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Niger crisis deepens as European nations evacuate and coup leaders get support from other juntas 2023-08-02 - Niger Prime Minister Ouhoumoudou Mahamadou answers the Associated Press, Tuesday, Aug. 1, 2023 in Paris. France prepared to evacuate French and other European nationals from Niger on Tuesday, telling them to carry no more than a small bag, after a military coup there won backing from three other West African nations ruled by mutinous soldiers. (AP Photo/Christophe Ena) Niger Prime Minister Ouhoumoudou Mahamadou answers the Associated Press, Tuesday, Aug. 1, 2023 in Paris. France prepared to evacuate French and other European nationals from Niger on Tuesday, telling them to carry no more than a small bag, after a military coup there won backing from three other West African nations ruled by mutinous soldiers. (AP Photo/Christophe Ena) Niger Prime Minister Ouhoumoudou Mahamadou answers the Associated Press, Tuesday, Aug. 1, 2023 in Paris. France prepared to evacuate French and other European nationals from Niger on Tuesday, telling them to carry no more than a small bag, after a military coup there won backing from three other West African nations ruled by mutinous soldiers. (AP Photo/Christophe Ena) Niger Prime Minister Ouhoumoudou Mahamadou answers the Associated Press, Tuesday, Aug. 1, 2023 in Paris. France prepared to evacuate French and other European nationals from Niger on Tuesday, telling them to carry no more than a small bag, after a military coup there won backing from three other West African nations ruled by mutinous soldiers. (AP Photo/Christophe Ena) A French military transport plane carrying Europeans from Niger arrived in Paris Wednesday, in the first such evacuation flight since mutinous soldiers ousted the country’s democratically elected president nearly a week ago and shut its borders NIAMEY, Niger -- A French military transport plane carrying Europeans from Niger arrived in Paris Wednesday, in the first such evacuation flight since mutinous soldiers ousted the country’s democratically elected president nearly a week ago and shut its borders. France, Italy and Spain all announced evacuations from Niger for their citizens and other European nationals, concerned that they risked becoming trapped by the coup that won backing Tuesday from three other West African nations also ruled by mutinous soldiers. About 600 French nationals want to leave, along with 400 people of other nationalities from Belgians to Danish, French officials said. The first flight carried mostly French nationals, and officials hope to finish the evacuation flights by Wednesday. With Niger's air space closed, France coordinated the evacuations with the regime that ousted the nation's leader, but without withdrawing its support for democratically elected President Mohamed Bazoum, diplomatic officials said. The ministry cited recent violence that targeted its embassy in Niamey, the capital, as one of the reasons for its decision to offer evacuation flights to its citizens and other Europeans. Spain's Defense Ministry announced preparations to evacuate more than 70 nationals, and Italy also said it was arranging a flight. The evacuations come during a deepening crisis sparked by the coup last week against Bazoum. His apparent overthrow is a blow for Western nations that were working with Niger against West African extremists. In Niamey hotels, Europeans and other nationalities, including some Americans, packed bags. At the airport, hundreds of people lined up for hours waiting to leave on French evacuation flights. A former French military official who had been training the Nigerien army as a civilian told The Associated Press that he was departing even though his “job is not finished.” Speaking on condition of anonymity for security reasons, he said the military takeover took many people by surprise. The West African regional body known as ECOWAS announced travel and economic sanctions against Niger on Sunday and said it could use force if coup leaders don’t reinstate Bazoum within one week. The U,N, special envoy for West Africa and the Sahel, Leonardo Santos Simão, held out hope that bloodshed could be avoided. He said during a virtual news conference Tuesday he expects ECOWAS to go ahead with the deployment of troops to Niger if Bazoum isn’t restored to power. But “I believe that other efforts are underway, so I hope the use of force will not be necessary,” if "everybody talks in good faith (and) wants to avoid bloodshed.” The new junta got backing from the military governments of Mali, Burkina Faso and Guinea. Mali and Burkina Faso said in a joint statement that "any military intervention against Niger will be considered a declaration of war against Burkina Faso and Mali.” The two countries also denounced ECOWAS' economic sanctions as “illegal, illegitimate and inhumane” and refused to apply them. ECOWAS suspended all commercial and financial transactions between its member states and Niger, as well as freezing Nigerien assets held in regional central banks. Niger relies heavily on foreign aid, and sanctions could further impoverish its more than 25 million people. Mali and Burkina Faso have each undergone two coups since 2020, as soldiers overthrew governments claiming they could do a better job fighting increasing jihadi violence linked to al-Qaida and the Islamic State group. ECOWAS has suspended them from the bloc, but never threatened to use force. Guinea, another country under military rule since 2021, also issued a statement in support of Niger's junta and urged ECOWAS to “come to its senses." The evacuations followed violence Sunday that targeted the French Embassy, with protesters burning down a door and smashing windows before the Nigerien army dispersed them. Thousands of pro-junta supporters took to Niamey’s streets. Some waved Russian flags along with signs reading “Down with France” and supporting Russian President Vladimir Putin and telling the international community to stay away. There has been no clear explanation of the references to Russia, but some demonstrators regard it as a symbol of anti-Western feelings. Some may also reflect support for the Russian mercenary group Wagner's reputation for ruthlessly suppressing militants. Niger could be following in the same footsteps as Mali and Burkina Faso, both of which saw protesters waving Russian flags after their coups, analysts say. Niger’s coup could also embolden jihadi violence, some say. Boubacar Moussa, a former member of an al-Qaida linked group known as JNIM, said the military overthrow is exactly what the jihadis want because it will distract and weaken the army. “Jihadis are very supportive of this coup that happened in Niger, because it will allow them to become very strong,” he said. Moussa, who spoke to AP in Niamey, is part of a nationwide program to bring back jihadis, reintegrate them into society and use their help in counterterrorism efforts. It was spearheaded by Bazoum when he was minister of interior and is intended as an alternative to a military solution to stem violence across the country. The AP cannot verify that Moussa actively fought for JNIM. If ECOWAS uses force, it could also trigger violence between civilians supporting the coup and those against it, Niger analysts say. Niger's prime minister, who was appointed by Bazoum and was out of the country when the coup took place, urged the international community to help roll back the coup in order to defend democracy in West Africa. “For the ECOWAS countries, it’s a question of survival. For the international community too, it’s a question of credibility. Niger must remain a democratic state,” Prime Minister Ouhoumoudou Mahamadou said in an interview with The Associated Press in France. “Niger is a key country in terms of security for the rest of Africa, but also for the rest of the world,” he said. Observers believe Bazoum is being held at his house in Niamey. The first photos of him since the coup appeared Sunday evening, sitting on a couch smiling beside Chad President Mahamat Deby, who had flown in to try to mediate. Both the United States and France have sent troops and hundreds of millions of dollars of military and humanitarian aid in recent years to Niger, which was a French colony until 1960. In the capital, many people live in makeshift shelters and scramble daily to make enough money to feed their children. Niger was seen as the last partner working with the West against extremism in a Francophone region where anti-French sentiment opened the way for the Russian private military group Wagner. The U.S. will consider cutting aid if the coup is successful, the State Department said Monday. Aid is “very much in the balance depending on the outcome of the actions in the country,” said department spokesman Matt Miller. “U.S. assistance hinges on continued democratic governance in Niger.” ___ AP journalists John Leicester in Paris, Ciaran Giles in Madrid, Cara Anna in Nairobi and Kirsten Grieshaber in Berlin contributed. ___ This story corrects the name order and affiliation of jihadi member to Boubacar Moussa, a former member of an al-Qaida linked group known as JNIM.
