ReportWire

Tag: Domestic Politics

  • Moldova’s Pro-Europe Party Claims Victory Over Russia-Backed Coalition 

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    Moldova’s ruling pro-European party claimed victory Monday in parliamentary elections that became a referendum on its efforts to pull the former Soviet republic away from Moscow and closer to the West. 

    Ahead of the ballot, President Maia Sandu said Russia had spent the equivalent of hundreds of millions of dollars to buy votes and accused the Kremlin of carrying out a massive disinformation campaign to scare voters into the arms of Moscow-backed parties. Russia has denied election interference.

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    Thomas Grove

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  • Russia’s Ambitious Plans in Africa Are Unraveling

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    Russia, not long ago a rising military force in Africa, is now struggling to maintain its footprint on the continent.

    The Kremlin’s new official guns-for-hire military force, the Africa Corps, has failed to replicate the financial success and political sway once held by Russia’s private Wagner Group mercenary outfit. And some of Wagner’s own African ventures have unraveled since 2023 when its founder, Yevgeny Prigozhin, rebelled against President Vladimir Putin and then died when an explosive device blew the wing off his plane at 28,000 feet. 

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    Benoit Faucon

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  • Opinion | The Cure for the Run on the Argentine Peso

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    Milei promised to dollarize and close the central bank. What is he waiting for?

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    Mary Anastasia O’Grady

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  • Exclusive | Why U.S.’s Trade Pact With South Korea Has Gotten Messier

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    President Trump’s trade deal with South Korea is on shaky ground, with Commerce Secretary Howard Lutnick taking a tough line in talks as some Seoul officials privately argue to allies that the White House is moving the goal posts.

    Lutnick, in recent conversations with South Korean officials, has discussed with Seoul the idea of slightly increasing the $350 billion they had previously guaranteed to the U.S. in July and suggested the final tally could get a bit closer to the $550 billion pledged by Japan, according to people familiar with the discussions, including an adviser to South Korea’s government.

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    Brian Schwartz

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  • Milei Fixed Half of Argentina’s Inflation Problem. He Needs Help With the Rest.

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    Two years ago, Argentines elected the radical libertarian Javier Milei as president with a mandate to fix the country’s chronically high inflation.

    The odds didn’t look good. Previous presidents had failed to address one of inflation’s root causes: government deficits. Without access to capital markets, Argentina often turned to the central bank to finance its deficits by printing money. Efforts to rein in spending were stymied by resistance in Congress and by the public.

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    [ad_2] Greg Ip
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  • Milei Is Counting on Trump to Bail Argentina Out of an Economic Mess

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    Argentine President Javier Milei is staking the future of his free-market overhaul on his relationship with President Trump, who stopped short of promising a bailout for Argentina but issued an unusual political endorsement of the leader in coming elections.

    “We’re going to help them,” Trump told reporters Tuesday after meeting with Milei on the sidelines of the United Nations General Assembly gathering of world leaders. “If he can continue to do the job that he’s been doing, it’s going to really be something special.” 

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    [ad_2] Ryan Dubé
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  • Kenya Uses U.S.-Funded Antiterrorism Courts for Political Crackdown

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    NAIROBI, Kenya—The Kenyan government is using special antiterrorism courts—established with U.S. money to combat al Qaeda—to threaten political dissidents with decades in prison.

    Prosecutors have charged 75 Kenyans with terrorism in recent weeks, the majority for allegedly destroying government property during street demonstrations against President William Ruto.

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    Caroline Kimeu

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  • Trump is backed further into a financial corner after losing control of his company

    Trump is backed further into a financial corner after losing control of his company

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    With Donald Trump’s legal liabilities growing and a presidential campaign to run, losing control of his company couldn’t have come at a worse time.

    After a New York judge ordered the Trump Organization to pay $364 million in penalties and barred the former president from any role in running a business in New York state for three years, Trump now finds himself backed further into a financial corner with fewer options for how to maneuver.

    “It will have such an enormous impact on the operation of his business,” said Randy Zelin, a professor of law at Cornell University and a veteran criminal defense attorney with experience in complex financial matters. “But it will also provide a strong basis for an appeal.”  

    New York Attorney General Letitia James had asked New York State Supreme Court Justice Arthur Engoron to levy a $370 million financial penalty against the Trump Organization and also to ban Trump and his children Ivanka, Donald Jr. and Eric Trump from running any company in the state of New York, where his real-estate empire has long been based.

    Engoron’s ruling barred Donald Trump Jr. and Eric Trump from being involved in running any business in the state for two years. The judge also ordered that former U.S. District Court Judge Barbara Jones, who has been serving as an independent monitor of the Trump Organization since 2022, continue in that role with expanded powers for the next three years. The ruling also ordered that an independent compliance officer be appointed within 30 days.

    “The Trump Organization shall be required to obtain prior approval — not, as things are now, subsequent review — from Judge Jones before submitting any financial disclosure to a third party, so that such disclosure may be reviewed beforehand for material misrepresentations,” the ruling read. 

    The outcome of the civil trial sat solely in Engoron’s hands, and in September, he issued a summary judgment essentially ruling in favor of James’s arguments that the Trump Organization had engaged in fraud for years by repeatedly misstating the value of assets to lenders and insurance companies. 

    The judgment is the latest in a string of legal and financial blows that the former president has faced and that have already had an impact on his presidential campaign.

    Trump has incurred $76 million in legal costs over the past two years stemming from the wide array of criminal and civil prosecutions he faces. More than $27 million of the money raised in the last six months of 2023 to support his presidential campaign has instead been used to cover his legal costs, according to campaign-finance filings.

    A report by Bloomberg earlier this week suggested that Trump may face a cash crunch caused by his ballooning legal costs as early as this summer, just as the presidential race will be heating up.

    Last month, a federal jury ordered Trump to pay $83.3 million in damages for defaming the writer E. Jean Carroll, whom he had attacked online after she had accused him of raping her in a department-store dressing room in the 1990s. He had earlier been hit with a $5 million verdict in a state case on similar charges.

    Trump has vowed to appeal the verdicts and denied raping Carroll, but in order to appeal, he will be required to put up bonds for the full award amounts. That means he would need to either get a bank to back him or to pledge collateral — like a real estate asset — to secure the bond.

    But without full control of his real-estate empire, Trump will likely find it harder to line up financing or use his assets as freely as before. 

    Under the terms of Engoron’s ruling, Trump will no longer be able to make any moves involving assets held by the Trump Organization without the approval of the court-appointed monitor.

    Even pledging his assets as collateral for the bond that he would be required to post in order to file an appeal would be complicated by the imposition of a monitor. 

     “When you lose control of your company, you lose control of who is going to be paid and how much they will be paid. All the money will, first and foremost, be used to operate the business, and how much goes to Trump and his children becomes a secondary concern,” Zelin said.

    Add to that the mounting legal costs for multiple criminal cases being brought against him — on charges related to Jan. 6 as well as charges of mishandling classified documents, election fraud, racketeering and illegally paying hush money to women who claimed they’d had affairs with him — and Trump finds himself in a worsening financial bind.

