Shore News Network
  • New Jersey
    • Jersey Shore News
    • South Jersey News
    • Philadelphia News
    • North Jersey News
    • Ocean County News
    • Monmouth County News
    • Cape May County News
    • Atlantic County News
    • Burlington County News
    • Mercer County News
    • Toms River News
    • Jackson Township News
    • Regional
  • New York
    • New York City News
  • MD
  • FL
  • PA
Shore News Network
  • DE
  • OH
  • D.C.
  • VA
  • Topics
    • Crime
      • Most Wanted
      • Fire
    • Weird
    • Politics
    • Weather
    • OMG!
    • Traffic
    • Lottery Results
    • Pets
    • US News
    • Politics
    • Weather Reports
    • Weird and Strange News
    • Good News
    • Viral Videos
    • Pets
    • Business News
    • Tech and Gaming
    • Entertainment
    • Food
    • Health and Wellness
    • Travel
    • Schools
    • Sports
    • Top 10 Lists
    • Viral News
    • The Buzz
    • Satire
US and World News

Trapped and jobless, Gaza youths look for a way out

by Reuters March 23, 2023
By Reuters

By Nidal al-Mughrabi

GAZA (Reuters) – Sabreen Abu Jazar was only hours from completing the perilous journey from Gaza to meet her husband in Europe last month when her migrant boat flipped and sank 100 metres from the Greek coast. Her body was finally returned home this week.

“She phoned me just before travelling and asked me to pray for her,” said her mother, sat in a mourning tent in Rafah in the southern Gaza Strip.

    After leaving Gaza in February, via Egypt, Sabreen flew to Turkey where she met her husband, who had migrated to Belgium years ago. They had planned to meet again in Greece, where he had promised a honeymoon but Sabreen never arrived. Three other brides were on the boat.

On Tuesday, around three weeks after her death, Abu Jazar’s body was brought home for burial in her town of Rafah.

“I celebrated her as a bride, now she’s returned to me in a coffin,” said her mother-in-law Buthayna Abu Jazar. “A wedding turned into mourning.”

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

A rising number of Palestinians are making the perilous crossing to Europe, driven to escape repeated wars and the Israeli and Egyptian blockade that has left Gaza cut off since the Islamist movement Hamas assumed power in 2007.

UN figures show more than 2,700 Palestinians arrived in Greece by sea in 2022, making up 22% of total boat arrivals, the highest of any national group. European Union data from last year also shows a sharp rise in asylum applications by Palestinians in Greece, the main point of entry to Europe.

Not all reach their destination. According to the Euro-Med Human Rights Monitor, more than 378 people have died or gone missing while attempting to migrate from Gaza since 2014. Three have died so far in 2023.

“Sabreen lived her 24 years amid a blockade and a bitter economic situation, and like any girl or a young man she quit Gaza hoping for freedom and a better situation,” her uncle Alaa Abu Jazar said.

POLITICAL FACTIONS

Jobs in Gaza are scarce, for college graduates as well as others, and when a position arises, it often goes to someone with a connection to political factions.

Underlying the crisis is a 16-year-old Israeli-led blockade on Gaza, home to 2.3 million people, coupled with internal political divisions that have weakened Palestinians’ political aspirations for statehood.

Ahmed Al-Deek, an official of the Palestinian Foreign Ministry, urged Palestinians from Gaza and refugee camps in Arab countries to shun illegal trips but said the Israeli-led blockade was the prime reason for Gaza youth leaving for a better future abroad.

Deek also blamed the continued internal divisions between Fatah and Hamas and urged “all officials in Gaza Strip to shoulder their responsibilities and resolve the problem of youth and offer them dignified life.”

Gazans say they are ruled by three governments: the Palestinian Authority of President Mahmoud Abbas, who has limited self-rule in the Israeli-occupied West Bank, and which employs thousands of people in Gaza, the Islamist Hamas group, which runs Gaza, and Israel, the third entity that controls its de facto border.

Mohammad Kuhail, 26, a physiotherapy graduate, tried for six years to find a job in institutions run by Hamas, the United Nations or those affiliated with Abbas’s Fatah movement.

    “If I were from Hamas, they would have hired me,” the 26-year-old said. “Fatah is the same, Fatah cares about Fatah people,” said Kuhail, who whiles away his time in cheap cafes with other unemployed friends.

    Six of his siblings are graduates, two of them engineers, and none of them has ever got a job, he said, leaving the family dependent on his father, a school guard.

FEW JOBS

    According to Palestinian and United Nations estimates, youth unemployment in Gaza runs at about 70%, a figure which makes dreams of building any kind of future out of reach for most young people.

    For its part, Hamas puts the blame for the dire economic situation on the shoulders of Israel, which has fought repeated wars with Gaza’s Islamist rulers Hamas while maintaining its blockade of the enclave.

    “Our problem is the occupation and isn’t an internal problem,” Ehab Al-Ghsain, Hamas-appointed deputy of the Gaza Labour Ministry, told Reuters.

    In an effort to promote security along its Gaza border, Israel offers some 20,000 permits to allow Gazans to work in Israel.

In Gaza, Hamas says a permanent solution for unemployment is beyond its ability alone.

    In 2022, Al-Ghsain’s office created temporary jobs for 9,000 young people, a fraction of the 236,000 looking for work, he said. Even the 40,000 public servants it has hired in Gaza since 2007 have not received their full salaries.

    In the heart of Gaza City, Saeed Lulu, a media graduate stands selling hot drinks to passersby and taxi drivers at a stall he calls “The Graduates stall”. He is the only breadwinner for a family of six.

    “I graduated 16 years ago and so far, I have failed to find a job,” he said.

In that, he is little different from other graduates. Maher Al-Tabbaa, a Gaza economic analyst, said fewer than 10% of around 14,000 students who graduate every year get jobs.

Standing outside Lulu’s cafe, Majd Al-Jamal, 20, a college undergraduate, wondered whether she should complete her studies after seeing three of her siblings failing for years to find a job.

“I don’t have much enthusiasm,” she said. “We already know what is going to happen.”

(This story has been refiled to add detail on Israel offering jobs, more from Hamas in paragraphs 21 and 22)

(Reporting by Nidal Almughrabi; Editing by Christina Fincher)

tagreuters.com2023binary_LYNXMPEJ2L09D-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2L09B-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2L09C-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2L09F-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2L09E-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Breaking NewsNew York City NewsNew York NewsPolice Blotter

NYPD investigating after 16-year-old girl groped on MTA bus

by Adam Devine March 23, 2023
By Adam Devine

NEW YORK, NY – Detectives with the NYPD’s 67th Precinct are investigating after a 16-year-old girl was groped on am MTA bus in Brooklyn’s Flatbush neighborhood.

According to police, last Tuesday, at around 5:45 pm, the 16-year-old female victim was on a B35 bus near Church Avenue and Rogers Avenue when an unknown male individual grabbed the victim’s buttocks.

Police said the suspect left the bus at Church Avenue and Utica Avenue and fled the area. The girl was not physically injured during the incident.

NYPD investigating after 16-year-old girl groped on MTA bus

The suspect was described as a male, with braids, and approximately 5’6” in height. He was last seen wearing a gray overcoat, hooded sweater, black surgical mask, red and white Adidas pants, and white sneakers.

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

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Breaking NewsNew York City NewsNew York NewsPolice Blotter

New video footage gives NYPD closer look at fugitive rapist in Brooklyn

by Adam Devine March 23, 2023
By Adam Devine

NEW YORK, NY – Police in New York City are continuing their search for a man who raped a woman on Saturday. Today, the NYPD released a new photo of the suspect who brutally beat and raped his victim in Brooklyn.

The new photo was taken from surveillance video at El Viejon Bar on 2nd Avenue, the NYPD said.

New video footage gives NYPD closer look at fugitive rapist in Brooklyn

Police in New York are searching for a rapist who attacked a 49-year-old woman who was walking near the Greenwood Cemetery on Saturday.

According to detectives from the 72nd Precinct, at around 3 am, the woman was walking in the vicinity of 27th Street and 5th Avenue when she was approached by an unknown male individual who engaged her in a conversation.

“The individual then pushed the victim to the ground, threatened her, and pulled her into a nearby driveway where he forcibly raped the victim. The individual demanded she performs further sexual acts on him and punched her in the head when she refused,” police reported.

The suspect then fled on foot. The woman was treated at the hospital for multiple injuries.

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

New video footage gives NYPD closer look at fugitive rapist in Brooklyn
Rape suspect, NYC

The suspect is described as a male, medium build, with short dark hair. He was last seen wearing a black bubble coat, black shirt, blue jeans, and white sneakers. 

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

All calls are strictly confidential. 

