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Business News

Marketmind: UBS-Credit Suisse deal sealed. Is it enough?

by Reuters March 19, 2023
By Reuters

By Jamie McGeever

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.

Buckle up.

Asian markets are set for a volatile open on Monday after Swiss authorities said UBS is taking over Credit Suisse, a forced merger investors hope will ease the strain on the global banking system and avert a full-blown crisis.

The $3.2 billion deal comes after a sudden burst of turmoil in the global banking sector – two U.S. bank failures then Credit Suisse’s implosion – sparked unprecedented volatility in the U.S. interest rate and bond markets.

Will it be enough to calm the horses? On the face of it, probably. But asset writedowns worth billions of dollars will inflict losses on investors already whiplashed by recent events.

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China’s central bank announces its latest interest rate decision on Monday morning. With recent inflation much weaker than expected and following Friday’s reserve requirement cut, the 1-year and 5-year loan prime rates are expected to be left at 3.65% and 4.30%, respectively.

Given the global banking and market turmoil swirling right now, a rate cut would not be a total shock. But Asian market direction on Monday will be driven by events in Europe and the United States.

Last week, MSCI’s World Index ended flat, MSCI Asia ex-Japan rose 0.5%, the S&P 500 rose 1.5%, and the Nasdaq jumped a remarkable 4.5%, lifted by hopes the Fed’s rate-hiking campaign could be over.

The Fed delivers its latest policy decision on Wednesday. But no equity market will be able to ignore the seismic shifts in U.S. rates and bonds for long. Last week was historic:

– the 2-year U.S. yield fell 75 basis points, its biggest weekly fall since Black Monday in 1987

– the two-year yield has now moved 20 bps or more for seven straight days, the longest streak since at least 1976

– the U.S. 2s/10s curve steepened by 50 bps last week, the most in at least a decade

– the ‘MOVE’ index of Treasury market volatility posted its biggest weekly rise since 2008, and fourth-largest since the index was launched two decades ago

The damage to investors of all stripes from that level of volatility in one of the world’s most liquid and systemically important securities cannot be overstated. Those with direct exposure will be suffering huge losses.

If all that was not enough, geopolitical tensions will be on investors’ radar too. China’s President Xi Jinping is in Moscow, his first international trip since securing a third term as president, visiting Russian President Vladimir Putin.

Xi is seeking to strengthen ties and cement his “no limits” partnership with the increasingly isolated Putin, who faces criminal charges over his Ukraine war.

Here are three key developments that could provide more direction to markets on Monday:

– Credit Suisse-UBS developments

– China interest rate decision

– Chinese President Xi Jinping visits Russia

(By Jamie McGeever; editing by Diane Craft)

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March 19, 2023 0 comments
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Breaking News

13-year-old reported missing in Essex

by Jessica Woods March 19, 2023
By Jessica Woods

ESSEX, MD – The Baltimore Police Department is investigating the disappearance of a 13-year-old boy in the Essex area on Sunday.

Police said 13-year-old Christian Muniz-Aguilar is 5’ 4″ tall and weighs 100lbs.

He was last seen in the Essex area wearing light green Spongebob hoodie with the character “Patrick” on it and white Nike shoes.

Anyone with information is requested to call 911 or 410-307-2020

March 19, 2023 0 comments
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Breaking NewsMaryland NewsPolice Blotter

Juvenile shot in Glen Burnie, police investigating

by Jessica Woods March 19, 2023
By Jessica Woods

GLEN BURNIE, MD – The Anne Arundel County Police Department is investigating a shooting involving a 16-year-old.

Police responded to the scene in the area of Winding Wood Road near Green Branch Lane at around 3 p on Sunday.

“One juvenile victim suffering from a non-life-threatening injury,” police reported. “Please watch for responders in the area.”

The AACPD did not release any further details regarding this shooting. No arrests have been announced and no suspects have been identified.

March 19, 2023 0 comments
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Business News

Fed, other central banks set joint liquidity operation

by Reuters March 19, 2023
By Reuters

(Reuters) – The U.S. Federal Reserve on Sunday said it had joined with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank in a coordinated action to enhance the provision of liquidity through the standing U.S. dollar swap line arrangements.

The move came on the heels of a deal brokered by Swiss authorities to have UBS buy rival Swiss bank Credit Suisse to prevent its disorderly collapse and signals the depth of concern central bankers have over the recent turmoil in the financial system on both sides of the Atlantic.

“To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of seven-day maturity operations from weekly to daily,” the Fed said in a statement issued alongside announcements from the other five central banks.

Operations will commence on Monday and will continue at least through the end of April, the Fed said.