    So far, the former president has managed to cover many of his legal costs through donations from his political supporters, but that means that money won’t be available to fund his campaign for president. At the end of the year, President Joe Biden’s re-election campaign had about $46 million cash on hand, while Trump’s campaign had $33 million, Federal Election Commission filings show. Some $50 million held by Trump’s political action committees has already been used to cover his legal bills. 

    Regarding the properties held by the Trump Organization, while Trump has been able to refinance many of the loans underlying his bigger real-estate holdings, pushing their maturity dates back several years, he still has a stake in some high-profile buildings that have debt coming due in the next few years.

    With the court-appointed monitor part of the equation, it might now be more difficult for Trump to secure new debt in order to refinance those buildings, and that could even technically trigger defaults, depending on how the loan covenants were written.

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  • Small businesses are paying 100%+ of profits to Uncle Sam after tax-law change

    Small businesses are paying 100%+ of profits to Uncle Sam after tax-law change

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    Small businesses in sectors like software and manufacturing are panicking over the expiration of a critical tax deduction that they say could lead to mass layoffs and business closures, unless Congress acts quickly to amend the law.

    “This is a life-and-death scenario for small software companies,” Michelle Hansen, co-founder of the geocoding company Geocodio, told MarketWatch.

    The tax change that Hansen and other software executives are taking issue with was signed into law by President Trump in 2017, as part of a larger tax overhaul that slashed the top corporate tax rate from 35% to 21%.

    But in order to satisfy Senate budget rules and pass the law with only Republican votes, the bill could not increase the budget deficit over a 10-year window.

    So lawmakers included a provision that, beginning in 2022, drastically reduced how much research-and-development spending a business could deduct from their annual revenue to determine taxable income.

    The change penalizes certain industries like software and information technology — where engineer salaries are often classified as R&D expenses — as well as manufacturing and pharmaceuticals
    IHE.

    IntervalZero CEO Jeff Hibbard, whose Massachusetts-based company designs and sells software for installation on precision machines like semiconductor manufacturers, told MarketWatch that he has had to tap into company savings for the past several years in order to avoid laying off engineers.

    He said that his firm brings in about $9 million in revenue annually with expenses of $8 million — but 60% of those expenses come in the form of engineer salaries, which can only be deducted from taxable income over a five-year period because the IRS treats it as R&D.

    He said that after taxes consumed all his profits in 2022, he had to pay an additional $800,000 to Uncle Sam, and an additional $600,000 for the 2023 tax year.

    “We’ve had to do a hiring freeze and postpone projects” in a cutthroat industry where technology progresses rapidly, Hibbard said. “We’ve been in existence for 15 years. For the first 14, we always hired additional people. Now we have a hiring and salary freeze.”

    The House of Representatives voted last week 357-70 to restore full expensing for R&D as part of a $79 billion tax package that boosted the child tax credit and extended other business tax breaks.

    The bill now heads to the Senate, which already has its hands full debating immigration and national-security issues, and analysts say election-year politics could thwart its passage in 2024.

    Henrietta Treyz, director of economic-policy research at Veda Partners, gave just a 10% chance of the bill passing the Senate in a recent note to clients.

    “This year’s effort to pass a tax package has been more robust than the effort we saw in 2022 and 2023,” she wrote. Treyz added, however, that “the competing need to pass border reform and Ukraine/Israel aid, and general dysfunction in Washington keep us pessimistic that we’ll see a bipartisan economic-stimulus package come out of Congress this year.”

     On top of Republicans not wanting to give President Joe Biden a victory that would provide tax relief for businesses and families, Senate Republicans could decide to drag their feet on the bill in the hope that they’ll retake the chamber next year and can play a bigger role in the process, according to Owen Tedford, policy analyst at Beacon Policy Advisors.

    “The critical member to watch is Senator Mike Crapo [of Idaho], the top Republican on the Senate Finance Committee,” Tedford wrote. “Crapo has not outright opposed the bill but has raised policy concerns and has expressed a desire to have a chance to amend it.” 

    Political considerations may be dictating the bill’s fate in Washington — but some business owners fear they don’t have the wherewithal to wait until next year for the problem to be fixed.

    Benjamin Bengfort, co-founder and CEO of Iowa-based software firm Rotational Labs, told MarketWatch that he had to lay off workers last year after his 2022 tax bill rose by 438%.

    He noted that even demand for his products has taken a hit because of the change in the law, because his services can count as an R&D expense for his customers, too.

    “So it is [between] a rock and a hard place for us, no matter how you look at it,” Bengfort said. “This is an existential threat for software engineering companies.”

    Andrew Keshner contributed.

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  • How to navigate market risk from interest rates, the economy and politics in 2024

    How to navigate market risk from interest rates, the economy and politics in 2024

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    As the U.S. Federal Reserve’s three-year reign in the headlines potentially comes to an end, an analysis of this year’s market themes can offer valuable insights for predicting trends and ensuring attractive returns in 2024.

    Beyond the central bank’s actions, pivotal factors shaping the investment landscape this year include fiscal policies, election outcomes, interest rates and earnings prospects.

    Throughout 2023, a prominent theme emerged: that equities are influenced by factors beyond monetary policy. That trend is likely to persist. 

    A decline in interest rates could significantly increase the relative valuations of equities while simultaneously reducing interest expenses, potentially transforming market dynamics. Contrary to consensus estimates, 2023 brought a more robust earnings rebound, leaving analysts optimistic about 2024.

    The 2024 U.S. presidential election, meanwhile, introduces a new element of uncertainty with the potential to cast a shadow over the market during much of the coming year. 

    Choppy trading, modest earnings growth

    Anticipating a choppy first half of the year due to sluggish economic growth, we see a better opportunity for cyclicals and small-cap stocks to rebound in the latter part of the year. As uncertainty around the election and recession fears dissipate, a broad rally that includes previously ignored cyclicals and small-caps should help propel the S&P 500
    SPX
    higher. 

    Broader macroeconomic conditions support mid-single-digit growth in earnings per share throughout 2024. Factors such as moderate economic expansion, controlled inflation and stable interest rates are expected to provide a conducive environment for companies, enabling them to sustain and potentially improve their earnings performance. We estimate EPS growth of 6.5%. This projected growth aligns with the broader market sentiment indicating a steady upward trajectory in earnings for the upcoming year, fostering investor confidence and supporting valuation expectations across various sectors.

    If the economy has not been in recession at the time of the first rate cut but enters one within a year, the Dow enters a bear market.

    When it comes to U.S. stock-market performance around rate cuts, the phase of the economic cycle matters. When there has been no recession, lower rates have juiced the markets, with the Dow Jones Industrial Average
    DJIA
    rallying by an average of 23.8% one year later.

    If the economy has not been in recession at the time of the first cut but enters one within a year, the Dow has entered a bear market every time, declining by an average of 4.9% one year later. Our base case is a soft landing, but history shows how critical avoiding recession is for the bull market as the Fed prepares to ease policy.   

