down 294.71 points, or 2.1%.

    What drove markets

    After lagging behind the S&P 500 and Nasdaq for most of the year, the Dow Jones Industrial Average has climbed over the past two weeks. The blue-chip gauge is now heading for its longest streak of daily gains since Sept. 20, 2017, according to Dow Jones Market Data.

    It’s the latest milestone as value stocks and other lagging sectors of the market appear to be playing “catch up,” said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management, during a phone interview with MarketWatch. Although the Dow’s year-to-date gains are still well behind those of the S&P 500, with the blue-chip gauge up 6.6% since Jan. 1, FactSet data show.

    On Wednesday, the S&P 500 and Nasdaq closed at their highest levels in nearly 16 months.

    “We’re finally seeing the rotation to value,” he said. “The Dow is playing catch up with the S&P 500 and the Nasdaq.”

    See: Stock-market bubble trouble? Check out the 3-year view on Nasdaq, S&P 500 returns.

    Technology stocks were lagging following earnings from Netflix Inc.
    NFLX,
    -8.41%

    released late Wednesday, which showed that revenue fell short. Shares fell 8.4%.

    Tesla Inc.
    TSLA,
    -9.74%

    shares fell 9.7% after the electric vehicle maker beat Wall Street expectations for its second quarter but not in the blowout fashion that some market observers were expecting.

    “Netflix missed sales estimates and issued lower-than-expected Q3 guidance, while Tesla’s results showed shrinking profitability with squeeze on margins,” said Henry Allen, strategist at Deutsche Bank.

    Semiconductor shares also took it on the chin, with the PHLX Semiconductor Index
    SOX,
    -3.62%

    falling 3.6%. The drop came after Taiwan Semiconductor Manufacturing Co. 
    TSM,
    -5.05%

    topped second-quarter earnings expectations but reported margins that contracted, while providing a somewhat downbeat outlook.

    Meanwhile, shares of IBM Corp.
    IBM,
    +2.14%

    and Johnson & Johnson
    JNJ,
    +6.07%

    drove the Dow higher after both companies beat earnings expectations.

    Bad news for Netflix seemed to infect other megacap technology names, as Alphabet Inc. Class A
    GOOGL,
    -2.32%

    and Alphabet Inc.
    GOOG,
    -2.65%

    retreated, as did shares of Apple Inc.
    AAPL,
    -1.01%

    and Microsoft Corp.
    MSFT,
    -2.31%

    after the latter hit a record this week.

    Investors also digested earnings from American Airlines Group Inc.
    AAL,
    -6.24%

    and Blackstone Inc.
    BX,
    -0.61%

    which reported before the opening bell. After the close, investors will hear from Capital One Financial Corp.
    COF,
    -2.52%
    ,
    CSX Corp.
    CSX,
    -0.27%

    and First Financial Bancorp
    FFBC,
    -0.54%
    ,
    along with a few others.

    In U.S. economic data, weekly jobless benefit claims data showed the number of Americans applying for first-time unemployment benefits fell to a two-month low. Meanwhile, the Philadelphia Fed’s gauge of manufacturing activity came in at negative 13.5 in July, up from 13.7 during the prior month.

    Existing home sales fell in June, while leading index of economic indicators dropped 0.7% in June, falling for the 15th month in a row.

    Companies in focus

    [ad_2]

    Source link

  • Stock-market bubble trouble? Check out the 3-year view on Nasdaq, S&P 500 returns.

    Stock-market bubble trouble? Check out the 3-year view on Nasdaq, S&P 500 returns.

    [ad_1]

    A 2023 stock-market rally led by megacap tech names is stirring fears another bubble may be forming as the Nasdaq Composite index significantly outpaces strong gains for the S&P 500.

    But a longer term look at the tape indicates the Nasdaq may merely be playing catch-up with the large-cap U.S. benchmark, argued Jessica Rabe, co-founder of DataTrek Research, in a Thursday note, who also warned against losing sight of how dismal 2022 was for stocks.

