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Conservative TimesOpinion - EditorialPolice BlotterPoliticsTop HeadlinesTrending News

A Years-Long Law Enforcement Crisis Is Hindering Homicide-Plagued Portland, Experts Say

by The Daily Caller December 16, 2022
By The Daily Caller
A Years-Long Law Enforcement Crisis Is Hindering Homicide-Plagued Portland, Experts Say

A Years-Long Law Enforcement Crisis Is Hindering Homicide-Plagued Portland, Experts Say

Trevor Schakohl on December 15, 2022

  • Portland, Oregon, has already set a new all-time record for homicides in 2022, following an unprecedented toll in 2021.
  • Local leaders embraced anti-police narratives in 2020, and the local district attorney has failed to prosecute many criminal cases as the city’s police bureau faces an “unprecedented” staffing crisis, according to experts.
  • “Some city leaders’ repeated criticisms of the police have compounded understaffing to dampen morale further in the bureau, resulting in unprecedented struggles to hire and retain qualified officers. While the latest budget restored police funding, it will take time and political will to repair mutual bonds of trust,” Manhattan Institute fellow John Ketcham told the Daily Caller News Foundation. 

Portland is feeling the effects of a years-long law enforcement crisis involving “defund the police” narratives, “unprecedented” police staffing struggles and flawed policymaking, experts told the Daily Caller News Foundation. Meanwhile, the liberal city has set an all-time record for homicides in 2022.

A deadly stabbing became the city’s 91st homicide in 2022, police said, officially surpassing 2021’s record 90-homicide total, according to KGW8. Portland’s city government reduced the Portland Police Bureau’s (PPB) budget in 2020 after it hired too few officers to keep pace with population growth for most of the previous decade, Manhattan Institute fellow John Ketcham told the DCNF.

“A tripling in the annual number of homicides since 2019 —far above the national trend — has further diverted officers from responding to other important calls,” Ketcham said. “Some city leaders’ repeated criticisms of the police have compounded understaffing to dampen morale further in the bureau, resulting in unprecedented struggles to hire and retain qualified officers. While the latest budget restored police funding, it will take time and political will to repair mutual bonds of trust. ” 

The PPB fell to a 30-year-low of 773 sworn members before adding 20 on Sept. 22, the bureau announced, hailing its “first measurable staffing increase in years.” The bureau had officer vacancies as of Dec. 2, according to police staffing data.

There were 38.6% more motor vehicle thefts in Portland from November 2021 through October 2022 than during the previous 12 months, and robberies surged about 28.5%, PPB police data shows.

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Homicides and car thefts tend to indicate broader trends fairly because it’s generally clear when someone has died or a car is gone, Manhattan Institute Policing & Public Safety Research Head Rafael A. Mangual noted.

“Everyone knows that Portland elected officials embraced the ‘defund the police’ narrative in 2020, which has resulted in budget cuts, loss of police officers (to other jurisdictions or retirement), and difficulties in police recruitment,” John Charles, president of the Oregon-based Cascade Policy Institute, told the DCNF. “But it’s not clear how to reverse that, or whether reversing it would actually lead to fewer homicides.”

Protests and riots swept across the country during the late spring and summer of 2020 after a police officer killed George Floyd in Minneapolis, Minnesota. Demonstrations in Portland happened on more than 70 consecutive days, with rioters setting fire to the inside of a police union building on multiple occasions.

Portland City Commissioner Jo Ann Hardesty celebrated in 2020 after the city council voted for the fiscal year 2020-2021 city budget cutting more than $27 million from the police bureau’s purse. Tech business owner Rene Gonzalez defeated her in their November election contest, declaring, “Time to restore Portland!”

Then-City Commissioner Chloe Eudaly voted against the 2020 budget on June 11 of that year and said its proposed police budget cuts were insufficient after activists called for a $50 million budget reduction, according to KGW8. She entered a second “no” vote six days later, saying her main concern the week before had been that the city was failing to shrink its officer staff.

Voters did not re-elect Eudaly that November, OPB reported.

Portland’s crime wave and police staffing crisis have continued as its county’s highest-ranking prosecutor fails to prosecute many criminal cases.

From January to November 21, Multnomah County District Attorney Mike Schmidt’s office prosecuted about 46% of misdemeanor theft cases presented by police, while neighboring Washington and Clackamas counties’ district attorneys’ offices respectively prosecuted 93% and 84% of such cases, KGW8 reported.

“I have no doubt his policies are contributing to the general lawlessness in Portland,” Heritage Foundation legal fellow Zack Smith said.

Schmidt announced in August 2020 that his office would stop charging protestors involved in the George Floyd demonstrations with rioting, interfering with a police officer, disorderly conduct, criminal trespass or misdemeanor harassment unless there was also a single assault, theft or property damage charge.

“Schmidt needs to ensure that there are visible consequences for those who engage in such anti-social behavior, especially for repeat offenders,” Ketcham said. “But he set a poor precedent of not prosecuting the vast majority of destructive protestors arrested in 2020.”

The Portland Police Bureau, Schmidt’s office and Hardesty’s communications director did not respond to the DCNF’s requests for comment.

A Years-Long Law Enforcement Crisis Is Hindering Homicide-Plagued Portland, Experts Say

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected].

December 16, 2022 0 comments
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Conservative TimesOpinion - EditorialPoliticsTop HeadlinesTrending News

‘He Has No Real Credibility’: Steve Forbes Says Fed Chair Powell Will Be ‘Late’ To Fighting ‘Unnecessary Recession’

by The Daily Caller December 16, 2022
By The Daily Caller
‘He Has No Real Credibility’: Steve Forbes Says Fed Chair Powell Will Be ‘Late’ To Fighting ‘Unnecessary Recession’

‘He Has No Real Credibility’: Steve Forbes Says Fed Chair Powell Will Be ‘Late’ To Fighting ‘Unnecessary Recession’

Harold Hutchison on December 15, 2022

Former presidential candidate Steve Forbes lambasted Federal Reserve Chairman Jerome Powell over the economy Thursday, saying Powell would be “late” to addressing an “unnecessary recession.”

“He’s always late. He was late fighting inflation, now he’s going to be late fighting a recession, an unnecessary recession and back in August he talked at Jackson Hole about we’re not – we’ve learned the lessons of 1970s we must conquer inflation,” Forbes said. “Well, you don’t conquer it by trashing the economy. When in early 1980s was not just the recession conquered inflation, it’s what Paul Volcker and Ronald Reagan did after that recession, they stabilized the dollar, better than what they did in the ’70s, they had these great growth measures which the whole world imitated.”

