A top-secret U.S. Navy listening system detected the implosion of the tourist submersible Titan shortly after its disappearance Sunday, the Wall Street Journal reported Thursday.
According to the report, the unnamed, highly sensitive acoustic-detection system — used to spot enemy submarines — heard a sound consistent with an underwater implosion around the time the submersible went missing, and in the area where a debris field was found Thursday.
The federal criminal indictment against former-president Donald Trump alleging he illegally kept classified documents after leaving the White House reads like a textbook manual on how not to handle top-secret files.
Federal prosecutors from special counsel Jack Smith’s office detail a litany of alleged missteps, willful obfuscation and breaches of security in how Trump stored, shared and even tried to hide from investigators what he had taken with him when he left office in 2020.
On Friday, a federal judge in Florida unsealed the 37-count indictment against Trump on charges of willful retention of national defense information, conspiracy to obstruct justice, withholding a document or record, corruptly concealing a document or record, scheming to conceal and making false statements and representations.
Trump has insisted he is innocent and has vowed to fight in court.
Here are six of the most serious allegations contained in the 49-page indictment:
Prosecutors were vague about exactly what kind of classified information was contained in the files Trump allegedly retained upon leaving office, but they did provide broad descriptions of what type of material was there, including sensitive details about national defense.
Other categories included:
Prosecutors allege that Trump was extremely careless in how he stored dozens of boxes which contained hundreds of classified documents that he took with him from the White House to his residence at the Mar-a-Lago social club in Palm Beach, Fla.
At various points over the two years Trump kept the papers, the boxes were kept on a stage in a public ballroom, in a bathroom and shower, his home office, his bedroom and an unsecured storage room adjacent to a closet where bottles of liquor were stored.
In one episode, a Trump staffer found a stack of boxes had fallen over in the storage room, spilling documents marked as classified onto the floor.
On at least two occasions, Trump showed off certain classified documents to people who lacked any kind of security clearance, including a writer working on a book and a representative of a political action committee.
In July 2021, prosecutors say Trump whipped out a classified document detailing a proposed plan of attack on a foreign country.
“Look what I found, this was [the senior military official’s] plan of attack, read it and just show … it’s interesting,” Trump was recorded as saying, according to the indictment.
“It is like, highly confidential,” he allegedly said. “Secret. This is secret information.”
Two months later, Trump allegedly showed a classified map of a foreign country where fighting is ongoing to a representative of his political action committee. Trump noted that “he should not be showing the map,” and warned the official “not to get too close.”
After receiving subpoenas demanding he return all the classified material he had taken with him, Trump asked his lawyers if they could just not send it all back, or tell the government that they went through all the boxes and hadn’t found anything.
“Well, what if we, what happens if we don’t respond at all or don’t play ball with them?” Trump is quoted as saying by federal prosecutors.
“Wouldn’t it be better if we just told them we didn’t have anything here?” Trump asked, according to the indictment.
“Well look, isn’t it better if there are no documents?” he further asked, the court documents claimed.
Later, after Trump’s lawyers had gone through the boxes and uncovered dozens of classified documents, Trump allegedly asked if they could just make anything really damning disappear, the court filing said.
“He made a funny motion as though —well okay, why don’t you take them with you to your hotel room and if there is anything really bad in there, like, you know, pluck it out. And that was the motion he made. He didn’t say that,” one of the lawyers, who was not named in the filing, was quoted as telling prosecutors.
The documents investigators recovered came from a wide gamut of U.S. government agencies, the indictment said, including:
Prosecutors say that Trump purposefully worked with his personal valet to hide boxes of documents from his own lawyers as they worked to return classified material to the government.
During a 10-day period in the late spring of 2021, prosecutors say Trump’s valet, Waltine Nauta, moved 64 boxes from a storage room to Trump’s office for him to go through before his lawyers could examine them. Prosecutors say Nauta later moved just 30 boxes back to the storage for the lawyers to sift through. Some of those boxes were later sent to Trump’s other home in Bedminster, N.J.
Nauta has also been charged with conspiracy to obstruct justice, withholding a document or record, corruptly concealing a document or record, concealing a document in a federal investigation, scheming to conceal and making false statements or representations.
Defense spending is on the rise around the globe. That’s good for Lockheed Martin’s business, but investors should still brace for a sales “miss” when the company reports first-quarter earnings on Tuesday morning.
Wall Street is looking for per-share earnings of $6.05 from $15 billion in sales. A year ago,
Lockheed
(ticker: LMT) reported per-share earnings of $6.44 from sales of just under $15 billion.
THE HAGUE (AP) — The International Criminal Court said Friday it has issued an arrest warrant for Russian President Vladimir Putin for war crimes because of his alleged involvement in abductions of children from Ukraine.
The court said in a statement that Putin “is allegedly responsible for the war crime of unlawful deportation of population (children) and that of unlawful transfer of population (children) from occupied areas of Ukraine to the Russian Federation.”
It also issued a warrant Friday for the arrest of Maria Alekseyevna Lvova-Belova, the Commissioner for Children’s Rights in the Office of the President of the Russian Federation, on similar allegations.
The court’s president, Piotr Hofmanski, said in a video statement that while the ICC’s judges have issued the warrants, it will be up to the international community to enforce them. The court has no police force of its own to enforce warrants.
“The ICC is doing its part of work as a court of law. The judges issued arrest warrants. The execution depends on international cooperation.”
A possible trial of any Russians at the ICC remains a long way off, as Moscow does recognize the court’s jurisdiction — a position reaffirmed earlier this week by Kremlin spokesman Dmitry Peskov — and does not extradite its nationals.
Ukraine also is not a member of the court, but it has granted the ICC jurisdiction over its territory and ICC prosecutor Karim Khan has visited four times since opening an investigation a year ago.
The ICC said that its pretrial chamber found there were “reasonable grounds to believe that each suspect bears responsibility for the war crime of unlawful deportation of population and that of unlawful transfer of population from occupied areas of Ukraine to the Russian Federation, in prejudice of Ukrainian children.”
The court statement said that “there are reasonable grounds to believe that Mr Putin bears individual criminal responsibility” for the child abductions “for having committed the acts directly, jointly with others and/or through others [and] for his failure to exercise control properly over civilian and military subordinates who committed the acts.”
From the archives (February 2023): Russia has committed crimes against humanity in Ukraine, U.S. Vice President Harris says
On Thursday, a U.N.-backed inquiry cited Russian attacks against civilians in Ukraine, including systematic torture and killing in occupied regions, among potential issues that amount to war crimes and possibly crimes against humanity.
The sweeping investigation also found crimes committed against Ukrainians on Russian territory, including deported Ukrainian children who were prevented from reuniting with their families, a “filtration” system aimed at singling out Ukrainians for detention, and torture and inhumane detention conditions.
But on Friday, the ICC put the face of Putin on the child abduction allegations.
Read on:
President Recep Tayyip Erdoğan of Turkey said Friday that his government would move forward with ratifying Finland’s NATO application, paving the way for the country to join the military bloc ahead of Sweden.
The breakthrough came as Finnish President Sauli Niinisto was in Ankara to meet with Erdoğan. Both Finland and Sweden applied to become NATO members 10 months ago in the wake of Russia’s invasion of Ukraine, abandoning decades of nonalignment.
NATO requires the unanimous approval of its 30 existing members to expand, and Turkey and Hungary are the only countries that have not yet ratified the Nordic nations’ bids. The Turkish government accused both Sweden and Finland of being too soft on groups that it deems to be terror organizations, but it has more stridently expressed its reservations about Sweden.
Also: Erdoğan suggests Turkey will not support Sweden’s bid to join NATO
“When it comes to fulfilling its pledges in the trilateral memorandum of understanding, we have seen that Finland has taken authentic and concrete steps,” Erdoğan told a news conference in Ankara following his meeting with Niinisto.
“This sensitivity for our country’s security and, based on the progress that has been made in the protocol for Finland’s accession to NATO, we have decided to initiate the ratification process in our parliament,” the Turkish president added.