(Reporting By Dan Burns; editing by Diane Craft)

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March 19, 2023 0 comments
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Repeat Offender Sentenced to 16 Years in Prison for Manslaughter

by Leo Canega March 19, 2023
By Leo Canega

UNION COUNTY, NEW JERSEY – Union County Superior Court Judge Candido Rodriguez, Jr. has sentenced Laquan McCall, 31, to an extended term of 16 years in State Prison for second-degree manslaughter. McCall’s prior criminal history led to his classification as a persistent offender, resulting in a lengthier sentence than the typical 5 to 10 years for second-degree crimes. Judge Rodriguez also ordered that McCall must serve at least 85% of his sentence before being eligible for parole.

Christopher Elliott, an accomplice who pled guilty to third-degree aggravated assault, was sentenced to 3 years in State Prison.

On July 27, 2019, Elizabeth Police Department patrol units responded to a report of an altercation at Ben’s Bar on the 600 block of Meadow Street.

They discovered 28-year-old Melara with severe injuries, who was later pronounced dead at Trinitas Regional Medical Center. Testimony from the trial revealed that McCall had punched Melara multiple times outside the bar, causing fatal brain injuries.

Elliott admitted to acting as an accomplice by driving McCall away from the scene after the attack.

March 19, 2023 0 comments
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Woman Arrested for Assault and Threatening with Knife in Cumberland

by Leo Canega March 19, 2023
By Leo Canega

CUMBERLAND, MARYLAND – Yesterday, Cumberland Police arrested 57-year-old Donna Michelle Herring after responding to a disturbance at an establishment on Valley Street. Herring allegedly brandished a knife and threatened to stab a victim during the altercation.

She was charged with Assault -1st Degree, Assault-2nd Degree, Reckless Endangerment, Disorderly Conduct, and Intoxicated Public Disturbance.

Officers arrived at the scene and spoke with those involved and witnesses. According to reports, Herring created a disturbance, pulled out a knife, and began waving it around.

The alleged victim claimed that Herring pointed the knife at him and threatened to stab him. After further investigation, Herring was placed under arrest and transported to police headquarters for processing.

Herring was later taken to Central Booking to await her bond hearing. A District Court Commissioner remanded her to the Allegany County Detention Center on a $2,500 bond.

March 19, 2023 0 comments
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Greenbelt Police Arrest Juvenile and Adult for Separate Narcotics Incidents

by Leo Canega March 19, 2023
By Leo Canega

GREENBELT, MARYLAND – On Wednesday, Greenbelt Police officers arrested a 15-year-old boy for stealing a car after responding to reports of juveniles smoking controlled substances.

The teenager was charged with unlawful taking of a motor vehicle and malicious destruction of property. He had prior arrests for attempted theft and robbery.

On Friday, officers arrested a 35-year-old Capitol Heights man for driving without a front tag during a traffic stop. Officers found a stolen handgun and 68 illegally possessed opium narcotics during a search.

The man, prohibited from possessing firearms or ammunition, was charged with 17 counts, including handgun violations and drug trafficking.

March 19, 2023 0 comments
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Man riding scooter in Jersey City victim of hit and run

by Leo Canega March 19, 2023
By Leo Canega

JERSEY CITY, NEW JERSEY – The Hudson County Regional Collision Investigation Unit and the Jersey City Police Department are investigating a hit-and-run incident that seriously injured a 33-year-old man riding an electric scooter on Thursday. The collision occurred near Brunswick Street and Christopher Columbus Drive. The victim was transported to Jersey City Medical Center, where he is in stable condition with non-life-threatening injuries.

Authorities discovered that a light-colored motor vehicle struck the scooter while making a right turn from Brunswick Street onto Christopher Columbus Drive before fleeing the scene.

No arrests have been made yet.

Anyone with information is urged to contact the Hudson County Prosecutor’s Office at 201-915-1345 or leave an anonymous tip at http://www.hudsoncountyprosecutorsofficenj.org/homicide-tip/. All information will be kept confidential.

March 19, 2023 0 comments
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US and World News

France’s Macron faces another test with no-confidence vote on pension reform Monday

by Reuters March 19, 2023
By Reuters

By Dominique Vidalon

PARIS (Reuters) -President Emanuel Macron faces a critical moment on Monday when the French National Assembly is due to vote on no-confidence motions filed after his government bypassed parliament on Thursday to push through an unpopular rise in the state pension age.

The move, which followed weeks of protests against the pension overhaul, triggered three nights of unrest and demonstrations in Paris and throughout the country, with hundreds of people arrested, reminiscent of the Yellow Vest protests that erupted in late 2018 over high fuel prices.

In a sign that Macron was holding firm, his office on Sunday evening said the president had called the heads of the Senate upper house and of the National Assembly to say he wanted the pension reform to go to “the end of its democratic process”.

