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US and World News

Cineworld reaches bankruptcy settlement with landlords, lenders

by Reuters October 31, 2022
By Reuters

By Dietrich Knauth

(Reuters) – Movie theater chain Cineworld Group on Monday announced a bankruptcy settlement with its landlords and lenders, clearing the way for the company to borrow an additional $150 million and make a $1 billion debt repayment.

Landlords and junior creditors dropped their opposition to the billion-dollar debt repayment after Cineworld agreed to pay at least $20 million in rent that will accrue after Sept. 30. Britain’s Cineworld, which filed for bankruptcy protection in Texas in September with less than $4 million in cash on hand, previously did not intend to make any post-September rent payments until the end of its bankruptcy.

Cineworld, the world’s second-largest cinema chain operator, also agreed to explore a potential sale of the business and allow creditor input on its business plan.

U.S. Bankruptcy Judge Marvin Isgur in Houston said that the agreement was a “pretty amazing” result given the widespread landlord and creditor opposition to Cineworld’s bankruptcy financing at the start of its Chapter 11 case.

Creditors had filed 15 objections to the loan in court, and the company resolved about a dozen more objections before they were filed, Cineworld attorney Christopher Marcus said in court.

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“This order isn’t perfect but is a very commercially reasonable result,” attorney Robert LeHane, whose landlord clients have leases in 120 locations, told Isgur.

The judge had previously approved part of Cineworld’s bankruptcy financing, allowing it to borrow $785 million at the start of its bankruptcy case while deferring judgment on the $1 billion debt repayment.

Cineworld, which owns Regal Cinemas, operates more than 9,000 screens across 10 countries and employs around 28,000 people. The company cited difficult conditions for movie theaters, as well as high debt stemming from its $3.6 billion purchase of Regal as reasons for its bankruptcy filing.

(Reporting by Dietrich Knauth; Editing by Alexia Garamfalvi and Aurora Ellis)

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October 31, 2022 0 comments
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Proctor HS - Utica
Breaking NewsPennsylvania NewsPhiladelphia NewsPolice BlotterSchools

Police investigating Halloween morning stabbing at Utica high school

by Phil Stilton October 31, 2022
By Phil Stilton

UTICA, NY – Police responded in Utica responded to a stabbing at Proctor High School at around 10:50 a.m. Monday morning.

Prior to arrival, officers were notified of a fight inside the school in a hallway between a 17-year-old student and an 18-year-old student.

Teachers responded to the fight to witness the 17-year-old repeatedly stabbing the victim.

“The teachers took immediate action, without regard for their safety, and attempted to separate the two parties. The teachers grabbed the suspect and forcibly disarmed him, and held him until security staff arrived. The suspect was then immediately removed from the scene and brought to a secure area,” the Utica Police Department said today.

The victim suffered multiple stab wounds to his back and hand, according to police. He was rushed to the hospital, where he was treated for non-life-threatening injuries.

The department said they are investigating the incident.

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“We are aware that there were several student witnesses to the incident, as well as cell phone videos that were taken during the altercation. We ask that if any of those students wish to come forward to with that evidence, to please contact your Assistant Principal or counselor,” the department said in the statement. “Additionally, if any student is traumatized by the incident, please inform the same officials and any and all assistance will be provided to you.”

For the remainder of the week, the Proctor High School campus will remain closed. Students will not be allowed to exit the building during free periods and for lunch. This process will be re-evaluated next week. The Utica Police Department will have an increased presence both within the school building and outside.

October 31, 2022 0 comments
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US and World News

Eli Lilly’s growth tied to nascent diabetes drug sales

by Reuters October 31, 2022
By Reuters

(Reuters) – Wall Street analysts will be focusing on sales of Eli Lilly and Co’s newly approved diabetes drug Mounjaro when the company reports results on Tuesday, as sales of its older drugs come under pressure from increased competition and low pricing.

At least five analysts have raised their price target on the stock in the run-up to earnings on hopes that Mounjaro, which is approved to improve blood sugar levels in diabetics, will get U.S. approval for treating obesity next year.

“We remain bullish on Mounjaro’s sales potential because we anticipate additional U.S. payer coverage this winter,” SVB Securities analyst David David Risinger said in a research note on Monday.

The company’s sales could quickly jump once Lilly gets more insurers to cover its costs, according to Risinger.

Graphic: Mounjaro to become increasingly important for Eli Lilly – https://fingfx.thomsonreuters.com/gfx/mkt/myvmomxawvr/vhrJ0-mounjaro-to-become-increasingly-important-for-eli-lilly.png

CONTEXT

Obesity is the largest chronic health problem in the United States and also leads to many other illnesses such as liver disease and heart issues. Novo Nordisk’s Wegovy is a rival treatment option for obesity.

Analysts expect Mounjaro sales of $81 million in the third quarter, months into its U.S. launch, according to Refinitiv data.

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While that accounts for just a fraction of Lilly’s total sales, revenue from the drug is expected to cross the $1 billion mark next year as it gains approval for obesity and other conditions.

Lilly’s sales are expected to increase to $30.23 billion in 2023, versus reported sales of $24.54 billion in 2021, with Mounjaro expected to bring in $1.34 billion in sales and become the company’s third-biggest selling drug, according to Refinitiv data.

Graphic: Growth trajectory for Eli Lilly’s top drugs – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjkgenypr/SxXdW-growth-trajectory-for-eli-lilly-s-top-drugs.png

THE FUNDAMENTALS

** Q3 sales expected to grow 1.8% to $6.89 billion.

** Analysts expect Q3 profit of $1.96 per share.

WALL STREET SENTIMENT

** 18 of 24 brokerages rate the stock “buy” or higher, and six rate it at “hold”; their median PT is $351.50.

** The stock has risen about 30% this year, outperforming the S&P 500 healthcare index, which is down over 5%.

(Reporting by Manas Mishra in Bengaluru; Editing by Shounak Dasgupta)

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JPMorgan expects banks to repay 500-700 billion euros of ECB TLTRO loans in Nov

by Reuters October 31, 2022
By Reuters

LONDON (Reuters) – Analysts at investment bank JPMorgan have estimated that banks will repay between 500 and 700 billion euros ($494-$692 billion)of the European Central Bank’s ultra cheap funding next month after it tightened up the terms on the loans.

As well as hiking euro zone interest rates last week, the ECB changed the conditions from November of its widely-used long-term loan programme known as TLTRO-III to encourage banks to pay at least some of the money back.