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Breaking NewsNorth Jersey News

Newark girl, 14, reported missing

by Jessica Woods March 23, 2023
By Jessica Woods

NEWARK, NJ – A 14-year-old girl has been reported missing in Newark. According to police Kaylee Jones has not been seen by her family since last Thursday. Now, police are asking the public to assist in locating the missing juvenile.

According to Newark Department of Public Safety, Fritz Frage, Kaylee, a frequent runaway.

She was last seen at Sussex Avenue wearing a light gray Nike hoodie, dark gray sweat pants, and blue Jordan’s.

She is described as 5’5” tall and 125 pounds, with a light brown complexion, brown hair, and brown eyes. She is known to frequent 47 Grove Terrace in East Orange.

Director Fragé urges anyone with information about the whereabouts of Kaylee Jones to call the Police Division’s 24-hour Crime Stopper tip line at 1-877-NWK-TIPS (1-877-695-8477). 

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Breaking NewsNew Jersey NewsNorth Jersey NewsPolice Blotter

Armed carjacking in Newark sends police on hunt for suspects

by Charlie Dwyer March 23, 2023
By Charlie Dwyer

NEWARK, NJ – Police in Newark are actively searching for two men wanted for an armed carjacking in the city on Tuesday.

Newark Public Safety Director Fritz G. Fragé requests the public’s help in identifying two men who carjacked a woman in the 500 block of South 11th Street.

According to police, at approximately 4 a.m., two black males exited an older model black 4-door sedan with after-market front and rear lights, and approached the woman, taking jer vehicle at gunpoint.

The carjacked vehicle, a blue 2020 Honda CRV, fled northbound on South 11th Street towards 16th Avenue along with the older model black sedan.

One suspect was described as a black male, 5’7” tall with a thin build, and wearing a black hooded sweatshirt, and black face mask. The second suspect was described as a black male with a slim build, wearing a black bubble coat, and black sneakers.

Armed carjacking in Newark sends police on hunt for suspects

Director Fragé urges anyone with information about the identity of these suspects or the location of this vehicle to call the Police Division’s 24-hour Crime Stopper tip line at 1-877-NWK-TIPS (1-877-695-8477). All anonymous Crime Stopper tips are kept confidential and could result in a reward.

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Breaking NewsFeatured NewsNew Jersey NewsOcean County NewsPolice Blotter

Ocean County’s crime unit uses drones, cameras and anti-drone tech

by Phil Stilton March 23, 2023
By Phil Stilton

TOMS RIVER, NJ – Since becoming Sheriff of Ocean County, former Toms River Police Chief Michael Mastronardy has vastly increased the use of technology within the county’s largest law enforcement agency.

One way Sheriff Mastronardy is keeping people safe is by keeping eyes in the sky, and eyes on the sky, and eyes on the ground.

Last night at a meeting in Jackson Township, Mastronardy boasted about the department’s fleet of ariel drones and video surveillance systems that rely on high-tech equipment that allows him to see everything that goes on in Ocean County, sometimes, before it even happens.

Mastronardy demonstrated how the department uses surveillance equipment, a fleet of drones, social media monitoring systems, and anti-drone technology to fight crime in Ocean County. He said his agency now also uses anti-drone technology.

“We have a system that allows us to take over other people’s drones and send them right back to them,” Mastronardy said about securing crime scenes and police operations. “We had a case where a guy had a drone come near where we were, and we sent it right back to him. He was confused. He thought his drone was broken. Our guys watched him with binoculars as his drone flew back to him.”

Mastronardy said the department now has two units capable of returning drones to their owners or even downing them if needed. He says drones flying over crime scenes puts officers in jeopardy.

“We don’t want anyone giving away our positions or letting the bad guys know where we are,” he said.

Mastronardy said his anti-drone technology is the only one employed in the United States by a non-federal agency east of the Mississippi River.

“We’re not really supposed to have them,” he said. “But now we have two.”

The Sheriff’s Department fleet of drones now has 16 surveillance drones, many of which are outfitted with high-resolution and thermal imaging cameras.

Unmanned aircraft equipped with these sensors have proven to be helpful in a variety of situations, including searching for a missing person in a wooded area or over water, fire ground applications, and event situational awareness.

Mastronardy said the anti-drone units are useful in keeping the public safe. He said the department uses the drones to keep ordinary citizens from flying their drones around non-police situations such as events with large crowds.

“We had a situation at the beach where somebody’s drone fell out of the sky and injured a woman,” Mastronardy said. “She needed several stitches. It’s not just about that; who knows what people can drop from these drones so that we can keep them away. We have one in the south and one in the north now.”

When asked today about the legality of a non-federal agency utilizing anti-drone technology, Mastronardy refused to answer questions. According to the FAA, it is illegal for any non-federal agency to operate anti-drone technology. Mastronardy admitted during his presentation that the department has not received any federal authorization to operate anti-drone technology.

In 2020, the Department of Justice issued an advisory to non-federal law enforcement agencies about the legalities and illegalities of using anti-drone technology at the local level.

The Advisory was issued at a time when the commercial demand for UAS detection and mitigation was high, but the authority to use those capabilities is far from clear. 

“To date, Congress has given limited authority to only four federal Departments – Defense, Energy, Justice, and Homeland Security – to engage in UAS (Unmanned Aircraft Systems) detection and mitigation activities, notwithstanding certain otherwise potentially applicable federal criminal laws,” the DOJ said. “The Departments and Agencies issuing the Advisory do not have the authority to approve non-federal public and private use of UAS detection or mitigation capabilities, nor do they conduct legal reviews of commercially available products’ compliance with those laws.”

In addition to drones, Mastronardy routinely deploys “compliance control cameras” around the county. Many can be found in culturally sensitive areas, such as in neighborhoods with high Orthodox Jewish Populations, at busy intersections in places such as Seaside Heights, and for video surveillance of large gatherings and public events.

The mobile surveillance units are trailer mounted with four directional cameras on a retractable monopole.

Last year, the Sheriff’s Department entered into an agreement with CYTTA Corp to employ technology that allows the sheriff and his department to access video feeds from the surveillance trailers, surveillance drones, and other video sources such as traffic cameras, public security cameras from anywhere, even on his phone, while he’s sitting at home. That system allows the sheriff to assess real-time video streams during department operations.

Ocean County became the latest adopter of technology used by agencies like the FBI and Homeland Security called IGAN 2.0, Incent Global Area Network.

The county’s new IGAN 2.0 ICS integrates any available video and audio streams, drones, body cams, fixed cameras, cell phones, and other cameras in the department’s arsenal, enabling real-time situational awareness while providing relevant and detailed actionable intelligence to law enforcement on an ongoing basis.

“IGAN provides law enforcement officers with the data they need to make critical, on-scene decisions,” Mastronardy said. “It will become an indispensable technology that can protect and secure our communities. We look forward to implementing within our department and then connecting all public and private schools, and community organizations, further ensuring the safety and security of Ocean County.”

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
US and World News

Israel ratifies law limiting conditions for a Netanyahu ouster

by Reuters March 23, 2023
By Reuters

By Dan Williams

JERUSALEM (Reuters) – Israel ratified a law on Thursday limiting the circumstances in which a prime minister can be removed, despite worries voiced by a government jurist that it may be meant to shield the incumbent Benjamin Netanyahu from any fallout from his corruption trials.

The amended definition for the “incapacity” of national leaders is among legislative measures by the religious-nationalist coalition that have tipped Israel into crisis, with the opposition arguing that judicial independence is in peril.

The coalition says the overhaul is aimed at pushing back against what it calls Supreme Court over-reach and restoring balance among branches of government.

By a 61-to-47 final vote, the Knesset approved the bill under which prime ministers can be deemed unfit – and compelled to step aside – either if they or three-quarters of cabinet ministers declare them so on physical or psychological grounds.

The stipulations fleshed out a quasi-constitutional “basic law” that provides the government with guidance in the event of a non-functioning prime minister – but which previously lacked details on circumstances that may give rise to such situations.

According to the Israel Democracy Institute think tank, the rule had earlier left Netanyahu vulnerable to a possible assertion of his incapacity by Attorney-General Gali Baharav-Miara, should she perceive an attempt by him to halt his three court cases.

The new law precludes this, IDI senior researcher Amir Fuchs said – while adding that he had considered such a finding by Bararav-Miara to be an unlikely “extreme case”.

Netanyahu denies all charges against him, and has cast the trials as a politicised bid to force him out of office.

Baharav-Miara – who was appointed by the former, centrist Israeli government – said last month that Netanyahu must stay out of his coalition’s push for a judicial overhaul because of what she deemed a conflict of interest arising from his trials.

Baharav-Miara’s deputy, Gil Limon, voiced misgivings over the incapacity bill during a Knesset review session on Tuesday.

