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  • Ukraine troops prepare to reclaim city abandoned by Russians

    Ukraine troops prepare to reclaim city abandoned by Russians

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    Russia relinquished its final foothold in a major city in southern Ukraine on Friday, clearing the way for victorious Ukrainian forces to reclaim the country’s only Russian-held provincial capital that could act as a springboard for further advances into occupied territory.

    Russia’s Defense Ministry said its troops finished withdrawing from the western bank of the river that divides Ukraine’s Kherson region at 5 a.m. The area they left included the city of Kherson, the only provincial capital Russia had captured during its nearly nine-month invasion of Ukraine.

    Videos and photos on social media showed residents jubilantly taking to the streets and a Ukrainian flag flying over a monument in a central Kherson square for the first time since the city was seized in early March. Some footage showed crowds cheering on men in military uniform.

    Ukrainian officials have not confirmed the city was back in Ukrainian hands. A spokesperson for Ukraine’s military intelligence agency said “an operation to liberate Kherson” and the surrounding region of the same name was underway.

    “It will be possible to talk about establishing Ukrainian control over the city only after an official report by the General Staff” of the Ukrainian army, Andriy Yusov told The Associated Press.

    Ukrainian intelligence urged Russian soldiers who might still be in the city to surrender in anticipation of Ukrainian forces arriving. “Your command left you to the mercy of fate,” it said in a statement. “Your commanders urge you to change into civilian clothes and try to escape from Kherson on your own. Obviously, you won’t be able to.”

    A Ukrainian regional official, Serhii Khlan, disputed the Russian Defense Ministry’s claim that the 30,000 retreating troops took all 5,000 pieces of equipment with them, saying “a lot” of hardware got left behind.

    The final Russian withdrawal came six weeks after Russian President Vladimir Putin illegally annexed the Kherson region and three other Ukrainian provinces, vowing they would remain Russian forever.

    Moscow’s forces still control about 70% of the Kherson region following the pullback ordered amid a Ukrainian counteroffensive.

    The Kremlin remained defiant Friday, insisting the withdrawal in no way represented an embarrassment for Putin. Moscow continues to view the entire Kherson region as part of Russia, Kremlin spokesman Dmitry Peskov told reporters.

    He added that the Kremlin doesn’t regret holding festivities just over a month ago to celebrate the annexation of occupied or partially occupied regions of Ukraine.

    Shortly before the Russian announcement, the office of Ukrainian President Volodymyr Zelenskyy described the situation in the province as “difficult.” It reported Russian shelling of some villages and towns Ukrainian forces reclaimed in recent weeks during their counteroffensive in the Kherson region.

    The General Staff of Ukraine’s army said the Russian forces left looted homes, damaged power lines and mined roads in their wake. Ukrainian presidential adviser Mykhailo Podolyak predicted Thursday the departing Russians would seek to turn Kherson into a “city of death” and would continue to shell it after relocating across the Dnieper River.

    Ukrainian officials were wary of the Russian pullback announced this week, fearing their soldiers could get drawn into an ambush in Kherson city, which had a prewar population of 280,000. Military analysts also had predicted it would take Russia’s military at least a week to complete the troop withdrawal.

    Without referencing events unfolding in Kherson, Zelenskyy said in a video message thanking U.S. military personnel on Veterans Day that “victory will be ours.”

    “Your example inspires Ukrainians today to fight back against Russian tyranny,” he said. “Special thanks to the many American veterans who have volunteered to fight in Ukraine and to the American people for the amazing support you have given Ukraine. With your help, we have stunned the world and are pushing Russian forces back.”

    However, some quarters of the Ukrainian government barely disguised their glee at the pace of the Russian withdrawal.

    “The Russian army leaves the battlefields in a triathlon mode: steeplechase, broad jumping, swimming,” Andriy Yermak, a senior presidential adviser, tweeted. Social media videos showed villagers hugging Ukrainian troops.

    Recapturing Kherson city could provide Ukraine a strong position from which to expand its southern counteroffensive to other Russian-occupied areas, potentially including Crimea, which Moscow seized in 2014.

    From its forces’ new positions on the eastern bank, however, the Kremlin could try to escalate the war, which U.S. assessments showed may already have killed or wounded tens of thousands of civilians and hundreds of thousands of soldiers.

    Gen. Ben Hodges, former commanding general of U.S. Army forces in Europe, described the retreat from Kherson as a “colossal failure” for Russia, and said he expects Ukrainian commanders will work to keep the pressure on Russia’s depleted forces ahead of a possible future push for Crimea next year.

    “It’s too early to be planning the victory parade, for sure. But I would expect by the end of this year — so in the next, let’s say, eight weeks — the Ukrainians are going to be in place to start setting the conditions for the decisive phase of this campaign, which is the liberation of Crimea, which I think will happen by the summer,” he said in a telephone interview.

    Meanwhile, a Russian S-300 missile strike overnight killed seven people in Mykolaiv, about 68 kilometers (42 miles) from Kherson’s regional capital, Zelenskyy’s office said Friday morning. Rescue crews sifted through the rubble of a five-story residential building in search of survivors.

    Standing in front of what used to be his family’s apartment, Roman Mamontov, 16, awaited news about his missing mother. Mamontov said he found “nothing there” when he opened the door to look for his mother after the missile struck. Friday was her 34th birthday, the teenager said.

    “My mind was blank at that moment. I thought it could not be true,” he said. “The cake she prepared for the celebration is still there.”

    Zelenskyy called the missile strike “the terrorist state’s cynical response to our successes at the front.”

    “Russia does not give up its despicable tactics. And we will not give up our struggle. The occupiers will be held to account for every crime against Ukraine and Ukrainians,” Zelenskyy said.

    The Russian Defense Ministry didn’t acknowledge striking a residential building in Mykolaiv, saying only that an ammunition depot was destroyed “in the area of the city.”

    Mykolaiv mayor Oleksandr Sienkevych told the AP that Russia could step up its shelling of his city in light of Ukraine’s advances. “The more success the Ukrainian army has, Russia lowers its bar of terrorism,” he said.

    Sienkevych said that S-300 missiles launched from the Kherson region can reach Mykolaiv within one minute. Some 149 civilians have been killed and 700 people seriously wounded in the city since the Feb. 24 start of the war.

    The president’s office said Russian drones, rockets and heavy artillery strikes across eight regions killed at least 14 civilians between Thursday morning and Friday morning.

    The state of the key Antonivskiy Bridge that links the western and eastern banks of the Dnieper in the Kherson region remained unclear Friday. Russian media reports suggested the bridge was blown up following the Russian withdrawal; pro-Kremlin reporters posted footage of the bridge missing a large section.

    But Sergei Yeliseyev, a Russian-installed official in the Kherson region, told the Interfax news agency the bridge hadn’t been blown up.

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  • The $26 billion rise and fall of FTX crypto king Sam Bankman-Fried

    The $26 billion rise and fall of FTX crypto king Sam Bankman-Fried

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    Just six months ago, CEOs, celebs and world leaders like Bill Clinton and Tony Blair flocked to him, gathering at a Davos-like conference he hosted in the Bahamas where he lives as one of the most outspoken evangelists for the power of the blockchain.  

    Fast forward to Sunday and Bankman-Fried’s crypto empire came crashing down, the victim of an old-fashioned bank run that quickly exposed the weaknesses of the new finance system he had championed. 

    Almost overnight, Bankman-Fried’s cryptocurrency exchange, FTX, had gone from being valued at $32 billion to worthless, leaving scores of investors scrambling to get their deposits back and triggering probes in the U.S. by the Securities and Exchange Commission, the Commodities Futures Trading Commission and the Department of Justice, according to reports.

    On Thursday, the 30-year-old Bankman-Fried took to Twitter to level with his clients.

    “I fucked up, and should have done better,” he wrote.

    A very rapid rise

    It took less than five years for Bankman-Fried to build a personal fortune that was estimated at its highest point to be more than $26 billion, making him among the richest people in the world.

    His schlubby, boyish appearance — ill-fitting t-shirts, gym shorts and a mop of curly hair — made him look more like a college student ripping bong hits in the basement of a frat house than a finance guru, but fit nicely with the anti-establishment ethos that appealed to crypto enthusiasts.

    The son of law professors at Stanford University, Bankman-Fried was a wunderkind from an early age. He studied physics and mathematics at the Massachusetts Institute of Technology.

    After a stint as an ETF trader for Jane Street Capital, a highly respected Wall Street firm that is known for attracting genius quantitative traders, Bankman-Fried became interested in the concept of effective altruism, a philosophy that focuses on using reason and evidence to find solutions that benefit the most people possible. In 2017, he launched Alameda Research, a quantitative trading firm focused on digital currencies.

    Over the next year, he began building his fortune through arbitrage trading of Bitcoin
    BTCUSD,
    +11.10%

    between exchanges in the U.S. and Japan, where prices were often slightly higher. In 2019, Bankman-Fried launched the crypto exchange FTX.

    The timing was fortuitous: as the COVID-19 pandemic spread across the globe the following year, interest in cryptocurrencies among people exploded. FTX took off and brought in the big-name celebrity endorsers and partners, like professional athletes Tom Brady and Steph Curry. 

    Bankman-Fried soon found himself feted by some of the biggest institutions in finance, attracting investment from the biggest names on Wall Street and beyond like Softbank
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    -2.65%

    Group, Sequoia Capital, Blackrock
    BLK,
    +13.26%
    .
    Tiger Global Management and Thoma Bravo. He even raised money from billionaire hedge fund legends Paul Tudor Jones and Israel Englander.

    Soon, FTX was among the biggest players in the industry.

    The face of crypto

    Despite his ballooning wealth, Bankman-Fried maintained the appearance and lifestyle of a teenage gamer. He moved to the Bahamas, where he reportedly lived in a penthouse apartment with 10 roommates.

    On Zoom calls, he would often play video games while talking — his favorite game being League of Legends. Profiles of him often noted that he kept a bean bag just feet from his desk to sleep on.

    What set Bankman-Fried apart from other crypto tycoons, was his professed interest in working with regulators to create a more robust framework around the nascent industry and treat it more like a traditional finance network. 

