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  • A man told officers at the CIA headquarters gate, ‘I’m here and I have a gun,’ law enforcement source says | CNN

    A man told officers at the CIA headquarters gate, ‘I’m here and I have a gun,’ law enforcement source says | CNN

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    CNN
     — 

    A man now under arrest walked up to the CIA Headquarters’ gate Tuesday and allegedly said, “I’m here and I have a gun,” a law enforcement source told CNN.

    Uniformed federal officers turned him away and notified Fairfax County, Virginia, police of his description, the source said Wednesday.

    He later was arrested and charged with felony possession of a firearm on school property, police said. He was identified as Eric Sandow, 32, of Gainesville, Florida.

    Sandow said he was headed to the CIA and had an AK-47 and another weapon in his vehicle as he was arrested Tuesday at Dolley Madison Preschool in McLean, Virgnia, after he trespassed on school grounds around 11 a.m., police said.

    The preschool is less than 1.5 miles from CIA Headquarters and about a 10-minute drive to major Washington, DC, landmarks, including the National Mall.

    “He requested access to the (preschool) building facilities to use the restroom, which was denied by school staff,” Dolley Madison Preschool said in a statement Wednesday. “At no point did he gain physical entrance to the school building.”

    Fairfax County police were then called to the scene. “While speaking with him, he made statements he had weapons inside his car located on school property,” the police department said Wednesday in a statement.

    “Officers searched the car and found two weapons, an AK-47 and a pistol, along with magazines and ammunition.”

    Sandow was arraigned Wednesday morning in Fairfax County General District Court, a court official said.

    He was being held Wednesday without bond, police said. It was not immediately clear whether Sandow had legal representation.

    “It does not appear he was acting in conjunction with anyone else,” Fairfax County police said. “Sandow did not make any threats and the weapons never left the vehicle.”

    Sandow does not appear to have a lengthy criminal history, public records show. He was charged with misdemeanor domestic battery in 2014 and did not declare a political party with his voter registration.

    Law enforcement lauded an alert person who summoned them Tuesday to the day care.

    “We’re grateful to the community member who did the right thing and called us,” police said. “We’d like to remind our community to report suspicious activity as you never know what you may prevent by making that call.”

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  • Could the Fed raise rates again in June? | CNN Business

    Could the Fed raise rates again in June? | CNN Business

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


    New York
    CNN
     — 

    Will the Federal Reserve hike interest rates at its next meeting in June — for the 11th time in a row — or pause? Wall Street seems to be betting on the latter, but it was a topsy-turvy journey to that consensus last week.

    What happened: The Fed’s meeting earlier this month fueled hopes that it was done with rate hikes, at least for now. Then, a slate of economic data last week came in stronger than expected.

    Retail spending rebounded in April after two months of declines, suggesting that consumers are still spending despite tightening their purse strings. Jobless claims declined more than expected for the week ended May 13, staying below historical averages.

    Traders saw a roughly 36% chance last Thursday that the Fed will raise rates by another quarter point in June, up from around 15.5% on May 12, according to the CME FedWatch Tool.

    Then, Fed Chair Jerome Powell weighed in mid-morning Friday. In a panel with former Fed head Ben Bernanke, Powell said that uncertainty remains surrounding how much demand will decline from tighter credit conditions and the lagged effects of hiking rates. Traders pared down their expectations to about a 18.6% chance that the central bank will raise rates next month, as of Friday evening.

    Experts seem to agree that the Fed is unlikely to raise rates again in June. “The absence of any such preparation [for a raise] is the signal and gives us additional confidence that the Fed is not going to hike in June absent a very big surprise in the remaining data, though we should expect a hawkish pause,” Evercore ISI strategists said in a May 19 note.

    Jim Baird, chief investment officer at Plante Moran Financial Advisors, also expects the Fed to hold rates steady in June. But that decision isn’t set in stone, and the Fed will likely monitor three key factors in making its decision, he said. Those are:

    • The debt ceiling. President Joe Biden and congressional leaders have maintained that the US will likely not default on its debt. But if such a scenario were to happen, it could have catastrophic consequences for the economy and financial markets that would require the Fed wait for the crisis to be resolved before taking action.
    • Evolving financial conditions. The collapses of regional lenders Silicon Valley Bank, Signature Bank and First Republic have accelerated the tightening of credit conditions. While that has complicated the Fed’s plan to stabilize prices, it also could benefit the central bank by doing some of its work for it by slowing spending.
    • Delayed impact. The Fed’s interest rate hikes flow through the economy with a lag. So, it will take some months for the full effect of its aggressive tightening cycle to show up in the economy. That means the Fed could want to take a pause to monitor the continuing impact of what it has already done.

    The Fed has also maintained that its actions are data dependent, meaning it will keep close watch on economic data that comes in before it’s due to announce its next rate decision on June 14.

    Some key data points set for release before then include the April Personal Consumption Expenditures price index (that’s the Fed’s preferred inflation metric), May jobs report, the May Consumer Price Index and May Producer Price Index. (The latter two reports are due on the two days the Fed meets.)

    If these data points show considerable weakening in the labor market or continued declines in inflation, that helps make the case for a pause. But signs of a robust economy with little to no signs of slowing down could mean the Fed has more room to tighten — and that it could take that opportunity.

    Morgan Stanley chief executive James Gorman, 64, will step down from his role within the next 12 months, he said Friday at the bank’s annual meeting.

    “The specific timing of the CEO transition has not been determined, but it is the Board’s and my expectation that it will occur at some point in the next 12 months. That is the current expectation in the absence of a major change in the external environment,” Gorman said.

    Gorman, who is one of the longest-serving heads of a US bank and largely responsible for helping lead a sweeping transformation of the company after the 2008 financial crisis, became CEO in January 2010.

    He will assume the role of executive chairman for “a period of time,” Gorman said, adding that the board of directors has three senior internal candidates in the pipeline to potentially take over as the next chief executive.

    Read more here.

    The June 1 ‘X-date’ — the estimated point at which the US Treasury could run out of cash — is fast approaching. For JPMorgan Chase’s Jamie Dimon, another key date is already here.

    The chief executive told Bloomberg earlier this month that he has held a so-called “war room” weekly to prepare the bank for the possibility the United States defaults on its debt. He plans to meet more often as the X-date approaches, and then meet every day by May 21, he said, adding that the meetings will eventually ramp up to take place three times a day.

    “I don’t think [a default] is going to happen, because it gets catastrophic,” Dimon said. “The closer you get to it, you will have panic.”

    Debt ceiling negotiations appeared to be going in a positive direction for most of last week. Both President Joe Biden and House Speaker Kevin McCarthy said that the United States is unlikely to default on its debt and seemed optimistic about the path to a deal.

    But debt ceiling talks between the White House and McCarthy’s office have hit a snag, and negotiators put a pause on the talks, multiple sources told CNN Friday.

    While that doesn’t mean the negotiations are falling completely apart, or that the country is headed for a default, it does pose more challenges for the stock market, which has stayed relatively resilient despite debt ceiling worries starting to slowly creep in.

    Dimon said in the same Bloomberg interview that he’d “love to get rid of the debt ceiling thing” altogether.

    The debt ceiling situation “is very unfortunate,” he said. “It should never happen this way.”

    Monday: JPMorgan Chase investor day.

    Tuesday: April new home sales. Earnings from Lowe’s (LOW).

    Wednesday: May Fed meeting minutes.

    Thursday: GDP Q1 second read, April pending home sales, mortgage rates and weekly jobless claims. Earnings from Costco (COST), Dollar Tree (DLTR) and Best Buy (BBY).

    Friday: April Personal Consumption Expenditures and May University of Michigan final consumer sentiment reading.

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  • George Santos names himself treasurer of his campaign committee | CNN Politics

    George Santos names himself treasurer of his campaign committee | CNN Politics

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    CNN
     — 

    Rep. George Santos has named himself the treasurer of his campaign committee, marking the latest twist in a monthslong saga over puzzling filings his campaign has made with federal regulators.

    The new filing, made late Friday afternoon with the Federal Election Commission, comes a little more than a week after federal prosecutors unveiled a 13-count criminal indictment, charging the New York Republican with wire fraud, fraudulently obtaining Covid-19 unemployment benefits and lying about his personal finances on forms he submitted to the US House of Representatives as a candidate. He has denied wrongdoing and pleaded not guilty to the charges.

    Santos defended the move Saturday, saying it was to “ensure compliance.”

    “My intent is to operate above reproach,” the freshman lawmakers said on Twitter. “We will continue to build our campaign around professionals with subject matter expertise.”

    He added that FEC records will be updated to reflect the change.

    Questions long have swirled about the identity of Santos’ campaign treasurer. This year, Santos’ campaign named a new treasurer identified as Andrew Olson, but federal and state records did not show anyone with that name serving as the treasurer of any other federal committees or any political committees operating in New York state.

    At the time that Olson was added as treasurer, the address associated with him and Santos’ campaign was that of a mixed-use apartment and commercial building in Elmhurst, New York, where the congressman’s sister had resided until earlier this year.

    Earlier this month, the Citizens for Responsibility and Ethics in Washington watchdog group, lodged a complaint with the Federal Election Commission questioning Olson’s existence and asking the agency to investigate whether the campaign had potentially violated campaign finance laws with filings that listed that person as treasurer.

    Political committees are not allowed to raise or spend money without a treasurer. Candidates legally can serve as the treasurers of their own campaigns, but it is rare for them to do so.

    In his short time in Washington, Santos’ campaign filings have faced intense scrutiny. They range from questions about dozens of campaign expenses listed at $199.99 – a penny below the threshold for which campaigns are required to retain receipts – to confusion about who was filing the treasurer’s role.

    On January 25, for instance, Santos’ campaign listed a Wisconsin political consultant as replacing the congressman’s longtime treasurer Nancy Marks. But the consultant’s lawyer said the campaign had done so without his authorization, and that his client had turned down the job.

    Then, on January 31, Marks informed the FEC that she had resigned. Later that day, Olson’s electronic signature first appeared on a Santos report.

    Santos has argued in the past that the filings were not his responsibility.

    “I don’t touch any of my FEC stuff, right?” he told CNN back in January. “So don’t be disingenuous and report that I did because you know that every campaign hires fiduciaries.”

    This story has been updated with additional information.

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  • Angry lawmakers accuse Fed of inaction in insider trading investigation | CNN Business

    Angry lawmakers accuse Fed of inaction in insider trading investigation | CNN Business

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    CNN
     — 

    Congressional lawmakers grilled Federal Reserve Inspector General Mark Bialek Wednesday over possible insider trading among Fed officials in 2020, accusing the nation’s central bank of inaction.

    The heads of the Boston and Dallas Federal Reserve banks retired early in 2021 after trades they made before and during the pandemic came to light. Bialek said his investigation into any potential legal violations from the trades is “ongoing.”

    A separate investigation by Bialek last year found no wrongdoing stemming from trades by a financial adviser on behalf of Fed Chair Jerome Powell’s family trust and by former Fed Vice Chair Richard Clarida.

    Bialek told members of a Senate Banking Subcommittee on Economic Policy that he was limited in what he could disclose because it would impede his ability to “conduct a thorough, independent investigation” into the former regional bank heads’ trades.

    Sen. Elizabeth Warren, D-Massachusetts, interrupted: “You have had a year and a half,” she said. “This is not strong oversight. In fact, it is not even competent oversight.”

    As Republican and Democratic lawmakers on the subcommittee pointed out, Bialek, who has served in his role since 2011, is appointed by members of the Fed’s Board of Governors, whom he is tasked with investigating. Bialek told lawmakers there was no conflict of interest and that he was still able to conduct fair, independent investigations. Warren, among others, said she was unconvinced.