“What we see before our eyes is a cluster of legislation elements that are most troubling and are being advanced at great speed,” Limon said, according to an official transcript.

“They have the potential to serve the personal interests of a man regarding the outcomes of legal proceedings he is facing.”

The Movement for Quality Government in Israel filed a Supreme Court appeal against the new law. Should the court rule to overturn the law, that would in itself fuel the feud.

    “Netanyahu and his coalition of corrupt men are trying every possible maneuver in their attempts to escape the threat of justice,” a statement from the watchdog group said.

(Writing by Dan Williams; Editing by Raju Gopalakrishnan and Hugh Lawson)

tagreuters.com2023binary_LYNXMPEJ2M07L-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M07J-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M03J-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M07K-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M07M-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

Central banks stick to rate hikes with eye on market turmoil

by Reuters March 23, 2023
By Reuters

LONDON (Reuters) – Global central banks must juggle the need to control inflation through higher interest rates and to calm markets unnerved by banking sector turmoil that has revived memories of the 2008 global financial crisis.

After the Federal Reserve on Wednesday delivered a modest 25 basis point rate hike, central banks in Switzerland, Norway and Britain all raised rates on Thursday.

Overall, 10 developed economies have raised rates by a combined 3,290 basis points (bp) in this cycle to date.

    Japan is the holdout dove. 

    Here’s a look at where policymakers stand, from hawkish to dovish.    

(Graphic: The race to raise rates – https://www.reuters.com/graphics/GLOBAL-MARKETS/lbvggjjagvq/chart.png)

1) UNITED STATES

The Fed raised rates by a quarter point on Wednesday, continuing its most aggressive series of hikes since the 1980s. It also calmed markets thrown in to turmoil by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank and by UBS’ takeover of rival Credit Suisse.

After setting its policy rate to 4.75%-5.00%, the Fed hinted it may soon pause rate rises.

Chair Jerome Powell said there were “not weaknesses that are running broadly through the banking system.”

(Graphic: Fed delivers small rate hike – https://www.reuters.com/graphics/GLOBAL-MARKETS/zgpobajllvd/chart.png)

2) NEW ZEALAND

The Reserve Bank of New Zealand (RBNZ) has slowed its tightening pace, raising rates by 50 bps to a 14-year high of 4.75% in February.

Meeting minutes showed officials had considered a 75 bps hike. The RBNZ also held its peak rate forecast at 5.5%, saying that it was too early to assess policy implications from severe flooding in January.

(Graphic: New Zealand’s rate hikes – https://www.reuters.com/graphics/NEWZEALAND-ECONOMY/dwvkdkdggpm/chart.png)

3) CANADA

The Bank of Canada on March 8 became the first major central bank to halt monetary tightening during this cycle.

It held its key overnight interest rate at 4.50% with the aim to hold there as long as inflation drops to 3% at about mid-year.

(Graphic: Bank of Canada holds its key rate – https://www.reuters.com/graphics/CANADA-CENBANK/akveqeqzjvr/chart.png)

4) BRITAIN

The Bank of England raised rates by a further 25 bps on Thursday and said it expects the surge in British inflation to cool faster than before, despite a surprise jump announced on Wednesday.

It noted “large and volatile moves” in financial markets globally caused by the banking turmoil but said its Financial Policy Committee judged that Britain’s banking system remained resilient.

(Graphic: BoE’s inflation fight continues – https://www.reuters.com/graphics/BRITAIN-BOE/mopakwyzqpa/chart.png)

5) AUSTRALIA

Australia’s central bank raised its key rate by a quarter point to 3.6% in March, the highest since May 2012, but hinted rate hikes may be over for now.

Governor Philip Lowe has said monetary policy was “in restrictive territory” and said the bank’s board was ready to react if data supported a pause.

(Graphic: Taming inflation – https://www.reuters.com/graphics/GLOBAL-MARKETS/THEMES/lbpgglyzypq/chart.png)

6) NORWAY

Norway’s central bank hiked rates by 25 basis points to 3% on Thursday and signalled more would come.

The Norges Bank upped its rates forecasts and said it would likely hike rates again in May and also after that to hit 3.5% by the summer, given signs that economic slowdown will be less pronounced than previously expected.

(Graphic: Norway’s rate hiked – https://www.reuters.com/graphics/GLOBAL-CENTRALBANKS/movakwydyva/chart.png)

7) EURO ZONE

The ECB raised its deposit rate by another 50 bps to 3% on March 16, the highest since October 2008 and its sixth successive hike this cycle.

Investors see rates peaking at around 3.5%, despite concerns about the euro zone economy arising from tighter credit conditions as troubles at Credit Suisse and U.S. banks potentially make lenders more cautious.

“We have to tame inflation” in a “bold and decisive” manner, Bundesbank President Joachim Nagel, an influential hawk on the ECB’s governing council, said on Wednesday.

(Graphic: ECB sticks to big hike ECB sticks to big hike – https://www.reuters.com/graphics/GLOBAL-CENTRALBANKS/gdvzqkyzbpw/chart.png)

8) SWEDEN

The Riksbank raised rates by 50 bps in February to 3% and signalled more tightening is coming. Its next decision is on April 26.

Inflation was red-hot in February, with the underlying rate, stripping out volatile energy prices, jumping to 9.3%, the fastest pace since July 1991.

(Graphic: Further Riksbank hikes expected amid record inflation – https://www.reuters.com/graphics/GLOBAL-CENTRALBANKS/xmvjkbkogpr/chart.png)

9) SWITZERLAND

The Swiss National Bank raised its main interest rate by 50 basis points on Thursday to 1.5% and said UBS’s emergency takeover of Credit Suisse had “put a halt to the crisis”.

With inflation running at 3.4% in February, well above the above the SNB’s target band of 0% to 2%, the central bank chose to press on despite the banking turmoil with its fourth increase in a row.

The SNB also signalled that additional hikes could not be ruled out.

(Graphic: Swiss National Bank raises rates – https://www.reuters.com/graphics/CEN-WRAP/klpygqmjkpg/chart.png)

10) JAPAN

The Bank of Japan, the most dovish major central bank, maintained ultra-low interest rates at its March meeting, the final one for retiring BOJ governor Haruhiko Kuroda.

The BOJ resisted changing its yield curve control policy, which it uses to cap interest rates on longer-term debt. Investors expect Kuroda’s successor Kazuo Ueda to phase the programme out, maybe as soon as this year, as inflation exceeds the BOJ’s 2% target.

(Graphic: BOJ under fire – https://www.reuters.com/graphics/JAPAN-ECONOMY/BOJ/byvrlmxeyve/chart.png)

(Reporting by Yoruk Bahceli, Samuel Indyk, Nell Mackenzie, Dhara Ranasinghe, Alun John, Naomi Rovnick, Harry Robertson and Chiara Elisei; Graphics by Vincent Flasseur, Sumanta Sen and Pasit Kongkunakornkul and Riddhima Talwani; Editing by Barbara Lewis)

tagreuters.com2023binary_LYNXMPEJ2M0IF-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M0IG-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

US current account deficit narrows in fourth quarter

by Reuters March 23, 2023
By Reuters

WASHINGTON (Reuters) – The U.S. current account deficit narrowed in the fourth quarter amid an improvement in secondary income receipts as well as an increase in the services surplus, data showed on Thursday.

The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 5.6% to $206.8 billion last quarter.

The current account gap represented 3.2% of gross domestic product, the smallest share since the second quarter of 2020 and down from 3.4% in the third quarter. The deficit peaked at 6.3% of GDP in the fourth quarter of 2005.

For all of 2022, the current account gap widened to a record $943.8 billion, down from $846.4 billion in 2021. It represented 3.7% of GDP, the highest share since 2008, from 3.6% in 2021.

The United States is now a net exporter of crude oil and fuel. Though the deficit remains wide, it has no impact on the dollar given its status as the reserve currency.

Exports of goods fell $31.1 billion to $514.9 billion, weighed down by decreases in petroleum products, natural gas, nonmonetary gold.

Imports of goods also dropped $28.0 billion to $787.2 billion, reflecting decreases in industrial supplies and materials, mainly petroleum products, and in consumer goods such as cell phones, apparel, footwear and household goods.

Imports have slowed as businesses assess their inventory needs amid cooling domestic demand against the backdrop of the Federal Reserve’s aggressive interest rate increases. A smaller trade deficit has helped to boost economic growth for three straight quarters.

Exports of services increased $6.1 billion to $242.8 billion, boosted by increases in personal travel, financial intermediation services, credit card and other credit-related services, as well as air passenger transport.

Imports of services increased $1.1 billion to $175.5 billion, reflecting a rise in personal travel that was partly offset by a decrease in sea freight transport.

