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  • Cuba says ‘human trafficking network’ is sending its nationals to fight for Russia in Ukraine | CNN

    Cuba says ‘human trafficking network’ is sending its nationals to fight for Russia in Ukraine | CNN



    CNN
     — 

    Cuba says it has uncovered a human trafficking network operating from Russia that is recruiting Cubans to fight for their longstanding ally in Moscow’s war in Ukraine.

    Cubans living in Russia and “even some in Cuba” had been trafficked and “incorporated into the military forces taking part in the war in Ukraine,” the Cuban foreign ministry said Monday in a statement.

    The ministry gave few details about the alleged trafficking operations, but said that authorities were working to “neutralize and dismantle” the network.

    There were no reports of any arrests of people allegedly involved in the trafficking operation. In September, reports surfaced on social media of Cubans who said they were serving in Russia’s armed forces but that they had been tricked into joining the war effort and mistreated when they refused to fight. CNN was not able to independently verify those allegations, and it is not clear how many Cubans may be fighting for Russia.

    Cuba stressed in its statement that it “is not part of the war in Ukraine.” The Kremlin has not commented on the allegations.

    The report comes amid efforts by Russia to boost its forces in Ukraine, which have suffered heavy losses on the battlefield, and with the future of the mercenary Wagner Group in doubt.

    Moscow announced a plan earlier this year to increase the strength of the Russian armed forces by 30% to 1.5 million servicemen. In July, the Russian state Duma voted to extend the military draft age to include citizens from 18 to 30 years old, up from 27.

    For much of the conflict, the official Russian army has been bolstered by mercenaries contracted to Wagner. But after the death of the group’s chief Yevgeny Prigozhin, who led his troops in an aborted mutiny against Moscow in June, it is unclear whether Russia will rely on Wagner forces to wage its war in Ukraine.

    Cuba was a major ally of the Soviet Union during the Cold War, and relations between Havana and Moscow have remained cozy since Russia launched its full-scale invasion of Ukraine.

    Cuba has been a staunch defender of Russia’s war on the country, blaming the US and NATO for the conflict. As Cuba grapples with its worse economic crisis in decades, Russia has supplied the communist-run island with badly needed food and shipments of crude oil. Since the war began the two nations have signed a flurry of agreements promising increased Russian foreign investment in Cuba.

    In a rare interview in May, Cuban President Miguel Diaz-Canel told Russian state-controlled network RT that Cuba condemned “the expansion of NATO towards Russia’s borders,” echoing one of the Kremlin’s justifications for its brutal war.

    Diaz-Canel visited Moscow in November last year to attend the unveiling of a statue of former Cuban leader Fidel Castro. Russian Foreign Minister Sergey Lavrov and Defense Minister Sergei Shoigu also traveled to Cuba on separate trips this year and hailed the relations between the two countries.

    There are historical precedents of Cubans fighting alongside and on behalf of Russia.

    In several conflicts in Africa during the Cold War, “the deal was the Cubans would supply the soldiers, the Soviets would supply the weapons,” Sergei Radchenko, a historian and professor at Johns Hopkins School of Advanced International Studies, told CNN.

    Thousands of Cuban fighters intervened in support of communist forces in Angola in 1975, as well as in Ethiopia in 1977, alongside Soviet troops and using Soviet equipment.

    “Having Cuban mercenaries – you might call them mercenaries, or at that time it was revolutionary fighters – is a longstanding precedent as far as Cuba and the Cuban-Russian relationship is concerned,” said Radchenko. In Cuba, those military interventions – often fighting South African-trained mercenaries – are celebrated as having played a crucial role in ending apartheid in South Africa.

    However, Radchenko said, the statement issued by Cuba’s foreign ministry “sounds like something very different,” due to the suggestion of coercion.

    Christopher Sabatini, a senior fellow for Latin America at Chatham House, said he was not surprised that Russia is seeking Cuban mercenaries to wage its war.

    “This is the typical Russian modus operandi of getting mercenaries to do their fighting for them – particularly in desperate states,” Sabatini told CNN, adding that Cuba “is on the brink of a humanitarian disaster.”

    What was surprising, he said, was the reaction of the Cuban government, which suggests that Russia “touched a nerve.”

    “The Cuban government is fiercely loyal to its allies,” Sabatini said. “That they would call this out is an indication that they truly feel humiliated and exploited by what is an ally taking advantage of their citizens – at a time of desperate need.”

    Russia has offered foreign fighters more than $2000 a month to fight in Ukraine, a fortune in Cuba where doctors do not earn that much in an entire year. Russia has also reportedly offered citizenship to foreigners willing to take up arms.

    “It’s particularly insulting, too, because the way you are rewarding these mercenaries is giving them a chance to flee their country,” said Sabatini. “That hurts.”

    In May, the Russian regional newspaper Ryazan Vedomosti reported that Cuban immigrants living in Russia had joined the Russian army.

    “Several citizens of the Republic of Cuba went to serve in the Russian army. According to them, the Cubans want to help our country carry out tasks in the zone of a special military operation, and some of them would like to become citizens of Russia in the future,” said the article.

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    September 5, 2023
  • More remote workers are willing to move in order to find affordable housing | CNN Business

    More remote workers are willing to move in order to find affordable housing | CNN Business


    Washington, DC
    CNN
     — 

    Housing is less affordable than it has been in about four decades. But buying or renting a home might be even less affordable now if it weren’t for the continuing impact of remote and hybrid workers that resulted from the pandemic, according to a recent study by Fannie Mae.

    The study, which was an analysis of Fannie Mae’s monthly National Housing Survey, with questions asked among more than 3,000 mortgage holders, owners, and renters between January and March this year, looked at how remote and hybrid work has changed over the past few years and its impact on housing.

    More people are willing to move to less expensive areas further away from offices in city centers than a few years ago, according to the report. Continuing remote and hybrid work, at levels remarkably unchanged from two years ago, is enabling people to move toward housing affordability, the study found.

    The report also revealed that “affordability” is the most important factor in finding a place to live, both for renters and homeowners.

    At the beginning of the year, 22% of remote and hybrid workers said they would be willing to relocate to a different region or increase their commute. Only 14% such workers were willing to do so in the third quarter of 2021, which is used as a comparison throughout the study and was when many workplaces attempted a “return to work” until the Omicron variant of Covid-19 pushed many employers’ plans back that winter.

    Workers who are able to break their ties to living in an area because of its proximity to work are able to spread out, reducing the competition for a historically low number of homes for sale that could push prices even higher.

    The research showed that among remote workers, all age and income groups have grown more willing to relocate or live farther away from their workplace since 2021. But younger workers — those between 18 and 34 — are significantly more willing than those older than them to live or commute a further distance from their work, with the share willing to do so jumping from 18% in 2021, to 30% in 2023.

    “We believe this greater willingness to live farther from the … workplace may be an indication that some workers are feeling more secure about their remote work situation … or their ability to find another job if their current employer were to change its policies,” wrote the researchers, in a summary.

    This is good news for remote workers during a time of crushingly low levels of home affordability.

    Remote and hybrid work may be here to stay. Or, it’s here long enough for people to buy or rent a new home because of it, the researchers found.

    Despite the demands by leaders of some prominent companies that workers need to head into the office or head out the door, the share of fully remote and hybrid workers has remained surprisingly constant in the post-pandemic era, according to the study.

    In the first part of the year, 35% of respondents worked fully remote or worked a hybrid mix of some time at a workplace and some time at home. That was only slightly down from 36% in 2021.

    While the share of workers going to a work site or office every day was unchanged at 49% in both 2021 and in 2023, the share of people working fully remote ticked up to 14% this year from 13% in 2021.

    Homeowners continue to be slightly more likely to work from home than renters. And those with more education and higher incomes are also more likely to have a work-from-home situation, which is consistent with 2021, the study found.

    Only 30% of lower-income people, earning 80% of the area median income, could work remotely or hybrid in 2021, and that dropped to 27% by this year. Meanwhile 42% of upper-income people, those making 120% of the area median income, were able to work from home in 2021 and that number did not change in 2023.

    Lower-income people — who are in most need of access to lower-cost housing, found further away from a city’s core — are also those least likely to work remotely, according to the survey.

    With housing affordability taking a hit over the past few years as rents rose, home prices stayed elevated and mortgage rates soared to a 22-year high, it is not surprising that “affordability” was the top factor for people when picking a new home, at 36%. This was a big jump from 2014, the last time the question was asked, when the top consideration was “neighborhood” at 49%.

    Homeowners and renters both showed growth in prioritizing “affordability,” but the increase was greatest among renters, shooting up from 21% in 2014 to 46% in 2023.

    “The change in preference for renters is truly remarkable, since not only did it more than double, but it represented a complete reversal of the relative importance of neighborhood cited by consumers as the top consideration in 2014,” wrote the researchers.

    In addition, despite the talk about moving for more space, “home size” as a factor for picking a next home was unchanged and still outweighed by “affordability.”

    “The striking shift toward affordability as the top consideration among overall survey respondents for their next move substantiates the need of households to find ways to manage around the significant rise in mortgage rates, home prices, and rents of the past few years,” the researchers wrote.

    And this is impacting where people look for a home and what they prioritize when they are searching.

    “Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace, particularly given that, historically, a shorter commute to denser job markets was considered a premium amenity,” the researchers wrote.

    The suburbs are increasingly where people want to be, the report found, which is part of an ongoing trend since 2010. And that share has grown between 2021 and 2023.

    The researchers say the change to the housing market brought about by remote workers holds broader implications for the link between housing and the labor market.

    The growing share of remote-working renters and homeowners willing to live farther from their work location gives employers access to a wider labor market, which could be useful if a downturn in economic activity led to greater rates of job loss.

    “Having access to a larger labor market may also reduce the adverse effect on local home prices when a major employer or industry contracts,” the researchers wrote.

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    September 3, 2023
  • Two injured, thousands left without power as Typhoon Haikui approaches Taiwan | CNN

    Two injured, thousands left without power as Typhoon Haikui approaches Taiwan | CNN


    Taipei, Taiwan
    CNN
     — 

    Two people have been injured and nearly 10,000 households left without power as Typhoon Haikui approaches Taiwan, the island’s official Central News Agency (CNA) reported on Sunday.

    The two injured people were traveling in a van when a tree fell on the vehicle, “leaving them trapped inside,” CNA said.

    They suffered injuries but were conscious and taken to hospital, it added.

    As of 2 p.m. local time on Sunday, more than 9,300 households in the Taitung and Hualien counties had lost electricity, state electricity provider Taipower said. Repair works are underway.

    The capital Taipei is currently experiencing heavy rains.

    Taiwan’s Central Weather Bureau said Typhoon Haikui was moving westwards at a pace of 7km (4.35 miles) per hour with winds of up to 155kph (96.31 mph).

    Haikui will be the first typhoon in four years to directly hit Taiwan and is expected to bring heavy rainfall to eastern regions, according to the weather bureau.

    It warned that heavy rainfall could trigger flash flooding and landslides in parts of the country. The mountainous Hualien county could see total precipitation of more than 500mm, it added.

    The typhoon was previously expected to make landfall near the southeastern city of Taitung around 5 p.m. local time on Sunday.

    As of 7 a.m. local time Sunday, more than 2,800 residents within seven counties and municipalities had been evacuated, the island’s Ministry of the Interior said.

    Seven counties and cities in southern and eastern Taiwan have suspended school and work for Sunday, according to the respective local governments. In addition, Yunlin county and the outlying Penghu county will suspend school and work from Sunday noon.

    The typhoon has led to the cancellation of 222 domestic flights and 37 international flights departing from Taiwan, according to Taiwan’s Ministry of Transportation and Communications.

    In neighboring Hong Kong, at least 86 injuries were reported from another typhoon, Saola, which made landfall in the city after passing through the northeastern Philippines.

    In an update on Saturday, Hong Kong authorities said they had received more than 1,500 reports of fallen trees, 21 cases of flooding and two reports of landslides.

