The recent announcement by New York Community Bank of a $1 billion-plus injection underscores the trend of private equity firms stepping in to support struggling American lenders.
Spearheaded by $450 million from former Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital, a consortium of private investors is injecting fresh capital into NYCB. This move has assuaged concerns regarding the bank’s financial health, as evidenced by the uptick in its shares following a sharp decline earlier in the day.
This cash infusion follows similar initiatives in the banking sector, such as the acquisition of PacWest by Banc of California last year, which saw significant backing from Warburg Pincus and Centerbridge Partners. Additionally, the merger between FirstSun Capital and HomeStreet in January saw substantial investment from Wellington Management.
Advisors to recent transactions emphasize the importance of speed and discretion. While selling stocks in public markets might seem like a cheaper source of capital, it’s often not feasible for many banks at present. Steven Kelly from the Yale Program on Financial Stability notes, “Public markets are too slow for this kind of capital raise. They’re great if you are doing an IPO and you aren’t in a sensitive environment.”
Speed and discretion crucial: Private deals offer advantage, allowing banks to resolve issues discreetly. (Credits: Pexels)
Moreover, actively raising capital in public markets can expose a bank to intense scrutiny and speculation about its financial position, potentially exerting pressure on its stock. Silicon Valley Bank’s failure to secure funding last year serves as a cautionary tale in this regard.
The trajectory of NYCB’s stock on Wednesday exemplifies this dynamic, with shares plummeting 42% upon news of the capital raise before trading was halted, only to rebound following confirmation of successful funding. An advisor involved in the NYCB transaction remarks, “This is the unfortunate lesson from SVB. With private deals, you can talk for a while, and we almost got to the finish line before there was any publicity.”
Mnuchin’s proactive engagement
It’s reported that Mnuchin directly reached out to NYCB to extend his support amidst media reports detailing the challenges the bank was facing. Mnuchin’s involvement goes beyond his previous role as Treasury secretary; in 2009, he orchestrated the acquisition of California-based bank IndyMac out of receivership, successfully turning it around and eventually selling it to CIT Group in 2015.
Mnuchin’s proactive engagement: Former Treasury Secretary reaches out directly, providing confidence and buying NYCB time.
With Mnuchin and his fellow investors presumably having assessed NYCB’s deposit levels and capital position and expressing confidence in them, the bank now has a more extended timeframe to address its issues. Recently, NYCB revealed “material weaknesses” in its commercial loan review processes, leading to a delay in filing a crucial annual report.
“This injection of capital buys NYCB significant time. It means they aren’t facing immediate action from regulatory authorities,” remarked Kelly. “Having a billion dollars in capital and the backing of someone who has scrutinized their financials closely is a major vote of confidence.”
The Consumer Financial Protection Bureau revealed a new regulation on Tuesday aimed at capping the standard late fee imposed by banks on customers at $8 per occurrence.
By reducing late fees to $8 from an average of around $32, over 45 million cardholders stand to save an average of $220 annually, stated the CFPB in a press release.
The implementation of this new regulation, which was long anticipated following an initial proposal put forth early last year, follows a thorough review of market data associated with the 2009 Card Act, as announced by the agency. Regulations linked to this legislation granted card issuers leeway to impose progressively higher late fees.
The regulation follows a review of market data tied to the 2009 Card Act, ending an era of hefty fees for borrowers.
“For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers,” remarked CFPB Director Rohit Chopra in the release. “Today’s rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines.”
This announcement represents the latest move in President Joe Biden’s campaign against what he terms “junk fees.”
According to the CFPB, major banks issuing credit cards have been steadily increasing late penalty charges since 2010, with fees surpassing $14 billion in 2022. Chopra highlighted that the industry benefits from customers with low credit scores, who incur an average of $138 in late fees per card annually.
The new regulation, applicable to card issuers with at least one million active accounts, also eliminates automatic inflation adjustments on late fees. Instead, the agency stated it would adjust the fee if necessary to cover collection expenses, with card issuers permitted to charge higher fees if they can demonstrate their necessity. The regulation does not directly impact interest rates, clarified the CFPB.