Macron also told them the government was mobilised to “protect” members of parliament who are facing pressure ahead of the vote.

However, while Monday’s votes may put on display the level of anger at Macron’s government, they are unlikely to bring it down.

Opposition lawmakers filed two motions of no-confidence in parliament on Friday.

Centrist group Liot proposed a multiparty no-confidence motion, which was co-signed by the far-left Nupes alliance. Hours later, France’s far-right National Rally party, which has 88 National Assembly members, also filed a no-confidence motion.

But even though Macron’s party lost its absolute majority in the lower house after elections last year, there was little chance the multi-party motion would go through – unless a surprise alliance of lawmakers from all sides is formed from the far-left to the far-right.

The leaders of the conservative Les Republicains (LR) party have ruled out such an alliance. None of them had sponsored the first no-confidence motion filed on Friday.

But the party still faced some pressure.

In the southern city of Nice, the political office of Eric Ciotti, leader of Les Republicains, was ransacked overnight and tags were left threatening riots if the motion was not supported.

“They want through violence to put pressure on my vote on Monday. I will never yield to the new disciples of the Terror,” Ciotti wrote on Twitter.

BROAD ALLIANCE

Macron’s overhaul raises the pension age by two years to 64, which the government says is essential to ensure the system does not go bust.

Even if the government survives Monday’s no confidence vote, a broad alliance of France’s main unions has said it would continue to mobilise to try to force a U-turn on the changes. A day of nationwide industrial action is scheduled for Thursday.

Laurent Berger, leader of the moderate CFDT labour union, told French daily Liberation that the pension reform was “not a failure, it is a shipwreck” for the government.

Philippe Martinez, leader of the hard-left CGT labour union, said on BFM television that he condemned violence but it was Macron’s “responsibility if the level of anger is so high”.

Macron’s approval ratings have fallen four points in the past month to 28%, according to an IFOP-Journal du Dimanche poll, their lowest level since the Yellow Vest crisis.

Strikes at the country’s refineries persisted over the weekend, raising concerns of potential fuel shortages.

Less than 4% of French petrol stations were however experiencing supply disruptions, Rene-Jean Souquet-Grumey, an official for the Mobilians petrol stations federation, told Franceinfo radio on Sunday.

Rolling strikes continued on the railways, while rubbish has piled up on the streets of Paris after refuse workers joined the action.

Finance Minister Bruno Le Maire told Le Parisien newspaper, commenting on prospects for Monday’s votes: “I think there will be no majority to bring down the government. But this will be a moment of truth”.

“Is the pension reform worth bringing down the government and (creating) political disorder? The answer is clearly no. Everyone must take his responsibilities,” he added.

(Reporting by Dominique Vidalon, Gilles Guillaume, Michel RoseEditing by Frances Kerry, David Holmes and Diane Craft)

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March 19, 2023 0 comments
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US and World News

On eve of Xi visit, Putin welcomes Chinese role in Ukraine crisis

by Reuters March 19, 2023
By Reuters

(Reuters) – Russian President Vladimir Putin welcomed China’s willingness to play a “constructive role” in solving the Ukraine crisis, in an article released on Sunday, the eve of a visit by his Chinese counterpart Xi Jinping.

In what the Kremlin said was an article written for a Chinese newspaper, Putin called Xi his “good old friend” and said Russia had high hopes for his visit, the Chinese leader’s first to Russia since Putin launched his “special military operation” last year.

“We are grateful for the balanced line of (China) in connection with the events taking place in Ukraine, for understanding their background and true causes. We welcome China’s willingness to play a constructive role in resolving the crisis,” Putin said.

Xi and Putin signed a “no limits” partnership agreement weeks before the invasion last year. China has publicly remained neutral in the Ukraine conflict, while criticising Western sanctions against Russia and reaffirming its close ties with Moscow.

Beijing last month published a 12-point paper calling for dialogue and a settlement in Ukraine, but it contained only general statements and no concrete proposal for how the year-long war might end.

Ukraine, which says any settlement would require Russia to withdraw from all the territory it has seized including the Crimean peninsula Russia annexed in 2014, cautiously welcomed the Chinese proposal.

The United States has reacted with extreme scepticism, given China’s refusal to condemn Russia’s invasion, and said a ceasefire now would only lock in Russian territorial gains and give Putin more time for his army to regroup.

Washington has said since last month that it was concerned China might provide Russia with weapons, which Beijing has denied.

Putin said Russo-Chinese relations were at a historic high and they were coordinating their foreign policy to fight common threats as U.S. attempts to contain both countries took on an “ever sharper and more assertive character”.