    The typhoon has since weakened to a tropical storm but left in its wake hundreds of canceled and disrupted flights.

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    September 3, 2023
  • X, formerly known as Twitter, may collect your biometric data and job history | CNN Business

    X, formerly known as Twitter, may collect your biometric data and job history | CNN Business



    CNN
     — 

    X, the social media platform formerly known as Twitter, said this week it may collect biometric and employment information from its users — expanding the range of personal information that account-holders may be exposing to the site.

    The disclosures came in an update to the company’s privacy policy, which added two sections related to the new data collection practice.

    “Based on your consent, we may collect and use your biometric information for safety, security, and identification purposes,” the policy read.

    In addition, under a new section labeled “job applications,” X said it may collect users’ employment and educational history.

    The company also said it could collect “employment preferences, skills and abilities, job search activity and engagement, and so on” in order to suggest potential job openings to users, to share that information with prospective third-party employers or to further target users with advertising.

    For X Premium users, the company will give an option to provide a government ID and a selfie image for verification purposes. The company may extract biometric data from both the government ID and the selfie image for matching purposes, the company told CNN in a statement.

    “This will additionally helps us tie, for those that choose, an account to a real person by processing their Government issued ID,” according to the company. “This will also help X fight impersonation attempts and make the platform more secure.”

    The changes mirror what many of X’s peers already routinely collect. But it represents an expansion of the types of information Twitter is interested in tracking. The policy adjustment arrives as owner Elon Musk seeks to turn the platform into an “everything app” that could include financial services and other features similar to the popular Chinese app WeChat.

    The change also happens as some regulatory initiatives around the world begin to require that social media companies verify their users’ ages. Many age-assurance services require that users upload copies of their government-issued identification or selfies that are then analyzed by artificial intelligence.

    On Thursday, however, a federal judge temporarily blocked an Arkansas law mandating age verification for social media platforms, just hours before it was due to take effect.

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    September 1, 2023
  • China relaxes mortgage rules to help homebuyers in latest stimulus push | CNN Business

    China relaxes mortgage rules to help homebuyers in latest stimulus push | CNN Business


    Hong Kong
    CNN
     — 

    China just made it easier for people to buy homes, in a move that could affect $3.5 trillion in mortgage loans as Beijing seeks to bail out a property market mired in a record slump and worsening cash crunch.

    Down payments will be set at a minimum of 20% for first-time buyers and a minimum of 30% for second-time buyers nationwide, according to a joint statement by the People’s Bank of China (PBOC) and the National Administration of Financial Regulation (NAFR) released late Thursday.

    That’s a big cut from the existing requirements of minimums of 30% and 40% for first-time and second-time buyers in cities that implement home-buying restrictions, such as Beijing and Shanghai.

    In addition, minimum mortgage rates for buyers of second homes should be no less than 20 basis points over the loan prime rate (LPR), the statement said. Currently, minimum mortgage rates for second-time buyers are no less than 60 basis points over the LPR.

    The LPR is the benchmark for most household and corporate loans in China and is set by the central bank each month.

    The regulators also indicated in a separate statement that rates on existing mortgages for first-home purchases can be renegotiated between banks and customers starting September 25. The regulators have encouraged banks to offer lower rates.

    “The drop in the interest rates of existing housing loans can save interest expenses for borrowers, which is conducive to expanding consumption and investment,” the regulators said.

    “For banks, it can effectively reduce the phenomenon of early loan repayment and mitigate the impact on banks’ interest income,” they added.

    The new policy measures could affect 40 million home buyers and impact 25 trillion yuan ($3.5 trillion) in mortgages, which is about two thirds of the country’s housing loans, state-owned Yicai reported on Thursday, citing people close to the regulators.

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    August 31, 2023
  • Dollar General shares tumble after it cuts forecasts, blaming a spending slump and theft | CNN Business

    Dollar General shares tumble after it cuts forecasts, blaming a spending slump and theft | CNN Business


    New York
    CNN
     — 

    Dollar General slashed its sales and profit outlook for the year on Thursday, blaming headwinds including weaker consumer spending on non-essential purchases and increasing theft.

    Dollar General shares tumbled nearly 17% in pre-market trading Thursday.

    The discount store’s challenges are yet another sign of American consumers pulling back on shopping as inflation remains well above the Federal Reserve’s 2% target.

    “One of the key reasons for this is because Dollar General’s core customers are feeling the acute pressure of the cost-of-living-crisis,” Neil Saunders, retail analyst and managing director at GlobalData, said in a report Thursday.

    “This has been exacerbated by cuts in SNAP payments as temporary pandemic benefits came to an end. As a result, lower-income shoppers are cutting back on non-consumable and indulgent purchases from the chain in a bid to save money,” he said. “Unfortunately, this dynamic will not change any time soon as, if anything, finances will tighten over the second half of the year.”

    The discount retailer now expects sales for the full year to rise between 1.3% to 3.3%, down from its previous forecast of a 3.5% to 5% increase. It expects full-year earnings to decline 22% to 34% from its previous estimate of a flat-to-8% decrease.

    The retailer said its same-store sales (or sales at stores open at least a year) are expected to range from a decline of about 1% to an increase of 1% for the year, compared to its previous expectation of a 1% to 2%. increase.

    For its second quarter, Dollar General logged a 1% drop in its same-store sales. It said weaker customer traffic to its stores hurt sales in the period, combined with budget-conscious shoppers pulling back on higher-priced discretionary purchases such as home items and clothing in favor of lower-priced everyday necessities.

    The Consumer Price Index rose 3.2% for the year through July, adding pressure on shoppers looking for bargains.

    In addition, food stamp recipients started to receive about $90 a month less in benefits, on average, starting in March, as a pandemic hunger relief program comes to an end nationwide three years after Congress approved it.

    Meanwhile, close on the heels of Dick’s Sporting Goods sounding the alarm on store theft eating into its profit this year, Dollar General also flagged an increase in product theft, among other factors, hurting its profit.

    The company said “an increase in expected inventory shrink for the second half of 2023” factored into its lower guidance. Shrink is an industry term encompassing inventory losses caused by external theft, including organized retail crime, employee theft, human errors, vendor fraud, damaged or mismarked items and other losses.

    Retailers large and small say they are struggling to contain an escalation in store crimes — from petty shoplifting to organized sprees of large-scale theft that clear entire shelves of products. Target warned earlier this year that it was bracing to lose half a billion dollars because of rising theft. It reported a large number of incidents of shoplifting and organized retail crime in its stores nationwide.

    At the same time, it’s not clear that store crime is growing significantly more serious. Within the industry, at least one major player has argued that the problem is being overhyped.

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    August 31, 2023
  • UBS will cut 3,000 jobs in Switzerland as it absorbs Credit Suisse | CNN Business

    UBS will cut 3,000 jobs in Switzerland as it absorbs Credit Suisse | CNN Business


    London
    CNN
     — 

    UBS expects to shed around 3,000 jobs in Switzerland as it tries to save $10 billion from a sweeping overhaul of the global banking giant created by its emergency rescue of Credit Suisse earlier this year.

    The job cuts amount to around 8% of staff employed by the combined bank’s Swiss operations and may spark new controversy in the country, where the deal has already proved unpopular with the public and some politicians.

    “The Swiss Bank Employees Association demands that the 37,000 employees of the two institutions in Switzerland are treated fairly and equally in the integration process,” the Swiss banking union said in a statement.

    On a call with analysts Thursday, UBS CEO Sergio Ermotti said: “Every lost job is painful for us. Unfortunately, in this situation, cuts were unavoidable.”

    Ermotti said the job cuts would be spread “over a couple of years” and that the bank would provide affected employees with financial support, outplacement services and retraining opportunities.

    The Swiss bank, which has a combined global workforce of nearly 122,000, gave no further details on the numbers of likely layoffs outside of Switzerland in its second quarter earnings statement — the first report since it acquired its rival.

    UBS confirmed plans to retain Credit Suisse’s banking operations in Switzerland, and fully absorb those into the newly-merged group, rather than opting for a spin-off or IPO, even though that may have resulted in fewer redundancies.

    “Our analysis clearly shows that a full integration is the best outcome for UBS, our stakeholders and the Swiss economy,” Ermotti said in a statement. He added that this was “one of the biggest and most complex bank mergers in history.”

    UBS said that it expected to generate more than $10 billion in savings from the integration by the end of 2026, $1 billion more and a year earlier than planned when the takeover was announced in March. The bank’s shares gained as much as 7% on the news.

    UBS (UBS) agreed on March 19 to buy Credit Suisse for the bargain price of 3 billion Swiss francs ($3.4 billion) in a rescue orchestrated by Swiss authorities to avert a banking sector meltdown.

    UBS posted net profit of $29 billion for the second quarter, reflecting a one-off boost from the acquisition of Credit Suisse at a fraction of its value. But it also benefited from continued strong inflows into its global wealth management business, recording $16 billion of net new money — the highest second-quarter figure in over a decade.

    Controversy in Switzerland

    Credit Suisse went bust after confidence in the ailing lender collapsed and customers yanked their money from the bank. The firm had been plagued by scandals and compliance failures in recent years that wiped out its profit and caused it to lose clients.

    But the death blow came after it acknowledged “material weakness” in its bookkeeping and as the demise of US regional lenders Silicon Valley Bank and Signature Bank spread fear about weaker institutions.

    The combination of the banks has caused controversy in Switzerland because it leaves the country exposed to a single massive financial institution with a market share of about 30% and assets roughly double the size of its annual economic output.

    Taxpayers were originally on the hook for potential losses arising from the deal, but UBS said earlier this month it would no longer need a Swiss government guarantee of 9 billion francs ($10.3 billion) for future potential losses arising from Credit Suisse assets.

    It also said it no longer required a 100 billion franc ($114.2 billion) government-backed loan and that Credit Suisse had repaid an earlier loan from Switzerland’s central bank of 50 billion francs ($57.1 billion).

    “Taxpayers will no longer bear any risks arising from these guarantees,” the Swiss government said at the time.

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    August 31, 2023
  • US intel: Ukraine war caused ‘one of the most disruptive periods’ for global food security | CNN Politics

    US intel: Ukraine war caused ‘one of the most disruptive periods’ for global food security | CNN Politics



    CNN
     — 

    Russia’s invasion of Ukraine caused deep disruptions in the global food supply, raising prices and increasing the risk of food insecurity in poorer nations in the Middle East and North Africa, America’s top spy agency said in an unclassified report released by Congress on Wednesday.

    The direct and indirect effects of the war “were major drivers of one of the most disruptive periods in decades for global food security,” the eight-page report found – in large part because Ukraine and Russia were among the world’s largest pre-war exporters of grain and other agricultural products.

    Although food security concerns have abated since the start of this year, according to the report, the future trajectory of global food prices likely will depend in part on what happens with the Black Sea Grain Initiative, which Russia ended in July. The deal, facilitated by the United Nations, had allowed Ukrainian agricultural shipments to safely exit Black Sea ports and reach the international market.

    How much acreage Ukraine is able to cultivate as the war continues to rage and the cost and availability of fertilizers will also have an impact on global food prices, the report found. Global fertilizer prices reached near-record levels in mid-2022 as global oil and natural gas prices rose.

    “The combination of high domestic food prices and historic levels of sovereign debt in many countries – largely caused by spending and recessionary effects of the COVID-19 pandemic – has weakened countries’ capacity to respond to heightened food insecurity risks,” the report said. “These factors probably will undermine the capacity of many poor countries to provide sufficient and affordable food to their population through the end of the year.”

    Droughts last year in Canada, the Middle East, South America and the United States also compounded the war-related stress on global food supplies, according to the report.

    Intelligence officials have accused Russia in the past of weaponizing food supplies by blocking Ukrainian exports, destroying infrastructure and occupying Ukrainian agricultural land.