Secondary income receipts increased $8.3 billion to $51.3 billion, lifted by a rise in general government transfers, mainly fines and penalties. Payments of secondary income fell $4.5 billion to $92.4 billion, pulled down by a decline in general government transfers, mostly international cooperation.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

tagreuters.com2023binary_LYNXMPEJ2M0IA-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

U.S. new-vehicle sales to rise in March on strong demand for cars and trucks

by Reuters March 23, 2023
By Reuters

(Reuters) – Sales of new vehicles in the U.S are expected to go up in March, riding on pent-up demand for cars and trucks, a report from industry consultants J.D. Power-LMC Automotive showed on Thursday.

Total new-vehicle sales for the month, including retail and non-retail transactions, are projected to reach 1.33 million units, a 6.2% increase from March 2022, according to the report.

A preference for personal transport has powered the auto industry’s sales over the past year but there have been some indications of late that demand may be losing steam. 

General Motors Co last month said it would idle an Indiana assembly plant that builds Chevrolet Silverado and GMC Sierra pickup trucks for two weeks starting March 27 to maintain “optimal inventory levels” at its dealerships.

“…while there are some warning signs in the banking industry and with the general economy, the outlook for global vehicle sales has been increased by 200,000 from a month ago to 86.1 million units, up 6.2% from 2022,” Jeff Schuster, president, global forecasts at LMC Automotive said.

“Supply disruption is expected to continue to ease..,” he added.

Retail sales of new vehicles are expected to reach 1.09 million units in March, a 1.9% increase from last year.

Availability of new vehicles at retailers is improving, but overall the industry remains supply constrained helping keep profitability well above historical norms, the report said.

New-vehicle prices continue to rise, with the average price reaching $45,818 in March, a 3.5% increase from a year ago.

For 2023, the consultants said global light-vehicle sales is expected to increase by 6.2% to 86.1 million units.

(Reporting by Kannaki Deka in Bengaluru; Editing by Nivedita Bhattacharjee)

tagreuters.com2023binary_LYNXMPEJ2M0HV-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

U.S. Senate panel calls on SVB, Signature Bank ex-CEOs to testify

by Reuters March 23, 2023
By Reuters

WASHINGTON (Reuters) – The U.S. Senate Banking Committee on Thursday called on the former chief executives of Silicon Vally Bank (SVB) and Signature Bank to testify as lawmakers weigh possible action after the banks’ failures triggered market turmoil.

“You must answer for the bank’s downfall,” the panel’s Democratic chairman and ranking Republican wrote in separate letters to former Silicon Valley Bank Chief Executive Gregory Becker and former Signature Bank CEO Joseph DePaolo.

Senator Sherrod Brown, the panel’s Democratic chairman, and Senator Tim Scott, its top Republican, asked the former bank chiefs to testify at the hearing Tuesday with federal regulators or at a future date.

Representatives for Becker and DePaolo as well as the banks could not be immediately reached for comment.

The Senate panel on Monday announced the first in a series of hearings following the banks’ collapse. The U.S. House of Representatives financial Services Committee is scheduled to hold a separate hearing March 29.

(Reporting by Susan Heavey; editing by Jason Neely and Doina Chiacu)

tagreuters.com2023binary_LYNXMPEJ2M0HS-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
US and World News

Indian court orders Rahul Gandhi to two years in jail for Modi comment

by Reuters March 23, 2023
By Reuters

By Sumit Khanna and Arpan Chaturvedi

AHMEDABAD, India (Reuters) -A lower court in India sentenced opposition leader Rahul Gandhi on Thursday to two years in jail on charges of defamation for a 2019 speech in which he referred to thieves as having the surname Modi.

Gandhi will appeal against the order in a higher court, but any jailing for him or his disqualification from parliament would be a blow to his Congress party ahead of the 2024 general election, which Prime Minister Narendra Modi’s party is widely expected to win.

The judgment was passed by a magistrate’s court in the city of Surat, located in Modi’s home state of Gujarat. The case was brought by a Gujarat lawmaker from Modi’s Bharatiya Janata Party (BJP).

Gandhi, the 52-year-old scion of the Nehru-Gandhi political dynasty, was present at the Surat court, which gave him bail immediately and suspended the sentence for a month.

“Accused Rahul Gandhi is held guilty … and sentenced to two years simple imprisonment,” Harish Varma, the chief judicial magistrate of Surat, said in his order.

Ketan Reshamwala, an advocate for complainant Purnesh Modi, said the court had found Gandhi’s comment defamatory.

An adviser to the federal government, Kanchan Gupta, said Gandhi could face immediate disqualification from parliament following the conviction, in line with a 2013 order of the country’s highest court.

Congress spokesperson and top lawyer Abhishek Singhvi told a news conference that the party feared Gandhi could be disqualified.

“The disqualification issue is dependent on the stay of conviction,” he said.

“Any reasonable system, any reasonable, fair, non-oppressive, non-biased system would give sufficient time to a person to take some legal steps to stay the conviction,” he said.

In the speech ahead of the last general election in 2019, Gandhi referred to the prime minister and two fugitive Indian businessmen, all surnamed Modi, while talking about alleged high-level corruption in the country.

On Thursday, Gandhi, a former Congress president who is currently an influential MP, told the court that his comment was not against any community.

Congress members rallied behind Gandhi, with many state units planning protests later in the day and on Friday.

“The Modi government is a victim of political bankruptcy”, Congress president Mallikarjun Kharge said on Twitter. “We will appeal in the higher court.”

Gandhi also received support from the Aam Aadmi Party (AAP) that rules Delhi and two of whose top leaders are in jail on what they call trumped-up charges.

“We have differences with the Congress, but it is not right to implicate Rahul Gandhi in a defamation case like this. It is the job of the public and the opposition to ask questions. We respect the court but disagree with the decision,” AAP chief and Delhi Chief Minister Arvind Kejriwal wrote on Twitter.

Gandhi’s once-dominant Congress controls less than 10% of the elected seats in parliament’s lower house and lost badly to the BJP in the last two general elections.

Modi remains India’s most popular politician by a substantial margin and polls show he is expected to win a third victory at the election next year.

Unlike in many countries, where defamation is a civil offence, Indian law also has provisions which classify it as a criminal offence punishable with a jail term of up to two years.

(Reporting by Sumit Khanna in Ahmedabad and Arpan Chaturvedi and Y.P. Rajesh in New Delhi; Writing by Shilpa Jamkhandikar and Krishna N. Das; Editing by Raju Gopalakrishnan, William Maclean)

tagreuters.com2023binary_LYNXMPEJ2M0FM-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M0FN-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M0HL-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

VW’s family owners to get 392 million euros dividend from Porsche SE

by Reuters March 23, 2023
By Reuters

BERLIN (Reuters) -The families that control German automaker Volkswagen will receive 391 million euros ($425 million) in dividends for 2022 from their holding company Porsche SE, the company said on Thursday.

Porsche SE proposed a dividend of 2.56 euros per preferred share and 2.554 euros per ordinary share and said dividends would increase once targets to cut debt have been met.

The Porsche and Piech families behind the unlisted holding company Porsche SE are the most powerful voice in Europe’s top carmaker Volkswagen and the newly-listed Porsche AG via a complex cross-holding structure. 

In its statement on Thursday, Porsche SE said it aimed to reduce its net debt by up to 16% by the end of 2023 compared to the previous year following its purchase of an equity stake in Porsche AG.

That would cut debt to between 6.1 billion euros and 5.6 billion euros from 6.7 billion euros ($7.3 billion) at the end of 2022.

Porsche SE chair Hans Dieter Poetsch said the company had “a solid financing and repayment plan in place,” backed by profits from the group, as well as dividend inflows from Volkswagen and Porsche.

CEO Oliver Blume said that dividend payments would increase once the company’s debt had been reduced.

Increased profits at VW helped Porsche SE’s group result to climb by 200 million euros to 4.8 billion euros last year. For 2023, Porsche SE expects group profit after tax of between 4.5 billion euros and 6.5 billion euros.

Luxury carmaker Porsche AG, previously part of Volkswagen AG, became an independent company via a stock market listing in September last year.

Under the listing’s terms, Porsche AG’s shares were split into preferred shares – 25% of which were listed on the stock market – and ordinary shares, which carry voting rights.

Through the Porsche SE holding company, the two controlling families own a majority of voting rights in Volkswagen and a portion of voting rights in the newly-listed Porsche AG – with the remainder held by Volkswagen.