Powell said that inflation would be transitory during an August 2021 speech at Jackson Hole, Wyoming. Powell admitted in December 2021 that inflation ended up lasting longer and being worse than he “expected.”

WATCH:

“Fifty countries cut taxes after we did. So you had a global boom. We boomed, the whole world boomed. Silicon Valley became bywords for cutting-edge technology instead of stagnant politics,” Forbes continued. “You have a situation today where they’re doing just the opposite. It is just so bizarre, so he can go to Capitol Hill, but he has no real credibility because he was cheerleading the spending in 2021.”

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Powell praised the passage of the $1.9 trillion American Rescue Plan in March 2021, Forbes reported, claiming that it prevented the worst of the economic issues stemming from the COVID-19 pandemic.

The Federal Reserve increased interest rates Wednesday, the sixth time the central bank hiked rates at 50 basis points or higher since March. The Dow Jones Industrial Average fell 764.13 points Thursday, an equivalent to 2.25%.

The Consumer Price Index rose 7.1% year-over-year in November, following increases of 7.7% in October, 8.2% in September and 8.3% in August. Some experts, including former Obama administration official Steven Rattner, have said the spending in legislation like the American Rescue Plan President Joe Biden signed into law in March 2021, helped send inflation to levels not seen for decades.

“I’m surprised the stock market’s taken so long to wake up what the Federal Reserve has been doing for months.” Forbes said.

Powell did not immediately respond to a request for comment from the Daily Caller News Foundation.

‘He Has No Real Credibility’: Steve Forbes Says Fed Chair Powell Will Be ‘Late’ To Fighting ‘Unnecessary Recession’

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected].

December 16, 2022 0 comments
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Business News

China says it will step up support for economy in 2023 amid COVID pains

by Reuters December 16, 2022
By Reuters

By Kevin Yao

BEIJING (Reuters) -China will focus on stabilising its $17-trillion economy in 2023 and step up policy adjustments to ensure key targets are hit, said a statement following an agenda-setting meeting, as Beijing scrambles to cushion the impact of a surge in COVID infections.

The closed-door two-day meeting of top leaders and policymakers to chart the economy’s course in 2023 has been watched closely by investors amid expectations that Beijing would ramp up support measures.

The world’s second-largest economy faces multiple headwinds. COVID infections are surging following an abrupt relaxation of harsh restrictions, hitting businesses and consumers, while a weakening global economy hurts Chinese exports.

“The messages from the conference on monetary and fiscal policies do not suggest massive stimulus,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

China will implement a proactive fiscal policy and a prudent monetary policy next year, said the statement, issued after the annual Central Economic Work Conference and published by the official Xinhua news agency.

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Fiscal policy will be stepped up and become more efficient, maintaining the necessary intensity of spending, while monetary policy will be precise and forceful, keeping liquidity reasonably ample, the statement said.

“Next year, we will prioritise stability and strive for progress,” the statement said.

China should better coordinate epidemic prevention and control, and economic and social development, it added.

Policymakers have moved to address two of the key drags on the economy, the zero-COVID policy and a property sector downturn, but analysts believe it will be a while before these efforts bear fruit.

China’s move last week to start aligning with a world that has largely opened up to live with the virus followed historic protests against President Xi Jinping’s signature ‘zero-COVID’ policies.

While the U-turn will bring long-term benefits, surging infections are weighing on a fragile healthcare system.

China’s economy grew just 3% in the first three quarters of this year and is expected to stay around that rate for the full year, well below the official target of around 5.5%.

DOWNWARD PRESSURES

China will take steps to expand domestic demand, prioritise consumption recovery, and achieve major economic targets in 2023, the statement said, adding that the economy faces pressure from shrinking demand, supply shocks and weakening expectations.

“The most important takeaway from the conference is that boosting consumption is the top priority for the government in 2023. This strategy makes sense as consumption is currently growing much slower than it did before the pandemic,” Pinpoint’s Zhang said.

Government advisers told Reuters last month they would recommend the conference adopt 2023 growth targets ranging from 4.5% to 5.5%, while a central bank adviser said last month that China should set a target no lower than 5%.

Since then, proposals that China should aim for growth around 5% have gained steam in the run-up to the meeting.

Although key economic targets are expected to be endorsed at the meeting, they will not be announced publicly until China’s annual parliament meeting, usually held in March.

Top leaders reiterated that China will stick to its principle of “homes are for living in, not for speculation”, and pledged to support strong housing demand, the statement said.

(Reporting by Beijing newsroom; Editing by Edmund Klamann, John Stonestreet and Chizu Nomiyama)

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Breaking NewsPennsylvania NewsPolice Blotter

Five injured including 3-year-old in Penn Hills crash

by Ryan Dickinson December 16, 2022
By Ryan Dickinson

PENN HILLS, PA – Five people were injured, including a 3-year-old child in a crash last night in Penn Hills.

According to police, one woman remains in critical condition.

At approximately 6:50 pm police officers were dispatched to a two vehicle collision in the 10900 block of Frankstown Road.

“The crash involved a Toyota Rav 4 colliding with a Subaru Legacy which was occupied with four adult females and a 3-year-old child,” a spokesperson for the Allegheny County Police Department said today. “They were taken to area hospitals. The child and three females are in stable condition. One adult female is in critical condition.”

One adult female, the only occupant of the Toyota, was not injured. Police are continuing their investigation.

December 16, 2022 0 comments
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Business News

Investment banks ramp up peak rates forecasts after hawkish ECB

by Reuters December 16, 2022
By Reuters

By Alun John

LONDON (Reuters) – A flurry of investment banks raised their forecasts for where euro zone interest rates will peak, after the European Central Bank signalled on Thursday that hikes were far from done.

Morgan Stanley and JPMorgan now expect ECB rates to peak at 3.25%, from 2.5% previously. Goldman Sachs and Deutsche Bank also expect a 3.25% peak, but from 3% previously.

Societe Generale expects an even more aggressive hiking path, predicting euro zone interest rates will go to 3.75%, from 3% previously.

The ECB after its policy meeting on Thursday stressed significant tightening remained ahead to curtail runaway inflation, even as it slowed the pace of rate hikes to 50 basis points from 75 bps at its previous two meetings. President Christine Lagarde suggested 50 basis point hikes could follow for several meetings.

Official projections are for average inflation to reach 8.4% in 2022 before decreasing to 6.3% in 2023, and to remain above the ECB’s 2% target through 2025.