    To that end, Bankman-Fried appeared before Congress to try to explain to skeptical U.S. lawmakers how the crypto industry worked. He also said he welcomed regulation, not always a popular position in the crypto world.

    “FTX believes [government agencies] could play an even more prominent role in the digital-asset ecosystem and bring greater investor protections by closing some regulatory gaps,” he said before a senate panel in February. “FTX believes that such efforts would combine the best aspects of traditional finance and digital-asset innovations.”

    Bankman-Fried even put his great wealth to play in politics, becoming a major campaign donor for the Democratic party. In 2020, he was one of President Joe Biden’s largest single donors and spent nearly $40 million on political campaigns this year for the midterm elections, according to campaign filings.

    As cryptocurrencies have experienced significant declines in prices this year, triggering the collapse of several operations, Bankman-Fried arose as a savior, buying up several failing partners as positioning himself as a kind of Robin Hood for the industry.

    A swift collapse

    For as fast a rise to the top of the world that Bankman-Fried enjoyed, the fall was just as rapid.

    On Sunday, Changpeng Zhao, the CEO of FTX’s competitor, Binance, and an archrival of Bankman-Fried’s, announced on Twitter that his firm, the world’s biggest cryptocurrency exchange, was liquidating its sizable holdings of FTT, the coin issued by FTX, “due to recent revelations that have come to light.”

    Bankman-Fried accused Zhao of spreading false rumors. But the damage was done.

    Binance’s move triggered a massive selloff with customers seeking to redeem some $5 billion in deposits. FTX didn’t have it and redemptions froze up.  

    On Tuesday, Bankman-Fried announced that FTX had reached a tentative agreement to be acquired by Binance, due to a “significant liquidity crunch.” The turmoil set off broad declines among several of the most popular cryptocurrencies and even spilled into the world of traditional finance, sending markets tumbling.

    The next day, the chaos increased, with reports that FTX and Bankman-Fried were under investigation by several U.S. agencies. By the end of the day, Binance said it was walking away from the deal because due diligence had revealed that “the issues are beyond our control or ability to help.” 

    Binance’s deal seemed like the only thing preventing FTX from potentially collapsing. “At some point I might have more to say about a particular sparring partner,” Bankman-Fried tweeted on Thursday. “For now, all I’ll say is: well played; you won.”

    Also on Thursday, the Wall Street Journal reported that Bankman-Fried had been using some customer deposits to fund risky bets by his Alameda Research firm, setting FTX up for collapse.

    With the Binance lifeline gone and with few options available, Bankman-Fried told investors he needed $8 billion or more to plug the hole in FTX’s books, according to reports. 

    On Twitter, Bankman-Fried said he would focus all his efforts on making sure depositors got their money back. He also tried to explain FTX’s collapse, saying “a poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was way lower.”

    Said Bankman-Fried: “My #1 priority–by far–is doing right by users,” he wrote. “Right now, we’re spending the week doing everything we can to raise liquidity. I can’t make any promises about that.”

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  • Russians announce withdrawal from part of Kherson, a key position in southern Ukraine

    Russians announce withdrawal from part of Kherson, a key position in southern Ukraine

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    Russia’s military has announced that it’s withdrawing from the western bank of the Dnieper River in Ukraine’s southern Kherson region, annexed by Moscow in September.

    The top Russian military commander in Ukraine, Gen. Sergei Surovikin, reported to Defense Minister Sergei Shoigu Wednesday that it was impossible to deliver supplies to the city of Kherson and other areas on the western bank, and Shoigu agreed with his proposal to retreat and set up defenses on the eastern bank.

    The withdrawal from the city of Kherson is a major setback for Russia — it is the only regional capital Russian forces had seized during the eight-month war.

    Elsewhere villages and towns in Ukraine saw more heavy fighting and shelling Wednesday as Ukrainian and Russian forces strained to advance on different fronts after more than 8 1/2 months of war.

    At least nine civilians were killed and 24 others were wounded in 24 hours, the Ukrainian president’s office said. It accused Russia of using explosive drones, rockets, heavy artillery and aircraft to attack eight regions in the country’s southeast.

    Ukrainian and Russian forces also clashed overnight over Snihurivka, a town about 50 kilometers (30 miles) north of the southern city of Kherson. Ukraine’s army hopes to reclaim the Russian-occupied city, the only regional capital captured during Moscow’s February 24 invasion and a key target of an ongoing counteroffensive.

    Kirill Stremousov, the deputy head of the Kherson region’s Kremlin-appointed administration, said in a Telegram post that the Ukrainian army had “gained a foothold” along a railway line in Snihurivka’s north. In a separate post, he claimed Russian forces had repulsed the Ukrainian advance.

    The Kherson region is one of four provinces of Ukraine that Russian President Vladimir Putin illegally annexed and subsequently placed under Russian martial law. The Russian military has concentrated much of its firepower on securing control of the others – Luhansk, Donetsk and Zaporizhzhia.

    Earlier this week, Ukrainian President Volodymyr Zelenskyy reiterated that the return of all occupied territory was a condition for any peace talks with Russia. The Kremlin is unlikely to give up its internationally unrecognized claim to the regions annexed in September or to Crimea, which Russia seized from Ukraine in 2014.

    The president’s office said widespread Russian strikes on Ukraine’s energy system continued. Two cities not far from Europe’s largest nuclear power plant were shelled overnight, it said. More than 20 residential buildings, an industrial plant, a gas pipeline and a power line were reportedly damaged in Nikopol, which lies across the Dnieper River from the the Zaporizhzhia Nuclear Power Plant.

    Further west, in the Dnipropetrovsk region, the Ukrainian governor reported “massive” overnight strikes with exploding Iranian-made drones that wounded four energy company workers in the city of Dnipro.

    “Attacks on civilian infrastructure are war crimes in themselves. The Kremlin is at war with Ukrainian civilians, trying to leave millions of people without water and light (for them) to freeze in the winter,” Gov. Valentyn Reznichenko said on Ukrainian TV.

    In a related development, a senior Russian security official arrived in Iran for high-level talks late on Tuesday, Russian media reported.

    News of the trip by Nikolai Patrushev, secretary of the powerful Russian Security Council chaired by Putin, came days after Tehran admitted that it had supplied Moscow with the explosive-laden drones, after weeks of official denials.

    A Washington-based think tank linked Patrushev’s visit to likely discussions over the possible sale of Iranian surface-to-surface ballistic missiles to Russia. The Institute for the Study of War said late Tuesday that the Kremlin was “continuing efforts to covertly acquire munitions for use in Ukraine, to mitigate the effects of international sanctions and backfill Russia’s ongoing depletion of domestic munitions stockpiles.”

    The increasingly close military and political cooperation between Moscow and Tehran at the time of the war in Ukraine has worried the United States and other Western powers.

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  • Here are the House seats that have flipped in the midterm elections

    Here are the House seats that have flipped in the midterm elections

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    Republicans need to flip just five seats during Tuesday’s midterm elections in order to win majority control of the House of Representatives and would need to net one Senate seat to overcome Democrats’ marginal 50-seat majority in the Senate.

    Republicans have better odds of winning both chambers than Democrats, though their odds are higher on the House side. As of Tuesday morning, FiveThirtyEight placed Republicans’ odds of taking majority control of the Senate at 59 in 100 and the party’s odds in the House at 84 in 100.

    Read: Republicans have over 70% chance of winning Senate in midterm elections, betting markets say

    As the Associated Press calls results nationwide, follow along for updates on which seats are flipping.

    Florida

    The first congressional seats to flip were in Florida, where Republican Anna Paulina Luna defeated Democratic candidate Eric Lynn by 8.6-points (with 99% of results reported). The since-redrawn district was represented by Democrat Charlie Crist, who left the office to launch an unsuccessful challenge against Republican Gov. Ron DeSantis.

    A second seat flipped in the state’s is the 7th District, where Republican Cory Mills came out on top with 58.5% of the vote. The district, previously represented by Democrat Stephanie Murphy, was redrawn to be solidly red.

    Virginia

    Republican Jen Kiggans ousted Democratic Rep. Elaine Luria in Virginia’s 2nd congressional district. Luria’s seat was one of two Virginia seats deemed “toss-ups” by the Cook Political Report. With 73% of the results reported, Kiggans had received 55% of the vote.

    The other incumbent in a toss-up race, Democratic Rep. Abigail Spanberger, secured re-election with about 52% of the vote.

    Tennessee

    Republican Andy Ogles has won election to Tennessee’s 5th congressional district, the AP called shortly after midnight. He received about 56% of the vote, with 97% reported.

    Ogles will replace retiring Democrat Jim Cooper, who decided not to seek re-election following redistricting that shifted the district from a solid Democratic district to “likely” Republican, according to Cook Political Report.

    North Carolina

    Democrat Wiley Nickel defeated Republican Bo Hines in North Carolina’s 13th congressional district with 51.3% of the vote. The state senator’s win marks the first pick-up for Democrats.

    The race was rated as a “toss-up” by CPR following Republican Rep. Ted Budd’s decision to leave the House to run for the open Senate seat in North Carolina. The AP has called the Senate race for Budd.

    Texas

    Two-term Democratic Rep. Vicente Gonzalez defeated Republican Mayra Flores, who won a special election in June to replace Democratic Filemon Vela Jr., who left Congress to work at a lobbying firm. The two incumbents were set to square off following redistricting. Gonzalez picked up just under 53% of the vote, compared to Flores’ 44%.

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  • U.K. fracking stocks slump after Sunak reinstates ban

    U.K. fracking stocks slump after Sunak reinstates ban

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    Shares in London-listed fracking companies slumped on Wednesday after new U.K. Prime Minister Rishi Sunak said he would stick by his party’s manifesto pledge to ban the shale gas extraction process in Britain.

    IGas Energy stock
    IGAS,
    -27.66%

    dropped 28% and the equity of Egdon Resources
    EDR,
    -18.21%

    slumped 11%. The shares of AJ Lucas
    AJL,
    +2.99%
    ,
    which owns nearly 50% of U.K. fracker Cuadrilla, are quoted on the Australian stock exchange, which was closed.

    The fracking sector is tiny in the U.K. — the two U.K.-quoted companies have a combined valuation of less than £60 million — with few suitable sites for the process to be viable.