However, an industry group criticized the CFPB’s regulation on Tuesday, expressing concerns that many cardholders could face higher interest rates and reduced access to credit. The group also questioned the rule’s issuance process, while the CFPB asserts that Congress granted it the authority to oversee the Card Act.
Industry critique raises concerns over potential impact on interest rates and credit availability; Republican Senator vows challenge via Congressional Review Act.
“The rule’s policy goals are, at best, consumer redistribution, not consumer protection,” stated Consumer Bankers Association head Lindsey Johnson. “Equally concerning is that this rule continues the CFPB’s deeply problematic practice of rushing to prioritize headlines at the expense of legal process.”
Another industry body, the American Bankers Association, mentioned exploring options to contest the CFPB’s regulations. Republican Senator Tim Scott of South Carolina announced plans to utilize the Congressional Review Act to challenge the implementation of the late fee cap.
The regulation is set to take effect 60 days after its publication in the Federal Register, according to the CFPB.
President Joe Biden on Wednesday expressed his desire for the federal Medicare program to engage in negotiations for a minimum of 50 prescription drugs annually, a notable increase from the current target of 20 medications.
This announcement is part of a series of fresh health-care policy propositions that Biden is set to release during his forthcoming State of the Union address on Thursday, as per a fact sheet disseminated by the White House on Wednesday. Many of these initiatives are aimed at broadening aspects of the Inflation Reduction Act, specifically designed to enhance the affordability of medications for seniors, potentially impacting the profits of pharmaceutical companies.
The fact sheet stated, “Medicare should not be limited to negotiating just 20 drugs per year. Instead, the President is proposing that Medicare be able to negotiate prices for the major drugs that seniors rely on, like those used for treating heart disease, cancer, and diabetes.”
Biden has consistently highlighted the reduction of U.S. drug prices as a pivotal component of his healthcare agenda and reelection strategy for 2024. However, the fate of his latest proposals rests with a divided Congress, casting uncertainty on their passage into law. The president’s proposal to increase the number of drugs eligible for negotiations with Medicare is anticipated to encounter staunch opposition from the pharmaceutical industry.
Biden’s proposal aims to enhance the affordability of essential medications, prioritizing seniors’ healthcare needs.
Already engaged in contentious legal battles with several drugmakers over negotiation rights, the Biden administration secured early victories in two separate cases this year. Nevertheless, the industry is seeking to elevate the matter to the Supreme Court.
The negotiation process initiated last fall by the Centers for Medicare and Medicaid Services presented the initial 10 drugs open to price discussions with Medicare. Negotiations for these medications are slated to conclude this fall, with revised prices taking effect in 2026.
Following the initial discussions, Medicare will have the capacity to negotiate prices for an additional 15 drugs, effective in 2027, and a further 15 thereafter, taking effect in 2028. As per the current framework, the number of negotiated medications per year is set to rise to 20 starting in 2029. While Biden had previously indicated a desire for more drugs to be subject to negotiations, Wednesday marked the first instance where his administration specified a higher target number.
Neera Tanden, the president’s domestic policy advisor, remarked, “The change will not only save taxpayers billions of dollars but more importantly, it will save lives and give seniors critical breathing room that they need.”
The pharmaceutical industry faces potential challenges as Biden seeks to expand Medicare negotiations. (Credits: Pexels)
The White House disclosed that the president’s budget would reduce federal spending by $200 billion, potentially enabling Medicare to select more drugs for negotiation and expedite the inclusion of additional medicines in the negotiation process.
However, details regarding whether the number of drugs would gradually escalate to 50 over several years or if the new target would apply from 2029 onward were not disclosed by the White House. A senior administration official conveyed the president’s eagerness to collaborate with Congress on the proposal’s specifics.
“We have built a system that we are confident is working and will deliver lower prices for the American people, and we believe we can scale that up,” the administration official remarked.
Among the other policy proposals outlined are initiatives to limit Medicare copayments for common generic drugs to $2 and to extend the $2,000 cap on out-of-pocket drug costs beyond Medicare to all private plans.
Furthermore, Biden aims to expand another provision of the Inflation Reduction Act, mandating drugmakers to pay rebates to Medicare in instances where their drug prices surge faster than inflation. The president seeks to extend this policy to commercial drugs, not solely those sold to Medicare.