As a result, to secure a majority for Thursday’s rate decision Lagarde had to offer dissenters arguing for a 75 bps hike a pledge that rates will be increased again, potentially as many as three times by 50 bps each, sources told Reuters.

Morgan Stanley analysts said they were revising their expectations because “the commentary from the (ECB’s) Governing Council indicate it is increasingly uncomfortable with the expected pace of the fall in inflation, which is perceived as too slow.”

They said another reason was the ECB’s upbeat assessment of the medium-term growth outlook.

Investment banks ramped up their forecasts alongside money markets. Traders now price in ECB rates peaking at around 3.2%in September, up from around 2.8% on Thursday before the ECB policy meeting.

Germany’s 10-year government bond yield, the benchmark of the euro zone, reached 2.208% on Friday, up nearly 30 basis from Thursday’s intraday low ahead of the meeting.

Southern European bonds sold off even more sharply and Italy’s 10 year bond yield hit 4.417% on Friday, on track for over a 50 basis point weekly rise, which would be its most since March 2020.

(Reporting by Alun John; editing by Yoruk Bahceli and Susan Fenton)

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US and World News

UK’s Sunak hopeful of resolution to Northern Ireland trade row with EU

by Reuters December 16, 2022
By Reuters

BELFAST (Reuters) – British Prime Minister Rishi Sunak said on Friday he was hopeful of reaching a resolution to a long-running dispute with the European Union on changing post-Brexit trade rules for Northern Ireland.

Technical talks resumed in October for the first time in seven months on the Northern Ireland Protocol, the part of the Brexit deal that mandated checks on some goods moving to Northern Ireland from the rest of the United Kingdom.

European Commision President Ursula von der Leyen said earlier this month she was “very confident” a positive conclusion was within reach, but there has so far been no breakthrough in the renewed negotiations.

“The way the protocol is being implemented is threatening Northern Ireland’s place in the union. I want to fix that and that’s what I’m getting engaged constructively with our European partners on and I’m hopeful that we can find resolution,” Sunak told the BBC on his first trip to Northern Ireland as premier.

“I want to make sure that we sit down with our European partners and allies find a way through this, make the reforms that we need to make and then get the (Northern Ireland) executive back up and running.”

The stalemate has held back a normalisation of relations between Britain and the EU and plunged Northern Irish politics into crisis, with the pro-British Democratic Unionist Party (DUP) blocking the functioning of the local assembly and devolved government until the checks are removed.

The Belfast Telegraph newspaper separately quoted Sunak as saying he will not be putting a deadline on the talks.

The protocol was designed to avoid politically contentious checks between Northern Ireland and EU-member Ireland, but many unionists argue the effective border created in the Irish Sea erases part of their British identity.

Both sides say they also want to protect the gains made by the 1998 Good Friday peace agreement that largely ended three decades of sectarian and political bloodshed during which 3,600 people were killed.

Ireland’s foreign minister said last week that the two sides have made progress on sharing real-time customs data relating to the protocol but are “not quite there yet” on an issue that could help unlock an agreement.

(Reporting by Amanda Ferguson, writing by Padraic Halpin; editing by William James and Angus MacSwan)

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Business News

FTX debtors file bidding procedures motion for sale of four businesses

by Reuters December 16, 2022
By Reuters

(Reuters) – FTX and its affiliated debtors said on Friday the company had filed a motion with the Bankruptcy Court seeking approval of bidding procedures to sell four businesses.

Debtors of the bankrupt cryptocurrency exchange intend to conduct auctions for Embed, LedgerX, FTX Japan and FTX Europe businesses, according to the statement.

The move comes after FTX founder Sam Bankman-Fried was arrested on fraud charges on Monday.

FTX filed for bankruptcy protection in Delaware in November after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal. The collapse has left an estimated 1 million creditors facing losses totaling billions of dollars.

On Friday, a group of media companies is set to argue to the U.S. judge overseeing the FTX bankruptcy that they should be allowed to request the collapsed crypto exchange make public the names of its customers.

(Reporting by Noor Zainab Hussain and Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra Eluri)

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Breaking NewsCentral Jersey NewsNew Jersey NewsOcean County NewsPets and Animals

Black bear sighting reported in Holiday City

by Charlie Dwyer December 16, 2022
By Charlie Dwyer

TOMS RIVER, NJ – A Black Bear was seen by several residents in Holiday City West earlier this week on the western edge of the community along the wooded area near the Heritage Minerals site and Crystal Lake area. It was located near the borders of Toms River, Berkeley Township and Manchester.

The bear was also sighted wandering in the community in the area of Torrey Pines Drive on Wednesday.

Bear sightings in Ocean County are relatively uncommon, but they do happen. While the black bears tend to prefer northern New Jersey, populations in the state have increased significantly since Governor Phil Murphy halted the annual bear hunt to cull overpopulation five years ago.

That action pushed bears further south as the population increased. Black bears in New Jersey are now also preparing for their winter hibernation and seeking out food sources as they get ready for a long winter.

This causes them to wander into suburban neighborhoods looking for food.

Residents should give the bears space and avoid confrontations and interactions with them. The bear is most likely just passing through and can travel dozens of miles daily.

Bears are often skittish around people and unprovoked attacks are rare.

December 16, 2022 0 comments
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Business News

U.S. equity funds gain first weekly inflow in four weeks

by Reuters December 16, 2022
By Reuters

(Reuters) – U.S. equity funds saw net purchases in the week ended Dec. 14, as slowing inflation rates raised expectations that the Federal Reserve would cut back the pace of its interest rate hikes.

According to Refinitiv Lipper data, investors bought a net $3.9 billion worth of U.S. equity funds, marking their first weekly net buying since Nov. 16.

Graphic: Fund flows: US equities bonds and money market funds, https://fingfx.thomsonreuters.com/gfx/mkt/klpyggqmbpg/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg Financial sector funds obtained $521 billion worth of inflows after three straight weeks of outflows. Consumer staples and utilities sector funds also saw net purchases of $256 million and $236 million, respectively, while outflows from the tech sector eased to a four-week low of $92 million.

However, the U.S. Federal Reserve announced a half a percentage point interest rate increase on Wednesday and projected more rate hikes next year.

Graphic: Fund flows: US equity sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/dwvkddkjqpm/Fund%20flows%20US%20equity%20sector%20funds.jpg Meanwhile, U.S. bond funds continued to record outflows for a sixth week, with disposals amounting to a net $3.75 billion.