    But the industry’s practices are highly controversial, with campaigners arguing it causes small earth tremors, pollutes water tables and is not compatible with lower carbon production targets.

    The shares of IGas Energy had jumped around ninefold since the start of the year, getting an extra recent boost from previous Prime Minister Liz Truss’s decision to go against the Conservative Party’s wishes and allow fracking.

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  • Rishi Sunak the favorite as Boris Johnson drops out of the running for Britain’s prime minister

    Rishi Sunak the favorite as Boris Johnson drops out of the running for Britain’s prime minister

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    LONDON — Former British Prime Minister Boris Johnson announced Sunday he will not run to lead the Conservative Party, ending a short-lived, high-profile attempt to return to the prime minister’s job he was ousted from little more than three months ago.

    His withdrawal leaves former Treasury chief Rishi Sunak the strong favorite to become Britain’s next prime minister — the third this year — at a time of political turmoil and severe economic challenges. He could win the contest as soon as Monday.

    The British pound
    GBPUSD,
    +0.42%

    advanced Sunday on hopes Sunak would be more fiscally austere.

    Read more: Who is Rishi Sunak, now the front-runner for U.K. prime minister?

    Johnson, who was ousted in July amid ethics scandals, had been widely expected to run to replace Liz Truss, who quit last week after her tax-cutting economic package caused turmoil in financial markets, was rapidly abandoned and and obliterated her authority inside the governing party.

    Johnson spent the weekend trying to gain support from fellow Conservative lawmakers after flying back from a Caribbean vacation and held talks with the two other contenders, Sunak and House of Commons Leader Penny Mordaunt.

    Late Sunday he said he had amassed the backing of 102 colleagues, more than the threshold of 100 needed to make a ballot of lawmakers on Monday.

    But he was far behind Sunak in support, and said he had concluded that “you can’t govern effectively unless you have a united party in Parliament.”

    The prospect of a return by Johnson had thrown the already divided Conservative Party into further turmoil. He led the party to a thumping election victory in 2019, but his premiership was clouded by scandals over money and ethics that eventually became too much for the party to bear.

    In his Sunday statement, Johnson insisted he was “well placed to deliver a Conservative victory” in the next national election, due by 2024. And he said that he likely would have won a ballot of Conservative Party members against either of his rivals.

    “But in the course of the last days I have sadly come to the conclusion that this would simply not be the right thing to do,” he said. “Therefore I am afraid the best thing is that I do not allow my nomination to go forward and commit my support to whoever succeeds.”

    But he hinted he might be back, saying: “I believe I have much to offer but I am afraid that this is simply not the right time.”

    After Truss quit on Thursday, the Conservative Party hastily ordered a contest that aims to finalize nominations Monday and install a new prime minister — its third this year — within a week.

    The clear favorite now is Sunak, who has support from more than 140 lawmakers, according to unofficial tallies. Mordaunt is backed by fewer than 30.

    If both make the ballot, the 357 Conservative lawmakers will hold an indicative vote on Monday to show their preference before the choice goes to the 172,000 party members around the country. If Mordaunt does not reach 100 nominations, Sunak will win by acclamation.

    Sunak, 42, was runner-up after Truss in this summer’s Tory leadership race to replace Johnson. On Sunday, he confirmed he was running again in the latest leadership contest.

    “There will be integrity, professionalism and accountability at every level of the government I lead and I will work day in and day out to get the job done,” Sunak said in a statement.

    Johnson’s exit came only hours after allies insisted he would run. Business Secretary Jacob Rees-Mogg told the BBC on Sunday that he spoke with Johnson and “clearly he’s going to stand” after flying back to London Saturday from a vacation in the Dominican Republic.

    But Northern Ireland minister Steve Baker, a former backer of Johnson and an influential politician within the Conservative Party, warned a Johnson comeback would be a “guaranteed disaster.” Baker noted that Johnson still faces an investigation into whether he lied to Parliament while in office about breaking his government’s own coronavirus restrictions during parties at Downing Street.

    If found guilty, Johnson could be suspended as a lawmaker.

    “This isn’t the time for Boris and his style,” Baker told Sky News on Sunday. “What we can’t do is have him as prime minister in circumstances where he’s bound to implode, taking down the whole government … and we just can’t do that again.”

    Truss quit Thursday after a turbulent 45 days, conceding that she could not deliver on her botched tax-cutting economic package, which she was forced to abandon after it sparked fury within her party and weeks of turmoil in financial markets.

    Sunak, who was Treasury chief from 2020 until this summer, steered Britain’s slumping economy through the coronavirus pandemic. He quit in July in protest at Johnson’s leadership.

    In the summer contest to replace Johnson, Sunak called promises by Truss and other rivals to immediately slash taxes reckless “fairy tales” and argued that soaring inflation must be controlled first.

    Tory voters backed Truss over Sunak, but he was proved right when Truss’ unfunded tax-cutting package triggered chaos in the markets in September. Now the task of stabilizing Britain’s wobbling economy is likely to fall to him.

    MarketWatch contributed to this report.

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  • IRS releases new federal tax brackets and standard deductions. Here’s how they affect your family’s tax bill.

    IRS releases new federal tax brackets and standard deductions. Here’s how they affect your family’s tax bill.

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    America’s high inflation rate will produce a 7% increase in the size of the standard deduction when workers file their taxes on their 2023 income, according to new inflation adjustments from the Internal Revenue Service.

    It’s also going to pump up tax brackets by 7% as well, according to the annual inflation adjustments the IRS announced this week.

    Many tax code provisions — but not all — are indexed for inflation, so the announcements are a recurring event. But when inflation is persistently clinging to four-decade highs, these annual adjustments carry extra significance.

    When inflation is persistently clinging to four-decade highs, these annual adjustments of approximately 7% for the standard deduction carry extra significance.

    Start with the standard deduction, which is what most people use instead of itemizing deductions.

    The standard deduction for individuals and married people filing separately will be $13,850 for the 2023 tax year. That’s a $900 increase from the $12,950 standard deduction for the upcoming tax season.

    For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. That’s a $1,800 increase from the $25,900 standard deduction set for the upcoming tax year.

    The increases in the marginal tax rates reflect the same 7% rise. For example, the 22% tax bracket for this year is over $41,775 for single filers and over $83,550 for married couples filing jointly. Next year, the same 22% bracket applies to incomes over $44,725 and over $89,450 for married couples filing jointly.

    MarketWatch/IRS

    “The changes seem to be much larger than previous years because inflation is running much higher than it has in previous decades,” said Alex Durante, economist at the Tax Foundation, a right-leaning tax think tank.

    The IRS arrives at its inflation adjustments by averaging a slightly different inflation gauge, the so-called “chained Consumer Price Index” instead of the widely-watched Consumer Price Index, Durante noted. That’s an outcome of the Trump-era Tax Cuts and Jobs Act of 2017, he added.

    “The reason they do this is because the regular CPI is thought to overstate inflation because it doesn’t take into account the substitution that shoppers can make as cost rise,” Durante said. Shoppers substitute when they swap a more expensive item for cheaper one, and research shows many Americans are using the tactic.

    The IRS inflation adjustments come after September CPI data last week showed inflation of 8.2% year-over-year, slightly off from 8.3% in August. Also last week, the Social Security Administration said next year’s payments would include an 8.7% cost of living adjustment.

    The payout on the earned income tax credit — geared at low- and moderate-income working families who have been hit hard by red-hot inflation — is also increasing.

    The payout on the earned income tax credit is also increasing. The maximum payout for a qualifying taxpayer with at least three qualifying children climbs to $7,430, up from $6,935 for this tax year. The longstanding credit is geared at low- and moderate-income working families who have been hit hard by red-hot inflation.

    More than 60 provisions are slated for an increase inline with inflation, but many portions of the tax code are not indexed for inflation. Depending on the circumstances, the taxes or the tax breaks kick in sooner.

    Capital gains tax rules one example. The IRS lets a taxpayer use capital losses to offset capital gains taxes. If losses exceed gains, the IRS allows a taxpayer to deduct up to $3,000 in excess loses. They can then carry the remainder of the capital loses to future tax years. It’s been more than four decades since lawmakers last set the limit, according to Durante.

    While more than 60 provisions are slated for an increase inline with inflation, many portions of the tax code are not indexed for inflation. They include capital gains tax.

    Given the stock market’s rocky downward slide this year, many investors might welcome a fast-approaching tax break — even if it only enables a $3,000 deduction.

    At the same time, a married couple selling their home can exclude the first $500,000 of the sale from capital gains taxation, and it’s $250,000 for a single filer. It’s been that way since the exclusion’s 1997 establishment.

    The once white-hot housing market may be cooling, but many sellers may still be facing the point when taxes kick in. The median home listing was over $367,000 as of early October, according to Redfin
    RDFN,
    +2.29%
    .

    The child tax credit is another example. After the payout to parents last year jumped to $3,600 for children under age 6 and $3,000 per child age 6 to 17, it’s back to a maximum $2,000. The credit’s refundable portion climbs from $1,500 to $1,600 during tax year 2023, the IRS notes.

    Proponents of the boosted payouts and some Congressional Democrats want to revive the larger payments in negotiations tied to corporate taxes. The high costs of living are a strong reason to bring back the boosted credit, they say.

    Related:

    What smart strategies can lower your tax bill as year-end approaches? Read this before making any tax moves.

    Three things the best 401(k)s offer that can help you save a lot more

    Enhanced child tax credit helped reduce poverty for families before it ended last year. But there’s one way Republicans and Democrats could agree on reinstating it.

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  • Federal appeals court temporarily blocks Biden’s student loan forgiveness program

    Federal appeals court temporarily blocks Biden’s student loan forgiveness program

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    ST. LOUIS (AP) — A federal appeals court late Friday issued an administrative stay temporarily blocking President Joe Biden’s plan to cancel billions of dollars in federal student loans.

    The Eighth Circuit Court of Appeals issued the stay while it considers a motion from six Republican-led states to block the loan cancellation program. The stay ordered the Biden administration not to act on the program while it considers the appeal.

    The order came just days after people began applying for loan forgiveness. It was not immediately clear how the stay would impact those have already applied.

    The court set a deadline of Monday at 5 p.m. CDT for a response for a response from the Biden administration and a 5 p.m. Central Tuesday deadline for any replay from the appellants.