    “It looks like, to anyone in the public, that you gave your boss a free pass,” she said. “The Fed continues to stonewall Congress, stonewall the public on the underlying information about these trades. This is not acceptable.”

    The Office of Inspector General declined to comment Wednesday night.

    After Silicon Valley Bank collapsed in March, Warren and Republican Sen. Rick Scott of Florida introduced a bill to require a presidentially appointed, Senate-confirmed inspector general to the Fed Board of Governors.

    A separate Fed investigation into SVB’s collapse, not involving Bialek, faulted Fed supervisors. Scott on Wednesday said he lacked confidence in Bialek’s ability to investigate those Fed supervisory lapses.

    “Somebody at the Federal Reserve that was responsible for these banks for supervision clearly did it wrong,” he said Wednesday, referring to bank collapses since 2008. “The average person in America pays for all this.”

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  • Mysterious rumblings were recorded in Earth’s stratosphere | CNN

    Mysterious rumblings were recorded in Earth’s stratosphere | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    Giant solar balloons were sent 70,000 feet up in the air to record sounds of Earth’s stratosphere — and the microphones picked up some unexpected sounds.

    The stratosphere is the second layer of Earth’s atmosphere, and its lower level contains the ozone layer that absorbs and scatters the sun’s ultraviolet radiation, according to NASA. The thin, dry air of the stratosphere is where jet aircraft and weather balloons reach their maximum altitude, and the relatively calm atmospheric layer is rarely disturbed by turbulence.

    Daniel Bowman, principal scientist at Sandia National Laboratories in New Mexico, was inspired in graduate school to explore the soundscape of the stratosphere after being introduced to the low-frequency sounds that are generated by volcanoes. Known as infrasound, the phenomenon is inaudible to the human ear.

    Bowman and his friends had previously flown cameras on weather balloons “to take pictures of the black sky above and the Earth far below” and successfully built their own solar balloon.

    He proposed attaching infrasound recorders to balloons to record the sounds of volcanoes. But then he and his adviser Jonathan Lees of the University of North Carolina, Chapel Hill, “realized that no one had tried to put microphones on stratospheric balloons for half a century, so we pivoted to exploring what this new platform could do,” Bowman said. Lees is a professor of Earth, marine and environmental sciences who researches seismology and volcanology.

    The balloons can take sensors twice as high as commercial jets can fly.

    “On our solar balloons, we have recorded surface and buried chemical explosions, thunder, ocean waves colliding, propeller aircraft, city sounds, suborbital rocket launches, earthquakes, and maybe even freight trains and jet aircraft,” Bowman said via email. “We’ve also recorded sounds whose origin is unclear.”

    The findings were shared Thursday at the 184th Meeting of the Acoustical Society of America in Chicago.

    A recording shared by Bowman from a NASA balloon that circled Antarctica contains infrasound of colliding ocean waves, which sounds like continual sighing. But other crackles and rustling have unknown origins.

    Listen to the sounds of the stratosphere

    Solar balloons captured a multitude of sounds in the second layer of Earth’s atmosphere, including colliding ocean waves — as well as sounds with unidentified origins.

    Source: Daniel Bowman/Sandia National Laboratories

    In the stratosphere, “there are mysterious infrasound signals that occur a few times per hour on some flights, but the source of these is completely unknown,” Bowman said.

    Bowman and his collaborators have conducted research using NASA balloons and other flight providers, but they decided to build their own balloons, each spanning about 19.7 to 23 feet (6 to 7 meters) across.

    The supplies can be found at hardware and pyrotechnic supply stores, and the balloons can be assembled on a basketball court.

    “Each balloon is made of painter’s plastic, shipping tape, and charcoal dust,” Bowman said via email. “They cost about $50 to make and a team of two can build one in about 3.5 hours. One simply brings it out to a field on a sunny day and fills it up with air, and it will carry a pound of payload to about 70,000 ft.”

    The charcoal dust is used inside the balloons to darken them, and when the sun shines on the dark balloons, the air inside them warms up and becomes buoyant. The inexpensive and easy DIY design means the researchers can release multiple balloons to collect as much data as possible.

    “Really, a group of high schoolers with access to the school gym could build a solar balloon, and there’s even a cellphone app called RedVox that can record infrasound,” Bowman said.

    Bowman estimated that he launched several dozen solar balloons to collect infrasound recordings between 2016 and April of this year. Microbarometers, originally designed to monitor volcanoes, were attached to the balloons to record low-frequency sounds.

    The researchers tracked their balloons using GPS, since they can travel for hundreds of miles and land in inconvenient locations.

    The longest flight so far was 44 days aboard a NASA helium balloon, which recorded 19 days worth of data before the batteries on the microphone died. Meanwhile, solar balloon flights tend to last about 14 hours during the summer and land once the sun sets.

    The advantage of the high altitude reached by the balloons means that noise levels are lower and the detection range is increased — and the whole Earth is accessible. But the balloons also present challenges for researchers. The stratosphere is a harsh environment with wild temperature fluctuations between heat and cold.

    “Solar balloons are a bit sluggish, and we’ve wrecked a few on bushes when trying to launch them,” Bowman said. “We’ve had to hike down into canyons and across mountains to get our payloads. Once, our Oklahoma State colleagues actually had a balloon land in a field, spend the night, and launch itself back in the air to fly another whole day!”

    Lessons learned from multiple balloon flights have somewhat eased the process, but now the greatest challenge for researchers is identifying the signals recorded during the flights.

    “There are many flights with signals whose origin we do not understand,” Bowman said. “They are almost certainly mundane, maybe a patch of turbulence, a distant severe storm, or some sort of human object like a freight train — but it’s hard to tell what is going on sometimes due to the lack of data up there.”

    Sarah Albert, a geophysicist at Sandia National Laboratories, has investigated a “sound channel” — a conduit that carries sounds across great distances through the atmosphere — located at the altitudes Bowman studies. Her recordings have captured rocket launches and other unidentified rumblings.

    Sandia National Laboratories geophysicists (from left) Daniel Bowman and Sarah Albert display an infrasound sensor and the box used to protect the sensors from extreme temperatures.

    “It may be that sound gets trapped in the channel and echoes around until it’s completely garbled,” Bowman said. “But whether it is near and fairly quiet (like a patch of turbulence) or distant and loud (like a faraway storm) is not clear yet.”

    Bowman and Albert will continue to investigate the aerial sound channel and try to determine where the stratosphere’s rumbles are originating — and why some flights record them while others don’t.

    Bowman is eager to understand the soundscape of the stratosphere and unlock key features, like variability across seasons and locations.

    It’s possible that helium-filled versions of these balloons could one day be used to explore other planets like Venus, carrying scientific instruments above or within the planet’s clouds for a few days as a test flight for larger, more complex missions.

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  • 5 things to know for May 3: Border, Texas shooting, Writers strike, Fed meeting, Sudan | CNN

    5 things to know for May 3: Border, Texas shooting, Writers strike, Fed meeting, Sudan | CNN

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    CNN
     — 

    Many airline employees have gone for years without pay raises, even after enduring difficult working conditions during the pandemic. Pilots for American Airlines voted to strike this week, and Southwest pilots plan to vote as well, but they won’t be walking off the job anytime soon — if at all — due to a labor law that places considerable hurdles in the way of any union that wants to strike.

    Here’s what else you need to know to Get Up to Speed and On with Your Day.

    (You can get “CNN’s 5 Things” delivered to your inbox daily. Sign up here.)

    In preparation for an expected surge of crossings at the US-Mexico border next week, the Biden administration plans to send an additional 1,500 active-duty troops to the border to free up Department of Homeland Security agents. The troops will take on strictly administrative roles, officials said, and will join around 2,500 National Guard troops already in place. The surge of migrants is expected because Title 42, the Trump-era policy that allowed authorities to quickly turn away certain migrants at the border during the pandemic, expires on May 11. Encounters between border agents and undocumented immigrants are at around 7,000 per day at the moment and are expected to rise dramatically next week, despite a warning from the State Department and DHS about a new, more punitive policy related to border crossings.

    The man suspected of gunning down five people at a neighbor’s home in Texas last week — including a mother and her 9-year-old son — was captured Tuesday after a dayslong manhunt. The suspect was found under a pile of laundry in the closet of a home just miles from the Cleveland, Texas, residence where the shooting took place, San Jacinto County Sheriff Greg Capers said. “We just want to thank the person who had the courage and bravery to call in the suspect’s location,” an FBI spokesperson said, adding that authorities are now investigating whether the suspect had any help in hiding. The gunman will be held on five counts of murder and his bond is set at $5 million.

    Official describes suspect found hiding in laundry

    Popular late night shows are airing repeat episodes “until further notice” due to the film and TV writers’ strike, sources tell CNN. Several shows including “Saturday Night Live,” “Jimmy Kimmel Live!” and “The Late Show with Stephen Colbert” began airing repeat episodes as of Tuesday. Seth Meyers and Jimmy Fallon, who host NBC’s “Late Night with Seth Meyers” and “The Tonight Show,” respectively, previously said they would honor the strike and not air any new episodes as well. Late night shows are being especially impacted because they depend on their writers for bits, monologues and celebrity interview questions. Until an agreement is reached, analysts say the strike could shut down production on shows and cause a domino effect in the wider realm of the entertainment industry, pushing back the return of many programs set for the fall.

    exp TSR.Todd.writers.guild.strike.impacts.tv.movies_00003201.png

    Strike means TV shows and films in jeopardy

    Federal Reserve officials are expected to raise interest rates by a quarter point today. The Fed’s decision comes just two days after the collapse of First Republic Bank, the second-biggest bank failure in US history. When the Fed raises interest rates, banks need to raise the rates on their savings accounts in order to lure depositors from their competitors. That can put a disproportionate amount of pressure on mid-sized and regional banks — like the ones who saw depositors pull their money when the banking crisis began in March. Still, the Fed will move to raise interest rates today to lower inflation. To do that, it has to intentionally slow parts of the economy by making it more expensive for banks, and thereby consumers, to borrow money.

    Leaders of Sudan’s warring factions agreed to a seven-day ceasefire on Tuesday, the foreign ministry of South Sudan said in a statement. However, previous ceasefires have failed to quell the fighting between the rival factions in various parts of the country. Both sides — the Sudanese Armed Forces and the paramilitary Rapid Support Forces — have yet to comment on the report on their official channels. Tuesday’s announcement came after the UN’s refugee agency warned more than 800,000 people may flee to neighboring countries, as the ongoing violence blocks evacuation convoys from key ports in Sudan. More than 70,000 people have already fled Sudan to neighboring countries, a spokesperson for the agency said earlier this week.

    exp sudan ceasefire madowo FST 050312ASEG1 cnni world_00002001.png

    Seven-day ceasefire expected to begin Thursday in Sudan

    Teenage boy opens fire at Serbian school, killing eight children and a security guard, officials say

    Eight children and a security guard have have been killed after a 14-year-old boy allegedly opened fire in an elementary school in the Serbian capital of Belgrade, according to Serbia’s Interior Ministry. Several children and a teacher were also injured in the attack, officials said. The boy is in custody following the incident. 

    Cockroach at the Met Gala goes viral

    A bug on the red carpet received more buzz than some A-list celebrities. Watch the video here.

    Top 10 best cuisines in the world, according to CNN Travel

    Check out this list of appetizing cuisines. *Stomach rumbles — loudly* 

    NBA announces Most Valuable Player for 2022-2023

    Joel Embiid of the Philadelphia 76ers won the coveted award after the center topped the charts last year.

    Webb telescope detects mysterious water vapor in a nearby star system

    Astronomers detected water vapor around a rocky exoplanet located 26 light-years away from Earth. Here’s what it could mean.

    Kevin Costner and wife Christine Baumgartner are getting a divorce

    After more than 18 years, the two are going their separate ways.