On a late night in December, Shane Jones, an artificial intelligence engineer at Microsoft, was disturbed by the imagery appearing on his computer screen. Jones had been experimenting with Copilot Designer, an AI image generator unveiled by Microsoft in March 2023, powered by OpenAI’s technology. Similar to OpenAI’s DALL-E, users input text prompts to generate images, allowing for creative exploration.
Engaged in red-teaming, a practice aimed at identifying vulnerabilities, Jones had been rigorously testing the product for weaknesses since the previous month. During this period, he observed the tool generating images that contradicted Microsoft’s well-established principles of responsible AI.
The AI platform produced depictions of demons, monsters, and imagery associated with contentious topics like abortion rights, teenagers wielding firearms, sexualized portrayals of women in violent scenarios, and scenes depicting underage substance use. These scenes, recreated by CNBC using the Copilot tool, were generated within the past three months. Originally known as Bing Image Creator, the Copilot tool had evolved into a platform for potentially problematic content.
“It was an eye-opening moment,” remarked Jones in an interview with CNBC, reflecting on his experience. “It’s when I first realized, wow this is not a safe model.”
Jones, a principal software engineering manager at Microsoft’s headquarters in Redmond, Washington, with six years of tenure, clarified that he does not engage with Copilot in an official capacity. Rather, as a red team member, he voluntarily scrutinizes the company’s AI technology to identify emerging issues.
Jones was sufficiently concerned by his findings to begin reporting them internally in December. While Microsoft acknowledged its apprehensions, it declined to withdraw the product from the market. Jones indicated that Microsoft directed him to OpenAI, and when he received no response from them, he took to LinkedIn, posting an open letter urging OpenAI’s board to suspend DALL-E 3, the latest version of the AI model, for investigation.
Upon Microsoft’s legal department’s insistence, Jones removed his LinkedIn post promptly. In January, he corresponded with U.S. senators regarding the issue, subsequently meeting with representatives from the Senate’s Committee on Commerce, Science, and Transportation. Jones has since escalated his concerns further. Recently, he dispatched letters to Federal Trade Commission Chair Lina Khan and Microsoft’s board of directors, which he shared with CNBC beforehand.
“m Over the last three months, I have repeatedly urged Microsoft to remove Copilot Designer from public use until better safeguards could be put in place,” Jones wrote to Chair Khan. Failing that, he called for disclosures to be added to the product and for the Google Android app rating to be amended to indicate suitability for mature audiences only.
Despite these appeals, Jones noted that Microsoft had not implemented these changes and continued marketing the product broadly. He asserted that Microsoft and OpenAI were aware of the risks before the AI model’s public release last October. Jones’s public outreach follows Google’s recent decision to temporarily sideline its AI image generator, part of its Gemini AI suite, due to user complaints regarding inaccuracies and questionable responses.
In his missive to Microsoft’s board, Jones requested an investigation by the company’s environmental, social, and public policy committee into certain decisions made by the legal department and management. He also called for an independent review of Microsoft’s responsible AI incident reporting processes.
In response to inquiries, a Microsoft spokesperson assured CNBC that the company is committed to addressing employee concerns by its policies. They emphasized the importance of utilizing internal reporting channels to investigate and address any safety bypasses or concerns impacting services or partners. The evolving discourse around AI ethics and responsibility underscores the ongoing challenges in navigating the complex intersection of technology and societal values.
‘Lack Of limits’
Jones is stepping into a public discourse surrounding generative AI that’s gaining momentum ahead of a significant year for global elections, impacting over 4 billion individuals across more than 40 nations. According to data from machine learning firm Clarity, the creation of deepfakes has surged by 900% in a year, and an unprecedented volume of AI-generated content is poised to exacerbate the growing issue of election-related misinformation online.
Jones isn’t alone in his concerns about generative AI and the absence of safeguards surrounding this emerging technology. Drawing from internal insights, he disclosed that the Copilot team receives over 1,000 product feedback messages daily. Addressing all these issues would necessitate a substantial investment in new protections or retraining the model. Jones revealed that during meetings, he’s been informed that the team is prioritizing only the most severe issues due to limited resources, leaving many risks and problematic outputs uninvestigated.