    Big on small-caps

    This past year has posed a hurdle for small-cap stocks due to the absence of a driving force. These stocks typically perform better as the economy emerges from a recession. While they are currently undervalued, their earnings growth has been notably lacking. If concerns about a recession diminish, a normal yield curve could serve as a potential catalyst for small-cap stocks.

    Growth vs. value

    The ongoing outperformance of megacap growth stocks that we saw in 2023 might hinge on their ability to sustain superior earnings growth, validating their current valuations. Defensive sectors in the value category, meanwhile, are notably oversold and might exhibit strong performance, particularly toward the latter part of the first quarter. Should concerns about a recession dissipate, cyclical sectors within the value category could outperform, particularly if broader market conditions turn favorable in the latter half of the year.

    Handling uncertainty

    The Fed’s enduring influence regarding the prospect of a soft landing in 2024 remains a pivotal point in the market’s focus. Considering the themes of the past year and the multifaceted influences on equities beyond monetary policy, investors are advised to navigate through uncertainties stemming from unintended fiscal shifts, upcoming elections and the impact of fluctuating interest rates. While a potentially choppy start to the year is anticipated, it could create opportunities for cyclical and small-cap stocks later in the year.

    Ed Clissold is chief of U.S. strategies at Ned Davis Research.

    Also read: Mortgage rates dip after Fed meeting. Freddie Mac expects rates to decline more.

    More: After the Fed’s comments, grab these CD rates while you still can

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  • Trump says Powell is being ‘political’ with interest rates

    Trump says Powell is being ‘political’ with interest rates

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    Former President Donald Trump on Friday criticized Federal Reserve Chair Jerome Powell and said he’s playing politics with interest-rate policy.

    “It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected,” Trump said, in an interview on the Fox Business Network.

    “I think he’s political,” added Trump, the likely 2024 Republican nominee for president.

    Asked if he would reappoint Powell to a third four-year term, Trump replied “no.”

    Trump said he has a couple of choices in mind to replace Powell, but wouldn’t say who.

    Trump said he thinks lowering interest rates would lead to massive inflation. The conflict in the Middle East is likely to lead to “big inflation” from a spike in oil prices, he added.

    Trump said he thinks lowering interest rates would lead to massive inflation. The conflict in the Middle East is likely to lead to “big inflation” from a spike in oil prices, he added.

    Powell “is not going to be able to do anything,” Trump said.

    On Wednesday, Powell said he wasn’t giving a potential third term any thought. Powell’s current term expires in early 2026.

    Speculation on a third term “is not something I’m focused on,” Powell said.

    “We’re focused on doing our jobs. This year is going to be a highly consequential year for the Fed and monetary policy. We’re, all of us, very buckled down, focused on doing our jobs,” Powell said.

    Analysts say that the Fed will be criticized by both parties in the election year.

    On Sunday, Powell will appear on the CBS News program “60 Minutes” and will likely face more questions about the election.

    Earlier this week, top Democrats on the Senate Banking Committee urged the Fed to cut rates quickly, saying they were too high and hurting the housing market.

    “Keeping interest rates high will be detrimental to American workers and their families and do little to bring down prices or promote moderate economic growth,” said Sen. Sherrod Brown, a Democrat from Ohio, and the chairman of the Banking Committee, in a letter to Powell prior to Wednesday’s Fed meeting.

    At the meeting on Wednesday, the Fed kept its benchmark interest rate unchanged in a range of 5.25%-5.5%.

    Asked about the letter from the Democrats on Wednesday, Powell said Congress has given the Fed the job of stable prices. High inflation hurts people at the lower end of the income spectrum, he added.

    “It’s what society has asked us to do is to get inflation down. The tools we use to do it are interest rates,” he said.

    The Fed has penciled in three rate cuts for 2024. Powell said that a cut at the Fed’s next meeting in March was unlikely. He said the Fed wants to see more good inflation reports so it can have greater confidence that inflation is coming down to the 2% target.

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  • Why Donald Trump is unlikely to get his wish for a 2024 U.S. stock-market crash

    Why Donald Trump is unlikely to get his wish for a 2024 U.S. stock-market crash

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    Donald Trump is unlikely to get his wish that a U.S. stock-market crash occurs this year.

    I’m referring to the former U.S. president’s comments last week that he hopes the market crashes in 2024, since if he is elected in November and takes office a year from now, he doesn’t want to be another Herbert Hoover. Hoover was President when the stock market crashed in 1929.

    The stock market did plunge in two of the last four presidential-election years, so it’s understandable why one would worry that 2024 could see a repeat. In 2008, in the middle of the Global Financial Crisis, the S&P 500
    SPX
    lost 38.5% for the year. In 2020, as the economy ground to a halt because of the COVID-19 pandemic, the S&P 500 lost 34% in little more than a month’s time.

    It’s possible that a crash could occur at any time, of course, so a crash this year can’t be ruled out. Nevertheless, the odds of one occurring this year are significantly below average. That’s according to the latest “State Street US Froth Forecasts,” which are derived from research on crashes conducted by Robin Greenwood, Professor of Banking and Finance at Harvard Business School.

    In that research, Greenwood and his co-authors found that it’s possible to identify when there is an elevated probability of a crash. In an interview, Greenwood said that “crash probabilities are low” right now, not only for the market as a whole but “across the board” for individual market sectors as well.

    Greenwood’s model is based on a number of factors, such as performance over the trailing two-year period, volatility, share turnover, IPO activity and the price path of the trailing two-year runup. For example, he and his fellow researchers found that when an industry beats the market by 150 or more percentage points over a two-year period, there’s an 80% probability that it will crash — which they define as a drop of at least 40% over the subsequent two years. As you can see from the accompanying chart, State Street is reporting low crash probabilities for all sectors — in each case well below the average forecasted crash probabilities of the past five years.

    These probabilities don’t mean that stocks will have a great year in 2024. A new bear market could begin this year without the decline satisfying the researchers’ definition of a crash.

    Nevertheless, the takeaway from the State Street US Froth Forecasts is that there are bigger things to worry about this year than the possibility of a crash.

    Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com

    More: Trump says he hopes market crashes in 2024 under Biden: ‘I don’t want to be Herbert Hoover

    Also read: Iowa caucuses are make-or-break for Donald Trump

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  • SEC weighing ‘additional measures’ after hacked post on bitcoin ETF approval

    SEC weighing ‘additional measures’ after hacked post on bitcoin ETF approval

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    The Securities and Exchange Commission on Friday said that a social-media post on X falsely stating that it had approved spot bitcoin exchange-traded funds was created after an “unauthorized party” obtained control over the phone number connected with the agency’s account on the platform.

    The markets regulator said its staff would “continue to assess whether additional remedial measures are warranted” in the wake of the breach, which occurred Tuesday and raised questions about cybersecurity at both the agency and the social-media platform, formerly known as Twitter.