    0

    That’s how many criminal charges, or lack thereof, will be filed against one of the former Memphis police officers involved in the fatal traffic stop that led to Tyre Nichols’ death. On January 7, 29-year-old Nichols, a Black man, was repeatedly punched and kicked by Memphis police officers following a traffic stop and brief foot chase. Former White Memphis police officer Preston Hemphill was part of the initial traffic stop in which bodycam footage revealed he used an “assaultive statement” after firing a stun gun at Nichols. Hemphill was not involved in the second encounter where Nichols was brutally beaten by police.

    “The public shouldn’t have their daily lives ruined by so-called ‘eco-warriors’ causing disruption.”

    — UK Home Secretary Suella Braverman, issuing a statement Tuesday on the government’s plan to take stronger action against peaceful protesters, days ahead of the coronation of King Charles III. The Home Office said parts of a controversial law will go into place today that will “give police the powers to prevent disruption at major sporting and cultural events.” For example, protestors who physically attach themselves to things like buildings could receive a six-month prison sentence or “unlimited fine,” the Home Office said in a statement.

    Check your local forecast here>>>

    Teen’s grand entrance steals the show at prom

    Most teenagers favor limousines and luxury cars for their prom transportation. These high school students, on the other hand, preferred a tank for their grand entrance. (Click here to view

    Tank To Prom 1

    Teen’s grand entrance steals the show at prom

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  • New Jersey residents warned of potentially hazardous chemicals following fire and cleanup at former industrial site | CNN

    New Jersey residents warned of potentially hazardous chemicals following fire and cleanup at former industrial site | CNN

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    CNN
     — 

    Residents and business owners in parts of Monmouth County, New Jersey, have been warned of potentially hazardous materials at a nearby former industrial site after firefighters found leaking containers and materials on fire at the location.

    The US Environmental Protection Agency has started overseeing the sampling and removal of around 200 to 300 chemical drums and containers found at the former manufacturing facility in Howell Township, it said in an April community update. It is not yet clear what type of chemicals the drums and containers hold, the EPA said.

    EPA spokesperson Stephen McBay told CNN Sunday there is “no immediate need for evacuations” as the agency actively conducts cleanup at the site.

    The cleanup comes after a local fire department discovered materials burning inside an old metal structure at the site on February 9, the EPA said. Firefighters found numerous drums and smelled a chemical odor before putting out the fire and called in other agencies for support in addressing potentially hazardous materials.

    In March, the EPA said the New Jersey Department of Environmental Protection assessed the site and found roughly “200 to 300 55-gallon drums and containers, many of which were either bulging, rusting, denting, or leaking.”

    The department then asked for assistance from the EPA, which said it found “breaches in the front fence of the property and no fence securing any other side of the property.” The EPA also observed containers that were leaking and labeled as hazardous materials, it said.

    The site is the former location of Compounders Inc., which manufactured chemical compounds, including glues, adhesives, and asphalt materials, according to the EPA. Compounders operated until 2019. The current owner – who has not been publicly identified – purchased the business in 2021.

    When asked by CNN if criminal charges are pending over the disposal of potentially hazardous material at the site, the EPA’s McBay said the agency “does not provide information on ongoing or potentially ongoing enforcement actions.”

    Resident and business owners within a mile of the site were sent a letter on March 30 from the Howell Township Office of Emergency Management, warning of potential hazardous materials at the site. In addition to the large number of drums found, the letter said authorities also found “spilled materials on the ground and open drums, as well as solid waste.”

    The letter included links to Howell Township’s website, with community updates on the EPA’s work at the site. On March 9, advice was posted for evacuation routes around the 15 Marl Road site to be used in case of an emergency event, such as a fire.

    Residents at a community meeting on March 21 were told the evacuation plan was created “out of an abundance of caution.”

    There are at least three schools and two child care centers in the area, according to an April community update.

    The letter from the township’s Office of Emergency Management added, “We estimate the risk of a release of any potential hazardous material to be very low. After all drums are removed from the property, an investigation will be ongoing with the State NJDEP and EPA to determine what, if any, impacts have occurred to groundwater, soil or surface water.”

    The EPA has placed 24/7 security on the property and said it has installed a perimeter fence “to ensure there is no illegal trespassing on or around the site.”

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  • House fails to override Biden’s veto of resolution to overturn EPA water rule | CNN Politics

    House fails to override Biden’s veto of resolution to overturn EPA water rule | CNN Politics

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    CNN
     — 

    The House of Representatives on Tuesday failed to override President Joe Biden’s veto of a resolution to overturn an Environmental Protection Agency water rule.

    Republicans have called the rule federal overreach and argue it places a burden on the agriculture community by being too restrictive in defining what is a navigable waterway. Democrats counter, saying the rule is critical for protecting the nation’s waterways and safeguarding clean water.

    A two-thirds majority vote would have been needed in both chambers of Congress to override the veto – a high threshold that was not expected to be met. The final vote was 227-196 with 10 Democrats crossing over to vote with Republicans to override the veto, and one Republican voting with the Democrats against the resolution.

    Biden vetoed the GOP-led resolution earlier this month. “I just vetoed a bill that attempted to block our Administration from protecting our nation’s waterways – a resource millions of Americans depend on – from destruction and pollution,” the president said at the time. “Let me be clear: Every American has a right to clean water. This veto protects that right.”

    Biden’s announcement marked both the second veto of his presidency and the second veto he had issued in recent weeks, illustrating how power dynamics in Washington have shifted since Republicans became the majority party in the House of Representatives at the beginning of this year.

    The House and Senate had previously passed the resolution to rescind the waterway rule.

    In the Senate, Democratic Sens. Catherine Cortez Masto and Jacky Rosen of Nevada, Jon Tester of Montana, Joe Manchin of West Virginia and Arizona independent Sen. Kyrsten Sinema joined Republicans in support of the resolution to overturn the rule.

    Proponents of the resolution have argued the rule amounts to burdensome, executive branch overreach.

    “President Biden is ignoring the will of a bipartisan majority in Congress, leaving millions of Americans in limbo, and crippling future energy and infrastructure projects with red tape,” West Virginia Republican Sen. Shelley Moore Capito, who led the joint resolution in the Senate, said in response to Biden’s veto.

    Last month, the House failed to override the president’s veto of a measure to overturn a retirement investment rule that allows managers of retirement funds to consider the impact of climate change and other environmental, social and governance factors when picking investments.

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  • Supreme Court seems sympathetic to postal worker who didn’t work Sundays in dispute over religious accommodations | CNN Politics

    Supreme Court seems sympathetic to postal worker who didn’t work Sundays in dispute over religious accommodations | CNN Politics

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    CNN
     — 

    The Supreme Court seemed to side with a former mail carrier, an evangelical Christian, who says the US Postal Service failed to accommodate his request to not work on Sundays.

    A lower court had ruled against the worker, Gerald Groff, holding that his request would cause an “undue burden” on the USPS and lead to low morale at the workplace when other employees had to pick up his shifts.

    But during oral arguments on Tuesday, there appeared to be consensus, after almost two hours of oral arguments, that the appeals court had been too quick to rule against Groff.

    There seemed to be, as Justice Elena Kagan put it, some level of “kumbaya-ing” between the justices on the bench at times.

    But as justices sought to land on a test that lower courts could use to clarify how far employers must go to accommodate their employees’ religious beliefs, differences arose when a lawyer for Groff suggested that the court overturn decades-old precedent. Conservative Justice Samuel Alito seemed open to the prospect.

    Critically, however, Justice Amy Coney Barrett and Brett Kavanaugh were sympathetic to arguments made by the Postal Service that granting Groff’s request might cause morale to plummet among the other employees. Kavanaugh noted that “morale” among employers is critical to the success of any business. And several justices nodded to the financial difficulties the USPS has faced over the years.

    Groff, who lives in Pennsylvania, served in 2012 as a rural carrier associate at the United States Postal Service, a position that provides coverage for absent career employees who have earned the ability to take off weekends. Rural carrier associates are told they need flexibility.

    In 2013, Groff’s life changed when the USPS contracted with Amazon to deliver packages on Sundays. Groff’s Christian religious beliefs bar him from working on Sundays.

    The post office contemplated some accommodations to Groff such as offering to adjust his schedule so he could come to work after religious services, or telling him he should see if other workers could pick up his shifts. At some point, the postmaster himself did the deliveries because it was difficult to find employees willing to work on Sunday. Finally, the USPS suggested Groff choose a different day to observe the Sabbath.

    The atmosphere with his co-workers was tense and Groff said he faced progressive discipline. In response, he filed complaints with the Equal Employment Opportunity Commission, which is charged with enforcing federal laws that make it illegal to discriminate against an employee because of religion.

    Groff ultimately left in 2019. In a resignation letter, he said he had been unable to find an “accommodating employment atmosphere with the USPS that would honor his religious beliefs.”

    Groff sued arguing that the USPS violated Title VII – a federal law that makes it unlawful to discriminate against an employee based on his religion. To make a claim under the law, an employee must show that he holds a sincere religious belief that conflicts with a job requirement, he must inform his employer and has to have been disciplined for failing to comply.

    Under the law, the burden then shifts to the employer. The employer must show that they made a good faith effort to “reasonably accommodate” the employee’s belief or demonstrate that such an accommodation would cause an “undue hardship” upon the employer.

    District Judge Jeffrey Schmehl, an appointee of former President Barack Obama, ruled against Groff, holding that that his request to not work on Sundays would cause an “undue hardship” for the USPS.

    The 3rd US Circuit Court of Appeals affirmed the ruling in a 2-1 opinion.

    “Exempting Groff from working on Sundays caused more than a de minimis cost on USPS because it actually imposed on his coworkers, disrupted the workplace and workflow, and diminished employee morale,” the 3rd Circuit wrote in its opinion last year.

    “The accommodation Groff sought (exemption from Sunday work)” the court added, “would cause an undue hardship on USPS.”

    A dissenting judge, Thomas Hardiman, offered a road map for justices seeking to rule in favor of Groff. The main thrust of his dissent was that the law requires the USPS to show how the proposed accommodation would harm “business” – not Groff’s coworkers.

    “Neither snow nor rain nor heat nor gloom of night stayed Gerald Groff from the completion of his appointed rounds,” wrote Hardiman, a George W. Bush nominee who was on a shortlist for the Supreme Court nomination that went to Justice Neil Gorsuch in 2017. “But his sincerely held religious belief precluded him from working on Sundays.”

    Groff’s lawyer, Aaron Streett, told the high court that the USPS could have done more and was wrong to claim that “respecting Groff’s belief was too onerous.” He urged the justices to cut back or invalidate precedent and allow an accommodation that would allow the worker to “serve both his employer and his God.”

    “Sunday’s a day where we get together and almost taste heaven,” Groff told The New York Times recently. “We come together as believers. We celebrate who we are, together. We worship God. And so to be asked to deliver Amazon parcels and give all that up, it’s just really kind of sad.”

    The Biden administration has urged the high court to simply clarify the law to make clear that an employer is not required to accommodate an employee’s Sabbath observance by “operating shorthanded or regularly paying overtime to secure replacement workers.”

    Solicitor General Elizabeth Prelogar acknowledged, however, that employer could still be required to bear other costs such as administrative expenses associated with rearranging schedules.

    This story has been updated with additional details.

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  • Elon Musk sets low expectations before first SpaceX launch of Starship, most powerful rocket ever built | CNN

    Elon Musk sets low expectations before first SpaceX launch of Starship, most powerful rocket ever built | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    Just a few months after NASA introduced the world to the most powerful rocket ever flown to orbit, Elon Musk’s SpaceX is prepared to set off its own creation — which could pack nearly twice the power of anything flown before.

