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  • Pressure to fill House speaker vacancy builds amid crisis in Israel | CNN Politics

    Pressure to fill House speaker vacancy builds amid crisis in Israel | CNN Politics

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    CNN
     — 

    The House speakership drama enters a new week under increased urgency as Israel declared war Sunday following unprecedented surprise attacks by Hamas.

    Kevin McCarthy’s unprecedented ouster as speaker leaves the House iin uncharted legal territory regarding what it can do under acting Speaker Patrick McHenry. When Congress reconvenes Monday, lawmakers will be under pressure to elect a new speaker swiftly amid the crisis in Israel, which has prompted calls from within the Republican Party to speed up their timeline given the national security implications of keeping the role vacant.

    As the Biden administration looks to provide additional assistance to Israel, officials were unsure Saturday about what could be accomplished without a sitting speaker. While McHenry is serving as speaker pro tempore, he has little power outside of recessing, adjourning or recognizing speaker nominations, and it’s unclear whether he can participate in intelligence briefings on the crisis in Israel.

    Democratic House Minority Leader Hakeem Jeffries said Sunday that he had conversations with the White House and the National Security Council on Saturday, but he has not yet met with the Gang of Eight – which typically includes the top leaders and heads of the intelligence committees in both parties and both chambers.

    “I do anticipate that we’ll have the opportunity to have a secure briefing at some point next week,” Jeffries told CNN’s Dana Bash on “State of the Union.”

    Jeffries said it is his understanding that the Biden administration can make some decisions regarding aid to Israel without waiting for Congress and urged the administration to do so, adding that he expects “it will provide whatever assistance it can.”

    House Foreign Affairs Chairman Mike McCaul told Bash Sunday that there is currently $3.3 billion in foreign military financing already appropriated that the president can use.

    The Texas Republican also called McCarthy’s ouster “dangerous.”

    “I look at the world and all of the threats that are out there and what kind of message are we sending to adversaries when we can’t govern, when we are dysfunctional, when we don’t even have a speaker of the House?” McCaul said on “State of the Union.”

    McCarthy on Saturday slammed his Republican colleagues for removing him from office last week, and stressed the impact of a speakerless House on national security. “Why would you ever remove a speaker during a term to raise doubt around the world?” McCarthy asked in a Fox News interview.

    McCarthy announced shortly after his ouster that he would not seek the speakership again, making room for House Majority Leader Steve Scalise of Louisiana and Ohio Rep. Jim Jordan to launch their bids for the seat. Former President Donald Trump has thrown his support behind Jordan. Oklahoma Rep. Kevin Hern announced Saturday that he had decided not to run, saying “I believe a three-man race for Speaker will create even more division and make it harder to elect a Speaker.”

    House Republicans are scheduled to hold a candidate forum on Tuesday and an internal election on Wednesday. But it’s unclear when the floor vote will happen, and the timeline is contingent on whether moderate GOP lawmakers can rally around Scalise or Jordan, who are among the hardliners of the party.

    “We have to get a speaker elected this week so we can get things on the floor like replenishing the Iron Dome,” McCaul told Bash on Sunday – referring to Israel’s rocket defense system, which was developed with help from the United States. He added that the House should look to pass a resolution condemning Hamas “by unanimous consent whether or not we have a speaker in place because I think we cannot wait. We have to get that message out as soon as possible.”

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  • ABC: Trump allegedly discussed sensitive nuclear submarine information with a Mar-a-Lago member | CNN Politics

    ABC: Trump allegedly discussed sensitive nuclear submarine information with a Mar-a-Lago member | CNN Politics

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    CNN
     — 

    Former President Donald Trump allegedly discussed potentially sensitive information about US nuclear submarines with a member of his Mar-a-Lago resort in Palm Beach, Florida, following his presidency, ABC reported Thursday.

    The member is Australian billionaire Anthony Pratt, sources told ABC. A source familiar with the matter confirmed to CNN’s Kaitlan Collins that Pratt, who had a close relationship with Trump when he occupied the Oval Office, was interviewed by the special counsel probing Trump’s retention of classified documents after leaving office. Another source told CNN’s Kristen Holmes that Pratt is on the list of potential witnesses for when the trial begins.

    Sources told ABC that Pratt allegedly went on to share the information he received from the former president during an April 2021 meeting with “more than a dozen foreign officials, several of his own employees, and a handful of journalists.”

    ABC also reported that according to sources, a former Mar-a-Lago employee told investigations that he was “bothered” by the former president disclosing such information to someone who is not a US citizen. He added that he heard Pratt sharing potentially sensitive information minutes after his meeting with the former president, sources told ABC.

    These allegations were not included in special counsel Jack Smith’s indictment of Trump over his handling of classified documents. But the incident was reported to and investigated by Smith’s team, according to ABC.

    A Trump spokesperson slammed ABC’s report, telling CNN that the claims “lack proper context and relevant information.”

    “The Department of Justice should investigate the criminal leaking, instead of perpetrating their baseless witch-hunts while knowing that President Trump did nothing wrong, has always insisted on truth and transparency, and acted in a proper manner, according to the law,” the spokesperson said.

    CNN has reached out to Pratt, who did not respond to multiple requests for comment. A spokesperson for Smith declined to comment.

    Pratt allegedly told investigators that after he told Trump that Australia should buy submarines from the US, the former president went on to share how many nuclear warheads US submarines carry and “how close they can get to a Russian submarine without being detected,” sources told ABC. But Pratt told investigators that he was not shown any government documents, the sources said.

    His company, Pratt Industries, opened a plant in Ohio while Trump was president. Trump attended the opening and praised the businessman in his remarks.

    Another source told CNN’s Collins that during that visit, Pratt planned to unveil two plaques, an official one celebrating the plant’s opening in the US and a second one that he had told Trump about beforehand. The second plaque, which Pratt kept a secret until the day of the visit, read, “Make America and Australia Great Again.” But officials attending the plant’s opening quickly pulled it down and advised Pratt against the move, that source said.

    CNN previously obtained an audio of a July 2021 meeting Trump had in his Bedminster, New Jersey, golf club, during which the former president acknowledged that he held on to a classified Pentagon document about a potential attack on Iran. The audio, exclusively reported by CNN, was a critical piece of evidence in the special counsel’s indictment.

    Trump is facing 40 counts in the classified documents case, including willful retention of national defense information and conspiracy to obstruct justice. It is one of four cases in which the former president has been indicted.

    Trump, who is seeking to return to the White House and remains the GOP front-runner, asked the judge presiding over the case late Wednesday to delay the trial until after the 2024 elections. A similar request was previously denied.

    This story has been updated with additional reporting.

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  • US fighter jet downs a drone belonging to NATO ally Turkey over Syria, officials say | CNN Politics

    US fighter jet downs a drone belonging to NATO ally Turkey over Syria, officials say | CNN Politics

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    CNN
     — 

    A US F-16 fighter jet shot down an armed Turkish drone in northeast Syria that was operating near US military personnel and Kurdish Syrian Democratic Forces, officials familiar with the incident told CNN.

    The US assessed the armed drone posed a potential threat and issued more than a dozen warnings before shooting it down, the officials said. It is unclear how the warnings were issued. US forces exercised their right to self-defense in shooting down the drone, officials said.

    There were no reports of US casualties, an official said.

    Several drones made repeated approaches toward US troop positions in Hasakah, Syria, the officials said. Turkish airstrikes targeted several Kurdish-controlled areas in northeastern Syria on Thursday, killing at least eight people, including six security forces, and wounded three civilians, according to a statement by Kurdish Internal Security Force, Asayish.

    The incidents put the US in a precarious position. Turkey is a NATO ally and a critical partner for the US in the region, as well as playing a key role in the Ukraine conflict. At the same time, the SDF partners with the US in the campaign to defeat ISIS.

    The Turkish Defense Ministry said the drone didn’t belong to the Turkish armed forces, Reuters reported. CNN is reaching out to the Turkish government.

    US officials do not believe the drone was targeting American personnel specifically, but US forces operate closely alongside the Kurds in northern Syria as part of the anti-ISIS coalition there. Turkey considers the Kurdish forces to be a terrorist organization and regularly targets them inside Iraq and Syria.

    Turkey’s Foreign Minister Hakan Fidan said on Wednesday that Turkey considers all Kurdish militia facilities and infrastructure in Syria and Iraq as “legitimate targets” after the Kurdistan Workers Party carried out a suicide attack in Ankara on Sunday.

    Fidan added that “third parties” should stay away from the Kurds.

    “I advise third parties to stay away from PKK and YPG facilities and individuals,” he said. “Our armed forces’ response to this terrorist attack will be extremely clear and they will once again regret committing such an action.”

    Last November, a Turkish drone strike in northeast Syria endangered US troops and personnel, according to the US military. That prompted a call between the top US general and his Turkish counterpart.

    The strike targeted a base near Hasakah, Syria, used by US and coalition forces in the ongoing campaign to defeat ISIS. The Kurdish-led Syrian Democratic Forces (SDF) said two of their fighters were killed in the attack. The strike earned a stern rebuke from the Pentagon, which said it “directly threatened the safety of US personnel.”

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  • Taylor Swift’s Eras Tour movie hits a presale record for Cinemark | CNN Business

    Taylor Swift’s Eras Tour movie hits a presale record for Cinemark | CNN Business

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    New York
    CNN
     — 

    Taylor Swift’s concert film hasn’t even been released yet and it’s already toppling box-office records.

    Cinemark, a theater chain with about 500 locations, said that ticket sales for “Taylor Swift: The Eras Tour” are “setting domestic presale records” with demand “10 times higher” than any other event film the company has exhibited. The reaction has “blown everyone away,” Cinemark announced in a press release.