Investors withdrew $2.1 billion from US taxable bond funds, while net selling in U.S. municipal bond funds jumped to a five- week high of $963 million.

Loan participation, inflation-protected, and short/intermediate investment-grade funds lost $1.21 billion, $878 million and $334 million in outflows. Still, government bond funds gained a net $1.92 billion in a sixth successive week of inflow.

Graphic: Fund flows: US bond funds, https://fingfx.thomsonreuters.com/gfx/mkt/zjpqjjnamvx/Fund%20flows%20US%20bond%20funds.jpg

Meanwhile, money market funds drew a net $15.88 billion as inflows continued for the fourth week in a row.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru)

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Russia central bank holds rates, says inflationary factors prevail for now

by Reuters December 16, 2022
By Reuters

By Alexander Marrow

MOSCOW (Reuters) -Russia’s central bank held its key interest rate at 7.5% at its final meeting of the year on Friday but slightly shifted its rhetoric to acknowledge growing inflation risks, saying a recent military mobilisation was adding to labour shortages.

“We gave a neutral signal. This means the next decision, the trajectory of the rate, will depend on the incoming data, on which factors – pro-inflationary or disinflationary – will prevail,” Governor Elvira Nabiullina told a news conference.

“In our opinion, pro-inflationary factors prevail now, not only over the medium-term, but also over a short-term horizon. Therefore, rate changes will depend on incoming data. It is possible to hold the rate, increase it or decrease it – if disinflationary factors are realised, which we believe are weaker right now.”

The Bank of Russia has kept policy on hold since September, after six rate cuts that gradually reversed February’s emergency rate hike to 20%. That action came after Russia sent tens of thousands of troops into Ukraine, prompting Western countries to impose wide-ranging sanctions.

On Friday, as in October, it warned that the partial military mobilisation ordered by President Vladimir Putin in September could stoke inflation due to a shrinking labour force.

Hundreds of thousands of Russians have since joined the army or fled the country.

“Labour shortages are increasing in many industries amid the effects of the partial mobilisation,” the bank said, adding that labour market conditions and logistics problems were limiting economic activity and the capacity to expand production.

Nabiullina said the impact of a Western price cap on Russian oil, introduced this month, was hard to assess, but the bank would consider this at its next meeting in February.

RHETORIC SHIFT

Inflation, which the central bank targets at 4%, stood at 12.65% as of Dec. 12, according to the economy ministry. The central bank’s year-end inflation forecast is 12-13%.

“(The central bank) emphasised that inflation risks have become slightly more skewed to the upside,” said Liam Peach from Capital Economics. “This reinforces our view that the easing cycle is unlikely to resume until around mid-2023.”

With an oil embargo and price cap taking effect, as well as significant increases in budget spending, the central bank’s wait-and-see approach looks sensible, said Azret Guliev of MKB Investments.

“The central bank has for now given a neutral signal to the market,” he said.

The central bank is caught between the need to tackle high inflation, which dents living standards, and stimulating the economy via cheaper credit to counteract the negative effects of sanctions.

Russia’s economy, saddled with subdued consumer demand, falling disposable incomes and labour shortages, is on shaky ground, with mobilisation set to be a significant drag in 2023.

(Reporting by Alexander Marrow; additional reporting by Elena Fabrichnaya and Jake Cordell; Editing by Mark Trevelyan, Arun Koyyur and Catherine Evans)

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Air India jumbo order includes 190 Boeing MAX, 30 787s -sources

by Reuters December 16, 2022
By Reuters

By Tim Hepher and Aditi Shah

LONDON/NEW DELHI (Reuters) – Air India is close to a deal to order more than 200 Boeing jets including 190 narrowbody 737 MAX and 30 widebody 787s – part of an historic fleet shake-up roughly split with Boeing’s European rival Airbus, industry sources said on Friday.

The deal is also expected to include an unspecified number of Boeing 777X long-range jets, they added.

Airbus is separately moving towards a deal with Air India including at least 200 of its A320-family narrowbody jets as well as dozens of larger A350s, industry sources said.

Boeing referred questions to the airline which said it had no immediate comment. Airbus declined comment.

Reuters reported on Sunday that Air India was close to placing orders approaching 500 jets – including 400 narrowbody models – worth tens of billions of dollars from Airbus and Boeing as it seeks a renaissance under the Tata Group.

Industry sources said Airbus is expected to win a slightly larger share of the huge fleet replacement and expansion.

Bloomberg reported on Friday that Boeing was closing in on an order for as many as 200 of its 737 MAX jets.

Experts caution many hurdles stand in the way of Air India’s ambition to recover a strong global position, including frail domestic infrastructure, pilot shortages and the threat of tough competition with established Gulf and other carriers.

(Reporting by Tim Hepher, Aditi Shah; editing by Jason Neely and Mark Potter)

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US and World News

Biden plans to elevate Cindy McCain as executive director of WFP- Axios

by Reuters December 16, 2022
By Reuters

(Reuters) – U.S. President Joe Biden is working to elevate Cindy McCain, widow of the late Republican Senator John McCain, as the executive director of World Food Program, Axios reported on Friday citing people familiar with the matter.

Cindy McCain is currently serving as the U.S. ambassador to the United Nations agencies for food and agriculture.

In addition to McCain, Biden officials have also recommended David Lane, former U.S. ambassador to the WFP for the post, Axios said.

The term of current WFP Executive Director David Beasley, a former Republican governor from South Carolina, is expected to end in April 2023, according to the report.

(Reporting by Jose Joseph in Bengaluru; Editing by Raissa Kasolowsky)

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Faraday Future slides on signaling need for funds to start production

by Reuters December 16, 2022
By Reuters

(Reuters) – Shares of Faraday Future Intelligent Electric tumbled 21% premarket on Friday after the company unveiled production plans for its much-delayed luxury electric car that hinged on securing additional financing.

The company is in talks with new and existing investors to raise the $150 million to $170 million in capital needed to start production in March and deliveries a month later of the FF 91 Futurist, Faraday disclosed on Thursday.

The company is one of the many EV startups struggling to launch its products as a bleak global growth outlook and a funding squeeze dented production schedules and compounded losses.

The Los Angeles-based company’s shares have tanked more than 90% this year and it had $22.5 million in cash as of Nov. 30, down from $31.76 million at the end of the third quarter.

“We’ve implemented a number of cash conservation measures that have significantly reduced our spending to core items that are essential to delivering the FF 91 Futurist,” interim Chief Financial Officer Yun Han said on Thursday.

The company, which said it required investors to approve an increase in the number of shares to secure the financing, is also grappling with top-level changes.