    The Nasdaq
    COMP,
    -2.05%

    was up 37.2% year-to-date through Wednesday’s close, far outpacing the S&P 500’s
    SPX,
    -0.68%

    18.9% rally, but over the last three years, the S&P 500, up 42%, has outpaced the Nasdaq’s 37% rise, Rabe observed.

    DataTrek ran the three-year rolling returns for both the S&P 500 and the Nasdaq Composite over the last 50 years to put 2022’s losses and 2023’s rebounds into a larger context. Rabe said they chose those time frames because the three-year period helps smooth out year-to-year seasonality and volatility, and five decades capture a variety of business, interest rate and valuation cycles (see chart below).


    DataTrek Research

    The Nasdaq Composite tends to outperform the S&P 500 over a 3-year time horizon but it is also more volatile, as would be expected, Rabe noted. The three-year average price return for the Nasdaq was 41.% versus 29% for the S&P 500 back to 1974.

    The Nasdaq Composite is up 37.1% over the last three years, versus 42% for the S&P 500, making this year’s performance look like a reversion to the longer term mean.

    “The Nasdaq has underperformed the S&P by almost 500 basis points over the last three years, when the Comp typically outperforms by a much larger margin (+1,220 bps). It therefore makes sense that the Nasdaq is playing some catch-up in 2023,” the analyst said.

    The data also show 3-year returns rarely go negative and that they continue to trade in similar bands to prior cycles. “Barring a geopolitical or economic shock, both the Nasdaq and S&P tend to generate positive, double-digit returns over three-year periods,” she said.

    Even with the Nasdaq and S&P’s double-digit rallies this year, three-year returns for both indexes are relatively ordinary as compared with historical norms, Rabe noted. The Composite’s 37.1% return over the last three years is slightly below the average of 41.2% but well within one standard deviation to the downside. The S&P 500’s 42% rise over the same stretch tops its average of 29% but is well within standard deviation to the upside, she said.

    What does it all mean? Rabe acknowledged that stock valuations are rich and that companies need to keep delivering on earnings, but said it’s also worth noting that part of the impressive rallies for both indexes can be explained in part as a reversion to historical averages. She noted that the S&P 500 and Nasdaq’s 2022 performances were nearly or just as bad as those seen in the 1973-74 oil crisis and recession, the period around the bursting of the dot-com bubble, the lead-up to the second Gulf War, and the 2007-09 financial crisis.

    “This year’s gains so far have gotten them back closer to their 3-year average returns but are nowhere near bubble territory,” she said.

    [ad_2]

    Source link

  • Powerball finally has a winner for its jackpot worth over $1 billion

    Powerball finally has a winner for its jackpot worth over $1 billion

    [ad_1]

    A winning ticket has been sold in California for the Powerball jackpot worth an estimated $1.08 billion, the sixth largest in U.S. history and the 3rd largest in the history of the game.

    The winning numbers for Wednesday night’s drawing were: white balls 7, 10, 11, 13, 24 and red Powerball 24. The California Lottery said on Twitter that the winning ticket was sold in Los Angeles at Las Palmitas Mini Market.

    Final ticket sales pushed the jackpot beyond its earlier estimate of $1 billion to $1.08 billion at the time of the drawing, moving it from the seventh largest to the sixth largest U.S lottery jackpot ever won.

    Read: What you should do if you won $1 billion

    The winner can choose either the total jackpot paid out in yearly increments or a $558.1 million, one-time lump sum before taxes.

    The game’s abysmal odds of 1 in 292.2 million are designed to build big prizes that draw more players. The largest Powerball jackpot was $2.04 billion Powerball in November.

    The last time someone had won the Powerball jackpot was April 19 for a top prize of nearly $253 million. Since then, no one had won the grand prize.

    Powerball is played in 45 states, as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.

    [ad_2]

    Source link

  • Mike Pence says inflation is 16%, but CPI is 3%. This is his logic.