“Putting it all together, we believe that core banks will pay bank in November between 30% and 40% of their borrowings, while peripheral banks will repay only between 10% and 20%, with our call for the total TLTRO payback in November between €500 billion and €700 billion,” JPMorgan’s analysts said.

They based the calculations on the assumption the ECB will hike rates to 2% in December, 2.25% in February and then hold them at that level.

The TLTRO’s original rules would have implied a borrowing cost of around 14 basis points from June 2022 to June 2023, they said.

Under the new rules, the interest rate from June to November this year is around -27bp whereas the average from November to June 2023 is around 220bp, taking the weighted average over that one-year June to June period to be 97bp.

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“This implies an increase in funding cost from June 2022 onwards due to this change to be around 82 basis points,” JPMorgan said.

($1 = 1.0119 euros)

(Reporting by Marc Jones; editing by Barbara Lewis)

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World wine output dips slightly after year of torrid weather

by Reuters October 31, 2022
By Reuters

PARIS (Reuters) – World wine production in 2022 is expected to dip slightly below last year’s level, with a better than anticipated volume in drought-hit Europe mostly offsetting a forecast drop in southern hemisphere output, an intergovernmental wine body said.

In initial projections this year, the International Organisation of Vine and Wine (OIV) pegged world production at between 257.5 million and 262.3 million hectolitres (mhl), with a mid‑range estimate at 259.9 mhl.

That would be around 1% lower compared with an estimated 2021 volume of 262 mhl and below the average of the past 20 years, the OIV said in a note.

A hectolitre is the equivalent of 133 standard wine bottles.

“Overall, in 2022 the dry and hot conditions observed across different regions of the world have led to early harvests and average volumes,” it said. “Nonetheless an overall good quality is expected.”

In Europe, rain at the end of summer helped to limit the impact of drought in Italy and France, the world’s two biggest producers, although heatwaves damaged prospects in Spain, the number three producer.

European Union output was forecast at 157 mhl, up 2% from last year, with the OIV echoing previous projections that anticipated a stable volume in Italy, a sharp rebound in France after a poor 2021 harvest, and a decline in Spain.

For the United States, the world’s fourth-biggest wine producer, the 2022 volume was seen down 4% from last year and 6% under the five-year average, reflecting the effects of frost followed by summer drought and related water scarcity, the OIV said.

Southern hemisphere production was projected to have fallen 7% from a record level in 2021 following less favourable weather, but it would be in line with the five-year average.

The OIV cautioned that it did not have 2022 data for China and Russia, but anticipated a structural decline in Chinese production would continue.

(Reporting by Gus Trompiz; additional reporting by Sybille de La Hamaide; editing by Barbara Lewis)

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In Africa’s monkeypox outbreak, sickness and death go undetected

by Reuters October 31, 2022
By Reuters

By Djaffar al Katanty and Edward McAllister

YALOLIA, Democratic Republic of Congo (Reuters) – At a village clinic in central Congo, separated from the world by a tangle of waterways and forests, six-year-old Angelika Lifafu grips her dress and screams as nurses in protective suits pick at one of hundreds of boils that trouble her delicate skin.

Her uncle, 12-year-old Lisungi Lifafu, sits at the foot of her bed, facing away from the sunlight that pours through the doorway and pains his swollen, weeping eyes. When nurses approach, he raises his chin, but cannot look up.

The children have monkeypox, a disease first detected in Congo 50 years ago, but cases of which have spiked in West and Central Africa since 2019. The illness received little attention until it spread worldwide this year, infecting 77,000 people.

Global health bodies have counted far fewer cases in Africa during the current outbreak than in Europe and the United States, which snapped up the limited number of vaccines this year when the illness arrived at their shores.

But the outbreak, and death toll, in Congo could be much greater than recorded in official statistics, Reuters reporting shows, in large part because testing in underequipped, rural areas is so limited and effective medicines are unavailable.

During a six-day trip to the remote region of Tshopo this month, Reuters reporters found about 20 monkeypox patients, including two who had died, whose cases were not recorded until reporters visited. None of them, including Angelika and Lisungi, had access to vaccines or anti-viral drugs.

The shortage of testing facilities and poor transport links makes tracing the virus nearly impossible, more than a dozen health workers said.

Asked about undercounting, the Africa Centres for Disease Control and Prevention (CDC) acknowledged that its data did not capture the full extent of the outbreak.

In the West, only about 10 people have died of monkeypox this year, figures from the U.S. CDC show. Europe and the United States have been able to vaccinate at-risk communities. Suspected cases are routinely tested, isolated and treated early, which improves survival rates, experts said. Case numbers in Europe and the United States have stabilized and begun to fall.

But in poorer African countries where many people do not have quick access to health facilities, or are not aware of the dangers, over 130 have died, almost all in Congo, according to the Africa CDC.

No monkeypox vaccines are publicly available in Africa.

Without treatment, Angelika and Lisungi can only wait for the illness to run its course. Ahead of them lies a myriad of possible outcomes including recovery, blindness, or, as was the case with a family member in August, death.

“These children have a disease that makes them suffer so much,” said Lisungi’s father Litumbe Lifafu at the clinic in Yalolia, a village of scattered mud huts 1,200 kilometres (750 miles) from the capital Kinshasa.

“We demand the government provides medicines for us poor farmers, and the vaccine to fight this disease.”

HISTORY REPEATS

The World Health Organization last year called out the “moral failure” of the COVID-19 pandemic response, when African nations found themselves at the back of the queue for vaccines, tests and treatment.

But those failures are being repeated a year on with monkeypox, the health workers consulted by Reuters said. This risks future flare-ups of the disease in Africa and globally, experts said.

While the sudden demand from Western countries sucked up available vaccines, poor countries such as Congo, where the disease has existed long enough to be endemic, have been slow to seek supplies from the WHO and partners.

Congo health minister Jean-Jacques Mbungani told Reuters Congo was in talks with the WHO to buy vaccines, but no formal request had been made. A spokesperson for Gavi, the vaccine alliance, said it had not received requests from African countries where the virus was endemic.

A WHO spokeswoman said that in the absence of available vaccines, countries should instead focus on surveillance and contact tracing.

“History repeats itself,” said Professor Dimie Ogoina, president of the independent Nigerian Infectious Diseases Society. Time and again, he said, disease containment in Africa does not get the funding it needs until wealthier nations are at risk.

“It happened with HIV, it happened with Ebola and with COVID-19, and it is happening again with monkeypox.”