    Excitement has been building for the 3-hour-long film, which is opening Friday, October 13. An ad for the movie even aired during NBC’s “Sunday Night Football” last weekend, where Swift made an appearance to cheer on her possible boyfriend, Kansas City Chiefs star Travis Kelce.

    Cinemark is not the first theater chain to experience an increase in sales via Swift: AMC Theaters previously announced that the singer’s Eras Tour concert movie “shattered records for single-day advance ticket sales revenue,” with $26 million sold on the first day that presales went live on August 31.

    Swift’s movie crushed the single-day record less than three hours after tickets became available, prompting AMC to add extra showtimes where possible.

    The concert film, which is being screened in some theaters in both IMAX and standard versions, is expected to rake in between $100 million to $125 million in its opening weekend, according to industry estimates.

    Superstar Beyoncé is also releasing a film version of her “Renaissance World Tour” for a theatrical release. Ticket presales began Monday for the December 1 premiere.

    For theaters eying a potentially grim fall with the ranks of movies thinned out by the (recently resolved) writers strike and the actors strike, the one-two punch looks like a gift from the musical gods. It’s a potential means of filling seats that doesn’t rely on what has come to look like an increasingly shaky theatrical business even with usually reliable studio blockbusters.

    In addition to Swift and Beyoncé, the box office also has been helped out by another fierce female: “Barbie.” The film hit the $1 billion global box office mark barely three weeks into its run — only about 50 films in history, adjusted for inflation, have reached the benchmark. It’s made more than $630 million in the US box office since its July release. (CNN and “Barbie” movie distributor Warner Bros. Pictures share the same parent company.)

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  • ‘Our grief is still too fresh’: Lahaina residents petition to delay reopening West Maui to tourists after devastating fires | CNN

    ‘Our grief is still too fresh’: Lahaina residents petition to delay reopening West Maui to tourists after devastating fires | CNN

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    CNN
     — 

    Residents in Lahaina are petitioning Hawaii Gov. Josh Green to delay reopening West Maui to tourists this weekend, saying the community is still grieving and needs more time to heal after the devastating wildfires that left 97 dead.

    The fires on West Maui nearly leveled the historic town of Lahaina in early August, obliterating homes and displacing hundreds of residents – many of whom had to make harrowing escapes to survive. Crews spent days digging through the ashes of what used to be homes, businesses and historic landmarks in search of remains.

    “The weight of recent events still burden on our shoulders and our souls ache with grief,” Lahaina native Paele Kiakona said at a news conference Tuesday. “Yet, amidst this profound pain, we are being urged to march forward even as our wounds remain open and vulnerable. We urgently ask for understanding and patience to allow survivors more time to grieve.”

    “Not yet,” he said. “Our grief is still too fresh and our loss is too profound.”

    Residents in protective gear have been allowed to return to survey what’s left of their homes for the first time in phases over the past two weeks, and the state plans to reopen West Maui to visitors on October 8.

    The petition by local organization Lahaina Strong, which has over 15,000 signatures, says Lahaina’s working families are still struggling to find shelter, to provide for their children’s education and to cope with the trauma.

    “Delaying the reopening will allow for a more comprehensive and inclusive approach that takes into account the welfare and well-being of all West Maui residents and visitors alike,” the petition says.

    Green told CNN in a statement that reopening is necessary to help the over 8,700 people on Maui who are unemployed, saying reopening “will heal faster and continue to be able to afford to live on the island they love and call home.”

    “Some people aren’t ready, and we’re going to let people find their own time and way, with our administration providing the services they need to help them get there,” he said. “We will gently reopen in partnership with Mayor Bissen and the County of Maui and will utilize a phased approach throughout the month of October.”

    Kiakona said he’s an employee on the island himself, and understands that the business will benefit from reopening, but he’s not ready to face questions about what he’s gone through.

    “I’m not ready to go back. I don’t want the conversation to always be, ‘Oh, did you lose your home?’” Kiakona said.

    “We understand the economic implications – the world’s eagerness to experience the magic of Lahaina once more. But we implore you, let Lahaina heal. Let our spirits find peace. Let’s move forward, but only when we’re truly ready,” Kiakona said.

    Kiakona said many of the town’s residents are faced with the difficult task of trying to balance personal healing with the urgency to provide for their families.

    “While the ashes may have settled, our hearts still ache trying to find solace and make sense of this devastation,” Kiakona said.

    The group on Tuesday urged the state to allocate more funds towards direct unemployment benefits for workers and grants for small businesses.

    The state currently has disaster unemployment benefits available through February 2024 for Maui workers and business owners who lost their jobs or had reduced work hours due to the wildfires, according to Maui officials.

    Maui Councilmember Tamara Paltin, who joined the petitioners Tuesday, said that while two months might seem like a long time, survivors have spent them trying to get housing and many children aren’t back in school yet.

    There were over 7,700 people still staying at 40 Red Cross temporary housing locations around Maui as of last week, according to the county.

    Paltin reminded tourists that other parts of the island are open, including beach communities in south Maui.

    “Maui isn’t closed, West Maui is closed,” Paltin said. “Feel free to visit Wailea-Makena, stay there and enjoy your vacation and support our economy from South Maui.”

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  • Why you should care about the global rout in government bonds | CNN Business

    Why you should care about the global rout in government bonds | CNN Business

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    London
    CNN
     — 

    A slump in government bonds around the world has pushed up the cost of some nations’ debt to levels not seen in more than a decade. That’s bad news for governments in the red but also for the wallets of millions of mortgage borrowers, stock investors and businesses.

    The sell-off has been fueled by expectations among investors that the world’s major central banks will keep interest rates “higher for longer” to bring inflation down to their targets.

    It works like this: Governments looking to raise cash for public services and investments issue bonds. A bond provides a way to borrow money from investors for a set length of time, with the obligation to make regular interest payments.

    When official interest rates rise, so do investors’ expectations for returns on bonds, known as yields. This creates an incentive for investors to sell the bonds they currently hold and buy newly issued ones that offer higher interest payments. Selling bonds reduces prices. So, in short, when yields rise, bond prices fall.

    And yields have most definitely been rising: The yield on 30-year US government bonds, also known as Treasuries, hit 5% on Tuesday for the first time since 2007. In the United Kingdom, the yield on 30-year bonds also reached 5% this week, the highest level in more than two decades.

    Yields on German long-dated bonds are back to levels last seen on the eve of the eurozone debt crisis in 2011. Yields on Italy’s 10-year bonds hit 5% on Wednesday, the highest level since 2012, when that crisis was in full swing.

    Here’s why you should care.

    The yields on local government bonds are usually used by banks to price mortgages.

    The disastrous “mini” budget unveiled by former UK Prime Minister Liz Truss in September last year provided a stark illustration of that relationship. Her plan to borrow tens of billions of pounds to fund tax cuts spooked bond investors who feared that the country’s finances were on an unsustainable path.

    The resulting sell-off in UK government bonds — called “gilts” — caused yields to shoot up, taking mortgage costs higher with them.

    The average interest on a two-year fixed-rate mortgage soared to 6.47% at the start of November 2022, according to data from product comparison website Moneyfacts, the highest level since the depths of the global financial crisis in August 2008.

    Early morning sun illuminates streets of residential terraced houses, on September 17, 2023 in Bath, England. Soaring interest rates and falling prices has meant the end of the UK's 13-year housing market boom potentially leading to a wider house price crash.

    That meant hundreds of pounds more a month in mortgage payments. Before higher mortgage rates kicked in, some panicked homeowners rushed to refinance their fixed-rate loans earlier than planned, accepting a financial penalty for doing so.

    Mortgage rates had been falling back since the drama last fall but are now back to 6.47%, this month’s data from Moneyfacts shows.

    In the United States, mortgage rates tend to track the yield on 10-year Treasuries, and that yield has risen 0.27 percentage points since late September.

    On Thursday, government-backed mortgage provider Freddie Mac announced that the average interest on a 30-year fixed-rate mortgage had hit 7.31% in the week ending September 28 — its highest level since 2000.

    “Higher mortgage rates create a standoff between potential buyers, who face some of the highest borrowing rates since 2000, and sellers, who may already enjoy a low fixed-rate mortgage and thus are less incentivized to sell,” Andrew Sheets, global head of corporate credit research at Morgan Stanley, told CNN.

    Surging government bond yields are probably coming for your stock portfolios too.

    Shares typically lose value when the yields on government debt rise, as investors can now get high returns — and a steady income — from less risky assets.

    Take the yield on 10-year Treasuries: at 4.78%, it is more than twice as high as the average yearly dividend paid out by the companies making up the S&P 500 index (SPX).

    “The higher the gilt yield goes, the less inclined, or obliged, investors will feel to take risk and pay up for other asset classes, such as shares,” Russ Mould, investment director at AJ Bell, told CNN.

    Stock indexes have tumbled on both sides of the Atlantic in recent weeks. The S&P 500 and the tech-heavy Nasdaq Composite (NDX) have shed 4% and 2.3% respectively since the Federal Reserve said late last month that it could hike rates once more this year and expected to make fewer rate cuts in 2024.

    The STOXX Europe 600 has sunk 4.5% and London’s FTSE 100 4.3% in that time.

    “Income is back,” analysts at BlackRock, the world’s biggest asset manager, wrote in a note Monday, recommending investments in short-dates US Treasuries.

    Stocks have also taken a hit in recent weeks as rising oil prices, an ailing Chinese economy and the prospect of another government shutdown in the United Stated have unnerved investors.