    SpaceX’s vehicle, called Starship, is currently sitting on a launch pad at the company’s facilities on the southern Texas coastline. The company is targeting liftoff at 8 a.m. CT (9 a.m. ET) on Monday, although it has the ability to take off anytime between 8 a.m. CT (9 a.m. ET) and 9:30 a.m. CT (10:30 a.m. ET).

    “I guess I’d like to just set expectations low,” SpaceX CEO Elon Musk said during a Twitter “Spaces” event for his subscribers Sunday evening. “If we get far enough away from launch pad before something goes wrong, then I think I would consider that to be a success. Just don’t blow up the pad.”

    He added: “There’s a good chance that it gets postponed since we’re going to be pretty careful about this launch.”

    It will be SpaceX’s first attempt to launch a fully assembled Starship vehicle, building on a years-long testing campaign.

    Musk has talked about Starship — making elaborate presentations about its design and purpose — for half a decade, and he frequently harps on its potential for carrying cargo and humans to Mars. Musk has even said that his sole purpose for founding SpaceX was to develop a vehicle like Starship that could establish a human settlement on Mars.

    Additionally, NASA has already awarded SpaceX contracts and options worth several billions of dollars to use Starship to ferry government astronauts to the surface of the moon under the space agency’s Artemis program.

    The inaugural flight test will not complete a full orbit around Earth. If successful, however, it will travel about 150 miles above Earth’s surface, well into altitudes deemed to be outer space.

    Starship consists of two parts: the Super Heavy booster, a gargantuan rocket that houses 33 engines, and the Starship spacecraft, which sits atop the booster during launch and is designed to break away after the booster expends its fuel to finish the mission.

    The massive Super Heavy rocket booster will give the first blast of power at liftoff.

    Less than three minutes after takeoff, it’s expected to expend its fuel and separate from the Starship spacecraft, leaving the booster to be discarded in the ocean. The Starship will use its own six engines, blazing for more than six minutes, to propel itself to nearly orbital speeds.

    The vehicle will then complete a partial lap of the planet, reentering the Earth’s atmosphere near Hawaii. It’s expected to splash down off the coast about an hour and a half after liftoff.

    Starship’s ultimate success or failure immensely consequential. Not only is it crucial to SpaceX’s future as a company — it also underpins the United States government’s ambitions for human exploration.

    But it’s not all riding on this inaugural test flight. SpaceX has long established its willingness to embrace mishaps, mistakes and explosions in the name of refining the design of its spacecraft.

    In the lead-up to the first launch of the company’s Falcon Heavy rocket in 2018, which held the title of most powerful rocket before NASA’s SLS took flight last year, Musk foresaw only a 50-50 chance of success.

    “People (came) from all around the world to see what will either be a great rocket launch or the best fireworks display they’ve ever seen,” Musk told CNN at the time.

    The inaugural Falcon Heavy launch was ultimately successful.

    Development of Starship has been based at SpaceX’s privately held spaceport about 40 minutes outside Brownsville, Texas, on the US-Mexico border. Testing began years ago with brief “hop tests” of early spacecraft prototypes. The company began with brief flights that lifted a few dozen feet off the ground before evolving to high-altitude flights, most of which resulted in dramatic explosions as the company attempted to land them upright.

    One suborbital flight test in May 2021, however, ended in success.

    SpaceX workers on February 8 make final adjustments to Starship's orbital launch mount, and the booster's matrix of Raptor engines within, ahead of the company's engine test.

    Since then, SpaceX has also been working to get its Super Heavy booster prepared for flight. The massive, 230-foot-tall (69-meter-tall) cylinder is packed with 33 of the company’s Raptor engines.

    Fully stacked, Starship and Super Heavy stand about 400 feet (120 meters) tall.

    SpaceX has been waiting more than a year to get FAA approval for this launch attempt.

    The company, and federal regulators tasked with certifying SpaceX launches won’t pose risks to people or property in the area surrounding the launch site, have faced significant pushback from the local community, including from environmental groups.

    But the Federal Aviation Administration, which licenses commercial rocket launches, announced Friday, April 14, that it granted the company’s request for an uncrewed flight test of the rocket out of the SpaceX facilities in South Texas.

    “After a comprehensive license evaluation process, the FAA determined SpaceX met all safety, environmental, policy, payload, airspace integration and financial responsibility requirements,” the agency said in a statement.

    During a call with reporters last week, an FAA official, who declined to be named for publication, said that the agency has been overseeing SpaceX’s compliance with the mitigating actions, some of which are still in the works, even as the company prepares for launch.

    The FAA official said government personnel will be on the ground to ensure SpaceX complies with its license during the test launch.

    SpaceX’s contract with NASA to use Starship for the space agency’s Artemis III moon landing later this decade leaves much of Starship’s development work to SpaceX. A $2.9 billion deal, inked in April 2021, was awarded to SpaceX over several competitors. It was later expanded to include a second lunar landing mission in 2027.

    NASA has been working over the past year to hash out a work flow between the space agency and SpaceX. It’s a dynamic the two organization have had to iron out in previous SpaceX-NASA projects, including an ongoing partnership that uses SpaceX’s Dragon spacecraft to get astronauts to and from the International Space Station.

    A moon mission, however, involves more powerful and complex hardware.

    NASA is not, however, involved in planning the flight profile for this test flight or directing SpaceX on what to do, according to Lisa Hammond, NASA’s associate program manager of the Human Landing System at Johnson Space Center in Houston.

    Hammond did not share a specific checklist of tests or flights that NASA hopes to see before Starship is entrusted with a moon landing mission.

    “I would not put it with a number,” she said, adding that the Artemis II mission, slated for next year, will see humans fly atop the SLS rocket after only one uncrewed test flight.

    “The confidence comes in the design, the confidence comes in the safety of the vehicle for the crew,” Hammond said.

    SpaceX president Gwynne Shotwell previously said she hopes the company will conduct more than 100 orbital test flights of Starship before putting humans on board, as the company will need to do in order to help NASA carry out its moon landing with the Artemis III mission, slated for 2025.

    “I think that would be a great goal,” Shotwell said Wednesday, when asked whether that target was still feasible. “I don’t think we will do 100 flights of Starship next year, but maybe (in) 2025 we will do 100 flights.”

    NASA’s current timeline targets 2025 for the first lunar landing mission, which will see astronauts transfer from their Orion capsule, which will launch atop a NASA Space Launch System rocket, and into a Starship spacecraft already in lunar orbit. It will be the Starship vehicle that ferries the crew down to the lunar surface.

    It’s not clear, however, if 2025 is feasible. NASA’s inspector general has already suggested it is not. Delays, according to comments from the inspector general in March 2022, could revolve around Starship.

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  • Six takeaways from campaign fundraising filings by Trump, Haley, Santos and more | CNN Politics

    Six takeaways from campaign fundraising filings by Trump, Haley, Santos and more | CNN Politics

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    CNN
     — 

    Former President Donald Trump’s criminal indictment helped jolt his fundraising. GOP presidential candidate Nikki Haley faces questions about her campaign math. Embattled New York Rep. George Santos refunded more contributions than he took in. And some – but not all – of the Democratic Party’s most vulnerable Senate incumbents have stepped up their fundraising ahead of tough 2024 election fights.

    Here’s a look at a few takeaways from new first-quarter campaign filings covering the first three months of 2023:

    Trump raised about $14.4 million for his main campaign committee in the first quarter of this year – with donations spiking at the end of March as news broke of his indictment by a Manhattan grand jury.

    The new filings suggest that the former president’s legal troubles have helped him politically and financially as he makes a third bid for the White House. But the amount only captures the start of what the campaign said was a fundraising surge that continued into the beginning of the second quarter.

    Even so, Trump’s first-quarter haul lagged behind the pace he had set in earlier campaigns.

    Earlier this month, Haley;s campaign publicized what it boasted as a strong haul for her 2024 presidential bid: The former South Carolina governor had raised “more than $11 million in just six weeks,” according to a campaign release.

    But official filings with the Federal Election Commission on Saturday night show that the campaign appears to have double-counted money routed among Haley’s fundraising committees, overstating the topline figure.

    The three committees connected to Haley raised a total of $8.3 million – still a sizable showing for a first-time presidential candidate but not the figure publicly touted by the former UN ambassador’s campaign.

    Fundraising serves as one benchmark of support for a campaign, and candidates are often eager to tout big numbers in advance of their official filings with federal regulators.

    In an email to CNN on Sunday, Haley campaign spokesman Ken Farnaso defended the $11 million figure, saying the accounting mirrored how other candidates have previously described their fundraising.

    Other candidates have sought to present their campaign filings in the most favorable light. Trump’s campaign, for instance, touted a $9.5 million haul during the first six weeks of his campaign. But, in that window, only about $5 million flowed into the joint fundraising committee that powers his political operation.

    Embattled Rep. George Santos’ campaign refunded more contributions than it took in during the first three months of the year, according to a campaign report the New York Republican filed Saturday.

    The freshman congressman from Long Island received $5,333 in contributions during the first quarter and refunded more than $8,000 in donations. It’s highly unusual for a sitting member of Congress to report a net loss on a fundraising report.

    By contrast, another first-term congressman, Republican Anthony D’Esposito, who represents a neighboring district, reported more than $670,000 in receipts during the first quarter, including more than $300,000 from political action committees and other lawmakers’ campaign committees.

    Santos, who has lied about his education, work history and family background, faces a House ethics inquiry, along with local and federal investigations into his finances.

    His campaign reported $25,000 in remaining cash as of March 31 and $715,000 in debt – which Santos has described as personal funds he loaned to his successful 2020 effort for New York’s 3rd Congressional District.

    (How Santos, who in 2020 reported a $55,000 salary and no assets when he ran unsuccessfully for Congress, amassed the money to fund his campaign two years later remains one of the biggest questions surrounding his political rise.)

    Last month, Santos formally filed paperwork for a 2024 reelection bid, but it followed a demand from the FEC that he declare his intentions after he crossed a fundraising threshold that required him to file a statement of candidacy.

    Some of his fellow Republicans have urged the scandal-plagued congressman to resign or not seek reelection. Last month, when asked by CNN whether he intended to run again, Santos responded, “Maybe.”

    In the closely watched race to succeed California Sen. Dianne Feinstein, Rep. Adam Schiff outraised the rest of the Democratic field, bringing in $6.7 million during the first quarter – topping the nearly $4.5 million raised by Rep. Katie Porter and roughly $1.3 million collected by Rep. Barbara Lee.

    Schiff also led the field in available cash, ending March with more than $24.6 million stockpiled in his campaign account.

    Porter, who transferred nearly $11 million from her House campaign into her Senate account this year, had more than $9.4 million in cash still available on March 31. Lee trailed with a little more than $1.1 million in available cash.

    Feinstein, who at 89 is the oldest sitting senator, has announced she will not seek reelection next year – although she is facing calls from some Democrats to retire now after being sidelined with shingles since early March.

    Last week, she asked to be temporarily replaced on the Senate Judiciary Committee while she continues her recuperation.

    In Arizona, the leading Democratic candidate for Senate, Rep. Ruben Gallego, outraised independent incumbent Sen. Kyrsten Sinema, bringing in nearly $3.8 million to his opponent’s $2.1 million.

    Sinema, who changed her affiliation from Democrat late last year, continues to caucus with her former party. She has not formally declared an intention to seek a second term. But she has the resources to compete in what could be a costly, three-way general election battle for the seat. She ended March with nearly $10 million in available cash to Gallego’s $2.7 million.

    Mark Lamb, an Arizona sheriff aligned with Trump, this month became the first major Republican candidate to enter the race, but he won’t file his first fundraising report until July.