Last month, the board appointed Faraday Future’s China Chief Executive Xuefeng Chen as its global CEO after Carsten Breitfeld was asked to resign.

Meanwhile, the company said the latest generation of its car had longer range and better acceleration than rivals such as Tesla Inc’s Model X, Mercedes Benz Maybach S and Rolls Royce Cullinan.

(Reporting by Akash Sriram in Bengaluru; Editing by Sriraj Kalluvila)

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Three generation family are doing door-to-door carol singing. There is a senior women at the door, appreciating their singing.
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Scrooges call security on holiday carollers inside Manchester senior village

by Jessica Woods December 16, 2022
By Jessica Woods

MANCHESTER TOWNSHIP, NJ – A group of forty-plus holiday carollers took to the streets and blasted out songs of joy and holiday cheer, but it was short-lived Wednesday night. The event was pre-planned and advertised to members of the 55-plus community ahead of time through their homeowner’s association email accounts.

The incident happened at the Renaissance in Manchester.

The plan for the group was to stop at ten locations in the community to spread the Christmas and Hannukah spirit. They never got to finish their route.

During their caroling, complaints from the local Scrooges and Grinches were made to the local security guard at the gated community.

The security guard notified the group of carollers of the complaints from neighbors, but did not order the group to stop singing. Instead, the group made the decision to end the event as to not anger any more residents.

Complaints of a large group of elderly men and women dressed in festive garb, singing holiday songs was too much for some in the community to deal with, so the event ended. The carollers dispersed before finishing their route.

It seems like not everyone in the Renaissance knew it was Christmas time at all.

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Explainer-When are attacks on civilian infrastructure war crimes?

by Reuters December 16, 2022
By Reuters

By Stephanie van den Berg

THE HAGUE (Reuters) – Russia’s attacks on Ukraine’s civilian infrastructure, including energy facilities, have been described as possible war crimes by the office of the United Nations High Commissioner for Human Rights and Amnesty International.

On Friday, Russia launched dozens of missiles across Ukraine knocking out electricity in its second biggest city, hitting critical infrastructure in the south and causing explosions in the capital Kyiv, Ukrainian officials said.

Eight people were also killed and 23 injured by Ukrainian shelling in the Russian-controlled Luhansk region of Ukraine, the Russian-installed administrator of the region said.

Reuters could not immediately verify the battlefield reports.

WHAT DOES INTERNATIONAL LAW SAY?

The Geneva conventions and additional protocols shaped by international courts say that parties involved in a military conflict must distinguish between “civilian objects and military objectives” and that attacks on civilian objects are forbidden.

This prohibition is also codified in the Rome Statute of the International Criminal Court (ICC), which earlier this year opened an investigation into possible war crimes in Ukraine.

That seems clear-cut, but some infrastructure owned and used by civilians can also be a military objective. Military objectives are defined as “those objects which by their nature, location, purpose or use make an effective contribution to military action” and whose destruction or capture “offers a definite military advantage”.

IS ENERGY INFRASTRUCTURE MILITARY OR CIVILIAN?

Power infrastructure has long been considered a valid military objective as long as it supports an enemy army’s activities, even if the system also supports the civilian population, writes military law expert Michael Schmitt in the Articles of War blog run by the Lieber Institute for Law & Warfare at the United States Military Academy West Point.

As Russia’s strikes on the power infrastructure have intensified, it seems increasingly unlikely that its armed forces can name a “definite” military benefit for each attack.

“Simply put, Russian forces are almost certainly striking many targets that do not qualify as military objectives,” Schmitt argues.

Russia says it attacks military targets including energy infrastructure.

HOW ARE MILITARY NEEDS BALANCED AGAINST CIVILIAN?

Even if some of the targets could be considered military objectives, that is not the end of the story, says Katharine Fortin, associate professor of international law at Utrecht University.

    The military must consider whether the damage and loss incurred by civilians in such attacks are excessive compared to the concrete and direct military advantage, she said.

    “In this instance, the incidental loss of life and injury to civilians that can be expected seems very large given that power outages are making it impossible for surgeons to carry on their work, affecting people’s access to healthcare, and creating conditions in which vulnerable people are dying due to the cold or hunger,” she told Reuters.

HOW DO WAR CRIME PROSECUTORS CONSIDER THE CURRENT ATTACKS?

Nigel Povoas, lead prosecutor for a team of international experts assisting Kyiv war crimes investigators, told Reuters that Russian attacks in the past two months have “focused on eliminating infrastructure crucial to the means of civilian survival such as heat, water, power and medical facilities”.

Both Schmitt and Povoas say the scale and the intensity of the attacks can additionally amount to them being considered as “acts or threats of violence the primary purpose of which is to spread terror among the civilian population”.

This is forbidden under international humanitarian law and was confirmed as a war crime by rulings of the U.N. tribunal for the former Yugoslavia relating to the siege of Sarajevo.

(Reporting by Stephanie van den Berg and Anthony Deutsch; Editing by Gareth Jones)

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LyondellBasell raises reduction target for planet-warming emissions

by Reuters December 16, 2022
By Reuters

(Reuters) – Chemicals company LyondellBasell Industries N.V. on Friday increased its greenhouse gas (GHG) reduction target for direct emissions, as well as indirect emissions from purchased energy, to 42% by 2030 from an earlier taget of 30%.

It also established a target to cut all other indirect emissions (Scope 3) by 30% by 2030, from an earlier 2020 baseline.

Companies across the world are under pressure to cut their carbon footprint as activists and scientists warn of rising temperatures and its effect on ecological balance.

Scientists say it is necessary to cap temperature rises to 1.5 degrees Celsius above the pre-industrial average, in line with the Paris Climate Agreement, to avoid global warming’s most severe impacts

Scope 3, which has proven particularly contentious with companies pointing to incomplete data as a hurdle for accurate reporting, captures the bulk of emissions and must be kept in the International Sustainability Standards Board’s global sustainability rules, climate activists say.

With its reduction target of 42% for the other two kind of emissions, LyondellBasell aims to cap GHG emissions at about 13.3 million metric tonnes (mmt) by 2030, from its 2020 baseline of about 22.87 mmt, according to a Reuters calculation.

The Houston-based company, which reiterated by its goal to achieve net zero Scope 1 and 2 GHG emissions from global operations by 2050, said capital expenditures needed to cut planet-warming gases are not expected to represent a significant portion of total capital expenditures over the next three years.