    High official interest rates in America and Europe have also raised the cost of borrowing for businesses.

    “Higher interest rates make borrowing less attractive, and we’ve already seen a sharp slowing of bank lending that we think is consistent with this idea,” said Sheets at Morgan Stanley.

    “It’s important to note that slower credit growth, which generally means a cooler economy, is precisely what the Federal Reserve is trying to achieve through its large recent rate hikes,” he added.

    Higher yields also mean that the government must pay more to service its debt — with less money available to spend elsewhere.

    The US government is currently sitting on a $33 trillion debt pile and is expected to incur more than $1 trillion in average annual interest costs over the next decade.

    In March, when gilt yields were much lower than now, the UK’s public spending watchdog said it expected the annual interest paid on the government’s pile of debt to peak at £115 billion ($140 billion) this year. That’s almost three times as much as the UK government plans to spend in 2023 on a key benefit for children and people with disabilities.

    Rising bond yields mean that “for any given level of borrowing, more must be spent on debt interest, leaving less scope to finance other priorities,” the Office for Budget Responsibility said in its March forecast.

    Higher gilt yields give politicians “less wiggle room to ease [the] cost-of-living pain through tax cuts or public sector pay offers,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, wrote in a note Wednesday.

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  • Nobel Prize awarded for discovery of quantum dots that changed everything from TV displays to cancer imaging | CNN

    Nobel Prize awarded for discovery of quantum dots that changed everything from TV displays to cancer imaging | CNN

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    CNN
     — 

    The 2023 Nobel Prize in chemistry has been awarded to a trio of scientists who worked to discover and develop quantum dots, used in LED lights and TV screens, as well as by surgeons when removing cancer tissue.

    The prize was won by Moungi Bawendi, Louis Brus and Alexei Ekimov, the Nobel committee for chemistry announced in Stockholm on Wednesday.

    “For a long time, nobody thought you could ever actually make such small particles. But this year’s laureates succeeded,” said Johan Aqvist, chair of the committee.

    The scientists were lauded as “pioneers in the exploration of the nanoworld” – in which matter starts to be measured in millionths of a millimeter. At this level, strange phenomena start to occur called “quantum effects.”

    Quantum dots consist of just a few thousand atoms. In terms of size, one quantum dot is to a soccer ball as a soccer ball is to the Earth.

    When light is passed through quantum dots they emit a specific color. This can be finely tuned and is determined by the size of the dots. The bigger dots glow red, while the smallest glow green or blue.

    The slightest of changes in the size of the particle can change its hue right across the spectrum of the color wheel.

    “We can tune these dots to fluoresce at any color that a given application requires,” Michael Edelman, CEO of UK-based quantum manufacturer Nanoco, told CNN.

    The laureates’ work has allowed scientists to capitalize on some of the properties of the nanoworld, and quantum dots are now found in living rooms and operating theaters across the world.

    They are now widely used in TVs and have several advantages over traditional LCD panels, creating more vibrant and accurate colors, as well as requiring less energy to operate.

    The dots are also widely used in medical diagnostics. Doctors use them to illuminate molecules that can bind themselves to cancer tumors, allowing the surgeon to distinguish the healthy tissue from the diseased.

    The Nobel committee explained how the scientists’ work had helped develop quantum dots.

    In the 1980s, Ekimov created size-dependent quantum effects in colored glass. “The color came from nanoparticles of copper chloride and Ekimov demonstrated that the particle size affected the color of the glass via quantum effects,” the committee said.

    A few years later, Brus became the first scientist to prove size-dependent quantum effects in particles floating freely in a liquid.

    In 1993, Bawendi then changed the chemical production of quantum dots, resulting in what the committee called “almost perfect particles.” This development allowed the dots to be used in applications.

    Bawendi, a professor at the Massachusetts Institute of Technology, and Brus, professor emeritus at Columbia University, are American. Ekimov is Russian and works for Nanocrystals Technology Inc.

    The deliberations of the Nobel committee are usually shrouded in total secrecy. No shortlists for the Nobel prizes are revealed and the winners are called shortly before the official announcement.

    But the chemistry committee inadvertently published the name of the winning trio before the official announcement on Wednesday.

    Swedish newspaper Aftonbladet published a copy of an email it said was from the academy, Reuters reported. Aqvist told Reuters ahead of the announcement that the email had been a “mistake” and stressed that a final decision had not been made. But hours later, the leaked names were confirmed as laureates.

    “Let me say that this is of course, very unfortunate. We deeply regret what happened for sure,” Hans Ellegren, secretary general of Royal Swedish Academy of Sciences, said at the announcement ceremony.

    “There was a press release sent out for still unknown reasons. We have been very active this morning to trying to find out what actually happened but at this place, we don’t know that. we deeply regret that this happened. The important thing is that it did not affect the awarding of the prize.”

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  • The fate of this consumer watchdog is in the hands of the Supreme Court | CNN Business

    The fate of this consumer watchdog is in the hands of the Supreme Court | CNN Business

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    New York
    CNN
     — 

    On Tuesday, the Supreme Court began hearing oral arguments in a case that will determine the fate of the Consumer Financial Protection Bureau.

    The case was brought on by the Community Financial Services Association of America, a trade group representing payday lenders.

    The group scored a victory last year in a case it brought before the US Court of Appeals for the Fifth Circuit, in New Orleans. The three-judge panel ruled the CFPB’s funding violates the Constitution’s Appropriations Clause and separation of powers. The Supreme Court will have the final say on that, however.

    The consumer watchdog agency was created after the 2008 financial crisis by way of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The agency was the brainchild of Democratic Sen. Elizabeth Warren. She began advocating for it in 2007 when she was a Harvard Law School professor.

    The broad purpose of the CFPB is to protect consumers from financial abuses and to serve as the central agency for consumer financial protection authorities.

    Prior to the CFPB’s formation, “[c]onsumer financial protection had not been the primary focus of any federal agency, and no agency had effective tools to set the rules for and oversee the whole market,” the agency said on its site.

    The CFPB is funded by the Federal Reserve in an effort to keep the agency independent from political pressure. It also means that the agency doesn’t depend on Congressional appropriations funds.

    While there are critics of the agency’s current structure and funding, it has saved consumers money, made it easier for them to seek redress and to get better clarity and more tailored responses from companies when they have a problem with their accounts, loans or credit reports.

    “Today virtually all financial transactions for residential real estate in the United States depend upon compliance with the CFPB’s rules, and consumers rely on the rights and protections provided by those rules,” the Mortgage Bankers Association, the National Association of Homebuilders and the National Association of Realtors said in an amicus brief to the Supreme Court.

    For instance, the CFPB recently ordered Bank of America to pay $100 million to customers and $90 million in penalties saying that the nation’s second-largest bank harmed consumers by double-dipping on fees, withholding credit card rewards and opening fake accounts.

    The CFPB also took action against Wells Fargo after the agency found the bank had been engaging in multiple abusive and unlawful consumer practices across several financial products between 2011 and 2022 — from auto loans to mortgage loans to bank accounts.

    The agency ordered the bank to pay a $1.7 billion civil penalty in addition to more than $2 billion to compensate consumers.

    The Supreme Court’s decision, which likely won’t be announced until the spring of 2024, has far-reaching implications.

    If the Supreme Court finds the CFPB’s funding structure unconstitutional, it could shutter the agency and invalidate all of its prior rulings.

    “Without those rules substantial uncertainty would arise as to how to undertake mortgage transactions in accordance with federal law,” the associations said in their joint brief. “The housing market could descend into chaos, to the detriment of all mortgage borrowers,” they added.

    It could also call into question the constitutionality of other government agencies like the Federal Reserve and the Federal Deposit Insurance Corporation that also aren’t funded by Congressional appropriations.

    “We are confident in the constitutionality of the statute that created the CFPB within the Federal Reserve System and provides its funding,” Sam Gilford, a spokesperson for the CFPB, told CNN in a statement. “We will continue to carry out the vital work Congress has charged us to perform.”

    There’s also a way for the Supreme Court to change the CFPB’s funding structure in a way that wouldn’t invalidate prior rulings, said Joseph Lynyak III, a partner at the law firm of Dorsey & Whitney and a regulatory reform expert.

    “This result would be far more probable rather than voiding the last decade of the CFPB’s activity,” he added.

    From listening to the case on Tuesday, though, Lynyak believes the Supreme Court will rule that the CFPB’s funding structure is constitutional.

    “As we have argued from the outset, the CFPB’s unique funding mechanism lacks any contemporary or historical precedent,” said Noel Francisco, a lawyer arguing on behalf of those challenging the constitutionality of the CFPB’s funding structure.

    He added that it “improperly shields the agency from congressional oversight and accountability, and unconstitutionally strips Congress of its power of the purse under the Appropriations Clause of the Constitution.

    But both Republican and Democratic-appointed justices told Francisco on Tuesday they could not understand the crux of his argument.

    “I’m at a total loss,” said Justice Sonia Sotomayor. Echoing her remarks, Justice Amy Coney Barrett said, “we’re all struggling to figure out what’s the standard that you would use.”

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  • Britain’s PM seeks to rally his party ahead of an election they are tipped to lose | CNN

    Britain’s PM seeks to rally his party ahead of an election they are tipped to lose | CNN

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    London
    CNN
     — 

    Rishi Sunak will gather with members of his governing Conservative Party on Sunday for what is likely to be their final party conference before the UK’s next general election, which Sunak is currently projected to lose. 

    The Conservatives come together for their annual meeting with little good news to celebrate. The party is trailing the opposition Labour Party in the polls by a significant distance. 