    Democratic Sen. Sherrod Brown of Ohio – who is seeking a fourth term in what will be one of the most closely watched contests of the 2024 cycle – raised more than $3.5 million in the first quarter, up from the roughly $333,000 he collected during the last three months of 2022.

    Several Republicans have lined up to challenge Brown, including Cleveland businessman Bernie Moreno and former state Sen. Matt Dolan, whose family owns the Cleveland Guardians Major League Baseball team.

    Saturday’s filings show Dolan collecting $3.3 million – most of which he loaned his campaign. Moreno joined the race in April, after the first-quarter fundraising period had ended.

    Brown is one of three Democratic senators who are up for reelection next year in states won by Trump in 2020.

    Montana Sen. Jon Tester, another Democratic incumbent facing a tough reelection battle in a Republican state, raised $5 million in the first quarter and had $7 million stockpiled as of March 31.

    In deep-red West Virginia – a state Trump won by nearly 40 points in 2020 – Democratic Sen. Joe Manchin has not yet declared whether he will seek a third full term in 2024. He pulled in just $370,000 in the first quarter but was sitting atop a $9.7 million war chest of available cash as of March 31.

    West Virginia Rep. Alex Mooney, the first major Republican to enter the Senate race, collected roughly $500,000 in the first quarter.

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  • Three investors on how to protect your portfolio | CNN Business

    Three investors on how to protect your portfolio | CNN Business

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


    New York
    CNN
     — 

    Wall Street has been hit with a barrage of complex signals about the economy’s health over the past month. From banking turmoil to weakening jobs data to slowing inflation, and now the start of earnings season, investors have remained largely resilient.

    But the Federal Reserve’s March meeting minutes revealed last week that officials believe the economy will enter a recession later this year. While that’s not new news to investors who have worried that a recession is on the horizon for the past year, it does mean that markets could take a turn for the worse.

    So, how should investors protect their portfolios? Investors say there isn’t one asset that Wall Street should pile all their bets on, but there are fundamentals that should underlie their investment strategies.

    Jimmy Chang, chief investment officer at Rockefeller Global Family Office, says he advises clients to be patient, defensive and selective when navigating the market.

    In other words, investors should make decisions based on logic, not a fear of missing out.

    “You chase these rallies and then it fizzles out — you’re left holding the bag,” he said.

    Chang also recommends that investors stay defensive by investing in high-quality blue chip stocks with solid balance sheets and keep dry powder.

    Doug Fincher, portfolio manager at Ionic Capital Management, says investors should brace their portfolios against inflation.

    The Personal Consumption Expenditures price index rose 5% for the 12 months ended in February, showing that inflation remains much higher than the Fed’s 2% target.

    Coupled with the fact that the central bank has signaled that it plans to pause interest rate hikes sometime this year, it’s possible inflation could prove stickier than Wall Street expects.

    “It is the boogeyman of traditional investments,” Fincher said.

    He manages the Ionic Inflation Protection exchange-traded fund, which seeks to specifically perform well during periods of high inflation. The portfolio’s core exposure is inflation swaps, which are transactions in which one investor agrees to swap fixed payments for floating payments tied to the inflation rate. The fund also invests in short-duration Treasury Inflation Protected Securities.

    Megan Horneman, chief investment officer at Verdence Capital Advisors, says that her firm has hedged its portfolio in cash. A well-known haven, cash is a better alternative to other perceived safe spots like gold, which tends to be volatile and run up too fast, she said.

    Investors have rushed into money market funds in recent weeks after the banking turmoil both shook their confidence in the banking system and sent ripples through the market.

    “Cash is actually earning you something at this point,” Horneman said. “You have to look long term.”

    Earnings season kicked off Friday with a bonanza of earnings from the nation’s largest banks.

    Perhaps most noteworthy out of the bunch was JPMorgan Chase, which reported record revenue and an earnings beat for its latest quarter.

    The bank has $3.67 trillion in assets, making it the largest bank in the country and a bellwether for the economy. Strong earnings reports from the New York-based bank and its peers including Wells Fargo, Citigroup and PNC Financial Services have shown a promising start to the earnings season.

    Charles Schwab, Goldman Sachs, Bank of America and Morgan Stanley report next week.

    Here are some key takeaways from JPMorgan Chase’s first-quarter earnings:

    • The company guided net interest income to be about $81 billion in 2023, up $7 billion from its previous estimate. That’s especially important because this earnings season is all about guidance, as investors try to gauge whether the economy is headed for a recession and which companies will be able to weather a potential downturn.
    • CEO Jamie Dimon said in the post-earnings conference call that while financial conditions are a bit tighter after the collapse of Silicon Valley Bank and Signature Bank, he doesn’t see a credit crunch. But chances of a recession are now higher, he said.
    • The company said that its portfolio’s exposure to the office sector is less than 10%, addressing concerns that the $20 trillion commercial real estate industry could be the next space to see turmoil.

    Read more here.

    Monday: Empire State manufacturing index and homebuilder confidence index. Earnings report from Charles Schwab (SCHW).

    Tuesday: Earnings reports from Bank of America (BAC), Goldman Sachs (GS), Johnson & Johnson (JNJ), Netflix (NFLX), United Airlines (UAL) and Western Alliance Bancorp (WAL).

    Wednesday: Earnings reports from Citizens Financial Group (CFG), Morgan Stanley (MS), Tesla (TSLA) and International Business Machines (IBM). Speech from NY Federal Reserve President John Williams.

    Thursday: Philadelphia Fed manufacturing index, jobless claims, mortgage rates, US leading economic indicators and existing home sales. Earnings reports from AutoNation (AN) and American Express (AXP).

    Friday: Manufacturing PMI and services PMI. Earnings report from Procter & Gamble (PG).

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  • Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

    Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

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    CNN
     — 

    A fire burning at a recycling plant in Richmond, Indiana, is mostly out, but hundreds remain evacuated from their homes as crews monitor the air for chemicals and collect potentially harmful debris from neighboring schools and homes, officials said Saturday.

    Richmond residents who live within a half a mile radius of the recycling plant – about 2,000 of Richmond’s 35,000 residents – have been under a mandatory evacuation order since Tuesday, when the massive inferno exploded at the plastic-filled recycling plant in Richmond, sending thick, black smoke over the area.

    When they can return home will mainly depend on whether it’s safe to breathe the air in their community. Officials had warned that the smoke the fire spawned was “definitely toxic,” forcing the closure of Richmond public schools for days as the US Environmental Protection Agency performed air sampling and monitoring tests in the area.

    An announcement was initially expected Saturday on when evacuation orders could be lifted, but Richmond city officials later said that no determination had been made. “We have another meeting in the morning to determine the best time to lift the evacuation order,” Mayor Dave Snow said Saturday evening.

    “Unfortunately, we are unable to provide an exact time when evacuation orders will be lifted. As air monitoring results come back from lab testing and they can be analyzed by our health experts, we are hoping to be able to allow residents to return to their homes,” Wayne County Emergency Management Agency officials said Saturday.

    Those downwind from the fire were asked to continue to shelter in place “if they feel they are in danger or find themselves in a smoke plume,” emergency officials said.

    More meetings and data analysis are needed before the evacuation order can be lifted, Richmond Fire Chief Tim Brown told CNN Saturday.

    As for the blaze itself, Brown said firefighters have knocked down 98-99% of the fire at the recycling plant as of Saturday.

    “Right now, there is no plume, there is no product being off-gassed from the fire itself,” Brown told CNN. “What we have coming off of it is mainly a white smoke or some steam. We have no plume. We have a slight wind, which is kind of pushing things out.”

    Inside the facility, there are hot spots and occasional small fires that will continue to smolder for days and produce smoke, soot or the smell of burnt plastic, emergency officials said.

    In the meantime, work is underway to clear debris scattered in the community from the toxic fire.

    Some samples of debris from the area tested positive for asbestos containing materials, Wayne County emergency officials said, citing preliminary tests by the EPA.

    “Because all debris has the potential to contain asbestos, it is important that a trained professional remove all materials suspected to be from the fire,” emergency officials said, asking residents to not disturb or touch any debris they find on their property.

    Asbestos is a naturally occurring, but very toxic, substance that was once widely used for insulation. When inhaled or ingested, asbestos fibers can become trapped in the body, and may eventually cause genetic damage to the body’s cells. Exposure may also cause mesothelioma, a rare and aggressive form of cancer.

    Crews in protective gear began collecting debris from three schools near the fire site on Saturday, including three in Richmond and one school in Ohio.

    Officials said that schools impacted with debris will be cleared first, and then contractors will begin to deploy drones to search rooftops for additional debris, according to the post.

    “After school grounds are cleared, these contractors will begin removing debris from residential properties, parks and/or public areas, and businesses,” city officials say in the post.

    The county said the EPA is bringing in federal contractors to assist with the proper cleanup and removal of visible debris in both Indiana and Ohio.

    A primary health concern to residents is particulate matter, which could cause respiratory problems if inhaled, Christine Stinson, who heads the Wayne County Health Department, previously said.

    At the fire zone’s center, the chemicals hydrogen cyanide, benzene, chlorine, carbon monoxide and volatile organic compounds, or VOCs, were detected, the EPA said Friday. They were not detected outside the evacuation zone, the agency said.

    Potentially harmful VOCs also were found in six air samples, the agency said, without saying where the samples were taken.

    Particulate matter also was found inside and outside the half-mile evacuation zone, as expected, the agency said.

    Additionally, one of two air samples taken a little more than a mile from the fire site detected chrysotile asbestos in debris, an EPA official said Thursday. Also called white asbestos, chrysotile asbestos can cause cancer and is used in products from cement to plastics to textiles.

    As for water quality, testing downstream of the fire site is underway and officials say they have “not found anything of immediate alarm, including any sign of fish kills.”

    Crews did find some ash and loose plastic debris, “but weir booms have been installed and are successfully capturing this material. Likewise, Indiana American Water has also been closely monitoring the drinking water and has reported no unusual readings or results from testing,” Wayne County emergency officials said.

    The cause of the fire remains under investigation and likely won’t be known for weeks, officials said. But local leaders have shared concerns since at least 2019 that the facility had hazards and building code violations, records show.

    The mayor has accused the plant’s owner of ignoring a city order to clean up the property, saying the plant was a fire hazard.

    CNN has sought comment from the plant’s owner, Seth Smith. The attorney who previously represented Smith in a related lawsuit declined to comment.

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  • The fire at an Indiana plastics recycling plant has been extinguished, though residents’ health concerns remain | CNN

    The fire at an Indiana plastics recycling plant has been extinguished, though residents’ health concerns remain | CNN

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    CNN
     — 

    After firefighters spent two days battling an inferno fueled by plastics in eastern Indiana, the fire has been fully extinguished, officials said.

    “We’re now able to turn our attention to collecting air and water samples to determine when the evacuation order can be lifted,” Richmond Mayor Dave Smith told CNN Thursday night.

    But the blaze at a Richmond recycling plant reignited old frustrations over safety hazards at the facility and sparked new fears among residents about the future of their health.

    About 2,000 people living within a half-mile radius of the plant were still under evacuation orders Thursday, two days after the fire started. And for the second straight day, Richmond public schools were closed.

    “If you are downwind of the area, stay inside, close your windows, and turn off air conditioning,” Richmond city officials warned.

    The fire was 90% out as of Thursday afternoon, Richmond Fire Department Chief Tim Brown said at a news conference.

    The US Environmental Protection Agency had not detected any toxic compounds as of Wednesday morning. But the state fire marshal has already said the smoke plumes were “definitely toxic.”

    Due to very little wind, “residents may notice that the smoke from the fire has settled more in and around the city and in areas that had not previously had issues,” the Wayne County Emergency Management Agency said Thursday morning.

    The EPA has been monitoring air quality at 15 locations around the site for the possibility of toxic chemicals from the incinerated plastics.