Maine's biggest newspaper group is now a nonprofit under the National Trust for Local News 2023-08-02 - The offices of the Portland Press Herald is seen, Tuesday, Aug. 1, 2023, in South Portland, Maine. The newspapers is part of a group of 20 newspapers formerly owned by Masthead Maine, the largest newspaper group in the state. The media network was sold to the nonprofit Maine Trust for Local News. (AP Photo/Robert F. Bukaty) The offices of the Portland Press Herald is seen, Tuesday, Aug. 1, 2023, in South Portland, Maine. The newspapers is part of a group of 20 newspapers formerly owned by Masthead Maine, the largest newspaper group in the state. The media network was sold to the nonprofit Maine Trust for Local News. (AP Photo/Robert F. Bukaty) The offices of the Portland Press Herald is seen, Tuesday, Aug. 1, 2023, in South Portland, Maine. The newspapers is part of a group of 20 newspapers formerly owned by Masthead Maine, the largest newspaper group in the state. The media network was sold to the nonprofit Maine Trust for Local News. (AP Photo/Robert F. Bukaty) The offices of the Portland Press Herald is seen, Tuesday, Aug. 1, 2023, in South Portland, Maine. The newspapers is part of a group of 20 newspapers formerly owned by Masthead Maine, the largest newspaper group in the state. The media network was sold to the nonprofit Maine Trust for Local News. (AP Photo/Robert F. Bukaty) The largest newspaper group in Maine is becoming a nonprofit with the completion of the sale of more than 20 daily and weekly newspapers, including the Portland Press Herald PORTLAND, Maine -- With advertising shrinking and newspapers vanishing, Maine’s largest newspaper group became the latest to try a nonprofit model with the completion of the sale of more than 20 daily and weekly newspapers, including the Portland Press Herald. The National Trust for Local News, which already owns two dozen newspapers in Colorado, is expanding its portfolio through the purchase of five daily newspapers and 17 weekly newspapers that were part of Masthead Maine. Former Masthead owner Reade Brower retained ownership of several weeklies that weren't part of the deal. The newspapers will now fall under the umbrella of the Maine Trust for Local News with the closing of the deal on Tuesday. Terms of the transaction were not disclosed. The deal, which covers all of the state’s daily newspapers except the Bangor Daily News, represents a trend toward a nonprofit business model as newspapers continue to struggle. “I wouldn’t say it’s sweeping the country but we’re seeing this trend. And it’s a healthy one. Commercial news organizations are struggling from loss of advertising revenue,” said Tim Franklin, senior associate dean and leader of the Local News Initiative at Northwestern University’s Medill School of Journalism. The transformation from a commercial business to a nonprofit was a positive outcome compared to other alternatives including corporate ownership that could have been more focused on making making cuts to maximize profits, executives told Portland Press Herald employees at a meeting and celebration in South Portland. “Too many corporate news owners across the country have abandoned their missions in the name of short-term profits. That will not happen here,” Steve Greenlee, editor of the Portland Press Herald, told The Associated Press in a statement. Former Masthead Maine CEO Lisa DeSisto, who will continue her leadership role as CEO and publisher of the Maine Trust for Local News, called the deal “an incredible outcome for our employees, our readers and the state of Maine.” “I worked lots of days in the newspaper business — this was the best one,” DeSisto wrote in an email after briefing workers at meetings in South Portland, Augusta, Waterville and Brunswick. Local news is in crisis with the nation losing a quarter of its newspapers since 2005 and advertising revenue declining by as much as 80% over a decade, Franklin said. Reade Brower, the newspapers' former owner, purchased MaineToday Media, the parent company of the Press Herald, the Kennebec Journal and Morning Sentinel, in 2015 and added newspaper groups and newspapers over the next several years. Brower, 66, announced in March he was considering selling his media holdings and he said Tuesday that he chose the “least disruptive” option for his workers. “I had other choices. This is the one that felt the best to me. I didn’t do this to create wealth. I did this to create a sustainable business. And that’s what I’ve done,” he said Tuesday evening. There is plentiful foundation and philanthropic money spent on digital startups and niche publications, so it's encouraging to see them purchasing a traditional entity with credibility instead of chasing something that's “shiny” and new, Franklin said. ___ Follow David Sharp on X, the platform formerly known as , @David_Sharp_AP
California firm to pay $1 million for selling devices to thwart diesel truck smog controls 2023-08-02 - A California company will pay $1 million for violating federal environmental laws by making and selling devices that defeated smog controls on diesel trucks SACRAMENTO, Calif. -- A California company will pay $1 million for violating federal environmental laws by making and selling devices that defeated smog controls on diesel trucks, prosecutors announced Tuesday. Sinister Manufacturing Co., Inc. of Roseville, doing business as Sinister Diesel, pleaded guilty Tuesday to conspiracy and to violating the Clean Air Act by tampering with the monitoring device of an emissions control system of a diesel truck, according to a statement from the U.S. attorney's office. Prosecutors said that for nearly a decade, Sinister sold products referred to as “delete devices” or "defeat devices" that were designed to bypass diesel truck emissions controls, along with software that could alter a truck's on-board computer so that it appeared to run normally. The company “also counseled customers on how to evade state emissions tests,” the U.S. attorney's office statement said. Such devices, which have been sold by several companies, are promoted as increasing horsepower. Some diesel truckers have used them to intentionally spew big black clouds of diesel exhaust, which is known as “rolling coal,” environmental groups have said. While Sinister marketed the devices as being geared for racing and off-road driving, the company knew most were used on public roads and at times a quarter of its gross revenue came from “delete” products, prosecutors said. “EPA testing has shown that a vehicle altered with these parts can emit more than 100 times the amount of certain harmful air pollutants, compared to a vehicle with an intact emissions control system," said Larry Starfield of the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. An EPA report in 2020 found that more than 500,000 diesel pickup trucks in the country had been illegally deleted, the U.S. attorney's office statement said. Diesel emissions can contribute to respiratory ailments such as asthma and lung cancer, and one study attributed 21,000 deaths a year to diesel particulate matter, according to the statement. “Environmental laws that control diesel pollution are especially important to protect sensitive populations such as the young, the elderly and people who suffer from respiratory conditions," said Phillip A. Talbert, U.S. attorney for the Eastern District of California. Sinister agreed to pay a $500,000 criminal fine and another $500,000 to settle a federal civil case. The company agreed it wouldn't make, sell or offer to sell delete products.
Millions of UK households missing essential bill payments, finds Which? 2023-08-02 - More people in the UK are missing payments for essential bills, including for energy, water or council tax, according to a consumer group, as the cost of living crisis continues to hurt household finances. Which?’s consumer insight tracker found that 2.4m UK households missed or defaulted on essential payments, including for housing, loans or credit cards, in the month to 13 July, returning to the high levels seen last winter. The number of people missing payments last month was significantly higher than the levels seen in May, suggesting that consumers remain under pressure even in the warmer months of the year when energy costs are lower. The figures come as the Bank of England is expected to further raise interest rates on Thursday, in an attempt to tackle stubbornly high inflation, increasing the squeeze on borrowers including consumers and businesses. Of the missed payments, 1.5m households missed or defaulted on settling a household bill such as for energy, water or council tax in the month to mid-July, Which? found. Two-thirds of those who missed payment of a household bill reported that this was not the first time. Water and energy were the most commonly missed bills, followed by phone bills and council tax payments. It is estimated that more than 770,000 households missed or defaulted on a housing payment, affecting just under 6% of renters and more than 3% of mortgage holders. Amid the squeeze on consumer finances, 59% of households said they had made changes to enable them to cover essential spending on bills, housing costs, groceries, school supplies and medicines in the past month, including by cutting back on essentials, dipping into their savings, selling some of their possessions or borrowing. Last week the poverty charity the Joseph Rowntree Foundation warned that millions of low-income families were taking out loans or using credit cards to cover basic household bills and expenses as their finances were squeezed by the cost of living crisis. Rocio Concha, director of policy and advocacy at Which?, said pressures on household finances appeared to be increasing, even though official figures show that inflation may have peaked. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “We’d encourage anyone who’s struggling to seek free debt advice and reach out to their bill provider for help,” she said. “As so many people face financial hardship, Which? is calling on businesses in essential sectors, like food, energy and telecoms, to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges during this crisis.” Ahead of an anticipated further interest rate rise, Which? is calling on energy companies, broadband providers and supermarkets to do all they can to help consumers through the cost of living crisis and ensure they are providing value for money to their customers. The bank Virgin Money also reported it had set aside more money for bad loans. Its bad debt provisions rose to £547m in the last quarter, up from £526m the previous three months.
Don’t obsess about football selling its soul to Saudi Arabia. It sold itself to big money long ago | Elliot Ross 2023-08-02 - Not long ago I had an instructive conversation with a football-mad 10-year-old from Belfast. We were walking by a beautiful lake in Donegal. I’d seen him proudly wearing a Liverpool kit on the dancefloor at our Liverpool-mad friend’s wedding the previous day, so I asked him about the ongoing English league season. As everyone knows, football is “a common language”, particularly for people from different generations or cultural backgrounds who might otherwise struggle to know what to talk about together. I asked him to name his favourite player (Mohamed Salah) and whether he thought Arsenal would be champions (he was certain they wouldn’t). He asked had I seen Cristiano Ronaldo’s latest goals? I confessed I had not. Ronaldo is smashing all the league records, he said, quoting the latest figures. Yeah, but it’s only the Saudi league, I interrupted. It’s not a proper league, is it? Who cares? He hesitated and offered a look of sincere puzzlement. Politely but firmly he resumed his recitation of the Al Nassr captain’s many accomplishments in the Saudi Pro League over recent months. I felt he was doing his best to explain the future of football to someone he could see was still attached to a hierarchy that was obviously crumbling. There’s a phrase that has long been used to describe football’s latest departure from its cherished traditions. “The game’s gone.” It has rarely felt quite so far gone as it does this summer, with the Public Investment Fund of Saudi Arabia turning its roaring cash-hose full force at the beautiful game. First it was Ronaldo from Manchester United, then Karim Benzema from Real Madrid and N’Golo Kanté from Chelsea. Now a gargantuan offer to Kylian Mbappé, a genuine superstar in his prime, has made global headlines and set off the kind of “engagement” from top athletes that must be the stuff of dreams for Riyadh’s social media managers. “I’m ready to unretire for this one year salary $776M,” tweeted Usain Bolt, along with the quizzical emoji. “Me headed to Saudi when they call [my agent] for that 1 year deal!” posted LeBron James above a gif of Tom Hanks sprinting headlong down a road in Forrest Gump. The “joke” is hardly new material. Even for the richest and most beloved people, money talks. There is much speculation as to the kingdom’s strategic objectives. Most suspect the plan may ultimately be to “buy” football, just as it has taken control of elite professional golf and increased investments, as documented by this newspaper, in boxing, cycling and Formula One. But is this a serious investment proposition aimed at diversifying and growing the assets of an oil-rich nation, or simply public relations? Does the “sportswashing” work by distraction, making Saudi synonymous with football, or simply by establishing the kingdom as an unavoidable presence in public life? ‘A gargantuan offer to Kylian Mbappé, a genuine superstar in his prime, made global headlines.’ Photograph: Martin Rickett/PA If sustained, the scale of the finance behind the Saudi Pro League means that, even if Mbappé follows Lionel Messi in choosing to play elsewhere, the flow of talent towards the highest pay on offer is now inevitable. If you want to watch the best players, consume the premium product, the Saudi league may soon be a fixture in your content mix. But will anything truly change in the relationship between the fans and a sport that could plausibly be under new ownership soon? Or is this merely a further debasement of an already utterly corrupted product that we’ll nevertheless keep on consuming? As the centre of power shifts, plenty of people who love football will simply borrow a phrase from Donald Trump (himself reputedly a fan of both soccer and the kingdom) and say: “I’ll still keep drinking that garbage.” Fans with attachments to domestic leagues in countries such as Brazil, Argentina, the Netherlands, Belgium or Scotland have seen this sort of thing before. Accelerating in the early 1990s, the successful commercialisation and marketisation to global TV audiences of a small number of powerful leagues led to an increased concentration of talent in England, Spain and Italy, directly at the expense of “smaller” leagues, which were turned into relative backwaters. The extractive relationship between European football and the African continent had been established long before, running directly along colonial lines. The rules of European competition were rewritten in the 1990s to further widen the gulf. The hoarding of talent may have hollowed out other leagues, but in England the Premier League is celebrated as a great national success story regardless. Subsequent attempts to protect the integrity of competition from the “financial doping” of petro-states and oligarchs have proved no match for the legal teams of alleged offenders. Most of us having long since given up on meaningful fan control. US billionaires, hedge funds and private equity companies are now widely regarded as a relatively bland, least-bad option as club owners. Crucially, for the most part they have politely chosen to keep elite football at “home” (ie in powerful European nations), allowing the illusion to persist that it is still “our” game, no matter how high the cost of tickets and subscriptions for us to be allowed to enjoy it. How clear is the ethical distinction between a game largely controlled by US, Russian and Qatari capital as opposed to Saudi? If you squint, you can still just about make out, through the continued existence of the football “pyramid” in particular, some meaningful connection between elite European soccer as a global entertainment product and the industrial communities that created the game as a working-class pastime and collectively developed it through a gradual, layered process over multiple generations into a permanent feature of popular culture alongside things like music, TV and film. Others will view a Saudi takeover as a natural next step for a sport that had its soul sold off long ago. You might think football belongs to the people, but rest assured it is already a minor, if particularly conspicuous, part of someone else’s diversified and sustainable investment portfolio. If there is comfort to be drawn from the experience of football’s past several decades, it is the limitless capacity of supporters to derive pleasure from the game and use it as the basis for meaningful connections with others – no matter how shamelessly wealthy interests have sought to exploit and co-opt our affection and enthusiasm.
Market rout after US credit downgrade; UK homebuyers taking out longer mortgages, says Taylor Wimpey – business live 2023-08-02 - 19m ago 10.45 BST Haleon posts higher sales; takes £30m restructuring charge Haleon, which makes a host of well-known consumer brands including Sensodyne toothpaste, Centrum vitamins and Panadol painkillers, has reported higher sales and profits - a year after it was spun off from drugmaker GSK. Revenues climbed 10.6% to £5.7bn while pre-tax profits rose 11% to £960m in the six months to the end of June. It now expects organic revenue growth of 7% to 8% this year, and adjusted operating profit growth of 9% to 11% at constant currencies. The company incurred restructuring costs of £30m, as it implements a three-year programme to save £300m in costs, with the benefits largely expected next year and in 2025. We reported last month that Haleon, which has 24,000 staff across 170 countries, intends to cut hundreds of roles in the UK and potentially thousands worldwide. It declined to provide further details today. Panadol maker plans sweeping job cuts a year after being spun off from GSK Read more Brian McNamara, the chief executive, said: One year from listing, we are very pleased with Haleon’s first half results. We delivered double digit organic revenue growth, with both price and positive volume mix. Encouragingly this trend was consistent across the first and second quarters. Our growth was also broad based across regions and categories. Performance in the first half also remained competitive with around 55% of our business gaining or maintaining share. Looking ahead, whilst we continue to expect a challenging environment given further pressure on consumer spending and global geopolitical and macroeconomic uncertainties, we remain confident in the resilience of Haleon’s incredible portfolio of category leading brands. Adam Vettese, analyst at trading and investing platform eToro, said: Haleon has posted a squeaky-clean set of numbers this morning, one year on from being spun out of GSK. The firm… has seen a positive uptick in revenues while increasing operating profits by 8.9%. It has now increased profit guidance four times in a row. This has been a familiar story in the past year for major name-brand consumer staples firms. The one thing that unites these companies is pricing power. Inflation has been passed on with no real dent to demand for firms like Haleon as the strong revenue growth suggests. In the past consumer staple brands have tended to be good value-oriented defensive moves for investors in times of economic stress. Haleon fits this mould well but since it is a spin-off, we don’t have a good past measure from the firm to guide what will happen to its demand during a recession. The company logo for Haleon is displayed on a screen on the floor of the New York Stock Exchange. Photograph: Brendan McDermid/Reuters 2h ago 09.33 BST US downgrade sends European shares to two-week lows It’s turned into a market rout. The FTSE 100 has tumbled 130 points, or 1.7%, to 7,533 while the German, Italian and French markets have lost 1.5%. The pan-European Stoxx 600 index fell 1.7%, touching its lowest level since 18 July. Laith Khalaf, head of investment analysis at the stockbroker AJ Bell, said: There is a saying that when the US sneezes, the rest of the world catches a cold. That is certainly true with how the US government’s credit rating downgrade has troubled markets globally. Ratings agency Fitch lowered the rating from the top level of AAA to AA+ amid concerns about the country’s finances and its debt burden. In effect, this is saying the US is now higher risk than previously thought. The news took markets by surprise, sending Asian and European indices down. When the debt of the world’s largest economy is seen as lower quality, it will naturally trouble investors and make them rethink their portfolios. It also might surprise some people given how the US economy is proving to be more resilient than expected. There are only three stocks in positive territory on the FTSE 100. BAE Systems jumped nearly 6% after upgrading forecasts on rising military spend. Taylor Wimpey’s results contained nuggets of good news, helping to lift its shares. Convatec moved higher after it lifted full-year guidance. Khalaf noted: Brent Crude advanced 0.6% to $85.45 a barrel, meaning the commodity price has now risen by 18% since the end of June amid signs of tightening supply. Justin Wolfers, professor of public policy and economics at the University of Michigan, tweeted: Fitch has downgraded the U.S. long-term credit rating from AAA to AA+. And I’m mad as hell, because it’s the direct result of a multi-decade campaign of fiscal vandalism and political sabotage by Republicans, and the rest of us are left footing the bill.https://t.co/7Bfm0nvbXE — Justin Wolfers (@JustinWolfers) August 1, 2023 Updated at 10.03 BST 2h ago 09.12 BST Market sell-off gathers pace The sell-off in stock markets has gathered pace, with the FTSE 100 index now down 1.5% at 7,48, a fall of 117 points. There are only three risers on Britain’s blue-chip index: BAE Systems, Taylor Wimpey and Convatec. Germany’s Dax has tumbled 203 points, or 1.3%, to 16,035 while France’s CAC has lost 81 points, or 1.1%, to 7,324 and Italy’s FTSE MiB is down 455 points, or 1.5%, to 28,901. Wall Street futures are also trading lower, pointing to a lower open later, down 1.2% for the Nasdaq, 0.86% for the S&P 500 and 0.67% for the Dow Jones. 2h ago 09.07 BST BAE upgrades outlook, boosted by higher defence spending Britain’s biggest defence company BAE Systems is the biggest riser on the FTSE 100 this morning, after it upgraded its outlook for 2023, boosted by increased government spending on military equipment “in an increasingly uncertain world”. The company’s shares rose 5.6%, after it forecast growth of 10% to 12% in annual earnings per share, up from 5% to 7% forecast in February, and also lifted its sales outlook. It had an order intake of £21.1bn in the first half of the year, resulting in a record order backlog of £66.2bn. It said demand from customers, including the US, UK, Saudi Arabia and Australia, meant its full-year results would be better than expected across the board. Since Russia’s invasion of Ukraine in February last year, demand for weapons, ammunition and military equipment has jumped as western countries support Ukraine and shore up their own positions. BAE makes submarines, fighter jets, ships, combat vehicles and other kit, and chief executive Charles Woodburn said the company was well-positioned to deliver “sustained growth in the coming years”. He said: Our global footprint, deep customer relationships and leading technologies enable us to effectively support the national security requirements and multi-domain ambitions of our government customers in an increasingly uncertain world. 2h ago 08.49 BST Taylor Wimpey: UK homebuyers take on longer mortgages UK homebuyers are taking on longer mortgages to cope with higher borrowing costs, said Taylor Wimpey, one of the country’s biggest housebuilders. It explained: More of our customers are adapting to the challenging backdrop by extending their mortgage terms. For example, according to data provided by an independent financial advisor relating to H1 2023, 27% of our first time buyers are taking mortgage terms of over 36 years compared to 7% in 2021. For second time buyers, those taking out mortgages with durations of over 30 years has increased to 42%, compared to 28% in 2021. The company reported lower first-half profits and sales as it warned that the Bank of England’s rate hikes, in response to stubbornly high inflation, had weakened the housing market and made homes less affordable to buy (for those needing a mortgage). But its shares rose 3.5% as the results were better than expected, and it stuck to its full-year outlook. Rivals Barratt and Persimmon also saw share gains. Andy Murphy, director at the investment research firm Edison Group, said: This update from Taylor Wimpey constitutes a clear case of “it could have been worse”, as a weakening property market and high operational costs having combined to put huge pressure on the construction sector during H1 2023. With the impact of the building hiatus, induced by Covid-19, still being felt by the industry, current market conditions are naturally taking their toll. That being said, tight cost management, strong brand awareness, and savvy operational maneuvers have helped to mitigate the effect of these external factors on Taylor Wimpey’s profits. Moreover, while not currently translating to strong market demand, the fact remains that Britain needs new homes and will continue to need new homes when mortgage rates stabilise. Current conditions are unfavourable, yes, but the question now is what position Taylor Wimpey will be in when the situation turns. Updated at 08.51 BST 2h ago 08.36 BST More people miss bill payments amid cost of living crisis Joanna Partridge Higher numbers of people are missing payments for essential bills including for energy, water or council tax, according to a consumer group, as the cost of living crisis continues to hurt household finances. Which?’s consumer insight tracker found that 2.4m UK households missed or defaulted on essential payments including for housing, loans or credit cards in the month to 13 July, returning to the high levels seen last winter. The number of people missing out on payments last month was significantly higher that the levels seen in May, suggesting that consumers remain under pressure even in the warmer months of the year when energy costs are lower. The figures come as the Bank of England is expected to further raise interest rates on Thursday, in a bid to tackle stubbornly high inflation, increasing the squeeze on borrowers including consumers and businesses. Of the missed payments, 1.5m households missed or defaulted on settling up a household bill such as for energy water or council tax in the month to mid-July, Which? found. A domestic gas ring of an oven in Durham. Photograph: Lee Smith/Reuters 3h ago 08.19 BST European stocks fall after Fitch surprise downgrade European stock markets have fallen following Fitch’s surprise downgrade of the US government’s triple-A credit rating. The UK’s FTSE 100 fell 66 points, or 0.86%, to 7,600 in early trading while the French and German markets slid 1.3% and the Spanish and Italian indices both lost 1.1%. The downgrade triggered a brief sell-off for the US dollar last night. The dollar index briefly dipped to an intra-day of 101.96 but the decline was quickly reversed. It is now down 0.1% at 102.19. US Treasury Secretary Yellen was quick to downplay the announcement, saying it was “arbitrary” and “outdated” and ”does not change what Americans, investors, and people all around the world already know: that Treasury securities remain the world’s preeminent safe and liquid asset, and that the American economy is fundamentally strong”. Lee Hardman, senior currency analyst at MUFG Bank, said: When S&P downgraded the US credit rating in August 2011 it triggered a sharp selloff in risk assets and boosted safe haven demand for US Treasuries. The US dollar reaction was more muted. On this occasion we are expecting the immediate market reaction to be relatively more modest. The timing of the downgrade was somewhat surprising although Fitch did warn back in May that they were weighing up lowering the credit rating. The announcement sheds more light on the health of the US public finances which we have already highlighted as a negative structural factor for US dollar performance over the medium to long-term. The US Treasury just announced on Monday that it has increased the net borrowing estimate for Q3 to $1 trillion which is well above the $733 billion it had predicted back in May. The Treasury is due to preview its quarterly financing plans later today. 3h ago 08.09 BST Energy bosses meet Grant Shapps amid debate over net zero The bosses of big energy companies are set to meet Grant Shapps, the energy security secretary, today to discuss the future of net zero as a debate rages over the UK government’s green policies. The meeting comes just days after the government announced it would grant more than 100 new oil and gas drilling licences off the coast of Scotland. The move was immediately condemned by climate campaigners as sending a “wrecking ball” through the government’s climate pledges. Executives from the utility companies EDF and SSE and the oil and gas giants Shell and BP are meeting Shapps, who has faced criticism from his own ranks, including former energy minister Chris Skidmore, who said it was “the wrong decision at precisely the wrong time, when the rest of the world is experiencing record heatwaves”. Shapps told GB News: I’m meeting today with a bunch of energy companies at No 10 who are going to invest £100bn in renewables, and that’s great. Secretary of State for Energy Security and Net Zero Grant Shapps during a visit to Teesside's Transmission System Gas Terminal in Middlesbrough yesterday. Photograph: Owen Humphreys/PA 3h ago 07.43 BST Here’s more reaction to the US credit downgrade. Tony Sycamore, analyst at IG, said this would spark a flight to safety among investors. Risk aversion flows means lower equities and safe haven buying of currencies such as the Japanese Yen and Swiss franc… It will also likely see buying of treasuries. Stephen Innes, managing partner at SPI Asset Management, said: Global Funds buy US debt because it’s the safest and most liquid investment option. However, after the rating downgrade on Tuesday, the US bond appeal could tarnish slightly. Still, the significant issue is that the downgrade could negatively affect various funding pipelines, such as mortgage rates and global swaps contracts. While debt downgrades seldom, if ever, have long legs, investors may pause and let the dust settle before re-entering risk markets. However, within this super market-friendly environment of stable growth and a Fed close to the end of its hiking cycle creating fertile ground for stock gains, its unlikely risk sentiment will wander too far off the soft landing path.
Loveholidays booking blunder ruined our vital family treat 2023-08-02 - I booked a £4,000 week in Morocco through Loveholidays to celebrate my 50th birthday and to treat the family after two recent bereavements. I paid extra for swim-up rooms in all-inclusive five-star White Beach resort in Taghazout. When we arrived, we were blown away, but our excitement was short-lived. The receptionist informed us that the hotel was now adults only, and our two children – a 12- and 15-year-old – could not stay. Apparently, booking agents had been notified months before, but Loveholidays had failed to mention it. Our children who, between them, have autism and ADHD, were confused and distressed. The receptionist would not let us make an international call to Loveholidays, so we had to cross a dual carriageway to withdraw cash, then buy an international sim card from a shop half a mile away. It took Loveholidays three hours to find alternative accommodation and we had to pay a taxi to take us to a four-star hotel half an hour away in Agadir. By then, six hours had passed since our arrival. We received an immediate refund of the £506.54 price difference. Loveholidays passed on my complaint to an intermediary booking agent, which informed us that it would pay £661 in “compensation as a symbol of our apology”. However, Loveholidays deducted the £506 refund it had paid us and only handed over £178. It has since offered me a £50 voucher for a future booking, but after this, I doubt I will ever use them again. AJ, Frodsham, Cheshire “Be bold; be flexible!” urges the Loveholidays website. In the light of your experience, this reads like a warning rather than an invitation. Your holiday was to be a vital balm for your family. Your partner had recently lost her mother whom she’d nursed for five years, your father had died unexpectedly two months later, and your sons were struggling to cope with the two bereavements. Because of the blunder, you lost most of the first day of your week-long holiday, suffered the stress of finding somewhere to stay and, after glimpsing the five-star luxury you’d booked, you had to adjust to an unexceptional hotel 20 miles away. The White Beach has six pools and four restaurants; the hotel where you ended up had one of each. I put all this to Loveholidays, but it remains adamant that £178, which includes the taxi, refreshment and phone costs, is a suitable sum to reflect the “inconvenience”. It claims the £660 compensation from the intermediary was not in addition to the refund for the price difference you’d already received, although it admits the wording was confusing, and promises an “internal review of processes”. In my view, the sum is derisory. However, other than give Loveholidays the publicity it deserves, there’s not much you can do. In 2020 the company resigned from membership of the Association of British Travel Agents (Abta), which has a code of practice and mediation service. The company points complainants to the alternative dispute resolution service, Hunt ADR. However, you have to request an application form from Loveholidays and pay Hunt ADR a non-refundable fee of £108. My advice to readers is to try to book with an Abta member and be aware that the price of a bargain may be skimpy customer service. Email your.problems@observer.co.uk. Include an address and phone number. Submission and publication are subject to our terms and conditions
How can the west best tackle the threat from China? First, it must stop panicking | Kerry Brown 2023-08-02 - In the figure of Xi Jinping, with his dominant political personality and assertive communicative style, many in the west have found the autocrat they always feared would one day confront them. For Xi and the people around him, combatting what his administration calls “western universalism”, and western attempts to infiltrate China’s politics through economic and cultural engagement, has been a major task. Now the Xi threat has come right into our own back yard. A recent report by the British parliamentary intelligence and security committee (ISC) defines the nature of Chinese intentions as “ambition at a global level – to become a technological and economic superpower, on which other countries are reliant”. This, it says, “poses a national security threat to the UK”. Its words align with those of the CIA and FBI in the US, who have in recent years regarded China as their greatest adversary. “Threat” is a vague term, though, and covers a spectrum of issues. We can be threatened by bad weather, or an unwanted visitor coming to disturb our peace. There are small threats, big threats and threats that exist more in perception than reality. In many cases, too, you can be threatened by things and people that have no real ability to do the things we fear they will. Indeed, more often than not, the biggest threat is our own fears. There is much about China that is a problem, for sure. Under Xi, the Chinese Communist party has been ruthless in dealing with internal dissent, closing down space for what was once legitimate domestic debate, and placing media and non-governmental organisations under huge restrictions. Much of this has spilled over to the outside world, with state agents pursuing their enemies across the world, prompting claims of China having police based abroad. Despite this, the ISC report imputes to China a level of coherent strategic intent and a threat so systemic and grave that it is flattering – at least to the people around Xi. In recent weeks we have seen plenty of evidence of how chaotic and divided even the upper reaches of the party can be: earlier this month the foreign minister, Qin Gang, went missing, and was soon after removed from power; and in recent days there has been an apparent purge of key military figures in sensitive sectors. But the threat could still be being exaggerated. One striking phenomenon in recent years has been that talk of China’s threat has increased almost in parallel with the decline of western self-confidence. The question is whether the former has caused the latter, or vice versa. I remember a banker in the City of London telling me during the 2008 global economic crisis that we had little to fear from Chinese money being invested in Britain, because it would need to be used in accordance with our rules and systems. That sentiment has evidently changed since then. Chinese investment is now seen as a key potential driver of Chinese state intentions and influence. Somehow, our confidence in our ability to engage with others, on our own terms and in our own space, has disappeared. Xi Jinping on a giant screen at the Military Museum of the Chinese People’s Revolution in Beijing. Photograph: Florence Lo/Reuters Attributing that shift to China would be to grant Beijing far more effectiveness than it deserves. The west has been the author of its own misfortune. It has dealt with a number of paradigm-shifting issues in the last 15 years, many of which have fuelled this erosion. The end of the interminable “war on terror” in Afghanistan was a particular case in point – a depressing retreat after spending trillions of dollars, leaving local people at the mercy of the very forces they had originally been liberated from. China watched this world-class demonstration of incompetence and inefficiency with a mixture of amazement and schadenfreude. So much for all those grand plans to spread liberty and democracy. The US and Europe cannot blame anyone else for that failure. But it is when looking at Russia that China’s leaders see the most powerful argument for being sceptical about western aspirations, and for proof of how far short of their objectives they can fall. The collapse of the USSR in 1991 struck a deep fear into Beijing, which was itself reeling from the 1989 protests, including Tiananmen Square. The west had a golden opportunity to show how post-communist rule could be better. But we know how it turned out for Russia – a decade of collapsing economic and human indicators, followed by the rule of Vladimir Putin and its dismal situation today. The west doesn’t trust China, for sure. But China has every reason to distrust the west, too, having seen the outcomes of its well-intentioned meddling, and its lack of capacity to follow through and bring about change for the better. A bit of self-reflection in the UK and elsewhere in the west might bring some understanding of our own inconsistent behaviour, and the ways we often mix lofty talk about values with the much earthier pursuit of our own commercial and material interests. This has resulted in a China that is far more certain on its feet, working out its own pathway and carving out its own space in the world as never before. It might be inconvenient, but it is not irrational. China is a hard global partner, but it is not a mad one. The mindset of the UK has clearly been challenged by the question of how to deal with China in an era when, for the first time in modern history, the economic, geopolitical and military advantages are increasingly with Beijing rather than London. There is a proclivity to moralise, finger-point and divert ourselves with fairy stories about the wicked communist leadership in Beijing, when in reality there is a far more complex problem – and no easy solutions. The MPs’ report makes plenty of recommendations. But one of the most effective and important it passes over in silence: that would be a clear and frank admission that the greatest threat to us from China is our own muddled, panicked state of mind, crediting a false level of coherence and strategic nous to Beijing in order to compensate for our own complacency, incompetence and lack of self-knowledge. Until we face up honestly to that, Xi and his colleagues will continue to have the upper hand, even as they grapple with domestic issues that are far more serious than any threats or condemnations emanating from the UK.
The biggest Western bank still operating in Russia gave its employees an extra $220 million over the last 6 months. That's an average of $24,000 per employee. 2023-08-02 - Raiffeisen Bank spent $220 million more in staff costs for the Russian market in the first half of 2023. The bump was due to higher salaries and social security costs, one-off payments, and increased headcount. The Austrian bank is the largest Western bank still operating in Russia. It's working on a spin-off. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Companies are exiting Russia in hordes — but one major Western bank just boosted staff pay at its Russian subsidiary. Staff costs at the Russian subsidiary of Austria's Raiffeisen Bank increased by 199 million euros, or $219 million, for the first half of 2023, according to the bank's half-year report released Tuesday. As the Vienna-based lender has nearly 10,000 staff in Russia, this would translate to about 22,000 euros, or just over $24,000, in payouts per employee in Russia. Raiffeisen said the increase in staff costs was the "result of higher salaries and social security costs, provisions for one-off payments, and an increase in headcount." The bank's Russian subsidiary added 331 staff in the first half of the year, per the report. And though the increase in headcount is minuscule, the bank's staff cost doubled during the reporting period, the Financial Times reported Tuesday. The bank did not break down the staff costs. Raiffeisen Bank — the largest Western bank still operating in Russia, per Reuters — is still profitable in the country. Profits after tax at Raiffeisen's Russian business rose 9% on-year to 685 million euros in the first six months of the year. In contrast, profits across the group dropped 24% over the period. However, the Australian lender is under increasing pressure to exit the Russian market over the Ukraine war. It said it is planning to do so. "We continue to work at full speed on two options for our business in Russia: a sale and a spin-off," said chief executive Johann Strobl on Tuesday, as he presented the bank's results for the first half of the year, per FT. "While we are working on these complex options, we are consequently continuing to reduce the business in Russia." Strobl said the bank is aiming to spin off its Russian business by the end of 2023. Even so, exiting Russia is complicated as the Kremlin is making it increasingly punitive to leave the country. "The market conditions for businesses in Russia are highly complex. The local and international laws and regulations governing the sale of businesses in Russia are subject to constant change," the bank wrote in its second-quarter report. The New York Times reported Monday that Russia's wartime economy is thriving due to state-backed efforts to boost growth — although the boom may not be sustainable amid sweeping sanctions. Raiffeisen Bank did not immediately respond to a request for comment from Insider sent outside regular business hours.
Rudy Giuliani, the likely 'Co-Conspirator 1' in Trump's latest indictment, took to Twitter for a rollicking 85-minute rant about the case — then got brutally roasted for it 2023-08-02 - Rudy Giuliani ranted about Trump's latest indictment during his Tuesday livestream. The former New York mayor is thought to be "Co-Conspirator 1" in the indictment. "If I'm a conspirator, I was a conspirator in performing completely legal acts," Giuliani claimed on Tuesday. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Former New York Mayor Rudy Giuliani took to Twitter on Tuesday for a rambling 85-minute livestream, where he made various wild claims about former President Donald Trump's latest indictment. "I can summarize this indictment very, very simply. It's not an indictment," Giuliani said in the latest episode of his show, "America's Mayor Live." He also claimed, in response to the 45-page grand jury indictment, that "there isn't a single fact" to prove that "Trump or anyone else involved in this, committed anything close to a crime." Trump was indicted on four federal charges in relation to the Capitol riot on Tuesday. Trump also faces accusations that he and six other unnamed co-conspirators tried to overturn the 2020 election. Giuliani is thought to be "Co-Conspirator 1," who the indictment refers to as an "attorney who was willing to spread knowingly false claims and pursue strategies that the Defendant's 2020 re-election campaign attorneys would not." "This is very hard to explain to you. This is very difficult for me. And it's not difficult for me because I am personally involved," Giuliani said during his show on Tuesday. "Today was another very, very bad day for those of us who used to believe and still cling to some extent to the idea that we're a country of laws," he added. Giuliani acknowledged on his show that people have asked him if he was one of the unnamed co-conspirators. "Well, first of all, if I'm a conspirator, I was a conspirator in performing completely legal acts. I know nothing at all of any kind that's incriminating with regard to Donald Trump or anyone else," Giuliani said. An hour into the show, Giuliani also alleged that there were double standards applied to him by the bar associations when he acted as Trump's lawyer. "If this was somebody else, they'd go nuts. If they indicted Hillary for this, they would go nuts. Free speech gone! Fascist Nazis!" Giuliani yelled into the camera. Giuliani's rant was summarily mocked by his critics on Twitter. "Relaxy Rudy, you're gonna melt your face off again," said one person on Twitter, referencing a press conference in November 2020 where hair dye could be seen running down Giuliani's face. "Co-conspirator 1 says what?" tweeted another person. "You should hold a press conference. Four Seasons Total Landscaping parking lot is probably available," a person on Twitter said. The tweet referred to a bizarre press conference held by Giuliani in November 2020, which was mistakenly held in the parking lot of a commercial landscaping business, instead of the similarly named luxury hotel. The latest Trump indictment is not the only legal issue Giuliani is facing — the former New York Mayor was accused of rape and sexual abuse in a lawsuit filed earlier this year. Giuliani's accuser, Noelle Dunphy, said she was working for him when he sexually assaulted her. Giuliani has denied the allegations made in the lawsuit. New transcripts show, however, that Giuliani made a series of lewd remarks to Dunphy, and, on other occasions, insulted Jewish mens' genitals, and accused Matt Damon and Michael Bloomberg of being gay. Giuliani did not immediately respond to a request for comment from Insider sent outside regular business hours.
Wild transcripts show Rudy Giuliani made lewd comments to his rape accuser, insulted Jewish mens' genitals, and accused Matt Damon of being gay 2023-08-02 - Rudy Giuliani denied "supposed sexual proclivities" in a response to a sex-abuse lawsuit earlier his year. But new transcripts of recordings show him making lewd remarks to his accuser. Giuliani also admitted to an affair, used an anti-gay slur, and claimed Jews have small penises, transcripts show. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy After Noelle Dunphy filed a lawsuit against Rudy Giuliani earlier this year accusing him of rape and sexual abuse, he denied everything. The two were in a brief consensual relationship, and anything more than that was flat-out false, he claimed. Newly filed transcriptions of multiple encounters throughout 2019, however, paint a different picture. In June, the former New York mayor and lawyer for ex-President Donald Trump asked the judge overseeing the case to strike portions of her lawsuit and sanction her and her lawyer. He claimed that allegations about romantic affairs, discriminatory remarks, and his "supposed sexual proclivities" regarding Dunphy were false and meant to "portray Mr. Giuliani as a sexual deviant." But the transcripts, which were certified by a court reporting agency, back up portions of Dunphy's account. In conversations with her, Giuliani admitted to an affair with alleged former mistress Maria Ryan, used a discriminatory slur for gay people, insulted Jews, and had a number of horny interactions. "Come here, big tits. Come here, big tits. Your tits belong to me. Give them to me (indiscernible). I want to claim my tits. I want to claim my tits. I want to claim my tits. These are my tits," Giuliani told Dunphy on March 12, 2019, according to one transcript filed as a court exhibit. The transcripts were filed as part of a response from Dunphy's lawyer, Justin Kelton. He argued that none of the lawsuit should be stricken from the court record, and that Giuliani and his attorney should be sanctioned for falsely denying Dunphy's claims. A representative for Giuliani didn't immediately respond to a request for comment sent outside normal business hours. An affair, sapiosexuality, and the f-slur Dunphy's explosive lawsuit alleged that Giuliani frequently forced her to perform oral sex and sexually abused her in other ways while dangling job offers that never materialized. She also alleged Giuliani sought her help in getting people to pay millions of dollars to purchase pardons from then-President Trump and, while facing a federal criminal investigation, instructed her not to speak with the FBI. In Tuesday's filings, Kelton stands by the allegations. He said that multiple recordings exist to back them up. "For the avoidance of doubt, Ms. Dunphy is in possession of multiple additional recordings that prove her allegations about these matters, but submits only a handful of straightforward examples in the interest of efficiency and economy," Kelton wrote in a motion. Some transcripts appear to show Giuliani making highly sexually charged remarks to Dunphy. "I want to own you, officially," Giuliani told Dunphy according to a March 4, 2019 transcript, punctuated by her affirmative response. "Legally, with a document." In a transcript dated August 18, 2019, Giuliani revealed sapiosexual feelings — which he said was a departure from his past sexual preferences. "I can't think about you or I get hard," Giuliani told Dunphy, according to the transcript. "Even -- even if I think about how smart you are, I'll get hard. I'd never think about a girl being smart. If you told me a girl was smart, I would often think she's not attractive." Rudy Giuliani. Alex Wong/Getty Images In Giuliani's June filing, he denied having an affair with Ryan, a woman who his ex-wife identified as his mistress during divorce proceedings in 2018. But in a transcript of an apparent December 2019 conversation with Dunphy, Giuliani spoke wistfully of his relationship with Ryan. Giuliani appeared puzzled by the friendship he developed with her husband, who he identified as a right-wing ex-Marine who is "a very talented painter" but "a little bit lazy." "This is the weirdest fucking thing. We've had this like, affair for two years and I'm friendly with her husband," Giuliani told Dunphy, according to the transcript. "Can't even figure it out." Giuliani spent Thanksgiving with them at one point, he said in the conversation. Ryan couldn't immediately be reached for comment. "She has this tremendous connection to her family, and she loves me. But she can't leave her family, including her husband," he said, according to the transcript. "So, I had Thanksgiving dinner with them again. Bob made Thanksgiving dinner for me." Giuliani appeared to make bizarre remarks about well-known figures. In one recording, he claimed then-presidential candidate Michael Bloomberg was gay. Bloomberg has been in a relationship with a woman for more than 20 years. And in a conversation where he struggled to identify a politically conservative actor, he also claimed Matt Damon was gay and used a slur. "Matt Damon is a f--. Matt Damon is also 5'2. Eyes are blue. Coochie-coochie-coochie-coo," he said according to one transcript. Damon has been married to his current wife for nearly 20 years. According to other transcripts, Giuliani claimed Jewish men have small penises compared to Italians (Giuliani is Italian) and complained about Jewish religious holidays. He was particularly irked about Passover, a holiday where Jews celebrate the exodus from slavery in Egypt as recounted in the Torah. "Jews. They want to go through that freaking Passover all the time. Man, oh, man. Get over the Passover. It was like 3,000 years ago," Giuliani said, according to an April 1, 2019 transcript. "Okay, the Red Sea parted. Big deal. Not the first time that happened."
Trumpworld is roiling over the possibility that more of their dirty secrets could be revealed if the 6 co-conspirators named in Trump's latest indictment get hauled up too: NYT's Haberman 2023-08-02 - Journalist Maggie Haberman told CNN that Trumpworld has been rattled by Tuesday's indictment. "He is very upset. Folks around him are very upset," Haberman told CNN. Haberman believes more details could be revealed if Trump's co-conspirators are charged. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Former President Donald Trump and his inner circle are upset and alarmed that more secrets about what they've done could come out because of Tuesday's indictment, per The New York Times journalist and Trump biographer Maggie Haberman. "He's much more rattled than he is projecting," Haberman told CNN's Kaitlan Collins on Tuesday. "Everything with him is about appearances, and he wants to give off the appearance that everything is fine," On Tuesday, the former President was indicted on four federal charges in relation to the Capitol riot. Trump also faces accusations that he and six other co-conspirators tried to overturn the 2020 election. "He is very upset. Folks around him are very upset," Haberman told CNN. "On the one hand, they were relieved reading this indictment that there were not more details that they didn't know that were in it. On the other, there was a reference to six co-conspirators, and that raises questions about: Will anyone else face charges, and will more details be revealed if that happens?" Haberman believes there could be more bombshell revelations down the right, given the sprawling nature of the investigation. "You are seeing in this, this sprawl around Trump's world. How many people this indictment touches on, and I think that that always creates a sense of anxiety for Trump, because, as we said before, he likes to project control and have control so much," Haberman told CNN. Haberman enjoyed intimate access to Trump when she wrote a biography about him, "Confidence Man: The Making of Donald Trump and the Breaking of America." "I love being with her, she's like my psychiatrist," Trump told his aides, according to an excerpt from Haberman's book published in The Atlantic in September. A representative for Trump did not immediately respond to a request for comment from Insider sent outside regular business hours.
The new Trump indictment takes aim at his closest allies. They can save themselves by flipping against him. 2023-08-02 - The new indictment against Donald Trump refers to six unindicted co-conspirators. Prosecutor Jack Smith's case could be stronger if any of them flipped into cooperating witnesses. The last time a prosecutor tried flipping people close to Trump, it didn't go too well. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Loading Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Donald Trump didn't do it alone. According to the new federal indictment against him, brought by Justice Department Special Counsel Jack Smith, Trump had six criminal co-conspirators. Those people helped him with his failed conspiracy to block Congress from certifying now-President Joe Biden's victory in the 2020 election and keep him in power, the indictment alleges. The identity of co-conspirator 6, referred to in the indictment as "a political consultant" who helped put together a plan to put forth fake electors to Congress, isn't immediately known. The identities of the other five alleged co-conspirators are more clear. All of them are fervid Trump allies. Any of them — if they could be flipped against Trump — could help nail him. Smith is also overseeing a separate prosecution against Trump and two alleged co-conspirators related to the ex-president's hoarding of government documents. Notably, he didn't bring indictments against any of the six co-conspirators in this new case. At a press conference Thursday night, he ignored a question from a reporter who asked him why. There are a number of possibilities. Smith could have secret immunity deals in place with any of them, or could be negotiating such deals. Maybe he wanted to indict Trump first and reference the co-conspirators to place swords of Damocles over their heads, pressuring them to cooperate in the future. Or perhaps Smith just wanted to do more investigating before bringing more charges. But it's clear that cooperation from any of these six people would be extremely valuable to the prosecution. "The strategy in not charging them now is to put pressure on them and get them to cooperate and ultimately flip on Trump," Neama Rahmani, the president of West Coast Trial Lawyers, said. "The other alleged co-conspirators could be charged in the future. We just saw that happen in the classified documents case, with a new defendant charged last week." Smith could use someone on the inside As Sarah Krissoff, a former federal prosecutor, told Insider, the charges against Trump are complicated and involve esoteric legal theories. A former president has never been charged before with trying to obstruct Congress from certifying an election. It's a difficult case to explain to a jury. "Most folks dont even understand the electoral college," Krissoff, now a white-collar defense attorney at Cozen O'Connor, told Insider. The five known alleged co-conspirators are: Rudy Giuliani, Trump's personal lawyer who baselessly advanced conspiracy theories about the election in court and in public; Sidney Powell, a conspiracy theorist who pushed some of the same theories with Giuliani and on her own; Jeffrey Clark, a Justice Department official who tried open investigations into nonexistent election fraud; and John Eastman and Kenneth Chesebro, two lawyers who tried to overturn the election with discredited legal theories. All of them have been sanctioned by legal bodies or are in the middle of disciplinary proceedings. Out of those five, only Giuliani has testified before the Washington, DC-based grand jury examining election interference, according to an exhaustive list compiled by CNN. In a statement following Giuliani's grand jury appearance last month, his spokesperson, Ted Goodman, denied that he flipped against Trump. "In order to 'flip' on President Trump — as so many in the anti-Trump media are fantasizing over — Mayor Giuliani would've had to commit perjury because all the information he has regarding this case points to President Trump's innocence," Goodman said. Former New York City Mayor Rudy Giuliani is an unindicted co-conspirator in the new indictment. REUTERS/Andrew Kelly Giuliani, who has many of his own legal problems for trying to overturn the election results, has steadfastly stood by Trump. He's claimed that he believes Trump has a "good faith basis" for his actions following his election loss. In defamation lawsuits and legal sanctions proceedings, he's maintained that he had good reason to believe the results were inaccurate. On Twitter, Powell has maintained the fiction that the election was rigged and Clark continues to express frustration that then-Attorney General Bill Barr didn't open investigations into the 2020 election results. Eastman has downplayed his role in the White House while allying with right-wing politicians, and Chesebro has maintained a low profile while his attorney argues he was simply doing his job as a lawyer. Much of the indictment makes the argument that Trump knew the 2020 election wasn't rigged, but that he plotted to overturn the results anyway. The indictment doesn't reference any memos or text messages from Trump laying out elements of his plan, as you might expect in a criminal conspiracy case. Proving his intent, Krissoff said, will involve a lot of trial testimony from other people who were in the room with him. "This case is gonna be essentially testimony based, this will require testimony of incredibly large number of very powerful people," Krissoff said. The testimony of an apologetic co-conspirator who helped Trump out with his plans? All the more persuasive for a jury. Prosecutors have struggled to get witnesses to flip against Trump The pressure put on Trump's associates has echoes of another criminal investigation into Trump, into his finances. Manhattan District Attorney Alvin Bragg was the first prosecutor to indict Trump, earlier this year. He brought 34 counts of falsifying business records related to hush-money payments made to Stormy Daniels ahead of the 2016 election. Bragg may still bring more charges against Trump (the ex-president pleaded not guilty and is scheduled to go to trial in March). But the Stormy Daniels charges were limited in scope compared to compared to the overall scope of the investigation. The office, in an investigation started by Bragg's predecessor, Cyrus Vance Jr., examined whether Trump and his company broke tax, bank, and insurance fraud laws by manipulating property values. Prosecutors spent years trying to pressure the Trump Organization's longtime chief financial officer Allen Weisselberg to flip into becoming a cooperating witness, even digging into his children. Former Trump Organization CFO Allen Weisselberg. Michael M. Santiago/Getty Images As the investigation was ongoing, Trump publicly sent warnings to anyone who might flip in an investigation. "I've seen it many times. I've had many friends involved with this stuff. It's called 'flipping,' and it almost ought to be illegal," he said in a 2018 interview with Fox News. "You get 10 years in jail, but if you say bad things about something ... now you go from 10 years to, 'They're a national hero.'" In the end, Weisselberg never really flipped. The Manhattan district attorney's office charged Weisselberg and the Trump Organization with a litany of white collar crimes in 2021. Weisselberg pleaded guilty and testified against the Trump Organization. But, in a bizarre courtroom display, his testimony appeared deliberately wishy-washy. He coordinated his testimony with the Trump Organization's defense attorneys and was still on the company's payroll with the chance of a raise. On the witness stand, Weisselberg testified he never talked with any member of the Trump family about cooking the company's books. Even the prosecutors who summoned him to testify cast doubt on his under-oath claims. Prosecutors never did get the evidence they would have needed to bring criminal charges against Trump for his conduct. Instead, the New York Attorney General's office, which coordinated with the district attorney, brought a civil lawsuit against Trump and his company that remains pending. It's easy to imagine a similar situation happening here. Any of the six co-conspirators could make the calculation that it's better to stick with Trump than turn against him. Once a Trump ally, Michael Cohen turned against his former boss. AP Photo/Mary Altaffer After all, Trump is running in the 2024 presidential election. If he wins, he's promised to purge the Justice Department of perceived enemies and would likely pardon many people in his orbit, just as he did before he finished his first term. Any other Republican candidate who might win the nomination may also promise to protect Trump and his allies in a bid to get his supporters' votes. The co-conspirators may even cross more legal lines and lie to the FBI to protect Trump, risking obstruction charges, as Rahmani, a former federal prosecutor, suggested "These are lawyers, you would think they're not as stupid, but you never know," he said. On the other hand, if the six people do cooperate, it could make their lives easier. They have a chance of reaching a deal where they'd plead guilty to lesser charges, or Smith could promise to recommend a lighter sentence in light of their cooperation. The actual sentence is ultimately up to a judge. The Justice Department could also possibly give them immunity in the case, but Krissoff said that would be unlikely given their important roles in Trump's plans, Krissoff said. "For folks who have significant criminal liability, the general philosophy of the DOJ is they make them take responsibility for that conduct and they have to plead guilty," Krissoff said. Flipping against Trump, of course, also has its risks. Just look at Michael Cohen, who faces the ire of his MAGA fanbase on the internet every day, pointedly wasn't pardoned at the end of Trump's term, and spent years embroiled in various legal controversies. Turning against Trump, in these circumstances, also guarantees political homelessness. It is hard to imagine, for example, the left embracing someone like Powell or Giuliani, even if they decided to testify against him.