    Sunak has been criticized by moderates in the party for tacking to the right on key issues like immigration and commitments to reducing carbon emissions. He is also being attacked from the party’s right for what they perceive to be an anti-conservative approach to taxation and public debt. 

    As if Sunak’s job uniting his party this week wasn’t hard enough, the Institute for Fiscal Studies, the leading economic research institute in the UK, published a report projecting that taxes will account for around 37% of national income by the next election – the highest level since World War II. 

    Party conference season is an important date fixture in the annual British political calendar. Taking place in the early fall, these jamborees are the principal forums for each party to outline its priorities for the next 12 months. 

    For the governing party, conference is typically a time when members rally around the leadership and unite against the opposition, insulated from whatever is happening in the wider world of politics. 

    This should be especially true as an election approaches. However, Sunak, who wasn’t even the Conservatives’ leader this time last year, has inherited a broken party that has been in power for so long it seems out of ideas and already preparing for the post-mortem and blame game that follows any election loss. 

    And factions on both the left and right of the party are already publicly criticising Sunak on a range of issues. 

    Examples coming into this year’s conference: 

    Former cabinet minister Priti Patel told British channel GB News on Friday that the tax burden was “unsustainable” before unfavourably comparing Sunak to tax-cutting former PM, Margaret Thatcher. 

    The Conservative-supporting Daily Mail newspaper ran a column titled: “Didn’t the Tories used to be party of tax CUTS?”

    Sunak can also expect vocal criticism from the environmental wing of his party after a significant U-turn last week on climate policy. Sunak delayed a planned moratorium on the sale new gasoline and diesel cars from 2030 to 2035 and pushed back on plans to phase out gas boilers in homes. 

    Some Conservatives who support action on the climate crisis, not least former PM Boris Johnson, criticised Sunak, saying the UK “cannot afford to falter now” or “lose our ambition.” 

    Such a direct criticism of a sitting PM by a former PM is highly unusual. What makes it particularly painful for Sunak is that Johnson is at the heart of perhaps the most crucial internal battle within the Conservative Party. 

    Greenpeace activists targeted British Prime Minister Rishi Sunak's private mansion this year.

    Johnson was forced to resign from office because of a range of scandals last summer. However, Johnson’s most loyal acolytes believe that Sunak’s decision to quit as Johnson’s finance minister was the straw that broke the camel’s back and made Johnson’s position untenable. They believe he was motivated by the opportunity to take a run at the top job himself, something Sunak denies. 

    This battle between Sunak and Johnson has created a very strange dynamic within the party. 

    Johnson, darling of the Conservative right since the Brexit referendum, is in many ways politically to the left of Sunak. However, his pragmatism over Brexit and cautious economics has led to his allies painting Sunak as a Conservative sellout.

    They also believe that Sunak’s betrayal of Johnson and apparent wish-washy centrism is what will ultimately cost the Conservative Party the next general election – ignoring the damage that Johnson did to the party and its standing in the polls through his scandal-ridden premiership. 

    Sunak has made attempts to counter these attacks by throwing red meat at Conservative MPs and voters. The U-turn on climate policies is just the most recent example. He’s made a crackdown on immigration – particularly the route across the English Channel from France in so-called small boats – a key plank of his agenda since taking office. 

    He’s been accused of sowing division over over the complex issue of trans rights in attempts to win over his own MPs and has leant into the Johnsonite position of attacking “lefty lawyers” over opposition to his plans, including those on immigration.

    Prime Minister Rishi Sunak speaking in June on his plan to

    His hard-line shift doesn’t necessarily resonate with the public, most polls show. Which is why experts believe that Sunak is doubling down on his Conservative base, which might be his only real path to retaining power at the next election. 

    “Sunak’s strategy of taking on issues like net zero and small boats is very much a ‘core vote’ strategy, aimed at securing the Conservative base,” says Will Jennings, professor of politics at the University of Southampton. 

    “This is not without risk – firstly because it’s not clear how large that core vote is without Boris Johnson, Brexit and Jeremy Corbyn (the controversial, hard-left former Labour leader) and also because voters have other concerns right now – most notably the economy,” he adds. 

    If you talk to senior Conservatives right now, there is a quiet acceptance that a loss is the most likely result of the next election. Most agree that not only does this look like a government in its death throes, but also that everyone is already thinking about who will replace Sunak after his defeat. Factions on the right and left of the party are already forming and people on both sides are already talking about how to win the battle for the soul of their party. 

    While the next election may not be a foregone conclusion, the next few months will be critical if Sunak is to start turning the polls around and make the comeback of all comebacks. All of that starts this week in Manchester: a good conference could lift the mood and rally the troops; a bad conference could be the kiss of death to any hope his party had left. 

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  • With China’s help, Indonesia is launching Southeast Asia’s first bullet train | CNN

    With China’s help, Indonesia is launching Southeast Asia’s first bullet train | CNN

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    CNN
     — 

    Indonesia is launching Southeast Asia’s first-ever bullet train on Sunday, a high-speed rail service line that will connect two of the country’s largest cities.

    Part of China’s Belt and Road infrastructure initiative and largely funded by Chinese state-owned firms, the $7.3 billion project opened to the public on Sunday, following a series of delays and setbacks.

    The train will travel between the capital Jakarta and Bandung in West Java, Indonesia’s second-largest city and a major arts and culture hub.

    The 86-mile (138-kilometer) high-speed rail line, officially named WHOOSH – which stands for “time saving, optimal operation, reliable system” in Indonesian – runs on electricity with no direct carbon emissions and travels at a speed of roughly 217 miles per hour – cutting travel time between Jakarta and Bandung from three hours to under less than an hour, officials say.

    Overseen by the joint state venture PT Kereta Cepat Indonesia China (PT KCIC), the train travels between the Halim railway station in East Jakarta and Padalarang railway station in West Bandung, and is well connected to local public transport systems.

    The trains, modified for Indonesia’s tropical climate, are equipped with a safety system that can respond to earthquakes, floods and other emergency conditions, officials added.

    There are talks to extend the high-speed line to Surabaya – a major port and capital of East Java Province, PT KCIC director Dwiyana Slamet Riyadi told Chinese state media outlets at a ceremony earlier in September.

    Stops at other major cities like Semarang and Yogyakarta, the gateway to Borobudur – the largest Buddhist temple in the world – are also being planned, Dwiyana said.

    According to information released by PT KCIC, the railway features eight cars – all equipped with Wi-Fi and USB charging points – and seats 601 passengers.

    There will be three classes of seats – first, second and VIP.

    Indonesia, the world’s fourth-largest country and Southeast Asia’s largest economy, has been actively and openly courting investment from China, its largest trade and investment partner.

    A high-profile meeting in July between Indonesian and Chinese leaders Joko Widodo and Xi Jinping unveiled a series of projects, including plans to build a multi-billion dollar Chinese glass factory on the island of Rempang in Indonesia’s Riau Islands Archipelago as part of a new ‘Eco-City,’ sparking weeks of fierce protests from indigenous islanders opposed to their villages being torn down.

    Indonesia's outgoing President Joko Widodo rides the high-speed railway during a test ride in Jakarta.

    Widodo and Chinese Premier Li Qiang were photographed taking test rides on the new high-speed railway throughout September.

    The train deal was first signed in 2015 as part of China’s Belt and Road Initiative and construction began later that year.

    It was initially expected to be completed in 2019 but has faced multiple operational delays as a result of the Covid-19 pandemic as well as land procurement and ballooning costs.

    PT KCIC’s director Dwiyana hailed the Jakarta-Bandung high-speed railway as an “outstanding example of bilateral cooperation between Indonesia and China.” It will not only improve Indonesian infrastructure but “promote the development of Indonesia’s railroad and manufacturing industries,” he said.

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  • As he turns 99, Jimmy Carter’s hometown honors the former president as a global humanitarian — and a good friend | CNN Politics

    As he turns 99, Jimmy Carter’s hometown honors the former president as a global humanitarian — and a good friend | CNN Politics

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    Plains, Georgia
    CNN
     — 

    More than 14,000 people have written to Jimmy Carter for his 99th birthday.

    The wishes, posted in a digital mosaic created by The Carter Center, come from around the world: an Ohio family thanks the 39th US president for being an example of “how to live”; a Georgia resident recalls shaking his hand during his run for governor; a man sends best wishes from Switzerland.

    There are notes from Ecuador and Costa Rica, Europe and Australia and from every corner of the United States. Many thank Carter for his humanitarian service. Others – a few famous, most not – share admiration or memories of brief encounters. Some say they love him.

    The messages’ renowned recipient – with a brief exception last Saturday, during a peanut festival – has largely stayed out of the public eye since opting seven months ago to start receiving home hospice care following a series of hospital stays. Carter’s wife, Rosalynn, has dementia, the non-profit they founded announced in May.

    The couple, married for 77 years, has been spending slow days – likely among his last, their closest relatives acknowledge – together at their home in the southwest Georgia city of Plains, population: 700-ish.

    Here, the former president – who years after his White House term won a Nobel Peace Prize and launched a global charge to eradicate a painful disease – is known simply as “Mr. Jimmy.”

    And here, the small, middle-of-nowhere town Carter helped put on the map is also perhaps the center of his legacy, where hundreds of annual visitors exchange stories with residents who know him not as the former commander in chief but as the man who sat by a friend’s bedside during a difficult illness, who sent an encouraging note when a new restaurant owner’s business slowed and who regularly spoke about his faith on Sundays in his longtime church.

    “He was only president for four years. He was governor for four years. But he was a resident of Plains, Georgia, for 99,” his grandson, Jason Carter, told CNN. “And that is, fundamentally, who he is.”