    Mike Pence says inflation is 16%, but CPI is 3%. This is his logic.

    [ad_1]

    Former Vice President Mike Pence is taking a long view when it comes to inflation — a very long view that isn’t commonly expressed when debating economic performance.

    Pence — well behind former President Donald Trump and Florida Gov. Ron DeSantis in early polling for the Republican nomination — is trying to position himself as the true conservative alternative in the Republican presidential race, and used inflation as a key talking point.

    Pence was interviewed by Larry Kudlow, another former Trump administration official, on Fox Business, and stated the following about inflation:

    “We’ve got to end this scourge of inflation on families,” he said Monday. “We’re still 16% inflation in the last two and a half years and that also means another issue I’ve been willing to tackle, Larry, is we’ve got to bring common-sense and compassionate reforms to entitlements.”

    The 16% figure cited by Pence seemed to be at odds with other measures of inflation. The Labor Department reported consumer prices rose 3% year-over-year in June. The peak for the CPI series was 9%. There’s no metric — core CPI, PCE, Cleveland Fed median CPI — that got close to 16%.

    The Pence campaign told MarketWatch they were comparing June 2023 with Jan. 2021 — when President Joe Biden and Vice President Kamala Harris came into office, for a 16.6% rise.

    They also provided a similar comparison for inflation during the Trump/Pence administration — over those four years, prices grew by a smaller 7.7%.

    But then, if that’s the new way of calculating things, there’s all sorts of data that also should be compared to 29 months ago.

    To name a few: there’s been a 9% increase in jobs compared to 29 months ago, compared to the 2% drop during the Trump administration.

    Average hourly earnings compared to 29 months ago have climbed 12%.

    Durable-goods orders are up by 23% compared to 29 months ago, and retail sales have grown by 21%.

    Comparing inflation now to 29 months ago isn’t wrong, but is misleading when the overwhelming percentage of listeners assume that comparison to be done over 12 months.

    It’s an adjustment of inflation data that landed President Biden in hot water last year, when he used month-by-month data — instead of the more commonly used year-over-year data — to say that inflation was zero.

    [ad_2]

    Source link

  • No injuries as jetliner’s evacuation slide falls in Chicago neighborhood near O’Hare, officials say

    No injuries as jetliner’s evacuation slide falls in Chicago neighborhood near O’Hare, officials say

    [ad_1]

    CHICAGO (AP) — An emergency evacuation slide fell from an airliner Monday and landed in the backyard of a home near Chicago’s O’Hare International Airport, causing no injuries but damaging a roof, officials and witnesses said.

    The Federal Aviation Administration said a United Airlines Boeing 767 had landed safely at O’Hare on Monday on arrival from Switzerland when maintenance workers realized an emergency slide was missing from the plane’s side.

    The aircraft was carrying 155 passengers and 10 crew.

    The Rev. Jesse Jackson says he’s stepping down as president of the Rainbow PUSH Coalition, the Chicago-based civil rights group he founded more than 50 years ago.

    The Rev. Jesse Jackson plans to step down from leading the Chicago civil rights organization Rainbow PUSH Coalition he founded in 1971.

    An Illinois judge has set a Nov. 6 trial date for a father charged with helping his son obtain a gun license three years before the son allegedly shot dead seven people at a 2022 Fourth of July parade in suburban Chicago.

    The National Weather Service says a tornado outbreak in the Chicago area this week produced at least 11 twisters. Preliminary findings show they were relatively weak.

    WLS-TV reported that Patrick Devitt was not home at the time but his son and father-in-law were present and heard a “boom” shortly after noon. Devitt dragged the slide from his backyard to the front.

    He said the slide hit part of the house, damaging the roof, downspout and a window screen.

    “When it’s all stretched out, like it’s a little jumbled up I’m sure in the picture from when we dragged it out, it’s larger than a small car. It’s a very, very big piece of equipment,” Devitt told WLS.