($1 = 0.9199 euros)

(Reporting by Ilona Wissenbach, Writing by Friederike Heine, Editing by Kirsti Knolle, Christina Fincher and Barbara Lewis)

tagreuters.com2023binary_LYNXMPEJ2M09O-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

New EU fiscal rules cannot allow ‘a la carte’ polices -Gentiloni

by Reuters March 23, 2023
By Reuters

BRUSSELS (Reuters) – The European Union’s planned new fiscal rules cannot give governments a free hand in the choice of fiscal policies, even if they do offer individual debt reduction paths, European Economic Commissioner Paolo Gentiloni said on Thursday.

Speaking at a Politico economic conference, Gentiloni said the new rules, which the EU hopes to agree on by the end of this year, should have some common standards and benchmarks that would set the frame for the different debt cutting schemes.

Until the COVID-19 pandemic, EU rules obligated governments to reduce public debt by 1/20th of the excess above 60% of GDP every year. But the surge in borrowing to keep economies alive during pandemic lockdowns made that rule unrealistic, prompting a review of the whole EU fiscal framework.

Key to the proposed revision is the option that each government negotiates an individual debt reduction path with the Commission – an option that Germany is concerned could end up in discretionary decisions undermining the common euro currency.

“If we are more differentiated, more gradual and more capable of enforcement, we will also be more effective,” Gentiloni said of the proposed changes to the rules.

“This should not, in any way, send a message that we have fiscal policies ‘a la carte’, decided by each country, negotiated with the Commission without any common reference.”

Work on establishing what that common reference could be was now under way, he said, adding the Commission would present legal proposals on the changes in coming weeks.

(Reporting by Jan Strupczewski; Editing by Alex Richardson)

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

FAA to boost US air traffic control safety after close calls

by Reuters March 23, 2023
By Reuters

By David Shepardson

WASHINGTON (Reuters) – The Federal Aviation Administration (FAA) said on Thursday it was taking steps to improve its air traffic control operations after a series of near-miss incidents raised questions about U.S. aviation safety.

“There is no question that we are seeing too many close calls,” FAA Air Traffic Organization Chief Operating Officer Tim Arel said in a message to employees reviewed by Reuters.

On Wednesday, the FAA issued a separate safety alert to airlines, pilots and others citing the “need for continued vigilance and attention to mitigation of safety risks.”

Six serious runway incursions since January prompted the agency to convene a safety summit last week.

Arel said the FAA would ensure that supervisors devote their full attention to the operation and airfield during peak traffic periods, provide more dedicated training for unusual circumstances and update simulator software for the first time since 2016.

National Transportation Safety Board (NTSB) chair Jennifer Homendy said last month a FedEx cargo plane and a Southwest Airlines plane had come within 100 feet of each other in what could have been a “terrible tragedy.”

The FAA plans to work with the air traffic controllers union “to reinforce existing safety protocols, especially those that help increase situational awareness,” Arel said, adding the FAA would re-examine runway incursion data to identify underlying factors that led to the close calls and to find fixes.

The FAA faces an air traffic control staffing shortage and wants funding to boost controller numbers. National Air Traffic Controllers Association President Rich Santa said last week there are 1,200 fewer certified air traffic controllers than a decade ago.

On Wednesday, the FAA said it would temporarily cut minimum flight requirements for airlines to keep take-off and landing slots at congested New York City-area airports and Ronald Reagan Washington National Airport to address summer congestion issues.

The FAA said it had agreed to requests from Delta Air Lines and United Airlines to temporarily return up to 10% of slots and flights at those airports on the condition they were not backfilled by other carriers.

“It is imperative that aviation stakeholders and the FAA work collaboratively to take proactive measures,” United said.

(Reporting by David Shepardson; Editing by Jamie Freed)

tagreuters.com2023binary_LYNXMPEJ2M0H2-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

Danish government proposes tight spending to fight inflation

by Reuters March 23, 2023
By Reuters

COPENHAGEN (Reuters) -Denmark’s government on Thursday proposed tightening public spending to try to ease inflation as it predicted prices would rise 3.9% this year.

“The most important aim of this finance bill is to ensure that we fight inflation and don’t add fuel to the fire,” Finance Minister Nicolai Wammen told reporters at a presentation of the government’s budget proposal for 2023.

Inflation, which reached a 40-year high of 7.7% last year, is expected to fall to 2.8% next year, according to a finance ministry report published on Thursday.

“The fiscal policy we are planning for this year will generally take activity out of the economy. That is necessary,” Wammen said. The bill would have a negative effect of 0.9% on the Danish economy, he said.

The government expects the economy to grow by 0.2% this year, down from an August forecast of 0.8%, it added. By contrast, the central bank has said it expects the economy to grow by 0.9% this year.

“The scope of possibility for the economy is extraordinarily large at the moment, as we are potentially standing on the edge of a recession,” Arbejdernes Landsbank chief economist Jeppe Borre said in a note.

The relatively weak growth forecast follows two years of strong economic growth in Denmark characterised by low unemployment and high industrial activity.

Last week, the central bank raised its key interest rate to 2.6%, the sixth rate hike since July last year, closely tracking other central banks across the globe that are tightening monetary policy to combat inflation.

In February, the government agreed to spend 2.4 billion Danish crowns ($346.12 million) on an aid package aimed at easing the blow from higher prices on vulnerable Danes.

(Reporting by Jacob Gronholt-Pedersen, Nikolaj Skydsgaard and Louise Rasmussen; Editing by Anna Ringstrom, Clarence Fernandez and Grant McCool)

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
US and World News

Analysis-In US abortion pill case, FDA could soften blow of court-ordered restrictions

by Reuters March 23, 2023
By Reuters

By Julia Harte, Gabriella Borter and Brendan Pierson

(Reuters) – A conservative federal judge in Texas could soon order the U.S. Food and Drug Administration to reconsider its 22-year-old approval for a pill used in the most common form of abortion in the United States, or order the approval revoked outright.

Of the various potential rulings possible in the case involving the abortion pill mifepristone, either of those outcomes would be unprecedented judicial intervention in the agency’s regulatory process. 

The FDA declined to comment on the litigation or its next steps. But interviews with nine U.S. food and drug law scholars and attorneys, including six who signed onto a brief filed in the Texas case, revealed the agency has the power to delay or soften the blow of a court-ordered ban on the drug or reconsideration of its approval.

Any ruling in the case is expected to be appealed. Even if higher courts upheld a decision against the FDA, the agency could help prevent mifepristone from being immediately withdrawn from the market, these experts said.

Some of the FDA’s options could be politically and legally risky both for the agency and mifepristone suppliers, they said.

Mifepristone is part of a two-drug regimen with misoprostol that accounts for more than half of U.S. abortions.

GRAPHIC: Medical abortions on the rise in the United States – https://www.reuters.com/graphics/USA-ABORTION/PILL/byprlmmyzpe/chart.png

The agency’s role in determining mifepristone’s future has gotten little notice in a court battle that has drawn widespread attention as the most consequential abortion case since the U.S. Supreme Court last year overturned the 1973 Roe v. Wade ruling that established federal abortion rights.

At a hearing last week in Amarillo, Texas, anti-abortion groups asked U.S. District Judge Matthew Kacsmaryk to halt sales of mifepristone nationwide – even in states where abortion is legal – while their lawsuit against the FDA proceeds.

The groups contend the agency used an improper process when it approved mifepristone in 2000 and did not adequately consider the drug’s safety when used by girls under age 18. The FDA said the pill was deemed safe after extensive studies and use, and that the challenge comes much too late.

What happens next will depend on whether Kacsmaryk finds he has the authority to overrule the FDA’s decision. 

POSSIBLE OUTCOMES

If Kacsmaryk orders the FDA to reconsider the drug’s approval, that could trigger a years-long process during which the pill would remain legally available.

Under FDA statutes and regulations, drug approval withdrawal generally begins with an informal hearing, which can entail extensive document preparation and the convening of an advisory committee.

The process is often triggered by post-approval studies showing inefficacy, according to Harvard Law professor I. Glenn Cohen.

That was the case in 2019 with Makena, a pre-term birth prevention drug. The manufacturer protested the FDA’s action and subsequent administrative hearings dragged out, allowing Makena to be sold for more than three years before the drugmaker took it off the market this month.

Mifepristone makers also would likely challenge a withdrawal under this process, and the FDA could decide at the end not to remove the drug’s approval, said Greer Donley, an associate professor at the University of Pittsburgh Law School.

If the judge takes the more extreme option of ordering mifepristone’s approval withdrawn, experts said the FDA would have another countermove: it could choose not to enforce the ban.

That could mean refraining from any action to prevent continued mifepristone sales. Or, the FDA could go further and publicly state it would not take such action.

Some lawyers said the FDA might assert its enforcement discretion under Democratic President Joe Biden’s administration, but acknowledged that would elicit political and even legal blowback.

Alta Charo, a University of Wisconsin law professor emerita who was a senior FDA policy adviser during the Obama administration, said she doubted the agency would actively ignore a court decision, in part because U.S. lawmakers could retaliate with measures including budget cuts.

