Stock markets in the Gulf ended lower on Thursday as falling oil prices and the hawkish tone of US Federal Reserve Chair Jerome Powell on interest rates made investors cautious. Brent crude dropped 2.4% to $75.21 a barrel, impacting the Gulf's financial markets. In Qatar, the benchmark index fell 1.3%, while the Dubai benchmark index eased 0.2%. Saudi Arabia's benchmark index fell 0.1%. In Abu Dhabi, the index continued its gains, ending 0.4% higher, while Egypt's blue-chip index rose marginally.
The Australian sharemarket is expected to open lower on Friday following mixed results on Wall Street, as central banks across the globe raise interest rates to combat inflation. The S&P 500 rose 0.4%, driven by a rebound in technology stocks, while the Nasdaq composite gained 1%. The Dow Jones Industrial Average fell slightly. The Bank of England raised its main interest rate to a 15-year high, while central banks in Norway, Switzerland, and Turkey also raised borrowing rates. Federal Reserve chair Jerome Powell reiterated his concerns about high inflation and the need for further rate increases.
US lawmakers have 99 days to avert a government shutdown. The September funding deadline is looming and Congress is due to go on a summer recess, so lawmakers must act quickly to avoid a possible shutdown this fall. However, tensions are high after Speaker Kevin McCarthy and President Biden’s bipartisan debt ceiling deal, so the regular appropriations process in the coming months is sure to turn into a tense battle. Senate and House Republicans are headed for a showdown over the National Defense Authorization Act (NDAA), with Senate Republicans on the Appropriations Committee expected to push for more funding than what was agreed to in the debt-limit deal. House Republicans are planning to pass their spending bills below the caps set in the debt limit deal.
US stock index futures fell on Friday as investor sentiment remained damp due to the hawkish interest-rate outlook of Federal Reserve Chair Jerome Powell in his two-day congressional testimony. Powell reiterated his view that more rate hikes are likely in the months ahead. Bond markets are still pricing in one more rate hike in July, as opposed to the two more suggested by Powell. The S&P 500 and Nasdaq remained on course for a weekly decline. Investors will also be monitoring comments from St. Louis Fed President James Bullard, Atlanta Fed President Raphael Bostic, and Cleveland Fed's Loretta Mester.
The pound is heading for its biggest weekly loss in over a month as investors grow increasingly concerned that the UK economy could enter a recession after the Bank of England raised interest rates. Money markets indicate that rates could remain at 6% for six months, reflecting the entrenched level of inflation in the country. The pound fell 0.5% against the dollar to $1.2685, before recovering slightly to $1.2702, while against the euro it rose 0.6% to 85.47 pence.
The Federal Reserve is enriching special interests in the financial sector by taxing Americans an extra $800 million per day, or $292 billion per year, through reverse repurchase agreements (reverse repos), according to an op-ed in The Epoch Times. The Fed uses reverse repos to soak up excess liquidity in the financial system and reduce the amount of money in circulation. However, the Fed pays interest on reverse repos, which has become normal operating procedure under Chairman Jerome Powell. The Fed is now paying $800 million daily in interest on $6 trillion between bank reserves and reverse repos, benefitting large financial institutions rather than the American people.
Pink Floyd's 1975 concert in Hamilton, Ontario, was a defining moment for the band. The performance was the last time the group played together as a quartet, and it showcased some of their most iconic songs, including "Shine On You Crazy Diamond" and "The Great Gig in the Sky." The concert was also notable for its innovative use of pyrotechnics and visual effects. A new 4K scan of 28 minutes of footage from the concert has recently been uploaded to YouTube, offering fans a rare glimpse of the band at the height of their powers.
Pink Floyd’s 1975 tour was the culmination of a decade of experimentation and innovation. The band had started out as a psychedelic act in the 1960s, but by the early 1970s, they had developed a more progressive rock sound. Their performances became known for their elaborate visual effects and use of film. The concert in Hamilton was no exception, featuring a plane crash simulation that caused significant damage to the stadium. Despite the mishap, the show was a success, and it remains one of the band’s most memorable performances.