    See also: What are Pell grants? Biden student-loan forgiveness climbs to $20,000 for recipients of Pell grants.

    See also: ‘It’s $10,000 that’s on the line.’ Borrowers who used Pell grants decades ago can’t find proof and worry they will lose Biden’s relief.

    The attorneys for the Republican-led states had asked the court to reconsider their effort to block the Biden administration’s program to forgive the student loan debt.

    A notice of appeal to the Eighth U.S. Circuit Court of Appeals was filed late Thursday, hours after U.S. District Judge Henry Autrey in St. Louis ruled that since the states of Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina failed to establish standing, “the Court lacks jurisdiction to hear this case.”

    Separately, the six states also asked the district court for an injunction prohibiting the administration from implementing the debt cancellation plan until the appeals process plays out.

    Speaking at Delaware State University, a historically Black university where the majority of students receive federal Pell Grants, Biden on Friday said nearly 22 million people have applied for the loan relief in the week since his administration made its online application available.

    Also see: How to avoid being scammed when you apply for student-loan forgiveness

    The plan, announced in August, would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, will get an additional $10,000 in debt forgiven.

    The Congressional Budget Office has said the program will cost about $400 billion over the next three decades. James Campbell, an attorney for the Nebraska attorney general’s office, told Autrey at an Oct. 12 hearing that the administration is acting outside its authorities in a way that will cost states millions of dollars.

    The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans. Current college students qualify if their loans were disbursed before July 1. The plan makes 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, according to the administration.

    The announcement immediately became a major political issue ahead of the November midterm elections.

    Conservative attorneys, Republican lawmakers and business-oriented groups have asserted that Biden overstepped his authority in taking such sweeping action without the assent of Congress. They called it an unfair government giveaway for relatively affluent people at the expense of taxpayers who didn’t pursue higher education.

    Many Democratic lawmakers facing tough reelection contests have distanced themselves from the plan.

    Biden on Friday blasted Republicans who have criticized his relief program, saying “their outrage is wrong and it’s hypocritical.” He noted that some Republican officials had debt and pandemic relief loans forgiven.

    The six states sued in September. Lawyers for the administration countered that the Department of Education has “broad authority to manage the federal student financial aid programs.” A court filing stated that the 2003 Higher Education Relief Opportunities for Students Act, or HEROES Act, allows the secretary of education to waive or modify terms of federal student loans in times of war or national emergency.

    “COVID-19 is such an emergency,” the filing stated.

    The HEROES Act was enacted after the Sept. 11, 2001, terrorist attacks to help members of the military. The Justice Department says the law allows Biden to reduce or erase student loan debt during a national emergency. Republicans argue the administration is misinterpreting the law, in part because the pandemic no longer qualifies as a national emergency.

    Justice Department attorney Brian Netter told Autrey at the Oct. 12 hearing that fallout from the COVID-19 pandemic is still rippling. He said student loan defaults have skyrocketed over the past 2 1/2 years.

    Other lawsuits also have sought to stop the program. Earlier Thursday, Supreme Court Justice Amy Coney Barrett rejected an appeal from a Wisconsin taxpayers group seeking to stop the debt cancellation program.

    Barrett, who oversees emergency appeals from Wisconsin and neighboring states, did not comment in turning away the appeal from the Brown County Taxpayers Association. The group wrote in its Supreme Court filing that it needed an emergency order because the administration could begin canceling outstanding student debt as soon as Sunday.

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  • IRS sets new 401(k) limits — investors can save a lot more money in 2023

    IRS sets new 401(k) limits — investors can save a lot more money in 2023

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    People can contribute up to $22,500 in 401(k) accounts and $6,500 in IRAs in 2023, the IRS said Friday.

    For 401(k)s, that’s an almost 10% increase from 2022’s contribution limit of $20,500. For IRAs, it’s a more than 8% rise from 2022’s limit of $6,000.

    As added context, the inflation-indexed bumps tax year 2023 income tax brackets and the standard deduction worked to approximately 7%.

    When the IRS increased the 401(k) contribution limits last year, it came to a roughly 5% rise.

    “Given the inflation we have been experiencing recently, the early announcement of this increase is encouraging,” Rita Assaf, vice president of retirement products at Fidelity Investments, said after the IRS released the 2023 contribution limits.

    Seven in 10 people are “very concerned” how inflating costs will impact their readiness for retirement according to a Fidelity study, Assaf noted. “Every dollar counts, and this increase will provide Americans with the opportunity to set aside just a bit more to help fund their retirement objectives,” she said.

    Older workers can save even more

    The 2023 contribution limits that apply to 401(k)s — plus 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan — are even larger for workers age 50 and over.

    Catch-up contribution limits rise to $7,500 from $6,500, the IRS said. Combine the catch-up contributions with the regular contribution limits, and workers age 50 and over can sock away $30,000 for retirement in these accounts during 2023, the agency said.

    Income phase-outs increase when it comes to possible deductions, credits and contributions

    Tax rules can let people deduct contributions to traditional IRAs so long as they meet certain conditions, pegged to issues like coverage through a workplace retirement plan and yearly income. Above phase-out ranges, deductions don’t apply if a person or their spouse has a retirement plan through work, the IRS noted.

    For 2023, a single taxpayer covered by a workplace retirement plan has a phase-out range between $73,000 and $83,000. That’s up from a range between $68,000 and $78,000 during 2022.

    For a married couple filing jointly “if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $116,000 and $136,000,” the IRS said.

    If an IRA saver doesn’t have a workplace plan but their spouse is covered, “the phase-out range is increased to between $218,000 and $228,000,” the agency noted.

    There are also changes coming for the Roth IRA, which people fund with after-tax money and then can tap tax-free later.

    Read also: Here’s when you should choose a Roth IRA over a traditional account

    The Roth IRA contribution limits also climb to $6,500. Retirement savers putting money in their 401(k) can’t also put pre-tax money in a traditional IRA, but they can contribute to a Roth account.

    Still, the eligibility to contribute to Roth IRA accounts is pegged to income, subject to phase-out ranges.

    In 2023, the income phase-out range on Roth IRA contributions climbs to between $138,000 – $153,000 for individuals and people filing as head of household. (That’s up from a range between $129,000 and $144,000, the IRS noted.)

    With a married couple filing jointly, next year’s phase-out range goes to $218,00 – $228,000. That’s a step up from this year’s $204,000 – $214,000 range.

    The income limit surrounding the saver’s credit, which is geared toward low- and moderate-income households, is also getting a lift. The credit lets taxpayers claim 10%, 20% or one-half of contributions to eligible retirement plans, including a 401(k) or an IRA. The credit’s income limits are climbing, the IRS said.

    The 2023 income limit will be $73,000 for married couples filing jointly, $54,750 for heads of household and $36,500 for individuals and married individuals filing separately, according to the IRS.

    Don’t miss: Opinion: It’s harder for me to look at my 529 balance than my 401(k) because I have a high school junior. Here’s some advice for parents on a similar timeline.

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  • CDC shoots down false claims it will mandate COVID-19 vaccines for schoolchildren, saying states make that decision

    CDC shoots down false claims it will mandate COVID-19 vaccines for schoolchildren, saying states make that decision

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    The Centers for Disease Control and Prevention has refuted claims that it’s planning to add the COVID-19 vaccine to immunization schedules for schoolchildren, saying that the authority for that decision lies with states and other local entities.

    The false claim spread after it was shared by Fox News host Tucker Carlson in a tweet this week, as the Associated Press reported. 

    Carlson tweeted that the agency would make the vaccine mandatory in order for children to attend school, a claim the CDC quickly shot down. While an advisory committee to the CDC voted to recommend that the vaccine be added to immunization schedules, the CDC “only makes recommendations for use of vaccines, while school-entry vaccination requirements are determined by state or local jurisdictions,” CDC spokeswoman Kate Grusich told the AP.

    Grusich explained that the action was meant to streamline clinical guidance for healthcare providers by adding COVID-19 vaccines to a single list of all currently licensed, authorized and routinely recommended vaccines.

    “It’s important to note that there are no changes in COVID-19 vaccine policy,” she said.

    The news comes as U.S. known cases of COVID are continuing to ease and now stand at their lowest level since mid-April, although the true tally is likely higher given how many people overall are testing at home, where data are not being collected.

    The daily average for new cases stood at 38,077 on Thursday, according to a New York Times tracker, down 8% from two weeks ago. Cases are currently rising in 14 states, as well as Washington, D.C., and Puerto Rico.

    The daily average for hospitalizations was down 2% to 26,669, although hospitalizations are rising in almost all northeastern states as cold weather arrives. The daily average for deaths was down 7% to 360.

    Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began

    Other COVID-19 news you should know about:

    • Pfizer
    PFE,
    +4.42%

    is planning to sell the COVID vaccine it developed with German partner BioNTech
    BNTX,
    +9.88%

    for $110 -$130 a dose once the U.S. market for COVID-19 shots becomes commercial, likely in the first quarter of next year, MarketWatch’s Jaimy Lee reported. Pfizer and BioNTech are currently paid $30.50 per vaccine dose by the U.S. government, which contracted with the companies, as well as with other vaccine makers like Moderna
    MRNA,
    +9.07%

    and Novavax
    NVAX,
    +11.35%
    ,
    and then made the COVID-19 shots available at no cost to people in the U.S. during the public-health emergency. The emergency declaration in the U.S. isn’t expected to be renewed next year, which will lead to the formation of an official commercial market for COVID-19 vaccines, tests and treatments. 

    • Johnson & Johnson
    JNJ,
    +1.91%

    said the volume of surgical procedures is returning to prepandemic levels in many parts of the world, a trend that cheered Wall Street and could bode well for other medical-technology heavyweights like Stryker Corp.
    SYK,
    +0.57%

    and Zimmer Biomet Holdings
    ZBH,
    +0.18%
    .
    J&J, which reported earnings this week, said its medical-technology business had a “strong September,” with U.S. sales of hip and knee implants and other surgical devices rising 7.7% to $3.3 billion in the third quarter of the year. “We are seeing procedures recovering,” Ashley McEvoy, worldwide chair of J&J’s MedTech business, told investors during this week’s earnings call. “In the U.S., we started to see surgical procedures tick up, predominantly at the latter part of the quarter.”