The FDA could also be sued by anti-abortion groups or officials for not enforcing the order, as could mifepristone makers and sellers for continuing to make it available.

Continued access to the pill would depend on how much legal risk manufacturers and sellers were willing to assume, the scholars said.

“If you have the Supreme Court saying that this is an unsafe drug, at that point the legal risks go up enormously, no matter what the FDA does,” said Donley.

U.S. mifepristone makers told Reuters their decisions about whether to keep manufacturing the pill would follow the FDA’s lead.

Overseas provider Aid Access, an Austria-based service that ships abortion medication to U.S. patients, said it would continue providing the pill no matter how the FDA responds.

Kacsmaryk also is presiding over a lawsuit filed by the anti-vaccine group Children’s Health Defense and others accusing media companies, including Reuters, of violating federal antitrust laws by allegedly working with tech companies to censor information about COVID-19. A Reuters spokesperson has denied the allegations.

(Reporting by Julia Harte and Brendan Pierson in New York, and Gabriella Borter and Ahmed Aboulenein in Washington; Editing by Colleen Jenkins and Bill Berkrot)

tagreuters.com2023binary_LYNXMPEJ2M0B7-BASEIMAGE

tagreuters.com2023binary_LYNXMPEJ2M0B6-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

ECB could hike rates again in May to tame stubborn inflation: Knot

by Reuters March 23, 2023
By Reuters

By Balazs Koranyi and Toby Sterling

FRANKFURT/AMSTERDAM (Reuters) – The European Central Bank may need to raise rates again in May to fight inflation, Dutch central bank chief Klaas Knot said, adding a powerful voice to the growing chorus of policymakers calling for tighter policy even after recent market turmoil.

The ECB last week raised interest rates by 50 basis points to its highest level since late 2008 but made no commitment about future moves, worried that the recent global selloff in bank share could morph into a broader crisis. That would trip up what is already the fastest tightening cycle on record.

But the central bank chiefs of Germany, Austria, Slovakia and Lithuania, among others, have now all said the ECB is not finished because inflation is far too high and could be more persistent than the central bank’s own projections.

“I regard it unlikely that we would already be done by now,” Knot told Reuters in an interview. “It’s highly questionable whether maintaining rates only in mildly restrictive territory … would be enough to generate the immaculate disinflation that we probably all hope for.”

“I still think we need to make another step in May but I don’t know the size of that step,” Knot said separately in a news conference.

The caveat to any rate hike plan is that financial market turbulence needs to dissipate, but Knot said Europe was “very, very far” from a financial crisis and an escalation of the turbulence was not his base scenario.

The real problem is inflation, whose recent rapid falls may be masking that past energy prices have seeped into underlying price growth, making inflation more difficult to control.

Once driven by energy, inflation is now domestic, fuelled by wages and demand for services, with pipeline pressures not yet showing a turnaround.

“We should not let ourselves be lulled into comfort,” Knot said. “Our real inflation problem is core, which shows no sign of abating yet.”

The ECB omitted its usual inflation risk assessment last week but Knot said that, to him, risks were “clearly” tilted to the upside.

Wages are putting pressure on prices and the inflation projection assumed significant policy tightening, which has now largely been priced out by markets.

Markets now see another 50 basis point increase in the ECB’s 3% deposit rate – half what they assumed just two weeks ago but a big change from the height of the recent market turmoil when investors bet that the ECB’s next move would be a cut.

Knot said the turmoil that led to Credit Suisse’s takeover by UBS last weekend could still impact monetary policy if private sector funding costs stay elevated but this impact needs to have a “strong permanent character” to change the outlook.

The good news is that wage deals for 2024 show a slowdown, suggesting that the ECB’s inflation-fighting credibility is intact and that instead of a wage-price spiral, the moderating growth in wages will eventually extinguish price growth.

Rate hikes need to be complemented by a further reduction in ECB’s balance sheet, Knot said, because the 4 trillion euros’ worth of excess liquidity in the system is far too high, so the bank should step up the reduction of its bond portfolio.

“If there is no additional turmoil in the coming weeks, then I think that we can gradually move toward a full stop of Asset Purchase Programme reinvestments, under the condition that it can be accomplished without creating undue turbulence in the euro area bond markets,” Knot said.

For a Q&A with Knot, click here.

(This story has been refiled to correct spelling of Knot’s first name)

(Reporting by Balazs Koranyi; Editing by Catherine Evans)

tagreuters.com2023binary_LYNXMPEJ2M0FV-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

Bank of England raises interest rates again, sees inflation falling

by Reuters March 23, 2023
By Reuters

By William Schomberg and David Milliken

LONDON, March 23 (Reuters) – The Bank of England raised interest rates by a further quarter of a percentage point on Thursday and said it expects the surge in British inflation to cool faster than before, despite a surprise jump in price growth announced on Wednesday.

Sounding more upbeat about the outlook for the country’s slow pace of economic growth, the BoE’s nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%.

That was its 11th consecutive increase in borrowing costs which began in December 2021, although it was the smallest rise since June last year.

Monetary Policy Committee members Swati Dhingra and Silvana Tenreyro voted to keep rates on hold while Catherine Mann, who has been the committee’s strongest advocate for raising rates in bigger steps, backed the relatively small 25 basis-point increase.

The BoE – which is trying to reconcile a weak economic outlook and anxieties about global banks with stubbornly high inflation – kept unchanged its message that its MPC saw less urgency about maintaining its fast run of rate hikes.

“The MPC will continue to monitor closely indications of persistent inflationary pressures, including the tightness of labour market conditions and the behaviour of wage growth and services inflation,” the BoE said.

“If there were to be evidence of more persistent pressures, then further tightening of monetary policy would be required,” it added.

BoE Governor Andrew Bailey and his colleagues last month dropped language saying that they were ready to act forcefully if the outlook suggested persistent inflationary pressures.

In Thursday’s statement, the BoE said price growth remained on course to fall sharply in the April-June period of this year, despite inflation’s surprise jump to 10.4% in February.

Inflation in the second quarter would be lower than the BoE forecast last month after finance minister Jeremy Hunt last week announced an extension of state subsidies to lower households’ utility bills, and international energy prices fell, it said.

As recently as Tuesday – before the latest inflation data – investors were split 50-50 on whether the BoE would leave Bank Rate unchanged for the first time since November 2021 after the rescue of Credit Suisse and the collapse of Silicon Valley Bank.

The BoE on Thursday noted “large and volatile moves” in financial markets around the world caused by the banking turmoil but said its Financial Policy Committee judged that Britain’s banking system remained resilient.

“The MPC will continue to monitor closely any effect on the credit conditions faced by households and businesses, and hence the impact on the macroeconomic and inflation outlook,” it said.

The European Central Bank last week stuck to its plans and raised rates by 50 basis points despite the Credit Suisse turmoil, a move repeated by the Swiss National Bank on Thursday as it warned that more hikes could not be ruled out.

On Wednesday, the U.S. Federal Reserve raised its main interest rates by a quarter of a percentage point, and indicated it was on the verge of pausing further increases.

The BoE predicted measures included in Hunt’s budget would speed up Britain’s sluggish economy and increase the level of gross domestic product by about 0.3% over the coming years.

It said it expected GDP would grow slightly in the second quarter of 2023, an upgrade of its pre-budget forecasts made in February that the economy was on course to shrink by 0.4% during the April-June period.

As well as the extended energy subsidies to households – which had originally been due to expire in April – the BoE now expects employment growth to be stronger than previously forecast.

The BoE is worried about the strength of the labour market because pay growth, despite cooling a bit recently, is running far above its historical average and shortages of workers remain acute, all of which is inflationary.

However, it said it expected wages to rise slightly less than it had previously forecast, as inflation expectations fell.

The BoE was not due to hold a quarterly news conference by Bailey and other top officials on Thursday. Bailey is due to make a speech on Monday.

The BoE was the first major central bank to start raising rates in December 2021 and until this week had seemed likely to join the Bank of Canada which this month stopped raising borrowing costs.

Earlier on Thursday, before the rate decision, investors in rate futures markets were positioned for possibly two more 25-basis-point moves by the BoE by September after Thursday’s expected hike.

(Reporting by William Schomberg and David Milliken)

(([email protected]))

Keywords: BRITAIN BOE/DECISION

tagreuters.com2023binary_LYNXMPEJ2M0FL-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

General Mills raises 2023 forecasts again on price hike boost

by Reuters March 23, 2023
By Reuters

(Reuters) -General Mills Inc on Thursday raised its fiscal 2023 forecasts for a fourth time after beating estimates for quarterly results, helped by price increases and steady demand for its packaged-food products.