    United said it was seeking to find out exactly how the slide ended up in the neighborhood.

    “We immediately contacted the FAA and are working with our team to better understand the circumstances around this matter,” United said in a statement.

    The FAA said, without releasing more details, that it was continuing to investigate.

    [ad_2]

    Source link

  • Civil rights groups sue Florida over its new immigration law that supports DeSantis’ migrant flights

    Civil rights groups sue Florida over its new immigration law that supports DeSantis’ migrant flights

    [ad_1]

    MIAMI (AP) — Several civil rights groups filed a federal lawsuit on Monday challenging Florida’s new immigration law.

    The Southern Poverty Law Center, American Civil Liberties Union, ACLU of Florida, Americans for Immigrant Justice and the American Immigration Council filed the lawsuit in Miami federal court against Florida Gov. Ron DeSantis, Attorney General Ashley Moody and Statewide Prosecutor Nicholas B. Cox on behalf of the Farmworker Association of Florida and others, according to court records.

    The legislation that DeSantis, a Republican, signed into law in May bolsters his migrant relocation program and limits social services for immigrants lacking permanent legal status. It also expands requirements for businesses with more than 25 staffers to use E-Verify, a federal system that determines if employees can legally work in the U.S. Another provision requires hospitals that accept Medicaid to include a citizenship question on intake forms.

    The lawsuit specifically focuses on provisions that criminalize the transportation of individuals into Florida who may have entered the country unlawfully and have not been “inspected” by the federal government since. The complaint states it is unconstitutional for a state to unilaterally regulate federal immigration and subject people to criminal punishment without fair notice. It also asserts Florida’s use of the term “inspection” is incoherent and unconstitutionally vague.

    DeSantis launched a campaign for the 2024 GOP presidential nomination in May, playing up his tough stance against illegal immigration. DeSantis has sent Florida National Guard soldiers to Texas for border security and directed Florida to pay for charter flights carrying migrants from Texas to other parts of the country.

    The governor’s office didn’t immediately respond to a message seeking comment about the lawsuit on Monday. A spokesman for the governor’s office previously has said the new law targets illegal immigration, not those who are in the U.S. legally.

    Here’s the latest for Tuesday, July 18th: Trump’s bid to stop Georgia DA’s investigation rejected; Crews search for two children missing after Pennsylvania flood; More heat for much of US; No winner for $900m Powerball jackpot.

    [ad_2]

    Source link

  • ChatGPT-maker OpenAI signs deal with AP to license news stories

    ChatGPT-maker OpenAI signs deal with AP to license news stories

    [ad_1]

    ChatGPT-maker OpenAI and The Associated Press said Thursday that they’ve made a deal for the artificial intelligence company to license AP’s archive of news stories.

    “The arrangement sees OpenAI licensing part of AP’s text archive, while AP will leverage OpenAI’s technology and product expertise,” the two organizations said in a joint statement.

    Financial terms of the deal were not disclosed.

    The U.S. Federal Trade Commission has launched an investigation into ChatGPT creator OpenAI and whether the artificial intelligence company violated consumer protection laws by scraping public data and publishing false information through its chatbot.

    Google says it’s rolling out its AI-powered chatbot Bard across Europe and in Brazil, expanding its availability to hundreds of millions more users.

    Elon Musk is finally starting to talk about the artificial intelligence company he founded to compete with ChatGPT-maker OpenAI.

    Ask ChatGPT about comedian Sarah Silverman’s memoir “The Bedwetter” and the artificial intelligence chatbot can come up with a detailed synopsis of every part of the book.

    OpenAI and other technology companies must ingest large troves of written works, such as books, news articles and social media chatter, to improve their AI systems known as large language models. Last year’s release of ChatGPT has sparked a boom in “generative AI” products that can create new passages of text, images and other media.