With Erdoğan’s agreement, Finland’s application can now go to the Turkish parliament, where the president’s party and its allies hold a majority. Ratification is expected before Turkey holds its presidential and parliamentary elections scheduled for May 14.
Erdoğan suggested Wednesday that his country might take up Finland’s accession following Niinisto’s trip.
Turkey, Finland and Sweden signed an agreement in June of last year to resolve differences over the Nordic states’ membership.
The document included clauses addressing Ankara’s claims that Stockholm and Helsinki did not take seriously enough its concerns with those it considers terrorists, particularly supporters of Kurdish militants who have waged a 39-year insurgency in Turkey and people Ankara associates with a 2016 coup attempt.
A series of separate demonstrations in Stockholm, including a protest by an anti-Islam activist who burned the Quran outside the Turkish Embassy, also angered Turkish officials.
Hungarian Prime Minister Viktor Orbán and lawmakers have repeatedly promised to ratify the two countries’ NATO membership applications. But the country’s parliament has repeatedly postponed a ratification vote and hasn’t given a firm date on when the vote would take place.
From the archives (March 2022): Hungary’s Orbán resists emotional appeal by Zelensky to provide weapons to Ukraine and enforce sanctions against Russia
Also see (February 2022): Russian invasion of Ukraine appears to have alienated Putin’s few friends among the Western allies
Plus (May 2022): ‘Orbánization’? CPAC convenes in Budapest as American right’s embrace of Hungarian autocrat Orbán’s ‘illiberal democracy’ model tightens
Erdoğan on Wednesday suggested that his country may soon agree to Finland’s application to join NATO. Turkish officials previously said that Finland joining ahead of Sweden was a more likely outcome.
Niinisto arrived in Turkey on Thursday and toured areas affected by a magnitude 7.8 earthquake that killed more than 52,000 people in Turkey and Syria last month.
“I have known Erdogan for a long time. I am sure he has important messages,” Niinisto said Thursday while visiting Kahramanmaras, one of the provinces worst-hit by the Feb. 6 earthquake.
See: Blinken tours devastation from Turkey quake, pledges $100 million more in aid
Before leaving Helsinki, Niinisto said Turkish officials had requested his presence in Ankara to announce Turkey’s decision on the Finnish bid. He also stressed his support for Sweden’s swift admission and in a Twitter post said he had had a “good conversation” with Swedish Prime Minister Ulf Kristersson prior to his Turkey trip.
Kristersson said Sweden hoped for “a rapid ratification process” after Turkey’s May 14 presidential and parliamentary elections.
Read on: Senate panel in U.S. easily approves bids by Sweden, Finland to join NATO
President Joe Biden said on Saturday that he ordered U.S. officials to shoot down the suspected Chinese spy balloon earlier this week and that national-security leaders decided the best time for the operation was when the the object was over water.
“They successfully took it down, and I want to compliment our aviators who did it,” Biden said after getting off Air Force One en route to Camp David.
Fighter jets shot down the giant white balloon off the Carolina coast after it apparently traversed sensitive military sites across North America, prompting the postponement of a high-level U.S. diplomatic trip to China and becoming the latest flashpoint in the prevailing tense tone between Washington and Beijing.
“ In preparation for the operation, the Federal Aviation Administration temporarily closed airspace over the Carolina coastline, including the Charleston and Myrtle Beach airports in South Carolina and the Wilmington airport in North Carolina. ”
Defense Secretary Lloyd Austin said in a statement that Biden approved the shoot-down on Wednesday, saying it should be done “as soon as the mission could be accomplished without undue risk to American lives under the balloon’s path.”
Austin said that, due to the size and altitude of the balloon, which was floating at an altitude of about 60,000 feet, the military had determined that taking it down over land would pose an undue risk to people on the ground.
The balloon was observed Saturday morning over the Carolinas as it approached the Atlantic coast.
In preparation for the operation, the Federal Aviation Administration temporarily closed airspace over the Carolina coastline, including the Charleston and Myrtle Beach airports in South Carolina and the Wilmington airport in North Carolina. The FAA rerouted air traffic from the area and warned of delays as a result of the flight restrictions.
An operation was underway in U.S. territorial waters in the Atlantic Ocean to recover debris from the balloon, which had been estimated to be about the size of three school buses. CNN reported that, according to a senior military source, Navy divers and unmanned vessels were among the assets deployed for the recovery effort, primarily, according to the source, in 47-foot-deep water.
The balloon was downed by Air Force fighter aircraft, according to two officials who were not authorized to publicly discuss the matter and spoke on condition of anonymity. CNN reported having been informed that a single missile fired by one of the U.S. jets had brought the balloon down.
Television footage showed a small explosion, followed by the balloon descending toward the water. U.S. military jets were seen flying in the vicinity and ships were deployed in the water to mount the recovery operation.
A South Carolina man posted video that appeared to capture the event as it unfolded. He told CNN he was a social-studies teacher and that his fiancée had recommended he point his camera at the object in advance of its downing.
Officials were aiming to time the operation so they could recover as much of the debris as possible before it sinks into the ocean. The Pentagon had previously estimated that any debris field would be substantial.
The balloon was first spotted over Montana, which is home to one of America’s three nuclear-missile silo fields at Malmstrom Air Force Base.
Biden had explored ordering the downing of the balloon over land when he was first briefed on it Tuesday, but Pentagon officials advised against that course of action, warning that the potential risk to people on the ground outweighed an assessment of potential Chinese intelligence gains.
The public disclosure of the balloon’s travels this week prompted the cancellation of a visit by U.S. Secretary of State Antony Blinken to Beijing that had been scheduled for Sunday for talks aimed at reducing U.S.-China tensions.
The Chinese government on Saturday sought to play down that cancellation. “In actuality, the U.S. and China have never announced any visit, the U.S. making any such announcement is their own business, and we respect that,” China’s Ministry of Foreign Affairs said in a statement Saturday morning.
China has continued to claim that the balloon was merely a weather research “airship” that had been blown off course. The Pentagon rejected that claim out of hand — as well as China’s contention that it was not being used for surveillance and had only limited navigational ability.
The Pentagon also acknowledged reports of a second balloon flying over Latin America. “We now assess it is another Chinese surveillance balloon,” Brig. Gen. Pat Ryder, Pentagon press secretary, said in a statement. China’s Ministry of Foreign Affairs did not immediately respond to a question about the second balloon.
Blinken, who had been due to depart Washington for Beijing late Friday, said he had told senior Chinese diplomat Wang Yi in a phone call that sending the balloon over the U.S. was “an irresponsible act and that [China’s] decision to take this action on the eve of my visit is detrimental to the substantive discussions that we were prepared to have.”
Uncensored reactions on the Chinese internet mirrored the official government stance that the U.S. was overhyping the situation. Some used it as a chance to poke fun at U.S. defenses, saying it couldn’t even defend against a balloon, and nationalist influencers leapt to use the news to mock the U.S.
Republican politicians in the U.S. sought to characterize Biden’s and the Pentagon’s decision to monitor the balloon until it reached a location where it could be safely targeted militarily as kowtowing to the Chinese.
China has denied any claims of spying and said it was a civilian-use balloon intended for meteorology research. The Ministry of Foreign Affairs emphasized that the balloon’s journey was out of its control and urged the U.S. not to “smear” it based on an isolated balloon incident.
MarketWatch contributed.
WASHINGTON — The U.S. is tracking a suspected Chinese surveillance balloon that has been spotted over U.S. airspace for a couple days, but the Pentagon decided not to shoot it down due to risks of harm for people on the ground, officials said Thursday. The discovery of the balloon puts a further strain on U.S.-China relations at a time of heightened tensions.
A senior defense official told Pentagon reporters that the U.S. has “very high confidence” it is a Chinese high-altitude balloon and it was flying over sensitive sites to collect information. One of the places the balloon was spotted was Montana, which is home to one of the nation’s three nuclear missile silo fields at Malmstrom Air Force Base. The official spoke on condition of anonymity to discuss sensitive information.