    Citing satellite imagery and open-source reporting, the report said that Russia stole nearly 6 million tons of Ukrainian wheat harvested from occupied territories in 2022. Cargo ships used to transport the stolen grain out of Russian-occupied territories in 2022 would steer along the coast of Turkey to deliver shipments to ports in Syria, Israel, Iran, Georgia and Lebanon, the report said.

    “We cannot confirm if the buyers of the Russian cargoes were aware of the grains’ Ukrainian origin,” the report said.

    The report was mandated by the annual intelligence authorization bill and released by the House Intelligence Committee.

    “This report casts light on the war’s broader disruption to global food security and reveals how (Russian President Vladimir) Putin has intentionally used food security and the threat of starvation as a negotiating chip,” committee leaders Reps. Mike Turner and Jim Himes said in a statement. “Russia’s recent refusal to renew the Black Sea Grain Initiative will worsen this crisis, driving vulnerable nations into food shortages that could leave millions struggling to eat.”

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    August 30, 2023
  • Hurricane Idalia and Labor Day could send gas prices and inflation higher | CNN Business

    Hurricane Idalia and Labor Day could send gas prices and inflation higher | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Labor Day — one of the busiest driving holidays in the US — is on the horizon, and so is Hurricane Idalia. That’s potentially bad news for gas prices.

    The storm, which is expected to make landfall in Florida as a Category 3 hurricane on Wednesday, could bring 100 mile-per-hour winds and flooding that extends hundreds of miles up the east coast. The impact could take gasoline refinery facilities offline and may limit some Gulf oil production and supplies. Plus, demand for gas is expected to surge as residents of the impacted areas evacuate.

    “Idalia… could pose risk to oil and gas output in the US Gulf,” wrote the Nasdaq Advisory Services Energy Team.

    The storm is expected to make landfall as drivers nationwide load into their vehicles for the Labor Day weekend, pushing up the demand for gasoline even further.

    All together it means the price of oil and gasoline could remain elevated well into the fall.

    Generally, summer demand for oil tends to wane in September, but so does supply as refineries shift from summer fuels to “oxygenated” winter fuels, said Louis Navellier of Navellier and Associates. Since the 1990s, the US has required manufacturers to include more oxygen in their gasoline during the colder months to prevent excessive carbon monoxide emissions.

    With the storm approaching, that trend may not play out.

    What’s happening: Gas prices are already at $3.82 a gallon. That’s the second highest price for this time of year since at least 2004, according to Bespoke Investment Group. (The only time the national average has been higher for this period was last summer, when prices hit $3.85 a gallon).

    Geopolitical tensions have been supporting high oil and gas prices for some time. Recently, increased crude oil imports into China, production cuts by Russia and Saudi Arabia and extreme heat set off a late-summer spike in gas prices. And the threat of powerful hurricanes could send them even higher.

    Analysts at Citigroup have warned that this hurricane season could seriously impact power supplies.

    “Two Category 3 or higher hurricanes landing on US shores could massively disrupt supplies for not weeks but months,” Citigroup analysts wrote in a note last week. In 2005, for example, gas prices surged by 46% between Memorial Day and Labor Day because of the landfall of Hurricane Katrina, according to Bespoke.

    What it means: The Federal Reserve and central banks around the world have been fighting to bring down stubbornly high inflation for more than a year. This week we’ll get some highly awaited economic data: The Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, is due out on Thursday. But the task of inflation-busting is a lot more difficult when energy prices are high, and it’s even harder when they’re on the rise.

    The PCE price index uses a complicated formula to determine how much weight to give to energy prices each month, but they typically comprise a significant chunk of the headline inflation rate.

    “Crude oil price remains elevated, even after the surge at the start of the Russia-Ukraine War,” said Andrew Woods, oil analyst at Mintec, a market intelligence firm. “Energy prices have been a major contributor to persistently high inflation in the US, so the crude oil price will remain a watch-out factor for future inflation.”

    High oil and gas prices are one of the largest contributing factors to inflation. That’s bad news for drivers but tends to be great for the energy industry, as oil prices and energy stocks are closely interlinked.

    Energy stocks were trading higher on Monday. The S&P 500 energy sector was up around 0.75%. Exxon Mobil (XOM) was 0.85% higher, BP (BP) was up 1.36% and Chevron (CVX) was up 0.75%.

    OpenAI, will release a version of its popular ChatGPT tool made specifically for businesses, the company announced on Monday.

    OpenAI unveiled the new service, dubbed “ChatGPT Enterprise,” in a company blog post and said it will be available to business clients for purchase immediately.

    The new offering, reports my colleague Catherine Thorbecke, promises to provide “enterprise-grade security and privacy” combined with “the most powerful version of ChatGPT yet” for businesses looking to jump on the generative AI bandwagon.

    “We believe AI can assist and elevate every aspect of our working lives and make teams more creative and productive,” the blog post said. “Today marks another step towards an AI assistant for work that helps with any task, is customized for your organization, and that protects your company data.”

    Fintech startup Block, cosmetics giant Estee Lauder and professional services firm PwC have already signed on as customers.

    The highly-anticipated announcement from OpenAI comes as the company says employees from over 80% of Fortune 500 companies have already begun using ChatGPT since it launched publicly late last year, according to its analysis of accounts associated with corporate email domains.

    A multitude of leading newsrooms, meanwhile, have recently injected code into their websites that blocks OpenAI’s web crawler, GPTBot, from scanning their platforms for content. CNN’s Reliable Sources has found that CNN, The New York Times, Reuters, Disney, Bloomberg, The Washington Post, The Atlantic, Axios, Insider, ABC News, ESPN, and the Gothamist, among others have taken the step to shield themselves.

    American Airlines just got smacked with the largest-ever fine for keeping passengers waiting on the tarmac during multi-hour delays.

    The Department of Transportation is levying the $4.1 million fine, “the largest civil penalty that the Department has ever assessed” it said in a statement, for lengthy tarmac delays of 43 flights that impacted more than 5,800 passengers. The flights occurred between 2018 and 2021, reports CNN’s Gregory Wallace.

    In the longest of the delays, passengers sat aboard a plane in Texas in August 2020 for six hours and three minutes. The 105-passenger flight had landed after being diverted from the Dallas-Fort Worth International Airport due to severe weather, with the DOT alleging that “American (AAL) lacked sufficient resources to appropriately handle several of these flights once they landed.”

    Federal rules set the maximum time that passengers can be held without the opportunity to get off prior to takeoff or after landing, at three hours for domestic flights and four hours for international flights. Current rules also require airlines provide passengers water and a snack.

    American told CNN the delays all resulted from “exceptional weather events” and “represent a very small number of the 7.7 million flights during this time period.”

    The company also said it has invested in technology to better handle flights in severe weather and reduce the congestion at airports.

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    August 29, 2023
  • Climate change has ravaged India’s rice stock. Now its export ban could deepen a global food crisis | CNN Business

    Climate change has ravaged India’s rice stock. Now its export ban could deepen a global food crisis | CNN Business


    Harayana, India
    CNN
     — 

    Satish Kumar sits in front of his submerged rice paddy in India’s Haryana state, looking despairingly at his ruined crops.

    “I’ve suffered a tremendous loss,” said the third generation farmer, who relies solely on growing the grain to feed his young family. “I will not be able to grow anything until November.”

    The newly planted saplings have been underwater since July after torrential rain battered northern India, with landslides and flash floods sweeping through the region.

    Kumar said he has not seen floods of this scale in years and has been forced to take loans to replant his fields all over again. But that isn’t the only problem he’s facing.

    Last month, India, which is the world’s largest exporter of rice, announced a ban on exporting non-basmati white rice in a bid to calm rising prices at home and ensure food security. India then followed with more restrictions on its rice exports, including a 20% duty on exports of parboiled rice.

    The move has triggered fears of global food inflation, hurt the livelihoods of some farmers and prompted several rice-dependent countries to seek urgent exemptions from the ban.

    More than three billion people worldwide rely on rice as a staple food and India contributed to about 40% of global rice exports.

    Economists say the ban is just the latest move to disrupt global food supplies, which has suffered from Russia’s invasion of Ukraine as well as weather events such as El Niño.

    They warn the Indian government’s decision could have significant market reverberations with the poor in Global South nations in particular bearing the brunt.

    And farmers like Kumar say market price rises caused by poor harvests doesn’t result in a windfall for them either.

    “The ban is going to have an adverse effect on all of us. We won’t get a higher rate if rice isn’t exported,” Kumar said. “The floods were a death blow to us farmers. This ban will finish us.”

    Satish Kumar with whatever is left of his rice crops.

    The abrupt announcement of the export ban triggered panic buying in the United States, following which the price of rice soared to a near 12-year high, according to the United Nations Food and Agriculture Organization.

    It does not apply to basmati rice, which is India’s best-known and highest quality variety. Non-basmati white rice however, accounts for about 25% of exports.

    India wasn’t the first country to ban food exports to ensure enough supply for domestic consumption. But its move, coming just one week after Russia pulled out of the Black Sea grain deal — a crucial pact that allowed the export of grain from Ukraine — contributed to global concerns about the availability of grain staples and whether millions would go hungry.

    “The main thing here is that it is not just one thing,” Arif Husain, chief economist at the United Nations World Food Programme (WFP) told CNN. “[Rice, wheat and corn crops] make up bulk of the food which poor people around the world consume.”

    Workers in India sift through rice grains in capital New Delhi.

    Nepal has seen rice prices surge since India announced the ban, according to local media reports, and rice prices in Vietnam are the highest they have been in more than a decade, according to customs data.

    Thailand, the world’s second largest rice exporter after India, has also seen domestic rice prices jump significantly in recent weeks, according to data from the Thai Rice Exporters Association.

    Countries including Singapore, Indonesia and the Philippines, have appealed to New Delhi to resume rice exports to their nations, according to local Indian media reports. CNN has reached out to India’s Ministry of Agriculture but has not received a response.

    The International Monetary Fund (IMF) has encouraged India to remove the restrictions, with the organization’s chief economist, Pierre-Olivier Gourinchas, telling reporters last month that it was “likely to exacerbate” the uncertainty of food inflation.

    “We would encourage the removal of these types of export restrictions because they can be harmful globally,” he said.

    Now, there are fears that the ban has the world market bracing for similar actions by rival suppliers, economists warn.

    “The export ban is happening at a time when countries are struggling with high debt, food inflation, and declining depreciating currencies,” Husain from the WFP said. “It’s troubling for everyone.”

    Indian farmers account for nearly half of the country’s workforce, according to government data, with rice paddy mainly cultivated in central, southern, and some northern states.

    Summer crop planting typically starts in June, when monsoon rains are expected to begin, as irrigation is crucial to grow a healthy yield. The summer season accounts for more than 80% of India’s total rice output, according to Reuters.

    This year, however, the late monsoon arrival led to a large water deficit up until mid-June. And when the rains finally arrived, it drenched swathes of the country, unleashing floods that caused significant damage to crops.

    The heavy floods have affected the country's farmers.

    Surjit Singh, 53, a third generation farmer from Harayana said they “lost everything” after the rains.

    “My rice crops have been ruined,” he said. “The water submerged about 8-10 inches of my crops. What I planted (in early June) is gone… I will see a loss of about 30%.”

    The World Meteorological Organization last month warned that governments must prepare for more extreme weather events and record temperatures, as it declared the onset of the warming phenomenon El Niño.

    El Niño is a natural climate pattern in the tropical Pacific Ocean that brings warmer-than-average sea-surface temperatures and has a major influence on weather across the globe, affecting billions of people.

    The impact has been felt by thousands of farmers in India, some of whom say they will now grow crops other than rice. And it doesn’t just stop there.

    India's rice stock is piling up as a result of the ban.

    At one of New Delhi’s largest rice trading hubs, there are fears among traders that the export ban will cause catastrophic consequences.

    “The export ban has left traders with huge amounts of stock,” said rice trader Roopkaran Singh. “We now have to find new buyers in the domestic market.”

    But experts warn the effects will be felt far beyond India’s borders.