    The tools have raised concerns about their propensity to spout falsehoods that are hard to notice because of the system’s strong command of the grammar of human languages. They also have raised questions about to what extent news organizations and others whose writing, artwork, music or other work was used to “train” the AI models should be compensated.

    This week, the U.S. Federal Trade Commission told OpenAI it had opened an investigation into whether the company had engaged in unfair or deceptive privacy or data security practices in scraping public data — or caused harm by publishing false information through its chatbot products. The FTC did not immediately reply to a request for comment on the investigation, which The Washington Post was first to report.

    Along with news organizations, book authors have sought compensation for their works being used to train AI systems. More than 4,000 writers — among them Nora Roberts, Margaret Atwood, Louise Erdrich and Jodi Picoult — signed a letter late last month to the CEOs of OpenAI, Google, Microsoft, Meta and other AI developers accusing them of exploitative practices in building chatbots that “mimic and regurgitate” their language, style and ideas. Some novelists and the comedian Sarah Silverman have also sued OpenAI for copyright infringement.

    “We are pleased that OpenAI recognizes that fact-based, nonpartisan news content is essential to this evolving technology, and that they respect the value of our intellectual property,” said a written statement from Kristin Heitmann, AP senior vice president and chief revenue officer. “AP firmly supports a framework that will ensure intellectual property is protected and content creators are fairly compensated for their work.”

    The two companies said they are also examining “potential use cases for generative AI in news products and services,” though didn’t give specifics. OpenAI and AP both “believe in the responsible creation and use of these AI systems,” the statement said.

    OpenAI will have access to AP news stories going back to 1985.

    The AP deal is valuable to a company like OpenAI because it provides a trove of material that it can use for training purposes, and is also a hedge against losing access to material because of lawsuits that have threatened its access to material, said Nick Diakopoulos, a professor of communications studies and computer science at Northwestern University.

    “In order to guard against how the courts may decide, maybe you want to go out and sign licensing deals so you’re guaranteed legal access to the material you’ll need,” Diakopoulos said.

    The AP doesn’t currently use any generative AI in its news stories, but has used other forms of AI for nearly a decade, including to automate corporate earnings reports and recap some sporting events. It also runs a program that helps local news organizations incorporate AI into their operations, and recently launched an AI-powered image archive search.

    The deal’s effects could reach far beyond the AP because of the organization’s size and its deep ties to other news outlets, said news industry analyst Ken Doctor.

    When AP decided to open up its content for free on the internet in the 1990s, it led many newspaper companies to do the same, which “turned out to be a very bad idea” for the news business, Doctor said.

    He said navigating “a new, AI-driven landscape is deeply uncertain” and presents similar risks.

    “The industry is far weaker today. AP is in OK shape. It’s stable. But the newspaper industry around it is really gasping for air,” Doctor said. “On the positive side, AP has the clout to do a deal like this and can work with local publishers to try to assess both the potential and the risk.”

    ___

    Associated Press writer David Bauder contributed to this report.

    [ad_2]

    Source link

  • Putin says he offered Wagner mercenaries the option to stay as a single unit

    Putin says he offered Wagner mercenaries the option to stay as a single unit

    [ad_1]

    Russian President Vladimir Putin said he offered the Wagner private military company the option of continuing to serve as a single unit under their same commander after their short-lived rebellion, while some of the mercenaries were shown Friday in Belarus, possibly heralding the group’s relocation there.

    Putin’s comments appeared to reflect his efforts to secure the loyalty of Wagner mercenaries, some of the most capable Russian forces in Ukraine, after the group’s brief revolt last month that posed the most serious threat to his 23-year rule.

    The fate of Wagner chief Yevgeny Prigozhin remains unclear since the June 23-24 armed rebellion and new cracks have appeared in the Russian military as the war grinds through its 17th month and Ukraine presses a counteroffensive against the invading forces.

    In remarks published Friday in the business daily Kommersant, Putin for the first time described a Kremlin event attended by 35 Wagner commanders, including Prigozhin, on June 29, five days after the rebellion. He said he praised their efforts in Ukraine, deplored their involvement in the mutiny — which he previously denounced as an act of treason — and offered them alternatives for future service.