    The billowing black smoke stirred memories of the recent toxic train wreck in East Palestine, Ohio. High levels of some chemicals from that disaster could pose long-term risks, researchers have said.

    Corey McConnell’s family fled their home in the evacuation zone Tuesday night. He could already smell fumes and saw exhausted firefighters battling the blaze.

    “It’s really unbelievable,” McConnell told CNN. “Makes me worry about the health of my family, not just today but in the future as well. Who knows how long this could be in the air for?”

    Resident Wendy Snyder evacuated to a Red Cross emergency shelter but briefly returned home to grab a few belongings, she told CNN affiliate WHIO. That’s when she noticed the stench of burning plastic.

    “There is a stink in the air when you go outside on our porch,” Snyder said. “In fact, it burned my throat because (we) weren’t wearing a mask.”

    The primary health concern to residents is particulate matter – fine particles found in smoke – that could cause respiratory problems if inhaled, said Christine Stinson, executive director of the Wayne County Health Department.

    N95 masks could protect against the particles, but people should leave an area if they see or smell smoke or experience symptoms, Stinson said.

    Due to the age of the building, asbestos – a naturally occurring but very toxic substance once widely used for insulation – is another possible concern. The EPA was evaluating the area, including school grounds, for potential fire debris that might contain asbestos, it said Wednesday night.

    And while the EPA’s air quality tests had found no signs of toxic chemicals such as styrene or benzene as of mid-Wednesday morning, testing continues as more smoke settles.

    Such chemicals could increase the risk of cancer if someone is exposed to a high concentration for a prolonged period of time, said Richard Peltier, associate professor of environmental health sciences at the University of Massachusetts-Amherst.

    “We know that it is very common that a large range of chemicals are formed whenever plastic materials are burned, including styrene, benzene, and a wide number of polyaromatic hydrocarbons – all of these are strong carcinogens, and it’s important for people to avoid exposures,” Peltier said.

    Short-term exposure could also cause symptoms, such as dizziness, nausea, coughing, headache and fatigue. “Asthma is regularly triggered by these types of complicated exposures so if you have asthma, it’s really important to be extra careful,” Peltier said.

    It’s not clear when evacuated residents will be allowed to return home, Richmond officials said. Fire officials expect the smoldering site to burn for several days.

    While it’s not yet clear what sparked the recycling plant inferno, local leaders have shared concerns since at least 2019 that the facility was riddled with fire hazards and building code violations, records show.

    “We knew it wasn’t a matter of if, it was a matter of when this was going to happen,” the fire chief said.

    In 2019, the city’s Unsafe Building Commission found that the “cumulative effect of the code violations present” rendered “the premises unsafe, substandard, or a danger to the health and safety on the public,” according to meeting minutes obtained by CNN.

    During a commission hearing, the plant’s owner, Seth Smith, admitted one of the buildings on the property had no fire extinguishing system, the records show. CNN has reached out to Smith, and the attorney who previously represented him in a related lawsuit declined to comment.

    Richmond officials “were aware that what was operating here was a fire hazard,” Mayor Dave Snow said Wednesday, accusing the plant’s owner of ignoring a city order to clean up the property.

    The fire began in a semitrailer loaded with plastics, then spread to surrounding piles of recyclables before eventually reaching the building, which was “completely full from floor to ceiling and from wall to wall,” Brown, fire chief, said. When firefighters arrived, he said, they had difficulty reaching the buildings because access roads were blocked by piles of plastic.

    “Everything that’s ensued here – the fire, the damages, the risk that our first responders have taken and the risk these citizens are under – are the responsibility of that negligent business owner,” Snow said.

    After Smith was ordered by the city building commission to repair or demolish and vacate his properties in 2019, the plant owner and his company petitioned a court to review the order.

    An Indiana circuit court judge ruled in favor of the city in March 2020. The court found in part Smith’s properties “constitute a fire hazard; are a hazard to public health; constitute a nuisance; and are dangerous to people or property because of violations of statute and City Ordinance concerning building condition and maintenance.”

    Firefighters try to douse an industrial fire Wednesday in Richmond, Indiana.

    The city last year seized two of the three land parcels the recycling plant sits on after Smith failed to pay property taxes.

    It’s unclear what steps the city took to remedy the site since the seizure and whether it took any steps before 2022 to enforce its orders requiring Smith to repair or demolish and vacate the properties.

    Smith was contacted by an investigator Tuesday night, the mayor said.

    While firefighters try to snuff out the blaze, they face another challenge: trying not to destroy potential evidence that might help determine the cause, Brown said.

    Officials probably won’t be able to identify the cause of the blaze until after the fire is extinguished and investigators can safely enter the plant, the state fire marshal’s office said.

    Any legal liability against the plant owner will be handled after the cleanup process, City Attorney Andrew J. Sickmann said at a Thursday news conference.

    “Whether or not there can be potential criminal liability would be a question for law enforcement and prosecutors,” Sickmann said.

    The only operation running out of the building before the fire was moving materials out and shipping them overseas as ordered by officials, Sickmann said.

    “It’s his mess, it’s been shown again and again it’s his mess,” Snow, the mayor, said of the owner. “Everything that’s ensued here remains his responsibility.”

    Snow added that they are tracking all costs of the incident in case of potential litigation.

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  • EPA proposes new tailpipe rules that could push EVs to make up two-thirds of new car sales in US by 2032 | CNN Politics

    EPA proposes new tailpipe rules that could push EVs to make up two-thirds of new car sales in US by 2032 | CNN Politics

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    CNN
     — 

    The Environmental Protection Agency on Wednesday proposed ambitious new car pollution rules that could require electric vehicles to account for up to two-thirds of new cars sold in the US by 2032, in what would be one of the Biden administration’s most aggressive climate-change policies yet.

    The tailpipe standards would also have the effect of cutting planet-warming pollution from cars in half. Transportation accounts for nearly 30% of all greenhouse gas emissions in the US, according to the EPA.

    EPA Administrator Michael Regan called the regulations “the strongest-ever federal pollution standards for cars and trucks.”

    Regan touted the proposed rules on “CNN News Central” on Wednesday, claiming they would bring down costs for consumers and slash planet-warming pollution.

    “This is a future for everyone, and we’re starting to see all of the auto industry move in this direction,” Regan told CNN’s Sara Sidner, saying strong auto emissions rules have been part of President Joe Biden’s “vision from day one.”

    EPA officials said that they are considering several different emissions proposals, which could result in anywhere from a 64% to 69% electric vehicle adoption rate by early next decade. If approved, the emissions standards would start model year 2027 vehicles.

    The agency anticipates the new rules would mean EVs could also make up nearly half of all new medium-duty vehicles, like delivery trucks, by model year 2032. Officials are also proposing stronger standards for heavy-duty vehicles, including dump trucks, public utility trucks, and transit and school buses.

    One expert told CNN the Biden administration’s proposal is a pivotal moment for the US auto industry and consumers.

    “It’s a pretty big deal,” said Thomas Boylan, a former Environmental Protection Agency official and the regulatory director for the EV trade group Zero Emission Transportation Association. “This is really going to set the tone for the rest of the decade and into the 2030s in terms of what this administration is looking for the auto industry to do when it comes to decarbonizing and ultimately electrifying.”

    Regan and White House National Climate Adviser Ali Zaidi hailed the proposed regulations as a major climate win that would also save American consumers money in the coming years.

    Zaidi said that in the Biden administration’s first few years, the number of EVs on US roads had already tripled, while the number of public charging stations had doubled. And Zaidi vowed more to come, with funding from Biden’s infrastructure law for a network of EV charging stations combined with consumer tax credits.

    “Whether you measure today’s announcements by the dollars saved, the gallons reduced, or the pollution that will no longer be pumped into the air, this is a win for the American people,” Zaidi said.

    Yet even as the administration is writing aggressive regulations to push the market toward EVs, a Gallup poll released Wednesday suggests that Americans are not yet sold on the idea. Gallup polled more than 1,000 adults in the US last month and found that 41% said they would not buy an electric vehicle.

    Not only are EVs still more expensive than gas-powered cars, but consumers also haven’t yet grasped the climate benefits of transitioning to zero-emissions vehicles, the poll found. Six in 10 respondents said they believe EVs help the environment “only a little” or “not at all,” Gallup reported.

    Transportation is the biggest source of planet-warming pollution in the US, and light duty vehicles – the average cars Americans drive – account for 58% of those emissions. The UN’s Intergovernmental Panel on Climate Change reported last year that aggressive, pollution-slashing changes in the global transportation sector – including the transition to EVs – could reduce the sector’s emissions by more than 80%.

    Speaking on CNN, Regan also emphasized that switching to an EV would save consumers money in the long run.

    “Folks who purchase electric vehicles will see a cost savings over the lifespan of the vehicle, because they’re not having to buy gas, having to pay for maintenance,” Regan said. “So this is a huge opportunity for everyone in this country.”

    Other countries, including the EU and China, are moving faster toward adopting EVs. In the US, California has already proposed that zero-emissions vehicles make up 70% of new car sales by 2030, and 17 other states plan to follow California’s lead.

    That means much of the US car industry will already be transitioning ahead of the proposed federal rules.

    “I believe it’s pretty doable,” Margo Oge, chair of the International Council on Clean Transportation and a former Obama EPA official, said of the aggressive transition to EVs. “The industry is there. Europe is ahead of the US, China is ahead of Europe – and these companies are global companies.”

    New federal tax credits are coming next week that aim to help American consumers save up to $7,500 on an EV. But they have incredibly complex requirements for the auto industry – including that the cars’ batteries and components come from the US or countries it has a free-trade agreement with.

    Still, Boylan said the regulations are designed to gradually work over the next decade, by which time consumers should have far more electric vehicle options to choose from.

    “You’ve got the tax credits as the carrot,” Boylan said. The proposed tailpipe regulation “provides the stick to backstop these incentives and push the industry forward.”

    Regan told CNN the rules would be phased in gradually, giving auto makers and consumers years before they fully go into effect. During that time, the administration is focused on installing more EV charging stations and expanding access to $7,500 federal EV tax credits.

    “What we’re looking at is a ramp-up period,” Regan said on CNN. “We’re going to see a massive buildup over the next couple years, and we’re starting to see those electric vehicle sales numbers grow already.”

    The EPA will take public comment on the proposal before finalizing the rules in the coming months.

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  • Shelter-in-place order is issued for neighborhoods near a burning fishing vessel as the EPA conducts air monitoring | CNN

    Shelter-in-place order is issued for neighborhoods near a burning fishing vessel as the EPA conducts air monitoring | CNN

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    CNN
     — 

    A shelter-in-place order was issued Sunday for neighborhoods near a burning fishing vessel in the Hylebos Waterway in Tacoma, Washington, where a “significant explosion” took place and fire conditions have worsened, officials said.

    The burning vessel – which is believed to be carrying 55,000 gallons of diesel and 19,000 pounds of freon on board – caught fire early Saturday morning while moored in the waterway, the US Coast Guard said in a news release.

    “We were very fortunate that the fire was quickly spotted and reported and the crew onboard was able to safely evacuate,” US Coast Guard Lt. Stephen Nolan told CNN affiliate KING-TV.

    There was a “significant explosion” linked to a heated compressed gas cylinder on the vessel, and smoke production shifted toward Northeast Tacoma, Port of Tacoma officials said Sunday night, citing fire officials.

    “Due to smoke from a boat fire in Tacoma, Twin Lakes and Green Gables residents should avoid prolonged outdoor exposure whenever smoke odors are present or if smoke is visible,” Federal Way mayor Jim Ferrell tweeted late Sunday night.