Multinational packaged food companies have been bumping up their product prices to shield their profit margins from spiraling costs and have faced low resistance as Americans cut down on dining out amid growing fears of a recession.

General Mills’ organic sales in the third quarter rose 16%, helped mainly by higher prices, while volumes remained flat.

Shares of the Cheerios cereal maker rose about 2% in premarket trade.

General Mills had most recently lifted its annual organic sales and profit expectations in February.

The company said on Thursday it now expects organic net sales to rise 10% to 11% in fiscal 2023, compared to its earlier forecast of about 10% growth.

It forecast fiscal 2023 adjusted profit per share to rise between 8% and 9% on a constant-currency basis, compared with its prior range of a 7% to 8% rise.

The company’s net sales in the third quarter ending Feb. 26 rose 13% to about $5.13 billion, while analysts had expected $4.97 billion, according to Refinitiv data.

Excluding one-off charges, General Mills earned 97 cents per share, compared with estimates of 93 cents.

(Reporting by Granth Vanaik in Bengaluru; Editing by Shinjini Ganguli)

tagreuters.com2023binary_LYNXMPEJ2M0D7-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

The long-running crisis at Japan’s Toshiba

by Reuters March 23, 2023
By Reuters

By Makiko Yamazaki

TOKYO (Reuters) – Toshiba Corp’s board on Thursday accepted a buyout offer from a group led by private equity firm Japan Industrial Partners (JIP), ending months of speculation over whether the investors would be able to take it private.

The deal would potentially draw a line under the Japanese conglomerate’s recent troubled history. Here is a timeline of Toshiba’ woes since 2015.

2015 – Toshiba discloses accounting malpractices across multiple divisions, which involved top management. It overstated pretax profit by 230 billion yen ($1.8 billion) over seven years.

Dec. 2016 – Toshiba says it will take a charge of several billion dollars related to a nuclear power plant construction company that U.S. unit Westinghouse Electric had bought a year earlier.

March 2017 – Westinghouse files for Chapter 11 bankruptcy. Faced with more than $6 billion in liabilities linked to Westinghouse, Toshiba decides to put prized chip unit Toshiba Memory up for sale.

Sept. 2017 – Toshiba agrees to sell the chip business to a consortium led by Bain Capital for $18 billion, while retaining a large stake.

The company is desperate to close the deal by the end of the financial year in March to help right its finances and avoid a potential delisting.

That is jeopardised by a prolonged dispute over the sale with Western Digital Corp, its partner in a chip joint venture. Antitrust reviews are expected to take months.

Dec. 2017 – Toshiba secures a $5.4 billion cash injection from more than 30 overseas investors, helping it avoid a delisting but bringing in prominent activist shareholders including Elliott Management, Third Point and Farallon. Dispute with Western Digital is settled.

Jan. 2020 – Toshiba finds fresh accounting irregularities at a wholly owned subsidiary.

July 2020 – Five director candidates nominated by activist shareholders get voted down at annual general meeting.

Sept. 2020 – Toshiba discloses more than 1,000 postal voting forms for its AGM went uncounted. The bank that counted the votes, Sumitomo Mitsui Trust Bank, later reveals widespread failure to count all valid votes at AGMs of client firms over past two decades.

March 2021 – Shareholders approve an independent investigation into allegations that investors were pressured ahead of the previous year’s AGM.

April 2021 – CVC Capital Partners makes an unsolicited $21 billion offer to take Toshiba private.

A week later, Toshiba’s CEO resigns amid controversy over the CVC bid, perceived by some within company management as designed to shield him from activist shareholders.

Toshiba’s subsequent dismissal of the CVC offer angers some activist shareholders.

June 10, 2021 – A shareholder-commissioned investigation concludes Toshiba colluded with Japan’s trade ministry – which sees Toshiba as a strategic asset – to block overseas investors from gaining influence at 2020 shareholder meeting.

June 25, 2021 – Shareholders oust board chairman Osamu Nagayama after critics accuse board of failing to address allegations of pressuring investors. Toshiba pledges to undertake a full review of assets and engage with potential investors.

Nov. 2021 – Toshiba says it will split into three companies, one for energy, one for infrastructure and the third to manage its Kioxia stake.

Feb. 2022 – Toshiba announces a new plan to split into two, spinning off only its devices unit.

March 1, 2022 – CEO Satoshi Tsunakawa resigns. Taro Shimada, a former Siemens AG executive who joined in 2018, appointed as interim CEO to proceed with the spin-off plan.

March 24, 2022 – Shareholders vote against spin-off plan. A separate motion backed by activist shareholders that called for the conglomerate to solicit buyout offers also fails to pass.

April 2022 – Toshiba sets up a special committee to resume a strategic review that could see it taken private.

May 13, 2022 – Ten potential investors express their interest. Under pressure from shareholders, Toshiba announces a special dividend of some $545 million.

June 2022 – Toshiba receives eight buyout proposals. Directors publicly trade criticism over governance and the nomination of hedge fund executives to its board. Shareholders later approve two activist directors, a historic shift.

July 2022 – Toshiba selects four bidders including private equity firms Bain Capital, CVC Capital Partners and a consortium involving JIP and state-backed Japan Investment Corp (JIC) to proceed to a second bidding round. JIC and JIP disagree over the proposal and decide not to pursue a bid together.

Oct. 2022 – The JIP-led consortium, involving a number of Japanese firms such as Orix Corp and Chubu Electric Power Co, is given preferred status.

Feb. 2023 – After months of speculation, Toshiba confirms that it has received a proposal from an all-Japanese group led by JIP, which sources said secured $10.6 billion in loan commitments.

March 23, 2023 – Toshiba’s board accepts JIP’s 2 trillion yen tender offer at 4,620 yen a share, versus its last closing price of 4,213 yen.

($1 = 130.8500 yen)

(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs, David Dolan and Jan Harvey)

tagreuters.com2023binary_LYNXMPEJ2M0ER-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

Central bank tests spur global instant payment hopes

by Reuters March 23, 2023
By Reuters

LONDON (Reuters) – A year of tests run by central banks in Italy, Malaysia and Singapore have spurred hopes for a global instant payments network accessible at the tap of a mobile phone.

The ability to send money quickly and cheaply around the world has long been seen as something of a holy grail for policymakers due to the advantages it would bring for both people and companies.

Current transfers are slowed by the patchwork of more than 60 different instant payment networks, so central banks involved in the new tests have been working on ways to improve the process.

The Bank for International Settlements (BIS), the central bank umbrella body, which helped oversee the “Nexus” trials, said the three countries involved had successfully sent payments between themselves using only mobile phone numbers.

Looking ahead, the BIS said further trials would be run by Indonesia, Malaysia, the Philippines, Singapore and Thailand with the hope that “Nexus could eventually be implemented globally.”

(Reporting by Marc Jones; Editing by Mark Potter)

tagreuters.com2023binary_LYNXMPEJ2M0CI-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

U.S. Fed delivers small rate hike amid global banking turmoil

by Reuters March 23, 2023
By Reuters

By Howard Schneider, Yoruk Bahceli and Akriti Sharma

(Reuters) -The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs after the recent collapse of two U.S. banks.

Fed Chair Jerome Powell sought to reassure investors about the soundness of the banking system, saying that the management of Silicon Valley Bank “failed badly,” but that the bank’s collapse did not indicate wider weaknesses in the banking system.

“These are not weaknesses that are running broadly through the banking system,” he said, adding that the takeover of Credit Suisse seemed to have been a positive outcome.

The Federal Open Market Committee policy statement also said the U.S. banking system is “sound and resilient.”

Even so, Wall Street ended sharply lower after Powell told a news conference that officials were still intent on fighting inflation while also eying the extent to which recent bank failures had cooled demand and slowed lending.

The much-anticipated rate hike by the Fed, which had delivered eight previous rate hikes in the past year, sought to balance the risk of rampant inflation with the threat of instability in the banking system.

But in a key shift driven by the sudden failures this month of Silicon Valley Bank (SVB) and Signature Bank, the Fed’s latest policy statement no longer says that “ongoing increases” in rates will likely be appropriate.

The banking sector has been in turmoil after California regulators on March 10 closed Silicon Valley Bank in the largest U.S. bank failure since the 2008 financial crisis.

The collapse of the Santa Clara, California-based bank and Signature Bank, another U.S. midsized lender, prompted a rout in banking stocks as investors worried about other ticking bombs in the banking system and led to UBS Group AG’s takeover of 167-year-old Credit Suisse Group AG to avert a wider crisis.

The Fed’s relentless rate hikes to rein in inflation are among factors blamed for the biggest banking sector meltdown since the 2008 financial crisis.