    “Poor countries, food importing countries, countries in West Africa, they are at the highest risk,” said Husain from the WFP. “The ban is coming on the back of war and a global pandemic… We need to be extra careful when it comes to our staples, so that we don’t end up unnecessarily rising prices. Because those increases are not without consequences.”

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    August 28, 2023
  • As hundreds remain missing in Maui, electric company admits evidence to determine how wildfires started may have been compromised | CNN

    As hundreds remain missing in Maui, electric company admits evidence to determine how wildfires started may have been compromised | CNN



    CNN
     — 

    Hundreds of people are still listed as unaccounted for after this month’s devastating wildfires on Maui – a number that’s expected to change as the FBI continues vetting names.

    The “validated list” curated by the FBI currently includes 388 names, Maui County said Thursday, as cell phone data is now being used to try to pinpoint where victims may have been when the deadliest US wildfire disaster in more than 100 years tore through the Hawaiian island. At least 115 people are confirmed dead, though authorities say that number is likely to change.

    The FBI on Friday acknowledged the list of names was “a subset of a larger list” of people who are believed to be missing. Steven Merrill, the bureau’s special agent in charge in Hawaii, said those currently on the list are people who authorities had more complete information about. Since the list was released, they’ve gotten “at least 100 people that have notified us that a certain person shouldn’t be on the list,” Merrill said – so the number of those still unaccounted for is expected to change.

    As the race to identify the lost continues, the state’s main electrical utility stands accused of compromising evidence in the fire investigation, and Maui County officials have followed others in suing the company over responsibility for the fire. First responders also are pressing for answers about why they weren’t better prepared after a similar ruinous fire five years ago.

    The updated list of the missing was released with hopes of confirming anyone who’s not truly still lost, officials said.

    “We’re releasing this list of names today because we know that it will help with the investigation,” Police Chief John Pelletier said in the release. “We also know that once those names come out, it can and will cause pain for folks whose loved ones are listed. This is not an easy thing to do, but we want to make sure that we are doing everything we can to make this investigation as complete and thorough as possible.”

    Pelletier said Friday that since the names were released, authorities have received hundreds of calls. Authorities would like to do a weekly update on the list of missing people to help notify the public, he said.

    The FBI has worked with agencies “to unduplicate people that have been reported missing,” Hawaii Gov. Josh Green said earlier Thursday in a social media post. Some 800 to 1,200 people have been listed as unaccounted for since the fires, he said.

    The grim search for those believed missing began shortly after wind-whipped flames tore through the island on August 8. Much of the western Maui community of Lahaina – once a lively economic and cultural hub – was left in ruins, with entire neighborhoods and businesses reduced to ash. Some residents were forced to jump into the ocean to survive as flames overtook the town.

    Search crews and cadaver dogs have searched 100% of single-story homes in the disaster area, Maui County officials said Tuesday. They are now going through multistory homes and commercial properties.

    And an FBI team that specializes in using cell phone data has launched in Maui to help identify potential fire victims, a law enforcement source told CNN. The Cellular Analysis Survey Team was on the island working with local law enforcement, the official said.

    The team can get and analyze cell phone company subscriber records and cellular tower registration data, which could prove useful to the search efforts by geolocating the last known area where a victim’s cell phone was operating.

    The team in the past has used information obtained through court orders to help with terrorism, kidnapping and criminal investigations.

    “Cellular telephone analysis” is among the resources being provided by the bureau, Steven Merrill, special agent in charge of the FBI’s office in Hawaii, said during news conference Tuesday without giving specifics.

    Additionally, Maui County has named a new interim administrator of the Maui Emergency Management Agency after its prior chief resigned from the post August 17.

    In announcing Darryl Oliveira’s hiring Friday, Maui County Mayor Richard Bissen said he has a track record of “invaluable experience and skill during challenging times.”

    Oliveira, who previously served as the administrator of the Hawaii County Civil Defense Agency, is expected to begin leading the county’s emergency agency Monday.

    In pictures: The deadly Maui wildfires

    As the human toll of the fire comes into focus, investigators also are trying to determine what sparked the flames, and while no official cause has been announced, the Hawaiian Electric Company is facing scrutiny over its actions before and after the fires broke out.

    Some evidence potentially vital in determining the cause of the deadly fire in Lahaina may have been compromised, Hawaiian Electric Company (HECO) acknowledged in an exchange with attorneys included in court documents obtained by CNN.

    The company said fallen power poles, power lines and other equipment were moved during firefighting efforts and as officials worked to make the area safe for residents, according to letters part of a class action lawsuit. The company told attorneys, who are representing Lahaina residents in the class action suit, that it was “possible, even likely” that evidence that “relate(s) to the cause of the fire” might be lost, correspondence obtained by CNN shows.

    The equipment was removed from the area around the Lahaina substation – which is thought to be where the blaze started – before federal investigators arrived.

    Those actions could have violated national guidelines, which say the fire scenes should be heavily preserved for investigators and any and all evidence should be secured and not removed from the site without documentation, court documents filed by attorneys say.

    The ATF said on August 17 that its National Response Team was being deployed to Hawaii to help determine the cause and origin of the deadly fire – days after the utility company acknowledged equipment and evidence had likely been moved or lost.

    On August 10 – two days after the wildfire devastated the town of Lahaina, a group of attorneys notified the utility of anticipated litigation and requested that all electrical equipment that may relate to the origin of the fire – including power poles, lines and conductors – be preserved.

    An attorney for Hawaiian Electric responded on August 11 that some potential evidence may have already been compromised during the firefight, not by the utility itself, but by others.

    John Moore, an attorney for the utility wrote to attorneys for the families on August 11 that the company’s main focus was the safety of first responders and displaced residents and restoring power.

    The company also noted it was taking steps to preserve property but local, state and federal agencies were on the ground and it was possible “that the actions of these third parties, whose actions Hawaiian Electric does not control, may result in the loss of property or other items that relate to the cause of the fire.”

    The families’ attorneys then submitted a request for a temporary restraining order to stop Hawaiian Electric from altering the scene where it’s believed the Lahaina fire started, court documents show.

    A judge signed an interim discovery order on August 18, detailing how the company should handle evidence around the scene, including preserving and protecting all physical evidence within a defined area and refraining from destructive testing.

    The order also specified that it was not making any findings of any wrongdoing at this time.

    The class action lawsuit was filed several days after the fires ignited alleging Hawaiian Electric failed to deenergize power lines ahead of the fire despite high wind and red flag warnings. The cause of the fire has not yet been determined. It is believed to have ignited near a power substation where “where authorities reported a downed power line early on August 8, 2023,” the complaint says.

    Hawaiian Electric vice president Jim Kelly previously told CNN that, “as has always been our policy, we don’t comment on pending litigation.”

    “At this early stage, the cause of the fire has not been determined and we will work with the state and county as they conduct their review,” he said.

    Hawaiian Electric has been “in regular communication with ATF and local authorities and are cooperating to provide them, as well as attorneys representing people affected by the wildfires, with inventories and access to the removed equipment, which we have carefully photographed, documented and stored,” spokesman Darren Pai told The Washington Post.

    CNN has requested further comment on the potentially compromised evidence.

    The ATF’s National Response Team, which is investigating the cause of the fire, declined to comment.

    While the investigation continues, Maui County officials made their position clear in a lawsuit filed Thursday, claiming “the negligence, carelessness, and recklessness, and/or unlawfulness” of Hawaiian Electric Company and its subsidiaries is directly responsible for the fires.

    The utility, known as HECO, “inexcusably kept their power lines energized” in early August, despite the National Weather Service issuing a High Wind Watch and a Fire Warning, the lawsuit alleges. The warnings cautioned that strong winds could knock down power lines and ignite a fire that would spread quickly due to dry conditions, the lawsuit indicated.

    Maui County is seeking damages from HECO that may total tens or hundreds of millions of dollars, said John Fiske, an attorney representing the county in the suit.

    “Our primary focus in the wake of this unimaginable tragedy has been to do everything we can to support not just the people of Maui, but also Maui County. We are very disappointed that Maui County chose this litigious path while the investigation is still unfolding,” a spokesperson from Hawaiian Electric told CNN in a statement.

    Hawaiian Electric Company serves 95% of the state’s customer base.

    As of Thursday, officials still were tracking at least three active fires on Maui, including the Lahaina fire, which was 90% contained after burning more than 2,170 acres. The Olinda fire, which has burned an estimated 1,081 acres, was 85% contained, and the Kula fire was also 85% contained, with just over 200 acres burned, county officials said.

    And even as fire crews work to find and contain hot spots, a Hawaii police union official said firefighters “were set up for failure” ahead of the outbreak.

    Following a destructive wildfire that broke out in 2018 under similar conditions in the same area, no wildfire management or other preventative methods were taken to mitigate future disasters, Nicholas Krau, the Maui Chapter Chair for the State of Hawaii Organization of Police Officers, told CNN.

    “We all knew this was going to happen again. While no one could have predicted this much destruction or loss of life, we all knew there would be another destructive fire that would threaten these same businesses and homes again,” Krau said. “I don’t know who’s responsible for preventing wildland fires and managing the private owned land where the fire started, but they should definitely answer for it.”

    More than 2,000 acres burned and 20 homes were damaged in the 2018 fire, county officials have said.

    Many police officers who helped with evacuations this month suffered smoke inhalation because they didn’t have proper respiratory protection, even after it was requested following previous fires, Krau said.

    “If someone needs help, (the police) are going to rush in and do everything they can to help. But the department and county of Maui have the obligation to properly equip them,” he said.

    CNN has reached out to Maui County and the Maui Police Department for comment on Krau’s claims.

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    August 26, 2023
  • Federal Reserve Chair Jerome Powell hints at more bad news for borrowers | CNN Business

    Federal Reserve Chair Jerome Powell hints at more bad news for borrowers | CNN Business


    Washington, DC
    CNN
     — 

    Additional interest rate hikes are still on the table and rates could remain elevated for longer than expected, Federal Reserve Chair Jerome Powell said Friday.

    Delivering a highly anticipated speech at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, Powell again stressed that the Fed will pay close attention to economic growth and the state of the labor market when making policy decisions.

    “Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

    The Fed chief’s annual presentation at the symposium, which has become a major event in the world of central banking, typically hints at what to expect from monetary policy in the coming months.

    Powell’s speech wasn’t a full-throated call for more rate hikes, but rather a balanced assessment of inflation’s evolution over the past year and the possible risks to the progress the Fed wants to see. He made it clear the central bank is retaining the option of more hikes, if necessary, and that what Fed officials ultimately decide will depend on data.

    US stocks opened higher before Powell’s speech, tumbled in late morning trading and then rose again.

    The Fed raised its benchmark lending rate by a quarter point in July to a range of 5.25-5.5%, the highest level in 22 years, following a pause in June. Minutes from the Fed’s July meeting showed that officials were concerned about the economy’s surprising strength keeping upward pressure on prices, suggesting more rate hikes if necessary. Some officials have said in recent speeches that the Fed can afford to keep rates steady, underscoring the intense debate among officials on what the Fed should do next.

    Financial markets still see an overwhelming chance the the Fed will decide to hold rates steady at its September meeting, according to the CME FedWatch tool, given that inflationary pressures have continued to wane.

    Here are some key takeaways from Powell’s speech.

    Chair Powell said there is still a risk that inflation won’t come down to the Fed’s 2% target as the central bank faces the proverbial last mile in its battle with higher prices.

    “Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said.

    Concerns over the economy running too hot for the Fed’s comfort only recently emerged.

    Economic growth in the second quarter picked up from the prior three-month period and the Atlanta Fed is currently estimating growth will accelerate even more in the third quarter.

    That could be a problem for the Fed, since the central bank’s primary mechanism for fighting inflation is by cooling the economy through tweaking the benchmark lending rate.