Stocks Drop as Weak Earnings, China Hurt Sentiment: Markets Wrap 2023-08-01 - (Bloomberg) -- Stocks dropped as a flurry of negative earnings updates tested the recent bullish mood among investors. The dollar gained. Most Read from Bloomberg BMW AG dropped almost 5%, as auto stocks led declines in European equities, after the car maker warned of rising costs. Hedge fund firm Man Group Plc slumped as core net revenue missed estimates. Disappointing guidance dragged down logistics giant DHL Group, while miners fell on weak China data. US equities futures were lower after the S&P 500 closed at a 16-month high on Monday, while the Nasdaq 100 notched its longest streak of monthly gains since August 2020. Zoominfo Technologies Inc. slumped 20% in premarket trading after the software company cut its revenue forecast. HSBC Holdings Plc provided one of the bright spots in Tuesday’s company results, rising after the bank announced a new share repurchase program and earnings that outpaced estimates. BP Plc rose as its dividend and buyback outweighed disappointing profit. There are signs of a pause in the upbeat tone that has boosted equities this year, as traders prepare for major risk events in the next few days, including a Bank of England interest rates decision on Thursday and US employment figures Friday. The line-up of blockbuster earnings still to come before the week is out includes tech heavyweights Apple Inc. and Amazon.com Inc. “When we look forward from here, we feel that the drivers for the rally may become a little bit more mixed,” said Karim Chedid, head of EMEA iShares investment strategy at BlackRock International. “We still don’t feel that the trough in earnings has come yet. Whilst the macro picture has been stronger than expected, there is no doubt that the tightening from central bank policy is starting to come through.” Story continues The buoyant mood of the past months on Wall Street has prompted a retreat among bears as market returns and economic data continue to challenge expectations. The S&P 500 just received its most bullish outlook from Oppenheimer Asset Management, which predicts further strength in stocks as the Federal Reserve nears a pivot and the US economy stays resilient. Chief Investment Strategist John Stoltzfus raised his year-end price target on the index to 4,900, leaving room for a near 7% advance through the end of the year, the most bullish among Wall Street strategists tracked by Bloomberg. The S&P 500 would end the year about 28% higher if his forecast materializes, the best performance since 2019. Aussie Dollar Treasury 10-year yields traded near 3.96% while a gauge of dollar strength climbed by about 0.3%. The Australian dollar declined against the greenback after the nation’s central bank unexpectedly held interest rates unchanged and traders pared bets on further tightening. In China, home sales plunged by the most in a year last month, underscoring why policymakers need to address faltering demand and a liquidity crunch in the sector. Caixin PMI figures showed factory activity contracted in July, missing economists’ estimates for a small expansion. The yen traded weaker against the dollar, adding to Monday’s decline, amid sluggish demand at a 10-year bond auction. While investors had earlier anticipated that the Bank of Japan is moving toward letting yields rise after a tweak to its yield-curve control policy, it bought bonds on Monday to anchor rates. Key events this week: Eurozone S&P Global Eurozone Manufacturing PMI, unemployment, Tuesday US construction spending, ISM Manufacturing, job openings, light vehicle sales, Tuesday China Caixin Services PMI, Thursday Eurozone S&P Global Eurozone Services PMI, PPI, Thursday Bank of England rate decision, Thursday US initial jobless claims, productivity, factory orders, ISM Services, Thursday Eurozone retail sales, Friday US unemployment rate, non-farm payrolls, Friday Some of the main moves in markets: Stocks The Stoxx Europe 600 fell 0.5% as of 10:28 a.m. London time S&P 500 futures fell 0.3% Nasdaq 100 futures fell 0.4% Futures on the Dow Jones Industrial Average fell 0.3% The MSCI Asia Pacific Index fell 0.1% The MSCI Emerging Markets Index fell 0.2% Currencies The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.2% to $1.0972 The Japanese yen fell 0.3% to 142.70 per dollar The offshore yuan fell 0.4% to 7.1731 per dollar The British pound was little changed at $1.2828 Cryptocurrencies Bitcoin fell 1% to $28,929.03 Ether fell 1.1% to $1,832.7 Bonds The yield on 10-year Treasuries was little changed at 3.96% Germany’s 10-year yield advanced one basis point to 2.50% Britain’s 10-year yield advanced two basis points to 4.33% Commodities Brent crude fell 0.3% to $85.20 a barrel Spot gold fell 0.4% to $1,956.78 an ounce This story was produced with the assistance of Bloomberg Automation. --With assistance from Ishika Mookerjee, Richard Henderson and Sujata Rao. Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.
Strategists Scramble to Catch Up as S&P 500 Rally Rumbles On 2023-08-01 - (Bloomberg) -- There’s a shift in tone happening across Wall Street. Most Read from Bloomberg Oppenheimer Asset Management’s Chief Investment Strategist John Stoltzfus lifted his target on the S&P 500 index to a Street high, a day after Morgan Stanley’s Michael Wilson, one of the market’s leading doomsayers, sounded less bearish than usual. Stoltzfus now sees the S&P 500 index hitting 4,900 by the end of the year, leaving room for another 7% gain. The target would mark a new record for the gauge, and one that plays out against bearish predictions by bigwigs such as Wilson, JPMorgan Chase & Co.’s Marko Kolanovic and Bank of America Corp.’s Michael Hartnett. They were all blindsided by the resilience of the US economy and the sudden emergence of the artificial intelligence-driven tech rally. US equities have soared this year as investors looked past the earnings recession, growing confident that the economy would avoid any serious slowdown while anticipating less hawkish monetary policy. Even so, the most recent median forecast among Wall Street strategists tracked by Bloomberg still showed a decline for the index by year-end. “A broadening of the rally across S&P 500 sectors suggests that the bull market that emerged from the October 2022 lows has legs to run higher into 2024,” Stoltzfus said. He correctly predicted US stocks would rally in October last year, when he remained bullish on equities amid resilient economic fundamentals, though the S&P 500 ended 2022 slightly lower than his target for that year. “The Fed’s rate cycle now appears to be closer to a pause or an end than it has been since March of 2022,” Stoltzfus said. The S&P 500 would end the year about 28% higher if Stoltzfus’s prediction materializes, which would be the best performance since 2019 — when US stocks were tracking the same path as they are now, according to Morgan Stanley’s Wilson. Story continues Meanwhile, Citigroup Inc. strategist Scott Chronert also shifted to the bull camp as he raised his target to reflect the increased probability of a soft landing. That came just one month after he said the S&P 500 rally will run out of steam. “The near-term hurdles we envisioned headed into the third quarter are now behind,” Chronert wrote in note to clients late Friday. “No doubt, these new targets will be perceived as chasing the year-to-date move in the S&P 500.” The rally this year has been such that the bear market that engulfed the S&P 500 is a mere 230 points from being completely erased. And if the index completes a round trip by September, it will make a full recovery twice as fast as the average of the previous 12 cycles, data compiled by Bloomberg shows. In recent weeks, Wilson has acknowledged that he was wrong in his call for 2023. Still, he’s stuck to his year-end target for the S&P 500 of 3,900, implying a 15% drop from from where it’s currently trading at around 4,590. Kolanovic at JPMorgan meanwhile said the defiant run in equity markets on bets of continued economic expansion and imminent rate cuts by global central banks is at best wishful thinking. “We remain skeptical of this outcome, anticipating the inflation decline to prove incomplete, leaving restrictive policies in place that should increase private sector vulnerabilities and end the global expansion,” the chief market strategist wrote. --With assistance from Michael Msika and Sagarika Jaisinghani. Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.
Billionaire Kretinsky in talks to buy Atos unit in $2.2 billion deal 2023-08-01 - Logo of Atos is seen on a company building, in Nantes By Mathieu Rosemain PARIS (Reuters) -Czech billionaire Daniel Kretinsky is in talks to buy Atos's loss-making legacy operations in a 2 billion-euro ($2.20 billion) deal that will refocus the struggling French company on its cybersecurity and cloud assets, and cut its debt. Kretinsky, who made his fortune in the energy sector, is expanding his vast empire in Europe and has been on a buying spree in France, setting his eyes on assets ranging from French retailer Casino to Vivendi's publishing group Editis. A sale of the Tech Foundations business, which offers infrastructure management services, would end Atos's initial turnaround plan to split the group into two listed entities. Following the sale to Kretinsky's EP Equity Investment (EPEI) vehicle, the Tech Foundations business will use the Atos brand, while the current listed entity will group the assets the French state deems strategic, such as cybersecurity unit BDS and supercomputers, under the name Eviden. Atos also said on Tuesday that it plans a 900 million-euro share sale to further shore up its balance sheet. The company said 180 million euros of the shares in the capital raise would be reserved for EPEI, giving it a 7.5% stake in Eviden. The sale of the remaining 720 million euros of new shares will be underwritten by BNP Paribas and JP Morgan, the company said. Atos said it aimed to halve its leverage ratio by end 2025 to two times its core operating profits. The expected sale would bring in 100 million euros in cash and cut 1.9 billion euros worth of liabilities from the tech company's balance sheet, Atos said. The sale gives an enterprise value of 2 billion euros to the sold division, which generated 4.5 billion euros of core revenue last year and employs 52,000 people. Atos's shares were up by 8% at 0910 GMT. Its stock value has cratered in recent years from almost 100 euros in late 2017 to around 10 euros on Tuesday. The company had announced a 1.6 billion-euro split in June last year to regain investor confidence after several severe setbacks and governance instability. Story continues Atos also announced the departure of Chief Financial Officer Nathalie Senechault, who had held the top spot for one year. Incoming CFO Paul Saleh, just a few days on the job, was on the call with analysts on Tuesday morning. ($1 = 0.9095 euros) (Reporting by Mathieu Rosemain and Sudip Kar-Gupta; Editing by Edmund Klamann and Sharon Singleton)
BP Caps Big Oil Earnings Season With Focus on Cash for Investors 2023-08-01 - (Bloomberg) -- BP Plc hiked its dividend and promised to buy back more shares, capping a second-quarter earnings season that has seen Big Oil continue to prioritize returns to investors. Most Read from Bloomberg The London-based company raised its dividend by 10% and said it would buy back another $1.5 billion of shares, even as its profit fell by more than expected. It was following the pattern set by Shell Plc, TotalEnergies SE, ExxonMobil Corp. and Chevron Corp., all of which have kept the cash flowing back to their shareholders even as the surge in energy prices that spurred last year’s record earnings has abated. BP’s returns are now well in excess of the company’s guidance. It had previously indicated that it expected to buy back about $4 billion of shares and raise the dividend by 4% each year, assuming the price of Brent crude was about $60 a barrel. Over the past 4 quarters the company has repurchased $10 billion of shares and increased its dividend by a fifth. “This is surprising given the weaker underlying result and an increase in net debt,” Redburn analyst Stuart Joyner said in a note on Tuesday. “But with the sector increasingly trading on yield again, it could boost the shares this morning.” Shares of the company rose 1.51% to 490.30 pence as of 9:11 a.m. in London. These large cash payouts have drawn some criticism at a time when many countries are grappling with a cost-of-living crisis and the world needs huge amounts of investment into low-carbon energy to tackle climate change. BP has pledged to boost spending on both oil and gas and renewables. BP’s second-quarter adjusted net income was $2.59 billion, down from $8.45 billion a year earlier and below the average analyst estimate of $3.51 billion. Story continues “The miss is concentrated in refining,” Chief Executive Officer Bernard Looney said in an interview with Bloomberg. “Margins were quite weak, particularly in diesel” in Europe and at its Whiting refinery in the US. BP also “had a lot of maintenance that we planned to do this quarter” and oil trading profit was weaker, Looney said. The buyback and dividend increase against a backdrop of weaker earnings had one important side effect — higher debt. Net debt rose more than $2 billion from the previous quarter to $23.7 billion, although that’s still much lower than a few years ago. BP is sticking to its plan for capital expenditure of $16 billion to $18 billion this year. So far it’s spent $7.9 billion, putting it on pace to reach the lower end of this range. “BP’s 10% dividend increase and $1.5 billion buyback tranche for the third quarter (versus $1.75 billion in the second quarter) are positive surprises that will bolster confidence in the payout for the second half.” — Will Hares, BI global energy analyst Gas trading had another “exceptional” quarter, although earnings dropped a little from the first three months of the year due to declining volatility, Looney said in an interview with Bloomberg TV. Europe’s gas market looks like it will be in a better place in the coming winter, although the region is “not out of the woods yet,” he said. Oil demand has been “incredibly resilient” and OPEC+ is sticking to its pledged production cuts, giving a strong outlook for crude prices in the coming months, Looney said. --With assistance from Will Kennedy. Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.
HSBC raises outlook as profits nearly double 2023-08-01 - Hong Kong CNN — HSBC’s profits have soared as it continues to cut costs and cash in on high interest rates around the world. Europe’s biggest bank said Tuesday that pre-tax profit grew by $4.1 billion to $8.8 billion in the second quarter compared to the same time a year before. That trumped analyst expectations of about $8 billion. Revenue also rose by $4.5 billion to $16.7 billion. The strong performance led the London-based lender to raise its outlook for the rest of the year, citing the current consensus for global interest rates. HSBC (HSBC) now projects a return on tangible equity — a key measure of profitability — “in the mid-teens for 2023 and 2024, which excludes the impact of material acquisitions and disposals,” it said. That compares with a target of “at least 12%” the bank had set out in May. The lender also said its board had approved a second interim dividend for shareholders of 10 cents per share. The payout would come on top of an existing quarterly dividend of the same value. HSBC’s results over the past year have shown a steady recovery from the pandemic. In May, the lender revealed a tripling of quarterly profit, in part due to high interest rates and a provisional gain it expected from buying the UK arm of failed US lender Silicon Valley Bank. In a sign of renewed confidence, HSBC said Tuesday it would conduct another share buyback of up to $2 billion, following similar announcements in recent months. HSBC shares rose 1% in Hong Kong Tuesday following its earnings release. The bank has been on a stringent cost-cutting drive in recent years, turning more to automation and shedding thousands of jobs and billions of dollars in assets. In June, it also announced plans to halve the size of its global headquarters and move out of London’s famed Canary Wharf. Altogether, the lender’s strong performance in the first half was “driven mainly by higher net interest income in all three global businesses due to interest rate rises,” CEO Noel Quinn said in a note to shareholders. However, that sheen from rate hikes is coming under scrutiny. On Monday, a UK regulator said banks needed to do more to share the benefits of high interest rates with their customers as critics point out that many savings rates haven’t kept up with interest rates. In a report, the Financial Conduct Authority said the nation’s top nine financial service providers, including HSBC, Barclays and NatWest, had on average “passed through only 28% of the base rate rise, compared to an average of 80% between 2004 and 2009” for the majority of cash savings accounts. “The pace and scale at which firms pass through higher interest rates to savers needs to improve … especially at a time of higher cost of living,” said the agency.
Japan's Nomura Q1 profit soars on strong domestic stock market 2023-08-01 - Summary Companies April-June profit came in at 23.33 bln yen BOJ's policy tweak could be "a major tailwind" Profit at wholesale division plunges due to slow trading TOKYO, Aug 1 (Reuters) - Nomura Holdings Inc (8604.T) on Tuesday reported a jump in first-quarter net profit as a strong Japanese stock market helped the country's biggest brokerage and investment bank attract money from global investors. Renewed investor interest in Japanese stocks, driven by hopes for an end to deflation and a corporate drive for better capital use, boosted Nomura's assets under management as well as its retail client assets to record highs. "We had a market tailwind," Chief Financial Officer Takumi Kitamura told a media briefing. "The Bank of Japan's policy tweak, a rise in corporate action and a new tax exemption scheme for individual investors together are likely to keep the momentum going in the Japanese bond and stock markets," he said. Nomura's April-June profit came in at 23.33 billion yen ($163.42 million) versus 1.696 billion yen a year earlier, when fears of slowing global economic growth hit financial markets and forced investment portfolio writedowns at the Japanese firm. But the quarterly profit is a small fraction of Nomura's core pretax income target of 288 billion yen for the year to March 2025, a bullish goal for CEO Kentaro Okuda who has faced three years of profit declines since taking the top job in 2020. In contrast to the strong gains at the retail business, Nomura's wholesale division, which houses its investment banking and trading businesses, posted a pretax profit of just 2.1 billion yen, down sharply from 25.3 billion yen a year earlier. Fixed income trading slowed amid lower market volatility. Meanwhile, the investment banking business saw signs of recovery with some major deals including Pattern Energy Group's 300 billion yen sale of its Japanese assets to NTT Group and JERA. Kitamura said Nomura's plans to cut 50 billion yen of costs by March 2025 were on track, expecting to achieve about 60% of the total by the end of March next year, mainly by streamlining administrative and systems operations. The Bank of Japan's relaxation of its cap on bond yields last week could also be "a major tailwind" to its business, as it is likely to increase market volatility, he said. ($1 = 142.7600 yen) Reporting by Makiko Yamazaki; Editing by Himani Sarkar and Mark Potter Our Standards: The Thomson Reuters Trust Principles.
HSBC net profit more than doubles in the first half, announces $2 billion share buyback 2023-08-01 - In this article HSBA-GB Follow your favorite stocks CREATE FREE ACCOUNT watch now HSBC's net profit more than doubled to $18.1 billion in the six months ended June, a sharp spike compared to the $9 billion in the same period a year before. The bank's profit before tax rose 147% year-on-year to $21.7 billion, up from $8.78 billion in the first half of 2022. related investing news Shares of these 2 global stocks could soar over 30% as bankruptcies begin to rise, analysts say This figure included a $2.1 billion reversal of an impairment relating to the planned sale of its retail banking operations in France, as well as a provisional gain of $1.5 billion on the acquisition of Silicon Valley Bank UK. In light of the strong results, HSBC's board approved a second interim dividend of $0.10 per share, and announced a further share buyback of up to $2 billion, which "we expect to commence shortly and complete within three months." An HSBC Holdings bank branch in Hong Kong on May 24, 2022. A Hong Kong-based trade platform launched by HSBC Holdings three years ago with much fanfare has shut down after failing to build a commercially viable business. Bertha Wang | Bloomberg | Getty Images Asked when the bank's dividend might return to pre-pandemic levels, CEO Noel Quinn told CNBC's "Capital Connection" that "if all goes to plan this year, we should be above our pre-pandemic dividend level." HSBC paid out a total dividend of $0.51 in 2018, and $0.30 in 2019. For 2022, the bank has already declared two interim dividends of $0.10 each, bringing the total amount of dividends paid to $0.20. Quinn said that "our final interim dividend at the end of the year, will be the balance to get us to a 50% payout ratio." In March, the U.K. arm of HSBC — Europe's largest bank by assets — bought SVB U.K. for £1 ($1.21), in a deal that excludes the assets and liabilities of SVB U.K.'s parent company. Revenue increased by 50% year-on-year to $36.9 billion in the first half, which HSBC said was driven by higher net interest income across all its global businesses due to interest rate rises. My job is to diversify the revenue. And I believe we're starting to show evidence of that and we will continue to invest for diversification of revenue. Noel Quinn CEO of HSBC Holdings Net interest income for the first half stood at $18.3 billion, 36% higher year-on-year, while net interest margin came in 46 basis points higher at 1.70%. The strong performance was due to strong revenue growth across all business lines and all product areas, the CEO said. "Certainly, there's an element of interest rates in there. But there's also good growth in our fee income and trading income." Solid second quarter For the second quarter alone, HSBC beat analysts' expectations to report an 89% jump in pre-tax profit in the second quarter. Pre-tax profit for the quarter ended in June was $8.77 billion, beating expectations of $7.96 billion. Net profit was $6.64 billion, beating the $6.35 billion expected in analysts' estimates compiled by the bank, jumping 27% compared to the same period a year before. Total revenue for the second quarter came in at $16.71 billion, 38% higher than the $12.1 billion seen in the same period a year ago. HSBC's Hong Kong-listed shares rose 1.23% after the announcement. Stock Chart Icon Stock chart icon