    By Sunday, the fire had spread throughout the vessel and was about 100 feet from the ship’s freon tanks, according to the Coast Guard. Freon is a trademark name typically used to refer to several different refrigerants, including chlorofluorocarbons, according to the US Environmental Protection Agency.

    As the fire continues to burn, the heat from the flames can build pressure in the freon tanks, which have built-in heat-activated pressure relief valves designed to release pressure from the tanks in an emergency, according to the Coast Guard.

    “While freon can be toxic if inhaled in large quantities or in a confined space, the release of freon into the atmosphere is not expected to pose any health and safety risks to the public,” the Coast Guard said.

    Still, the City of Tacoma Fire Department asked residents of the Northeast Tacoma, Browns Point and Dash Point neighborhoods to “remain indoors and limit exposures to smoke.”

    “Residents concerned about smoky conditions can provide additional protections by keeping doors closed and shutting outside air vents. Residents may also want to avoid any strenuous activity or exercise outdoors,” the mayor tweeted.

    The EPA has been conducting air monitoring in the surrounding areas and first responders have deployed floating barriers around the vessel to contain any spills, the release said.

    The Coast Guard has also closed the Hylebos Waterway for all commercial and recreational vessel traffic.

    As of Sunday night, no injuries had been reported and there were no signs of maritime pollution, the Coast Guard said.

    As crews continue to battle the fire with cooling spray, it remains unclear what ignited the blaze. Authorities said the cause of the fire remains under investigation.

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  • What markets are watching after digesting the US jobs data | CNN Business

    What markets are watching after digesting the US jobs data | CNN Business

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


    New York
    CNN
     — 

    In an unusual coincidence, the US jobs report was released on a holiday Friday — meaning stock markets were closed when the closely-watched economic data came out.

    It was the first monthly payroll report since Silicon Valley Bank and Signature Bank collapsed. It also marked a full year of jobs data since the Federal Reserve began hiking interest rates in March 2022.

    While inflation has come down and other economic data point to a cooling economy, the labor market has remained remarkably resilient.

    Investors have had a long weekend to chew over the details of the report and will likely skip the typical gut-reaction to headline numbers.

    What happened: The US economy added 236,000 jobs in March, showing that hiring remained robust though the pace was slower than in previous months. The unemployment rate currently stands at 3.5%.

    Wages increased by 0.3% on the month and 4.2% from a year ago. The three-month wage growth average has dropped to 3.8%. That’s moving closer to what Fed policymakers “believe to be in line with stable wage and inflation expectations,” wrote Joseph Brusuelas, chief economist at RSM in a note.

    “That wage data tends to suggest that the risk of a wage price spiral is easing and that will create space in the near term for the Federal Reserve to engage in a strategic pause in its efforts to restore price stability,” he added.

    The March jobs report was the last before the Fed’s next policy meeting and announcement in early May. The labor market is cooling but not rapidly or significantly, and further rate hikes can’t be ruled out.

    At the same time Wall Street is beginning to see bad news as bad news. A slowing economy could mean a recession is forthcoming.

    Markets are still largely expecting the Fed to raise rates by another quarter point. So how will they react to Friday’s report?

    Before the Bell spoke with Michael Arone, State Street Global Advisors chief investment strategist, to find out.

    This interview has been edited for length and clarity.

    Before the Bell: How do you expect markets to react to this report on Monday?

    Michael Arone: I think that this has been a nice counterbalance to the weaker labor data earlier last week and all the recession fears. This data suggests that the economy is still in pretty good shape, 10-year Treasury yields increased on Friday indicating there’s less fear about an imminent recession.

    There’s this delicate balance between slower job growth and a weaker labor market without economic devastation. I think this report helps that.

    As it relates to the stock market, I would expect the cyclical sectors to do well — your industrials, your materials, your energy companies. If interest rates are rising, that’s going to weigh on growth stocks — technology and communication services sectors, for example. Less recession fears will mean investors won’t be as defensively positioned in classic staples like healthcare and utilities.

    Could this lead to a reverse in the current trend where tech companies are bolstering markets?

    Yes, exactly. It’s difficult to make too much out of any singular data point, but I think this report will hopefully lead to broader participation in the stock market. If those recession fears begin to abate somewhat, and investors recognize that recession isn’t imminent, there will be more investment.

    What else are investors looking at in this report?

    We’ve seen weakness in the interest rate sensitive parts of the market — areas that are typically the first to weaken as the economy slows down. So things like manufacturing, things like construction. That’s where the weakness in this jobs report is. And the services areas continue to remain strong. That’s where the shortage of qualified skilled workers remains. I think that you’re seeing continued job strength in those areas.

    What does this mean for this week’s inflation reports? It seems like the jobs report just pushed the tension forward.

    it did. I expect that inflation figures will continue to decelerate — or grow at a slower rate. But I do think that the sticky part of inflation continues to be on the wage front. And so I think, if anything, this helps alleviate some of those inflation pressures, but we’ll see how it flows through into the CPI report next week. And also the PPI report.

    Is the Federal Reserve addressing real structural changes to the labor market?

    The Fed was confused in February 2020 when we were in full employment and there was no inflation. They’re equally confused today, after raising rates from zero to 5%, that we haven’t had more job losses.

    I’m not sure why, but from my perspective, the Fed hasn’t taken into consideration the structural changes in the labor force, and they’re still confused by it. I think the risk here is that they’ll continue to focus on raising rates to stabilize prices, perhaps underestimating the kind of structural changes in the labor economy that haven’t resulted in the type of weakness that they’ve been anticipating. I think that’s a risk for the economy and markets.

    A few weeks ago, Before the Bell wrote about big problems brewing in the $20 trillion commercial real estate industry.

    After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Office and retail property valuations have been falling since the pandemic brought about lower occupancy rates and changes in where people work and how they shop. The Fed’s efforts to fight inflation by raising interest rates have also hurt the credit-dependent industry.

    Recent banking stress will likely add to those woes. Lending to commercial real estate developers and managers largely comes from small and mid-sized banks, where the pressure on liquidity has been most severe. About 80% of all bank loans for commercial properties come from regional banks, according to Goldman Sachs economists.

    Since then, things have gotten worse, CNN’s Julia Horowitz reports.

    In a worst-case scenario, anxiety about bank lending to commercial real estate could spiral, prompting customers to yank their deposits. A bank run is what toppled Silicon Valley Bank last month, roiling financial markets and raising fears of a recession.

    “We’re watching it pretty closely,” said Michael Reynolds, vice president of investment strategy at Glenmede, a wealth manager. While he doesn’t expect office loans to become a problem for all banks, “one or two” institutions could find themselves “caught offside.”

    Signs of strain are increasing. The proportion of commercial office mortgages where borrowers are behind with payments is rising, according to Trepp, which provides data on commercial real estate.

    High-profile defaults are making headlines. Earlier this year, a landlord owned by asset manager PIMCO defaulted on nearly $2 billion in debt for seven office buildings in San Francisco, New York City, Boston and Jersey City.

    Dig into Julia’s story here.

    Tech stocks led market losses in 2022, but seemed to rebound quickly at the start of this year. So as we enter earnings season, what should we expect from Big Tech?

    Daniel Ives, an analyst at Wedbush Securities, says that he has high hopes.

    “Tech stocks have held up very well so far in 2023 and comfortably outpaced the overall market as we believe the tech sector has become the new ‘safety trade’ in this overall uncertain market,” he wrote in a note on Sunday evening.

    Even the recent spate of layoffs in Big Tech has upside, he wrote.

    “Significant cost cutting underway in the Valley led by Meta, Microsoft, Amazon, Google and others, conservative guidance already given in the January earnings season ‘rip the band- aid off moment’, and tech fundamentals that are holding up in a shaky macro [environment] are setting up for a green light for tech stocks.”

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  • Wall Street says bad news is no longer good news. Here’s why | CNN Business

    Wall Street says bad news is no longer good news. Here’s why | CNN Business

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


    New York
    CNN
     — 

    There’s been a seismic shift in investor perspective: Bad news is no longer good news.

    For the past year, Wall Street has hoped for cool monthly economic data that would encourage the Federal Reserve to halt its aggressive pace of interest rate hikes to tame inflation.

    But at its March meeting — just days after a series of bank failures raised concerns about the economy’s stability — the central bank signaled that it plans to pause raising rates sometime this year. With an end to interest rate hikes in sight, investors have stopped attempting to guess the Fed’s next move and have turned instead to the health of the economy.

    This means that, whereas softening economic data used to signal good news — that the Fed could potentially stop raising rates — now, cooling economic prints simply suggest the economy is weakening. That makes investors worried that the slowing economy could fall into a recession.

    What happened last week? Markets teetered after a slew of economic reports signaled that the red-hot labor market is finally cooling (more on that later), flashing warning signals across Wall Street.

    Investors accordingly shed high-growth, large-cap stocks that have surged recently to rush into defensive stocks in industries like health care and consumer staples.

    While tech stocks recovered somewhat by the end of the short trading week — markets were closed in observance of Good Friday — the Nasdaq Composite still slid 1.1%. The broad-based S&P 500 fell 0.1% and the blue-chip Dow Jones Industrial Average gained 0.6%.

    What does this mean for markets? Now that Wall Street is in “bad news is bad news and good news is good news” mode, it will be looking for signs that the economy remains resilient.

    What hasn’t changed is that investors still want to see cooling inflation data. While the central bank has signaled that it will pause hiking rates this year, its actions so far have only somewhat stabilized prices. The Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, rose 5% for the 12 months ended in February — far above its 2% inflation target.

    Moreover, Wall Street might be overly optimistic about how the Fed will act going forward: Some investors expect the central bank to cut rates several times this year, even though the central bank indicated last month that it does not intend to lower rates in 2023.

    It’s unclear how markets will react if the Fed doesn’t cut rates this year. But there likely won’t be a notable rally unless the central bank pivots or at least indicates that it plans to soon, said George Cipolloni, portfolio manager at Penn Mutual Asset Management.

    Commentary that’s hawkish or reveals inflation worries could hurt markets, he adds. “It keeps that boiling point and that temperature a little high.”

    What comes next? The Fed holds its next meeting in early May. Before then, it will have to parse through several economic reports to get a sense of how the economy is doing, and what it will be able to handle. Markets currently expect the Fed to raise interest rates by a quarter point, according to the CME FedWatch tool.

    The labor market appears to be cooling somewhat, at least according to the slew of data released last week. But it’s still far too early to assume that the job market has lost its strength.

    President Joe Biden said in a statement Friday that the March data is “a good jobs report for hard-working Americans.”

    The March jobs report revealed that US employers added a lower-than-expected 236,000 jobs last month. Economists expected a net gain of 239,000 jobs for the month, according to Refinitiv.

    The unemployment rate dropped to 3.5%, according to the Bureau of Labor Statistics. That’s below expectations of holding steady at 3.6%.

    The jobs report was also the first one in 12 months that came in below expectations.

    But that doesn’t mean that the job market isn’t strong anymore.

    “The labor market is showing signs of cooling off, but it remains very tight,” Bank of America researchers wrote in a note Friday.

    Still, other data released last week help make the case that cracks are finally starting to form in the labor market. The Job Openings and Labor Turnover Survey for February revealed last week that the number of available jobs in the United States tumbled to its lowest level since May 2021. ADP’s private-sector payroll report fell far short of expectations.

    What this means for the Fed is that the cooldown in the latest jobs report likely won’t be enough for the central bank to pause rates at its next meeting.

    “The Fed will more than likely raise rates in May as the labor market continues to defy the cumulative effects of the rate hikes that began over a year ago,” said Quincy Krosby, chief global strategist at LPL Financial.

    Monday: Wholesale inventories.

    Tuesday: NFIB Small Business Optimism Index. Earnings from CarMax (KMX), Albertsons (ACI) and First Republic Bank (FRC).

    Wednesday: Consumer Price Index and FOMC meeting minutes.

    Thursday: OPEC monthly report and Producer Price Index. Earnings from Delta Air Lines (DAL).

    Friday: Retail sales and University of Michigan consumer sentiment survey. Earnings from JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C) and PNC Financial Services (PNC).

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  • The Fed could easily drive Black unemployment much higher than the overall jobless rate | CNN Business

    The Fed could easily drive Black unemployment much higher than the overall jobless rate | CNN Business

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    New York
    CNN
     — 

    Millions of jobs could be on the chopping block this year, as the Federal Reserve continues its rate-hiking campaign to tame inflation. But the effects of that action likely won’t reverberate evenly across the economy.

    The Fed has seen some success: Inflation has cooled for eighth consecutive months, according to the February Consumer Price Index. The Producer Price Index shows a dramatic drop in wholesale prices in February. And the Fed’s favored inflation gauge, the Personal Consumption Expenditures price index, has also started to moderate.

    But the job market has proved to be a formidable force, humming steadily in the face of climbing rates meant to slow its growth. After adding more than half a million jobs in January, the US economy then added 311,000 jobs in February, with an unemployment rate of 3.6% — just above a half-century low — according to the Bureau of Labor Statistics.

    However, the jobless rate isn’t expected to be that low for long.

    At its most recent policy-making meeting, the Fed released projections for the year ahead that showed unemployment could jump to 4.5%, representing another 1.5 million job losses, by the end of the year.

    While that’s a small improvement from the central bank’s previous 4.6% jobless rate estimate, economists say it’s possible the unemployment rate could rise above the Fed’s expectations. Moreover, they say that historically disadvantaged groups could be disproportionately affected by the central bank’s stringent monetary policy.

    While some groups often sidelined in the job market have seen benefits from this hot job market — women have seen a faster pace of job gains than men in recent months, for example — others, including Black women and Latino men, have seen slower recoveries in jobless rates since the onset of the Covid pandemic.

    Recession fears gained traction last month when the collapse of Silicon Valley Bank sent markets wobbling, raising concerns about the economy’s ability to handle more stress. Goldman Sachs revised its estimate of the United States entering a recession over the next 12 months to a 35% chance, up from its estimate of a 25% chance before the banking sector turmoil.

    That’s of particular concern to certain demographic groups: Jobless rates for Black and Hispanic Americans often increase by more than those of their White counterparts during recessions, said Rakesh Kochhar, a senior researcher focusing on demographics and social trends at the Pew Research Center.

    History makes that discrepancy clear.

    A Pew Research Center report comparing two recessions in recent decades shows how Black and Hispanic Americans experience disproportionate effects on their jobless rates during periods of economic downturn. From the second quarter of 2007 to the second quarter of 2009, during the Great Recession, the unemployment rate rose 6.5 percentage points for Black Americans. The Hispanic unemployment rate climbed 6.3 percentage points. For White workers, it increased 4 percentage points.

    And from the first quarter of 1990 to the first quarter of 1991, the unemployment rate climbed 1.4 percentage points for Black Americans and 2.1 percentage points for Hispanic Americans. The White unemployment rate rose 1.3 percentage points.

    Economists say it’s hard to guess the trajectory of the unemployment rate this year, noting it could very well exceed the Fed’s estimate.

    “There’s just tons of momentum, and once you slow the economy enough to get the unemployment rate moving up, it’s very hard to sort of turn that cruise ship back around,” said Josh Bivens, research director and chief economist at the Economic Policy Institute.

    As such, the Fed’s tightening efforts could easily drive the Black unemployment rate much higher than the overall jobless rate, said William Spriggs, an economics professor at Howard University and chief economist to the AFL-CIO.

    “If the Fed continues to use unemployment as its measure of labor force slack, and thinks they want a 4.5% unemployment rate — to make that happen, the Fed would have to induce net job loss in the labor market,” Spriggs told CNN in an email. “If we go through two months of negative job growth, all bets are off. The Black unemployment rate will easily get to 9% in that scenario.”

    One other likely consequence of growing unemployment is slowing wage growth, Bivens said.

    Like rising unemployment, stunted wage growth tends to hit marginalized groups harder. A 2021 Economic Policy Institute report shows that a 1 percentage point increase in overall unemployment correlates with about 0.5% slower wage growth for White median hourly wages. Wage growth falls by roughly 0.8% for Black median hourly wages.

    “A lot of people have this idea that in a recession, if unemployment rises by a couple of percentage points, as long as you’re not one of those unlucky people to lose the job, you’ve dodged the bullet,” Bivens said. “And that’s not true at all.”

    Still, a robust labor market isn’t a permanent solution to bridging employment disparities, even if the Fed does keep rates lower, says Wendy Edelberg, director of the Hamilton Project and a senior fellow in economic studies at the Brookings Institution.

    The job market’s recent strength is unsustainable, she said. The US economy needs about 75,000 net job gains a month to keep stable and is currently adding about 350,000 net job gains a month on average, according to Edelberg.

    “[The Fed is] right to be confident that one of the things that’s going to have to happen to get inflation back down to a normal, stable level is to get job growth to a normal, sustainable level,” Edelberg said. “But if the Fed’s actions resulted in a slower labor market, then inflation stayed high — that would be a disaster.”

    The March jobs report from the Department of Labor, due to be released Friday at 8:30 a.m., is expected to show the US economy gained 240,000 positions last month. ADP’s private-sector payroll report, generally seen by investors as a proxy for the trajectory of Friday’s number, fell short of expectations, with just 145,000 jobs added. Economists had expected private hiring would rise by 200,000 positions last month.

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  • NASA set to unveil the crew of astronauts for moon flyby mission | CNN

    NASA set to unveil the crew of astronauts for moon flyby mission | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    Four astronauts — including three Americans and one Canadian — will be tapped by NASA to complete a generation-defining mission to the moon’s orbit, returning humans to deeper into the solar system than has been reached in five decades.

    On Monday, the public will finally learn the crew members’ names.

    Scheduled to launch in 2024, Artemis II will be the program’s first crewed mission to orbit the moon, flying farther into space than any humans since the Apollo program. It will pave the way for the Artemis III crew to walk on the moon in 2025, all aboard the world’s most powerful rocket and at a price tag that by then will approach $100 billion.

    Following months of closed-door decision making, NASA officials plan to unveil the names of the crew members in a ceremony scheduled for Monday at 11 am ET.

    Though officials have remained tight-lipped about their choices, CNN previously spoke with nearly a dozen current and former NASA officials and astronauts to pull back the curtain on the secretive selection process.

    Reid Wiseman, a 47-year-old decorated naval aviator and test pilot who was first selected to be a NASA astronaut in 2009, is at the top of the list, according to CNN’s prior reporting.

    Wiseman served as chief of the astronaut office until November 2022. While the chief is not permitted to fly while holding the post, they are able to wrangle the best flight assignments upon stepping down, an “acknowledged perk” of the job, according to former NASA astronaut Garrett Reisman.

    Before stepping down as astronaut chief, Wiseman was also responsible for the decision to broaden the pool of astronauts eligible to fly in order to include himself. While NASA had initially deemed 18 astronauts to be the “Artemis Team” and eligible to fly on moon missions, Wiseman expanded the group of candidates to all 41 active NASA astronauts.

    People familiar with the process also told CNN that along with Wiseman, there are a handful of other candidates atop the list:

    • Randy Bresnik, 55, is also a decorated naval aviator and test pilot who flew combat missions in support of Operation Iraqi Freedom. He has flown two missions to the International Space Station: one on the Space Shuttle, another on a Russian Soyuz spacecraft. Bresnik is often mentioned as a top contender for Artemis because, since 2018, he has overseen the astronaut office’s development and testing of all rockets and spacecraft that will be used in the Artemis missions.
    • Anne McClain, 43, is a decorated army pilot and West Point graduate who flew more than 200 combat missions in support of Operation Iraqi Freedom and went on to graduate from the US Naval Test Pilot School in 2013, the same year she was selected to be a NASA astronaut. After launching on a Russian Soyuz spacecraft in 2018, she spent more than 200 days at the International Space Station and served as the lead of two spacewalks.
    • Stephanie Wilson is the most senior astronaut on this list. The 56-year-old joined NASA’s 1996 astronaut class, and she served as a mission specialist on three Space Shuttle flights, including the first flight after the 2003 Columbia disaster, which killed seven astronauts.
    • Christina Koch, 44, is a veteran of six spacewalks. She holds the record for the longest single spaceflight by a woman, with a total of 328 days in space. Koch is also an an electrical engineer who helped develop scientific instruments for multiple NASA mission. She’s also spent a year at the South Pole, an arduous stay that could well prepare her for the intensity of a moon mission.
    • Jessica Meir is 45-year-old biologist with a doctorate from the Scripps Institution of Oceanography. She was a member of a NASA Extreme Environment Mission Operations (NEEMO) mission in 2002, which involved spending days in an underwater research facility, and, in 2016, completed a two-week caving mission in Italy.

    Koch and Meir together conducted the first three all-female spacewalks in 2019 and 2020.

    Rounding out the Artemis II crew will be one astronaut from Canada, terms that were cemented in a 2020 treaty between the two countries.

    The Canadian Space Agency’s currently has a cadre of just four astronauts, but among them, Jeremy Hansen has generated the most buzz, according to CNN’s reporting. Hansen was selected to be an astronaut almost 14 years ago, but he’s still waiting for his first flight assignment. The 47-year-old fighter pilot recently became the first Canadian to be put in charge of training for a new class of NASA astronauts.

    NASA has also previously committed to selecting a crew with racial, gender and professional diversity.

    Those criteria have not historically been the case for high-profile missions. Going back to the Gemini era, astronauts selected for inaugural crewed missions have been only White and male, and typically come from a background as a military test pilot — a profile notably characterized in the 1979 book “The Right Stuff” by Tom Wolfe.

    That has held true through NASA’s most recent inaugural crewed flight, of SpaceX’s Crew Dragon capsule to the International Space Station in 2020, which included former military test pilots Bob Behnken and Doug Hurley.

    And it may hold mostly true for the Artemis II mission as well: Nearly a dozen current and former NASA officials and astronauts told CNN they anticipated multiple test pilots being named.

    However, if Wiseman, a White man, is selected, that means the other spots will almost certainly need to go to at least one woman and at least one person of color.

    The Artemis II mission will build on Artemis I, an uncrewed test mission that sent NASA’s Orion capsule on a 1.4 million-mile voyage to lap the moon that concluded in December. The space agency deemed that mission a success and is still working to review all the data collected.

    If all goes to plan, Artemis II will take off around November 2024. The crew members, strapped inside the Orion spacecraft, will launch atop a NASA-developed Space Launch System rocket from NASA’s Kennedy Space Center in Florida.

    The journey is expected to last about 10 days and will send the crew out beyond the moon, potentially further than any human has traveled in history, though the exact distance is yet to be determined.

    The “exact distance beyond the Moon will depend on the day of liftoff and the relative distance of the Moon from the Earth at the time of the mission,” NASA spokesperson Kathryn Hambleton said via email.

    After circling the moon, the spacecraft will return to Earth for a splashdown landing in the Pacific Ocean.

    Artemis II is expected to pave the way for the Artemis III mission later this decade, which NASA has vowed will put the first woman and person of color on the lunar surface. It will also mark the first time humans have touched down on the moon since the Apollo program ended in 1972.

    The Artemis III mission is expected to take off later this decade. But much of the technology the mission will require, including spacesuits for walking on the moon and a lunar lander to ferry the astronauts to the moon’s surface, is still in development.

    NASA is targeting a 2025 launch date for Artemis III, though the space agency’s inspector general has already said delays will likely push the mission to 2026 or later.

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