(Reporting by Mark Trevelyan and Ron Popeski; Editing by Peter Graff)

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March 19, 2023 0 comments
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Man arrested for grabbing children, exposing himself in Wilkes-Barre

by Leo Canega March 19, 2023
By Leo Canega

WILKES-BARRE, PENNSYLVANIA – Police in Wilkes-Barre have made an arrest in an indecent exposure incident.

On Saturday, police arrested Dominic Spruell for indecent exposure and other charges after responding to a report of a man attempting to grab children while exposing himself in the area of N. Main Street and Hollenback Ave. Spruell, who had his pants down and his penis exposed while following juveniles, initially provided false information to officers but was later positively identified.

Spruell was taken to Wilkes-Barre City Police Headquarters and charged with Indecent Exposure, Open Lewdness, False Identification to Law Enforcement, Public Drunkenness, and a City Ordinance. He was then transported to Luzerne County Correctional Facility for overnight arraignment.

March 19, 2023 0 comments
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Newark Police seeking to identify shooting suspects

by Leo Canega March 19, 2023
By Leo Canega

NEWARK, NEW JERSEY – Public Safety Director Fritz G. Fragé is seeking the public’s help in identifying suspects connected to an incident of criminal mischief that occurred on last month.

Today, police released a photo of the suspects.

Police were called to the 100 block of Brunswick Street after reports of shots fired. Upon arrival, officers found multiple spent shell casings, but no injuries have been reported.

Director Fragé encourages anyone with information about the identity of these suspects to contact the Police Division’s 24-hour Crime Stopper tip line at 1-877-NWK-TIPS (1-877-695-8477). All anonymous tips remain confidential and could result in a reward.

March 19, 2023 0 comments
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Business News

LatAm growth threatened if financial turbulence spreads -IDB chief economist

by Reuters March 19, 2023
By Reuters

By Milagro Vallecillos

PANAMA CITY (Reuters) – Latin America could see zero economic growth this year if the banking crisis in the U.S. and Europe “spreads across the world,” Inter-American Development Bank Chief Economist Eric Parrado said on Sunday.

Parrado, who spoke during an annual IDB conference in Panama City, said IDB remains optimistic the region will be “resistant to these types of shocks.”

IDB President Ilan Goldfajn said Wednesday that Latin America has a “very resilient and well managed” financial system.

Stocks and currencies in the region tumbled on Wednesday as traders worried over the stability of Swiss lender Credit Suisse following the crash of Silicon Valley Bank.

If the banking crisis does not spread to the region, IDB predicts 1% growth in 2023 and 1.9% in 2024, significantly down from the region’s better-than-expected growth of 3.9% in 2022.

Parrado said the lower growth estimates are due in part to depressed global demand, sky-rocketing commodity prices, and high interest rates to control inflation.

While average annual inflation in Latin America and the Caribbean has started to ease, it reached 9.6% in July 2022, the highest since the global financial crisis of 2008, according to IDB.

As central banks continue to maintain or tighten monetary policy, IDB advised countries to prioritize subsidies for the poorest sectors and incentivize infrastructure investments and formal employment, while controlling public debt ratios.

Earlier this week, Moody’s Investors Service said global uncertainty in the banking center would have a limited impact on Latin America banks.

On Friday, Bank of Mexico’s Governor said she saw no risk of contagion from the U.S. banking crisis.

FOOD INSECURITY

During Saturday’s meetings, IDB Invest Corporate Division chief Aitor Ezcurra also said Latin America is suffering from an “unprecedented” food security crisis.

Around 41% of the region’s residents experienced food insecurity in 2021, up from 32% in 2019, Ezcurra said. He blamed rising food prices and falling agricultural output due in part to the rising costs of fertilizers, fuel and other agricultural inputs.

The IDB, headquartered in Washington, is a key investor in Latin America and the Caribbean, behind nearly 600 ongoing infrastructure, health, tourism and other projects. It was responsible for $23.4 billion in financing and other financial commitments in 2021.

(Reporting by Milagro Vallecillos in Panama City, Jackie Botts in Mexico City, Fabian Cambero in Santiago)

March 19, 2023 0 comments
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Business News

Bitcoin rises 5.19% to $28,380

by Reuters March 19, 2023
By Reuters

(Reuters) – Bitcoin rose 5.19% to $28,380 at 20:01 GMT on Sunday, adding $1,400 to its previous close.

Bitcoin, the world’s biggest and best-known cryptocurrency, is up 72% from the year’s low of $16,496 on Jan. 1.

Ether, the coin linked to the ethereum blockchain network, rose 3.58% to $1,827.2 on Sunday, adding $63.1 to its previous close.

(Reporting by Urvi Dugar in Bengaluru; Editing by Chris Reese)

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March 19, 2023 0 comments
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Two shot, one dead outside Belmont cigar lounge

by Adam Devine March 19, 2023
By Adam Devine

NEW YORK, NEW YORK – Two men were shot outside a cigar lounge in the Belmont section of the Bronx early Sunday morning.

According to the New York City Police Department, a 911 call reported multiple people shot in the area of 187th Street. When responding officers arrived, they saw no evidence of a shooting at the given address but located two men with gunshot wounds a short distance away.

One victim, a 21-year-old, was shot twice in the chest. EMS treated him before being rushed to Saint Barnabas hospital. He died a short time later while at the hospital.

The second victim, a 22-year-old male, was shot once in the buttocks. He was transported to the hospital and treated for a non-life-threatening gunshot wound. He was listed in stable condition.

Police did not release the name of the deceased victim at this time.

No arrests have been made and no suspects have been identified at this time.

Anyone with information in regard to the whereabouts of this missing person 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 CrimeStoppers website at https://crimestoppers.nypdonline.org/ or on Twitter @NYPDTips.

March 19, 2023 0 comments
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Business News

Bank of England welcomes Credit Suisse deal, says UK banks are safe

by Reuters March 19, 2023
By Reuters

LONDON (Reuters) – The Bank of England welcomed moves by the Swiss authorities to broker a take-over by UBS of Credit Suisse on Sunday, indicating it would support approval of the deal, and it said the British banking system was well funded.

UBS agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and assume up to 5 billion francs ($5.4 billion) in losses in a merger engineered by Swiss authorities.

“We welcome the comprehensive set of actions set out by the Swiss authorities today in order to support financial stability,” the BoE said in a statement, adding it would support international counterparts in implementing the actions.

“The UK banking system is well capitalised and funded, and remains safe and sound.”

London is a major financial centre and both Swiss banks have units based in Britain which are regulated by the Financial Conduct Authority (FCA) and the BoE’s Prudential Regulation Authority (PRA).

The FCA said it was “minded to approve the actions announced today in relation to the entities which fall under its regulatory and supervisory remit.”

The BoE’s statement coincided with similar ones from the European Central Bank and the U.S. Federal Reserve, as well as a statement from Britain’s finance ministry.

“The UK government welcomes the steps taken today by the Swiss authorities in relation to Credit Suisse to support financial stability, and will continue to engage with the FCA and the Bank of England as is usual,” a finance ministry spokesperson said.

British officials have sought to reassure investors about the health of the broader banking system since the collapse of U.S. lender Silicon Valley Bank earlier this month.

($1 = 0.9280 Swiss francs)

(Reporting by Alistair Smout and Huw Jones; Editing by William Schomberg)

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March 19, 2023 0 comments
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UBS chairman wants to keep Credit Suisse’s Swiss unit

by Reuters March 19, 2023
By Reuters

ZURICH (Reuters) – UBS Chairman Colm Kelleher said the bank wants to keep Credit Suisse’s Swiss unit, speaking at a news conference announcing the merger between Switzerland’s two biggest banks on Sunday.

“It is a fine asset that we are very determined to keep and hopefully service their customers and clients as efficiently as Credit Suisse has done,” Kelleher said.

The Chairman of Switzerland’s biggest bank said it “will be running down the investment banking part of Credit Suisse, because UBS itself has an investment bank-like model.”

Kelleher also said it was “too early” to say with regards to job cuts. “We need to do this in a rational way [and] thoughtfully, when we’ve sat down and analysed what we need to do.”

(Reporting by Noele Illien; Editing by Paul Carrel)

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March 19, 2023 0 comments
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Conversation at East Harlem Dunkin escalates to stabbing

by Adam Devine March 19, 2023
By Adam Devine

NEW YORK, NEW YORK – An argument inside an East Harlem Dunkin Donuts escalated into a stabbing incident last Saturday, sending one man to the hospital.

Detectives with the NYPD’s 25th Precinct have released a photo of the attacker and are asking the public to assist in identifying him.

According to police, at around 9 pm, the unidentified suspect approached the 35-year-old male victim and engaged in conversation. That conversation went south when the suspect pulled a knife and stabbed the victim in the neck before fleeing the business down Lexington Avenue.

Conversation at East Harlem Dunkin escalates to stabbing

The victim was removed by EMS to a local hospital to be treated for his injury.

A photo of the individual is attached and available at DCPI.

Anyone with information regarding 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.

March 19, 2023 0 comments
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US and World News

Ruling party sweeps Kazakh parliamentary election, exit polls show

by Reuters March 19, 2023
By Reuters

ALMATY (Reuters) -Kazakhstan voted in a snap parliamentary election on Sunday widely expected to cement President Kassym-Jomart Tokayev’s grip on power and complete a reshuffle of the ruling elite that began after he fully assumed leadership last year.

Exits polls showed the ruling Amanat party winning 53-54% of the vote, enough to retain a comfortable majority. Voter turnout stood at 54.2%, the Central Election Commission said.

A stronger mandate will help Tokayev navigate through regional turmoil caused by Russia’s invasion of Ukraine and the subsequent damage to trade, investment and supply chains throughout the former Soviet Union.

Although he formally became president in 2019, Tokayev, 69, had remained in the shadow of his predecessor and former patron Nursultan Nazarbayev until January 2022, when the two fell out amid an attempted coup and violent unrest.

Tokayev sidelined Nazarbayev, after suppressing political unrest in the oil-rich Central Asian country, and had a number of his associates removed from senior positions in the public sector, some of whom later faced corruption charges.

While Tokayev has reshuffled the government, the lower house of parliament – elected when Nazarbayev still had sweeping powers and led the ruling Nur Otan party – was not due for election until 2026, and the president called a snap vote.

RULING PARTY

Unlike Nazarbayev, Tokayev has chosen not to lead the ruling party, rebranded Amanat, but it is certain to form the core of his support base in the legislature. Five other parties set to win seats also support Tokayev.

However, for the first time in almost two decades, several opposition figures were running as independents, a move which may allow some government critics to win a limited number of seats.

Still, in Almaty, Kazakhstan’s biggest city which usually shows most support for the opposition, voting appeared slow on Sunday amid a heavy police presence on the streets.

“We keep complaining that nothing changes in our country and we ourselves take no part in our country’s political life,” said Yevgeniya, a 36-year-old marketing executive who declined to give her last name or say for whom she voted. “Going out and voting is the least we can do to bring about change.”

Tokayev, who cast his ballot in Astana early in the morning without talking to the press, has said the vote would allow him to start implementing his plan to reform the country and ensure a fairer distribution of its oil wealth.

The completion of political transition is also likely to strengthen Tokayev’s hand in foreign policy. Despite receiving Moscow’s backing during the 2022 unrest, he has refused to support Russia’s invasion of Ukraine or recognise its annexation of some Ukrainian territories.

Astana is trying to maintain good relationships with both Moscow, its neighbour and major trading partner, and the West, which seeks to isolate Russia.

(Reporting by Olzhas Auyezov and Mariya Gordeyeva; Additional reporting by Tamara Vaal in Astana; Editing by William Mallard and David Holmes)

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FDIC to relaunch sale of SVB, moves toward break-up plan -sources

by Reuters March 19, 2023
By Reuters

By David French

(Reuters) – The U.S. Federal Deposit Insurance Corp (FDIC) is planning to relaunch the sale process for Silicon Valley Bank after failing to attract buyers in its latest auction, with the regulator seeking a potential break-up of the failed lender, according to people familiar with the matter.

One of the options under consideration by the regulator is a sale process for the private bank of SVB for which bids are due on Wednesday, according to one of the sources, who requested anonymity as these discussions are confidential.

The private bank, which is housed within SVB’s retail operations, caters to high net-worth individuals.

The FDIC will invite bids for SVB’s depositary bank, which is also part of its retail operations and includes all its consumer deposits, on Friday in a separate auction process, the sources said, cautioning that the plans could change.

The FDIC did not immediately respond to requests for comment. Bids for the whole of SVB were due on Sunday.

The FDIC, which insures deposits and manages receiverships, has previously informed banks mulling offers in the auctions for SVB and Signature Bank that it was considering retaining some of the assets that are underwater at the failed lenders.

Reuters reported earlier on Sunday that the efforts of some U.S. regional banks to raise capital and allay fears about their health are running up against concerns from potential buyers and investors about looming losses in their assets.

Bloomberg News reported on the FDIC’s plans to break up SVB earlier on Sunday.

(Reporting by Rishabh Jaiswal in Bengaluru and David French in New York; Additional reporting by Pete Schroeder in Washington; Editing by Nick Zieminski and Matthew Lewis)

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Buffett’s Berkshire Hathaway speeds up stock buybacks

by Reuters March 19, 2023
By Reuters

By Jonathan Stempel

(Reuters) – Warren Buffett’s Berkshire Hathaway Inc has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year.

In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases.

Berkshire’s repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares.

The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low.

Berkshire’s buybacks follow nearly $60 billion between 2020 and 2022.

They suggest that Buffett and fellow billionaire Vice Chairman Charlie Munger, who handle major capital allocation decisions, still view Berkshire’s stock as undervalued, and repurchases as a prudent use of the company’s cash.

Berkshire ended 2022 with $128.6 billion of cash and equivalents.

The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc and Bank of America Corp. Buffett owns 15.6% of Berkshire’s stock.

In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful “an economic illiterate or a silver-tongued demagogue.”

The comment appeared to criticize the White House and some Democrats who would prefer that companies use available cash to reinvest in their businesses.

Buybacks are subject to a 1% excise tax, which President Joe Biden has proposed quadrupling.

(Reporting by Jonathan Stempel in New York; Editing by Matthew Lewis)

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US and World News

WHO, advisors urge China to release all COVID-related data after new research

by Reuters March 19, 2023
By Reuters

(Reuters) -Advisors to the World Health Organization have urged China to release all information related to the origin of the COVID-19 pandemic after new findings were briefly shared on an international database used to track pathogens.

New sequences of the SARS-CoV-2 virus, as well as additional genomic data based on samples taken from a live animal market in Wuhan, China in 2020 were briefly uploaded to the open access GISAID database by Chinese scientists earlier this year, allowing them to be viewed by researchers in other countries, according to a Saturday statement from the WHO’s Scientific Advisory Group for the Origins of Novel Pathogens (SAGO).

The sequences suggested that raccoon dogs were present in the market and may have also been infected by the coronavirus, providing a new clue in the chain of transmission that eventually reached humans, according to the WHO.

    Access to the information was subsequently restricted “apparently to allow further data updates” by the Chinese Center for Disease Control and Prevention (CDC), the statement added.

    WHO officials discussed the matter with Chinese colleagues, who explained that the new data were intended to be used to update a preprint study from 2022. China’s CDC plans to re-submit the paper to the scientific journal Nature for publication, according to the statement.

    WHO officials say such information, while not conclusive, represents a new lead into the investigation of COVID’s origins and should have been shared immediately.

   “These data do not provide a definitive answer to the question of how the pandemic began, but every piece of data is important in moving us closer to that answer,” WHO Director-General Tedros Adhanom Ghebreyesus said on Friday. “These data could have – and should have – been shared three years ago.”

“We continue to call on China to be transparent in sharing data, and to conduct the necessary investigations and share the results,” he said. 

    SAGO was tasked by the WHO to continue to investigate the origins of the pandemic that has killed nearly 7 million people worldwide.

The Chinese CDC did not immediately respond to the WHO’s latest statement.

‘TOO EARLY’ FOR CONCLUSION

When asked by Reuters why the sequences were not uploaded before, George Gao, professor at the Institute of Microbiology at the Chinese Academy of Sciences and former head of the Chinese CDC, said the data uploaded were “nothing new.”

He added that GISAID, the Munich-based pathogen database, took down the sequences, not the Chinese scientists, and that he was in contact with WHO.

It’s “too early for any conclusion,” he added in an emailed statement. “All this must be left for scientists to work on, NOT for journalists or public. We are eager to know the answer.”

A spokesperson for GISAID said it does not take down data. They said the sequences had been “recalled” and “are currently being updated with newer and additional data as part of a manuscript currently under review”.

The Huanan Seafood Wholesale Market in Wuhan was shut down by Chinese authorities after the novel coronavirus emerged in the city in late 2019. The market has since been a focus of study of whether the virus had infected several other species before jumping to humans.

The WHO and other scientists have also said they cannot rule out the possibility that the virus emerged from a high-security laboratory in Wuhan that studies dangerous pathogens. China denies any such link.

    The 2022 preprint paper said that a small portion of 923 samples collected from the stalls and sewage systems in and around the market tested positive for the virus; no virus was detected in 457 animal samples tested. The paper said initially that raccoon dogs were not among the animals tested.

The new analysis suggests “that raccoon dog and other animals may have been present before the market was cleaned as part of the public health intervention,” the SAGO statement said.

(Reporting by Sneha Bhowmik in Bengaluru and Jennifer Rigby in London; Writing by Michele Gershberg; Editing by Nick Zieminski and Aurora Ellis)

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Two major banks in Europe look to regulators to stem contagion risk

by Reuters March 19, 2023
By Reuters

By Stefania Spezzati and Elisa Martinuzzi

LONDON (Reuters) – At least two major banks in Europe are examining scenarios of contagion in the region’s banking sector and are looking to the Federal Reserve and the ECB for stronger signals of support, two senior executives close to the discussions told Reuters.

The fallout from the crisis of confidence in Credit Suisse Group AG and the failure of two U.S. banks could ripple through the financial system next week, the two executives separately told Reuters on Sunday.

The two banks have held their own internal deliberations on how soon the European Central Bank should weigh in to highlight banks’ resilience, specifically their capital and liquidity positions, the people said.

A focus of these internal discussions is whether such statements might create even more alarm if they are made too soon, the people said.

The executives said their banks and the sector are well capitalised and their liquidity is strong, but they fear the crisis of confidence will sweep up more lenders.