    Putin told Kommersant that one option would see Wagner keep the same commander who goes by the call sign “Gray Hair” and has led the private army in Ukraine for 16 months. The commander, Andrei Troshev, is a retired military officer who has played a leading role in Wagner since its creation in 2014 and faced European Union sanctions over his role in Syria as the group’s executive director.

    “All of them could have gathered in one place and continued to serve,” Putin told the newspaper, “And nothing would have changed for them. They would have been led by the same person who had been their real commander all along.”

    Putin said many Wagner troops nodded in approval at the proposal, but Prigozhin, who was sitting in front and didn’t see their reaction, quickly rejected it, responding that “the boys won’t agree with such a decision.”

    Putin didn’t mention where and in what numbers Wagner could be deployed under his offer, or say what proposal the forces eventually accepted, if any. He said nothing about Prigozhin’s role.

    Kremlin spokesman Dmitry Peskov refused to elaborate on Wagner’s future while speaking with reporters Friday.

    Here’s the latest for Friday July 14th: Biden says he’s open to prisoner exchange with Russia; No fingerprints or DNA on cocaine bag found in White House; Massive floods in Mississippi; Heat wave grips much of US.

    Putin has previously said Wagner troops had to choose whether to sign contracts with the Defense Ministry, move to neighboring Belarus or retire from service.

    Speaking to Kommersant, Putin emphasized that “rank-and-file soldiers of Wagner have fought honorably” in Ukraine, adding that “it’s a cause for regret that they were drawn” into the mutiny.

    Putin’s remarks were to a Kommersant reporter who has special access to the president. They appeared to be part of efforts to denigrate Prigozhin while trying to maintain control over Wagner mercenaries and secure their loyalty.

    Putin previously denied any links between the government and Wagner, and acknowledged after the mutiny that Prigozhin’s company has received billions of dollars from the state. He noted that investigators would probe whether any of the funds had been stolen, a warning to Prigozhin that he could face financial crimes.

    State-controlled media have posted videos and photos of Prigozhin’s opulent mansion in St. Petersburg, including stacks of cash, gold bars and fake passports. The images appeared to be part of a smear campaign against the Wagner chief, who has portrayed himself as an enemy of corrupt elites even though he owes his wealth to Putin.

    Putin also said Wagner has operated without legal basis.

    “There is no law on private military organizations. It simply doesn’t exist,” he told Kommersant, adding that the government and the parliament have yet to discuss the issue of private military contractors.

    In the revolt that lasted less than 24 hours, Prigozhin’s mercenaries quickly swept through the southern Russian city of Rostov-on-Don and captured the military headquarters there without firing a shot, before driving to within about 200 kilometers (125 miles) of Moscow. Prigozhin called it a “march of justice” to oust Defense Minister Sergei Shoigu and General Staff chief Gen. Valery Gerasimov, who demanded that Wagner sign contracts with the Defense Ministry by July 1.

    The mutiny faced little resistance and fighters downed at least six military helicopters and a command post aircraft, killing at least 10 airmen. Prigozhin ordered his mercenaries back to their camps after striking a deal to end the rebellion in exchange for an amnesty for him and his men, and permission to move to Belarus.

    Belarusian President Alexander Lukashenko, who brokered the deal, has said Prigozhin was in Russia while Wagner’s troops were in their field camps. He didn’t specify the camps’ location but Prigozhin’s mercenaries fought alongside Russian forces in eastern Ukraine before their revolt and also have bases in Russia.

    Lukashenko said his military could benefit from the private army’s combat experience, and Belarusian state TV broadcast video Friday of Wagner instructors training Belarusian territorial defense forces at a firing range near Asipovichy, where a camp offered to Wagner is located. A Belarusian messaging app channel alleged Prigozhin spent a night at the camp this week and posted a photo of him in a tent.