    On Wednesday morning, four days before Carter’s birthday, the single-block downtown of Plains was – as it usually is – quiet. A rainstorm was slowly clearing. Tractor engines drove back and forth over the railroad tracks that separate a skinny highway from Main Street.

    A peanut wagon is pulled across Main Street in February in Plains, Georgia.

    Doris Day’s “Sentimental Journey” played over public speakers.

    Along a row of colorful brick façades, every downtown store was open for business. Among them: Plain Peanuts, where owner Bobby Salter spent more than a year in the early 2000s perfecting his peanut butter ice cream recipe.

    It’s Carter’s favorite, he says.

    Two doors down, Philip Kurland sits by the register inside the Plains Trading Post. He runs the business – with hundreds of political campaign buttons dating back to Millard Fillmore – with his wife. The pair was driving through Plains more than 30 years ago when they spotted an empty building for sale and decided to call this place home.

    Kurland had had his doubts about whether the Carters really lived in Plains, he admitted – until the former president and his wife showed up at the store to welcome them.

    Philip Kurland of the Plains Trading Post poses in February 20 in Plains.

    In the past few years, the Kurlands had reduced the store’s hours to just two days a week. But when Carter announced in February he would begin hospice care, Kurland began opening the store all seven days, he said, as a way of giving back. “I talk to people every day of the week and listen to their stories about Jimmy Carter and how they interacted,” he said. “People want to tell their stories and reminisce. And I want to be there to listen.”

    Some say they campaigned with Carter; others met him at a book signing. Still others say he helped them through hardship. Kurland, who never shies away from talking politics with customers, once asked a visitor how they thought Carter as president handled the Iranian hostage crisis.

    “The guy looked up and smiled,” Kurland recalled.

    “And he said: ‘I’m still alive.’”

    Kurland also has stories of his own, including how Carter spent an hour with him when he was laid up with a bad respiratory virus. “I remember he got my life story. I remember I was a little bit surprised because he already knew some of it. And I remember … I was happy about being sick, that I got the opportunity to really get to know the president.”

    Campaign buttons for former President Jimmy Carter and others are seen in February in Plains.

    Plains City Councilperson Eugene Edge Sr. recalled getting to know Carter when the then-future president came back to Plains from years of service in the US Navy to run his father’s peanut business.

    “I don’t know a better person,” Edge said. “He didn’t look at you differently because you were a different color, and I liked that.”

    It was that attitude, Kurland said, that helped create the culture here: “In Plains, everyone might not like each other each day, but everyone respects each other, and if you have a problem, everyone’s going to help you,” he said. “And I think a lot of that is because President Carter has set the tone.”

    Jan Williams stopped into Kurland’s store that Wednesday morning to say hello. They briefly talked about her upcoming birthday, just two days before the former president’s. Williams once taught Carter’s daughter, Amy, in school, and she traveled with them during the 1977 inauguration.

    Jan Williams, who attends church with former President Jimmy Carter and taught his daughter fourth grade, poses in front of Maranatha Baptist Church in Plains with a collection plate Carter made.

    She named her own daughter after Amy Carter in honor of the family. And when Carter came back to Plains, she would listen to him teach on Sundays at church.

    “One of the things he said at church all the time was if everybody could love the person in front of them, wouldn’t we have a happier world – instead of thinking about who they are, where are they from, what kind of life do they live?” she said. “And just show some love. And he was so good at that.”

    “We may be a small town,” she added. “But we’ve produced, in my opinion, one of the greatest Americans.”

    Keeping up with the news – and baseball

    The town, and Carter’s nearest kin, know these are likely the former president’s final days.

    But they don’t guess at how long this chapter will last: After all, the nonagenarian has already defied the odds many times, from his journey from the Plains peanut business to the White House to beating cancer in 2015 to spending so long in end-of-life care.

    “He always surprises us, so we’re not terribly surprised it’s been seven months,” The Carter Center CEO Paige Alexander told “CNN This Morning” on Friday. “But he’s surrounded by love, and that’s what counts.”

    The Jimmy Carter Presidential Library and Museum has planned birthday events this weekend, including a movie screening and a naturalization ceremony for 99 new US citizens.

    Jimmy Carter's grandson Jason Carter, center, looks Thursday at a digital mosaic of his grandfather at The Carter Center.

    Carter, meanwhile, is physically limited but stays up on the current news, including on how his favorite team – the Atlanta Braves – is doing, his grandson said. And he’s very much aware of and heartened by the tributes that have poured in over months since his hospice announcement.

    “I was not ready to deal with just sort of the everyday grief part,” Jason Carter said. “In that way, going through this publicly has been wonderful because of the support and it’s really also because we’ve had this extended time, given us the time to, on a personal level, process what’s happening, process our relationships with him and with my grandmother and really spend some really, really important time as a family together.”

    The family will gather privately to celebrate Carter’s birthday Sunday, his grandson said.

    For now, his grandparents “are at home, in love and they know who they are,” he said, “and you don’t get more from a life than they’ve gotten and they know that, and they are at peace.”

    Even after he’s gone, Jimmy Carter will “always be alive in Plains,” Kurland said. And as his next birthday approaches, neighbors here know even though they don’t see Carter out and about anymore, his life’s message still spreads.

    “He’s passing the torch, that we all need to be kinder and be more giving and caring and considerate and loving,” the shopkeeper said. “So, I don’t look at it as, one point he’ll be passing on; he’ll be passing the torch for us to be better people and do better.”

    Down the street, Bonita Hightower thinks about the former president a lot, too.

    Bonita Hightower poses in February at Bonita's Carry-Out in Plains.

    “If he came from here and he became the 39th president, I wonder what I can do. That’s how I look at it,” she said.

    While the 68-year-old has never met Carter, he’s played a big role in her life. Hightower opened a restaurant in Plains some two months before the Covid-19 pandemic shut down the world. When customer traffic slowed, she questioned her decision to open a business in the small town.

    Then, she got a call.

    It was from Carter’s staff, who shared that the couple had recently ordered a take-out meal from her restaurant – and were fans of her food. “It was like that message from President Carter was to encourage my heart,” Hightower said.

    The next year, his staff asked her to make a meal for his birthday’s party, she said.

    “That gentleman, he was our president for a moment, but then he became – I heard this, and I think I’m going to adopt it – then he became the world’s president,” she said.

    “I think he came back home so maybe somebody would get ignited.”

    Carter's hometown of Plains is seen in February from the sky.

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  • Record rain in New York City generates ‘life-threatening’ flooding, overwhelming streets and subways | CNN

    Record rain in New York City generates ‘life-threatening’ flooding, overwhelming streets and subways | CNN

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    CNN
     — 

    Record-setting rain overwhelmed New York City’s sewer system Friday, sending a surge of floodwater coursing through streets and into basements, schools, subways and vehicles throughout the nation’s most populous city.

    The water rose fast and furious, catching some commuters off guard as they slogged through Friday morning’s rush hour. First responders jumped into action where needed, plucking people from stranded cars and basements filling like bathtubs.

    More rain fell in a single day at New York’s John F. Kennedy International Airport – nearly 8 inches – than any other since 1948. A month’s worth of rain fell in Brooklyn in just three hours as it was socked by some of the storm’s most intense rainfall rates Friday morning.

    Track travel delays: NYC airports hammered with heavy rain and flooding

    The prolific totals are a symptom of climate change, scientists say, with a warmer atmosphere acting like a massive sponge, able to sop up more water vapor and then wring it out in intense spurts which can easily overwhelm outdated flood protections.

    “Overall, as we know, this changing weather pattern is the result of climate change,” Rohit Aggarwala, New York City’s Chief Climate Officer said in a Friday morning news conference. “And the sad reality is our climate is changing faster than our infrastructure can respond.”

    A widespread 3 to 6 inches of rain had fallen across the New York City by late Friday afternoon. More rain was set to fall through the evening and then gradually taper off.

    New York Gov. Kathy Hochul declared a state of emergency for New York City, Long Island and the Hudson Valley Friday morning as the worst of the flooding hit. In an interview with New York’s WNBC-TV, she urged residents to stay home because of widespread dangerous travel conditions.

    “This is a very challenging weather event,” Hochul said. “This a life-threatening event. And I need all New Yorkers to heed that warning so we can keep them safe.” New Jersey Gov. Phil Murphy also declared a state of emergency for his state Friday afternoon.

    Firefighters performed rescues at six basements in New York City flooded by torrents of water, according to the New York City Fire Department.

    The water also found its way into 150 of New York City’s 1,400 schools, which remained open on Friday, New York City school chancellor David Banks said at a news briefing.

    One school in Brooklyn evacuated when floodwater caused the school’s boiler to smoke, he said.

    “Our kids are safe and we continue to monitor the situation,” Banks said.

    Floodwater spilled into subways and onto railways and caused “major disruptions,” including suspensions of service on 10 train lines in Brooklyn and all three Metro-North train lines. Gov. Hochul said the city was deploying additional buses to help fill the gap caused by the train outages.

    Limited service resumed by Friday evening on the Metro-North lines. And the Metropolitan Transportation Authority fully restored service on seven subway lines by Friday evening, according to Demetrius Crichlow, senior vice president of the New York City Transit Department of Subways.

    “Today was just not an easy day for us but like New Yorkers, we are resilient, we continue to press on,” Crichlow said.

    MTA Chair and CEO Janno Lieber said Friday evening one of three Metro-North Railroad lines was back up and running – the Hudson line – and noted the Long Island Railroad also has good service. The MTA also said it is working to restore limited service to the remaining two lines on Friday night.