    The agency said it was coordinating with law enforcement on the matter, including with the FBI and the Department of Homeland Security.

    “Commission staff are still assessing the impacts of this incident on the agency, investors, and the marketplace but recognize that those impacts include concerns about the security of the SEC’s social media accounts,” the SEC said in a statement.

    The confusion began on Tuesday afternoon, when the hacked post appeared on the SEC’s X account.

    “Today the SEC grants approval for #Bitcoin ETFs for listing on registered national securities exchanges,” the post read. “The approved Bitcoin ETFs will be subject to ongoing surveillance and compliance measures to ensure continued investor protection.”

    A second post appeared two minutes later that simply read “$BTC,” the SEC noted in its statement. The unauthorized user soon deleted that second post, but also liked two other posts by non-SEC accounts, according to the agency. The price of bitcoin
    BTCUSD,
    -0.71%

    rose sharply in the wake of the posts, before soon pulling back.

    In response to the hack, SEC staff posted on the official X account of SEC Chair Gary Gensler announcing that the agency’s main account had been compromised, and that it had not yet approved any spot bitcoin exchange-traded products. Staff then deleted the initial unauthorized post, un-liked the liked posts and used the official SEC account to make a new post clarifying the situation, the agency said Friday.

    The SEC also said that it had reached out to X for assistance Tuesday in the wake of the incident, and that agency staff believe the unauthorized access to the SEC’s account was “terminated” later in the day.

    “While SEC staff is still assessing the scope of the incident, there is currently no evidence that the unauthorized party gained access to SEC systems, data, devices, or other social media accounts,” the agency said.

    The following day, the SEC announced that it had, in fact, approved the listing and trading of spot bitcoin ETFs.

    Wednesday’s move marked a breakthrough for the crypto industry, which for years has tried to get such ETFs off the ground in hopes of drawing more traditional investors to the digital-asset space.

    Bitcoin was down 7.6% over a 24-period as of Friday evening.

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  • Bitcoin ETFs finally approved after a chaotic, ‘embarrassing’ 24 hours for SEC

    Bitcoin ETFs finally approved after a chaotic, ‘embarrassing’ 24 hours for SEC

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    On Wednesday, the U.S. Securities and Exchange Commission for the first time greenlighted several exchange-traded funds investing directly in bitcoin.

    But the 24 hours leading up to that approval were chaotic, to say the least.

    The SEC approved the launch of 11 bitcoin
    BTCUSD,
    +0.09%

    ETFs, according to a filing posted on the regulatory agency’s website. The ETFs are due to start trading on Thursday.

    On Tuesday, however, the SEC’s official account on X, formerly known as Twitter, published what the agency described as an “unauthorized” post indicating that it had approved the spot bitcoin ETFs. In reality, the regulator had not approved any such ETFs as of Tuesday and its X account had been “compromised,” SEC Chair Gary Gensler said on the social-media platform. The SEC subsequently deleted the unauthorized post.

    The agency found “there was unauthorized access to and activity on” the its X account by “an unknown party,” an SEC spokesperson said on Tuesday, adding that the “unauthorized access has been terminated” and that the SEC would work with law enforcement to investigate the matter.

    Bitcoin’s price briefly shot 2% higher after the unauthorized tweet went out on Tuesday before soon pulling back.

    Then on Wednesday, shortly before the U.S. stock market closed for the day, the SEC posted an actual approval order of bitcoin ETFs on its website — but the link was soon broken, leading to an “error 404” page. The same filing was later reposted by the SEC. 

    It is unclear why the first link was broken. A SEC spokesperson did not respond to an email seeking comment on the matter.

    The events of the past 24 hours have proven “a bit embarrassing” for the SEC, especially as the agency has stressed that cryptocurrencies are exceptionally risky and vulnerable to market manipulation, according to Greg Magadini, director of derivatives at Amberdata. 

    Despite those warnings, Magadini said he doesn’t expect investors to be deterred from investing in the bitcoin ETFs.

    Bitcoin has actually seen lower volatility on Tuesday and Wednesday than options traders had priced in, Magadini said. The crypto was up about 0.4% over the past 24 hours to around $46,400 on Wednesday evening, according to CoinDesk data.

    Investors have been pricing in $1 to $2 billion of initial flows into the bitcoin ETFs.

    Read: Bitcoin in spotlight as SEC approves new ETFs, ether rallies. Here’s why.

    Steven Lubka, head of private clients and family offices at Swan Bitcoin, echoed Magadini’s point, noting that the hiccups on the way to SEC approval are unlikely to impact investor interest in the funds.

    “Ultimately, the SEC is not the one that launches the ETFs,” Lubka said in a call. “If anything, it shows how much attention is on these ETF products.”

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  • Supreme Court to decide if Trump can be kept off 2024 election ballots

    Supreme Court to decide if Trump can be kept off 2024 election ballots

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    WASHINGTON — The Supreme Court said Friday it will decide whether former President Donald Trump can be kept off the ballot because of his efforts to overturn his 2020 election loss, inserting the court squarely in the 2024 presidential campaign.

    The justices acknowledged the need to reach a decision quickly, as voters will soon begin casting presidential-primary ballots across the country. The court agreed to take up a case from Colorado stemming from Trump’s role in the events that culminated in the Jan. 6, 2021, attack on the U.S. Capitol.

    Arguments will be held in early February.

    The court will be considering for the first time the meaning and reach of a provision of the 14th Amendment barring some people who “engaged in insurrection” from holding public office. The amendment was adopted in 1868, following the Civil War. It has been so rarely used that the nation’s highest court had no previous occasion to interpret it.

    Colorado’s Supreme Court, by a 4-3 vote, ruled last month that Trump should not be on the Republican primary ballot. The decision was the first time the 14th Amendment was used to bar a presidential contender from the ballot.

    Trump is separately appealing to state court a ruling by Maine’s Democratic secretary of state, Shenna Bellows, that he was ineligible to appear on that state’s ballot over his role in the Capitol attack. Both the Colorado Supreme Court and the Maine secretary of state’s rulings are on hold until the appeals play out.

    Three of the nine Supreme Court justices were appointed by Trump, though they have repeatedly ruled against him in 2020 election-related lawsuits, as well as his efforts to keep documents related to Jan. 6 and prevent his tax returns from being turned over to congressional committees.

    At the same time, Justices Amy Coney Barrett, Neil Gorsuch and Brett Kavanaugh have been in the majority of conservative-driven decisions that overturned the five-decade-old constitutional right to abortion, expanded gun rights and struck down affirmative action in college admissions.

    Some Democratic lawmakers have called on another conservative justice, Clarence Thomas, to step aside from the case because of his wife’s support for Trump’s effort to overturn the results of the election, which he lost to Democrat Joe Biden. Thomas is unlikely to agree. He has recused himself from only one other case related to the 2020 election, involving former law clerk John Eastman, and so far the people trying to disqualify Trump haven’t asked Thomas to recuse.