Pink Floyd’s music continues to resonate with audiences today. The band’s music, which often explores themes of mortality, depression, and war, still speaks to the hopes and fears of modern life. The band’s enduring popularity has been celebrated in a new exhibition in Toronto, “Their Mortal Remains,” which features personal effects from all the band members, as well as rare concert footage and interviews. The exhibition offers fans a chance to experience the band’s music and legacy in a new way, and it is a testament to Pink Floyd’s enduring influence on popular culture.
Following the recent collapse of Silicon Valley Bank, Signature Bank and First Republic Bank, Democrats are calling for a reform of the deposit insurance system, arguing that deposit insurance should apply to all US deposits. The main reform suggested is raising the account balance insurance limit to a higher threshold, unlimited deposit insurance for everyone, and covering business payment accounts like the payroll accounts of start-up companies. After the bank failures in March, some Republicans also expressed support for the idea of extending deposit insurance across the banking industry. Economists say that extending deposit insurance to all US depositors would be like regulating the banking system in the same way as water and electricity providers. Another more practicable idea is to allow groups of small businesses and consumers to bank directly with the Federal Reserve using digital wallets. An even more direct proposal is that small businesses and consumers would bank directly with the Fed as opposed to through third parties like business consortiums and credit unions.
Robert Litterman, a former Goldman Sachs executive and current risk manager at Kepos Capital, has proposed a financial instrument called a carbon-linked bond that he believes could help combat climate change. The bond's yield would be linked to the actual government-imposed price of carbon, and the government would have to pay bondholders more if it failed to meet its carbon-price target. Litterman argues that this would turn an empty promise into one that would be costly for the government to break, effectively tying its hands. Although some critics argue that investors might take advantage of the bond and bet against the government, Litterman believes that this is acceptable as it would force the government to live up to its promises. Litterman's company, Kepos Capital, has partnered with Gro Intelligence to develop a "carbon barometer" that measures governments' incentives for reducing carbon emissions. The barometer would be used to calculate a government's current carbon price based on its various incentives and disincentives.
The US Supreme Court is set to decide whether race can be used as a factor in college admissions. Previous rulings have demonstrated sharp divisions within the court on the matter. In the first such case, the court split 4-4-1, upholding affirmative action but ruling that a University of California medical school must admit a white male who had challenged its policy of reserving seats for ethnic minority students. The use of race in higher education admissions is, according to Justice Clarence Thomas, "categorically prohibited by the Equal Protection Clause". However, Justice Ruth Bader Ginsburg, has argued that affirmative action remains vital to overcome historical racial oppression. This week, the court is expected to rule on two cases challenging racial preferences in college admissions.
Pennsylvania caseworkers ignored years of child abuse, now face felony charges, prosecutor says
The Toronto Star
23-06-27 22:39
Five caseworkers for a child welfare agency in Pennsylvania have been arrested on charges of child endangerment and failing to report abuse. The caseworkers knew that children were living in dangerous, deplorable conditions, but instead of coming to the rescue, they chose to walk away, said District Attorney Mark Powell. In response to the state inspection, the Office of Youth and Family Services tried to shift blame to Scranton police, whom the agency accused of running a “questionably motivated criminal investigation“ into its practices.
The US dollar remained stable on Wednesday as strong economic data eased recession fears, raising investor sentiment. However, the data also suggests that the Federal Reserve may have to continue raising rates. The Australian dollar fell after consumer inflation declined in May, while the dollar index is set to decline by 1.5% for the month. The market is predicting a 77% probability of a 25 basis point hike by the Fed next month, but no more after that. Fed Chair Jerome Powell's comments at the European Central Bank Forum in Portugal will be closely watched for further interest rate cues.
Rudy Giuliani, former senior member of Donald Trump's legal team, has been questioned by federal investigators as part of an investigation into efforts to overturn the 2020 election. The investigation, led by special counsel Jack Smith, is focused on Trump's actions on January 6, 2021, and other attempts to influence the election outcome. Giuliani had advocated for overturning or invalidating election results in certain battleground states. Last week, Smith announced that two fake electors who tried to sway the Electoral College had agreed to testify. Giuliani's interview comes after Smith indicted Trump on 37 felony counts in a separate investigation. Other Trump lawyers, including John Eastman and Sidney Powell, have also been targeted by investigators. Giuliani and Powell were subpoenaed by Congress for the investigation into the January 6 riot. Giuliani is also a target of investigators in Georgia in relation to efforts to overturn the election there.
Federal Reserve Chairman Jerome Powell has not ruled out more rate hikes at the central bank's next meeting. While most central bankers still expect two rate increases this year, Powell said he would not take consecutive rate hikes off the table. The Federal Open Market Committee's next meeting is scheduled for 25-26 July. Powell said the committee believes there is more work to be done to tighten monetary policy and bring down inflation pressures.
Federal Reserve Chair Jerome Powell has said that the central bank may need to tighten its oversight of the US financial system following the collapse of three large banks earlier this year. Powell said that while regulations put in place after the 2007-2008 financial crisis had made large multinational banks more resilient, the failure of Silicon Valley Bank, Signature Bank and First Republic Bank had exposed different vulnerabilities. Powell did not provide details, but other Fed officials have suggested that banks should be required to hold more capital in reserve to guard against loan losses.
Federal Reserve Chair Jerome Powell stated that the central bank is still closely monitoring the banking industry and is reluctant to declare that the sector's turmoil is over. Powell highlighted funding vulnerabilities in the US, particularly in the real estate market, where there is a valuation adjustment occurring due to changes brought about by remote work. Powell previously stated that commercial real estate lending is under pressure but is unlikely to pose a threat to the broader financial system.
The Federal Reserve may have to tighten its oversight of the US financial system in the wake of the failure of three major banks, according to Fed Chair Jerome Powell. Powell said banks should be required to hold more capital in reserve to guard against loan losses. He added that rules needed to be updated to account for how quickly a bank run could happen.
In a recent op-ed for The New York Times, Jerome Karabel discusses the history of affirmative action in the United States and the recent Supreme Court ruling that effectively ended the policy. He begins by recounting President Lyndon Johnson’s historic commencement address at Howard University in 1965, where he laid out the intellectual and moral basis for affirmative action. Johnson argued that simply lifting the chains of racial oppression was not enough, and that true equality required additional support. Karabel goes on to discuss the backlash against affirmative action and the legal challenges it has faced over the years. He concludes by suggesting that affirmative action based on economic class may be a more palatable alternative to race-conscious affirmative action, but acknowledges that it is still far from sufficient to achieve full racial equality in the United States.
The Supreme Court has overturned admissions policies at Harvard University and the University of North Carolina that relied on precedents permitting schools to consider the race of applicants from underrepresented groups, for the sake of diversity: the Bakke case in 1978 and Grutter v. Bollinger in 2003.
Amy Wax, a law professor at the University of Pennsylvania, is facing severe sanctions from the university for expressing unpopular opinions. Professor Wax has made statements that have offended many of her colleagues, including defending 1950s family values, suggesting that some cultures are inferior to others, and asserting that black law students do not perform as well academically as white students. Additionally, she recently suggested that America would be better off with fewer Asian immigrants. These statements have caused outrage among students and faculty, leading to calls for her to be fired. However, Professor Wax's statements, while controversial, are largely factually correct or defensible opinions expressed in a civil manner.
The attempt to oust Professor Wax is seen by many as an attack on freedom of speech and intellectual honesty. It is rare for a tenured professor to be fired, and Penn’s actions against Professor Wax are viewed as unjust and immoral. The university has accused Professor Wax of making racist, sexist, xenophobic, and homophobic statements, but has not provided empirical data to support their claims. Professor Wax has argued that she is being punished for expressing unpopular truths that challenge the prevailing narrative on campus.
Despite the controversy, Professor Wax has received support from prestigious alums, including major donor Paul Levy, who resigned from his position as a university trustee in protest. The Academic Freedom Alliance and publisher Roger Kimball have also spoken out in support of Professor Wax. Professor Wax has filed a grievance complaint against the university, accusing them of using the sanction process to silence dissenting voices and prevent students from being exposed to conservative ideas. The case is likely to take a long time to be resolved, but Professor Wax’s fight has sparked a broader debate about freedom of speech and intellectual diversity on college campuses.