    Generally, if demand is red hot, employers will want to hire to meet that demand. But many firms continue to have difficulty hiring, according to business surveys from groups such as the National Federation of Independent Business. In theory, that could prompt wage increases in order to secure talent — and those higher costs could then be passed on to consumers.

    “if you’re a policymaker, you’re looking at the level of output relative to your estimate of what’s sustainable for maximum employment and 2% inflation,” William English, finance professor at Yale University who worked at the Fed’s Board of Governors from 2010 to 2015, told CNN. “So what does that mean for monetary policy? That may mean that they need rates to be higher for longer than they thought to get the economy on to that desirable trajectory, but there are a lot of questions around that force, and a lot of uncertainty.”

    Cleveland Fed President Loretta Mester is one of the Fed officials backing a more aggressive stance on fighting inflation.

    “We’ve come come a long way, but we don’t want to be satisfied, because inflation remains too high — and we need to see more evidence to be assured that it’s coming down in a sustainable way and in a timely way,” Mester said in an interview with CNBC after Powell’s remarks.

    Meanwhile, some other officials think there will eventually be enough restraint on the economy and that more hikes could cause unnecessary economic damage. The lagged effects of rate hikes on the broader economy are a key uncertainty for officials, since it’s not clear when exactly those effects will fully take hold. Research suggests it takes at least a year.

    “We are in a restrictive stance in my view, and we’re putting pressure on the economy to slow inflation,” Philadelphia Fed President Patrick Harker told Bloomberg in an interview Friday after Powell’s speech. “What I’m hearing — and I’ve been around my district all summer talking to people — is ‘you’ve done a lot very quickly.’”

    Powell pointed to the steady progress on inflation in the past year: The Fed’s preferred inflation gauge — the Personal Consumption Expenditures price index — rose 3% in June from a year earlier, down from the 3.8% rise in May. The Commerce Department officially releases July PCE figures next week, though Powell already previewed that report in his speech. He said the Fed’s favorite inflation measure rose 3.3% in the 12 months ended in July.

    The Consumer Price Index, another closely watched inflation measure, rose 3.2% in July, a faster pace than the 3% in June, though underlying price pressures continued to decelerate that month.

    In his speech Friday, Powell stood firmly by the Fed’s current 2% inflation target, which was formalized in 2012 — at least for now. The Fed is set to review its policy framework around 2025, which could be an opportunity to establish a new inflation target.

    Harvard economist Jason Furman said in an op-ed published in The Wall Street Journal this week that the central bank should aim for a different inflation goal, which could be something slightly higher than 2% or even a range of between 2% and 3%.

    For now, Powell has made it clear he is sticking with the stated inflation target.

    Still, inflation’s progress has hyped up not only American consumers and businesses, but also some Fed officials.

    Chicago Fed President Austan Goolsbee reiterated to CNBC Friday that he still sees “a path to a soft landing,” a scenario in which inflation falls down to target without a spike in unemployment or a recession.

    Powell also weighed in on an ongoing debate among economists about whether the “neutral rate of interest,” also known as r*, is higher since the economy is still on strong footing despite the Fed’s aggressive pace of rate hikes.

    In theory, the neutral rate is when real interest rates neither restrict nor stimulate growth. The Fed chair said higher interest rates are likely pulling on the economy’s reins, implying that r* might not be structurally higher, though he said it’s an unobservable concept.

    “We see the current stance of policy as restrictive, putting downward pressure on economic activity, hiring, and inflation. But we cannot identify with certainty the neutral rate of interest, and thus there is always uncertainty about the precise level of monetary policy restraint,” Powell said.

    Either way, while the Fed chief hinted that more rate hikes might be coming down the pike, there’s no guarantee either way.

    The Fed paused its historic inflation fight for the first time in June, mostly based on uncertainty over how the spring’s bank stresses would affect lending. The central bank could decide to pause again in September over uncertainty as it waits for more data.

    “We think that the Fed is more likely to take a wait-and-see approach with the data and try to understand a little bit more about why the labor market is remaining so strong, even despite the inflationary experience that we’ve had and the higher interest rates in the economy,” Sinead Colton Grant, head of investor solutions at BNY Mellon Wealth Management, told CNN in an interview.

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    August 25, 2023
  • Saudi Arabia, UAE and Iran among six countries invited to join BRICS group | CNN Business

    Saudi Arabia, UAE and Iran among six countries invited to join BRICS group | CNN Business



    CNN
     — 

    Oil powers Saudi Arabia and the United Arab Emirates have been invited to become members of the BRICS group of developing nations in its first expansion in over a decade.

    Also invited are Iran, Egypt, Ethiopia and Argentina, South African President Cyril Ramaphosa said Thursday as he wrapped up the annual summit of the group in Johannesburg.

    Saudi Foreign Minister Prince Faisal bin Farhan said the kingdom was awaiting details from the BRICS group on the nature of the membership, and would take an “appropriate decision” accordingly.

    All six countries invited had already expressed an interest in joining. The BRICS group currently includes Brazil, Russia, India, China and South Africa.

    “The membership will take effect from the first of January, 2024,” Ramaphosa said.

    In a video message, Russian President Vladimir Putin congratulated the new BRICS members, adding that the bloc’s global influence would continue to grow.

    “I would like to congratulate the new members who will work in a full-scale format next year,” Putin said.

    “And I would like to assure all our colleagues that we will continue the work that we started today on expanding the influence of BRICS in the world,” the Russian president added.

    China’s President Xi Jinping called the bloc’s expansion “historic,” reflecting its determination to “unite and cooperate with developing countries.”

    “[It will] inject new impetus into the BRICS cooperation mechanism and further strengthen the power of world peace and development,” Jinping said.

    Indian Prime Minister Narendra Modi also welcomed the expansion, saying his country had always believed that adding new members would strengthen the bloc.

    Speaking to Saudi TV channel Al Arabiya, the Saudi foreign minister added that the bloc had “proven itself to be a useful and important channel to strengthen economic cooperation with countries of the so-called Global South.”

    Bin Farhan told the BRICS conference earlier Thursday that the kingdom would continue to be a “secure and reliable energy provider,” adding that total bilateral trade between Saudi Arabia and BRICS nations exceeded $160 billion in 2022.

    If Saudi Arabia accepts the invitation, the world’s largest crude oil exporter will find itself in the same economic bloc as the world’s biggest oil importer, China.

    It will also mean that Russia and Saudi Arabia — both members of OPEC+, a group of major oil producers — will join each other in a new economic bloc. The two countries often coordinate their oil output, which has in the past put Saudi Arabia at odds with its ally, the United States.

    The bloc’s expansion raises the question of potential de-dollarization, a process by which members would gradually switch to using currencies other than the US dollar to conduct trade. The BRICS countries have also been talking about a common currency, an idea analysts have described as unworkable and “unlikely” in the near future.

    Putin said the issue of a common currency was a “difficult question” but added “we will move towards solving these problems.”

    The expansion takes place at a time when some BRICS members, namely Russia and China, are locked into rising tensions with the West.

    Experts have said that choosing to include countries that are openly antagonistic toward the West, such as Iran, could swing the group further toward becoming an anti-Western bloc.

    Built off a term originally coined by former Goldman Sachs economist Jim O’Neill to describe key emerging markets, the group has persisted despite deep differences in political and economic systems among its members.

    “Economically, not many of the countries that are applying to join are particularly large,” O’Neill told Bloomberg earlier this week.

    Existing BRICS members have “had enough difficulty trying to agree just between the five of them,” he added. “So beyond the admittedly hugely powerful symbolism, I’m not quite sure what having a lot more countries in there is going to achieve.”

    BRICS held its first summit in 2009 with four members and then added South Africa the following year. It launched its New Development Bank in 2015.

    The United Arab Emirates President Mohamed bin Zayed al Nahyan said on X, formerly Twitter: “We appreciate the inclusion of the UAE as a member to this important group.”

    Egyptian President Abdel Fattah el-Sisi said his country looked forward to joining BRICS in order to strengthen economic cooperation among its members, as well as “raise the voice of the Global South,” according to the presidential spokesperson.

    — Manveena Suri, Mostafa Salem, Lizzy Yee, Mengchen Zhang and Nadeen Ebrahim contributed to this article.

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    August 24, 2023
  • Fact check: The first Republican presidential debate of the 2024 election | CNN Politics

    Fact check: The first Republican presidential debate of the 2024 election | CNN Politics



    CNN
     — 

    Republican presidential candidates delivered a smattering of false and misleading claims at the first debate of the 2024 election – though none of the eight candidates on stage in Milwaukee delivered anything close to the bombardment of false statements that typically characterized the debate performances of former President Donald Trump, the Republican front-runner who skipped the Wednesday event.

    Sen. Tim Scott of South Carolina inaccurately described the state of the economy in early 2021 and repeated a long-ago-debunked false claim about the Biden-era Justice Department. Former New Jersey Gov. Chris Christie misstated the sentence attached to a gun law relevant to the investigation into the president’s son Hunter Biden. Florida Gov. Ron DeSantis misled about his handling of the Covid-19 pandemic, omitting mention of his early pandemic restrictions.

    Below is a fact check of those claims and various others from the debate, some of which left out key context. In addition, below is a brief fact check of some of Trump’s claims from a pre-taped interview he did with Tucker Carlson, which was posted online shortly before the debate aired. Trump made a variety of statements that were not true.

    DeSantis and the pandemic

    DeSantis criticized the federal government for its handling of the Covid-19 pandemic, claiming it had locked down the economy, and then said: “In Florida, we led the country out of lockdown, and we kept our state free and open.”

    Facts First: DeSantis’s claim is misleading at best. Before he became a vocal opponent of pandemic restrictions, DeSantis imposed significant restrictions on individuals, businesses and other entities in Florida in March 2020 and April 2020; some of them extended months later into 2020. He did then open up the state, with a gradual phased approach, but he did not keep it open from the start.

    DeSantis received criticism in March 2020 for what some critics perceived as a lax approach to the pandemic, which intensified as Florida beaches were packed during Spring Break. But that month and the month following, DeSantis issued a series of major restrictions. For example, DeSantis:

    • Closed Florida’s schools, first with a short-term closure in March 2020 and then, in April 2020, with a shutdown through the end of the school year. (In June 2020, he announced a plan for schools to reopen for the next school year that began in August. By October 2020, he was publicly denouncing school closures, calling them a major mistake and saying all the information hadn’t been available that March.)
    • On March 14, 2020, announced a ban on most visits to nursing homes. (He lifted the ban in September 2020.)
    • On March 17, 2020, ordered bars and nightclubs to close for 30 days and restaurants to operate at half-capacity. (He later approved a phased reopening plan that took effect in May 2020, then issued an order in September 2020 allowing these establishments to operate at full capacity.)
    • On March 17, 2020, ordered gatherings on public beaches to be limited to a maximum of 10 people staying at least six feet apart, then, three days later, ordered a shutdown of public beaches in two populous counties, Broward and Palm Beach. (He permitted those counties’ beaches to reopen by the last half of May.)
    • On March 20, 2020, prohibited “any medically unnecessary, non-urgent or non-emergency” medical procedures. (The prohibition was lifted in early May 2020.)
    • On March 23, 2020, ordered that anyone flying to Florida from an area with “substantial community spread” of the virus, “to include the New York Tri-State Area (Connecticut, New Jersey and New York),” isolate or quarantine for 14 days or the duration of their stay in Florida, whichever was shorter, or face possible jail time or a fine. Later that week, he added Louisiana to the list. (He lifted the Louisiana restriction in June 2020 and the rest in August 2020.)
    • On April 3, 2020, imposed a statewide stay-home order that temporarily required people in Florida to “limit their movements and personal interactions outside of their home to only those necessary to obtain or provide essential services or conduct essential activities.” (Beginning in May 2020, the state switched to a phased reopening plan that, for months, included major restrictions on the operations of businesses and other entities; DeSantis described it at the time as a “very slow and methodical approach” to reopening.)