Without adequate resources, the true spread of the virus is unknowable, he and other experts said.

“In Africa we are working blind,” said Ogoina. “The case counts are grossly underestimated.”

Monkeypox is spread through close contact with skin lesions. For most, it resolves within weeks. Young children and the immune compromised are especially vulnerableto severe complications.

The Africa CDC says that Congo has had more than 4,000 suspected and confirmed cases and 154 deaths this year, based in part on health authority data. That is far lower than the 27,000-odd cases recorded in the United States and 7,000 in Spain. African nations with outbreaks include Ghana, where there are about 600 suspected and confirmed cases, and Nigeria, where there are nearly 2,000.

“Yes, there is an undercount,” said Ahmed Ogwell Ouma, acting director of the Africa CDC. “The communities where the monkeypox is spreading generally don’t have access to regular health facilities.” He said the CDC could not currently say how big the undercount was.

Congo’s health minister Mbungani said testing capabilities were lacking outside Kinshasa but did not respond to a request for comment about missed cases.

THE FRONT LINE

African countries hoped that the WHO’s decision in July to declare monkeypox a public health emergency of international concern would mobilise resources.

WHO dispatched some 40,000 tests to Africa, including 1,500 to Congo, said Ambrose Talisuna, WHO’s monkeypox incident manager on the continent.

This month, Congo’s National Institute for Biomedical Research began a clinical trial of the antiviral drug tecovirimat on monkeypox patients. While no vaccines are available for public consumption, trials are underway on health workers in Congo with Bavarian Nordic’s Imvanex vaccine, health minister Mbungani said.

But in central Congo, little has changed.

Yalolia, where Angelika and Lisungi are patients, is reachable only by motorbike tracks that thread tunnel-like through the dense jungle, or by canoes carved from felled tree trunks. An old road connecting to nearby villages was cut off years ago when a series of wooden bridges collapsed.

In August, Lisungi’s older brother developed a rash and had trouble breathing. The family thought it was smallpox. When his condition worsened, a doctor put him on an intravenous drip. He died before it was empty.

Grief stricken, Lisungi hugged his brother’s infected corpse. Two weeks later, in early September, he too developed a rash and his eyes swelled shut. Then Angelika fell ill.

Lisumbe took the children to Yalolia where they were diagnosed with monkeypox based on their symptoms. He sold his belongings to buy medicine to reduce their fevers.

The nurses caring for them seethe at the lack of treatments.

“If there is a vaccine, it is us who should have it. If there is a treatment, it is us who should have it,” said nurse Marcel Osekasomba.

None of the cases were reported to authorities until Reuters visited Yalolia with a local health official called Theopiste Maloko. He only went to the village at Reuters’ suggestion.

Without test results, they are now logged as suspected cases.

ISOLATED CASES

Tshopo, nearly as big as the United Kingdom, is heavily wooded and carved up by the Congo River and its many winding tributaries. Maloko’s job is to track cases over an area spanning 5,000 square kilometres. But he cannot afford gasoline and has no means of transport.

When nurses took samples from sores on Angelika’s leg and placed them in a polystyrene cool box strapped to the back of a motorbike, Maloko was sceptical.

To avoid spoiling, samples need to be kept cold and reach a laboratory within 48 hours, but they often do not, he said. The nearest testing lab is in Kinshasa; results take weeks or months.

“We are suffering. This is really our cry of alarm. We are raising our voices so that someone will hear,” he said.

Sometimes samples are not even taken.

The village of Yalanga is a day’s journey from Yalolia by land and boat. Surrounded by jungle, it has no phone network or electricity. When the light fades, patients at the health centre lie in the dark on beds of hard bamboo.

The clinic, a small building with a tin roof and five rooms, has had three cases in recent months. To notify authorities of a new case, nurses must travel half a day to get phone reception. When they are busy, getting away is impossible. The recent cases were recorded weeks late, said nurse Alingo Likaka Manasse.

Lituka Wenda Dety, a 41-year-old mother, thinks she got sick from eating infected bush meat. At the height of her illness in August, her throat was so sore she struggled to swallow her own saliva.

Round scars still dot Dety’s body, and her bones ache. She is grieving. When she was ill in hospital, her six-month-old son caught monkeypox and died. He is buried in a patch of sandy earth beside her mud brick home.

At the end of the day, Dety and her family gather around the small rectangular grave. She whispers prayers.

“We want there to be a vaccination campaign,” she said. “Going by what we have suffered, if many people catch this disease it will be catastrophic.”

(Reporting by Djaffar al Katanty in Tshopo and Edward McAllister in Dakar; Writing by Edward McAllister; additional reporting by James Macharia Chege in Johannesburg and Stanis Bujakera in Kinshasa; Editing by Frank Jack Daniel)

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UAW seeks election to represent GM battery joint venture workers

by Reuters October 31, 2022
By Reuters

By David Shepardson

(Reuters) -The United Auto Workers on Monday said it was seeking an election to represent workers at a General Motors/LG Energy battery cell manufacturing joint venture in Ohio after the companies refused to recognize the union.

The UAW said it had filed a petition with the National Labor Relations Board (NLRB) on behalf of approximately 900 workers at Ultium Cells after a majority of workers had signed cards authorizing the union to represent them.

“By refusing to recognize their majority will, Ultium – which is a joint venture between General Motors and LG Energy Solution – has decided to ignore democracy and delay the recognition process,” UAW President Ray Curry said in a statement.

In August, the Warren, Ohio Ultium plant began production, the first of least four planned U.S. battery factories by the joint venture.

Ultium said it “respects workers’ freedom to choose union representation and the efforts of the UAW to organize battery cell manufacturing workers at our Ohio manufacturing site.”

Ultium added it would comply with federal labor law that “protects our employees’ right to freely decide unionization through a voluntary election conducted by the NLRB.”

Ultium participated in meetings with the union about a process for certifying representation without going through an NLRB election, the UAW said.

GM deferred comment to Ultium. LG Energy did not immediately comment.

In May, President Joe Biden, in a trip to South Korea, expressed support for workers seeking to unionize joint venture battery plants. Detroit’s Big Three automakers all have battery plants in the works with Korean partners.

“For every joint venture that manufactures electric vehicle batteries would be made stronger by collective bargaining relationships with American unions,” Biden said.

South Korea and the Biden administration have sparred over a U.S. decision in August to revise a tax credit making all EVs assembled outside North America immediately ineligible for tax credits, including all current Hyundai GM.N and Kia EVs for sale in the United States.

GM and LG Energy are considering an Indiana site for a fourth U.S. battery plant expected to cost about $2.5 billion. They are already building a $2.6 billion battery cell plant in Michigan, set to open in 2024, and a $2.3 billion Tennessee plant to be completed in 2023.

The White House did not immediately comment on the UAW statement.

(Reporting by David Shepardson; Editing by Mark Porter, Tomasz Janowski and David Gregorio)

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Canada imposes fresh Iran sanctions over human rights violations

by Reuters October 31, 2022
By Reuters

(Reuters) – Canada on Monday imposed fresh sanctions on Iran, marking the fourth package of sanctions it has implemented for alleged human rights violations in that country, the foreign ministry said in a statement.

The latest sanctions target four individuals and two entities, including senior officials and Iran’s Law Enforcement Forces, which Canada accused of participating in the suppression and arrest of unarmed protesters, according to the statement.

“The Iranian people, including women and youths, are risking their lives because they have endured for far too long a regime that has repressed and violated their humanity,” Canadian Foreign Minister Melanie Joly said in a statement.

“Canada will continue to support the Iranian people as they courageously demand a better future,” Joly said.

Canada has been carrying out a series of sanctions against Iran over alleged human rights abuses, including the death of Mahsa Amini, a 22-year-old Iranian Kurdish woman who died while in custody of Iran’s morality police.

(Reporting by Chris Gallagher in Washington; Editing by Lisa Shumaker)

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Mexican president urges Twitter to repair ‘damage’ done to Trump

by Reuters October 31, 2022
By Reuters

MEXICO CITY (Reuters) – Twitter should undo the “damage” done to former U.S. President Donald Trump by the cancellation of his account, Mexico’s president said on Monday, as he expressed hope that new owner Elon Musk would curb censorship on the social media platform.

The remarks by President Andres Manuel Lopez Obrador came just days before U.S. midterm elections in which the Republican Party is forecast to make congressional gains against President Joe Biden’s Democrats.

Speaking at a regular news conference, Lopez Obrador urged Tesla Inc CEO Musk to “repair the damage done by the cancellation of President Trump’s account” and to free Twitter from what he described as “conservative control.”

Lopez Obrador had previously backed Musk’s takeover of Twitter, encouraging him to “clean up” the social network.

In 2021, the Mexican leader also chided Meta Platforms Inc Chief Executive Officer Mark Zuckerberg for blocking Trump on Facebook after the Jan. 6, 2021 storming of the U.S. Capitol by Trump supporters.

Musk completed the $44 billion purchase of Twitter last week and has begun implementing sweeping changes, including sacking top executives and a planned overhaul of content moderation.

Trump said he was “very happy Twitter is now in sane hands,” but has yet to reveal whether he could return to the site.

Trump was banned from Twitter over accusations of inciting violence during the 2021 attack on the U.S. Capitol.

(Reporting by Kylie Madry and Raul Cortes; Editing by Dave Graham and Josie Kao)

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Gap says Russia deliveries stopped in March. But its clothing kept coming

by Reuters October 31, 2022
By Reuters

By Siddharth Cavale, Steve Stecklow and David Gauthier-Villars

NEW YORK/LONDON/ISTANBUL (Reuters) -In March, clothing retailer Gap Inc joined numerous Western companies in announcing that it was halting deliveries to Russia to protest its invasion of Ukraine.

“As a values-led company, one that is proud to do the right thing over the past 53 years in business, at this time, we have also suspended deliveries to Russia, where we have a small franchise presence,” the San Francisco-based company announced in a March 10 message to its employees.

But Russian customs records reviewed by Reuters show that between March 11 and July 16, Gap’s franchisee in Moscow received 1,585 clothing shipments with a declared value of $5.2 million. More than three-quarters of the deliveries list the supplier as Gap Europe Ltd, a London-based unit of Gap Inc.

The Russian customs records are drawn from several commercial providers of trade data and go through Sept. 30. They provide details of Russian imports from customs forms, including suppliers, importers, product descriptions and declared values.

The Gap shipments included everything from “knitted children’s socks” and “children’s pajamas” to “textile blouses for women” and “textile shorts for men.”

Clothing, except for luxury items, generally doesn’t fall under the recent Western sanctions on Russia so as not to punish ordinary citizens. But the post-March 10 shipments appear to contradict Gap’s claim to its employees.

A Gap Inc spokesperson in San Francisco told Reuters in an email on Oct. 19 that “we stopped shipments to Russia as we announced in March and have not resumed.”

Reuters later provided Gap with Russian customs data showing the 1,585 shipments after March 10 to Gap Retail LLC, a Gap franchisee in Moscow. It is operated by Fiba Perakende Grubu, an Istanbul-based retailer that runs all the Gap stores in Russia, Turkey and Ukraine.

On Oct. 28, Gap acknowledged to Reuters that it had continued facilitating deliveries of clothes to Russia until April – a month after it told employees it had suspended all deliveries.

“Because orders are made many months in advance, our franchise partner collected its final order from our distribution center in April. Gap neither shipped nor sold any merchandise to our Russian franchise partner since their final order was processed,” the Gap spokesman said in response to questions posed by Reuters.

Gap didn’t respond to questions about exactly when the orders were placed, when they were fulfilled or why it didn’t cancel outstanding orders after its March 10 announcement.

Asked why the clothing shipments to Russia continued until July, a Fiba Perakende manager said in a statement, “These shipments were delayed due to longer transit times via Turkey, as well as additional handling time at Russian customs.”

But according to the Russian customs records reviewed by Reuters, the vast majority of the clothing shipments make no mention of Turkey as a transit point. Fiba didn’t respond to a question about the discrepancy. ‘SOME ITEMS ARE MISSING’

The Fiba Perakende statement added that “due to Gap Inc’s decision to indefinitely suspend delivery of Gap products to Russia, Fiba is in the process of winding down its Gap franchise business in Russia, upon depletion of any remaining on-hand stock in Russia.”

Along with its e-commerce website, gap.ru, Fiba Perakende said in its statement it had operated 23 stores in three major Russian cities.

Gap Europe disclosed $9.6 million in annual franchise sales for Russia in its last fiscal year, ending Jan. 30, 2021, down from $11.5 million the prior year, according to its annual report and financial statements. Gap Europe’s business has been struggling, and it closed dozens of its company-operated stores last year in the United Kingdom and Ireland. A Gap Europe director didn’t respond to a request for comment about the Russian shipments.

A woman who answered the telephone this week at a Gap store in central Moscow said it remained open. Asked about its clothing selection, she replied, “Yes, we have some choice. Of course, it depends what you are looking for. Some items are missing.”

Russian customs records show more than 1,200 shipments of Gap clothing to Russia between March 11 – the day after Gap Inc’s announcement that it was halting shipments – and June 21. In every case, the supplier was listed as Gap Europe with the Netherlands as the departure country and Russia as the destination – with no mention of Turkey as a transit point. In its most recent annual report, Gap Europe said it was changing its distribution center for its franchise business from the United Kingdom to the Netherlands.

Other shipments to Russia in June and July list the supplier as either “Ankara customs” or another Istanbul company that is linked to Fiba Perakende – suggesting the clothing may have passed through Turkey.

After July 16, the customs records show no shipments to Gap Retail in Moscow, indicating that the apparel flow to Russia had stopped.

Gap’s March statement that it had suspended deliveries to Russia also said it would donate $1 million worth of clothing to Ukrainian refugees. In its latest statement to Reuters, Gap said, “We stand in solidarity with the people of Ukraine.”

(Reporting by Siddharth Cavale in New York, Steve Stecklow in London and David Gauthier-Villars in Istanbul; Editing by Vanessa O’Connell and Chris Sanders)

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Breaking NewsMaryland NewsPolice Blotter

Armed robber takes off with 70 CBD vape cartridges

by Jeff Jones October 31, 2022
By Jeff Jones

GLEN BURNIE, MD – A Glen Burnie Tobacco store was robbed at gunpoint Saturday night. Police said at around 9 pm, a man entered the A to Z Tobacco store at 336 Hospital Drive, and after the clerk put a bag of vape cartridges on the counter, the man showed the clerk his concealed gun.

“The clerk placed a bag containing 70 CBD cartridges on the counter. The suspect lifted his shirt to display a handgun, grabbed the merchandise, and left the store,” poice said in a statement today. “officers searched the area but were unable to locate the suspect.”

Detectives are investigating and ask anyone with information to contact 410-222-4720 or the Tip Line at 410-222-4700.

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US and World News

Italy gets GDP boost as govt pledges action against inflation

by Reuters October 31, 2022
By Reuters

By Gavin Jones and Giuseppe Fonte

ROME (Reuters) -Italy’s economy performed unexpectedly well in the third quarter, data showed on Monday, offering a welcome boost for the country’s new government as it plans extra borrowing to help families and firms cope with surging inflation.

Gross domestic product grew by 0.5% in the third quarter from the second and 2.6% year on year, national statistics bureau ISTAT said.

Both preliminary readings were around half a percentage point higher than expected in Reuters survey of analysts, while the Treasury had said last month it expected a third quarter contraction.

Resilience in the service sector shored up domestic demand, ISTAT said.

Industry contracted and trade flows were a drag on growth, however, and the outlook is clouded by sky-high, energy-driven inflation exacerbated by the war in Ukraine, which has sapped business and consumer confidence, crimped investments and hit families’ spending power.

In his first speech since taking office this month as economy minister in Giorgia Meloni’s nationalist administration, Giancarlo Giorgetti said on Monday the government would cut the budget deficit and huge public debt over coming years, but promised more spending in the near term.

The government plans to raise next year’s budget deficit to 4.5% of GDP, up from the 3.4% projected last month under current trends, a senior official said. This would give Meloni room for expansionary measures worth almost 21 billion euros ($20.8 billion).

Italy will issue new economic and public finance targets at it next cabinet meeting which will probably be on Nov. 4, Meloni told reporters on Monday.

RECESSION COMING?

Giorgetti, from the right-wing League party, noted that Germany and France had already announced “large-scale measures” of economic support to tackle the energy and inflation crises, and said Italy must not be afraid to do the same.

“We are profoundly convinced of the need to protect families, especially the weakest, from the rise in energy bills and the cost of living,” he told a banking conference in Rome.

Meloni took office promising tax cuts and higher pensions at the head of a coalition government formed following national elections on Sept. 25.

GDP in the euro zone’s third largest economy has exceeded expectations in each of the first three quarters of this year, but Unicredit economist Loredana Federico said her bank still expected recession around the turn of the year, with Italy “particularly vulnerable to Europe’s energy crisis.”

Italian inflation hit 12.8% in October, the highest level since the country’s EU-harmonised index was launched in 1996.

Federico said a successful summer for the tourist sector had probably boosted growth between July and September in a country where around 13% of GDP is linked to tourism, and forecast a 0.5% GDP fall in the fourth quarter.

Full year growth this year will come in at 3.7%, Federico forecast, above Rome’s official 3.3% target.

($1 = 1.0112 euros)

(Editing by John Stonestreet)

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Police investigating after body of man found hanging at Manhattan pier

by Adam Devine October 31, 2022
By Adam Devine

NEW YORK, NY – The New York City Police Department is investigating after a resident discovered the body of a man hanging from a tree near Pier 42. Police said the grisly find was reported at around 7:48 pm. A 911 call was made to report the body of a man hanging from a tree limb in an area of the East River Greenway near the pier.

Pier 42 is located on the lower east side of Manhattan along the southern end of the East River.

The NYPD reported today that the death was ruled a suicide. The victim was an unidentified man between the ages of 55 and 65 years old.

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Breaking NewsD.C. NewsPolice Blotter

D.C. Armed Robbers Caught On Camera

by Kristen Harrison-Oneal October 31, 2022
By Kristen Harrison-Oneal

WASHINGTON, D.C. – The Washington, D.C. Metro Police Department is asking for help identifying suspects that were involved in an armed robbery that took place early Friday morning in Northeast D.C.

Nearby surveillance cameras caught the suspects and the vehicle they were driving in. At 1:20 am Friday morning the suspects left that vehicle and approached the victim They displayed handguns, and demanded the victim turn over their personal property and the vehicle the victim was driving. The victim complied. One of the suspects fled the scene in their vehicle, and the other one left in the vehicle they had just stolen.

This incident took place on the 4200 Block of Nannie Helen Burroughs Avenue.

If you have any information about this incident or recognize the suspect or vehicle, please call the police at (202) 727-9099 or text your tip to the Department’s TEXT TIP LINE at 50411.

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NJ 101.5’s Anchor Bill Spadea to visit Jackson Township tonight

by Phil Stilton October 31, 2022
By Phil Stilton

JACKSON, NJ – Bill Spadea is one of those people New Jerseyans either love, or they love to hate. The conservative firebrand is popular in Jackson Township, named one of the Trumpiest towns in New Jersey during the 2016 and 2020 Presidential elections.

Tonight, Spadea will be traveling to Jackson to meet with residents at a public meet and greet hosted by Mayor Michael Reina. Spadea, the founder of the Common Sense Club will be at the Reina for Mayor campaign headquarters in Romeo’s Plaza on Bennetts Mills Road.

Spadea is a special guest of Reina’s between 7 pm and 9 pm.

Reina, who is running with the endorsement of Ocean County Republican leaders and the general membership of the Jackson GOP is being challenged by former Democrat-turned-Republican Marty Flemming and his mixed-party team.

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US and World News

Saudi Arabia approves dual listing of Pizza Hut, KFC franchisee

by Reuters October 31, 2022
By Reuters

DUBAI (Reuters) – Saudi Arabia’s market regulator said on Monday it had approved a concurrent and dual listing of Americana Group, the Middle East and North Africa franchisee of fast-food chains KFC and Pizza Hut, in the kingdom and the United Arab Emirates (UAE).

Americana has approval to sell 30% of its shares, which will be the first to trade in both the UAE and Saudi Arabia.

The Capital Market Authority said the approval was for a dual registration in the two countries and an offering of 2.53 billion shares.

Americana is owned by Saudi Arabia’s Public Investment Fund (PIF) and an investment consortium led by Dubai businessman Mohammed Alabbar, founder of Dubai-listed Emaar Properties.

($1 = 3.7568 riyals)

(Reporting by Hadeel Al Sayegh; Editing by Mark Potter)

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Twitter to lay off 25% of workforce in first round of job cuts – Washington Post

by Reuters October 31, 2022
By Reuters

(Reuters) – Twitter, which was acquired last week by billionaire Elon Musk, plans to let go of a quarter of its workforce as part of what is expected to be a first round of layoffs, the Washington Post reported on Monday, citing a person familiar with the matter.

Celebrity lawyer Alex Spiro, a long-time Musk legal representative, led the conversations about the job cuts, according to the report.

Twitter had over 7,000 employees at the end of 2021, according to a regulatory filing and a quarter of the headcount amounts to nearly 2,000 employees.

Musk denied a New York Times report about laying off Twitter employees at a date earlier than Nov. 1 to avoid stock grants due on the day.

Twitter did not immediately respond to a Reuters request for comment.

Musk fired Twitter Chief Executive Parag Agrawal, Finance Chief Ned Segal and Legal Affairs and Policy Chief Vijaya Gadde on completion of a six-month $44 billion buyout saga of the social media platform on Thursday, sources told Reuters.

(Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)

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US and World News

Ghana president says IMF talks will not lead to a debt haircut

by Reuters October 31, 2022
By Reuters

By Christian Akorlie and Cooper Inveen

ACCRA (Reuters) -Ghanaian President Nana Akufo-Addo on Sunday said talks with the International Monetary Fund were going well and sought to reassure investors that the negotiations would not lead to a reduction in the face value of government bonds.

The president’s speech to the nation sought to reassure Ghanaians and the markets that the government can curb an economic crisis that has forced it to turn to the Fund for financial support.

The talks are “are at advanced stages, and are going well,” Akufo-Addo said.

“No individual or institutional investor … will lose their money as a result of our ongoing IMF negotiations. There will be no haircuts,” he said, denouncing as “false rumours” recent reports of a possible such restructuring.

Ghana launched talks with the IMF in July as foreign investors dumped its debt and street protests broke out over economic turmoil that has seen inflation and currency depreciation hit record levels despite repeated and severe lending rate hikes.

“I cannot find an example in history when so many malevolent forces have come together at the same time,” Akufo-Addo said.

The Ghanaian cedi has plummeted more than 40% this year, straining importers of both raw and processed materials, while consumer inflation hit a new 21-year high of 37.2% in September on the back of soaring import costs.

The president said the government aimed to restore macroeconomic stability within the next three to six years and to cut the debt-to-GDP ratio to 55% by 2028.

“I believe we can and we will find the means to achieve these goals, even if the immediate measures we have to take are painful,” he said.

The IMF estimates Ghana’s debt-to-GDP hitting over 90% by year-end.

(Reporting by Christian Akorlie and Cooper Inveen;Writing by Alessandra Prentice; Editing by Alison Williams, Barbara Lewis and Sandra Maler)

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US and World News

Hong Kong bets on summit to herald its comeback as financial hub

by Reuters October 31, 2022
By Reuters

By Scott Murdoch, Kane Wu and Selena Li

HONG KONG (Reuters) – Hong Kong aims to restore its reputation as a global financial hub by playing host to a bevy of top Wall Street executives this week, defying critics who say a talent crunch and geopolitical tensions will hobble its ambition.

The high-profile summit is the first in almost three years in the city since anti-government protests, the imposition of a sweeping national security law and strict COVID-19 curbs weakened its status as a premier financial centre.

The Global Financial Leaders Investment Summit begins on Wednesday with participants including Goldman Sachs Chief Executive David Solomon, Morgan Stanley boss James Gorman, HSBC’s Noel Quinn and Standard Chartered’s Bill Winters.

Alongside the main theme of “navigating through uncertainty”, the summit is widely expected to focus on Hong Kong’s ambition to remain a global financial centre after almost three years of border controls and pandemic restrictions.

For foreign financial firms operating in China and Hong Kong, however, navigating tensions between the United States and China and a depleting pool of talent in what is touted as “Asia’s world city” will continue to prove challenging, analysts said.

“The Hong Kong government’s overarching goal is clear: to establish the narrative that the city has reopened,” said Chris Beddor, Gavekal Dragonomics’ deputy China research director.

Global banks are playing their cards reasonably well in the face of tougher political environment, he said, though there has been a shift among the expatriate workforce from Hong Kong to other locations, such as Singapore.

“The geopolitical situation has deteriorated rapidly over the past two years or so, and the political environment in China has clearly shifted as well, both of which present hard-to-quantify long-term risks.”

Underscoring the tension, two U.S. lawmakers last week urged top American bankers to cancel their attendance, saying participation would contribute to human rights abuses by China’s government. Beijing rejects accusations of rights abuses.

COVID-19 CONTROLS

The two-day summit, organised by the Hong Kong Monetary Authority (HKMA) – the de-facto central bank – saw at least two high-profile cancellations because of COVID-19.

Blackstone President Jonathan Gray will not attend after testing positive for the virus, and will be replaced by finance chief Michael Chae, a spokesperson said on Monday.

Citigroup CEO Jane Fraser will also not attend due to COVID-19 infection, Reuters reported on Thursday.

An updated programme, necessary because of replacement of a small number of speakers forced to cancel mainly because of “unexpected personal circumstances” will be released on Tuesday, HKMA said in a statement late on Monday.

The city’s Financial Secretary Paul Chan, one of the main speakers, also contracted COVID-19 during a visit to Saudi Arabia , the government said last week. Chan, however, later tested negative and is expected to return to Hong Kong on Tuesday, a government statement said on Monday.

Participants will look for reassurances of a return to pre-pandemic normality, making it easier for them to attract staff to Hong Kong.

HKMA head Eddie Yue told a local newspaper last week the event would send a clear message that “Hong Kong is back”, and it would be the “fireworks which draw the eyeballs of global talent”.

“I totally agree that the conference hopefully can be a very beautiful fireworks display,” said Gary Ng, Hong Kong-based senior economist for Asia Pacific at Natixis. “But it depends on what happens after.”

(Reporting by Scott Murdoch in Sydney and Kane Wu and Selena Li in Hong Kong; Editing by Sumeet Chatterjee, Christopher Cushing, Kirsten Donovan and Tomasz Janowski)

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Department of Justice Press Releases

TWO VENEZUELANS APPREHENDED NEAR ST. CROIX SENTENCED IN CONSPIRACY TO POSSESS COCAINE ON BOARD A VESSEL CASE

by DOJ Press October 31, 2022
By DOJ Press

St. Croix, VI – United States Attorney Delia L. Smith announced today that Francisco Rodriguez-Infante, age 28, and Johnny Rodriguez-Rodriguez, age 30, two of eleven Venezuelan nationals apprehended at sea off the coast of St. Croix, were sentenced on October 27, 2022 to 41 months imprisonment followed by 2 years supervised release by U.S. Judge Wilma Lewis on the charge of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. In addition, they must pay a $100 special assessment fee and are subject to deportation.

According to court documents, on the evening of September 25, 2019, the United States Coast Guard (USCG) Cutter Donald Horsley intercepted a suspicious 55-foot vessel named La Gran Tormenta displaying Venezuelan nationality indicia approximately 38 nautical miles south of St. Croix. Occupants of the La Gran Tormenta failed to respond to USCG’s efforts to engage in questioning of the crew, and upon detection, the La Gran Tormenta changed course and began jettisoning packages. Crew members from the USCG Cutter Donald Horsley subsequently retrieved two bales from the water. The two jettisoned bales contained packages with brick-shaped objects which were subsequently laboratory tested and found to contain approximately 49 kilograms of cocaine hydrocholoride (powder cocaine).

After requesting and receiving permission to stop the vessel from Venezuela, the flag state, USCG personnel attempted a right-of-visit boarding which was ineffective because crew on the La Gran Tormenta disregarded the USCG’s instructions. Eventually, USCG personnel obtained control of the La Gran Tormenta through use of an entanglement tactic which stopped the vessel’s engine. A USCG counter-drug boarding team later encountered 11 persons, including the defendants.

The case was investigated by the U.S. Coast Guard, U.S. Drug Enforcement Administration, and Customs and Border Protection. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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Department of Justice Press Releases

Macon Man Pleads Guilty for Role in AgGeorgia Loan Fraud Scheme

by DOJ Press October 31, 2022
By DOJ Press

MACON, Ga. – A Macon man who participated in a scheme to defraud a community bank pleaded guilty for his role in the conspiracy.

Garland Stephens, 66, of Macon, pleaded guilty to one count of conspiracy to defraud a financial institution before U.S. District Judge Marc Treadwell on Oct. 27. Stephens faces a maximum of 30 years in prison to be followed by five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for Feb. 1, 2023.

“The fraudulent scheme in this case harmed a local business, costing them hundreds of thousands of dollars,” said U.S. Attorney Peter D. Leary. “Protecting citizens and small businesses from fraudsters and ultimately holding them accountable for their criminal actions is a high priority for this office and our law enforcement partners.”

“The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Let this plea and the possibility of 30 years in prison serve as a warning to others to think twice before attempting to steal from the U.S. banking system.”

According to court documents, Stephens was recruited in 2018 by co-conspirator William Spigener, III, 34, of Columbus—an AgGeorgia loan officer at the time—to pretend to be a borrower in order to obtain fraudulent loans from AgGeorgia. Spigener enlisted Stephens and other straw borrowers, and in exchange for using their personal identifying information and appearing at loan closings, he would give them a portion of the loan proceeds, collecting the majority of the money himself. Spigener would create documentation to ensure the loan applications were approved, when in reality, none of these applicants were engaged in any type of farming activity and did not have the income or collateral to support the loans received from AgGeorgia. 

Specifically, Stephens was listed falsely as a farm equipment seller on two approved loan applications. For each of these loans, checks were made out in Stephens’ name and co-conspirator Eary Fuller, 57, of Macon, in June and Oct. 2018. Fuller and Stephens endorsed the loan checks and deposited them. Spigener retained most of the loan proceeds, with some of the money going to Fuller and Stephens.

Stephens then agreed to obtain a fraudulent loan with AgGeorgia in his own name. Spigener used Stephens’ personal information to file the fraudulent loan, and also created and submitted false financial information and farm operating expenses. Stephens was approved for an $85,000 loan.  In reality, Stephens did not have a farm requiring any operating expenses. Stephens was present for the loan closing on Jan. 25, 2019, and collected a $30,000 check, which he signed. The majority of the money was transferred to Spigener. Spigener and other co-conspirators have entered guilty pleas in this case; for more information, please go to: https://www.justice.gov/usao-mdga/pr/former-aggeorgia-loan-officer-sentenced-committing-fraud.

This case was investigated by the FBI.

U.S. Attorney Elizabeth Howard is prosecuting the case.

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Department of Justice Press Releases

New Castle Man Pleads Guilty in Scheme to Distribute Cocaine from Mexico

by DOJ Press October 31, 2022
By DOJ Press

PITTSBURGH – A Lawrence County resident pleaded guilty in federal court to a charge of conspiracy to distribute cocaine and cocaine base, in form commonly known as crack cocaine, United States Attorney Cindy K. Chung announced today.

Quantel Searcy, age 49, formerly of New Castle, Pennsylvania, pleaded guilty on Friday to one count before United States District Judge Marilyn J. Horan.

If this case would have proceeded to trial, the government would have proven that Searcy was part of a cocaine-distribution conspiracy focused on New Castle, Pennsylvania. The conspiracy involved cocaine imported from Mexico into California that the California conspirators mailed to the New Castle area and that Searcy and others then distributed. The evidence that government would have presented included intercepted communications obtained through court authorization, surveillance, controlled purchases from Searcy and other conspirators, search warrants of locations associated with Searcy and various other investigative techniques. The evidence would also have included a seizure of multiple kilograms of cocaine shipped from California to New Castle that law enforcement intercepted in Illinois.

Judge Horan scheduled sentencing for March 1, 2023 The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Brendan T. Conway and Maureen Sheehan-Balchon are prosecuting this case on behalf of the government.

The Drug Enforcement Administration conducted the investigation that led to the prosecution of Searcy, along with the United States Postal Inspection Service, the Criminal Investigation Division of the Internal Revenue Service, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, the New Castle Police Department, and the Illinois State Police.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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Department of Justice Press Releases

Albany Felon Indicted on Drug and Gun Offenses

by DOJ Press October 31, 2022
By DOJ Press

ALBANY, NEW YORK – Emmanuel Medina, age 35, of Albany, was indicted last week for unlawfully possessing a firearm and ammunition, possessing and intending to distribute heroin and fentanyl, and possessing a firearm in furtherance of a drug trafficking crime.

The announcement was made by United States Attorney Carla B. Freedman and Troy Police Chief Daniel DeWolf.

According to an indictment and a previously filed criminal complaint, Troy Police Officers responded to a domestic disturbance call in the early morning of June 27, 2022, and observed Medina outside of a house, placing something into a doorless Jeep Wrangler. Medina was initially not compliant with officers’ directives, but eventually stepped away from the vehicle and was safely detained.

Officers found a loaded Hi-Point Firearms .380 ACP pistol in the part of the Jeep where Medina had just been observed. Medina was prohibited from possessing the handgun and ammunition as a result of prior felony convictions.  Additionally, Troy Police Officers located a black box magnetically  attached to the vehicle’s undercarriage, which was found to contain a mixture of heroin and fentanyl stored in 350 small bags intended for resale. 

The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

Medina has been in custody since his arrest on June 27, and will be arraigned at a later date.  If convicted on all charges, he faces at least 5 years and up to life in prison, and at least 3 years of post-imprisonment supervised release.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

This case is being investigated by the Troy Police Department, with assistance from the U.S. Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and is being prosecuted by Assistant U.S. Attorney Michael Barnett.

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Department of Justice Press Releases

District Woman Sentenced to Four-Year Prison Term for Attacking Neighbor With a Hammer in Southeast Washington

by DOJ Press October 31, 2022
By DOJ Press

            WASHINGTON – Kesha Honesty, 48, of Washington, D.C., has been sentenced to a four-year prison term for assaulting her neighbor with a hammer last spring in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department.

            Honesty pleaded guilty in August 2022, in the Superior Court of the District of Columbia, to assault with a dangerous weapon. She was sentenced on Oct. 25, 2022, by the Honorable Jason Park. Following her prison term, she will be placed on three years of supervised release.

            According to the government’s evidence, on May 21, 2022, at approximately 6:40 p.m., Honesty assaulted the neighbor with a hammer outside an apartment building in the 5100 block of Fitch Street SE. The victim was hospitalized for almost four months and underwent approximately 10 different surgeries and procedures. She is now partially paralyzed on the left side of her body and will require assistance for the remainder of her life.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Victim/Witness Advocate Amy Trotto, and Assistant U.S. Attorneys Randle Wilson, Andrea Antonelli, and Cameron Tepfer, who investigated and prosecuted the matter.

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US and World News

Euro zone October inflation surges amid growth slowdown

by Reuters October 31, 2022
By Reuters

By Jan Strupczewski and Balazs Koranyi

BRUSSELS (Reuters) -Euro zone inflation surged more than expected in October, data showed on Monday, fuelling expectations that the European Central Bank will press on with big interest rate hikes despite economic growth slowing.

Inflation in the 19 countries sharing the euro accelerated to 10.7% in October from 9.9% a month earlier according to Eurostat data, beating expectations in a Reuters poll for 10.2% and way higher than the ECB’s 2% inflation target.

Eurostat also estimated that the euro zone’s gross domestic product, while slowing sharply from the previous quarter, rose 0.2% quarter-on-quarter for a 2.1% year-on-year rise.

Some economists saw that continued growth as creating space for the central bank to keep taking strong inflation-fighting steps.

“Today’s data increase the likelihood that the ECB will raise its key interest rates again by 75 basis points in December,” Commerzbank said in a research note to clients.

The growth is important because many economists believe the ECB would not want to keep raising rates during an expected euro zone recession, heralded by the growth slow-down in the July-September compared with the 0.8% quarterly and 4.3% year-on-year growth in the April-June period.

Some did not exclude that idea, however.

“We continue to forecast a round of 50 bp rate hikes in December, followed by further 25 bp hikes at the subsequent meeting in February,” said Ken Wattret, economist at S&P Global Market Intelligence.

The ECB has raised rates a combined 200 basis points in the past three months and promised more hikes as soon as December.

French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni have both expressed concerns that such tightening policies could intensify the region’s downturn.

After the October data, policymakers are likely to be concerned that underlying price growth, which filters out volatile food and fuel prices, continued to accelerate, pointing to broadening price pressures, which raises the risk that high inflation will get entrenched.

Indeed, inflation excluding unprocessed food and energy accelerated to 6.4% from 6.0%, while an even narrower measure that filters out alcohol and tobacco rose to 5.0% from 4.8%.

The surging inflation and slowing growth are mainly the result of Russia’s invasion of Ukraine and the subsequent disruption of Russian gas deliveries to Europe. That has driven up energy prices and broader inflation, triggered rate rises and lead to a slowing of economic activity and falling confidence.

Germany, Europe’s biggest economy, bucked the wider growth trend in the third quarter with a slight acceleration of quarterly growth to 0.3% from 0.1% in the second quarter, though its economy still decelerated in year-on-year terms.

Belgium, Latvia and Austria all already recorded a quarterly fall in GDP in the July-September period.

(Reporting by Jan Strupczewski and Balazs Koranyi; Editing by Mark John and Hugh Lawson)

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