    The Belarusian Defense Ministry didn’t say how many Wagner troops were in Belarus or specify if more will follow. Lukashenko has previously said it was up to Prigozhin and Moscow to decide on a move to Belarus. The Kremlin has refrained from comment.

    Pentagon press secretary Brig. Gen. Pat Ryder said most mercenaries have remained in Russian-occupied areas of Ukraine, but added that “at this stage, we do not see Wagner forces participating in any significant capacity in support of combat operations in Ukraine.”

    While the fate of Prigozhin remains cloudy, the Defense Ministry said Wednesday that Wagner was completing the handover of its weapons to the Russian military. That appeared to show attempts by Russian authorities to defuse the threat posed by the mercenaries and also seemed to herald an end to the group’s operations in Ukraine.

    At the same time, new fissures have emerged in the military command. Maj. Gen. Ivan Popov, commander of the 58th army in the Zaporizhzhia region, a focal point in Ukraine’s counteroffensive, said he was dismissed after speaking out about problems faced by his troops in what he described as a “treacherous” stab in the back.

    Peskov, the Kremlin spokesman, refused to comment on Popov’s remarks, referring questions to the Defense Ministry that also hasn’t commented.

    In the latest fighting, Ukraine said it shot down 16 Iranian-made Shahed drones launched overnight from Russia’s southern Krasnodar region. The presidential administration said at least four civilians were killed and 10 wounded since Thursday.

    In southern Russia, three drones were destroyed late Thursday while approaching the city of Voronezh, regional Gov. Alexander Gusev said, adding there were no injuries or damage.

    A drone also crashed and exploded in Kurchatov, where the Kursk nuclear power plant is located, without causing any damage to key facilities, said regional Gov. Roman Starovoit.

    And three people were wounded when a car exploded in a residential area of Belgorod, near the Ukraine border, according to regional Gov. Vyacheslav Gladkov.

    Ukrainian Foreign Minister Dmytro Kuleba responded to suggestions this week by British Defense Minister Ben Wallace that Ukraine could show more “gratitude” for Western military aid. The remark was an “unfortunate misunderstanding on the part of the British minister,” Kuleba said.

    “No one has any reason to accuse us of any ingratitude. But the truth is that, sorry, we are at war,” he said. “When we win, then I will say, ‘thank you, the weapons were enough,’ but while the struggle continues, the weapons are not enough.”

    ___

    Lolita C. Baldor in Washington and Yuras Karmanau in Tallinn, Estonia, contributed.

    ___

    Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine

    [ad_2]

    Source link

  • Bear Grylls goes into the wild with a new batch of celebrities, from Bradley Cooper to Rita Ora

    Bear Grylls goes into the wild with a new batch of celebrities, from Bradley Cooper to Rita Ora

    [ad_1]

    NEW YORK (AP) — For his latest role, Bradley Cooper leapt onto a hovering helicopter, rappelled down a 400-foot cliff and pulled himself across a 100-foot ravine in one of the harshest climates in North America.

    His reward wasn’t an Oscar nomination or a big box office hit. It was a hug from adventurist Bear Grylls and some words of encouragement.

    “He smashed it,” Grylls says.

    Cooper is one of several celebrities — including Benedict Cumberbatch, Cynthia Erivo, Russell Brand, Troy Kotsur, Rita Ora, Daveed Diggs and Tatiana Maslany — who put their survival skills to the test in a new season of Nat Geo’s “Running Wild with Bear Grylls: The Challenge,” premiering Sunday.

    “I’m really proud of this season. We’ve had incredible guests who pushed the boundaries in terms of terrain and the challenge,” Grylls told The Associated Press. “When there’s real tough weather with fun people, it’s often really compelling TV.”

    The series pairs Grylls with a celebrity for 48 hours in a harsh environment. The first day, Grylls teaches key skills — climbing techniques, water-finding tips and fire-setting, among them — and then the guest must do them alone the second day.