“The Fed is now living on a hope and a prayer that they haven’t done irreparable harm to the banking system,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments in Menomonee Falls, Wisconsin. “The Fed is probably thinking financial stresses are substituting for future rate increases.”

Citigroup Inc CEO Jane Fraser on Thursday expressed confidence in U.S. banks and said recent the turmoil did not represent a credit crisis.

“This is a situation where it’s a few banks that have some problems, and it’s better to make sure that we nip that in the bud,” she said in Washington on Wednesday.

Meanwhile, as beleaguered First Republic Bank considers its options, Treasury Secretary Janet Yellen said on Wednesday there is no discussion on insurance for all deposits.

She told a congressional hearing that the government “is not considering insuring all uninsured bank deposits.” She also said the Treasury Department has not considered anything to do with guarantees for assets. First Republic shares closed down more than 15%.

As officials grapple with restoring confidence in the banking system, JPMorgan Chase & Co CEO Jamie Dimon is scheduled to meet with Lael Brainard, the director of the White House’s National Economic Council, during the executive’s planned trip to Washington, according to a person familiar with the situation.

BANK SUPERVISION

The latest move to restore calm to restive regional bank stocks came as Pacific Western Bank, one of the regional lenders caught up in the market volatility, said it had raised $1.4 billion from investment firm Atlas SP Partners.

Shares of the bank closed down 17% even as it tried to assuage investor worries by saying it had more than $11.4 billion in cash as of March 20.

But less than two weeks after Silicon Valley Bank sank under the weight of bond-related losses due to surging interest rates, the CEO of hedge fund Man Group, Luke Ellis, said the turmoil was not over and predicted further bank failures.

Policymakers from Washington to Tokyo have stressed the turmoil is different from the crisis 15 years ago, saying banks are better capitalised and funds more easily available.

SVB’s collapse kicked off a tumultuous 10 days for banks which led to the 3 billion Swiss franc ($3.2 billion) weekend takeover of Credit Suisse by rival UBS.

In further fallout, a conservative Republican and a progressive Democrat in the U.S. Senate are introducing legislation to replace the Fed’s internal watchdog with one appointed by the president, aiming to tighten bank supervision following the failures of SVB and Signature Bank.

Republican Rick Scott and Democrat Elizabeth Warren blamed the collapse of the two banks on regulatory failures at the U.S. central bank, which has operated up to now with an internal inspector general who reports to the Fed board.

The Fed was not immediately available for comment.

The Federal Deposit Insurance Corporation (FDIC) has moved the bid deadline for Silicon Valley Private Bank to Friday from Wednesday, a source familiar with the matter said on Wednesday. Earlier this week, the FDIC decided to break up Silicon Valley Bank and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week.

($1 = 0.9280 Swiss franc)

(Additional reporting by Howard Schneider, Ann Saphir, Sumeet Chaterjee, Tatiana Bautzer, Saeed Azhar, Scott Murdoch, Tom Westbrook, Shubham Batra, Amruta Khandekar, Ankika Biswas, Noel Randewich, Balazs Koranyi, Francesco Canepa, Akriti Sharma, Amanda Cooper, David Morgan, Heather Timmons and Dhara RanasingheWriting by Lincoln Feast, Alexander Smith and Matthew LewisEditing by Sam Holmes, Catherine Evans, Nick Zieminski and Anna Driver)

tagreuters.com2023binary_LYNXMPEJ2L0SY-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Business News

ECB slowly trims carbon footprint of its bond stash

by Reuters March 23, 2023
By Reuters

FRANKFURT (Reuters) – The European Central Bank has trimmed the carbon intensity of its 385-billion-euro stash of corporate bonds but the dwindling of purchases is slowing its progress, an ECB report showed on Thursday.

ECB President Christine Lagarde has made incorporating climate consideration into monetary policy a goal of her tenure, even as other central bankers, and some of her colleagues, have been sceptical on the matter.

In its first such disclosure, the ECB said the carbon intensity – a measure that relates a company’s emissions to its revenues and the size of the investment – of its new purchases of corporate credit had more than halved since it adopted a “green tilt” in picking bonds late last year.

The weighted-average carbon intensity of the company debt bought by the ECB in the last quarter of last year stood at just below 200 tonnes of CO2 per million in revenue generated by the company, compared to nearly 400 tonnes in the first three quarters of the year.

But the ECB has been steadily cutting the volume of its bond-buying in its effort to curb inflation, meaning the new, greener purchases were hardly making a difference in the overall stock of bonds accumulated over several years.

“While this provides an encouraging initial indication of the tilting framework’s potential, the large stock of existing holdings vis-à-vis reinvestments implies that it would take some time for the tilting to have a substantial impact on the overall carbon metrics,” the ECB said in the report.

The ECB stopped buying bonds last year and is now replacing only some of those that mature, with a view to ending those reinvestments altogether, possibly as soon as July.

The central bank of the 20 countries that share the euro currency said it could adapt its purchases “to a variety of reinvestment scenarios” and would report on its progress.

“Going forward, we will develop interim decarbonisation targets that help us stay on track towards our final targets,” ECB board member Isabel Schnabel said in the report.

Earlier this year, Schnabel had said the ECB may need to harness its multi-trillion-euro stock of bonds to step up its greening efforts – immediately bringing pushback from some of her peers.

Analysis from sustainable finance think tank Anthropocene Fixed Income Institute (AFII) showed the ECB could cut the carbon footprint associated with its corporate bond holdings by 87% if it sold just 48.3 billion euros of debt from the 25 top polluters.

(Reporting by Francesco Canepa; Editing by Clarence Fernandez)

tagreuters.com2023binary_LYNXMPEJ2M0BQ-BASEIMAGE

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
US and World News

AI chatbot Character.AI, with no revenue, raises $150 million led by Andreessen Horowitz

by Reuters March 23, 2023
By Reuters

By Krystal Hu and Anna Tong

(Reuters) – Character.AI has raised $150 million in a new funding round led by Andreessen Horowitz that valued the AI chatbot startup at $1 billion, and it’s in talks with cloud providers for more strategic investment, the company told Reuters.

The billion-dollar valuation for a company with zero revenue is another example of the continued AI funding boom since OpenAI’s ChatGPT became a widely recognized name. It came amid the recent shockwaves caused by the collapse of Silicon Valley Bank.

AI investment in 2023 to date has surpassed the full-year amount in 2020 of $1.5 billion, according to PitchBook data.

Character.AI will use the funding to train its self-built models and expand the 22-person team.

Since its launch six months ago, Character.AI, which enables users to create customized AI companions with specific personality and values, already has 100 million monthly site visits, the company said, marking a similar trajectory to ChatGPT, which set a record for the fastest-growing user base when it reached 100 million monthly users in two months.

Of the users who sent a message, their average time spent on the site is more than two hours a day, according to Character.AI.

The Menlo Park, Calif.-based company is launching a new model that adds more productivity capabilities, including drafting emails and assisting with test prep, on top of its current use cases such as entertainment, roleplay and emotional support.

“We started the company because we want to get this technology in the hands of everybody on Earth, A billion people can invent a billion use cases,” said Noam Shazeer, CEO at Character.AI.

While not currently generating any revenue, Character.AI plans to launch a paid subscription “in the not distant future”, while keeping the current free version available, Shazeer said. He didn’t rule out an ad-supported model.

Replika, another AI chatbot creator, charges $69.99 in annual fee for 250,000 paying subscribers. Founded in 2021 by former Google researchers Noam Shazeer and Daniel De Freitas, Character.AI had attracted backers including former GitHub CEO Nat Friedman.

(Reporting by Krystal Hu in New York and Anna Tong in San Francisco; Editing by Muralikumar Anantharaman)

March 23, 2023 0 comments
FacebookTwitterRedditWhatsappBluesky
Newer Posts
Older Posts
Prime Deals
Shore News Network
  • New Jersey
    • Jersey Shore News
    • South Jersey News
    • Philadelphia News
    • North Jersey News
    • Ocean County News
    • Monmouth County News
    • Cape May County News
    • Atlantic County News
    • Burlington County News
    • Mercer County News
    • Toms River News
    • Jackson Township News
    • Regional
  • New York
    • New York City News
  • MD
  • FL
  • PA
Shore News Network
  • DE
  • OH
  • D.C.
  • VA
  • Topics
    • Crime
      • Most Wanted
      • Fire
    • Weird
    • Politics
    • Weather
    • OMG!
    • Traffic
    • Lottery Results
    • Pets
    • US News
    • Politics
    • Weather Reports
    • Weird and Strange News
    • Good News
    • Viral Videos
    • Pets
    • Business News
    • Tech and Gaming
    • Entertainment
    • Food
    • Health and Wellness
    • Travel
    • Schools
    • Sports
    • Top 10 Lists
    • Viral News
    • The Buzz
    • Satire