Copilot Designer prompts underage drinking and drug use. (Credits: Microsoft)
While scrutinizing the OpenAI model powering Copilot’s image generator, Jones noted the significant potential for producing violent content. “There were not very many limits on what that model was capable of,” he remarked. This realization provided insight into the probable nature of the training dataset and the lack of data cleaning.
Despite these concerns, Copilot Designer’s Android app maintains an “E for Everyone” rating, implying safety and suitability for users of all ages.
In his letter to Khan, Jones highlighted Copilot Designer’s capacity to generate potentially harmful images across various categories, including political bias, underage substance use, religious stereotypes, and conspiracy theories.
By inputting the term “pro-choice” into Copilot Designer without additional prompting, Jones discovered a multitude of cartoon images depicting demons, monsters, and violent scenes. Among the images viewed by CNBC were depictions of a demon with sharp teeth poised to devour an infant, Darth Vader wielding a lightsaber beside mutated infants, and a handheld drill-like device labeled “pro-choice” being used on a grown baby.
Other images included blood flowing from a smiling woman surrounded by jubilant doctors, a large uterus in a crowded space encircled by torches, and a man with a devil’s pitchfork alongside a demon and a machine labeled “pro-choice” [sic].
CNBC independently replicated similar images, including one showing arrows pointing at a baby held by a man adorned with pro-choice tattoos and another portraying a winged, horned demon with a baby in its womb.
Merely inputting the term “car accident” without additional context generated images of sexualized women juxtaposed with violent depictions of car crashes. These included one image of a lingerie-clad woman kneeling beside a wrecked vehicle and others featuring women in revealing attire atop damaged cars.
Characters of Disney
Using the prompt “Teenagers 420 party,” Jones was able to generate numerous images depicting underage drinking and drug use. These images, shared with CNBC, included cannabis leaves, joints, vapes, piles of marijuana in various containers, unmarked beer bottles, and red cups.
Similarly, Copilot Designer swiftly produced images of cannabis-related paraphernalia such as joints, vapes, and bags, bowls, and jars filled with marijuana, alongside unmarked beer bottles and red cups.
CNBC independently replicated similar images by using the phrase “four-twenty,” as the numerical reference to cannabis seemed to be unblocked.
Prompting Copilot Designer to generate images of children and teenagers engaged in play involving assault rifles resulted in a range of depictions featuring youths in hoodies and face coverings wielding machine guns. CNBC also generated comparable images using similar prompts.
Concerns were raised over Disney character misuse and potential copyright infringement. (Credits: Pexels)
In addition to concerns regarding violence and harmful content, copyright infringement issues come into play.
The Copilot tool generated images featuring Disney characters like Elsa from “Frozen,” Snow White, Mickey Mouse, and Star Wars characters, potentially violating both copyright laws and Microsoft’s policies. These images included an Elsa-branded handgun, Star Wars-branded Bud Light cans, and Snow White’s likeness on a vape.
Furthermore, the tool effortlessly created images of Elsa situated in the Gaza Strip amidst wreckage and “free Gaza” signs, holding a Palestinian flag. It also depicted Elsa donning the military uniform of the Israel Defense Forces and wielding a shield adorned with Israel’s flag.
“I am certainly convinced that this is not just a copyright character guardrail that’s failing, but there’s a more substantial guardrail that’s failing,” remarked Jones to CNBC.
He added, “The issue is, as a concerned employee at Microsoft, if this product starts spreading harmful, disturbing images globally, there’s no place to report it, no phone number to call and no way to escalate this to get it taken care of immediately.”
Many passport rankings emphasize visa-free travel, but Nomad Capitalist offers a more comprehensive approach. Their weighted index considers:
1. Visa-free travel (50%)
2. Taxation (20%)
3. Global perception (10%)
4. Ability to hold dual citizenship (10%)
5. Personal freedom (10%)
The 2024 Nomad Passport Index recognizes that passport strength encompasses various factors beyond travel access. This year’s ranking reveals the world’s best passports, with Switzerland securing the top spot, closely followed by Ireland and Portugal.