Brig. Gen. Patrick Ryder, Pentagon press secretary, provided a brief statement on the issue, saying the government continues to track the balloon. He said it is “currently traveling at an altitude well above commercial air traffic and does not present a military or physical threat to people on the ground.”
He said similar balloon activity has been seen in the past several years. He added that the U.S. took steps to ensure it did not collect sensitive information.
The defense official said the U.S. has “engaged” Chinese officials through multiple channels and communicated the seriousness of the matter.
The incident comes as Secretary of State Antony Blinken was supposed to make his first trip to Beijing, expected this weekend, to try to find some common ground. Although the trip has not been formally announced, both Beijing and Washington have been talking about his imminent arrival.
It was not immediately clear if the discovery of the balloon would impact Blinken’s travel plans.
The senior defense official said the U.S. did get fighter jets, including F-22s, ready to shoot down the balloon if ordered to by the White House. The Pentagon ultimately recommended against it, noting that even as the balloon was over a sparsely populated area of Montana, its size would create a debris field large enough that it could have put people at risk.
It was not clear what the military was doing to prevent it from collecting sensitive information or what will happen with the balloon if it isn’t shot down.
The defense official said the spy balloon was trying to fly over the Montana missile fields, but the U.S. has assessed that the balloon has “limited” value in terms of providing China intelligence it couldn’t already collect by other means, such through spy satellites.
The official would not specify the size of the balloon, but said it was large enough that despite its high altitude, commercial pilots could see it. All air traffic was halted at Montana’s Billings Logan International Airport from 1:30 p.m. to 3:30 p.m. Wednesday, as the military provided options to the White House.
A photograph of a large white balloon lingering over the area was captured by The Billings Gazette, but the Pentagon would not confirm if that was the surveillance balloon. The balloon could be seen drifting in and out of clouds and had what appeared to be a solar array hanging from the bottom, said Gazette photographer Larry Mayer.
The defense official said what concerned them about this launch was the altitude the balloon was flying at and the length of time it lingered over a location, without providing specifics.
Montana Gov. Greg Gianforte said he was briefed Wednesday about the situation after the Montana National Guard was notified of an ongoing military operation taking place in Montana airspace, according to a statement from the Republican governor and spokesperson Brooke Stroyke.
“From the spy balloon to the Chinese Communist Party spying on Americans through TikTok to CCP-linked companies buying American farmland, I’m deeply troubled by the constant stream of alarming developments for our national security,” Gianforte said in a statement.
Tensions with China are particularly high on numerous issues, ranging from Taiwan and the South China Sea to human rights in China’s western Xinjiang region and the clampdown on democracy activists in Hong Kong. Not least on that list of irritants are China’s tacit support for Russia’s invasion of Ukraine, its refusal to rein in North Korea’s expanding ballistic missile program and ongoing disputes over trade and technology.
On Tuesday, Taiwan scrambled fighter jets, put its navy on alert and activated missile systems in response to nearby operations by 34 Chinese military aircraft and nine warships that are part Beijing’s strategy to unsettle and intimidate the self-governing island democracy.
Twenty of those aircraft crossed the central line in the Taiwan Strait that has long been an unofficial buffer zone between the two sides, which separated during a civil war in 1949.
Beijing has also increased preparations for a potential blockade or military action against Taiwan, which has stirred increasing concern among military leaders, diplomats and elected officials in the U.S., Taiwan’s key ally.
The surveillance balloon was first reported by NBC News.
Some Montana residents reported seeing an unusual object in the sky around the time of the airport shutdown Wednesday, but it’s not clear that what they were seeing was the balloon.
From an office window in Billings, Chase Doak said he saw a “big white circle in the sky” that he said was too small to be the moon.
He took some photos, then ran home to get a camera with a stronger lens and took more photos and video. He could see it for about 45 minutes and it appeared stationary, but Doak said the video suggested it was slowly moving.
“I thought maybe it was a legitimate UFO,” he said. “So I wanted to make sure I documented it and took as many photos as I could.”
The world is in greater danger in 2023 than it has been at any moment over the past seven decades, warns a leading panel of scientists and security experts.
The illegal Russian-Ukraine conflict and its risk that nuclear weapons could be used was a primary, but not exclusive, catalyst in bumping forward the hands on the symbolic measure known as the “Doomsday Clock.”
The…
Most investors want to keep things simple, but digging a bit into details can be lucrative — it can help you match your choices to your objectives.
The JPMorgan Equity Premium Income ETF
JEPI,
has been able to take advantage of rising volatility in the stock market to beat the total return of its benchmark, the S&P 500
SPX,
while providing a rising stream of monthly income.
The objective of the fund is “to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility,” while paying monthly dividends, according to JPMorgan Asset Management. It does this by maintaining a portfolio of about 100 stocks selected for high quality, value and low price volatility, while also employing a covered-call strategy (described below) to increase income.
This strategy might underperform the index during a bull market, but it is designed to be less volatile while providing high monthly dividends. This might make it easier for you to remain invested through the type of downturn we saw last year.
JEPI was launched on May 20, 2020, and has grown quickly to $18.7 billion in assets under management. Hamilton Reiner, who co-manages the fund with Raffaele Zingone, described the fund’s strategy, and its success during the 2022 bear market and shared thoughts on what may lie ahead.
First, here’s a chart showing how the fund has performed from when it was established through Jan. 20, against the SPDR S&P 500 ETF Trust
SPY,
both with dividends reinvested:
FactSet
Total returns for the two funds since May 2020 pretty much match, however, JEPI has been far less volatile than SPY and the S&P 500. Now take a look at a performance comparison for the period of rising interest rates since the end of 2021:
FactSet
Those total returns are after annualized expenses of 0.35% of assets under management for JEPI and 0.09% for SPY. Both funds have had negative returns since the end of 2021, but JEPI has been a much better performer.
““Income is the outcome.””
Which investors JEPI is designed for? “Income is the outcome,” Reiner responded. “We are seeing a lot of people using this as an anchor tenant for income-oriented portfolios.”
The fund quotes a 30-day SEC yield of 11.77%. There are various ways to look at dividend yields for mutual funds or exchange-traded funds and the 30-day yield is meant to be used for comparison. It is based on a fund’s current income distribution profile relative to its price, but the income distributions that investors actually receive will vary.
It turns out that over the past 12 months, JEPI’s monthly distributions have ranged between 38 cents a share and 62 cents a share, with a rising trend over the past six months. The sum of the past 12 distributions has been $5.79 a share, for a distribution yield of 10.53%, based on the ETF’s closing price of $55.01 on Jan. 20.
JEPI invests at least 80% of assets in stocks, mainly selected from those in the S&P 500, while also investing in equity-linked notes to employ a covered call option strategy which enhances income and lowers volatility. Covered calls are described below.
Reiner said that during a typical year, investors in JEPI should expect monthly distributions to come to an annualized yield in the “high single digits.”
He expects that level of income even if we return to the low-interest rate environment that preceded the Federal Reserve’s cycle of rate increases that it started early last year to push down inflation.
JEPI’s approach may be attractive to investors who don’t need the income now. “We also see people using it as a conservative equity approach,” Reiner expects the fund to have 35% less price volatility than the S&P 500.
Getting back to income, Reiner said JEPI was a good alternative even for investors who were willing to take credit risk with high-yield bond funds. Those have higher price volatility than investment-grade bond funds and face a higher risk of losses when bonds default. “But with JEPI you don’t have credit risk or duration risk,” he said.
An example of a high-yield bond fund is the iShares 0-5 Year High Yield Corporate Bond ETF
SHYG,
It has a 30-day yield of 7.95%.
When discussing JEPI’s stock selection, Reiner said “there is a significant active component to the 90 to 120 names we invest in.” Stock selections are based on recommendations of JPM’s analyst team for those that are “most attractively priced today for the medium to long term,” he said.
Individual stock selections don’t factor in dividend yields.
JEPI’s high income is an important part of its low-volatility total-return strategy.
A call option is a contract that allows an investor to buy a security at a particular price (called the strike price) until the option expires. A put option is the opposite, allowing the purchaser to sell a security at a specified price until the option expires.