Scope 1 refers to the company’s own direct emissions, while Scope 2 takes into account indirect emissions from purchased energy.

(Reporting by Arshreet Singh; Editing by Nivedita Bhattacharjee)

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ECB’s Centeno sees very low probability of more 75 bps rate hikes

by Reuters December 16, 2022
By Reuters

LISBON (Reuters) -The probability of the European Central Bank returning to 75 basis-point interest rate hikes is now “very low”, ECB Governing Council member Mario Centeno said on Friday, warning of a risk of overreacting to high inflation with excessive tightening.

The ECB eased the pace of its interest rate hikes on Thursday, increasing its key rate by 50 bp to 2%, but stressed significant tightening remained ahead.

“Returning to the 75 bp rise is an event with very low probability…because there is a very obvious approximation to the neutral rate, because of the maturity that the monetary policy already has and the need to be cautious going forward,” he told a news conference.

“In February there is likely to be another 50 basis point rate hike,” Centeno said, referring to the next policy meeting.

He said the range of estimates pointed to a neutral rate “between 1.75% and 2%, a little above 2% but not much above.”

“Every rise in interest rates due to having a restrictive effect must make us think a lot…the risk of overreacting is very great,” he said, noting that the ECB is determined to reduce inflation and that “the decisions will be taken meeting after meeting, dependent on the data available”.

He added that inflation expectations were still anchored and the “predictability of monetary policy will be gained at the time the inflation path reverses.”

(Reporting by Sergio Goncalves, writing by Andrei Khalip, Editing by Raissa Kasolowsky)

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Investors expect BoE to finish raising rates in March: BoE survey

by Reuters December 16, 2022
By Reuters

LONDON (Reuters) -Major financial market participants expect the Bank of England’s interest rate rising cycle to come to an end in March next year, with rates peaking at 4.25%, up from 3.5% now, according to a survey which the central bank published on Friday.

The BoE carried out the survey of 60 major financial companies between Nov. 30 and Dec. 2, before Thursday’s announcement of a half-point rise in interest rates, its ninth hike since beginning to raise rates in December 2021.

The median expectation in the BoE survey is below the peak currently priced into financial markets which see rates peaking at 4.75% in August 2023. This difference may reflect how interest rate futures factor in the risk of an upward surprise in rates, as well as the most likely single outcome.

The BoE said on Thursday that it might need to make further increases in rates to be sure that double-digit inflation returns to target, as labour shortages are pushing up costs for businesses despite an incipient recession.

However, many economists focused on the split vote behind Thursday’s decision. Two policymakers opposed raising rates at all, and only one called for a repeat of November’s three-quarter-point rise.

Consumer price inflation hit a 41-year high of 11.1% in October, and market participants said they expected it to drop to 5.5% in a year’s time, 3% in two years and 2% in three years. – a slower return to target than the BoE has forecast.

Friday’s poll also showed that market participants expected the BoE to stick broadly to the 80 billion-pound ($97 billion)annual pace of reduction of its 830 billion-pound government bond stockpile, which the central bank announced in August.

However, they predict an increase in the pace to 90 billion pound between September 2024 and September 2025.

Ten-year gilt yields were forecast to rise to 3.5% by the end of June next year, before dropping back to 3.0% by the end of next year. Yields are 3.38% now, and were 3.1% just before the survey took place.

Sterling was seen little changed against both the dollar and the euro over the coming year.

($1 = 0.8211 pounds)

(Reporting by David MillikenEditing by William Schomberg)

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Polish fashion retailer LPP has no plans for ‘significant’ job cuts

by Reuters December 16, 2022
By Reuters

By Patrycja Zaras

GDANSK (Reuters) – Poland’s biggest fashion retailer LPP is not planning “significant” job cuts as it reduces costs, finance chief Przemyslaw Lutkiewicz told Reuters.

“Despite the expected slowdown, we are not planning group layoffs or even significant job cuts,” Lutkiewicz said in a statement e-mailed late on Thursday, adding that recent across-the-board cost increases had forced the company to focus on rationalising expenses in all areas of its operations.

During a call with analysts on Thursday, Lutkiewicz noted that third quarter results had shown the retailer’s operating expenses growing faster than sales, up 50% year on year and calling for cost saving measures.

LPP, which operates in nearly 40 countries in Europe, Africa and Asia and manages a network of more than 1,800 stores, is reviewing costs at every level, from better staff management to energy consumption in stores, he said on the call.

Lutkiewicz also said the retailer could cut back on its warehouses and ship more online orders from stores in a bid to reduce logistics costs.

The retailer, which owns brands Reserved, Sinsay and Mohito, reported a 37% year-on-year drop in third quarter net profit to 395.5 million zlotys ($21.64 million), on a 40% increase in revenue to 4.37 billion zlotys.

($1 = 4.4135 zlotys)

(Reporting by Patrycja Zaras, additional reporting by Mateusz Rabiega and Maria Gieldon; Editing by Kirsten Donovan)

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Malaysia campsite landslide kills 21, including children

by Reuters December 16, 2022
By Reuters

By Ebrahim Harris and Rozanna Latiff

BATANG KALI, Malaysia (Reuters) -A landslide killed at least 21 people, including children, while they slept in their tents at an unlicensed campsite in Malaysia on Friday, officials said, as search teams scoured thick mud and downed trees for survivors.

The landslide in Selangor state bordering the capital, Kuala Lumpur, occurred before 3 a.m. (1900 GMT), tearing down a hillside into an organic farm that officials said was operating the campsite illegally.

Among the victims were five children and 12 women, according to the fire and rescue department.

The disaster struck about 50 km (30 miles) north of Kuala Lumpur in Batang Kali, just outside the popular hilltop area of Genting Highlands, known for its resorts, waterfalls and natural beauty.

The earth fell from an estimated height of 30 metres (100 ft) and covered an area of about an acre (0.4 hectares), according to the fire and rescue department’s state director.

The farm owners did not immediately respond to a request for comment. Two of its workers, who are Myanmar nationals, told Reuters they managed to escape with others after being roused by neighbours, just minutes before the farmhouse was destroyed.

“I have never seen such a horrible incident. I feel so shocked and terrified,” said 35-year-old Thawng Uk.

“We could bring nothing at all as we urgently ran … We are asking around where to get shelter and food.”

His colleague Kung Tuang, 31, said he was afraid they would lose their jobs now that the farm had been destroyed.

An initial investigation showed an embankment of about 450,000 cubic metres of earth had collapsed, according to minister of natural resources, environment and climate change, Nik Nazmi Nik Ahmad.

There were 94 people caught in the landslide but 61 were safe, with 12 missing, according to the Malaysia National Disaster Management Agency.

Seven people were injured, including a pregnant woman, while others had wounds ranging from minor cuts to a suspected spinal injury, health minister Zaliha Mustafa said.

Close to 400 personnel were involved in the rescue mission, police said.

Three Singaporeans were among those rescued, the Singapore government said in a statement.

Its prime minister, Lee Hsien Loong, expressed condolences to Malaysian counterpart Anwar Ibrahim and offered assistance in the search and rescue effort.

UNLICENSED BUSINESS

Pictures posted on the Father’s Organic Farm Facebook page show a farmhouse in a small valley, with a large area where tents can be set up.

Its owners were allowed to operate organic farms, but had not applied for licences to run three campsites on the property, Local Government Development Minister Nga Kor Ming told reporters.

If found guilty of violating the law, the owners can be jailed up to three years or fined up to 50,000 ringgit ($11,300), Nga said, adding he had ordered campsites near rivers, hillsides and other high-risk areas nationwide to close for seven days.

Local television footage showed the aftermath of a large landslide through a steep, forested area beside a road, while images on social media showed rescue workers clambering over thick mud, large trees and other debris.

“I pray that the missing victims can be found safely soon,” minister Nik Nazmi tweeted.

Selangor is the country’s most affluent state and has suffered landslides before, often attributed to forest and land clearance.

Landslides are common in Malaysia, but typically only after heavy rains. Flooding occurs often, with about 21,000 people displaced last year by torrential rain in seven states.

Leong Jim Meng, a camper, said he had not expected a landslide as there had been only light drizzle in recent days.

“My family and I were trapped when the soil covered our tent,” he told Malay-language daily Berita Harian. “We managed to run to the parking lot and called the authorities. They arrived quite quickly, about 30 minutes later.”

($1 = 4.4180 ringgit)

(Reporting by Rozanna Latiff, Yantoultra Ngui, Hasnoor Hussein, Ebrahim Harris, Angie Teo and Xinghui Kok; Writing by Lincoln Feast; Editing by Ed Davies, Martin Petty, Gerry Doyle, Nick Macfie and Tomasz Janowski)

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Global equity funds draw first weekly inflow after five weeks

by Reuters December 16, 2022
By Reuters

(Reuters) – Global equity funds attracted their first inflow in six weeks in the week ended Dec. 14, with investors optimistic that easing inflation levels would prompt central banks to scale back the pace of interest rate hikes.

Still, the Federal Reserve raised its benchmark rate by half a percentage point on Wednesday and said it would deliver more rate hikes next year.

According to Refinitiv Lipper data, investors poured a net $1.01 billion into global equity funds in their first weekly net buying since Nov. 2.

Graphic: Fund flows: Global equities, bonds and money market, https://fingfx.thomsonreuters.com/gfx/mkt/klvyggqqbvg/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg U.S. and Asian equity funds drew a net $3.4 billion and $500 million, respectively, in inflows, but investors exited European funds to the tune of about $2.14 billion.

Among equity sector funds, financials, consumer staples, and materials saw net purchases of $559 million, $292 million and $212 million, respectively, but tech witnessed a net outflow of $839 million.

Graphic: Fund flows: Global equity sector funds, https://fingfx.thomsonreuters.com/gfx/mkt/dwpkddkkqvm/Fund%20flows-%20Global%20equity%20sector%20funds.jpg Investors withdrew about $1.53 billion net from global bond funds after a net purchase of $4.96 billion last week.

Short- and mid-term bond funds recorded a 17th straight week of net selling, worth $1.54 billion, but high-yield and government bond funds received net inflows amounting to $4.24 billion and $1.92 billion, respectively. Graphic: Global bond fund flows in the week ended Dec. 14, https://fingfx.thomsonreuters.com/gfx/mkt/xmvjkkbbxpr/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Dec%2014.jpg Money market funds saw a net $12.95 billion outflow after three straight weeks of net purchases.

Data for commodity funds showed energy funds gained about $190 million in an eighth week of net buying but precious metal funds posted a ninth consecutive week of net selling, with outflows of $201 million.

According to data available for 24,687 emerging market (EM) funds, bond funds were in demand for the third week in a row, accumulating $636 million in net buying. Equity funds also received inflows worth $215 million after a weekly outflow. Graphic: Fund flows: EM equities and bonds, https://fingfx.thomsonreuters.com/gfx/mkt/zjvqjjnnmpx/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)

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Alibaba co-founder Joseph Tsai to reduce stake in company- Bloomberg News

by Reuters December 16, 2022
By Reuters

(Reuters) – Alibaba co-founder and executive vice chairman Joseph Tsai has indicated he plans to sell part of his stake in the company through Morgan Stanley, Bloomberg News reported on Friday.

A holding company for Tsai filed this month to sell 3 million of the Chinese firm’s American depositary receipts – which make up roughly 8% of his holding, Bloomberg reported, citing data from The Washington Service – a provider of insider trading data, adding that the document indicated a trading plan.

The stake is worth about $260 million, based on Thursday’s closing price, according to the Bloomberg report.

Alibaba and Morgan Stanley did not immediately respond to requests for comment. The holding company, Blue Pool Capital, could not immediately be reached for comment.

(Reporting by Rahat Sandhu in Bengaluru; Editing by Mark Potter)

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Hungary central bank to keep EU’s highest rate steady as inflation shows no respite

by Reuters December 16, 2022
By Reuters

By Gergely Szakacs

BUDAPEST (Reuters) – Hungary’s central bank is likely to leave its base rate unchanged at 13% next Tuesday, the highest in the European Union, amid a continued rise in inflation now seen at 18.7% next year, more than four percentage points above 2022 levels.

All 17 economists in a Dec. 12-16 survey said the National Bank of Hungary (NBH), which launched a new quick deposit tool at an 18% interest rate in mid-October to shore up the forint, would leave its base rate unchanged next week.

The NBH will also unveil new economic forecasts on Tuesday, which Governor Gyorgy Matolcsy said would show inflation running at 15% to 18% next year.

Inflationary pressures were since compounded after Prime Minister Viktor Orban, under pressure from a supply shortage, scrapped a year-long cap on retail fuel prices.

Economists polled by Reuters see 2023 average inflation at 18.7%, 410 basis points higher than this year, which would be the highest in the EU by far based on the European Commission’s latest economic forecasts.

After a 5% expansion estimated for 2022, economic growth is seen grinding to a halt next year, with a 2.5% recovery projected a year later.