    The 4-3 Colorado decision cites a ruling by Gorsuch when he was a federal judge in that state. That Gorsuch decision upheld Colorado’s move to strike a naturalized citizen from the state’s presidential ballot because he was born in Guyana and didn’t meet the constitutional requirements to run for office. The court found that Trump likewise doesn’t meet the qualifications due to his role in the U.S. Capitol attack on Jan. 6, 2021. That day, the Republican president had held a rally outside the White House and exhorted his supporters to “fight like hell” before they walked to the Capitol.

    The two-sentence provision in Section 3 of the 14th Amendment states that anyone who swore an oath to uphold the constitution and then “engaged in insurrection” against it is no longer eligible for state or federal office. After Congress passed an amnesty for most of the former confederates the measure targeted in 1872, the provision fell into disuse until dozens of suits were filed to keep Trump off the ballot this year. Only the one in Colorado was successful.

    Trump had asked the court to overturn the Colorado ruling without even hearing arguments. “The Colorado Supreme Court decision would unconstitutionally disenfranchise millions of voters in Colorado and likely be used as a template to disenfranchise tens of millions of voters nationwide,” Trump’s lawyers wrote.

    They argue that Trump should win on many grounds, including that the events of Jan. 6 did not constitute an insurrection. Even if it did, they wrote, Trump himself had not engaged in insurrection. They also contend that the insurrection clause does not apply to the president and that Congress must act, not individual states.

    Critics of the former president who sued in Colorado agreed that the justices should step in now and resolve the issue, as do many election law experts.

    “This case is of utmost national importance. And given the upcoming presidential-primary schedule, there is no time to wait for the issues to percolate further. The Court should resolve this case on an expedited timetable, so that voters in Colorado and elsewhere will know whether Trump is indeed constitutionally ineligible when they cast their primary ballots,” lawyers for the Colorado plaintiffs told the Supreme Court.

    The issue of whether Trump can be on the ballot is not the only matter related to the former president or Jan. 6 that has reached the high court. The justices last month declined a request from special counsel Jack Smith to swiftly take up and rule on Trump’s claims that he is immune from prosecution in a case charging him with plotting to overturn the 2020 presidential election, though the issue could be back before the court soon depending on the ruling of a Washington-based appeals court.

    And the court has said that it intends to hear an appeal that could upend hundreds of charges stemming from the Capitol riot, including against Trump.

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  • When Colorado removed Trump from the ballot, a Supreme Court showdown looked likely. Maine removed all doubt.

    When Colorado removed Trump from the ballot, a Supreme Court showdown looked likely. Maine removed all doubt.

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    DENVER (AP) — First, Colorado’s Supreme Court ruled that former President Donald Trump wasn’t eligible to run for his old job in that state. Then, Maine’s secretary of state ruled the same for her state.

    Both decisions are historic. The Colorado court was the first court to apply to a presidential candidate a rarely used constitutional ban against those who “engaged in insurrection.” Maine’s secretary of state was the first top election official to unilaterally strike a presidential candidate from the ballot under that provision.

    What’s next? Can Trump be put back on the ballot?

    Both decisions are on hold while the legal process plays out. That means that Trump remains on the ballot in Colorado and Maine and that his political fate is now in the hands of the U.S. Supreme Court.

    The Maine ruling will likely never take effect on its own. Its central impact is increasing pressure on the nation’s highest court to state clearly whether Trump remains eligible to run for president after the Jan. 6, 2021, attack on the U.S. Capitol.

    What’s the legal issue that could keep Trump off the ballot?

    After the Civil War, the U.S. ratified the 14th Amendment to guarantee rights to former slaves and more. It also included a two-sentence clause called Section 3, designed to keep former Confederates from regaining government power after the war.

    Section 3 of the 14th Amendment to the U.S. Constitution doesn’t require a criminal conviction to take effect.

    The measure reads: “No person shall be a Senator or Representative in Congress, or elector of President and Vice-President, or hold any office, civil or military, under the United States, or under any State, who, having previously taken an oath, as a member of Congress, or as an officer of the United States, or as a member of any State legislature, or as an executive or judicial officer of any State, to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same, or given aid or comfort to the enemies thereof. But Congress may by a vote of two-thirds of each House, remove such disability.”

    Congress did remove that disability from most Confederates in 1872, and the provision fell into disuse. But it was rediscovered after Jan. 6.

    See: Nikki Haley was asked by N.H. voter to name Civil War cause. Slavery was absent from her answer.

    How does this apply to former president Trump exactly?

    Trump is already being prosecuted for the attempt to overturn his 2020 loss that culminated with Jan. 6, but Section 3 doesn’t require a criminal conviction to take effect. Dozens of lawsuits have been filed to disqualify Trump, claiming he engaged in insurrection on Jan. 6 and is no longer qualified to run for office.

    All the suits failed until the Colorado ruling. And dozens of secretaries of state have been asked to remove him from the ballot. All said they didn’t have the authority to do so without a court order — until Maine Secretary of State Shenna Bellows’s decision.

    See: As Colorado court bars Trump from ballot, poll finds 62% of GOP voters would want him as nominee even with more legal woes

    Also: Police investigating ‘incidents’ against Colorado justices after Trump removed from state’s ballot

    The Supreme Court has never ruled on Section 3. It’s likely to do so in considering appeals of the Colorado decision — the state Republican Party has already appealed, and Trump is expected to file his own shortly.

    Bellows’s ruling cannot be appealed straight to the U.S. Supreme Court — it has to be appealed up the judicial chain first, starting with a trial court in Maine.

    The Maine decision does force the high court’s hand, though. It was already highly likely the justices would hear the Colorado case, but Maine removes any doubt.

    Trump lost Colorado in 2020, and he doesn’t need to win it again to garner an Electoral College majority next year. But he won one of Maine’s four Electoral College votes in 2020 by winning the state’s 2nd Congressional District, so Bellows’s decision would have a direct impact on his odds next November.

    Until the high court rules, any state could adopt its own standard on whether Trump, or anyone else, can be on the ballot. That’s the sort of legal chaos the court is supposed to prevent.

    What is Trump’s argument?

    Trump’s lawyers have several arguments against the push to disqualify him. First, it’s not clear Section 3 applies to the president — an early draft mentioned the office, but it was taken out, and the language “an officer of the United States” elsewhere in the Constitution doesn’t mean the president, they contend.

    Second, even if it does apply to the presidency, they say, this is a “political” question best decided by voters, not unelected judges. Third, if judges do want to get involved, the lawyers assert, they’re violating Trump’s rights to a fair legal procedure by flatly ruling he’s ineligible without some sort of fact-finding process like a lengthy criminal trial. Fourth, they argue, Jan. 6 wasn’t an insurrection under the meaning of Section 3 — it was more like a riot. Finally, even if it was an insurrection, they say, Trump wasn’t involved in it — he was merely using his free speech rights.

    Of course, the lawyers who want to disqualify Trump have arguments, too.

    The main one is that the case is actually very simple: Jan. 6 was an insurrection, Trump incited it, and he’s disqualified.

    Why has this process taken so long?

    The attack of Jan. 6, 2021, occurred nearly three years ago, but the challenges weren’t “ripe,” to use the legal term, until Trump petitioned to get onto state ballots this fall.

    But the length of time also gets at another issue — no one has really wanted to rule on the merits of the case. Most judges have dismissed the lawsuits because of technical issues, including that courts don’t have the authority to tell parties whom to put on their primary ballots. Secretaries of state have dodged, too, usually telling those who ask them to ban Trump that they don’t have the authority to do so unless ordered by a court.

    No one can dodge anymore. Legal experts have cautioned that, if the Supreme Court doesn’t clearly resolve the issue, it could lead to chaos in November — or in January 2025, if Trump wins the election. Imagine, they say, if the high court ducks the issue or says it’s not a decision for the courts to make, and Democrats win a narrow majority in Congress. Would they seat Trump or declare he’s ineligible under Section 3?

    Why was this action taken in Maine?

    Maine has an unusual process in which a secretary of state is required to hold a public hearing on challenges to politicians’ spots on the ballot and then issue a ruling. Multiple groups of Maine voters, including a bipartisan clutch of former state lawmakers, filed such a challenge, triggering Bellows’s decision.

    Bellows is a Democrat and the former head of the Maine chapter of the American Civil Liberties Union. Trump’s attorneys asked her to recuse herself from the case, citing social-media posts calling Jan. 6 an “insurrection” and bemoaning Trump’s acquittal in his impeachment trial over the attack.

    She refused, saying she wasn’t ruling based on personal opinions. But the precedent she sets is notable, critics say. In theory, election officials in every state could decide a candidate is ineligible based on a novel legal theory about Section 3 and end their candidacies.

    Conservatives argue that Section 3 could apply to Vice President Kamala Harris, for example — it was used to block from office even those who donated small sums to individual Confederates. Couldn’t it be used against Harris, they say, because she raised money for those arrested in the unrest after the murder of George Floyd by Minneapolis police in 2020?

    Is this a partisan issue?

    Bellows is a Democrat, and all the justices on the Colorado Supreme Court were appointed by Democrats. Six of the 9 U.S. Supreme Court justices were appointed by Republicans, three by Trump himself.

    But courts don’t always split on predictable partisan lines. The Colorado ruling was 4-3 — so three Democratic appointees disagreed with barring Trump. Several prominent legal conservatives have championed the use of Section 3 against the former president.

    Now we’ll see how the high court handles it.

    Read on:

    Trump’s name can appear on ballot in Michigan, says state’s top court

    Georgia election workers sue Rudy Giuliani again, seek to bar him from repeating lies about them

    Trump’s Republican rivals rally to his defense after Colorado ballot ruling

    Supreme Court to hear case that could undermine obstruction charges against hundreds of Jan. 6 defendants

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  • Maine bars Trump from presidential primary ballot, citing insurrection clause

    Maine bars Trump from presidential primary ballot, citing insurrection clause

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    PORTLAND, Maine — Maine’s Democratic secretary of state on Thursday removed former President Donald Trump from the state’s presidential primary ballot under the Constitution’s insurrection clause, becoming the first election official to take action unilaterally as the U.S. Supreme Court is poised to decide whether Trump remains eligible to return to the White House.

    The decision by Secretary of State Shenna Bellows follows a ruling earlier this month by the Colorado Supreme Court that booted Trump from the ballot there under Section 3 of the 14th Amendment. That decision has been stayed until the U.S. Supreme Court decides whether Trump is barred by the Civil War-era provision, which prohibits those who “engaged in insurrection” from holding office.

    The Trump campaign said it would appeal Bellows’ decision to Maine’s state courts, and Bellows suspended her ruling until that court system rules on the case. In the end, it is likely that the nation’s highest court will have the final say on whether Trump appears on the ballot in Maine and in the other states.

    Bellows found that Trump could no longer run for his prior job because his role in the Jan. 6, 2021, attack on the U.S. Capitol violated Section 3, which bans from office those who “engaged in insurrection.” Bellows made the ruling after some state residents, including a bipartisan group of former lawmakers, challenged Trump’s position on the ballot.

    “I do not reach this conclusion lightly,” Bellows wrote in her 34-page decision. “I am mindful that no Secretary of State has ever deprived a presidential candidate of ballot access based on Section 3 of the Fourteenth Amendment. I am also mindful, however, that no presidential candidate has ever before engaged in insurrection.”

    The Trump campaign immediately slammed the ruling. “We are witnessing, in real-time, the attempted theft of an election and the disenfranchisement of the American voter,” campaign spokesman Steven Cheung said in a statement.

    Legal experts said that Thursday’s ruling demonstrates the need for the nation’s highest court, which has never ruled on Section 3, to clarify what states can do.

    “It is clear that these decisions are going to keep popping up, and inconsistent decisions reached (like the many states keeping Trump on the ballot over challenges) until there is final and decisive guidance from the U.S. Supreme Court,” Rick Hasen, a law professor at the University of California-Los Angeles, wrote in response to the Maine decision. “It seems a certainty that SCOTUS will have to address the merits sooner or later.”

    While Maine has just four electoral votes, it’s one of two states to split them. Trump won one of Maine’s electors in 2020, so having him off the ballot there, should he emerge as the Republican general election candidate, could have outsized implications in a race that is expected to be narrowly decided.

    That’s in contrast to Colorado, which Trump lost by 13 percentage points in 2020 and where he wasn’t expected to compete in November if he wins the Republican presidential nomination.

    In her decision, Bellows acknowledged that the U.S. Supreme Court will probably have the final word but said it was important she did her official duty.

    That won her praise from the former state lawmakers who filed one of the petitions forcing her to consider the case.

    “Secretary Bellows showed great courage in her ruling, and we look forward to helping her defend her judicious and correct decision in court. No elected official is above the law or our constitution, and today’s ruling reaffirms this most important of American principles,” Republican Kimberly Rosen, independent Thomas Saviello and Democrat Ethan Strimling said in a statement.

    But other Republicans in the state were outraged.

    “This is a sham decision that mimics Third World dictatorships,” Maine’s House Republican leader, Billy Bob Faulkingham, said in a statement. “It will not stand legal scrutiny. People have a right to choose their leaders devoid of mindless decisions by partisan hacks.”

    The Trump campaign on Tuesday requested that Bellows disqualify herself from the case because she’d previously tweeted that Jan. 6 was an “insurrection” and bemoaned that Trump was acquitted in his impeachment trial in the U.S. Senate after the capitol attack. She refused to step aside.

    “My decision was based exclusively on the record presented to me at the hearing and was in no way influenced by my political affiliation or personal views about the events of Jan. 6, 2021,” Bellows told the Associated Press Thursday night.

    Bellows is a former head of the Maine chapter of the American Civil Liberties Union. All seven of the justices of the Colorado Supreme Court, which split 4-3 on whether to become the first court in history to declare a presidential candidate ineligible under Section 3, were appointed by Democrats. Two Washington, D.C.-based liberal groups have launched the most serious prior challenges to Trump, in Colorado and a handful of other states.

    That’s led Trump to contend the dozens of lawsuits nationwide seeking to remove him from the ballot under Section 3 are a Democratic plot to end his campaign. But some of the most prominent advocates have been conservative legal theorists who argue that the text of the Constitution makes the former president ineligible to run again, just as if he failed to clear the document’s age threshold — 35 years old — for the office.

    Likewise, until Bellows’ decision, every top state election official, whether Democrat or Republican, had rejected requests to bar Trump from the ballot, saying they didn’t have the power to remove him unless ordered to do so by a court.

    The timing on the U.S. Supreme Court’s decision is unclear, but both sides want it fast. Colorado’s Republican Party appealed the Colorado high court decision on Wednesday, urging an expedited schedule, and Trump is also expected to file an appeal within the week. The petitioners in the Colorado case on Thursday urged the nation’s highest court to adopt an even faster schedule so it could rule before March 5, known as Super Tuesday, when 16 states, including Colorado and Maine, are scheduled to vote in the Republican presidential nominating process.

    The high court needs to formally accept the case first, but legal experts consider that a certainty. The Section 3 cases seem tailor-made for the Supreme Court, addressing an area of U.S. governance where there’s scant judicial guidance.

    The clause was added in 1868 to keep defeated Confederates from returning to their former positions of power in local and federal government. It prohibits anyone who broke an oath to “support” the Constitution from holding office. The provision was used to bar a wide range of ex-Confederates from positions ranging from local sheriff to Congress, but fell into disuse after an 1872 congressional amnesty for most former Confederates.

    Legal historians believe the only time the provision was used in the 20th Century was in 1919, when it was cited to deny a House seat to a socialist who had opposed U.S. involvement in World War I. But since the Jan. 6 attack, it has been revived.

    Last year, it was cited by a court to remove a rural New Mexico County Commissioner who had entered the Capitol on Jan. 6. One liberal group tried to remove Republican Reps. Madison Cawthorn and Marjorie Taylor Greene from the 2022 ballot under the provision, but Cawthorn lost his primary so his case was thrown out, and a judge ruled for Greene.

    Some critics of the movement to bar Trump warn that the provision could be weaponized in unexpected ways.

    They note that conservatives could argue, for example, that Vice President Kamala Harris is likewise barred from office because she raised bail funds for people arrested during the unrest following George Floyd’s 2020 murder at the hands of Minneapolis police.

    The plaintiffs in Colorado presented historical evidence that even the donation of small sums to money to those seeking to join the Confederacy was grounds for being barred by Section 3. Why, critics have asked, wouldn’t that apply to Democrats like Harris today?

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  • Colorado Supreme Court bars Trump from the state’s primary ballot

    Colorado Supreme Court bars Trump from the state’s primary ballot

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    DENVER — A divided Colorado Supreme Court on Tuesday declared former President Donald Trump ineligible for the White House under the U.S. Constitution’s insurrection clause and removed him from the state’s presidential primary ballot, setting up a likely showdown in the nation’s highest court to decide whether the front-runner for the GOP nomination can remain in the race.

    The decision from a court whose justices were all appointed by Democratic governors marks the first time in history that Section 3 of the 14th Amendment has been used to disqualify a presidential candidate.

    “A majority of the court holds that Trump is disqualified from holding the office of president under Section 3 of the 14th Amendment,” the court wrote in its 4-3 decision.

    Colorado’s highest court overturned a ruling from a district court judge who found that Trump incited an insurrection for his role in the Jan. 6, 2021, attack on the Capitol, but said he could not be barred from the ballot because it was unclear that the provision was intended to cover the presidency.

    The court stayed its decision until Jan. 4, or until the U.S. Supreme Court rules on the case.

    “We do not reach these conclusions lightly,” wrote the court’s majority. “We are mindful of the magnitude and weight of the questions now before us. We are likewise mindful of our solemn duty to apply the law, without fear or favor, and without being swayed by public reaction to the decisions that the law mandates we reach.”

    Trump’s attorneys had promised to appeal any disqualification immediately to the nation’s highest court, which has the final say about constitutional matters.

    “The Colorado Supreme Court issued a completely flawed decision tonight and we will swiftly file an appeal to the United States Supreme Court and a concurrent request for a stay of this deeply undemocratic decision,” Trump campaign spokesman Steven Cheung said in a statement Tuesday night.

    Trump lost Colorado by 13 percentage points in 2020 and doesn’t need the state to win next year’s presidential election. But the danger for the former president is that more courts and election officials will follow Colorado’s lead and exclude Trump from must-win states.

    Colorado officials say the issue must be settled by Jan. 5, the deadline for the state to print its presidential primary ballots.

    Dozens of lawsuits have been filed nationally to disqualify Trump under Section 3, which was designed to keep former Confederates from returning to government after the Civil War. It bars from office anyone who swore an oath to “support” the Constitution and then “engaged in insurrection or rebellion” against it, and has been used only a handful of times since the decade after the Civil War.

    The Colorado case is the first where the plaintiffs succeeded. After a weeklong hearing in November, District Judge Sarah B. Wallace found that Trump indeed had “engaged in insurrection” by inciting the Jan. 6 attack on the Capitol, and her ruling that kept him on the ballot was a fairly technical one.

    Trump’s attorneys convinced Wallace that, because the language in Section 3 refers to “officers of the United States” who take an oath to “support” the Constitution, it must not apply to the president, who is not included as an “officer of the United States” elsewhere in the document and whose oath is to “preserve, protect and defend” the Constitution.

    The provision also says offices covered include senator, representative, electors of the president and vice president, and all others “under the United States,” but doesn’t name the presidency.

    The state’s highest court didn’t agree, siding with attorneys for six Colorado Republican and unaffiliated voters who argued that it was nonsensical to imagine the framers of the amendment, fearful of former Confederates returning to power, would bar them from low-level offices but not the highest one in the land.

    “You’d be saying a rebel who took up arms against the government couldn’t be a county sheriff, but could be the president,” attorney Jason Murray said in arguments before the court in early December.

    Trump’s attorneys argued unsuccessfully that the writers of the amendment expected the Electoral College to prevent former insurrectionists from becoming president.

    They also had urged the Colorado high court to reverse Wallace’s ruling that Trump incited the Jan. 6 attack. His lawyers argued the then-president had simply been using his free speech rights and hadn’t called for violence. Trump attorney Scott Gessler also argued the attack was more of a “riot” than an insurrection.

    That met skepticism from several of the justices.

    “Why isn’t it enough that a violent mob breached the Capitol when Congress was performing a core constitutional function?” Justice William W. Hood III said during the Dec. 6 arguments. “In some ways, that seems like a poster child for insurrection.”

    In the ruling issued Tuesday, the court’s majority dismissed the arguments that Trump wasn’t responsible for his supporters’ violent attack, which was intended to halt Congress’ certification of the presidential vote: “President Trump then gave a speech in which he literally exhorted his supporters to fight at the Capitol,” they wrote.

    Colorado Supreme Court Justices Richard L. Gabriel, Melissa Hart, William W. Hood III and Monica Márquez ruled for the petitioners. Chief Justice Brian D. Boatright dissented, arguing the constitutional questions were too complex to be solved in a state hearing. Justices Maria E. Berkenkotter and Carlos Samour also dissented.

    “Our government cannot deprive someone of the right to hold public office without due process of law,” Samour wrote in his dissent. “Even if we are convinced that a candidate committed horrible acts in the past — dare I say, engaged in insurrection — there must be procedural due process before we can declare that individual disqualified from holding public office.”

    The Colorado ruling stands in contrast with the Minnesota Supreme Court, which last month decided that the state party can put anyone it wants on its primary ballot. It dismissed a Section 3 lawsuit but said the plaintiffs could try again during the general election.

    In another 14th Amendment case, a Michigan judge ruled that Congress, not the judiciary, should decide whether Trump can stay on the ballot. That ruling is being appealed.

    The liberal group behind those cases, Free Speech For People, also filed another lawsuit in Oregon seeking to bounce Trump from the ballot there. The Colorado case was filed by another liberal group, Citizens for Responsibility and Ethics in Washington.

    Both groups are financed by liberal donors who also support President Joe Biden. Trump has blamed the president for the lawsuits against him, even though Biden has no role in them, saying his rival is “defacing the constitution” to try to end his campaign.

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  • Krispy Kreme has launched in Paris — and is already in trouble with the mayor's office

    Krispy Kreme has launched in Paris — and is already in trouble with the mayor's office

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    Krispy Kreme has already run into trouble with the deputy mayor of Paris after opening its first store in the French capital this week. 

    The opening saw hundreds of Parisians flock to Krispy Kreme’s
    DNUT,
    +0.31%

    new shop, which occupies a site that previously housed a restaurant run by Michelin-starred chef Alain Ducasse. 

    The North Carolina doughnut purveyor’s arrival in Paris, however, also attracted the ire of Deputy Mayor Emmanuel Grégoire, after the business put up a series of posters on the streets of Paris.

    The Socialist Party politician slammed Krispy Kreme’s poster campaign for “littering the streets,” which he described as “illegal, polluting and costly for the community.” The so-called guerrilla marketing tactic of flyposting is illegal under French law.

    “Prepare to get a big fine!” Grégoire said in response to a tweet celebrating the campaign that read: “Prepare to change your diet with @KrispyKremeFrr.”

    The poster campaign was developed by advertising agency Buzzman Time, which has previously designed marketing campaigns for Burger King and Uber Eats.

    The opening of Krispy Kreme’s Paris store marks the company’s first foray into France, which is now the second-biggest fast-food market in the world.

    The New York–listed company, which was founded in 1937, plans to build 500 doughnut stalls across France over the next five years. Krispy Kreme doughnuts are currently available in 38 countries, including Cambodia, Myanmar and Kazakhstan. Its 379 locations in the U.S. are in 41 states and the District of Columbia.

    According to its most recent financial results, Krispy Kreme generated $407 million in revenue in the third quarter of 2023, a 7.9% increase over the previous year. 

    Krispy Kreme and Buzzman Time have not responded to a request by MarketWatch for comment.

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  • Hunter Biden indicted on 9 tax charges, adding to gun charges in special counsel probe

    Hunter Biden indicted on 9 tax charges, adding to gun charges in special counsel probe

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    WASHINGTON — Hunter Biden was indicted on nine tax charges in California on Thursday as a special counsel investigation into the business dealings of President Joe Biden’s son intensifies against the backdrop of the looming 2024 election.

    The new charges — three felonies and six misdemeanors — are in addition to federal firearms charges in Delaware alleging Hunter Biden broke laws against drug users having guns in 2018. They come after the implosion of a plea deal over the summer that would have spared him jail time.

    Hunter Biden “spent millions of dollars on an extravagant lifestyle rather than paying his tax bills,” special counsel David Weiss said in a statement. The charges are centered on at least $1.4 million in taxes Hunter Biden owed during between 2016 and 2019, a period where he has acknowledged struggling with addiction. The back taxes have since been paid.

    If convicted, Hunter Biden could face up to 17 years in prison. The special counsel probe remains open, Weiss said.

    In a fiery response, defense attorney Abbe Lowell accused Weiss of “bowing to Republican pressure” in the case.

    “Based on the facts and the law, if Hunter’s last name was anything other than Biden, the charges in Delaware, and now California, would not have been brought,” Lowell said in a statement.

    The White House declined to comment on Thursday’s indictment, referring questions to the Justice Department or Hunter Biden’s personal representatives.

    The charging documents filed in California, where he lives, details spending on everything from drugs and girlfriends to luxury hotels and exotic cars, “in short, everything but his taxes,” prosecutor Leo Wise wrote.

    The indictment comes as congressional Republicans pursue an impeachment inquiry into President Biden, claiming he was engaged in an influence-peddling scheme with his son. The House is expected to vote next week on formally authorizing the inquiry.

    No evidence has emerged so far to prove that Joe Biden, in his current or previous office, abused his role or accepted bribes, though questions have arisen about the ethics surrounding the Biden family’s international business.

    The criminal investigation led by Weiss has been open since 2018, and was expected to wind down with the plea deal that Hunter Biden had planned to strike with prosecutors over the summer. He would have pleaded guilty to two misdemeanor tax evasion charges and would have entered a separate agreement on the gun charge, getting two years of probation rather than jail time.

    It was pilloried as a “sweetheart deal” by Republicans, including former President Donald Trump, who is facing criminal charges in multiple cases.

    The agreement also contained immunity provisions, and defense attorneys have argued that they remain in force since that part of the agreement was signed by a prosecutor before the deal was scrapped.

    Prosecutors disagree, pointing out the documents weren’t signed by a judge and are invalid.

    After the deal fell apart, prosecutors filed three federal gun charges alleging that Hunter Biden had lied about his drug use to buy a gun that he kept for 11 days in 2018. Federal law bans gun possession by “habitual drug users,” though the measure is seldom seen as a stand-alone charge and has been called into question by a federal appeals court.

    The defense is planning to push next week for dismissal of the “unprecedented and unconstitutional” gun charges, Lowell said.

    Hunter Biden’s longstanding struggle with substance abuse had worsened during that period after the death of his brother Beau Biden in 2015, prosecutors wrote in a draft plea agreement filed in court in Delaware.

    He still made “substantial income” in 2017 and 2018, including $2.6 million in business and consulting fees from a company he formed with the CEOs of a Chinese business conglomerate and the Ukrainian energy company Burisma, but did not pay his taxes on a total of about $4 million in personal income during that period, prosecutors said in the scuttled Delaware plea agreement.

    He did eventually file his taxes in 2020 and the back taxes were paid by a “third party” the following year, prosecutors said.

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