    -From CNN’s Daniel Dale

    Nikki Haley, the former South Carolina governor and US ambassador to the United Nations, said: “Donald Trump added $8 trillion to our debt, and our kids are never going to forgive us for this.”

    Facts First: Haley’s figure is accurate. The total public debt stood at about $19.9 trillion on the day Trump took office in 2017 and then increased by about $7.8 trillion over Trump’s four years, to about $27.8 trillion on the day he left office in 2021.

    It’s worth noting, however, that the increase in the debt during any president’s tenure is not the fault of that president alone. A significant amount of spending under any president is the result of decisions made by their predecessors – such as the creation of Social Security, Medicare and Medicaid decades ago – and by circumstances out of a president’s control, notably including the global Covid-19 pandemic under Trump; the debt spiked in 2020 after Trump approved trillions in emergency pandemic relief spending that Congress had passed with overwhelming bipartisan support.

    Still, Trump did choose to approve that spending. And his 2017 tax cuts, unanimously opposed by congressional Democrats, were another major contributor to the debt spike.

    -From CNN’s Daniel Dale and Katie Lobosco

    North Dakota Gov. Doug Burgum claimed that Biden’s signature climate bill costs $1.2 trillion dollars and is “just subsidizing China.”

    Facts First: This claim needs context. The clean energy pieces of the Inflation Reduction Act – Democrats’ climate bill – passed with an initial price tag of nearly $370 billion. However, since that bill is made up of tax incentives, that price tag could go up depending on how many consumers take advantage of tax credits to buy electric vehicles and put solar panels on their homes, and how many businesses use the subsidies to install new utility scale wind and solar in the United States.

    Burgum’s figure comes from a Goldman Sachs report, which estimated the IRA could provide $1.2 trillion in clean energy tax incentives by 2032 – about a decade from now.

    On Burgum’s claim that Biden’s clean energy agenda will be a boon to China, the IRA was specifically written to move the manufacturing supply chain for clean energy technology like solar panels and EV batteries away from China and to the United States.

    In the year since it was passed, the IRA has spurred 83 new or expanded manufacturing facilities in the US, and close to 30,000 new clean energy manufacturing jobs, according to a tally from trade group American Clean Power.

    -From CNN’s Ella Nilsen

    With the economy as one of the main topics on the forefront of voters’ minds, Scott aimed to make a case for Republican policies, misleadingly suggesting they left the US economy in record shape before Biden took office.

    “There is no doubt that during the Trump administration, when we were dealing with the COVID virus, we spent more money,” Scott said. “But here’s what happened at the end of our time in the majority: we had low unemployment, record low unemployment, 3.5% for the majority of the population, and a 70-year low for women. African Americans, Hispanics, and Asians had an all-time low.”

    Facts First: This is false. Scott’s claims don’t accurately reflect the state of the US economy at the end of the Republican majority in the Senate. And in some cases, his exaggerations echo what Trump himself frequently touted about the economy under his leadership.

    By the time Trump left office and the Republicans lost the Senate majority in January 2021, US unemployment was not at a record low. The US unemployment rate dropped to a seasonally adjusted rate of 3.5% in September 2019, the country’s lowest in 50 years. While it hovered around that level for five months, Scott’s assertion ignores the coronavirus pandemic-induced economic destruction that followed. In April 2020, the unemployment rate spiked to 14.7% — the highest level since monthly records began in 1948. As of December 2020, the unemployment rate was at 6.7%.

    Nor was the unemployment rate for women at a 70-year low by the end of Trump’s time in office. It reached a 66-year low during certain months of 2019, at 3.4% in April and 3.6% in August, but by December 2020, unemployment for women was at 6.7%.

    The unemployment rates for African Americans, Hispanics, and Asians were also not at all-time lows at the end of 2020, but they did reach record lows during Trump’s tenure as president.

    -From CNN’s Tara Subramaniam

    Scott said that the Justice Department under President Joe Biden is targeting “parents that show up at school board meetings. They are called, under this DOJ, they’re called domestic terrorists.”

    Facts First: It is false that the Justice Department referred to parents as domestic terrorists. The claim has been debunked several times – during the uproar at school boards over Covid-19 restrictions and anti-racism curriculums; after Kevin McCarthy claimed Republicans would investigate Merrick Garland with a majority in the House; and even by a federal judge. The Justice Department never called parents terrorists for attending or wanting to attend school board meetings.

    The claim stems from a 2021 letter from The National School Boards Associations asking the Justice Department to “deal with” the uptick in threats against education officials and saying that “acts of malice, violence, and threats against public school officials” could be classified as “the equivalent to a form of domestic terrorism and hate crimes.” In response, Garland released a memo encouraging federal and local authorities to work together against the harassment campaigns levied at schools, but never endorsed the “domestic terrorism” notion.

    A federal judge even threw out a lawsuit over the accusation, ruling that Garland’s memo did little more than announce a “series of measures” that directed federal authorities to address increasing threats targeting school board members, teachers and other school employees.

    -From CNN’s Hannah Rabinowitz

    Haley, the former ambassador to the United Nations and governor of South Carolina, said the US is spending “less than three and a half percent of our defense budget” on Ukraine aid, and that in terms of financial aid relative to GDP, “11 of the European countries have given more than the US.”

    Facts First: This is partly true. Haley’s claim regarding the US aid to Ukraine compared to the total defense budget is slightly under the actual percentage, but it is accurate that 11 European countries have given more aid to Ukraine as a percentage of their total GDP than the US.

    As of August 14, the US has committed more than $43 billion in military aid to Ukraine since the beginning of the war in Ukraine, according to the Defense Department. In comparison, the Fiscal Year 2023 defense budget was $858 billion – making aid to Ukraine just over 5% of the total US defense budget.

    As of May 2023, according to a Council of Foreign Relations tracker, 11 countries were providing a higher share in aid to Ukraine relative to their GDP than the US – led by Estonia, Latvia, Lithuania, and Poland.

    -From CNN’s Haley Britzky

    Former Vice President Mike Pence said Wednesday that the Trump administration “spent funding to backfill on the military cuts of the Obama administration.”

    Facts First: This is misleading. While military spending decreased under the Obama administration, it was largely due to the 2011 Budget Control Act, which received Republican support and resulted in automatic spending cuts to the defense budget.

    Mike Pence, a senator at the time, voted in favor of the Budget Control Act.

    -From CNN’s Haley Britzky

    Christie said President Biden’s son Hunter Biden was “facing a 10-year mandatory minimum” for lying on a federal form when he purchased a gun in 2018.

    Facts First: Christie, a former federal prosecutor, clearly misstated the law. This crime can lead to a maximum prison sentence of 10 years, but it doesn’t have a 10-year mandatory minimum.

    These comments are related to the highly scrutinized Justice Department investigation into Hunter Biden, which is currently ongoing after a plea deal fell apart earlier this summer.

    As part of the now-defunct deal, Hunter Biden agreed to plead guilty to two tax misdemeanors and enter into a “diversion agreement” with prosecutors, who would drop the gun possession charge in two years if he consistently stayed out of legal trouble and passed drug tests.

    The law in question makes it a crime to purchase a firearm while using or addicted to illegal drugs. Hunter Biden has acknowledged struggling with crack cocaine addiction at the time, and admitted at a court hearing and in court papers that he violated this law by signing the form.

    The US Sentencing Commission says, “The statutory maximum penalty for the offense is ten years of imprisonment.” There isn’t a mandatory 10-year punishment, as Christie claimed.

    During his answer, Christie also criticized the Justice Department for agreeing to a deal in June where Hunter Biden could avoid prosecution on the felony gun offense. That deal was negotiated by special counsel David Weiss, who was first appointed to the Justice Department by former President Donald Trump.

    -From CNN’s Marshall Cohen

    Burgum and Scott got into a back and forth over IRS staffing with Burgum saying that the “Biden administration wanted to put 87,000 people in the IRS,” and Scott suggesting they “fire the 87,000 IRS agents.”

    Facts First: This figure needs context.

    The Inflation Reduction Act, which passed last year without any Republican votes, authorized $80 billion in new funding for the IRS to be delivered over the course of a decade.

    The 87,000 figure comes from a 2021 Treasury report that estimated the IRS could hire 86,852 full-time employees with a nearly $80 billion investment over 10 years.

    While the funding may well allow for the hiring of tens of thousands of IRS employees over time, far from all of these employees will be IRS agents conducting audits and investigations.

    Many other employees will be hired for the non-agent roles, from customer service to information technology, that make up most of the IRS workforce. And a significant number of the hires are expected to fill the vacant posts left by retirements and other attrition, not take newly created positions.

    The IRS has not said precisely how many new “agents” will be hired with the funding. But it is already clear that the total won’t approach 87,000. And it’s worth noting that the IRS may not receive all of the $80 billion after Republicans were able to claw back $20 billion of the new funding as part of a deal to address the debt ceiling made earlier this year.

    -From CNN’s Katie Lobosco

    Trump repeated a frequent claim during his interview with Carlson that streamed during the GOP debate that his retention of classified documents at Mar-a-Lago after leaving the White House was “covered” under the Presidential Records Act and that he is “allowed to do exactly that.”

    Facts First: This is false. The Presidential Records Act says the exact opposite – that the moment presidents leave office, all presidential records are to be turned over to the federal government. Keeping documents at Mar-a-Lago after his presidency concluded was in clear contravention of that law.

    According to the Presidential Records Act, “upon the conclusion of a President’s term of office, or if a President serves consecutive terms upon the conclusion of the last term, the Archivist of the United States shall assume responsibility for the custody, control, and preservation of, and access to, the Presidential records of that President.”

    The sentence makes clear that a president has no authority to keep documents after leaving the White House.

    The National Archives even released a statement refuting the notion that Trump’s retention of documents was covered by the Presidential Records Act, writing in a June news release that “the PRA requires that all records created by Presidents (and Vice-Presidents) be turned over to the National Archives and Records Administration (NARA) at the end of their administrations.”

    -From CNN’s Hannah Rabinowitz

    While discussing electric vehicles, Trump claimed that California “is in a big brownout because their grid is a disaster,” adding that the state’s ambitious electric vehicle goals won’t work with the grid in such shape.

    Facts First: Trump’s claim that California’s grid is currently in a “big brownout” and is a “disaster” isn’t true. California’s grid suffered rolling blackouts in 2020, but it has performed quite well in the face of extreme heat this summer, owing in large part to a massive influx of renewable energy including battery storage. These big batteries keep energy from wind and solar running when the wind isn’t blowing and sun isn’t shining. (Batteries are also being deployed at a rapid rate in Texas, a red state.)

    Another reason California’s grid has stayed stable this year even during extreme temperature spikes is the fact that a deluge of snow and rain this winter and spring has refilled reservoirs that generate electricity using hydropower.

    As Trump insinuated, there are real questions about how well the state’s grid will hold up as California’s drivers shift to electric vehicles by the millions by 2035 – the same year it will phase out selling new gas-powered cars. California state officials say they are preparing by adding new capacity to the grid and urging more people to charge their vehicles overnight and during times of the day when fewer people are using energy. But independent experts say the state needs to exponentially increase its clean energy while also building out huge amounts of new EV chargers to achieve its goals.

    -From CNN’s Ella Nilsen

    Trump and the border wall

    Trump claimed to Carlson, “I had the strongest border in the history of our country, and I built almost 500 miles of wall. You know, they’d like to say, ‘Oh, was it less?’ No, I built 500 miles. In fact, if you check with the authorities on the border, we built almost 500 miles of wall.”

    Facts First: This needs context. Trump and his critics are talking about different things when they use different figures for how much border wall was built during his presidency. Trump is referring to all of the wall built on the southern border during his administration, even in areas that already had some sort of barrier before. His critics are only counting the Trump-era wall that was built in parts of the border that did not have any previous barrier.