    Kotsur, who won an Oscar for “CODA,” was tested in the Scottish Highlands, descending 2,500 feet (760 meters) across eight miles (13 kilometers) of harsh terrain and freezing rivers, including a 150-foot (45-meter) rappel down a waterfall. Because Kotsur is deaf, the two men used rope tugs to communicate. Kotsur’s reward: haggis, a Scottish delicacy in which organ meat is put inside a sheep’s stomach and cooked.

    Diggs, a city kid, finds himself in the inhospitable Great Basin Desert in Nevada.

    “I don’t know how this is going to go and that’s why I’m doing it,” he says. Diggs learns how to use anchor points, track a target and make a signal fire. His dinner is a tarantula.

    “It’s not what I was hoping for, I’m not going to lie to you,” Diggs says.

    Grylls told the AP the best guests are always those who come with a willingness to go with it, not to look good.

    “The wild is so unpredictable and stuff is always happening. You can’t look cool all the time in the wild,” he said.

    The show is not just about survival. Grylls’ guests usually open up and show a different side. Ora talks about her ties to Kosovo, Cooper seems unfazed eating mule deer tongue and Cumberbatch reveals stories about his grandfather. Over a campfire, Grylls goes deeper than many TV interviewers.

    “It’s as much about the stars and their own personal journeys and struggles and battles as it is about the adventure and the places,” he says. “I think that combination works well because it doesn’t feel like a performance, like a chat show does, where you’re dressed up and made up and you get three minutes.”

    Cumberbatch is taken to the Isle of Skye, where his grandfather trained as a submariner. He learns how to use climbing talons and how to tie an Italian hitch knot.

    “It’s not the same as doing a stunt on a Marvel film. It’s a lot more real,” Cumberbatch says. His meal is seaweed and limpets — “Definitely al dente,” he jokes — and his bed is a wet field.

    Ora arrives at the Valley of Fire in Nevada following a 15,000-foot (4,570-meter) skydive, learns a chimney climb, butchers a dead pigeon, sacrifices her lip balm to make a fire and uses a sock to soak up water. She and Grylls even dance on a rock ledge, casting their shadows tall.

    “The wild strips us all bare, doesn’t it?” Grylls told the AP. “It’s like a grape when you squeeze us, you see what we’re made of. And that’s always the appealing part of ‘Running Wild’ — getting to know the real people.”

    One commonality among the guests is that viewers will often hear it was the celebrity’s parents who instilled in them a sense of adventure and testing themselves.

    “It’s a reminder just how important parenting is,” Grylls said. “Almost invariably when I ask stars, ‘Where does it come from?’ they go, ‘Oh, my dad was amazing when I was really struggling at school.’ Or, ‘My mum was just such inspiration holding down three jobs.’”

    “Running Wild with Bear Grylls” is only one of several shows the adventurist is juggling. On TBS this year, he debuted “I Survived Bear Grylls,” a competition series that bridges the survival and game show genres by having regular contestants recreate some of Grylls’ stunts — like digging through poop or drinking urine. Younger fans can also enjoy “You vs. Wild,” an interactive Netflix show that asks viewers to choose how Grylls will make it out of the wilderness alive.

    “I’m not going to be doing these shows forever but hopefully having an adventurous spirit and knowing the value of great friends and the power of a never-give-up attitude in the world — hopefully those things will keep going,” the 49-year-old said.

    He seems to have tapped into something deep in the human DNA — a need to be able to start a fire, use tools and master the wild. But Grylls thinks it’s more than that.

    “I really believe it’s a state of mind. We don’t have to be in the wild to live an adventurous life,” he said. “It’s how we live our life, how we approach our work, our relationships, our dreams, our aspirations, our interactions with people. Are we leaning on the adventure side? Are we always pushing the boundaries, taking a few risks?”

    ___

    Mark Kennedy can be reached at http://twitter.com/KennedyTwits

    [ad_2]

    Source link