A covered call option is one an investor can write when they already own a security. The strike price is “out of the money,” which means it is higher than the stock’s current price.
Here’s an example of a covered call option provided by Ken Roberts, an investment adviser with Four Star Wealth Management in Reno, Nev.
If you had made this trade and 3M’s shares didn’t rise above $130 by Jan. 19, 2024, the option would expire and you would be free to write another option. The option alone would provide income equivalent to 6.40% of the Jan. 20 purchase price in the period of a year.
If the stock rose above $130 and the option were exercised, you would have ended up with the maximum gain as described by Roberts. Then you would need to find another stock to invest in. What did you risk? Further upside beyond $130. So you would have written the option only if you had decided you would be willing to part with your shares of MMM for $130.
The bottom line is that the call option strategy lowers volatility with no additional downside risk. The risk is to the upside. If 3M’s shares had doubled in price before the option expired, you would still wind up selling them for $130.
JEPI pursues the covered call options strategy by purchasing equity-linked notes (ELNs) which “combine equity exposure with call options,” Reiner said. The fund invests in ELNs rather than writing its own options, because “unfortunately option premium income is not considered bona fide income. It is considered a gain or a return of capital,” he said.
In other words, the fund’s distributions can be better reflected in its 30-day yield, because option income probably wouldn’t be included.
One obvious question for a fund manager whose portfolio has increased quickly to almost $19 billion is whether or not the fund’s size might make it difficult to manage. Some smaller funds pursuing narrow strategies have been forced to close themselves to new investors. Reiner said JEPI’s 2% weighting limitation for its portfolio of about 100 stocks mitigates size concerns. He also said that “S&P 500 index options are the most liquid equity products in the world,” with over $1 trillion in daily trades.
Summing up the 2022 action, Reiner said “investing is about balance.” The rising level of price volatility increased options premiums. But to further protect investors, he and JEPI co-manager Raffaele Zingone also “gave them more potential upside by selling calls that were a bit further out of the money.”
Don’t miss: These 15 Dividend Aristocrat stocks have been the best income builders
WASHINGTON — The Pentagon formally dropped its COVID-19 vaccination mandate Tuesday, but a new memo signed by Defense Secretary Lloyd Austin also gives commanders some discretion in how or whether to deploy troops who are not vaccinated.
Austin’s memo has been widely anticipated ever since legislation signed into law on Dec. 23 gave him 30 days to rescind the mandate. The Defense Department had already stopped all related personnel actions, such as discharging troops who refused the shot.
“The Department will continue to promote and encourage COVID-19 vaccination for all service members,” Austin said in the memo. “Vaccination enhances operational readiness and protects the force.”
Austin said that commanders have the authority to maintain unit readiness and a healthy force. He added, however, that other department policies — including mandates for other vaccines — remain in place. That includes, he said, “the ability of commanders to consider, as appropriate, the individual immunization status of personnel in making deployment, assignment, and other operational decisions, including when vaccination is required for travel to, or entry into, a foreign nation.”
The contentious political issue, which has divided America, forced more than 8,400 troops out of the military for refusing to obey a lawful order when they declined to get the vaccine. Thousands of others sought religious and medical exemptions. Austin’s memo ends those exemption requests.
Austin, who instituted the mandate in August 2021 after the Pfizer vaccine was approved by the Food and Drug Administration and as the coronavirus pandemic raged, was staunch in his desire to maintain it insisting the vaccine was necessary to protect the health of the force. He and other defense leaders argued that for decades troops, particularly those deployed overseas, had been required to get as many as 17 different vaccines. No other vaccine mandates were affected by the new law.
But Congress agreed to rescind the mandate, with opponents reluctantly saying that perhaps it had already succeeded in getting the bulk of the force vaccinated. Roughly 99% of active-duty troops in the Navy, Air Force and Marine Corps had gotten the vaccine, and 98% of the Army. The Guard and Reserve rates are lower, but generally are more than 90%.
Austin’s memo was unapologetic in his continued support for the vaccine, and his belief that the mandate kept the force healthy and able to protect America. The Pentagon’s vaccine efforts, he said, “will leave a lasting legacy in the many lives we saved, the world-class force we have been able to field, and the high level of readiness we have maintained, amidst difficult public health conditions.”
In addition to ending efforts to discharge troops who refuse the vaccine, Austin’s memo says that those who sought exemptions and were denied will have their records updated and any letters of reprimand will be removed.
Those who were discharged for refusing to obey a lawful order to take the vaccine received either an honorable discharge or a general discharge under honorable conditions. Austin’s memo says that anyone who was discharged can petition their military service to request a change in the “characterization of their discharge” in their personnel records. It does not, however, say what possible corrections could be awarded.
Austin’s decision leaves some discretion to commanders, allowing them to decide whether they can require vaccines in some circumstances, such as certain deployments overseas.
Military officials vividly recall the overwhelming crisis of the USS Theodore Roosevelt, the Navy aircraft carrier that was knocked out of duty and sidelined in Guam for 10 weeks in early 2020 as the emerging virus swept through the ship. More than 1,000 crew members eventually became infected, and one sailor died.
Military leaders worry that if troops begin to refuse the vaccine in large numbers, similar outbreaks could occur. The risk is particularly high on small ships or submarines where service members are jammed into close quarters for weeks or months at a time, or on critical combat missions, such as those involving special operations forces that deploy in small teams.
According to data compiled by the military as of early December, the Marine Corps leads the services with 3,717 Marines discharged. There have been 2,041 discharged from the Navy, 1,841 from the Army and 834 from the Air Force. The Air Force data includes the Space Force.
What’s not clear is if the services, who are facing recruiting challenges, will want — or be able to — allow any of those service members to return to duty, if they still meet all necessary fitness and other requirements.
Lawmakers argued that ending the mandate would help with recruiting. Defense officials have pushed back by saying that while it may help a bit, a department survey during the first nine months of last year found that a large majority said the mandate did not change the likelihood they would consider enlisting.
Southwest Airlines Co. canceled more than two-thirds of its flights Monday and plans to slash its schedules Tuesday and Wednesday, in a meltdown that stranded thousands of customers and that worsened while other airlines began to recover from the holiday winter storm.
“We had a tough day today. In all likelihood we’ll have another tough day tomorrow as we work our way out of this,” Chief Executive Bob Jordan said in an interview Monday evening. “This is the largest scale event that I’ve ever seen.”
Southwest
LUV,
plans to operate just over one-third of its typical schedule in the coming days to give itself leeway for crews to get into the right positions, he said, adding that the reduced schedule could be extended.
Southwest’s more than 2,800 scrapped flights Monday, the highest of any major U.S. airline, came as the Dallas-based airline proved unable to stabilize its operations amid the past week’s storm. Between Thursday and Monday, the airline canceled about 8,000 flights, according to FlightAware.
On Monday, the Department of Transportation called Southwest’s rate of cancellations “disproportionate and unacceptable” and said it would examine whether the cancellations were controllable and whether the airline is complying with its customer service plan.
Ryan Green, Southwest’s chief commercial officer, said in an interview the airline is taking steps such as covering customers’ reasonable travel costs—including hotels, rental cars and tickets on other airlines, and will be communicating the process for customers to have expenses reimbursed. He also said customers whose flights are being canceled as the airline recovers are entitled to refunds if they opt not to travel.
The troubles at Southwest intensified Monday despite generally improving weather conditions and warming temperatures throughout much of the eastern half of the country, which had been pummeled by snow, wind and subfreezing temperatures in recent days.
An expanded version of this report appears on WSJ.com.
Trending at WSJ.com:
The benchmark S&P 500 Index has finally fallen below the 3900- to 4100-point trading range.
The move prompted an immediate reaction down to 3800, the next support level. (To see my suggestion for a so-called Santa Claus rally, please see the next item, below.)
Frankly, I would have expected more selling after the S&P 500
SPX,
broke a support level of that magnitude (perhaps a move to 3700).
So, 3700 is the next support level, and then there is support at the yearly lows near 3500. On the upside, there is now resistance in the 3900-3940 area.
The larger picture is that SPX is still in a downtrend, and that the last rally failed in early December right at the downtrend line that defines this bear market. The declining 200-day moving average (MA) was also in that same area, near 4100.
We are closing our positions in the McMillan Volatility Band (MVB) buy signal that occurred in early October, and we will now wait for a new signal to set up. If SPX were to close below the lower -4σ Band (currently at 3760 and declining), that would be the first step toward a new buy signal. That does not appear to be imminent.
Equity-only put-call ratios continue to rise and, thus, remain on sell signals. There has been some relatively heavy put buying in stock options over the past few weeks, and that has been a major contributing factor in the rise in the put-call ratios. These ratios are rather high on their charts, so they are considered to be in oversold territory. However, “oversold” does not mean “buy.”
After the market broke below 3900, breadth was poor for the next two days. That pushed the breadth oscillators — which were already on sell signals dating back to December 5th — into oversold territory. We are now watching to see if they can generate buy signals. In fact, the NYSE breadth oscillator did generate a buy signal as of December 21st, but the “stocks only” oscillator has not. We generally require that any signal from this indicator (which is subject to whipsaws) persist for at least two consecutive days before considering it to be an actionable signal.
New 52-week highs on the New York Stock Exchange have lagged for some time again, and thus the “new highs vs. new lows” indicator remains on a sell signal.
So, the above indicators are relatively negative, but that is contrasted by the CBOE Volatility Index
VIX,
indicators, which are more bullish. The VIX “spike peak” buy signal of December 13th remains in place. Moreover, the trend of VIX buy signal, which is a more intermediate-term signal, remains in place. VIX would have to rise above 26 to cancel out these buy signals.
The construct of volatility derivatives remains bullish. That is, the term structures of the VIX futures and of the CBOE Volatility Indices slope upward. Moreover, the VIX futures are all trading at a premium to VIX. January VIX futures are now the front month, so we are watching for a warning sign, which would come if Jan VIX futures rose above the price of Feb VIX futures. That is not in danger of happening at this time.
The seasonal patterns that supposedly “rule” between Thanskgiving and the beginning of the new trading year have not worked out this year. The last of those patterns is yet to come, though — the Santa Claus rally — and it may still be able to salvage something for the bulls.
In summary, we continue to maintain a “core” bearish position and will continue to do so as long as SPX is in a downtrend. We will trade confirmed signals from our other indicators around that “core” position.
The Santa Claus rally is a term and market seasonal pattern defined by Yale Hirsch over 60 years ago. It has a strong track record. The system is simple: The market rises over the last five trading days of one year and the first two trading days of the next year — a seven-day period.
This year the system begins at the close of trading on Thursday, December 22nd (today). However, if that period does not produce a gain by SPX, that would be a further negative for stocks going forward.
At the close of trading on Thursday, December 22nd,
Buy 2 SPY Jan (13th) at-the-money calls
And Sell 2 SPY Jan (13th) calls that are 15 points out of the money.
There is no stop for this trade, except for time. If the SPDR S&P 500 ETF Trust
SPY,
trades at the higher strike while the position is in place, then roll the entire spread up 15 points on each side. In any case, exit your spreads at the close of trading on Wednesday, January 4th (the second trading day of the new year).
All stops are mental closing stops unless otherwise noted.
We are using a “standard” rolling procedure for our SPY spreads: in any vertical bull or bear spread, if the underlying hits the short strike, then roll the entire spread. That would be roll up in the case of a call bull spread, or roll down in the case of a bear put spread. Stay in the same expiration, and keep the distance between the strikes the same unless otherwise recommended.
Long 2 SPY Jan (20th) 375 puts and Short 2 Jan (20th) 355 puts: this is our “core” bearish position. As long as SPX remains in a downtrend, we want to maintain a position here.
Long 1 SPY Jan (6th) 408 call and short 1 SPY Jan (6th) 423 call: this trade is based on the MVB buy signal, which was established on October 4th. We have already rolled up a couple of times and taken some profit out of the position. Close the remaining spread now.
Long 2 KMB Jan (20th) 135 calls: we rolled this position up last week. The closing stop remains at 135.
Long 2 IWM Jan (20th) 185 at-the-money calls and Short 2 IWM Jan (20th) 205 calls: this is our position based on the bullish seasonality between Thanksgiving and the second trading day of the new year. We will adjust this position if IWM rallies during the holding period, but initially there is no stop for the position, so the entire debit is at risk.
Long 2 PSX Jan (20th) 105 puts: we intended to hold these puts as long as the weighted put-call ratio remains on a sell signal. However, the put-call ratio has rolled over to a buy signal, so exit these puts now.
Long 2 AJRD Jan (20th) 52.5 calls: AJRD received an all-cash takeover offer of $56, so exit these calls now. Do not sell them below parity.
Long 1 SPY Jan (20th) 402 call and Short 1 SPY Jan (20th) 417 calls: this spread was bought at the close on December 13th, when the latest VIX “spike peak” buy signal was generated. Stop yourself out if VIX subsequently closes above 25.84. Otherwise, we will hold for 22 trading days.
Long 1 SPY Jan (20th) 389 put and Short 1 SPY Jan (20th) 364 put: this was an addition to our “core” bearish position, established when SPX closed below 3900 on December 15th. Stop yourself out of this spread if SPX closes above 3940.
Long 2 PCAR Feb (17th) 97.20 puts: these puts were bought on December 20th, when they finally traded at our buy limit. We will continue to hold these puts as long as the weighted put-call ratio is on a sell signal.
Send questions to: lmcmillan@optionstrategist.com.
Lawrence G. McMillan is president of McMillan Analysis, a registered investment and commodity trading advisor. McMillan may hold positions in securities recommended in this report, both personally and in client accounts. He is an experienced trader and money manager and is the author of the best-selling book, Options as a Strategic Investment. www.optionstrategist.com
Disclaimer: ©McMillan Analysis Corporation is registered with the SEC as an investment advisor and with the CFTC as a commodity trading advisor. The information in this newsletter has been carefully compiled from sources believed to be reliable, but accuracy and completeness are not guaranteed. The officers or directors of McMillan Analysis Corporation, or accounts managed by such persons may have positions in the securities recommended in the advisory.
WASHINGTON — Ukrainian President Volodymyr Zelensky is preparing to visit Washington on Wednesday, according to three AP sources, in his first known trip outside the country since Russia’s invasion began in February.
Two congressional sources and one person familiar with the matter confirmed plans for the visit. They spoke on the condition of anonymity because of the highly sensitive nature of the trip. They said Zelensky’s visit, while expected, could still be called off at the last minute due to security concerns.
The visit to Washington is set to include an address to Congress on Capitol Hill and a meeting with President Joe Biden. It comes as lawmakers are set to vote on a year-end spending package that includes about $45 billion in emergency assistance to Ukraine and as the U.S. prepares to send Patriot surface-to-air missiles to the country to help stave off Russia’s invasion.
The latest tranche of U.S. funding would be the biggest American infusion of assistance yet to Ukraine, above even President Joe Biden’s $37 billion emergency request, and ensure that funding flows to the war effort for months to come.
House Speaker Nancy Pelosi encouraged lawmakers to be on hand for Wednesday evening’s session.
“We are ending a very special session of the 117th Congress with legislation that makes progress for the American people as well as support for our Democracy,” Pelosi wrote Tuesday in a letter to colleagues. “Please be present for a very special focus on Democracy Wednesday night.”
Zelensky has — almost daily — addressed various parliaments and international organizations by video and he has sent his wife to foreign capitals to drum up assitance against the Russian invasion. The visit comes a day after he made a daring and dangerous trip to what he called the hottest spot on the 1300-km (808-mile) front line, the city of Bakhmut in Ukraine’s contested Donetsk province.
In a video released by his office from the Bakhmut visit, Zelensky was handed a Ukrainian flag and alluded to delivering it to U.S. leaders.
“The guys handed over our beautiful Ukrainian flag with their signatures for us to pass on,” Zelensky said in the video. “We are not in an easy situation. The enemy is increasing its army, and our people are braver and need more powerful weapons. We will pass it on from the boys to the Congress, to the President of the United States. We are grateful for their support, but it is not enough. It is a hint — it is not enough.”
WASHINGTON (AP) — The House Jan. 6 committee is wrapping up its investigation of the violent 2021 U.S. Capitol insurrection, with lawmakers expected to cap one of the most exhaustive and aggressive congressional probes in memory with an extraordinary recommendation: The Justice Department should consider criminal charges against former President Donald Trump.
At a final meeting on Monday, the panel’s seven Democrats and two Republicans are poised to recommend criminal charges against Trump and potentially against associates and staff who helped him launch a multifaceted pressure campaign to try to overturn the 2020 election.
Context: What to expect as House Jan. 6 panel readies final report on Trump’s ‘attempted coup’
While a criminal referral is mostly symbolic, with the Justice Department ultimately deciding whether to prosecute Trump or others, it is a decisive end to a probe that had an almost singular focus from the start.
“I think the president has violated multiple criminal laws and I think you have to be treated like any other American who breaks the law, and that is you have to be prosecuted,” Rep. Adam Schiff, a Democrat from Southern California and a member of the panel, said Sunday on CNN’s “State of the Union.”
The panel, set to dissolve on Jan. 3 with the advent of a Republican-led House, has conducted more than 1,000 interviews, held 10 well-watched public hearings and collected more than a million documents since it launched in July 2021. As it has gathered the massive trove of evidence, the members have become emboldened in declaring that Trump is to blame for the violent attack on the Capitol by his supporters almost two years ago.
From the archives (June 2022): Fox News is notable exception as prime-time Jan. 6 committee hearing blankets TV airwaves
Also (July 2022): Trump White House aide Cassidy Hutchinson’s live testimony before Jan. 6 select committee was a TV ratings hit: Nielsen data
After beating their way past police, injuring many of them, the Jan. 6 rioters stormed the Capitol and interrupted the certification of President Joe Biden’s win, echoing Trump’s lies about widespread election fraud and sending lawmakers and others running for their lives.
The attack came after weeks of Trump’s efforts to overturn his defeat — a campaign that was extensively detailed by the committee in its multiple public hearings. Many of Trump’s former aides testified about his unprecedented pressure on states, federal officials and on Vice President Mike Pence to find a way to thwart the popular will.
“This is someone who in multiple ways tried to pressure state officials to find votes that didn’t exist, this is someone who tried to interfere with a joint session, even inciting a mob to attack the Capitol,” Schiff said. “If that’s not criminal, then I don’t know what it is.”
See: Justice Department urges judge to hold Trump’s legal team in contempt over Mar-a-Lago case
Members of the committee have said that the referrals for other individuals may also include ethics violations, legal misconduct and campaign finance violations. Lawmakers have suggested in particular that their recommended charges against Trump could include conspiracy to defraud the United States, obstruction of an official proceeding of Congress and insurrection.
On insurrection, Schiff said Sunday that “if you look at Donald Trump’s acts and you match them up against the statute, it’s a pretty good match.” He said that the committee will focus on those individuals — presumably Trump — for whom they believe there is the strongest evidence.
Also: Nevada elections department subpoenaed in Trump 2020 election investigation
And: Trump ally Kari Lake pursues formal challenge to loss in race for governor of Arizona
While a so-called criminal referral has no real legal standing, it is a forceful statement by the committee and adds to political pressure already on Attorney General Merrick Garland and special counsel Jack Smith, who is conducting an investigation into Jan. 6 and Trump’s actions.
The committee is also expected at the hearing to preview its massive final report, which will include findings, interview transcripts and legislative recommendations. Lawmaker have said a portion of that report will be released Monday.
“We obviously want to complete the story for the American people,” said Rep. Jamie Raskin, a Maryland Democrat and constitutional scholar who serves on the select committee. “Everybody has come on a journey with us and we want a satisfactory conclusion, such that people feel that Congress has done its job.”
The panel was formed in the summer of 2021 after Senate Republicans blocked the formation of what would have been a bipartisan, independent commission to investigate the insurrection. That opposition spurred the Democratic-controlled House to form a committee of its own. House Republican leader Kevin McCarthy of California, a Trump ally, decided not to participate after House Speaker Nancy Pelosi rejected some of his appointments. That left an opening for two anti-Trump Republicans in the House — Reps. Liz Cheney of Wyoming and Adam Kinzinger of Illinois — to join the seven Democrats serving on the committee.
From the archives (January 2021): Kevin McCarthy becomes poster boy for Republicans walking back their recent Trump criticism
While the committee’s mission was to take a comprehensive accounting of the insurrection and educate the public about what happened, they’ve also aimed their work at an audience of one: the attorney general. Lawmakers on the panel have openly pressured Garland to investigate Trump’s actions, and last month he appointed a special counsel, Smith, to oversee several probes related to Trump, including those related to the insurrection.
In court documents earlier this year, the committee suggested criminal charges against Trump could include conspiracy to defraud the United States and obstruction of an official proceeding of Congress.
Wall Street Journal: Trump tax returns may be released after House panel meets Tuesday
In a “conspiracy to defraud the United States,” the committee argues that evidence supports an inference that Trump and his allies “entered into an agreement to defraud the United States” when they disseminated misinformation about election fraud and pressured state and federal officials to assist in that effort. Trump still says he won the election to this day.
The panel also asserts that Trump obstructed an official proceeding, the joint session of Congress in which the Electoral College votes are certified. The committee said Trump either attempted or succeeded at obstructing, influencing or impeding the ceremonial process on Jan. 6 and “did so corruptly” by pressuring Pence to try to overturn the results as he presided over the session. Pence declined to do so.
The committee may make ethics referrals for five House Republicans — including McCarthy — who ignored congressional subpoenas from the panel. Those referrals are unlikely to result in punishment since Republicans are set to take over the House majority in January.
Read on: McCarthy’s long-held speaker ambition set to come to a head when new Congress convenes in January
Chrysler Parent Stellantis to Stop Operations at Jeep Cherokee Factory
What worked well during the years-long bull market through 2021 — a focus on growth, regardless of price — has ground to a halt this year. The rebirth of the value style of investing — and modest valuations overall — has taken hold.
The approach taken by the Invesco S&P 500 GARP ETF has paid off through both bull and bear markets.
Let’s begin with a 10-year chart comparing total returns with dividends reinvested for the Invesco S&P 500 GARP ETF
SPGP,
and the SPDR S&P 500 ETF Trust
SPY,
which tracks the benchmark S&P 500:
So far this year, SPGP is down 12%, while SPY is down 16%. But the long-term chart shows significant and consistent outperformance for SPGP, even during the bull market.
GARP stands for “growth at a reasonable price.” SPGP tracks the S&P 500 GARP Index, which is reconstituted and rebalanced twice a year, on the third Fridays of June and December. The next change occurs Dec. 16.
S&P Dow Jones Indices assigns a growth score to each component of the S&P 500 by averaging the three-year compound annual growth rate (CAGR) for earnings and sales per share.
The top 150 components of the S&P 500 by growth score are eligible for inclusion in the GARP index. Those 150 are ranked by “quality/value composite score,” which is the average of these three ratios:
The top 75 of the 150 by QV rankings are then included in the GARP index and weighted by the growth score, with portfolio weightings ranging from 0.5% to 5%.
There is a weighting limitation of 40% to any one of the 11 S&P sectors.
The benchmark S&P 500 Index
SPX,
is weighted by market capitalization, which means it is more heavily concentrated than you might expect — success is rewarded, with rising stocks more heavily weighted over time.
That can backfire during a bear market, with Amazon.com Inc.
AMZN,
down 47% and Tesla Inc.
TSLA,
down 51% this year, to name two prominent examples.
Looking at the SPDR S&P 500 ETF Trust
SPY,
which is the first and largest exchange traded fund and tracks the benchmark index by holding all of its components, six companies (Apple Inc.
AAPL,
Microsoft Corp.
MSFT,
Amazon, both common share classes of Alphabet Inc.
GOOGL,
GOOG,
and Berkshire Hathaway Inc.
BRK.B,
) make up 19.2% of the portfolio.
That percentage has come down this year, but a lot of risk remains concentrated in a handful of companies. (Apple alone makes up 6.4% of the SPY portfolio. Tesla is now the ninth-largest holding, making up 1.4% of the portfolio.)
One way to address high concentration in an index fund is to use an equal-weighted approach, which Mark Hulbert recently discussed.
For the Invesco S&P 500 GARP ETF, the underlying index’s selection methodology has resulted in much less portfolio concentration than we see in SPY, with the top five holdings making up 10.9% of the portfolio.
Here are the 10 largest holdings of SPGP:
| Company | Ticker | Share of portfolio |
| Regeneron Pharmaceuticals, Inc. |
REGN, |
2.49% |
| Cigna Corporation |
CI, |
2.26% |
| Everest Re Group, Ltd. |
RE, |
2.21% |
| Vertex Pharmaceuticals Incorporated |
VRTX, |
1.98% |
| D.R. Horton, Inc. |
DHI, |
1.97% |
| Expeditors International of Washington, Inc. |
EXPD, |
1.96% |
| Incyte Corporation |
INCY, |
1.92% |
| Goldman Sachs Group, Inc. |
GS, |
1.83% |
| Ebay Inc. |
EBAY, |
1.81% |
| Pfizer Inc. |
PFE, |
1.73% |
| Source: FactSet | ||
Click on the tickers for more information about any company, ETF or index in this article.
You should also read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.
Don’t miss: 10 Dividend Aristocrat stocks expected by analysts to rise up to 54% in 2023
“‘For proving that courage can be as contagious as fear, for stirring people and nations to come together in defense of freedom, for reminding the world of the fragility of democracy — and of peace — Volodymyr Zelensky and the spirit of Ukraine are TIME’s 2022 Person of the Year.’”
That was Time editor in chief Edward Felsenthal explaining why the publication has named the Ukrainian leader and his people as 2022’s “Person of the Year,” an annual honorific that Time gives to the person or group of people who “most influenced the events of the past 12 months, for good or for ill.”
This year’s 10 finalists also included Tesla
TSLA,
CEO Elon Musk (who took the title last year, and has remained a news driver with this Twitter takeover this year), U.S. Treasury Secretary Janet Yellen (whom the U.S. has “leaned on” to interpret the telltale signs of a recession) and Florida governor (and possible 2024 GOP presidential candidate) Ron DeSantis.
In fact, some of these finalists were also recently featured in the inaugural MarketWatch 50 list of the investors, CEOs, policy makers, crypto players and influencers who are impacting markets and your money this year.
But Felsenthal wrote that Zelensky was “the most clear-cut” choice for “Person of the Year” in recent memory, because he “galvanized the world in a way we haven’t seen in decades” following the unprovoked Russian invasion of Ukraine led by President Vladimir Putin on Feb. 25.
The Time editor notes how Zelensky became a household name and international icon this year for staying in his country throughout the invasion, and rallying support on social media by giving daily speeches remotely. Some 141 countries in the United Nations condemned the unprovoked invasion of Ukraine. And almost 1,000 companies, including giants like McDonald’s
MCD,
and Starbucks
SBUX,
pulled out of Russia in response. The blue and gold Ukrainian flag became a familiar site on social media, as well, as users and accounts showed their support for Ukraine.
The “Person of the Year” report notes that Zelensky has also drawn his share of criticism, however — including from his fellow Ukrainians —for downplaying the threat of invasion before the Russian bombs first fell. And some critics have called his charm offensive via fashion photo shoots and virtual Grammy Awards appearances and the like somewhat out-of-touch with the human casualties of the war in Ukraine.
“Later we will be judged,” Zelensky told Time reporter Simon Shuster in an accompanying interview. But in the meantime, he says, “I have not finished this great, important action for our country. Not yet.”
Apart from Musk, DeSantis and Yellen, the other “Person of the Year” finalists included Wyoming GOP Rep. Liz Cheney for her work on the Jan. 6 committee and her vow to do “whatever it takes” to keep former President Donald Trump out of the Oval Office in the next election.
Amazon
AMZN,
founder Jeff Bezos’ ex MacKenzie Scott also made the list for her historic philanthropy, donating almost $2 billion to 343 organizations focused on the support of underserved communities in this year alone.
And the U.S. Supreme Court was given a nod for its historic decision to overturn Roe v. Wade and end almost 50 years of constitutional precedent that protected abortion rights for American women, along with swearing in its first Black female justice, Ketanji Brown Jackson, to the bench.
BERLIN (AP) — Thousands of police carried out a series of raids across much of Germany on Wednesday against suspected far-right extremists who allegedly sought to overthrow the state in an armed coup.
Federal prosecutors said some 3,000 officers conducted searches at 130 sites in 11 of Germany’s 16 states against adherents of the so-called Reich Citizens movement. Some members of the grouping reject Germany’s postwar constitution and have called for the overthrow of the government.
Justice Minister Marco Buschmann described the raids as an “anti-terrorism operation,” adding that the suspects may have planned an armed attack on institutions of the state.
Prosecutors said 22 German citizens were detained on suspicion of “membership in a terrorist organization.” Three other people, including a Russian citizen, are suspected of supporting the organization, they said. A further 27 people are being investigated.
Weekly Der Spiegel reported that locations searched include the barracks of Germany’s special forces unit KSK in the southwestern town of Calw. The unit has in the past been scrutinized over alleged far-right involvement by some soldiers.
Federal prosecutors declined to confirm or deny that the barracks was searched.
Along with detentions in Germany, prosecutors said that one person was detained in the Austrian town of Kitzbuehel and another in the Italian city of Perugia.
Prosecutors said those detained are alleged to last year have formed a “terrorist organization with the goal of overturning the existing state order in Germany and replace it with their own form of state, which was already in the course of being founded.”
The suspects were aware that their aim could only be achieved by military means and with force, prosecutors said.
Some of the group’s members had made “concrete preparations” to storm Parliament with a small armed group, according to prosecutors. “The details (of this plan) still need to be investigated” to determine whether any of the suspects can be charged with treason, they said.
The group is alleged to have believed in a “conglomerate of conspiracy theories consisting of narratives from the so-called Reich Citizens as well as QAnon ideology,” according to the statement. Prosecutors added that members of the group also believe Germany is ruled by a so-called ‘deep state;’ similar baseless claims about the United States were made by former President Donald Trump.
Prosecutors identified the suspected ringleaders as Heinrich XIII P. R. and Ruediger v. P., in line with German privacy rules. Der Spiegel reported that the former was a well-known 71-year-old member of a minor German noble family, while the latter was a 69-year-old former paratrooper.
Federal prosecutors said Heinrich XIII P. R., whom the group planned to install as Germany’s new leader, had contacted Russian officials with the aim of negotiating a new order in the country once the German government was overthrown. He was allegedly assisted in this by a Russian woman, Vitalia B.
“According to current investigations there is no indication however that the persons contacted responded positively to his request,” prosecutors said.
A further person detained by police Wednesday was identified by prosecutors as Birgit M.-W. Der Spiegel reported that the woman is a judge and former lawmaker with the far-right Alternative for Germany party.
The party, known by its German acronym AfD, has increasingly come under scrutiny by German security services due to its ties with extremists. It declined to comment immediately on the report.
Prosecutors said that apart from a council of leaders, or Rat, the group had tasked several members with the formation of an armed wing. Led by Ruediger v. P., the they planned to obtain weapons and conduct firearms training. It was unclear how far advanced these plans were.
Germany’s chief federal prosecutor planned to make a statement on the case later Wednesday.
Major Chinese cities on Thursday announced a further easing of COVID restrictions, as police continued to patrol streets to avert protests and the ruling Communist Party prepared for the funeral of late leader Jiang Zemin.
Guangzhou in the south, Shijiazhuang in the north, Chengdu in the southwest and other major cities announced they were easing testing requirements and controls on movement, as the Associated Press reported. In some areas, markets and bus service has reopened.
In Beijing, officials will let those infected patients who are at low risk to quarantine at home for a week, rather than in a government center, Bloomberg reported, citing unnamed sources.
China has required anyone with any degree of COVID to stay at those sites to cut transmission. The first signs of the shift have been seen in the heavily populated Chaoyang district, home to foreign embassies and offices.
Beijing is hoping to avoid more protests, while resources are also getting thin, those sources said. However, anyone wanting to isolate at home will have to provide a written guarantee to stay at home, with a magnetized alarm fitted on their door that will alert authorized if they try to leave, one source said. Bloomberg was unable to confirm the reports with officials from Beijing or its health department.
The World Health Organization’s weekly update shows the global tally of cases was flat in the week through Nov. 27 from the week earlier. The number of fatalities fell by 5% from the previous week.
Japan again led the world by new cases, with an 18% increase to 698,772. It was followed by South Korea, where cases rose 4% to 378,751 and the U.S., where they rose 8% to 296,882.
Omicron and its many subvariants and sublineages remained dominant in the period from Oct. 28 to Nov. 28, accounting for 99.9% of sequences reported to a central database. The BA.5 omicron subvariant and its sublineages were dominant in the week through Nov. 13 at 73.% of all sequences, and newer strains, including BQ. 1 and XBB continued to spread in November, the agency said.
In the U.S., known cases of COVID are rising again with the daily average standing at 45,219 on Wednesday, according to a New York Times tracker, up 15% from two weeks ago. Cases are now rising in 37 states from two weeks ago, as well as in Guam and Washington, D.C., led by Georgia, where they are up 60%, and California, where they have climbed 57%.
The daily average for hospitalizations was up 16% at 32,445, but again, the pace of the increase is not uniform across the country. Louisiana has the highest increase in hospitalizations at 99% from two weeks ago, followed by California, where they are up 62%.
The daily average for deaths is down 7% at 262.
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:
• Nineteen people, including 17 New York City and New York state public employees, were charged in a federal complaint unsealed Wednesday with submitting fraudulent applications for funds intended to help small businesses survive the coronavirus pandemic, the AP reported. The accused, including employees of New York City’s police department, correction department and public school system, listed themselves as owners of businesses that in some cases did not exist in their applications for funds through the Small Business Administration’s Economic Injury Disaster Loan program and Paycheck Protection Program, federal prosecutors in Manhattan said. The defendants collectively stole more than $1.5 million from the SBA and financial institutions that issued SBA-guaranteed loans, prosecutors said.
• The number of people in Europe with undiagnosed HIV has risen as testing rates fell during the pandemic, threatening a global goal of ending the disease by 2030, Reuters reported, citing a report from the WHO and European Center for Disease Prevention and Control. The report found that in 2021 a quarter fewer HIV diagnoses were recorded compared to pre-pandemic levels in the WHO’s European region.
• Republican Gov. Jim Justice said Wednesday that West Virginia’s state of emergency related to the COVID-19 pandemic will end at the start of the new year, the AP reported. The state of emergency has been in effect since March 16, 2020. It allows the governor to suspend certain rules on personnel and purchasing. “The truth is, the state of emergency doesn’t affect a whole lot, you know, anymore,” he said. “We absolutely declared an emergency at a time that we had an emergency. … Now, we need to move on.”
Here’s what the numbers say:
The global tally of confirmed cases of COVID-19 topped 643.4 million on Thursday, while the death toll rose above 6.63 million, according to data aggregated by Johns Hopkins University.
The U.S. leads the world with 98.8 million cases and 1,080,444 fatalities.
The Centers for Disease Control and Prevention’s tracker shows that 228.4 million people living in the U.S., equal to 68.8% of the total population, are fully vaccinated, meaning they have had their primary shots.
So far, just 37.6 million Americans have had the updated COVID booster that targets the original virus and the omicron variants, equal to 12.1% of the overall population.
The head of the International Monetary Fund on Tuesday joined the chorus of people urging China to adopt a more targeted approach to the coronavirus pandemic as the country’s zero-COVID policy sparks protests over lockdowns and hobbles the world’s second-biggest economy.
IMF Managing Director Kristalina Georgieva urged a “recalibration” of China’s tough “zero-COVID” approach, which is aimed at isolating every case, “exactly because of the impact it has on both people and on the economy,” as the Associated Press reported.
Georgieva made the comments in an interview with the AP on Tuesday, after protests erupted in Chinese cities and in Hong Kong over the weekend, marking the strongest public dissent in decades.
“We see the importance of moving away from massive lockdowns, being very targeted in restrictions,” Georgieva said Tuesday in Berlin. “So that targeting allows [China] to contain the spread of COVID without significant economic costs.”
Georgieva also urged China to look at vaccination policies and focus on vaccinating the “most vulnerable people.”
A low rate of vaccinations among the elderly is a major reason Beijing has had to resort to lockdowns, while the emergence of more-contagious variants has made it increasingly hard to halt the spread of the virus.
Chinese health officials said Tuesday they are preparing a push to get more older people vaccinated, the Guardian reported. The National Health Commission told reporters it would target more vaccinations at people older than 80 and would reduce to three months the gap between basic vaccination and booster shots for elderly people.
But experts, including President Joe Biden’s chief medical adviser, Anthony Fauci, have expressed concern that China’s homegrown vaccines are not effective enough. China has not yet approved the vaccines developed by Pfizer
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BioNTech
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and Moderna
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for public use. The shortcomings of China’s vaccines have led Chinese doctors to warn that a lifting of the zero-COVID policy could lead to a massive surge in cases that could overwhelm China’s healthcare system.
Now read: China’s strict zero-COVID policy isn’t worth the damage it does to its economy
Meanwhile, with police out in force, there was little news of protests in Beijing, Shanghai or other cities on Tuesday, the AP reported separately.
In the U.S., known cases of COVID are rising again, with the daily average standing at 41,755 on Monday, according to a New York Times tracker, up 6% from two weeks ago. Cases are rising in 22 states, as well as Guam and Washington, D.C., and are flat in Nebraska. They are rising fastest in Arizona, where they are up 82% from two weeks ago, followed by Michigan, where they are up 77%.
The daily average for hospitalizations is flat at 28,135, while the daily average for deaths is up 6% to 314.
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:
• The World Health Organization has issued an emergency-use listing for the Novavax
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protein-based COVID vaccine as a primary series for children ages 12-17 and as a booster for those ages 18 and older, Novavax said Tuesday. The WHO previously granted an emergency-use listing for the Nuvaxovid vaccine in adults ages 18 and older in December 2021, the company said. The new listing also paves the way for adults to get a booster shot of the vaccine about six months after completing the primary two-dose series.
• New Jersey Gov. Phil Murphy, a Democrat, said Monday his administration has launched a promised review of its handling of the pandemic, the AP reported. The administration hired regional law firm Montgomery McCracken Walker & Rhoads — which has offices in the state as well as Delaware, Pennsylvania and New York — along with management consulting firm Boston Consulting Group to conduct the review. The review is expected to end with a report in late 2023, the governor said.
• A Connecticut program that offered “hero pay” to essential workers at the peak of the pandemic got so many applicants that state lawmakers had to go back into session Monday to provide extra funding and put new limits on who could get the biggest bonuses, the AP reported. Initially, the state had expected to award about $30 million in bonuses to people who had to go to work, in person, in jobs in healthcare, food distribution, public safety and other essential services. But after getting 155,730 applications from eligible people, lawmakers realized they would have to either put more money in or slash benefits.
Here’s what the numbers say:
The global tally of confirmed cases of COVID-19 topped 641.8 million on Monday, while the death toll rose above 6.63 million, according to data aggregated by Johns Hopkins University.
The U.S. leads the world with 98.6 million cases and 1,079,477 fatalities.
The Centers for Disease Control and Prevention’s tracker shows that 228.4 million people living in the U.S., equal to 68.8% of the total population, are fully vaccinated, meaning they have had their primary shots.
So far, just 37.6 million Americans have had the updated COVID booster that targets the original virus and the omicron variants, equal to 12.1% of the overall population.