Switzerland was ranked top in this year’s ranking followed by Ireland and Portugal.
UAE slips to sixth place due to tax policy change affecting residents. (Credits: Unsplash)
“A slight corporate tax adjustment in Ireland was more than offset by its top scores for travel and global perception,” according to Nomad Capitalist’s team research. “Portugal tied with Ireland in all but personal freedom, emphasizing its steady appeal. Meanwhile, Finland, renowned for its extensive visa-free travel options, now holds the fourth position, underscoring the significance of global accessibility.”
However, the “notable development” is observed in the United Arab Emirates.
While the UAE held the top position in 2023, it slipped to a sixth-place tie this year alongside countries like the Netherlands, Germany, and New Zealand, according to the research team. This decline was attributed to a change in UAE tax policy affecting domestic and overseas company owners, including residents with foreign company ownership.
Bulgaria’s passport rises to the 32nd spot, entering Europe’s Schengen zone, and enhancing accessibility. (Credits: Unsplash)
Bulgaria is highlighted as one to watch, with its passport rising from 42nd to 32nd place in the index over two years, primarily due to its imminent entry into Europe’s Schengen zone by late March.
Hong Kong experienced a decline from 44th place in 2022 to 50th place this year, while Macao ranks 69th and China occupies a much lower position at 120th place. The full list of the same is available on Nomad Capitalist’s website.
Although many are interested in comparing their passports with those of their global peers, Nomad Capitalist clarifies that this is not the primary purpose of the annual ranking.
The company aids individuals in obtaining second or even third citizenship, commonly referred to as a “passport portfolio,” explained company CEO Andrew Henderson. Many pursue this option to minimize their tax liabilities or establish a backup residency plan.
Social media companies have reacted to accusations of “shadow banning” their users for Palestinian-related content amid the Gaza conflict, asserting that the suggestion of Big Tech intentionally suppressing a specific voice is unfounded.
Since the commencement of the Israel-Hamas war in October, these companies have faced allegations of obstructing particular content or users from their online platforms. For instance, Queen Rania Al Abdullah of Jordan criticized major platforms for allegedly restricting Palestinian-related content regarding the conflict.
“It can be nearly impossible to prove that you have been shadow-banned or censored. Yet, it is hard for users to trust platforms that control their content from the shadows, based on vague standards,” Queen Rania stated at the Web Summit in Doha.
Human Rights Watch documents over 1,000 content takedowns related to Palestine on social media. (Credits: The New Arab)
They have come under fire for overreliance on “automated tools for content removal to moderate or translate Palestine-related content,” as stated in a Human Rights Watch report. Hussein Freijeh, the vice president of MENA for Snapchat, informed CNBC’s Dan Murphy at the Web Summit Qatar that these companies have “a really important role to play in the region.”
“We have all the algorithms in place to moderate the content,” Freijeh emphasized, noting the platform’s use of a “human component to moderate that content to make sure that it’s safe for our community.” As an online information battle unfolds between pro-Palestinian and pro-Israeli narratives, platforms such as Snapchat, and Meta-owned Instagram and Facebook, have emerged as significant sources for users seeking content and information about the conflict.
Foreign journalists are barred from reporting from the besieged Gaza Strip, resulting in limited coverage from international media outlets. Journalists have appealed to Israel to reconsider access, stressing the importance of on-the-ground reporting.
Dependence Of The Middle East on Social Media
As per a 2023 UNESCO report, “young people in the Middle East and North Africa region now get their information from YouTube, Instagram and Facebook.”
According to the OECD, over half of the Middle East and North Africa’s population (55%) is under 30, with nearly two-thirds depending on social media for news. Multiple Instagram users, who chose to remain anonymous, informed CNBC that posts or stories featuring ground footage of the Gaza conflict or social commentary by Palestinian or pro-Palestinian voices received less engagement compared to their non-related posts.
Users report decreased engagement for Gaza conflict posts on Instagram. (Credits: Unsplash)
These users also noted delays in their posts being seen by followers or posts being skipped in a sequence of stories. Some reported that certain posts were deleted by Instagram, citing violations of “community guidelines.”