    The new bivalent vaccine might be the first step in developing annual COVID shots, which could follow a similar process to the one used to update flu vaccines every year. Here’s what that process looks like, and why applying it to COVID could be challenging. Illustration: Ryan Trefes

    • “As China’s ruling Communist Party holds a congress this week, many Beijing residents are focused on an issue not on the formal agenda: Will the end of the meeting bring an easing of China’s at times draconian ‘zero-COVID’ policies that are disrupting lives and the economy?” the AP reported. It appears to be wishful thinking. As the world moves to a postpandemic lifestyle, many across China have resigned themselves to lining up several times a week for COVID tests, restrictions on travel to other regions and the ever-present possibility of a community lockdown.

    • Fantasy Fest, a 10-day annual party, is kicking off in Key West, Fla., on Friday, with a full slate of events for the first time since the pandemic started, the AP reported. “Due to the COVID pandemic, this will be the first full Fantasy Fest since 2019,” the festival’s board chair, Steve Robbins, said. “So I know our guests and staff are excited about getting back to the real Fantasy Fest.” Dozens of themed events are set for the festival, including a nighttime parade Oct. 29 featuring floats and elaborately costumed marching groups. Participants are encouraged to draw costume ideas from the festival’s theme, “Cult Classics & Cartoon Chaos,” and to portray characters inspired by favorite cartoons and television or film productions with a cult following.

    Here’s what the numbers say:

    The global tally of confirmed cases of COVID-19 topped 626.9 million on Friday, while the death toll rose above 6.57 million, according to data aggregated by Johns Hopkins University.

    The U.S. leads the world with 97.2 million cases and 1,067,190 fatalities.

    The Centers for Disease Control and Prevention’s tracker shows that 226.5 million people living in the U.S., equal to 68.2% of the total population, are fully vaccinated, meaning they have had their primary shots. Just 111.4 million have had a booster, equal to 49.1% of the vaccinated population, and 26.8 million of those who are eligible for a second booster have had one, equal to 40.6% of those who received a first booster.

    The CDC reports that some 19.4 million people have had a dose of the updated bivalent booster that targets omicron and its subvariants along with the original virus.

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  • U.S. budget deficit halved in fiscal 2022 as receipts surge, COVID spending fades

    U.S. budget deficit halved in fiscal 2022 as receipts surge, COVID spending fades

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    The numbers: The U.S. federal budget deficit fell to $1.37 trillion in the just-ended fiscal year, the Treasury Department said Friday, half the amount of last year’s shortfall.

    Key details: The Treasury said the deficit fell by $1.4 trillion in fiscal 2022, the largest one-year decrease on record. Surging tax receipts totaling $4.9 trillion helped cut the deficit, as did falling outlays.

    Spending was $6.3 trillion for the fiscal year, a drop of 8.1%. That partly reflects reductions in COVID-related spending.

    The deficit would have been lower had student loan cancelation costs not been included. President Joe Biden in August announced $10,000 in federal debt cancelation for those with incomes less than $125,000 a year, or households making less than $250,000. Those who received federal Pell Grants are eligible for extra forgiveness.

    The loan-cancelation costs contributed to a 562% increase in the monthly deficit for September. The government’s fiscal year runs October through September.

    Big picture: Treasury Secretary Janet Yellen said in a statement that the report “provides further evidence of our historic economic recovery, driven by our vaccination effort and the American Rescue Plan.”

    Meanwhile, a budget watchdog said the figure was no cause for celebration.

    “We borrowed $1.4 trillion last year. That is not an accomplishment — it’s a reminder of how precarious our fiscal situation remains,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

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  • Federal judge dismisses effort by 6 states to halt student-debt forgiveness plan

    Federal judge dismisses effort by 6 states to halt student-debt forgiveness plan

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    ST. LOUIS — A federal judge in St. Louis on Thursday dismissed an effort by six Republican-led states to block the Biden administration’s plan to forgive student loan debt for tens of millions of Americans.

    U.S. District Judge Henry Autrey wrote that because the six states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — failed to establish they had standing, “the Court lacks jurisdiction to hear this case.”

    Suzanne Gage, spokeswoman for Nebraska Attorney General Doug Peterson, said the states will appeal. She said in a statement that the states “continue to believe that they do in fact have standing to raise their important legal challenges.”

    Democratic President Joe Biden announced in August that his administration would cancel up to $20,000 in education debt for huge numbers of borrowers. The announcement immediately became a major political issue ahead of the November midterm elections.

    The states’ lawsuit is among a few that have been filed. Earlier Thursday, Supreme Court Justice Amy Coney Barrett rejected an appeal from a Wisconsin taxpayers group seeking to stop the debt cancellation program.

    Barrett, who oversees emergency appeals from Wisconsin and neighboring states, did not comment in turning away the appeal from the Brown County Taxpayers Association. The group wrote in its Supreme Court filing that it needed an emergency order because the administration could begin canceling outstanding student debt as soon as Sunday.

    In the lawsuit brought by the states, lawyers for the administration said the Department of Education has “broad authority to manage the federal student financial aid programs.” A court filing stated that the 2003 Higher Education Relief Opportunities for Students Act, or HEROES Act, allows the secretary of education to waive or modify terms of federal student loans in times of war or national emergency.

    “COVID-19 is such an emergency,” the filing stated.

    The Congressional Budget Office has said the program will cost about $400 billion over the next three decades. James Campbell, an attorney for the Nebraska attorney general’s office, told Autrey at an Oct. 12 hearing that the administration is acting outside its authorities in a way that will cost states millions of dollars.

    The plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, will get an additional $10,000 in debt forgiven.

    Conservative attorneys, Republican lawmakers and business-oriented groups have asserted that Biden overstepped his authority in taking such sweeping action without the assent of Congress. They called it an unfair government giveaway for relatively affluent people at the expense of taxpayers who didn’t pursue higher education.

    Chris Nuelle, spokesman for Missouri Attorney General Eric Schmitt, said the plan “will unfairly burden working class families with even more economic woes.”

    Many Democratic lawmakers facing tough reelection contests have distanced themselves from the plan.

    The HEROES Act was enacted after 9/11 to help members of the military. The Justice Department says the law allows Biden to reduce or erase student loan debt during a national emergency. Republicans argue the administration is misinterpreting the law, in part because the pandemic no longer qualifies as a national emergency.

    Justice Department attorney Brian Netter told Autrey that fallout from the COVID-19 pandemic is still rippling. He said student loan defaults have skyrocketed over the past 2 1/2 years.

    The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans. Current college students qualify if their loans were disbursed before July 1.

    The plan makes 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, according to the administration.

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  • Study finds Paxlovid can interact badly with some heart medications, and White House renews COVID emergency through Jan. 11

    Study finds Paxlovid can interact badly with some heart medications, and White House renews COVID emergency through Jan. 11

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    A new study has found that the COVID antiviral Paxlovid can interact badly with certain heart medications, raising concerns for patients with cardiovascular risk who test positive.

    The study was published in the Journal of the American College of Cardiology and found the reaction involved such medications as blood thinners and statins. As patients who are hospitalized with COVID are at elevated risk of heart problems, they are likely to be described Paxlovid, which was developed by Pfizer
    PFE,
    -0.45%
    .

     “Co-administration of NMVr (Paxlovid) with medications commonly used to manage cardiovascular conditions can potentially cause significant drug-drug interactions and may lead to severe adverse effects,” the authors wrote. “It is crucial to be aware of such interactions and take appropriate measures to avoid them.”

    The news comes just days after the White House made a renewed push to encourage Americans above the age of 50 to take Paxlovid or use monoclonal antibodies if they test positive and are at risk of developing severe disease.

    White House coordinator Dr. Ashish Jha told the New York Times that greater use of the medicine could reduce the average daily death count to about 50 a day from close to 400 currently.

    “I think almost everybody benefits from Paxlovid,” Jha said. “For some people, the benefit is tiny. For others, the benefit is massive.” 

    Yet a smaller share of 80-year-olds with COVID in the U.S. is taking it than 45-year-olds, Jha said, citing data said he has seen.

    On Thursday, the White House extended its COVID pubic health emergency through Jan. 11 as it prepares for an expected rise in cases in the colder months, the Associated Press reported.

    The public health emergency, first declared in January 2020 and renewed every 90 days since, has dramatically changed how health services are delivered.

    The declaration enabled the emergency authorization of COVID vaccines, as well as free testing and treatments. It expanded Medicaid coverage to millions of people, many of whom will risk losing that coverage once the emergency ends. It temporarily opened up telehealth access for Medicare recipients, enabling doctors to collect the same rates for those visits and encouraging health networks to adopt telehealth technology.

    Since the beginning of this year, Republicans have pressed the administration to end the public health emergency.

    President Joe Biden, meanwhile, has urged Congress to provide billions more in aid to pay for vaccines and testing. Amid Republican opposition to that request, the federal government ceased sending free COVID tests in the mail last month, saying it had run out of funds for that effort.

    Separately, the head of the World Health Organization urged countries to continue to surveil, monitor and track COVID and to ensure poorer countries get access to vaccines, diagnostics and treatments, reiterating that the pandemic is not yet over.

    Tedros Adhanom Ghebreyesus said most countries no longer have measures in place to limit the spread of the virus, even though cases are rising again in places including Europe.

    “Most countries have reduced surveillance drastically, while testing and sequencing rates are also much lower,” Tedros said in opening remarks at the IHR Emergency Committee on COVID-19 Pandemic on Thursday.

    “This,” said the WHO leader, “is blinding us to the evolution of the virus and the impact of current and future variants.”

    U.S. known cases of COVID are continuing to ease and now stand at their lowest level since late April, although the true tally is likely higher given how many people overall are testing at home, where the data are not being collected.

    The daily average for new cases stood at 38,530 on Thursday, according to a New York Times tracker, down 19% from two weeks ago. Cases are rising in six states, namely Nevada, New Mexico, Kansas, Maine, Wisconsin and Vermont, and are flat in Wyoming. They are falling everywhere else.

    The daily average for hospitalizations was down 7% at 26,665, while the daily average for deaths is down 7% to 377. 

    The new bivalent vaccine might be the first step in developing annual Covid shots, which could follow a similar process to the one used to update flu vaccines every year. Here’s what that process looks like, and why applying it to Covid could be challenging. Illustration: Ryan Trefes

    Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began

    Other COVID-19 news you should know about:

    • Federal Health Minister Karl Lauterbach has urged German states to reintroduce face-mask requirements for indoor spaces due to high COVID cases numbers, the Local.de reported. Lauterbach was launching his ministry’s new COVID campaign on Friday. “The direction we are heading in is not a good one,” he said at a press conference in Berlin, adding it’s better to take smaller measures now than be forced into drastic ones later.

    • Health officials in Washington and Oregon said Thursday that a fall and winter COVID surge is likely headed to the Pacific Northwest after months of relatively low case levels, the AP reported. King County (Wash.) Health Officer Dr. Jeff Duchin said during a news briefing that virus trends in Europe show a concerning picture of what the U.S. could soon see, the Seattle Times reported.

    Two banners unfurled from a highway overpass in Beijing condemned Chinese President Xi Jinping and his strict Covid policies, in a rare display of defiance. The protest took place days before the expected extension of the leader’s tenure.

    • Kevin Spacey’s trial on sexual-misconduct allegations will continue without a lawyer who tested positive for COVID on Thursday, Yahoo News reported. The “American Beauty” and “House of Cards” star is on trial in Manhattan federal court facing allegations in a $40 million civil lawsuit that he preyed upon actor Anthony Rapp in 1986 when Rapp was 14 and Spacey was 26. Jennifer Keller’s diagnosis comes after she spent about five hours cross-examining Rapp on the witness stand over two days — a few feet away from the jury box without wearing a mask.

    • A man who presents himself as an Orthodox Christian monk and an attorney with whom he lived fraudulently obtained $3.5 million in federal pandemic relief funds for nonprofit religious organizations and related businesses they controlled, and spent some of it to fund a “lavish lifestyle,” federal prosecutors said Thursday. Brian Andrew Bushell, 47, and Tracey M.A. Stockton, 64, are charged with conspiracy to commit wire fraud and unlawful monetary transactions, the U.S. attorney’s office in Boston said in a statement, as reported by the AP.

    Here’s what the numbers say:

    The global tally of confirmed cases of COVID-19 topped 623.9 million on Monday, while the death toll rose above 6.56 million, according to data aggregated by Johns Hopkins University.

    The U.S. leads the world with 96.9 million cases and 1,064,821 fatalities.

    The Centers for Disease Control and Prevention’s tracker shows that 226.2 million people living in the U.S., equal to 68.1% of the total population, are fully vaccinated, meaning they have had their primary shots. Just 110.8 million have had a booster, equal to 49% of the vaccinated population, and 25.6 million of those who are eligible for a second booster have had one, equal to 39% of those who received a first booster.

    Some 14.8 million people have had a shot of the new bivalent booster that targets the new omicron subvariants.

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  • Why Kwasi Kwarteng could not survive the battle with the Bank of England

    Why Kwasi Kwarteng could not survive the battle with the Bank of England

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    Jeremy Hunt was appointed U.K. chancellor of the exchequer on Friday after Kwasi Kwarteng was sacked in response to the market’s rebellion over his tax-cutting budget.

    Kwarteng lasted just 38 days, the second shortest tenure for the office in history. It was Prime Minister Liz Truss who wielded the knife. But, arguably, it was Bank of England Governor Andrew Bailey who set up the hit.

    Simply put, in the fight between monetary and fiscal policy, Threadneedle Street has taken out Downing Street. Once Bailey stood his ground, Kwarteng was toast.

    To explain, a quick recap. Kwarteng’s recent budget containing £45 billion in tax cuts, mainly funded by more debt issuance, came at a time when government borrowing costs were already rising as the Bank of England raised interest rates to combat inflation at 40-year highs around 10%.

    Indeed, Kwarteng’s proposals were seen juicing up spending just as the BoE was trying to damp demand in its efforts to push inflation back to the 2% target. The market recognized this dichotomy and rebelled, realizing that it faced more debt sales and even tighter monetary policy.

    The resulting selling by over-leveraged pension funds caused a crash in gilt prices and surging yields to multi-decade highs, threatening to break the U.K pension system. Bailey stepped in to calm the markets by pledging a bond buying package of up to £65 billion — right around the time when he had planned to actually sell gilts as part of quantitative tightening.

    It worked, mostly. But, keen to ensure the City of London would undertake the necessary deleveraging quickly, and it would not be infected with moral hazard, Bailey said the support would end on Friday October 14th.

    And this week he stressed it would definitely end on Friday.

    So, to the present. What Bailey’s insistence meant was that the BoE, via monetary policy, was done helping. If the bond market was still to be worried about the situation when it opened on Monday, then it would have to be the fiscal side that changed.

    And for the fiscal side to shift it would mean the removal of the tax-cutting elements that so rattled investors. Some, like the axing of the top rate of personal tax, had already been reversed. But more needed to be done to try and recover a sense of fiscal prudence.

    And that, inevitably, meant the removal of the author of the budget: Kwarteng.

    Shortly after his departure, Truss announced that she was seeking to calm markets and had decided to cancel the corporation tax cut that had been a cornerstone of the budget. The proposal, delivered just 21 days ago, was now an ideological husk.

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  • Supreme Court refuses to get involved in Trump’s Mar-a-Lago case

    Supreme Court refuses to get involved in Trump’s Mar-a-Lago case

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    WASHINGTON (AP) — The Supreme Court on Thursday rejected former President Donald Trump’s plea to step into the legal fight over the FBI search of his Florida estate.

    The justices did not otherwise comment in turning away Trump’s emergency appeal.

    Trump had pressed the court on an issue relating to classified documents seized in the search authorized by a federal judge of Mar-a-Lago.

    The Trump team was asking the justices to overturn a lower court ruling and permit an independent arbiter, or special master, to review the roughly 100 documents with classified markings that were taken in the Aug. 8 search of Mar-a-Lago.

    A three-judge panel from the Atlanta-based U.S. Court of Appeals for the 11th Circuit last month limited the special master’s review to the much larger tranche of non-classified documents. The judges, including two Trump appointees, sided with the Justice Department, which had argued there was no legal basis for the special master to conduct his own review of the classified records.

    But Trump’s lawyers said in their application to the Supreme Court that it was essential for the special master to have access to the classified records to “determine whether documents bearing classification markings are in fact classified, and regardless of classification, whether those records are personal records or Presidential records.”

    The Justice Department said in a Supreme Court filing that Trump’s request had no merit.

    The FBI says it seized roughly 11,000 documents, including about 100 with classification markings, during its search. The Trump team asked a judge in Florida, Aileen Cannon, to appoint a special master to do an independent review of the records.

    Cannon subsequently assigned a veteran Brooklyn judge, Raymond Dearie, to review the records and segregate those that may be protected by claims of attorney-client privilege and executive privilege. The Justice Department objected to Dearie’s ability to review the classified records, prompting the 11th Circuit to side with the department.

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  • Meet the 10 biggest megadonors for the 2022 midterm elections

    Meet the 10 biggest megadonors for the 2022 midterm elections

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    With four weeks until Election Day, congressional candidates are on track to break midterm fundraising records, having raised nearly $2.5 billion so far this cycle. That’s already 70% more than what was raised during the 2014 cycle and just $200 million shy of the total raised during the full 2018 cycle.

    This cycle has also seen record-shattering outside spending, topping $1 billion through the beginning of October, according to an OpenSecrets estimate.

    The increase in spending and fundraising is due in large part to the involvement of millionaire and billionaire megadonors who have sought to influence the outcome of an election in which both chambers of Congress are in play.

    “When megadonors pump millions of dollars into super PACs, they get to help call the shots,” said Michael Beckel, research director at Issue One, a nonpartisan political reform organization. “Massive spending from a megadonor can influence what issues are talked about on the campaign trail and in Congress.”

    Super PACs are independent political action committees that can raise unlimited sums of money but are not allowed to coordinate with a candidate or campaign. Due to contribution limits, such as those restricting individuals’ candidate contributions to $2,900 per election per candidate, most megadonor spending goes to super PACs.

    More context: These are the basics of campaign finance in 2020 — in two handy charts

    A MarketWatch analysis of Federal Election Commission data through the end of September shows that these 10 business moguls and philanthropists are the biggest federal-level donors this cycle.

    Read: These 3 races could determine whether Democrats or Republicans control the Senate in 2023

    And see: If this seat flips red, Republicans will have ‘probably won a relatively comfortable House majority’

    Top federal-level megadonors this cycle
    Rank

    Contributor

    Total Contributions

    For Republicans

    For Democrats

    Nonpartisan/Bipartisan

    1

    George Soros

    $128,782,000

    $0

    $128,782,000

    $0

    2

    Ken Griffin

    $50,955,800

    $50,955,800

    $0

    $0

    3

    Richard Uihlein

    $49,117,000

    $49,117,000

    $0

    $0

    4

    Sam Bankman-Fried

    $39,931,000

    $201,000

    $37,725,000

    $2,005,000

    5

    Jeff Yass

    $32,754,000

    $32,754,000

    $0

    $0

    6

    Peter Thiel

    $30,189,000

    $30,189,000

    $0

    $0

    7

    Fred Eychaner

    $22,343,000

    $0

    $22,343,000

    $0

    8

    Stephen Schwarzman

    $21,870,000

    $21,865,000

    $0

    $5,000

    9

    Larry Ellison

    $21,003,000

    $21,003,000

    $0

    $0

    10

    Ryan Salame

    $18,932,000

    $17,432,000

    $0

    $1,500,000

    Totals:

    $415,877,000

    $223,517,000

    $188,850,000

    $3,510,000

    Source: MarketWatch analysis of FEC data as of Sept. 30, 2022
    Note: Partisan breakdown includes non-party affiliated PACs with over 95% of their spending benefitting one party, data has been rounded to the nearest thousand

    Big spending by itself doesn’t automatically mean winning. There have been notable instances of the financially strongest candidates losing (such as crypto-backed House candidate Carrick Flynn earlier this year and billionaire Michael Bloomberg’s self-financed presidential bid) — but money can certainly help put a candidate on the right track.

    “Money alone doesn’t guarantee electoral success, but every candidate prefers to be the one with more money to spend,” Beckel said. He added: “Outside spending on behalf of a candidate isn’t a silver bullet that’s going to guarantee electoral success. But it goes a long way to boosting somebody’s name recognition, and to presenting them as a viable candidate — somebody who has the resources to run a competitive campaign.”

    Information about the spending by the top 10 donors this cycle has been compiled from MarketWatch’s analysis of FEC data and filings, super PAC websites and previously reported comments. Read on to find out who are the top 10 biggest donors this cycle.

    10. Ryan Salame — $19 million

    Ryan Salame, the co-CEO of FTX Digital Markets, a subsidiary of cryptocurrency exchange FTX, founded a hybrid PAC earlier this year called American Dream Federal Action. The vast majority ($15 million) of the $19 million Salame has spent this cycle has gone into bankrolling the PAC, which has spent $2.4 million in independent expenditures supporting Illinois Republican Rep. Rodney Davis, $2 million supporting Republican Senate candidate Katie Britt from Alabama, and $1.2 million each supporting Arkansas GOP Sen. John Boozman and Brad Finstad, a GOP congressional candidate in Minnesota.

    On its website, the PAC describes itself as “organization dedicated to electing forward-looking candidates — those who want to protect America’s long term economic and national security by advancing smart policy decisions now.” A representative for Salame didn’t respond to a request for comment.

    9. Lawrence Ellison — $21 million

    The co-founder of Oracle
    ORCL,
    +0.26%

    has similarly bankrolled a PAC this election cycle — giving a total $20 million to Opportunity Matters Fund Inc. The super PAC has largely held onto its funds so far, recent FEC records show, having $17 million cash on hand as of the end of August. Of the independent expenditures it has made this cycle, it spent the most on Georgia Republican Senate candidate Herschel Walker ($1.3 million), Wisconsin Republican Sen. Ron Johnson ($1.3 million) and North Carolina Senate candidate and current Republican Rep. Ted Budd ($1.1 million). A representative for Ellison didn’t respond to a request for comment.

    8. Stephen Schwarzman — $22 million

    Billionaire Stephen Schwarzman, the CEO of private-equity giant Blackstone
    BX,
    -2.41%
    ,
    is the eighth biggest donor at the federal level this cycle. In March, Schwarzman gave $10 million to both the Senate Leadership Fund and Congressional Leadership Fund, super PACs aimed at obtaining a Republican majority in the Senate and House, respectively. A representative for Schwarzman didn’t respond to a request for comment.

    7. Fred Eychaner — $22 million

    Fred Eychaner has also contributed $22 million so far this cycle, but unlike most of the spending on this list, his has been directed toward Democratic causes. The chairman of Chicago-based Newsweb Corporation has given $9 million to the House Majority PAC and $8 million to the Senate Majority PAC, as well as just under $1.5 million to the Democratic National Committee and several hundred thousands to the Democratic Congressional Campaign Committee and Democratic Senatorial Campaign Committee. A representative for Eychaner didn’t respond to a request for comment.

    6. Peter Thiel — $30 million

    Venture capitalist Peter Thiel was heavily involved in backing Ohio Republican J.D. Vance’s primary bid, giving $15 million in the spring to the Vance-aligned Protect Ohio Values PAC.

    The massive primary investment was “historic” and record-setting, according to Beckel, who added that Thiel’s involvement in the Ohio Senate primary could mark “a new chapter of how mega donors are choosing to play in politics.”

    “I think it’s become clear for a lot of megadonors that there are high stakes to a lot of primaries, and by spending in the primary, where there is typically lower turnout than in say, a statewide general election, they can get a lot of bang for their buck by investing in a primary election,” Beckel added.

    Thiel has indicated that he doesn’t intend to put any more money toward Vance’s bid as he reportedly believes the Ohio candidate is on track to win, and instead will focus his funding on Arizona Republican Blake Masters’ bid to oust Democratic Sen. Mark Kelly in the final weeks leading up to the midterm election.

    Thiel, known for his roles in PayPal
    PYPL,
    -1.69%
    ,
    Palantir
    PLTR,
    -0.25%

    and Facebook
    META,
    -3.92%
    ,
    has also given a total $15 million to the Masters-aligned PAC, Saving Arizona, with his most recent contribution in July. Both Vance and Masters are venture capitalists, but Masters has worked with Thiel. He served as chief operating officer of Thiel Capital and president of the Thiel Foundation, and he co-authored a book on startups with Thiel in 2014. A representative for Thiel didn’t respond to a request for comment.

    5. Jeff Yass — $33 million

    Options trader Jeff Yass, who founded trading firm Susquehanna International Group, has contributed about $33 million on a federal level this cycle. Yass has given $15 million to the School Freedom Fund, or the equivalent of 97% of the PAC’s total fundraising. The group focuses on the issue of school choice, and its website states that some bureaucrats “hindered the development and education of our youth through school closures, mask mandates, critical race theory, and more.”

    Aside from the School Freedom Fund, Yass’ other biggest contributions are to the conservative Club for Action ($6.5 million), Kentucky Freedom ($5 million), Protect Freedom ($2 million) and Crypto Freedom ($1.9 million). A representative for Yass didn’t respond to a request for comment.

    4. Sam Bankman-Fried — $40 million

    Sam Bankman-Fried, the founder and CEO of FTX, is the main funder behind Protect Our Future PAC, giving it $27 million of the $28 million it raised this cycle. 

    The organization says on its website that it focuses on promoting Democratic candidates championing pandemic preparedness and prevention “so this is the last time in our lifetime, and our children’s lifetimes, that we will face the devastation that has gripped communities across the U.S. since 2020.”

    The group spent more than $10 million supporting Democrat Carrick Flynn’s House bid in Oregon. Flynn lost his primary in May by 18 points despite his massive outside spending advantage. In addition to Flynn, the group has made over $1 million in independent expenditures each supporting Democratic congressional candidates Lucy McBath, a current representative from Georgia; Jasmine Crockett of Texas, Adam Hollier of Michigan, Valerie Foushee of North Carolina and Shontel Brown, a current representative from Ohio.

    Most of the other $10 million Bankman-Fried spent this cycle has gone to the House Majority PAC ($6 million) and the crypto PAC GMI ($2 million).

    While the vast majority of his spending has supported Democratic candidates and causes, Bankman-Fried does not classify himself as an exclusively Democratic donor — for instance he gave $105,000 to the Alabama Conservatives Fund in June and $45,000 to the NRCC in July. 

    He told Politico in August that he is “legitimately worried about doing things that will make people view me as partisan when it’s not how I feel … because I think it both misses what I’m trying to do and makes it harder for me to act constructively.” A representative for the FTX boss didn’t respond to a request for comment.

    3. Richard Uihlein — $49 million

    Richard Uihlein is the founder of the shipping and business supply company Uline, and is a longtime conservative donor. This cycle has seen nearly $50 million in political spending by him, with just over half of it going to Club for Growth Action. Uihlein has also given about $14 million to Restoration PAC, an organization that says it is “dedicated to strengthening the foundations that made America the greatest nation in the world: God, family, education, and community.”

    Uihlein’s next largest contributions are to the conservative Team PAC ($2.5 million) and the Arkansas Patriots Fund ($2.2 million), which earlier this year made ad buys favoring Republican Sen. John Boozman’s primary opponent. A representative for Uihlein didn’t respond to a request for comment.

    2. Ken Griffin — $51 million

    With $51 million in federal-level political spending, Ken Griffin, CEO of hedge fund Citadel, is the second most prolific donor this cycle.

    The biggest beneficiaries are the Republican-aligned Congressional Leadership Fund with $18.5 million in contributions, the Senate Leadership Fund with $10 million and Honor Pennsylvania, a super PAC that backed Republican Dave McCormick’s Senate bid. McCormick lost in the primary to Mehmet Oz by less than a thousand votes. 

    While Griffin spent about $64 million during the last cycle, his $51 million figure this year marks by far the most he has spent during a midterm cycle. During the 2018 cycle, his contributions totaled less than $8 million.

    A spokesperson for Griffin told MarketWatch that Griffin “supports leaders who are committed to protecting the American Dream and pursuing policies that will create a better future for the United States.”

    “The right policies will focus on creating rewarding jobs, prioritizing public safety, and investing in a strong national defense,” his spokesperson said. “Preserving the American Dream will require that every child is well educated, can access great healthcare, and has the opportunity to succeed.”

    1. George Soros — $129 million

    Not one donor comes close to matching the sum that billionaire philanthropist George Soros has contributed this cycle: $129 million. However, much of that money hasn’t actually been put to work this cycle.

    The majority of those on this list have focused their funding on Republican causes, but Soros’ money has gone to Democratic groups — specifically Democracy PAC II, whose $125 million in contributions comprises 99% of its fundraising. The super PAC spent more than $80 million on Democratic groups and candidates during the 2020 election.

    A representative for Soros pointed MarketWatch to a Politico article from January, in which Soros said the $125 million is aimed at supporting pro-democracy “causes and candidates, regardless of political party” who are invested in “strengthening the infrastructure of American democracy: voting rights and civic participation, civil rights and liberties, and the rule of law” and called his contribution a “long-term investment” that will  support political work beyond this year.

    So far this cycle, Democracy PAC has spent very little and holds $113 million in available cash. Contributions the PAC has made this cycle include $5 million to the Senate Majority PAC, $2.5 million to One Georgia and $1 million to both Care in Action and House Majority PAC.

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  • Israel says it’s reached maritime border deal with Lebanon

    Israel says it’s reached maritime border deal with Lebanon

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    JERUSALEM (AP) — Israel’s prime minister said Tuesday that the country has reached an “historic agreement” with neighboring Lebanon over their shared maritime border after months of U.S.-brokered negotiations.

    At stake are rights over exploiting undersea natural gas reserves in areas of the eastern Mediterranean that the two countries — which do not have diplomatic relations — claim.

    Premier Yair Lapid called the deal an “historic achievement that will strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border.”

    The agreement is expected to enable additional natural gas production in the Mediterranean. Lebanon hopes gas exploration will help lift its country out of its spiraling economic crisis.

    The final draft of the agreement will be brought before Israel’s caretaker government for approval, just weeks before the country goes to the polls for the fifth time in under four years.

    Lebanon and Israel have been officially at war since Israel’s creation in 1948 and both countries claim some 860 square kilometers (330 square miles) of the Mediterranean Sea.

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  • Putin says military strikes against Ukraine were retaliation for bridge attack

    Putin says military strikes against Ukraine were retaliation for bridge attack

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    MOSCOW — Russian President Vladimir Putin said that a series of strikes Monday across Ukraine came in retaliation against the Ukrainian attack on a bridge to Crimea and other attacks in Russia that he described as “terrorist” actions.

    Putin said the Russian military launched precision weapons from the air, sea and ground to target key energy and military command facilities.

    He warned that if Ukraine continues to mount “terrorist attacks” on Russia, Moscow’s response will be “tough and proportionate to the level of threats.”

    The intense, hours-long attack marked a sudden military escalation by Moscow. It came a day after Putin called the explosion Saturday on the huge bridge connecting Russia to its annexed territory of Crimea a “terrorist act” masterminded by Ukrainian special services.

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  • Russia says truck bomb damages key bridge to Crimea

    Russia says truck bomb damages key bridge to Crimea

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    KHARKIV, Ukraine (AP) — Russian authorities said that a truck bomb on Saturday caused a fire and the collapse of a section of a bridge linking Russia-annexed Crimea with Russia — a key supply artery for Moscow’s faltering war effort in southern Ukraine.

    The attack on the bridge comes a day after Russian President Vladimir Putin turned 70, dealing him a humiliating blow that could lead him to up the ante in his war on Ukraine.

    Russia’s National Anti-Terrorism Committee said that the truck bomb caused seven railway cars carrying fuel to catch fire, resulting in a “partial collapse of two sections of the bridge.” The committee didn’t immediately apportion blame.

    The Crimean Peninsula holds symbolic value for Russia and is key to sustaining its military operations in the south. If the bridge is made inoperable, it would make it significantly more challenging to ferry supplies to the peninsula. While Russia seized the areas north of Crimea early during the invasion and built a land corridor to it along the Sea of Azov, Ukraine is pressing a counteroffensive to reclaim them.

    The bridge has train and automobile sections. Russia’s National Anti-Terrorism Committee specified that the explosion and fire led to the collapse of the two sections of one of the two links of the automobile bridge, while another link was intact.

    Authorities have suspended commuter train traffic across the bridge until further notice. Putin was informed about the explosion and he ordered the creation of a government panel to deal with the emergency.

    The 19-kilometer (12-mile) bridge across the Kerch Strait linking the Black Sea and the Sea of Azov is the longest in Europe. It has provided an essential link to the Crimean Peninsula, which Russia annexed from Ukraine in 2014. Ukrainian officials have repeatedly threatened to strike the bridge.

    Russia opened the first part of the span to car traffic in May 2018. The parallel bridge for rail traffic opened the following year.

    The $3.6 billion project is a tangible symbol of Moscow’s claims on Crimea. It was Russia’s only land link to the peninsula until Russian forces seized more Ukrainian territory on the northern end of the Sea of Azov in heavy fighting, particularly around the city of Mariupol, earlier this year.

    In August, Russia suffered a series of explosions at an airbase and munitions depot in Crimea, which underlined its vulnerability.

    The truck bomb on the bridge occurred hours after explosions rocked the eastern Ukrainian city of Kharkiv early Saturday, sending towering plumes of smoke into the sky and triggering a series of secondary explosions.

    Kharkiv Mayor Ihor Terekhov said on Telegram that the early-morning explosions were the result of missile strikes in the center of the city. He said that the blasts sparked fires at one of the city’s medical institutions and a nonresidential building. There were no immediate reports of casualties.

    The blasts came hours after Russia concentrated attacks in its increasingly troubled invasion of Ukraine on areas it illegally annexed, while the death toll from earlier missile strikes on apartment buildings in the southern city of Zaporizhzhia rose to 14.

    On Friday, the Norwegian Nobel Committee awarded the Nobel Peace Prize to human rights organizations in his Russia and Ukraine, and to an activist jailed in Belarus, an ally of Moscow.

    Berit Reiss-Andersen, the committee’s chair, said the honor went to “three outstanding champions of human rights, democracy and peaceful coexistence,” though it was widely seen as a rebuke to Putin and his conduct of Europe’s worst armed conflict since World War II.

    Putin signed documents on Wednesday to illegally claim four regions of Ukraine as Russian territory, including the Zaporizhzhia region that is home to Europe’s largest nuclear power plant, whose reactors were shut down last month.

    That move was foreshadowed by Russia’s annexation of Crimea in March 2014, which was carried out after Moscow alleged residents of the peninsula had voted to join with Russia. That move was widely condemned, and prompted sanctions from the U.S. and the European Union.

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  • CDC scraps travel health notices as countries slow testing, and study confirms Republican-leaning counties suffered more COVID deaths than Democrat-leaning ones

    CDC scraps travel health notices as countries slow testing, and study confirms Republican-leaning counties suffered more COVID deaths than Democrat-leaning ones

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    The U.S. Centers for Disease Control and Prevention has dropped its country-by-country COVID-19 travel health notices that it began issuing early in the pandemic, the Associated Press reported. 

    The reason: Fewer countries are testing for the virus or reporting the number of COVID cases. That limits the CDC’s ability to calculate travelers’ risk, according to the agency.

    CDC spokeswoman Kristen Nordlund said the agency will only post a travel health notice for an individual country if a situation such as a troubling new variant of the virus changes CDC travel recommendations for that country.

    The CDC still recommends that travelers remain up-to-date on vaccines and follow recommendations found on its international travel page.

    From the CDC: Stay Up to Date with COVID-19 Vaccines Including Boosters

    A new study from the National Bureau of Economic Research has confirmed that political affiliations played a key role as a risk factor for dying of COVID, finding evidence that Republican-leaning counties suffered higher death rates than Democratic-leaning ones.

    “We estimate substantially higher excess death rates for registered
    Republicans when compared to registered Democrats, with almost all of the difference concentrated in the period after vaccines were widely available in our study states,” the authors, Jacob Wallace and Jason L. Schwartz of the Yale School of Public Health, and Paul Goldsmith-Pinkham of the Yale School of Management wrote.

    “Overall, the excess death rate for Republicans was 5.4 percentage points (pp), or 76%, higher than the excess death rate for Democrats.”

    The researchers used data from Ohio and Florida and matched 2017 voter registration data with mortality data from 2018 to 2021. They also found a link between political affiliation and views on vaccines, with Republican-leaning counties showing far lower vaccination rates.


    Source: NBER paper

    In the U.S., known cases of COVID are continuing to ease and now stand at their lowest level since late April, although the true tally is likely higher given how many people are testing at home, where the data are not being collected.

    The daily average for new cases stood at 45,495 on Monday, according to a New York Times tracker, down 24% from two weeks ago. Cases are rising in 11 states plus Washington, D.C. They are up by double-digit percentages in Rhode Island, Massachusetts and Vermont.

    The daily average for hospitalizations was down 11% at 27,854, while the daily average for deaths is down 12% to 386. 

    Coronavirus Update: MarketWatch’s daily roundup has been curating and reporting all the latest developments every weekday since the coronavirus pandemic began

    Other COVID-19 news you should know about:

    • Norwegian Cruise Line Holdings Ltd.
    NCLH,
    +16.84%

    is removing all COVID testing, vaccination and masking requirements from its health and safety protocols. The company said the new protocols, which follows “significant, positive progress” in the public health environment, will be effective Oct. 4. “Health and safety are always our first priority; in fact, we were the health and safety leaders from the very start of the pandemic,” said Chief Executive Harry Sommer. “Many travelers have been patiently waiting to take their long-awaited vacation at sea and we cannot wait to celebrate their return.” 

    See also: Would you take a cruise without such COVID-19 testing, vaccination and masks? MarketWatch asked health experts to weigh in.

    • Ringo Starr has test positive for COVID, forcing the former Beatle to cancel scheduled concerts in Canada with his All Starr Band, the AP reported. Five concert dates from Tuesday to Sunday — in Winnipeg, Manitoba; Saskatoon, Saskatchewan; Lethbridge, Alberta; and the British Columbia cities of Abbotsford and Penticton — will be rescheduled. “Ringo hopes to resume as soon as possible and is recovering at home. As always, he and the All Starrs send peace and love to their fans and hope to see them back out on the road soon,” said a statement from the band.

    The new bivalent vaccine might be the first step in developing annual Covid shots, which could follow a similar process to the one used to update flu vaccines every year. Here’s what that process looks like, and why applying it to Covid could be challenging. Illustration: Ryan Trefes

    • A federal appeals court in New Orleans on Monday became the latest to hear arguments on whether President Joe Biden overstepped his authority with an order that federal contractors require that their employees be vaccinated against COVID, the AP reported separately. The contractor mandate has a complicated legal history. It is being challenged in more than a dozen federal court districts, and the mandate has been blocked or partially blocked in 25 states. 

    • The Chinese resort city of Sanya has ordered all tourists to take PCR tests, and those who fail to do so by noon on Tuesday will be slapped with a yellow code restricting their mobility, according to local officials, the South China Morning Post reported. The city in the southern province of Hainan logged two asymptomatic Covid-19 cases on Monday. It carried out a round of mass testing and locked down several areas in Haitang district, including a scenic island that received around 2,000 tourists on Monday.

    Here’s what the numbers say:

    The global tally of confirmed cases of COVID-19 topped 618.7 million on Tuesday, while the death toll rose above 6.54 million, according to data aggregated by Johns Hopkins University.

    The U.S. leads the world with 96.4 million cases and 1,059,888 fatalities.

    The Centers for Disease Control and Prevention’s tracker shows that 225.3 million people living in the U.S., equal to 67.9% of the total population, are fully vaccinated, meaning they have had their primary shots. Just 109.9 million have had a booster, equal to 48.8% of the vaccinated population, and 23.9 million of those who are eligible for a second booster have had one, equal to 36.6% of those who received a first booster.

    Some 7.6 million people have had a shot of the new bivalent booster that targets the new omicron subvariants that have become dominant around the world.

     

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