One of the executives said the Federal Reserve might have to move first as the failures of Silicon Valley Bank and Signature Bank in the United States earlier this month triggered the concerns in Europe.

A third executive at another major European bank separately told Reuters they thought the ECB would be reluctant to make a public statement before markets reopen, questioning whether they would judge it necessary at this time and adding that the main focus was still on talks in Switzerland. The ECB declined to comment. The Fed had no comment.

UBS is close to finalizing a deal to buy its rival Credit Suisse, a source familiar with the matter told Reuters on Sunday. The deal is valued at more than $2 billion after UBS increased its offer, the Financial Times earlier reported, with a news conference expected later on Sunday.

A further selloff in banks could erode confidence depositors have in their lenders. Since the U.S. banks’ collapse, savers have been moving funds to bigger lenders in a flight to safety that undermines the sector’s ability to lend.

Former Goldman Sachs CEO Lloyd Blankfein said on Sunday the banking crisis in the United States was going to expedite overall credit tightening and slow the U.S. economy.

In Europe, companies still rely mostly on bank loans to fund their growth, meaning the real economy is more sensitive to banks.

The ECB on Thursday stuck with plans for a half-point rate rise to contain inflation. But it stressed it was monitoring market tensions and would respond as necessary to preserve price stability and financial stability in the currency bloc.

FINANCIAL SYSTEM 

As one of 30 global systemically important banks, Credit Suisse’s problems could affect the entire financial system, industry executives have said.

U.S. and European banking stocks have slid 22% and 17% respectively so far in March, putting them on track for their biggest monthly drops since March 2020 when the COVID-19 crisis rattled markets.

As regulators try to stop the loss of confidence in Credit Suisse before markets reopen on Monday, one source said earlier on Sunday that the talks with UBS were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine, Reuters reported.

The Swiss lender last week became the first global bank to receive an emergency liquidity line since the financial crisis.

In a sign of further strain, a coalition of midsize U.S. banks, Mid-Size Bank Coalition of America (MBCA), has asked regulators to extend FDIC insurance to all deposits for the next two years, Bloomberg News reported on Saturday citing an MBCA letter to regulators.

The letter said that extending insurance will stop the exodus of deposits from smaller banks, in turn helping to stabilise the banking sector, the report said. 

The U.S., UK and Swiss central banks all hold scheduled meetings this week.

Despite still-high inflation, the banking turmoil has forced traders to rapidly re-price expectations for further rate hikes as overly high interest rates can cause a fall in demand for new loans, damaging banks’ profits.

    Markets price in just a 60% chance of a quarter-point rate hike at the Fed’s meeting this week, a sharp turnaround from expectations for a bigger half-point move earlier this month.

(Additional reporting by Balazs Koranyi, Dan Burns and Iain Withers; Writing by Dhara Ranasinghe; Editing by Paritosh Bansal, Barbara Lewis and David Holmes)

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Portugal’s Delta Cafes founder Rui Nabeiro dies at 91

by Reuters March 19, 2023
By Reuters

LISBON (Reuters) – Rui Nabeiro, the founder of Portugal’s largest roasted coffee retailer Delta Cafes and one of the country’s top entrepreneurs, has died at the age of 91, the company said on Sunday.

Nabeiro, who died in a hospital in Lisbon “due to breathing problems”, founded Delta Cafes in his home town of Campo Maior, Alentejo, in 1961, starting with a small warehouse that roasted only 30 kilos of coffee per day.

He always reinvested the profits in innovation to grow his family business and the Delta Cafe now roasts 100 tonnes daily.

The company’s sales, through both retail and foodservice channels, rose 12% to 460 million euros in 2022, with more than 25% exported to around 40 countries.

Nabeiro, a self-made man from a humble background, was a socialist and implemented what he called “solidarity capitalism” in his companies, helping his employees, their families and the community when they were in need.

Economy Minister Antonio Costa Silva, in a statement, said that Nabeiro was a businessman “with a very advanced strategic vision, combining the ability to create wealth with the assumption of social responsibility towards employees and the surrounding community”.

(Reporting by Sergio Goncalves; editing by Barbara Lewis)

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Iraq, OPEC stress need to coordinate to stabilise prices

by Reuters March 19, 2023
By Reuters

CAIRO (Reuters) – Iraq’s Prime Minister Mohammed Shia al-Sudani and OPEC Secretary General Haitham Al Ghais stressed the need to coordinate among oil-exporting nations to ensure prices do not fluctuate and impact both exporter and consumer countries, the Iraqi government said in a statement.

Iraq is one of the founding members of the Organization of the Petroleum Exporting Countries (OPEC).

(Reporting by Omar Abdel-Razek; Editing by Hugh Lawson)

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