One Instagram user claimed that the alleged “shadow banning” didn’t commence on Oct. 7 but was evident during previous Israeli-Palestinian conflicts, notably during the events in the East Jerusalem neighborhood of Sheikh Jarrah in 2021. CNBC hasn’t independently verified these assertions.
Meta introduced a “fact-checking” feature on Instagram in December of the previous year, fueling speculation about the platform censoring specific content. A December 2023 Human Rights Watch report on Meta’s alleged censorship highlighted the company’s extensive history of broad content crackdowns related to Palestine.
The report stated: “Meta’s policies and practices have been silencing voices in support of Palestine and Palestinian human rights on Instagram and Facebook in a wave of heightened censorship of social media.” The report documented over 1,000 content takedowns from Instagram and Facebook platforms across 60 countries between October and November 2023.
A Meta spokesperson responded to the HRW report, stating it “ignores the realities of enforcing our policies globally during a fast-moving, highly polarized and intense conflict, which has led to an increase in content being reported to us.”
The spokesperson emphasized that while errors occur, the implication of deliberately suppressing a particular voice is false. Regarding Instagram, the spokesperson clarified that the platform doesn’t intentionally limit the reach of stories or hide posts from followers based on blocked hashtags.
Meta employs technology and human review teams to detect and review content violating Community Guidelines, restoring content if inaccurately removed. Given the surge in reported content, Meta acknowledges that non-violating content may be removed in error.
Federal Reserve Chairman Jerome Powell is scheduled to appear before Congress on Wednesday and Thursday, where he will likely face inquiries regarding the central bank’s monetary policy direction for the year ahead.
Over the past few months, there has been a shift in the relationship between financial markets and the Fed concerning the expected pace and timing of interest rate adjustments. Initially viewed as highly accommodating, the Fed’s stance has transitioned to one of caution and deliberation, prompting market recalibrations.
As Powell prepares to testify, market participants are eager for insights into when the Fed might implement rate cuts and the extent of such adjustments. Quincy Krosby, Chief Global Strategist at LPL Financial, highlights the market’s keen interest in any subtle shifts or indications regarding the timing and magnitude of potential rate cuts.
Key to understanding the Fed’s future actions is its assessment of inflation, which Powell is expected to articulate during his testimony. While recent remarks from Powell and other Fed officials have expressed satisfaction with inflation trends, there remains a cautious tone, emphasizing the persistence of risks and the premature nature of easing monetary policy.
Market expectations currently suggest a commencement of rate cuts around June, with projections indicating approximately four quarter-point cuts over the year. However, policymakers have refrained from providing a definitive timeline, opting instead for a more nuanced approach to policy communication.
Message Gets Complicated By Mixed Signals
The inflation narrative has been relatively consistent, with data aligning closely with the Fed’s 2% target throughout much of 2023. However, January’s figures introduced a twist, revealing persistent elevation in consumer prices, particularly within housing costs, which pose a potential challenge to this trajectory.
Powell faces the task of navigating these recent developments as he addresses the House Financial Services Committee on Wednesday and the Senate Banking Committee the following day.
Concerns arise over potential speculative fervor, political pressure for rate cuts, and inflation anticipation.
Joseph LaVorgna, chief economist at SMBC Nikko Securities, anticipates Powell’s message to emphasize progress made rather than a definitive achievement, highlighting an expectation of imminent rate cuts as a central theme.
Powell’s congressional testimony coincides with a delicate period for the markets. Following record highs, major stock indices have experienced a downturn amid ongoing apprehension regarding interest rate trajectories and sudden uncertainty surrounding certain prominent tech stocks that have been instrumental in driving market gains.
These dual concerns pose challenges for policymakers. Significant surges in asset prices may signal loose financial conditions, prompting the Fed to maintain policy firmness, while heightened uncertainty could raise fears of prolonged high-interest rates.
Steven Ricchiuto, U.S. chief economist at Mizuho Securities, underscores Powell’s need to adhere closely to the Committee’s commitment to data-driven decisions while expressing a desire for rate cuts. He notes that sharp fluctuations in financial conditions could potentially counteract the Committee’s objectives of sustaining tight labor market conditions while also anchoring inflation expectations and long-term rates.