    Air travel didn’t fair any better. Flight delays hit all three New York City area airports Friday. Flooding inside the historic Marine Air Terminal in New York’s LaGuardia Airport forced it to close temporarily. The terminal, which is the airport’s smallest and serves Spirit and Frontier airlines, was open again Friday night.

    By late Friday, flood watches had expired for the region except in Suffolk County on Long Island in New York and parts of northwestern and southern Connecticut, where watches were set to be in effect until Saturday morning.

    A police officer from the NYPD Highway Patrol oversees a flooded street on Friday.
    A person carries sandbags on a flooded sidewalk in Hoboken, New Jersey, on Friday.

    The extreme rainfall rates produced prolific totals:

    In Brooklyn: A month’s worth of rain, up to 4.5 inches, fell in only 3 hours on Friday morning, according to National Weather Service data. This three-hour rainfall total is only expected about once every 100 years in Brooklyn, according to NOAA estimates.

    • In Manhattan: Nearly 2 inches of rain fell in one hour in Central Park, the second-wettest hour there in 80 years. More than 5 inches of rain have fallen there so far.

    • In Queens: It’s the wettest day on record at John F. Kennedy International Airport, preliminary data from the National Weather Service shows. At least 7.88 inches of rain has fallen there since midnight.

    Correction: A previous version of this story misstated when the NYC travel advisory went into effect. It was 2 a.m. ET.

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  • Exclusive: Philippine defense secretary vows to stand up to ‘bully’ China | CNN

    Exclusive: Philippine defense secretary vows to stand up to ‘bully’ China | CNN

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    Manila, Philippines
    CNN
     — 

    China is behaving like a schoolyard bully toward smaller countries, the Philippine defense secretary told CNN Friday during an exclusive interview in which he warned his nation, and the wider world, had to stand up to Beijing’s territorial expansion in the South China Sea.

    “I cannot think of any clearer case of bullying than this,” said Philippine Secretary of National Defense Gilberto Teodoro Jr. “It’s not the question of stealing your lunch money, but it’s really a question of stealing your lunch bag, your chair and even enrollment in school.”

    His comments follow increasingly assertive moves by the Philippines to protect its claim to shoals in the South China Sea during more than a month of high-stakes maritime drama.

    While tensions between China and the Philippines over the highly-contested and strategic waterway have festered for years, confrontations have spiked this summer, renewing regional fears that a mistake or miscalculation at sea could trigger a wider conflict, including with the United States.

    The region is widely seen as a potential flashpoint for global conflagration and the recent confrontations have raised concerns among Western observers of potentially developing into an international incident if China, a global power, decides to act more forcefully against the Philippines, a US treaty ally.

    Recent incidents have involved stand offs between China’s coast guard, what Manila says are shadowy Chinese “maritime militia” boats and tiny wooden Philippine fishing vessels, Chinese water cannons blocking the resupply of a shipwrecked Philippine military outpost, and a lone Filipino diver cutting through a floating Chinese barrier.

    Teodoro characterized the Philippines’ refusal to back down in the waters within its 200 nautical-mile exclusive economic zone as a fight for the very existence of the Philippines.

    “We’re fighting for our fisherfolk, we’re fighting for our resources. We’re fighting for our integrity as an archipelagic state… Our existence as the Republic of the Philippines is vital to this fight,” Teodoro said in a sit down interview at the Department of National Defense in Manila. “It’s not for us, it’s for the future generations too.”

    Video purportedly shows Chinese ship firing water cannon at Filipino vessel in disputed waters

    “And if we don’t stop, China is going to creep and creep into what is within our sovereign jurisdiction, our sovereign rights and within our territory,” he said, adding that Beijing wont stop until it controls “the whole South China Sea.”

    Beijing says it is safeguarding its sovereignty and maritime interests in the South China Sea and warned the Philippines this week “not to make provocations or seek troubles.” It accused Philippine fishing and coast guard vessels of illegal entry into the area.

    China claims “indisputable sovereignty” over almost all 1.3 million square miles of the South China Sea, and most of the islands and sandbars within it, including many features that are hundreds of miles from mainland China. Along with the Philippines, Malaysia, Vietnam, Brunei and Taiwan also hold competing claims.

    Over the past two decades China has occupied a number of reefs and atolls across the South China Sea, building up military installations, including runways and ports, which the Philippines says challenges its sovereignty and fishing rights as well as endangering marine biodiversity in the resource-rich waterway.

    In 2016, an international tribunal in The Hague ruled in favor of the Philippines in a landmark maritime dispute, which concluded that China has no legal basis to claim historic rights to the bulk of the South China Sea.

    But Beijing has ignored the decision and continues to expand its presence in the waterway.

    Philippine Coast Guard removes Chinese floating barrier in disputed area of the South China Sea.

    Video released of diver cutting China’s floating sea barrier

    In his first sit-down TV interview with an international news outlet since he took the position in June, Teodoro was keen to stress whatever happens in the South China Sea impacts the globe.

    Crucially, the waterway is vital to international trade with trillions of dollars in global shipping passing through it each year. It’s also home to vast fertile fishing grounds upon which many lives and livelihoods depend, and beneath the waves lie huge reserves of natural gas and oil that competing claimants are vying for.

    With nations already suffering from inflation brought about by Russia’s war in Ukraine, there are concerns that any slow-down in travel and transporting of goods in the South China Sea would result in significant impact to the global economy.

    “It will choke one of the most vital supply chain waterways in the whole world, it will choke international trade, and it will subject the world economy, particularly in supply chains to their whim,” Teodoro said, adding that if this were to happen, “the whole world will react.”

    The defense secretary warned that smaller nations, including regional partners, rely on international law for their survival.

    “Though they need China, they need Russia, they see that they too may become a victim of bullying. If they (China) close off the South China Sea, perhaps the next target may be the Straits of Malacca and then the Indian Ocean,” Teodoro said.

    This photo taken on February 14, 2020 shows a Filipino fisherman sailing off at sunset from the coast of Bacnotan, La Union province, in northwestern Philippines facing the South China Sea. (Photo by Romeo GACAD / AFP) (Photo by ROMEO GACAD/AFP via Getty Images)

    Why it matters who owns the seas (April 2021)

    Only a few years ago the Philippines was treading a much more cautious path with its huge neighbor China.

    But since taking office last year, Philippine President Ferdinand “Bongbong” Marcos Jr has taken a stronger stance over the South China Sea than his predecessor Rodrigo Duterte.

    Marcos has also strengthened US relations that had frayed under Duterte, with the two allies touting increased cooperation and joint patrols in the South China Sea in the future.

    In April, the Philippines identified the locations of four new military bases the US will gain access to, as part of an expanded defense agreement analysts say is aimed at combating China.

    Washington has condemned Beijing’s recent actions in the contested sea and threatened to intervene under its mutual defense treaty obligations if Philippine vessels came under armed attack there.

    US Deputy Assistant Secretary of Defense Lindsey Ford reiterated Washington’s commitment to the mutual defense treaty in testimony before a US House subcommittee on Tuesday.

    She said the treaty covers not only the Philippine armed forces, but also its coast guard and civilian vessels and aircraft.

    “We have said repeatedly and continue to say that we stand by those commitments absolutely,” Ford said.

    A Philippine supply boat, center, maneuvers around Chinese coast guard ships as they tried to block its way near Second Thomas Shoal, locally known as Ayungin Shoal, at the disputed South China Sea on August 22.

    Defense secretary Teodoro has concerns about a possible escalation “because of the dangerous and reckless maneuvering of Chinese vessels” but he was clear that any incident – accidental or otherwise – the blame would lie with China “squarely on their shoulders.”

    And he called global powers to help pressure Beijing over its moves in the South China Sea.

    “Peace and stability in that one place in the world will generate some relief and comfort to everyone,” he said.

    As part of the Marcos administration’s commitment to boost the Philippines defense and monitoring capabilities in the South China Sea, Teodoro said further “air and naval assets” have been ordered.

    “There will be more patrol craft coming in, more rotary aircraft and we are studying the possibility to acquiring multi-role fighters,” he said, adding that would “make a difference in our air defense capabilities.”

    Preferring cooler heads to prevail, Teodoro said that diplomacy would provide a way forward providing Chinese leader Xi Jinping complies with international law.

    “Filipinos I believe are always willing to talk, just as long that talk does not mean whispers in a back room, or shouting at each other, meaning to say there must be substantial talks, open, transparent and on a rules-based basis,” he said, while also adding that talks cannot be used as a delaying tactic by Beijing.

    The Philippines, he said, has “no choice” but to stand up to China because otherwise “we lose our identity and integrity as a nation.”

    But conflict, he added, was not the answer or desired outcome.

    “Standing up doesn’t mean really going to war with China, heavens no. We don’t want that. But we have to stand our ground when our ground is intruded into.”

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  • Detained WSJ reporter Evan Gershkovich’s parents describe what it was like seeing him in Russia | CNN Business

    Detained WSJ reporter Evan Gershkovich’s parents describe what it was like seeing him in Russia | CNN Business

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    New York
    CNN
     — 

    Wall Street Journal reporter Evan Gershkovich remains “defiant” six months after he was detained in Russia on spying charges, which he and the Journal strenuously deny, his mother told CNN’s Anderson Cooper Thursday night.

    “He’s smiling. He understands what’s going on,” Ella Milman said. “And I have to say, under all the circumstances, he’s doing really well.”

    Gershkovich’s parents have been able to go to Russia twice. They saw him in June and were able to talk to him, though Cooper noted he was essentially in a glass box.

    “Being there, it was like having him back,” his father, Mikhail Gershkovich, said. “Just the physical presence and his voice made you very happy.”

    Gershkovich was arrested in March during a reporting trip. The FSB, Russia’s main security service, accused him of trying to obtain state secrets — a charge Gershkovich and his employer have extensively denied.

    If convicted, he faces up to 20 years in prison.

    Gershkovich’s parents left the Soviet Union to come to the United States. Evan’s initial reporting trips in the country didn’t worry the two of them.

    “He came to Russia in 2017. Things were a lot different at the time,” Milman said.

    The family keeps in touch with Gershkovich through letters, which are up to 10 pages long and include printed pictures. His sister, Danielle Gershkovich, says they can hear his voice through his writing — fitting, Cooper noted, as he’s a print journalist.

    “It’s like sitting on the couch,” Milman said. “The only thing is that the answer comes the following week.”

    Those who want to help need to keep the focus on Evan, Danielle said, whether it’s people posting on social media or reading his reporting.

    From a young age, Gershkovich was curious and easily connected with people, Milman said.

    “He always would come home after his fancy trips and wanted to have a hamburger and buffalo wings and watch baseball and watch American football,” Milman said. “He’s an American boy who has roots in Russian culture.”

    The journalist’s detention is a source of tension between Washington and Moscow.

    “The US position remains unwavering. The charges against Evan are baseless. The Russian government locked Evan up for simply doing his job. Journalism is not a crime,” US ambassador to Russia Lynne Tracy said to reporters earlier this month.

    In September, a Moscow court refused to hear an appeal against his pre-trial detention, leaving Gershkovich behind bars. His pre-trial detention has been extended twice since his arrest, once in May and again in August. An appeal against his first pre-trial detention was also denied.

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  • US mortgage rates climb to 7.31%, hitting their highest level in nearly 23 years | CNN Business

    US mortgage rates climb to 7.31%, hitting their highest level in nearly 23 years | CNN Business

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    Washington, DC
    CNN
     — 

    US mortgage rates surged to their highest level in nearly 23 years this week as inflation pressures persisted.

    The 30-year fixed-rate mortgage averaged 7.31% in the week ending September 28, up from 7.19% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 6.70%.

    “The 30-year fixed-rate mortgage has hit the highest level since the year 2000,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.”

    The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

    Mortgage rates have spiked during the Federal Reserve’s historic inflation-curbing campaign — and while a good deal of progress has been made since June 2022, when inflation hit 9.1%, Fed officials say there is still a ways to go.

    The Fed’s preferred inflation measure, the core Personal Consumption Expenditures index, is currently 4.2%, which is more than double the Fed’s target of 2%. Economists expect it to drop to 3.9% when the latest reading is released on Friday.

    This week’s mortgage rate surge followed last week’s small move higher, as investors settled in for “higher-for-longer” interest rates after last week’s Fed policy meeting, said Danielle Hale, chief economist at Realtor.com.

    Hale said the takeaway from the meeting was that the upward adjustments from the Fed haven’t ended.

    “Revised economic projections show that another rate hike this year is definitely on the table, and the expected policy rate in 2024 and 2025 was also higher than previously forecast,” she said. “Market participants are still playing catchup.”

    While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them.

    Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

    The yield on 10-year Treasuries rose from 4.3% on September 20 to 4.6% as of September 27.

    Mortgage applications continued to drop last week, according to the Mortgage Bankers Association, as mortgage rates went higher.

    “Rates over 7% and low for-sale inventory continue to create affordability challenges for prospective buyers,” said Bob Broeksmit, MBA president and CEO. “Until rates start to come back down, we anticipate housing market activity will remain slow.”

    Markets are experiencing an extraordinarily low number of homes for sale as homeowners stay put with ultra-low mortgage rates that are several percentage points lower than the current rate.

    There has been a small uptick in newly listed homes coming to market over the past few weeks, according to Realtor.com, which is seasonally atypical, said Hale.

    The first week in October tends to be an ideal week to buy a home, she said, since home prices tend to fall relative to summer highs, and fewer buyers contend for homes. Yet housing inventory remains higher than a typical week, Hale said.

    But, she added, mortgage rates will continue to be a wild card, which could make it impossible for some buyers to get in the market now.

    Even as demand is dropping, with so few homeowners selling, the market is pushing up prices as those few buyers who remain tussle over the handful of available houses, Hale said.

    This combination of higher prices and higher mortgage rates contrasts with easing rents over the past few months. This may cause would-be first-time buyers to wait for home prices and mortgage rates to stabilize and rent instead.

    “Buying a starter home is more expensive than renting in all but three major US markets [Realtor.com] studied,” said Hale, “which explains why buyer demand is likely to remain relatively low.”

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  • Fran Drescher ‘looking forward’ to talks resuming between actors’ union and  Hollywood studios next week | CNN

    Fran Drescher ‘looking forward’ to talks resuming between actors’ union and Hollywood studios next week | CNN

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    CNN
     — 

    SAG-AFTRA President Fran Drescher is gearing up to resume negotiations with the Alliance of Motion Picture and Television Producers next week.

    Talks will resume between the actors’ union and studio representatives on Monday, two and a half months after the more than 160,000 members of the guild went on strike and one week after the Writers Guild of America and the AMPTP reached a tentative contract agreement.

    “We’re happy WGA came to an agreement but one size doesn’t fit all,” Drescher told CNN on Thursday. “We look forward to resuming talks with the AMPTP.”

    SAG-AFTRA negotiators will meet with several executives from AMPTP member companies to work out new television and theatrical contracts, according to the union.

    SAG-AFTRA and the WGA have both sought contract changes related to streaming residuals and artificial intelligence. Actors are also asking for better relocation expenses for actors working out of state or country and limited long breaks between television seasons in order to give actors more stability while under contract.

    The WGA has voted to authorize its members to return to work following the tentative agreement reached this week.

    SAG-AFTRA has been on strike since July 14.

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  • 5 takeaways from America’s landmark lawsuit against Amazon | CNN Business

    5 takeaways from America’s landmark lawsuit against Amazon | CNN Business

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    Washington
    CNN
     — 

    An antitrust lawsuit from 17 states and the Federal Trade Commission this week against Amazon represents the US government’s biggest regulatory challenge yet against the e-commerce juggernaut.

    The landmark case targets Amazon’s retail platform, alleging that it’s harmed shoppers and sellers alike on a massive scale.

    Through an alleged “self-reinforcing cycle of dominance and harm,” the plaintiffs claim, Amazon has run an illegal monopoly in ways that are “paying off for Amazon, but at great cost to tens of millions of American households and hundreds of thousands of sellers.”

    In response, Amazon has argued the case is “wrong on the facts and the law” and warned that a victory for the FTC would lead to slower shipping times or higher prices, including perhaps for Amazon’s Prime subscription service.

    Here are five of the biggest highlights and takeaways from the plaintiffs’ 172-page lawsuit.

    The plaintiffs’ central claim is that Amazon has used a variety of tactics to lure shoppers and sellers onto its platform and then to trap them there, preventing other online retailers like Walmart, Target or eBay from attracting those same consumers and vendors to their own sites.

    Walmart, Target and eBay are not parties to the suit.

    Not only has that lock-in effect hurt competition between the likes of Amazon and Walmart, the lawsuit claims, but it has also given Amazon confidence it can exploit its sellers and shoppers with impunity — allowing the company to extract ever more value from them without fear those people will leave for a rival platform.

    The complaint portrays Amazon as offering a kind of Faustian bargain — first enticing sellers with the ability to access tens of millions of potential customers and drawing in shoppers with low prices and numerous Prime benefits, such as Amazon Music and Prime Video, that other e-commerce platforms can’t hope to match.

    Then, in the plaintiffs’ narrative, Amazon takes advantage of sellers’ and shoppers’ dependence by increasing platform fees; bloating its search results with advertising that sellers are forced to buy if they want any hope of reaching shoppers; requiring sellers to use Amazon’s in-house fulfillment services if they want the best seller benefits, including the coveted “Prime” badge; and punishing sellers who try to sell their goods elsewhere online at a lower price than on Amazon.

    The overall result, the plaintiffs claim, is a worse experience for Amazon users and artificially high prices for everyone, including on non-Amazon platforms.

    “There are internet-wide effects here,” FTC Chair Lina Khan told reporters on a conference call Tuesday.

    Amazon has responded that the lawsuit “reveals the Commission’s fundamental misunderstanding of retail.” Amazon’s general counsel, David Zapolsky, wrote in a blog post that the company’s pricing programs for sellers are meant to “help them offer competitive prices,” that consumers “love Prime because it’s such a great experience,” and that the claim “that we somehow force sellers to use our optional services is simply not true.”

    A big, swirling question is whether Amazon could be broken up as a result of this suit.

    Officially, the FTC is saying that talk of a breakup is premature.

    “At this stage, the complaint is really focused on the issue of liability,” Khan said at an event hosted by Bloomberg News on Tuesday, hours after the lawsuit was filed.

    If the courts find that Amazon did violate the law, then there could be a separate remedies phase to consider potential penalties.

    A breakup is not off the table. The plaintiffs’ complaint, filed in Seattle federal court, suggests that any court order to address the issue could include “structural relief,” a legal term referring to a potential breakup of Amazon.

    Khan also left open the possibility that Amazon executives could be held personally liable and added to the case if there is sufficient evidence of their responsibility for Amazon’s alleged misconduct.

    “We want to make sure that we are bringing cases against the right defendants,” Khan said in response to a question from CNN about whether the FTC considered naming specific executives in Tuesday’s case. “If we think that there is a basis for doing so, we won’t hesitate to do that.”

    Those remarks echo what Khan has said elsewhere about her willingness to name individuals in FTC enforcement actions. Just this month, the FTC added three Amazon officials to a separate consumer protection case dealing with Amazon Prime.

    An entire section of the complaint is devoted to a mysterious algorithm Amazon has developed named Project Nessie. Virtually every detail surrounding Project Nessie is heavily redacted from the complaint, but what little is revealed about the program suggests it is an “algorithmic tool” and “pricing system” that has allegedly helped Amazon “extract” an undisclosed amount of “excess profit” from Amazon shoppers.

    Amazon did not respond to CNN’s questions about Project Nessie. And Project Nessie isn’t the only matter subject to redactions in the lawsuit; black bars obscuring key business numbers, executive testimony and other evidence are strewn throughout the complaint.

    In response to public questioning about the redactions, FTC spokesperson Douglas Farrar said in a statement: “We share the frustration that much of the data and quotes by Amazon executives … is redacted,” and that “we do not believe that there are compelling reasons to keep much of this information secret from the public.”

    Farrar added that Amazon has a limited procedural window in which to file arguments for why many of the redacted details should remain sealed.

    Whether the FTC can prove in court that Amazon’s actions are illegal will hinge, to a large degree, on showing that Amazon has monopolized certain specific markets.

    The exercise is not as simple as pointing to Amazon’s sales figures or the percentage of online shopping that happens on Amazon’s platform. Instead, the plaintiffs have to show that Amazon is part of a well-defined geographic and economic market that it dominates.

    The complaint tries to define two such markets in the United States: a market the plaintiffs label as “online superstores” — essentially describing large retail websites that offer many different types of goods, with convenient search, checkout and shipping features for consumers — and a seller-focused “online marketplace services” market that grants third-party vendors access to customers, provides them with sales tools like data analytics and listing services, and a review or product ratings system, among other things.

    Expect Amazon to try to challenge how the plaintiffs draw their market boundaries. Zapolsky’s blog post argues that the plaintiffs have attempted to “gerrymander” their proposed markets to make it look like Amazon is more dominant than it is.

    Whether that argument succeeds will be up to the court, but it is clear the plaintiffs have carefully crafted their market definitions. For example, they claim that in this case, Amazon can’t be said to compete with online grocery delivery services such as FreshDirect or Instacart because of the unique and often hyper-local constraints of shipping perishable goods. The FTC also wants to exclude medium-sized or interest-specific retail sites that don’t offer a wide variety of products. Presumably this might exclude websites belonging to companies like the pet care retailer Chewy, or the electronics seller Best Buy.

    FreshDirect, Instacart, Chewy and Best Buy are not parties to the suit.

    Excluding those types of companies allows the plaintiffs to make claims such as that “Amazon’s share of the overall value of goods sold by online superstores is well above 60% — and rising.”

    Even as the lawsuit takes on some of the most important parts of Amazon’s retail business, there is much that the suit doesn’t cover.

    In recent years, critics of Amazon have lobbed a kitchen sink of antitrust allegations at the company, including that it snoops on seller data to figure out what products it should sell under its own brand; that the fact Amazon sells its own products alongside third-party sellers creates an anticompetitive conflict of interest; that Amazon has used predatory pricing to weaken rivals and to ultimately acquire them; and that Amazon wields enormous power in labor markets. Many of these observations were included as part of a 450-page congressional report that Khan helped author while working as a House Judiciary Committee staffer prior to being appointed to the FTC.

    Amazon founder Jeff Bezos has acknowledged in congressional testimony the possibility that employees may have inappropriately accessed seller data in violation of company policy, but Amazon has broadly disputed most of the other allegations.

    Virtually none of those claims, however, are reflected in this week’s lawsuit. The complaint does allege that Amazon biases its search results to rank its own products higher than those sold by third parties, but largely as a byproduct of Amazon’s main moves to protect its dominance.

    The complaint doesn’t articulate how regulators came to select some allegations and not others.

    When a reporter asked Khan to reflect on her past criticism of how narrowly courts have focused on the issue of consumer prices, in contrast to Tuesday’s Amazon suit that mentions the word “price” some 223 times, not including any redacted parts, Khan said her job was to present the case that stood the best chance of winning.

    “As enforcers, we want to both follow the facts where they take us and also look at how the law applies to the facts,” Khan said. “You want to bring the strongest case that you can.”

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  • Travis Kelce talked Taylor Swift on his podcast | CNN

    Travis Kelce talked Taylor Swift on his podcast | CNN

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    CNN
     — 

    Travis Kelce was already famous, but now he is learning what it means to be Taylor Swift-adjacent-famous.

    The new episode of his podcast, “New Heights,” which he hosts with his brother, fellow NFL football player Jason Kelce, dropped Wednesday.

    Jason Kelce introduced the TSwift of it all in the midst of some football talk by saying, “We’re here.”

    “We’ve been avoiding this subject out of respect for your personal life,” Jason Kelce, who plays for the Philadelphia Eagles said. “But now we gotta talk about it.”

    “My personal life that’s not so personal,” Travis Kelce quipped. “I did this to myself Jason. I know this.”

    Jason Kelce then brought up Swift’s recent attendance at his brother’s game to watch his Kansas City Chiefs take on the Chicago Bears in Arrowhead Stadium. The superstar singer sat in a suite alongside the matriarch of the Kelce family and it pretty much broke the internet.

    After Jason Kelce asked his brother what his life is now like, Travis Kelce said he’s on the “roller coaster of life.”

    “I noticed a few things,” Travis Kelce said. “Paparazzi at my house. S**t like that.”

    The paps are there with cameras and screaming his name he said. His brother naturally asked about his special guest at the game.

    “Shout out to Taylor for pulling up,” Travis Kelce said. “That was pretty ballsy.”

    He hailed Swift who “looked amazing” and he said his friends and family had nothing but amazing things to say about her. Not to mention that his Chiefs won the game.

    “We script it all ladies and gentleman,” he (maybe) joked. “It was impressive.”

    Kelce said he found all the attention and excitement “hysterical.”

    “It’s definitely a game I’ll remember,” he said. “That’s for damn sure.”

    The brothers covered some more ground, including the sales of Travis Kelce’s jersey exploding post the Swift appearance, how everyone including football coaches have been talking about the possible couple and even how they drove off in his convertible after the game.

    As to whether they are a couple or not we still don’t really know because Kelce chose to pass and left it as, “What’s real is that it is my personal life. I want to respect both of our lives.”

    Moving forward he will stick to talking about sports he said.

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  • PlayStation head Jim Ryan is stepping down | CNN Business

    PlayStation head Jim Ryan is stepping down | CNN Business

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    New York
    CNN
     — 

    PlayStation boss Jim Ryan is stepping down from the company, Sony announced Wednesday.

    The Sony Interactive Entertainment President and CEO will be retiring in March 2024 after 30 years in the PlayStation business.

    Sony Group Corporation president, COO and CFO Hiroki Totoki will assume the role of SIE chairman next month to “support” the transition, and will take over as interim CEO once Ryan retires.

    Ryan joined SIE in 1994 and was appointed CEO in 2019. He had previously held senior positions at the company including president of SIE Europe, head of global sales and marketing at SIE and deputy president of SIE.

    Ryan led the launch of the PlayStation 5, which the company said is PlayStation’s most successful platform.

    “I’ve found it increasingly difficult to reconcile living in Europe and working in North America,” Ryan said in a statement. “I will leave having been privileged to work on products that have touched millions of lives across the world.”

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  • Dow tumbles by more than 400 points, on pace for biggest one-day decline since March | CNN Business

    Dow tumbles by more than 400 points, on pace for biggest one-day decline since March | CNN Business

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    New York
    CNN
     — 

    Stocks tumbled Tuesday after a slew of economic data stoked fears about the US economy’s cloudy outlook and further interest rate hikes from the Federal Reserve.

    The benchmark S&P 500 index slid 1.2%, on track for its lowest close since June. The Dow Jones Industrial Average fell 416 points, or 1.2%, on pace for its biggest one-day drop since March; and the Nasdaq Composite lost 1.5%.

    The S&P 500 is hovering around the threshold that it passed to enter bull market territory earlier this summer, which represents a climb of more than 20% off its most recent low last October.

    Housing data released Tuesday morning showed that new home sales fell 8.7% in August from July, as mortgage rates edged above 7% to the highest levels in decades.

    At the same time, US home prices climbed to a record high in July, marking the sixth straight month of increases as a tight supply of homes continues to drive up prices, according to the latest Case-Shiller home prices index.

    “The Fed will see the reacceleration of house prices as a reason to keep interest rates higher for longer,” said Bill Adams, chief economist at Comerica Bank. “The Fed cannot afford to look past house prices’ influence on the cost of living.”

    Investors have been on edge since the Fed last week indicated it could hike interest rates once more this year and delay rate cuts for longer than expected. That sent yields soaring to their highest level in decades, as investors recalibrate their expectations for how long rates will stay higher.

    Oil prices gained on Tuesday after paring back their recent gains earlier. West Texas Intermediate crude futures, the US benchmark, rose to roughly $90 a barrel. Brent crude, the international benchmark, climbed to $94 a barrel.

    JPMorgan Chase CEO Jamie Dimon said Tuesday in an interview with the Times of India that he is preparing the bank’s clients for a 7% interest rate scenario, further spooking investors.

    The possibility of a government shutdown also looms over Wall Street as the fiscal year’s end on September 30 fast approaches without any spending deal.

    Moody’s warned Monday that such an event could be negative for America’s credit rating, which already saw a downgrade from Fitch earlier this year after the federal government narrowly avoided breaching the debt ceiling.

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