“We now expect inflation to peak at 25%oya (year-on-year) in December,” economists at JP Morgan said in a note. “What happens next is extremely uncertain.”

“The Hungary-specific uncertainty comes from the currency, which is likely to weaken on trend due to a large external financing gap, but could do so aggressively if markets were to lose trust in authorities’ ability to rebalance the economy.”

The forint, central Europe’s worst-performing unit with a 9% loss versus the euro this year, regained some ground after Hungary secured a last-minute deal with the EU to stave off the loss of recovery funding, averting a hit to its currency and bonds.

However, funds are not expected to start flowing until next April, while a surge in Hungary’s energy import bills amid the war in neighbouring Ukraine will put additional pressure on Hungary’s finances.

“We expect the (NBH) to maintain its policy stance, keeping the effective policy rate at 18% until end-1Q23,” Societe Generale economist Marek Drimal said.

“All in all, we believe that the risk environment will not improve sufficiently for the (NBH) to scale back tightening before end-1Q23.”

Economists see average inflation running at 4.8% in 2024, which would mean the NBH missing its 2% to 4% policy target range for the fourth year in a row.

(Reporting by Gergely Szakacs; Editing by Emelia Sithole-Matarise)

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ECB bars policymakers from speculating after backlash, Fed scandals

by Reuters December 16, 2022
By Reuters

FRANKFURT (Reuters) – The European Central Bank has banned its top officials from picking stocks and bonds or making short-term trades after a string of scandals at the Federal Reserve and backlash at home.

Rate setters and bank supervisors at the ECB will no longer be allowed to invest in individual stocks or bonds but only in “broadly diversified” funds and will have to hold those investments for at least one year, from one month previously.

Reuters was first to report last year that 13 out of 25 members of the ECB’s Governing Council had picked their own funds, stocks and bonds – in some cases including government debt the ECB is hoovering up under its stimulus programmes or shares in companies whose debt it buys.

As the ECB has the power to sway financial markets – as it did just this Thursday by signalling its intention to raise rates more than expected – this triggered a backlash from lawmakers, academics and transparency activists.

Some of their suggestions were taken on board by the ECB in its new Code of Conduct, which will come into force on Jan. 1, 2023.

Among other changes, top ECB officials will need to notify the ECB’s Ethics Committee 30 days before making any transaction worth more than 50,000 euros ($53,160).

The ECB’s Ethics Committee is appointed by the Governing Council and currently includes two former members – Patrick Honohan and Erkki Liikanen – and Virginia Canter, previously an ethics adviser to U.S. presidents and the International Monetary Fund.

ECB officials covered by the new rules will also have to disclose all investments carried out in the last calendar year, with the information published yearly on the bank’s website.

Their spouses and minor children will also be expected to report any transaction worth more than 10,000 euros to the ECB though these will not be made public.

The ECB will let top officials keep hold of any existing investment even if it is banned by the new rules, provided that they do not make any further purchases and seek the Ethics Committee’s approval before selling.

Still, the latest disclosures showed that board member Isabel Schnabel, for one, had already offloaded the lengthy list of single stocks she owned.

The Fed has been rattled by a series of trading controversies over the past year that saw three policymakers, including then-deputy chair Richard Clarida step down early.

Over recent weeks, Atlanta Fed President Raphael Bostic also acknowledged that over the last few years he had accidentally broken standards then in place defining permissible investment activity.

($1 = 0.9406 euros)

(Reporting By Francesco Canepa; Editing by Hugh Lawson and Louise Heavens)

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Europe’s car repairers call for competition rules rewrite

by Reuters December 16, 2022
By Reuters

By Nick Carey

LONDON (Reuters) – Europe’s car repair and spare parts industry is calling for a rewrite of EU competition rules, arguing they allow carmakers and franchise dealers to disadvantage independent operators.

The European Commission has recommended extending 2010’s Motor Vehicle Block Exemption Regulation (MVBER) for five years when it expires in 2023, with some supplementary guidelines.

In January, European Union members are due to discuss the future of the rule, which has become another front in a growing struggle for access to and control of car data, as the EU is already working on laws governing access to in-vehicle data.

Proponents of a rewrite say automakers restrict access to vehicle data, which can make repairs more expensive, while also dictating how repairs should be undertaken and with which parts.

“In the last 10 years things have changed dramatically, the rules of the game are no longer the same,” said Alex Gelbcke, chief executive of spare parts provider Fource.

“The regulation deserves an in-depth refresh and if that does not happen we will all suffer,” added Gelbcke, whose company covers the Benelux countries and France. Fource’s parent company LKQ Corp has annual turnover in Europe of around 6 billion euros ($6.4 billion).

Sylvia Gotzen, CEO of the International Federation of Automotive Aftermarket Distributors, which is part of a broader alliance of repair shops and parts makers that employs 3.5 million people in Europe, also called for changes.

“Car manufacturers sit on that data like a chicken on eggs,” she said, adding that this makes carmakers “masters and gate-keepers for the entire repair process”.

A spokesperson for the Commission said its evaluation had shown “there had been no material developments in the last decade that would justify a major revision of the regime.”

“However, the evaluation revealed that an update was necessary to reflect the importance that access to vehicle-generated data is likely to have as a factor of competition.”

The Commission needs to make a decision before the current MVBER expires on May 31, 2023.

The European Automobile Manufacturers Association (ACEA) said it supports the commission’s approach.

“If the Commission has decided not to change the rules, we assume that the complaints made by the independent aftermarket were not sufficiently substantiated,” a spokeswoman said.

Critics also complain automakers have increasingly relied on the use of “captive parts”, which include software coding that often can only be accessed by franchise dealers.

Neil Pattemore, technical director of Britain’s Independent Automotive Aftermarket Federation (IAAF) said to replace headlights on some newer models requires a code, or brake pads have QR codes, but only branded dealers have access to them.

Britain’s Competition & Markets Authority (CMA) has proposed changes to its MVBER that addresses some aftermarket complaints, including using clearer language in vehicle warranties that consumers can use independent repairers without losing benefits.

Major European carmakers including, Stellantis and Renault did not respond to requests for comment.

Volkswagen said the current regulation “is still fit for purpose,” but it also supports the Commission’s approach to supplementary guidelines that would enable access for independent operators to “vehicle-generated data to the extent that such data is essential for repair and maintenance.”

($1 = 0.9422 euros)

(Reporting by Nick Carey; additional reporting by Gilles Guillaume; Editing by Alexander Smith)

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