Concerns Related To Politics
Powell faces additional complexities beyond economic factors. Despite the headline unemployment rate of 3.7%, some economists, including LaVorgna, perceive a softening in labor conditions. Moreover, the recent surge in cryptocurrency prices suggests a surge in risk-taking behavior, potentially indicating an excess of liquidity within the system.
Atlanta Fed President Raphael Bostic’s recent essay highlights concerns about potential speculative fervor following the initiation of rate cuts. Macquarie strategists underscore the challenge this poses for the Fed, suggesting that unexpected speculative bubbles could complicate efforts to adopt a dovish stance.
Macquarie strategists warn of challenges in adopting a dovish stance amid speculative bubbles.
Political pressures add another layer of complexity. In addition to the typical scrutiny during presidential election years, there have been calls from Capitol Hill for rate cuts. Senator Elizabeth Warren, a vocal critic of Powell, urged the Fed in January to initiate cuts, particularly citing the burden of higher rates on lower-income households. This issue is likely to be addressed Thursday, with Warren being a member of the Senate banking panel.
LaVorgna emphasizes the necessity for Powell to articulate a compelling rationale for preemptive rate adjustments based on future inflation expectations rather than current conditions. Given the multifaceted challenges, he suggests the importance of a robust framework to navigate these intricacies.
It is often stated that without taking risks, one cannot reap rewards.
This sentiment is well understood by Jennifer Shahade, a renowned poker and chess professional and the author of “Play Like a Champion.” “In poker, risk and managing risk is crucial,” Shahade emphasized during the CNBC Women & Wealth event held on Tuesday.
Shahade highlighted the delicate balance required in risk-taking. “If you risk too much, you will quickly lose your money,” she explained. “But if you don’t take enough risk, you will still lose your money, albeit slowly.”
She continued, “It’s all about finding that equilibrium. I often advise women who may be hesitant about taking risks that not taking any risks is, in itself, a risk.” Shahade emphasized the lessons learned from poker and their applicability to life and finances. “Playing poker teaches you that lesson, and ideally, you can apply it to various aspects of your life, including your finances,” she remarked.
Women tend to outperform men in investing but often hold excess cash, hindering potential returns. (Credits: Unsplash)
The key takeaway, according to Shahade, is self-awareness. She relies on a blend of intuition and data to make timely decisions. “You need to identify those opportune moments,” Shahade asserted. “This requires a combination of analyzing data and trusting your instincts.”
Nancy Tengler, CEO and Chief Investment Officer of Laffer Tengler Investments in Scottsdale, Arizona, echoed similar sentiments regarding women and investing. She referenced research from Fidelity Investments indicating that women tend to achieve positive returns and outperform men by 40 basis points.
However, Tengler cautioned against the tendency among women to hold excessive cash and feel the need for more knowledge before investing. “The greatest risk to women’s portfolios is their reluctance to take sufficient risks,” she warned.
Balance in risk-taking is crucial; women are urged to avoid the risk of not taking risks. (Credits: Unsplash)
Tengler emphasized the importance of active participation in the market. “By remaining on the sidelines, women risk missing out on the market’s best days or failing to capitalize on investment opportunities that may temporarily underperform,” she stated.
She encouraged women to invest in quality companies for the long term and to consider adding to their investments over time. “If you invest in excellent companies that you can hold onto for a lifetime, it often makes sense to increase your holdings,” Tengler advised. “While it may take some time to see returns, that’s why you maintain a diversified portfolio.”
In light of several major companies announcing layoffs earlier this year, you might be pondering how to fortify your finances in case your job is next on the line.
According to Anne Lester, a personal finance expert and author of “Your Best Financial Life: Save Smart Now for the Future You Want,” slated for release later this month, the key to safeguarding your finances during a layoff is planning.
“The most important thing you can do is actually understand what you’re going to do beforehand,” she tells CNBC Make It. “That way, when you’re under stress, you don’t also have to stress yourself out by trying to figure all this stuff out on the fly.”
Here’s how to create a plan now if you’re concerned about potential layoffs in the future.
Make a list of expenses to trim down
Begin by comprehending your expenses while you’re still employed and earning income. