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Breaking NewsUS and World News

New York plans for Trump surrender with barricades, courtroom closings

by Reuters April 3, 2023
By Reuters

By Jonathan Allen and Karen Freifeld

NEW YORK (Reuters) – New York City police have thrown up metal barriers around Trump Tower and blocked roads near Manhattan Criminal Courthouse as they brace for potential protests ahead of Donald Trump’s expected surrender to prosecutors on Tuesday.

The former president is due to be arraigned at the courthouse Tuesday afternoon, after his indictment in a grand jury probe over hush money paid to a [censored] star. He is the first former U.S. president to face criminal charges.

Trump describes the probe as a political witch hunt, and top supporters, including Republican lawmaker Marjorie Taylor Greene, say they will go to New York on Tuesday to protest. The downtown courthouse, home to criminal and supreme courts, will shut down some courtrooms ahead of Trump’s expected appearance, a court official said.

The New York Police Department (NYPD) said there were no credible threats to the city.

Some social media users have called for Manhattan District Attorney Alvin Bragg and the jury that indicted Trump to be executed, according to Site Intelligence Group, which monitors online extremism.

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After Trump falsely claimed he won the last election, his supporters stormed the U.S. Capitol building on Jan. 6, 2021, sparking a deadly riot.

However, many Trump supporters online have expressed wariness about public demonstrations, even after Trump called for them, concerned they could be arrested.

“(The) department remains ready to respond as needed and will ensure everyone is able to peacefully exercise their rights,” the NYPD said in a statement.

Trump is expected to fly to New York on Monday from Florida and spend the night at Trump Tower, before arriving early Tuesday morning at the courthouse, a Trump adviser said.

While the spectacle of the former president facing criminal charges was certain to draw massive media attention, it is not yet clear if his appearance would draw a large number of protesters. While Trump is a native New Yorker, he didn’t get many votes in his hometown – 23% of the city voted for him in 2020 and 18% in 2016. 

The New York Young Republican Club says it is planning a protest at a park across the street from the courthouse, a demonstration that Greene, one of Trump’s staunchest supporters in Congress, says she will attend.

“Protesting is a constitutional right,” Greene said on Twitter, adding that she would “protest this unprecedented abuse of our justice system and election interference.” She said she rejects anyone who incites or commits violence. Before voting to indict Trump, the grand jury heard evidence about a $130,000 payment to adult film actress Stormy Daniels in the waning days of the 2016 presidential campaign.

Daniels, whose real name is Stephanie Clifford, has said she was paid to keep silent about a sexual encounter she had with Trump in 2006. Trump denies the sexual encounter.

A court official told Reuters that courtrooms on higher floors of the courthouse will be closed at 1 p.m., shortly before Trump’s expected 2:15 p.m. (1815 GMT) arraignment.

The official also said many court cases will be adjourned at a building across the street from the courthouse.

(Reporting by Jonathan Allen, Karen Freifeld, Jeenah Moon and David Dee Delgado in New York. Writing by Rami Ayyub; Editing by Heather Timmons and Lisa Shumaker)

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Malaysia scraps mandatory death penalty, natural-life prison terms

by Reuters April 3, 2023
By Reuters

By Rozanna Latiff

KUALA LUMPUR (Reuters) – Malaysia’s parliament on Monday passed sweeping legal reforms to remove the mandatory death penalty, trim the number of offences punishable by death, and abolish natural-life prison sentences, a move cautiously welcomed by rights groups.

Malaysia has had a moratorium on executions since 2018, when it first promised to abolish capital punishment entirely.

The government, however, faced political pressure from some parties and rowed back on the pledge a year later, saying it would retain the death penalty but allow courts to replace it with other punishments at their discretion.

Under the amendments passed, alternatives to the death penalty include whipping and imprisonment of between 30 to 40 years. The new jail term will replace all previous provisions that call for imprisonment for the duration of the offender’s natural life.

Life imprisonment sentences, defined by Malaysian law as a fixed term of 30 years, will be retained.

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Capital punishment will also be removed as an option for some serious crimes that do not cause death, such as discharging and trafficking of a firearm and kidnapping.

Malaysia’s move comes even as some Southeast Asian neighbours have stepped up use of capital punishment, with Singapore last year executing 11 people for drug offences and military-ruled Myanmar carrying out its first death sentences in decades against four anti-junta activists.

Malaysia’s Deputy Law Minister Ramkarpal Singh said capital punishment was an irreversible sentence and had been an ineffective deterrent.

“The death penalty has not brought about the results it was intended to bring,” he said in wrapping up parliamentary debates on the measures.

The amendments passed apply to 34 offences currently punishable by death, including murder and drug trafficking. Eleven of those carry it as a mandatory punishment.

More than 1,300 people facing the death penalty or imprisonment for natural life – including those who have exhausted all other legal appeals – can seek a sentencing review under the new rules.

Dobby Chew, executive coordinator at the Anti-Death Penalty Asia Network, said passage of the amendments was a good first step towards total abolition of capital punishment.

“For the most part, we are on the right track for Malaysia – it’s a reform that has been a long time coming,” he said.

“We should not deny the fact that the state is killing someone and whether the state should have this kind of power… having the mandatory punishment abolished is a good time for us to start reflecting about it.”

(Reporting by Rozanna Latiff; Additional reporting by Ahmad Luqman Ismail; Editing by Ed Davies, Martin Petty)

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Analysis-Russia’s arrest of reporter deepens Biden’s detainee challenge

by Reuters April 3, 2023
By Reuters

By Simon Lewis

WASHINGTON (Reuters) – Even before Russia detained Wall Street Journal reporter Evan Gershkovich on Wednesday, the Biden administration was at an impasse over another American held by Moscow: Paul Whelan, a former U.S. Marine serving a 16-year sentence in a Russian prison.

With relations between the world’s two largest nuclear powers strained to the breaking point by Russia’s war in Ukraine, officials in Washington have for months been unable to reach a deal to free Whelan, convicted by a Russian court of espionage in 2020.

Whelan was left out of a December prisoner exchange that saw the United States and Russia trade WNBA star Brittney Griner for Viktor Bout, a convicted arms trafficker. That prompted the administration’s critics to accuse it of unfairly favoring a celebrity and giving adversaries incentive to grab more U.S. citizens.

An earlier swap was conducted in April 2022 for Trevor Reed, another former U.S. Marine.

Paul Whelan’s brother, David, has welcomed Reed’s and Griner’s releases even though both were detained after his brother. But he told Reuters in response to a question about any potential swap for Gershkovich that it would be “unacceptable” for the administration to again strike a deal that leaves Paul behind.

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“I would be very disappointed in the U.S. government if they decided to bring home someone who had not spent as much time as my brother,” David Whelan said in an interview.

State Department spokesperson Vedant Patel said in a news briefing on Thursday the Whelan and Gershkovich cases should not be compared. Washington continued to engage with Moscow on Whelan’s case through a channel established by Biden and Russian President Vladimir Putin in 2021, he added.

“(Whelan’s) release continues to be an absolute priority,” Patel said.

Contacted on Saturday, Patel declined to elaborate on why the two cases should not be linked.

Russia’s security service has, without providing evidence, accused Gershkovich of gathering information classified as a state secret about a military factory.

Contacted over the weekend by Reuters, the Russian foreign ministry did not respond to a request for comment on what impact, if any, Gershkovich’s detention would have on the Whelan case.

On Sunday, in a phone call with U.S. Secretary of State Antony Blinken, Russian Foreign Minister Sergei Lavrov asked Blinken to “respect the decision of the Russian authorities” who say Gershkovich was caught “red handed,” according to a summary of the call from Russia’s foreign ministry.

In previous cases of Americans detained in Russia, Moscow has emphasized the need to let its justice system run its course before considering the possibility of any exchange, and has said negotiations should not take place in public.

The Wall Street Journal has denied Russia’s claims and called for Gershkovich’s swift release. A spokesperson for the newspaper did not respond to specific questions for this article.

Reuters was unable to reach Gershkovich’s family for comment.

WRONGFULLY DETAINED

The detention of Americans overseas is a growing problem for the United States. Foreign policy experts say some governments – including Iran, Russia and North Korea – use arbitrary detention as a negotiating ploy.

Republican House speaker Kevin McCarthy, a frequent critic of President Joe Biden, told Fox News Digital on Thursday that Gershkovich’s arrest, coming after the swap for Griner, showed “when the president pays ransom, they’ll go after and take more Americans.”

Biden on Friday called on Russia to release Gershkovich. The White House has said the espionage charges leveled against the journalist were “ridiculous.”

To ensure a focus on the most urgent cases, the State Department designates some of the Americans held abroad “wrongfully detained,” a step that moves a case to the jurisdiction of the special envoy for hostage affairs and opens the door for additional resources to be directed at winning their release.

Wall Street Journal Editor-in-Chief Emma Tucker told CNN on Friday she was “optimistic” Gershkovich would soon get that designation.

“When that happens, that’s official recognition that the charges against him are bogus and after that things, we hope, could move a bit more swiftly,” Tucker said.

Whelan is the only American detained in Russia with that designation. Lawyers who work on cases of U.S. citizens detained overseas have also been pushing for the administration to also designate Marc Fogel, a teacher who like Griner was charged with cannabis possession in Russia, as wrongfully detained.

The State Department has called for Fogel’s release on humanitarian grounds and says it continually reviews whether such cases meet the requirements for “wrongfully detained.” A department spokesperson declined to comment further on the lack of a designation. Fogel’s family was not immediately available for comment.

The Biden administration has secured the release of at least 25 “wrongfully detained” Americans. More than 30 other U.S. citizens are still being held abroad with that designation.

David Whelan said while Gershkovich’s detention might divert U.S. government attention away from his brother’s case it could also provide impetus for a joint swap involving both Americans.

“I’m on the fence about whether this is likely to help Paul’s case or hurt it,” he said.

On Sunday, Blinken called for the “immediate release” of both Americans.

Tom Firestone, former resident legal adviser at the U.S. embassy in Moscow, said he expects the Biden administration will designate Gershkovich as wrongfully detained fairly quickly and seek a prisoner exchange alongside Whelan.

“Despite tremendous efforts they have not been able to get Whelan out,” Firestone said. “Now they’re going to have to double those already substantial efforts to try to get two people accused of espionage out.”

A State Department spokesperson did not respond to a question about the additional efforts now required.

(Reporting by Simon Lewis; additional reporting by Daphne Psaledakis and Steve Holland; Editing by Don Durfee, Rosalba O’Brien and Lincoln Feast.)

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Trump indictment pulls DeSantis-leaning Republicans back to MAGA fold 

by Reuters April 3, 2023
By Reuters

By Tim Reid

HENDERSON, Nevada (Reuters) – Larry White, a self-described Republican conservative, was thinking of voting for Ron DeSantis in his party’s presidential nominating contest, believing the Florida governor had a better chance of winning back the White House from the Democrats than former President Donald Trump.

Then came news on March 30 that Trump had been indicted in New York on charges related to a hush money payment to a [censored] star, making him the first former U.S. president to face criminal prosecution.

“Now I am absolutely voting for Trump,” said White, 75, a composer and musician in Nevada. “The indictment was the last straw for me, because Trump has suffered so much political abuse. I think he’s the strongest candidate to contest what the left is doing. I’m all in.”

White’s anger and return to supporting Trump over DeSantis reflected the sentiment of many Republican activists and voters Reuters spoke to in Nevada. The western state votes early in the presidential nominating process, giving it an outsized role in deciding which candidate gains momentum in the 2024 election.

Until the indictment, a majority of the 35 Republicans Reuters interviewed had been willing to turn their backs on Trump and go with a different candidate for the 2024 election, believing he was too flawed and bombastic to win the general election for Republicans next year.

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The criminal charges in New York changed all that, upending the Republican primary contest and potentially giving Trump and his “Make America Great Again” movement a major boost in his quest to re-enter the White House. A trial is more than a year away, legal experts say, meaning that Trump may face a jury trial as he campaigns.

All 35 Republican activists and voters Reuters spoke to say they will be voting in the nominating contest to choose their 2024 White House candidate.

Every one of them decried the indictment as a meritless, politically motivated persecution of Trump. The charges against Trump are not yet clear, though legal analysts say he may be prosecuted for falsifying business records on charges of hiding the true nature of the payments.

Of the 35, 20 said they had been thinking of moving on from Trump and backing DeSantis. Of those, 14 said the indictment was changing their thinking and leading them back to supporting Trump again.

“I was really for Ron DeSantis,” said Pepe Kahn, at a Republican club meeting in Henderson on Saturday. “I’m now more likely to support Trump than before. I think people who were more neutral than before will now go in to bat for him. This is the most frightening thing I’ve ever seen in the U.S.”

STORMY DANIELS PAYMENT

Trump is expected to be arraigned, fingerprinted and photographed in a New York courthouse on Tuesday as he becomes the first former president to face criminal charges. An attorney for Trump said on Friday he will plead not guilty.

The indictment followed an investigation by a Manhattan grand jury, which heard evidence about a $130,000 payment to [censored] star Stormy Daniels allegedly authorized by Trump in the waning days of the 2016 presidential campaign. Daniels, whose real name is Stephanie Clifford, has said she was paid to keep silent about a sexual encounter with Trump in 2006. Trump has denied that this encounter took place; concealing payments such as this could potentially violate campaign finance laws.

The reaction to the indictment by congressional Republicans and even his potential Republican rivals for the White House nomination has demonstrated the firm grip that Trump still retains on the party, thanks to the diehard support of a core group of voters.

Party leaders have rallied behind Trump. Even DeSantis, who has yet to declare his candidacy but is expected to do so soon, called the indictment “un-American.”

Sarah Longwell, a Republican strategist and Trump critic, has conducted seven focus groups this year with people who voted for the businessman-turned-politician in the 2016 and 2020 presidential elections, to gauge how they feel about his candidacy this time round.

On Friday, a day after news of the indictment broke, all nine members of her latest focus group said they were going to vote for Trump over DeSantis in the Republican primary – the first time the ex-president has had universal backing in a focus group, Longwell said.

The reason was the indictment, Longwell added.

“People always feel defensive on his behalf,” Longwell said. The question going forward, she said, was whether the outrage on Trump’s behalf among Republican voters will endure throughout the primary and help him defeat DeSantis, or whether it will dissipate and be replaced by renewed concerns about his electability.

Longwell said there is no guarantee the charges will continue to help Trump in the long term, especially if he is indicted in other investigations he faces, including alleged election interference in Georgia and the mishandling of classified documents.

Trump’s campaign boasted in an email to supporters on Sunday that it has raised over $4 million since the indictment was announced. Steven Cheung, a Trump spokesman, said in an email to Reuters that the charges had “surged” support for Trump.

“Americans from all backgrounds are sick and tired of the weaponization of the justice system against President Trump and his supporters,” Cheung said.

A spokesperson for DeSantis did not immediately respond to a request for comment.

(Reporting by Tim Reid in Henderson, Nevada; Editing by Heather Timmons and Matthew Lewis)

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Marketmind: Crude cut complicates Q2

by Reuters April 3, 2023
By Reuters

A look at the day ahead in U.S. and global markets from Mike Dolan

An aggravating jump in crude oil prices greets the start of the second quarter as investors try to figure out whether OPEC’s surprise weekend output cut frustrates disinflation or just reflects weakening world demand.

The Organization of the Petroleum Exporting Countries and its allies including Russia jarred oil markets on Sunday by announcing production cuts that will eventually amount to about 1.16 million barrels per day. Brent crude surged on Monday in response, settling about 5% higher than Friday’s close.

But as much as higher oil prices are unhelpful to a world economy grappling with inflation and tighter credit, the market fallout from the move has been relatively modest so far – not least as signs spluttering global factory output suggest higher energy prices now just act as yet another tax on growth and activity.

Brent prices hovered about $84 per barrel in Europe – still down 2% for the year to date despite Monday’s jump and down a whopping 19% year-on-year.

As it stands, that negative base effect from the post-Ukraine invasion period last year remains heavy on headline inflation and its core prices excluding energy that are now the focus for most central bankers. And there was a sliver of good news on that latter front for the Federal Reserve on Friday.

The mild reaction in the rates and bond markets to the OPEC move reflects some of that.

While the futures market still sees about a 65% chance of one last Fed hike next month, almost half a point of rate cuts before yearend remains in the price. Two and 10-year Treasury yields were little changed from Friday’s levels.

Asia and Europe’s main stock indices were steady to higher, with S&P500 futures only marginally in the red ahead of Monday’s open. The VIX volatility index was a touch higher, though still below 20, and the dollar was up smartly.

The extent the OPEC move may have been a panicky response to signs of falling global demand was underlined by dour March factory readings from across the world.

China’s sprawling manufacturing sector, accounting for a third of the world’s second-largest economy by value, lost significant momentum in March – casting further doubt on the strength of its recovery from restrictive COVID-19 policies.

The Caixin/S&P Global manufacturing purchasing managers’ index teetered back on the 50 dividing line between expansion and contraction again in March. Economists at ING, for one, downgraded China’s GDP growth forecast to 3.8% year-on-year for the first quarter from 4.5% growth,

The news wasn’t any better from still-contracting euro zone and manufacturing last month, where the downturn deepened from February even if a touch above preliminary readings. Equivalent UK surveys also showed deterioration last month and U.S. ISM soundings are due later in the day.

Morgan Stanley’s cross-asset strategists point out that U.S. stocks and bonds are starting to move in opposite directions again after the banking stress of the past month, with equities and debt yields moving in tandem as they both price recession risks from here rather than solely second-guessing Fed moves.

But with service sectors doing much better, much of the attention now shifts to still-tight U.S. labour market and the March national employment report on Friday. Some cooling in the pace of job creation and average earnings is expected but the unemployment rate is expected to remain low at just 3.6%.

Complicating the reaction to the key jobs report – now critical to the Fed’s “data dependent” outlook from here after the March banking shock – is the onset of Easter holidays in Europe that will see London markets closed for the publication.

That perhaps puts a touch more weight on other measures of the labour market out earlier in the week, such as updates on job openings, layoffs and the ADP private sector employment cut on Wednesday.

Elsewhere, Tesla posted record quarterly vehicle deliveries, but its stock was down 2% ahead of the bell as quarter-on-quarter sales growth was modest despite price cuts. Burger chain McDonald’s is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about its layoffs as part of a broader company restructuring, the Wall Street Journal reported.

In politics, former U.S. President Donald Trump is set to fly from Florida to New York City on Monday ahead of his scheduled arraignment related to hush money paid to a [censored] star before the 2016 election.

Key developments that may provide direction to U.S. markets later on Monday:

* U.S. March ISM manufacturing survey, Feb construction spending

* U.S. Federal Reserve Board Governor Lisa Cook speaks; European Central Bank Board Member Elizabeth McCaul speaks

* OPEC monthly meeting

* Ex President Donald Trump flies from Florida to New York ahead of scheduled arraignment

Surprise OPEC production cuts, https://www.reuters.com/graphics/GLOBAL-OIL/egpbyjrylvq/chart.jpg

Brent crude price still lower year till date, https://www.reuters.com/graphics/GLOBAL-OIL/dwpkdkxjjvm/chart.png

China’s March factory activity falters – Caixin, https://www.reuters.com/graphics/CHINA-ECONOMY/PMI-CAIXIN/byvrlmgmlve/chart.png

Fed’s preferred inflation gauge eases, https://www.reuters.com/graphics/PCE-INFLATION/jnpwyjnnepw/chart.png

(By Mike Dolan, editing by Ed Osmond, [email protected]. Twitter: @reutersMikeD)

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Breaking NewsD.C. News

Suspect Sought in Stolen Auto Crash in Southeast DC

by Leo Canega April 3, 2023
By Leo Canega

WASHINGTON, D.C – Detectives from the Metropolitan Police Department’s Fifth District are seeking the public’s assistance in identifying a suspect involved in a Theft One (Stolen Auto) offense that took place on Wednesday, in the 900 block of First Street, Southeast. At around 1:17 pm, the suspect entered an unattended vehicle and was last seen fleeing the scene in the stolen car.

The suspect was captured by surveillance cameras, and the images have been released to the public in an effort to identify the individual. Anyone with information about the suspect or the incident is urged to call the police at 202-727-9099 or text a tip to 50411. Crime Solvers of Washington, DC is offering a reward of up to $1,000 for information that leads to the arrest and indictment of the person or persons responsible for the crime.

Suspect Sought in Stolen Auto Crash in Southeast DC
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Man in critical condition after being shot in the back on Easter in Philadelphia

by Pamela Rosenthal April 3, 2023
By Pamela Rosenthal

PHILADELPHIA, PA – A 30-year-old man was shot in the back on Sunday afternoon in North Philadelphia. Law enforcement officials report that the victim was shot along the 100 block of W. Ontario Street at around 1:17 p.m. and transported to a nearby hospital, where he is listed in critical condition.

The incident is still under investigation, and no arrests have been made in connection with the shooting.

This is a developing incident. Little information is available at this time.

The police are asking anyone with information about the incident to contact them. There are resources available for people or communities that have experienced gun violence in Philadelphia which can be found on the Philadelphia Police Department website, the department noted.

April 3, 2023 0 comments
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Breaking NewsD.C. News

Homicide investigation launched after 34-year-old shot and killed in D.C. double shooting

by Leo Canega April 3, 2023
By Leo Canega

WASHINGTON, D.C – Detectives from the Metropolitan Police Department’s Homicide Branch are investigating a fatal shooting that occurred on Wednesday, in the 3000 block of 30th Street, Southeast.

At approximately 11:44 am, Seventh District officers responded to reports of a shooting at the location. Upon arrival, officers discovered two adult male victims inside a residence. DC Fire and Emergency Medical Services were called to the scene.

One victim, identified as 34-year-old Antonio Burnette of Southeast, DC, was pronounced dead at the scene, while the second victim was transported to an area hospital with non-life-threatening injuries.

The Metropolitan Police Department is offering a reward of up to $25,000 for information leading to the arrest and conviction of the person or persons responsible for the homicide. Anyone with information about this case is urged to call the police at 202-727-9099 or submit anonymous tips by texting 50411.

April 3, 2023 0 comments
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Business News

Humans vs. machines: the fight to copyright AI art

by Reuters April 3, 2023
By Reuters

By Tom Hals and Blake Brittain

(Reuters) – Last year, Kris Kashtanova typed instructions for a graphic novel into a new artificial-intelligence program and touched off a high-stakes debate over who created the artwork: a human or an algorithm.

“Zendaya leaving gates of Central Park,” Kashtanova entered into Midjourney, an AI program similar to ChatGPT that produces dazzling illustrations from written prompts. “Sci-fi scene future empty New York….”

From these inputs and hundreds more emerged “Zarya of the Dawn,” an 18-page story about a character resembling the actress Zendaya who roams a deserted Manhattan hundreds of years in the future. Kashtanova received a copyright in September, and declared on social media that it meant artists were entitled to legal protection for their AI art projects.

It didn’t last long. In February, the U.S. Copyright Office suddenly reversed itself, and Kashtanova became the first person in the country to be stripped of legal protection for AI art. The images in “Zarya,” the office said, were “not the product of human authorship.” The office allowed Kashtanova to keep a copyright in the arrangement and storyline.

Now, with the help of a high-powered legal team, the artist is testing the limits of the law once again. For a new book, Kashtanova has turned to a different AI program, Stable Diffusion, which lets users scan in their own drawings and refine them with text prompts. The artist believes that starting with original artwork will provide enough of a “human” element to sway the authorities.

“It would be very strange if it’s not copyrightable,” said the 37-year-old artist of the latest work, an autobiographical comic.

A spokesperson for the copyright office declined to comment. Midjourney also declined to comment, and Stability AI did not respond to requests for comment.

SMASHING RECORDS

At a time when new AI programs like ChatGPT, Midjourney and Stable Diffusion seem poised to transform human expression as they smash records for user growth, the legal system still hasn’t figured out who owns the output — the users, the owners of the programs, or maybe no one at all.

Billions of dollars could hinge on the answer, legal experts said.

If users and owners of the new AI systems could get copyrights, they would stand to reap huge benefits, said Ryan Merkley, the former chief of Creative Commons, a U.S. organization that issues licenses to allow creators to share their work.

For example, companies could use AI to produce and own the rights to vast quantities of low-cost graphics, music, video and text for advertising, branding and entertainment. “Copyright governing bodies are going to be under enormous pressure to permit copyrights to be awarded to computer-generated works,” Merkley said.

In the U.S. and many other countries, anyone who engages in creative expression usually has immediate legal rights to it. A copyright registration creates a public record of the work and allows the owner to go to court to enforce their rights.

Courts including the U.S. Supreme Court have long held that an author has to be a human being. In rejecting legal protection for the “Zarya” images, the U.S. Copyright Office cited rulings denying legal protection for a selfie snapped by a curious monkey named Naruto and for a song that the copyright applicant said had been composed by “the Holy Spirit.”

One U.S. computer scientist, Stephen Thaler of Missouri, has maintained that his AI programs are sentient and should be legally recognized as the creators of artwork and inventions that they generated. He has sued the U.S. Copyright Office, petitioned the U.S. Supreme Court and has a patent case before the U.K. Supreme Court.

Meanwhile, many artists and companies that own creative content fiercely oppose granting copyrights to AI owners or users. They argue that because the new algorithms work by training themselves on vast quantities of material on the open web, some of which is copyrighted, the AI systems are gobbling up legally protected material without permission.

Stock photo provider Getty Images, a group of visual artists and owners of computer code have separately filed lawsuits against owners of AI programs including Midjourney, Stability AI and ChatGPT developer OpenAI for copyright infringement, which the companies deny. Getty and OpenAI declined to comment.

Sarah Andersen, one of the artists, said granting copyrights to AI works “would legitimize theft.”

‘HARD QUESTIONS’

Kashtanova is being represented for free by Morrison Foerster and its veteran copyright lawyer Joe Gratz, who is also defending OpenAI in a proposed class action brought on behalf of owners of copyrighted computer code. The firm took on Kashtanova’s case after an associate at the firm, Heather Whitney, spotted a LinkedIn post by the artist seeking legal help with a new application after the “Zarya” copyright was rejected.

“These are hard questions with significant consequences for all of us,” Gratz said.

The Copyright Office said it reviewed Kashtanova’s “Zarya” decision after discovering the artist had posted on Instagram that the images were created using AI, which it said was not clear in the original September application. On March 16, it issued public guidance instructing applicants to clearly disclose if their work was created with the help of AI.

The guidance said the most popular AI systems likely do not create copyrightable work, and “what matters is the extent to which the human had creative control.”

‘COMPLETELY BLOWN’

Kashtanova, who identifies as nonbinary and uses “they/them” pronouns, discovered Midjourney in August after the pandemic largely shut down their work as a photographer at yoga retreats and extreme-sports events.

“My mind was completely blown,” the artist said. Now, as AI technology develops at lightning speed, Kashtanova has turned to newer tools that allow users to input original work and give more specific commands to control the output.

To test how much human control will satisfy the copyright office, Kashtanova is planning to submit a series of copyright applications for individual images chosen from the new autobiographical comic, each one made with a different AI program, setting or method.

The artist, who now works at a start-up that uses AI to turn children’s drawings into comic books, created the first such image a few weeks ago, titled “Rose Enigma.”

Sitting at a computer in their one-bedroom Manhattan apartment, Kashtanova demonstrated their latest technique: they pulled up on the screen a simple pen-and-paper sketch they had scanned into Stable Diffusion, and began refining it by adjusting settings and using text prompts such as “young cyborg woman” and “flowers coming out of her head.” 

    The result was an otherworldly image, the lower half of a woman’s face with long-stemmed roses replacing the upper part of her head. Kashtanova submitted it for copyright protection on March 21.

The image will also appear in Kashtanova’s new book. It’s title: “For My A.I. Community.”

(Reporting By Tom Hals and Blake Brittain; editing by Noeleen Walder, Amy Stevens and Claudia Parsons)

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Breaking NewsD.C. NewsPolice Blotter

Second Arrest Made in 2021 Homicide on 14th Street

by Leo Canega April 3, 2023
By Leo Canega

WASHINGTON, D.C. – Detectives from the Metropolitan Police Department’s Homicide Branch have announced a second arrest in a homicide case that occurred on Wednesday, November 3, 2021, in the 2800 block of 14th Street, Northwest. At around 2:02 pm, officers responded to reports of a shooting and found two adult male victims suffering from gunshot wounds.

One of the victims, identified as 34-year-old Delonte King of no fixed address, later succumbed to his injuries, while the second victim was treated for non-life-threatening injuries. On Monday, February 27, 2023, an adult male from Northwest, D.C., was arrested and charged with first-degree murder while armed.

On Wednesday, members of the Capital Area Regional Fugitive Task Force arrested 23-year-old Trequan Nelson of no fixed address. Nelson was transported to the Homicide Branch and charged with first-degree murder while armed (premeditated). The investigation is ongoing, and the police continue to gather information to bring justice to the victims and their families.

April 3, 2023 0 comments
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Breaking NewsD.C. NewsPolice Blotter

16-year-old charged for D.C. armed carjacking

by Leo Canega April 3, 2023
By Leo Canega

WASHINGTON, D.C. – Detectives from the Metropolitan Police Department’s Carjacking Taskforce have made an arrest in an unarmed carjacking that occurred on Sunday, March 26, 2023, in the 3900 block of Morrison Street, Northwest.

At around 7:04 pm, the suspect approached the victim from behind, assaulted them, and snatched their property. The suspect then fled the scene in the victim’s vehicle.

On Wednesday, a 16-year-old juvenile male from Northeast, D.C., was arrested and charged with unarmed carjacking. The investigation is ongoing, and the police are urging anyone with information about the case to come forward.

April 3, 2023 0 comments
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Breaking NewsNew York City NewsNew York NewsPolice Blotter

NYPD releases photo of suspect wanted for knifepoint home invasion

by Adam Devine April 3, 2023
By Adam Devine

NEW YORK, NY – Detectives in the Bronx have released a photo of a man wanted for a home invasion and robbery where a female occupant was robbed at knifepoint by a man and a woman.

According to police, on Monday, March 13, at around 6:45 am, a 32-year-old female was at home when two unknown individuals entered her residence at East 182 Street and Grand Concourse.

“The male individual displayed a knife and demanded money from the victim,” the NYPD said. “The unknown female then removed approximately $300, a debit card and other identification documents from the victim’s purse.”

The individuals fled the location on foot in an unknown direction. The victim did not sustain any injuries from this incident.

NYPD releases photo of suspect wanted for knifepoint home invasion

Police are asking the public for assistance in identifying the suspect.

Anyone with information in regard to this incident is asked to call the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or for Spanish, 1-888-57-PISTA (74782). The public can also submit their tips by logging onto the Crime Stoppers website at https://crimestoppers.nypdonline.org/, on Twitter @NYPDTips.

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Breaking NewsDelaware News

Gold Alert issued for missing New Castle man

by Leo Canega April 3, 2023
By Leo Canega

DELAWARE – Delaware State Police Troop 2 has issued a Gold Alert for 30-year-old James Schafferman, who was last seen in the New Castle area yesterday. Schafferman’s disappearance has raised concern for his safety and well-being, and attempts to contact or locate him have thus far been unsuccessful.

James Schafferman is described as a white male, approximately 5’08” tall and weighing around 219 pounds. He has brown hair, brown eyes, and a beard. Unfortunately, there is no clothing description available at this time.

Delaware State Police Troop 2 urges anyone with information regarding James Schafferman’s whereabouts to contact them by calling 302-834-2620 or by dialing 9-1-1. Information may also be provided by contacting Delaware Crime Stoppers at 1-800-847-3333. The search for Schafferman continues, with authorities hoping for his safe return.

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Breaking NewsNew York City News

21-year-old robbed at gunpoint in NYC

by Leo Canega April 3, 2023
By Leo Canega

NEW YORK CITY – A harrowing armed robbery took place on Monday, February 20, 2023, within the confines of the 83 Precinct. At approximately 1:30 am, a 21-year-old male was approached by an unidentified individual in front of 57 Palmetto Street. The suspect displayed a firearm, demanding the victim’s wallet and cellphone before fleeing the location in an unknown direction. Fortunately, no injuries were reported as a result of the incident.

In an effort to bring the assailant to justice, the New York City Police Department is seeking the public’s assistance in identifying the suspect’s whereabouts. Anyone with information regarding this robbery is encouraged to contact the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or, for Spanish speakers, 1-888-57-PISTA (74782).

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Breaking NewsNew York City News

15-year-old victim of strong armed robbery in Staten Island

by Leo Canega April 3, 2023
By Leo Canega

NEW YORK CITY – In a brazen daytime robbery on Wednesday, March 22, 2023, a 15-year-old male fell victim to a group of unidentified males demanding money. The incident occurred at approximately 11:35 am in front of 35 Hyatt Street, within the confines of the 120 Precinct. The group of suspects approached the victim and forcibly removed his wallet, which contained approximately $150. After obtaining the money, the suspects fled on foot in an unknown direction.

Fortunately, there were no reported injuries resulting from the robbery. The New York City Police Department is actively seeking the public’s assistance in identifying the individuals responsible for this crime. Surveillance video and photographs of the suspects have been obtained from the area surrounding the incident location and are now available through the DCPI.

Anyone with information regarding this robbery is urged to contact the NYPD’s Crime Stoppers Hotline at 1-800-577-TIPS (8477) or, for Spanish speakers, 1-888-57-PISTA (74782).

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Business News

RBA to hold rates at 3.60% on April 4- Reuters Poll

by Reuters April 3, 2023
By Reuters

By Vivek Mishra

BENGALURU (Reuters) – The Reserve Bank of Australia will pause policy tightening on Tuesday according to an updated poll of analysts, although a strong minority still forecast a hike.

The Reuters poll median forecast was revised on Monday to anticipate a pause by the RBA at its April meeting, having previously predicted a hike.

That shift came after some regular contributors, who were not included in a Friday survey, provided their views over the weekend.

Australian inflation slowed to an eight-month low in February, although it was still well above the central bank’s target of 2%-3%.

A majority of economists, 21 of 37, now forecast the cash rate to remain unchanged at 3.60% on April 4. Interest rate futures are not pricing in any further hikes. [0#RBAWATCH]

The remaining 16 still forecast a hike of 25 basis points to 3.85%.

However, major local banks were divided on the RBA’s upcoming decision on Tuesday. While ANZ and NAB predicted a rate hike, CBA and Westpac anticipated a pause but expected another increase next month.

“TD now forecasts the RBA target cash rate to peak at 3.60%. Our prior call was for a 4.35% terminal cash rate. Bank communications since the 7th March Statement have clearly indicated the RBA’s strong intention to consider pausing. The monthly CPI prints now provide that scope,” noted Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.

“If we are wrong, we would expect the RBA to hike 25bps in April and then move to the sidelines rather than pause in April and hike in May sending mixed signals to the market. There is also the possibility the RBA may hike later in the year after a pause,” Newnaha said.

(For other stories from the Reuters global long-term economic outlook polls package:)

(Reporting by Vivek Mishra; Polling by Madhumita Gokhale and Anant Chandak; Editing by Jonathan Cable)

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US says far-right activist convicted over 2016 voter suppression scheme

by Reuters April 3, 2023
By Reuters

By Kanishka Singh

WASHINGTON (Reuters) – A social media influencer who once had 58,000 Twitter followers was convicted by a federal jury of election interference in the 2016 U.S. presidential race over a voter suppression scheme, the Justice Department said late on Friday.

Douglass Mackey, also known as “Ricky Vaughn,” was convicted of the charge of conspiracy against rights stemming from his scheme to deprive individuals of their constitutional right to vote, the Justice Department said in a statement. Mackey faces a maximum of 10 years in prison.

In 2016, Mackey, 33, established an audience on Twitter with 58,000 followers. A February 2016 analysis by the MIT Media Lab ranked Mackey as the 107th most important influencer of the then-upcoming presidential election in which Republican former President Donald Trump defeated Democrat former Secretary of State Hillary Clinton.

Mackey, a Trump supporter, had been charged in 2021 by federal prosecutors in Brooklyn, who said he conspired with others to disseminate disinformation on social media and urged people to cast their ballots through invalid means such as text messages.

In one tweet for example, he had featured a picture of an African American woman standing in front of a sign for an unnamed candidate. Next to the image, it said: “Avoid the line. Vote from home.”

“Today’s verdict proves that the defendant’s fraudulent actions crossed a line into criminality and flatly rejects his cynical attempt to use the constitutional right of free speech as a shield for his scheme to subvert the ballot box and suppress the vote,” United States Attorney Breon Peace said.

Mackey’s lawyer, Andrew Frisch, suggested his client would appeal.

“This case presents an unusual array of appellate issues that are exceptionally strong,” Frisch was quoted as saying by the New York Times, adding: “I’m confident about the way forward.”

According to the Southern Poverty Law Center, a civil rights organization, Vaughn has in the past openly supported hate groups.

(Reporting by Kanishka Singh in Washington, Editing by Franklin Paul)

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US Republicans defend Trump by attacking criminal justice system

by Reuters April 3, 2023
By Reuters

By David Morgan

WASHINGTON (Reuters) – Many Republicans in the U.S. Congress have responded to Donald Trump’s looming Tuesday arraignment by characterizing the criminal justice system as corrupt, in accusations that parallel their earlier broadsides against the nation’s elections after the former president’s 2020 defeat.

    Trump and his allies in the House of Representatives and Senate have used rhetoric that echoed his false claims of widespread election fraud in the build-up to the deadly Jan. 6, 2021, assault on the U.S. Capitol by his supporters.

Critics warn that the present partisan rhetoric could shake public trust in courts by undermining the institutional legitimacy of the criminal justice system.

“Trump’s indictment is the culmination of 6 years of the Democrats weaponizing law enforcement to target and persecute their political enemies. Dictatorships operate like this – the US is supposed to be different,” tweeted Senator Ted Cruz, a hardline Republican who voted to overturn 2020 election results.

Trump says he is innocent of the expected New York charges – which revolve around hush money payments to [censored] star Stormy Daniels during his 2016 presidential campaign. Details of the charges are as yet unclear.

He says the investigation and three other probes involving his attempts to overturn his 2020 election defeat and his retention of classified documents after leaving the White House are all politically motivated.

Most Democrats have warned against challenging the legitimacy of the institutions of government in defense of Trump, who routinely pushed up against the guard rails of democracy during his four years in the White House and was twice impeached by Congress.

“Political leaders ought to stand up for the American system of government,” said Democratic Representative Zoe Lofgren, a member of the House Judiciary Committee who also served on the congressional investigation of the Jan. 6 attack.

“Undercutting the system of government is a serious matter and a threat to our future,” she said in an interview.

Trump has been unrestrained in his rhetoric in recent weeks, calling for protests and warning of potential “death & destruction” if he were to be charged.

He used fiery language hours before his supporters stormed the Capitol on Jan. 6, in a bid to overturn his election defeat. Five people including a police officer died during or shortly after that riot and more than 140 police officers were injured. The Capitol suffered millions of dollars in damage.

FOCUS ON BRAGG

Most Republicans have trained their invective on Manhattan District Attorney Alvin Bragg, accusing the prosecutor of mounting a politically motivated investigation aimed at preventing Trump from being re-elected to the White House in 2024.

After Trump on March 18 announced that he expected to be arrested in days, the Republican-controlled House launched its own probe of Bragg’s grand jury investigation, seeking documents and testimony. They have called Bragg’s move “an unprecedented abuse of prosecutorial authority” and said the indictment followed years of the office searching for any basis on which to bring charges.

Democrats questioned whether Congress has the authority to investigate a state-level investigation, particularly one conducted under secretive grand jury rules.

Bragg, a Democrat, on Friday warned Republican Representatives Jim Jordan, James Comer and Bryan Steil, who are leading the probe, against attacking the criminal justice system.

“You and many of your colleagues have chosen to collaborate with Mr. Trump’s efforts to vilify and denigrate the integrity of elected state prosecutors and trial judges,” the Manhattan prosecutor wrote.

House Republicans continued to push back. Firebrand Marjorie Taylor Greene said she planned to protest against Trump’s court appearance on Tuesday, while Brian Mast went further and told CNN he would not accept the outcome of a jury trial, saying “I don’t have a trust that a jury will make a fair assessment of this.”

Not all Republicans were so quick to cast doubt on the courts.

Former Arkansas Governor Asa Hutchinson issued a statement that called for patience and underscored the legal principle that Trump, as a defendant, should be presumed innocent.

“We need to wait on the facts and for our American system of justice to work like it does for thousands of Americans every day,” said Hutchinson, who is considering his own 2024 White House run.

Historians including Princeton University professor Julian Zelizer said Republican statements about Bragg and the criminal justice system follow a long-established partisan line.

“The party has invested a great deal in attacking the legitimacy of institutions, which is why Trump fit well into the party and continues to be popular,” Zelizer said in an email.

Nicole Hemmer, director of the Rogers Center for the American Presidency at Vanderbilt University, warned that Republican attacks on the U.S. criminal justice system could ultimately have dire consequences for courts and juries.

“This is the end-game of the ‘deep state’ rhetoric that Donald Trump has deployed since 2016 to sow those seeds of distrust in institutions of accountability,” Hemmer said.

“We haven’t yet seen a cataclysmic moment in this rejection of the courts. But we are starting to see the steps toward it, as we saw the steps toward Jan. 6 coming from a long way off.”

(Reporting by David Morgan; additional reporting by Richard Cowan; Editing by Scott Malone and Rosalba O’Brien)

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Judge blocks Tennessee law restricting drag performances in public

by Reuters April 3, 2023
By Reuters

By Kanishka Singh

WASHINGTON (Reuters) – A federal judge in Memphis, Tennessee, on Friday temporarily blocked a law restricting drag performances in public from going into effect, saying it was likely “vague and overly-broad” in its restriction of speech.

Tennessee Governor Bill Lee, a Republican, in February, had signed the bill passed by the state’s legislature that was meant to go into effect on Saturday. The bill aimed to restrict drag performances in public or in front of children, putting the state at the forefront of a Republican-led effort to limit drag in at least 15 states in recent months.

“At this point, the court finds that the statute is likely both vague and overly-broad,” U.S. District Judge Thomas Parker, an appointee of Republican former President Donald Trump, said in a ruling granting a temporary restraining order.

The judge said the state had failed to justify with a compelling interest the restrictions it aimed to impose.

Lee had said the law would protect children from being “potentially exposed to sexualized entertainment, to obscenity.”

The judge sided with Friends of George’s, a Memphis-based LGBTQ theater group that filed suit against the state.

The Tennessee bill was part of an upswing in recent months in Republican efforts to regulate the conduct of lesbian, gay, bisexual, transgender and queer people.

Several planned drag events were canceled over the winter after protests, and many venues felt forced to make previously family-friendly drag shows into adults-only events.

Much of the debate in Tennessee has been over whether drag is inherently a sexually explicit art form.

Performers and civil rights groups have condemned the proposed drag regulations, saying they are unconstitutional, redundant under existing obscenity laws, and would lead to further harassment and violence against gay and transgender people.

(Reporting by Kanishka Singh in Washington)

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Bomb that killed Russian war blogger wounded 32 – RIA

by Reuters April 3, 2023
By Reuters

(Reuters) – The number of people wounded in the bomb blast that killed a prominent Russian military blogger in St Petersburg on Sunday has risen to 32 from 25 reported earlier, Russia’s RIA sate news agency reported.

Citing the ministry of health, RIA reported on Monday that 10 of the people were in a serious condition.

Vladlen Tatarsky was killed in a St Petersburg cafe in what appeared to be the second assassination on Russian soil of a figure closely associated with the war in Ukraine.

It was not immediately known who was behind the killing. Russia’s state Investigative Committee said it had opened a murder investigation.

(This story has been refiled to remove the extraneous figure ’25’ from paragraph 1)

(Reporting by Lidia Kelly in Melbourne; editing by Robert Birsel)

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Euro zone factory downturn deepened in March -PMI

by Reuters April 3, 2023
By Reuters

LONDON (Reuters) – Activity at struggling factories across the euro zone fell further last month as consumers feeling the pinch from rising living costs cut back, according to a survey which did show the cost of manufacturing fell for the first time since mid-2020.

S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to 47.3 in March from February’s 48.5, just ahead of a preliminary reading of 47.1 but below the 50 mark separating growth from contraction for a ninth month.

An index measuring output, which feeds into a composite PMI due on Wednesday that is seen as a good guide to economic health, did however rise to a 10-month high of 50.4 from 50.1.

“Euro zone manufacturing remains in troubled waters, with factories reporting a fall in demand for goods for an eleventh straight month amid the surging cost of living, tighter monetary policy, a shift to inventory destocking and subdued customer confidence,” said Chris Williamson, chief business economist at S&P Global.

Lower energy costs and healing supply chains did however mean input prices fell for the first time since July 2020 – just when the coronavirus pandemic was cementing its grip on the world. The sub-index sank to 46.8 from 50.9.

That drop allowed factories to increase their charges at the slowest pace in over two years, likely welcome news to policymakers at the European Central Bank who have so far failed to get inflation anywhere near their 2% target.

“These lower costs are feeding through to slower increases in selling prices, which should in turn feed through to lower prices paid for goods by consumers,” Williamson said.

Despite having embarked on the most aggressive tightening of monetary policy in the central bank’s history, prices rose 6.9% last month, official data showed on Friday.

After delivering an expected 50 basis point increase to interest rates last month a Reuters poll suggested the ECB would follow through with 25 basis points lifts at its May, June and July meetings.

(Reporting by Jonathan Cable; Editing by Toby Chopra)

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China’s faltering March factory activity weighs on GDP outlook

by Reuters April 3, 2023
By Reuters

By Liangping Gao and Ryan Woo

BEIJING (Reuters) – China’s sprawling manufacturing sector, accounting for a third of the world’s second-largest economy by value, lost momentum in March amid still-weak export orders, tapping the brakes on the country’s economic recovery from restrictive COVID-19 policies.

The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) fell to 50.0 in March. That followed February’s reading of 51.6, which indicated the first monthly activity expansion in seven months.

The survey results, released on Monday, were well below expectations of 51.7 in a Reuters poll and echoed slower growth in an official PMI released on Friday. The 50-point index mark separates growth from contraction on a monthly basis.

China’s economy showed signs of a recovery in the first two months of the year, led by a pickup in services after the end of three years of strict COVID policies that had disrupted commerce and muzzled domestic demand.

But a convincing manufacturing rebound has been lacking, dragging on the economy’s near-term outlook. ING Group on Monday slashed its first-quarter gross domestic product (GDP) forecast to 3.8% annual growth from 4.5%, citing slower external demand.

“The recovery is not smooth and we note that external demand is still fragile, which could pose a risk to domestic demand,” the Dutch bank said in a research note.

Beijing has set a modest target for economic growth this year of about 5% after it grew by just 3% last year, one of the weakest showings in nearly half a century.

China’s GDP is likely to have grown around 4.0% year-on-year in the first quarter as consumption picked up and infrastructure investment maintained a high pace of growth, state-owned financial newspaper The Securities Times reported on Monday.

“The next few months are likely to see weak external demand and a recovery in domestic demand,” said Nie Wen, a Shanghai-based economist at investment firm Hwabao Trust.

However, Nie expects GDP data to mostly reflect the strength seen in manufacturing and services at the start of the year and raised his first-quarter forecast to 3.7% annual growth from 3.5% previously.

In March, the new export orders sub-index fell to 49.0 after briefly swinging into growth in February, suggesting global demand remains weak, according to the Caixin survey.

“The relatively modest and short-lived pick-up in the manufacturing PMIs in the first quarter suggests that the industrial sector has only received a limited boost from reopening,” Capital Economics wrote in a note.

“This is partly due to a weaker global backdrop, but it is also consistent with our view that most of the reopening recovery will come from the services sector which was hardest hit by the zero-COVID policy.”

GRAPHIC: China’s March factory activity falters – Caixin, https://www.reuters.com/graphics/CHINA-ECONOMY/PMI-CAIXIN/byvrlmgmlve/chart.png

REBOUND DOUBTS

A property downturn and global financial uncertainty have also raised doubts about the strength of China’s rebound.

“The foundation for economic recovery is not yet solid. Looking forward, economic growth will still rely on a boost in domestic demand, especially an improvement in household consumption,” said Wang Zhe, senior economist at Caixin Insight Group.

Official data on Friday showed activity in the services sector expanded at its fastest pace in nearly 12 years.

Caixin/S&P Global services purchasing managers’ index (PMI), mostly tracks small and medium-sized private-owned enterprises, will be released on Thursday.

China’s new premier Li Qiang last week vowed to support consumption and investment. The central bank also lowered the reserve requirement ratio last month.

“The new economic team is officially taking over, we will likely see more pro-business policies going forward, even though our expectation for stimulus is low,” Citi said in a research note.

(Reporting by Liangping Gao and Ryan Woo; Editing by Sam Holmes and Jamie Freed)

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German manufacturing activity downturn deepened in March -PMI

by Reuters April 3, 2023
By Reuters

BERLIN (Reuters) – German manufacturing activity shrank in March at the fastest pace in almost three years, a survey showed on Monday.

S&P Global’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of Germany’s economy, fell to 44.7 in March from 46.3 in February. It marked its lowest level since May 2020, well below the 50 mark that separates contraction and expansion in manufacturing activity.

The German manufacturing PMI has languished below the 50 mark since July. A Reuters poll of analysts had forecast a March reading of 44.4, in line with an earlier flash reading.

The fall was driven mainly by the supplier delivery times sub-component, which is inverted in the calculation of the PMI and therefore has a negative directional influence as it rises.

“The improvement in supplier performance was by far the greatest seen in the series history and represented an unwinding of the unprecedented disruption brought about by the pandemic,” the report by S&P Global said.

The decline in the main index masked a second consecutive uptick in production levels, the report by S&P Global said.

“Falling input costs were another plus-point, with lower pipeline price pressures as a welcome development for inflation, although this was in large part a symptom of cooling demand,” said Phil Smith, economics associate director at S&P Global Market Intelligence.

German manufacturers’ expectations towards future production, although positive, were subdued by historical standards in March, according to the report. There were concerns towards future demand, due to geopolitical uncertainty, high inflation and tightening financial conditions.

(Reporting by Maria Martinez; Editing by Toby Chopra)

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Chinese lenders focus on risk management amid global banking crisis

by Reuters April 3, 2023
By Reuters

BEIJING (Reuters) – China’s top lenders should enhance risk management practices and be more sensitive to macroeconomic fluctuations, senior Chinese banking officials said, in response to a global banking sector crisis that has roiled financial markets.

The collapse of Silicon Valley Bank (SVB) suggests banks should strictly abide by the regulatory requirements and measures of risk management, Xie Xiaoxue, from China Construction Bank Corp’s (CCB) credit management department, said.

If not, banks often “would face huge risks,” he said in an article published on Saturday in China Finance, a magazine affiliated to the central bank.

“China’s commercial banks should constantly improve the organisational structure of risk management and strengthen risk governance with sound and prudent measures,” Xie wrote.

The remarks come in the wake of the March 10 collapse of Silicon Valley Bank and failure of Signature Bank in the United States two days later. The state-backed rescue of Credit Suisse also forced policymakers to rush to calm investor nerves.

Executives at China’s big five banks said during annual results last week the lenders have limited exposure to the banking crisis. Still, they emphasised the need to manage credit, liquidity and market risks.

Xie said that Chinese banks should fully use stress tests and other tools to measure the impact of economic fluctuations and the changes in market participants’ financial situations.

That would help banks to evaluate their ability to deal with short-term liquidity suspension or risk events caused by maturity mismatch of assets and liabilities in the medium to long term, he wrote.

In addition, Chinese banks should “hold the bottom line of no systemic financial risks” when acquiring overseas assets, Jiang Jianqing, a former president of Industrial and Commercial Bank of China Ltd, wrote in China Finance.

Jiang said that banks should be cautious when purchasing overseas assets cheaply after a crisis, as problems of the company to be acquired may not be fully visible, which may put great burden on the buyer.

(Reporting by Ziyi Tang and Ryan Woo; Editing by Sumeet Chatterjee and Jacqueline Wong)

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Evonik announces job cuts in pet food unit

by Reuters April 3, 2023
By Reuters

(Reuters) – German specialty chemicals producer Evonik on Monday announced the restructuring of its pet food unit, including cost savings of 200 million euros ($216.50 million) from 2025 onwards and around 200 job cuts worldwide.

The company added that its amino acids and specialties businesses will operate separately and on different business models.

Evonik, a market leader in the production of amino acids for poultry feeds, said the market environment for amino acids is challenged by rising raw material and energy costs, but still remains attractive.

The Essen-based company will now be targeting a streamlined operating model focused on efficiency and cost-leadership for its amino acids business, it said.

“We are systematically implementing a plan that will develop our Animal Nutrition business, so it continues to grow and succeed in our markets,” said Johann-Caspar Gammelin, head of Evonik’s Nutrition & Care branch.

($1 = 0.9238 euros)

(Reporting by Andrey Sychev in Gdansk, Editing by Rachel More)

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