    A total of 458 miles of southern border wall was built under Trump, according to a federal report written two days after Trump left office and obtained by CNN’s Priscilla Alvarez. That is 52 miles of “primary” wall built where no barriers previously existed, plus 33 miles of “secondary” wall that was built in spots where no barriers previously existed, plus another 373 miles of primary and secondary wall that was built to replace previous barriers the federal government says had become “dilapidated and/or outdated.”

    Some of Trump’s rival candidates, such DeSantis and Christie, have used figures around 50 miles while criticizing Trump for failing to finish the wall – counting only the primary wall built where no barriers previously existed.

    While some Trump critics have scoffed at the replacement wall, the Trump-era construction was generally much more formidable than the older barriers it replaced, which were often designed to deter vehicles rather than people on foot. Washington Post reporter Nick Miroff tweeted in 2020: “As someone who has spent a lot of time lately in the shadow of the border wall, I need to puncture this notion that ‘replacement’ sections are ‘not new.’ There is really no comparison between vehicle barriers made from old rail ties and 30-foot bollards.”

    Ideally, both Trump and his opponents would be clearer about what they are talking about: Trump that he is including replacement barriers, his opponents that they are excluding those barriers.

    -From CNN’s Daniel Dale

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    August 23, 2023
  • 8 candidates qualify for first 2024 Republican presidential debate | CNN Politics

    8 candidates qualify for first 2024 Republican presidential debate | CNN Politics



    CNN
     — 

    Eight Republicans have qualified for the party’s first 2024 presidential primary debate Wednesday night, the Republican National Committee announced Monday evening.

    The list includes North Dakota Gov. Doug Burgum, former New Jersey Gov. Chris Christie, Florida Gov. Ron DeSantis, former South Carolina Gov. Nikki Haley, former Arkansas Gov. Asa Hutchinson, former Vice President Mike Pence, entrepreneur Vivek Ramaswamy and South Carolina Sen. Tim Scott.

    Former President Donald Trump – the clear front-runner in national and early state polls – has said he would skip the debate in Milwaukee and called on his rivals to drop out.

    To make the first debate stage, the RNC required candidates to draw at least 40,000 individual donors and register at least 1% support in three national polls or in two national and two early state polls that met the RNC’s criteria. The candidates were also required to sign a pledge to back the eventual winner of the GOP primary, no matter who it is. It’s not clear whether Trump, like those who will be onstage Wednesday, has signed that pledge.

    “The RNC is excited to showcase our diverse candidate field and the conservative vision to beat Joe Biden on the debate stage Wednesday night,” RNC chair Ronna McDaniel said in Monday night’s statement.

    Here’s a look at who’s in and who’s out of the first GOP debate of the 2024 presidential primary.

    Ron DeSantis

    The Florida governor could wear the biggest target Wednesday night, as the top-polling candidate onstage in Trump’s absence. DeSantis has downsized and reshuffled his campaign in recent weeks after failing to make progress toward unseating Trump as the GOP’s standard-bearer in the primary’s early months. His turn in the national spotlight Wednesday could become a turning point in the party’s primary – either launching DeSantis forward or displacing him as the top Trump alternative.

    Vivek Ramaswamy

    The tech entrepreneur posted a video of himself shirtless, practicing tennis, on Monday in a tweet he described as his debate prep. He has also made appearances on the sorts of liberal media programs that many Republican contenders skip, such as a podcast with HBO host Bill Maher. A memo by a pro-DeSantis super PAC made public last week advised the Florida governor to attack Ramaswamy, an indication of the 38-year-old’s rise in the race.

    Mike Pence

    The former vice president faced more difficulties than some of his rivals in reaching the 40,000 donor threshold but did so with two weeks to spare. He suggested he had looked forward to a showdown with his former ticket mate. Criticizing Trump’s decision to skip the debate, Pence said Sunday on ABC News that every candidate who qualified “ought to be on the stage willing to square off and answer those tough questions.”

    Nikki Haley

    The former South Carolina governor and US ambassador to the United Nations under Trump offered a glimpse of how Republicans onstage could be more focused on chipping away at their lower-polling rivals’ support than on taking on Trump directly. On Monday, she criticized Ramaswamy, saying on social media that “his foreign policies have a common theme: they make America less safe.”

    Tim Scott

    The South Carolina senator has sought to offer a more positive contrast to rivals such as Trump and DeSantis – and he could be on a collision course with the Florida governor as they vie to become the top choice of those seeking to move on from the former president.

    Chris Christie

    The former New Jersey governor is perhaps the biggest wild card on Wednesday night’s stage. As a presidential contender in 2016, he all but ended Marco Rubio’s presidential hopes in a debate when he relentlessly mocked the Florida senator for delivering a “memorized 25-second speech.” Christie has positioned himself as a fierce Trump critic, but he won’t get a head-to-head showdown with Trump skipping the debate.

    Doug Burgum

    The North Dakota governor, who attracted donors with a gift-card scheme – $20 in exchange for $1 donations – has described himself as the least-known contender on Wednesday night’s stage. He said Sunday on NBC that he’ll have succeeded in the debate “if we get a chance to explain who we are, what we’re about and why we’re running.”

    Asa Hutchinson

    The former Arkansas governor has also positioned himself as a Trump critic. He previously complained about the RNC’s loyalty pledge requirement but told CNN’s Kasie Hunt on Sunday that he was signing the pledge because he was “confident that Donald Trump’s not going to be the nominee.”

    Donald Trump

    The former president made official Sunday on his social media platform Truth Social what he’d hinted at for months: He is skipping the first debate. Trump pointed to his sizable leads in Republican primary polls and said Americans are already familiar with his record after four years in the White House.

    Still, Trump’s campaign is attempting to seize some of the spotlight in Milwaukee. The former president has taped an interview with former Fox News host Tucker Carlson that is expected to be used as counterprogramming during the debate.

    Perry Johnson

    The Michigan businessman fell short of the RNC’s polling requirements despite a series of unusual schemes his campaign employed to rack up the minimum 40,000 donors necessary to qualify. It sold “I Stand with Tucker” T-shirts defending the former Fox News host after his firing. It also offered tickets to a concert by country duo Big & Rich to anyone who donated. And it handed out $10 gas cards to anyone willing to make a $1 contribution.

    Perry insisted after the RNC announced the debate participants that he had met the committee’s qualification requirements. “The debate process has been corrupted, plain and simple,” he said on X, formerly known as Twitter.

    Francis Suarez

    The Miami mayor, who had told Fox News it was “critical” for his 2024 chances to qualify for the debate, said he had exceeded the donor threshold, but he did not meet the RNC’s polling requirements. Suarez said in a statement Tuesday that he was “sorry” the event would not include his “perspectives,” but that he respects “the rules and process set forth by the RNC.”

    His absence could be a break for DeSantis, who has faced sharp criticism from his fellow Florida Republican.

    Will Hurd

    The former Texas congressman is one of the most outspoken Trump critics in the race – and has faced backlash for it, such as when he was booed at the Iowa GOP’s Lincoln Dinner in July after telling the Des Moines crowd that the former president was “running to stay out of prison.”

    Hurd on Tuesday criticized the RNC for its “unacceptable process” for determining the debate participants. He accused the committee of disregarding polls that included independents and Democrats who would have backed a Republican candidate. He previously said he wouldn’t sign the RNC pledge, but he appeared to have shifted his position last week when he said he was “confident” he would be onstage in Milwaukee.

    Larry Elder

    The conservative California talk radio host, who was the leading GOP candidate in the state’s 2021 gubernatorial recall, has sharply criticized the RNC’s debate qualification requirements. He said Tuesday on X that he intended sue the RNC to “halt” Wednesday’s proceedings, asserting that officials were “afraid of having my voice on the debate stage.”

    Elder had attempted to meet the 40,000 donor threshold with a radio blitz Monday, but, according to CNN’s count, was also short of the polling requirements.

    Ryan Binkley

    The little-known Texas pastor and entrepreneur got a spot in the Iowa GOP Lincoln Dinner’s speaking lineup. He tweeted Sunday that he had more than 45,000 donors. But he has not made waves in primary polling.

    This story has been updated with additional information.

    Source link

    August 22, 2023
  • Vegan Sam Bankman-Fried is subsisting only on bread and water in jail, his attorneys say | CNN Business

    Vegan Sam Bankman-Fried is subsisting only on bread and water in jail, his attorneys say | CNN Business


    New York
    CNN
     — 

    Sam Bankman-Fried pleaded not guilty Tuesday to amended fraud and money laundering charges, appearing in court for the first time since his bail was revoked and he was sent to a Brooklyn jail to await trial.

    Lawyers for the former crypto billionaire, who is vegan, said the detention center is not accommodating his diet and failing to regularly dispense his prescription Adderall.

    “He’s literally now subsisting on bread and water, which are the only things he’s served that he can eat, and sometimes peanut butter,” his attorney, Mark Cohen, told the court.

    Magistrate Judge Netburn said she would contact the Bureau of Prisons about the accommodations.

    Bankman-Fried, also known as SBF, has spent the past 11 days in the Metropolitan Detention Center in Brooklyn, a notoriously overcrowded facility that’s been regularly accused of keeping inmates in inhumane conditions. It’s a far cry from his house arrest, which he spent in the relative luxury of his parents Palo Alto home in California.

    On August 11, Judge Lewis Kaplan revoked SBF’s bail and remanded him to the facility, ultimately siding with prosecutors’ argument that he had attempted to intimidate potential witnesses against him, including his former business partner and ex-girlfriend, Caroline Ellison.

    Bankman-Fried, 31, has pleaded not guilty to multiple conspiracy and fraud charges relating to the collapse of his exchange, FTX, in November. He faces a potential life sentence if convicted on all the charges.

    Before its collapse, FTX was one of the largest crypto-trading platforms in the world, backed by A-list celebrities and featured in Super Bowl commercials. But the company came unglued in the span of a week as concerns about its financial ties to SBF’s crypto hedge fund, Alameda Research, spurred investors and customers to yank their funds. The company filed for bankruptcy and quickly became the center of the federal fraud investigation.

    While awaiting his trial, SBF will be granted a window of time, from 8:30 am to 3 pm, on weekdays to meet with his attorneys, according to a court filing released Monday.

    Source link

    August 22, 2023
  • Hilary moves through Southwest with historic amount of rainfall | CNN

    Hilary moves through Southwest with historic amount of rainfall | CNN



    CNN
     — 

    Hilary has triggered deadly flooding, heavy rains and powerful gusts across parts of the southwest and Mexico, transforming streets into raging rivers and forcing some residents to flee, and leaving others in need of rescue, even after the storm weakened to a post-tropical cyclone.

    More rain is expected to fall throughout Monday and Tuesday as officials clean up the aftermath. After hitting Southern California on Sunday as a tropical storm – the state’s first since 1997 – Hilary headed into Nevada as its first-ever recorded tropical storm. As Hilary moves across the southwest, the storm has brought power outages, life-threatening flooding and calls for residents to evacuate or shelter in place.

    Live updates: Hilary brings major flood risk to California

    The storm broke rainfall records across Southern California: Palm Springs got nearly a year’s worth of rain with 4.3 inches in 24 hours, one of its rainiest days ever. Death Valley nearly set a record with 1.68 inches, and the Furnace Creek area, which usually gets about two-tenths of an inch in August, got 0.63 inches.

    And the storm is the rainiest tropical storm system in Nevada’s history, nearly doubling the state’s 116-year-old all-time record, according to preliminary data from NOAA’s Weather Prediction Center. Hilary has released 8.7 inches of rain on Lee Canyon, Nevada, smashing the previous record of 4.36 inches in 1906.

    Watch: Massive mudslide sends firefighters scrambling to safety

    More rain is expected to cause dangerous flash, urban and arroyo flooding in some places, including landslides, mudslides and debris flows. Localized flooding is expected into Tuesday morning across northern portions of the Intermountain West.

    In Palm Springs, a section of Interstate 10 is shut down while road crews clear away mud left behind by floodwaters from Tropical Storm Hilary, but other routes in and out of the desert oasis near Joshua Tree National Park are open.

    In addition, many freeway off-ramps are limited because of mud, and CalTrans crews are working to clear those in an effort to ease accessibility.

    Emergency telephone service, which had been down since midmorning, has been restored, the police department said, but an outage continues to affect other areas of the Coachella Valley.

    “We are not used to this level of precipitation, generally – certainly not in the middle of summer,” San Diego Mayor Todd Gloria told CNN on Sunday.

    “With what we’re expecting, it may overwhelm us.”

    Tropical storm Hilary caused a section of the normally-dry Whitewater River to flood parts of a golf course in Cathedral City, California. (Photo by Mario Tama/Getty Images)

    Here’s the latest:

    • Heavy rains and some flooding may continue Tuesday morning in parts of the Intermountain West, according to the National Hurricane Center. The rain will cause “mostly localized areas of flash flooding,” the National Weather Service Prediction Center said. Flood watches remain in place across eight Western states.

    • Strong and gusty winds will blow in Nevada, western Utah, southern Idaho and southwest Montana, the hurricane center said. Coastal tropical storm warnings have been discontinued.

    • Some portions of Southern California lost power during the storm but electricity was mostly restored by Monday evening. A total of about 41,000 customers in Los Angeles were without power at one point, Marty Adams, general manager and chief engineer at the Los Angeles Department of Water and Power, said Monday.

    • People in parts of Southern California should not travel unless they are fleeing an area under flooding or under an evacuation order, the National Weather Service has warned.

    • Flooding, mudslides and downed trees and wires were widely reported across Southern California on Sunday and Monday. At least nine people were rescued Sunday in a San Diego riverbed, San Diego Fire-Rescue said, with water rescues also reported in Ventura County and Palm Springs.

    • In Mexico, where the storm first landed, power has been restored to 80% of customers in the three states affected by Hilary, according to the national power company. “379,850 users have been affected, and electricity supply has been restored to 302,134, equivalent to 80%,” said the Federal Electricity Commission in a statement Monday.

    Maura Taura surveys the damaged cause by a downed tree outside her home.

    To the west, Los Angeles and Ventura counties saw “considerable damage” Sunday night amid reports of dangerous flash flooding, and rock and mudslides, the National Weather Service said, adding up to half an inch of rain could fall per hour.

    Cars were stuck in floodwaters in the Spanish Hills area, the National Weather Service reported.

    Crowley urged residents to take precautions on the roads.

    “A relatively small amount of water can sweep a vehicle away,” she said.

    In Los Angeles, the worst of the storm was over as of Monday morning, according to officials. All weather warnings in the city were canceled. “We are past the brunt of the impact,” said National Weather Service meteorologist Ariel Cohen.

    Schools in San Diego and Los Angeles are set to reopen Tuesday after closing Monday in anticipation of the storm. Officials canceled classes for the more than 121,000 students in the San Diego Unified School District.

    The Los Angeles Unified School District, the second-largest in the nation, also shut down Monday. The district spans about 700 square miles, meaning the impact of the storm varied for its students.

    Schools in the Los Angeles district will reopen on Tuesday, according to superintendent Alberto Carvalho.

    “Our teams have been scouring our schools, and so far, conditions are pretty good,” Carvalho said. A couple dozen schools have lost phone and internet service, and one school has been impacted by a minor mudslide.

    “It would have been reckless for us to make a different decision,” Carvalho said of the decision to close schools Monday.

    “Los Angeles was tested but we came through it and we came through it with minimal impacts, considering what we endured,” said Los Angeles City Council President Paul Krekorian.

    The Nye County School District in Nevada also canceled classes Monday, with plans to reopen Tuesday.

    Cars stranded in roads deluged with mud and water

    Once a hurricane, Hilary weakened as it made landfall Sunday in Mexico – where at least one person died – then crossed into the Golden State. The storm’s center was roughly 10 miles southeast of downtown Los Angeles around 8 p.m. local time Sunday, moving north with weakened 45-mph winds, according to the hurricane center.

    The Los Angeles Fire Department fielded more than 4,000 emergency calls on Sunday and responded to about 1,800 incidents, Chief Kristin Crowley said in a news conference on Monday. The calls included a request for help for five cars stranded in a flooded intersection of Sun Valley. One person was safely rescued and no one was injured in the Sun Valley incident, Crowley said.

    Flood water affected an underground power vault, leading to an outage for about 6,000 customers in the Beverly Grove area, with other outages reported in Hollywood, Hyde Park and Brentwood. The vast majority of city power customers remain unaffected by the storm, according to Los Angeles officials.

    As the storm barreled through, covering roadways with debris and water, roads were blocked across Southern California by Sunday night. A section of Interstate 8 in Imperial County, east of San Diego, was closed Sunday after boulders came loose from an adjoining slope and fell into the road.

    In San Bernardino County, a stretch of State Route 127 covered in floodwaters was closed, while a section of Interstate 15 was shuttered in Barstow because of downed power lines after a lightning strike, authorities said.

    Traffic is slowed as water and mud from Tropical Storm Hilary covers part of Interstate 10, between Indio and Palm Springs, California, on Monday.

    Crews across the region Sunday evening rescued people caught in the storm, including at least nine in a riverbed area in San Diego. “Crews are still looking for more people who may need help. #riverrescue,” San Diego Fire-Rescue said.

    And Ventura County firefighters searched the Santa Clara River for people trapped in the waters on Sunday night, videos show.

    The storm led to other disruptions across Southern California, with many parks, beaches and other locations closed as officials called on residents to stay indoors.

    And Hilary continued to cause damage as it moved into Nevada. In Mt. Charleston, Nevada, the storm brought significant flooding on Monday morning, washing out the roadways. Residents are sheltering in place, the power is shut off, and the Nevada National Guard is on its way to assist, according to a Facebook post from Clark County.

    West of Las Vegas, rushing water is flowing like a river down Echo Road, leaving vehicles stranded from Mary Jane Trailheads and Trail Canyon, according to the U.S. Forest Service. Emergency crews are evaluating and ask for people to stay out of the area, the service said.

    California had been preparing for difficult conditions, positioning first responders across Southern California to brace for water rescues in flood-prone areas like wildfire burn scars and deserts amid fears areas unaccustomed to rain could suddenly receive a year’s worth or more, triggering flash floods and landslides.

    Rainfall totals have been significant:

    Daily and monthly rainfall records were broken Sunday, with 1.53 inches falling in downtown Los Angeles, 1.56 inches in Long Beach and 2.95 inches in Palmdale, according to the weather service.

    At least three swift water rescues were conducted in Palm Springs, police department Lt. Gustavo Araiza told CNN.

    In Cathedral City, a desert community roughly a 110-mile drive east of Los Angeles, at least 14 people were rescued from a senior boarding care facility Monday afternoon after “a blockade” of mud trapped them inside, city spokesperson Ryan Hunt said.

    All of the people rescued are doing well, Hunt said.

    The fire department had to borrow a dozer truck from a recycling center so they could carry out the rescue, Hunt said. The department had firefighters sit in the dozer and then had those being rescued sit on top to be brought out of the structure, he added.

    Despite the “unorthodox method,” everyone stayed calm, he said.

    A motorist removes belongings from his vehicle after becoming stuck in a flooded street in Palm Desert, California, on Sunday.

    Santa Clarita, about 30 miles north of Los Angeles, experienced steady rain for about 10 hours, with the storm dropping well over four inches of rain on the valley. Parts of Sand Canyon Road could be seen falling into rushing water.

    ATTN DRIVERS: State Route 127 is now closed between Baker Blvd. in Baker (San Bernardino County) and Tecopa Hot Springs Road (Inyo County) due to flooding. @Caltrans9 maintenance crews are on scene. pic.twitter.com/fvcI9Vhss3

    — Caltrans District 9 (@Caltrans9) August 21, 2023

    As the storm continues to affect the West, officials with Oregon’s emergency management are bracing for possible flooding across portions of the state.

    “At this point, we’re concerned about the substantial rainfall and the potential for fast-moving water and flooding. Flood watches have been issued for areas of Central and Eastern Oregon,” Oregon Department of Emergency Management spokesperson Chris Crabb told CNN Monday afternoon.

    “We have reports of minor flooding currently and communities using sandbags to mitigate the impacts, but there have been no requests for state support at this point,” Crabb went on.

    According to Crabb, the office is working with county and tribal partners.

    Portions of Oregon are under a flood watch through Tuesday afternoon, according to the National Weather Service.

    “The remnants of Hurricane Hilary will bring periods of moderate to heavy rain to portions of northeastern Oregon through Tuesday,” the weather service said in a forecast message.

    Source link

    August 21, 2023
  • Customs officers seize over $380,000 worth of cocaine off bus from Mexico | CNN

    Customs officers seize over $380,000 worth of cocaine off bus from Mexico | CNN



    CNN
     — 

    US customs officers in Texas discovered nearly two dozen packages of cocaine on a commercial bus coming from Mexico.

    Field operations officers with the US Customs and Border Protection seized the “significant amount” of narcotics at the Roma International Bridge in Roma, Texas, the agency reported. Roma is along the Rio Grande in South Texas, roughly 50 miles northwest of McAllen.

    Officers came across the drugs on August 12, according to a news release Tuesday. After the bus arrived, officers conducted a canine and non-intrusive inspection.

    The examination uncovered 22 packages that contained nearly 50 pounds of cocaine, the agency said.

    The seized narcotics had a street value of more than $380,000, CBP said.

    The agency has seized more than 65,000 pounds of cocaine since October 2022, CBP data shows.

    Source link

    August 19, 2023
  • Tesla begins notifying workers who were affected by data breach | CNN Business

    Tesla begins notifying workers who were affected by data breach | CNN Business


    New York
    CNN
     — 

    Tesla has begun notifying current and former employees whose information was included in a confidential data breach in May.

    In a notice posted on the Maine Attorney General’s website on Friday, Tesla

    (TSLA)
    said an investigation had found “two former Tesla

    (TSLA)
    employees misappropriated the information in violation of Tesla

    (TSLA)
    ’s IT security and data protection policies” and that the electric automaker had since filed lawsuits against them.

    “These lawsuits resulted in the seizure of the former employees’ electronic devices that were believed to have contained the Tesla information,” Tesla said. The company added that it “also obtained court orders that prohibit the former employees from further use, access, or dissemination of the data, subject to criminal penalties.”

    Tesla said that two former employees had shared the confidential data with German newspaper Handelsblatt. The outlet assured Tesla that it won’t publish the information and that it is “legally prohibited from using it inappropriately,” according to the notice.

    Tesla emphasized that it had not detected any misuse of personal data, but has offered complimentary membership to Experian IdentityWorks’ credit monitoring and identity theft service. The membership will be one or two years, depending on the person and the specific engagement number on the letter they receive.

    The data breach affected 75,735 people, and involved Social Security numbers, names and addresses, according to Maine Attorney’s General Office.

    CNN has reached out to Tesla for comment.

    Source link

    August 19, 2023
  • Tesla cuts Model S and X prices by over 6% in China | CNN Business

    Tesla cuts Model S and X prices by over 6% in China | CNN Business


    Beijing
    Reuters
     — 

    Tesla has cut prices for its existing inventories of its premium Model S and Model X cars in China by as much as 6.9%, it said on Wednesday.

    A post from the carmaker on social media platform Weibo showed the price of the Model S cut by 6.7% to 754,900 yuan ($103,477.58) from 808,900 yuan earlier.

    The Model X now starts from 836,900 yuan, down 6.9% from 898,900 yuan earlier.

    Tesla

    (TSLA)
    on Monday said it cut prices in China for its Model Y’s long-range and performance versions starting on August 14, which triggered concerns around its profit margins.

    The moves come after sales of Tesla’s China-made vehicles fell 31% in July from June, their first month-on-month decline since December, as the automaker idled some production to prepare for a revamped Model 3 launch.

    By contrast, China’s BYD

    (BYDDF)
    increased sales from June.

    Source link

    August 16, 2023
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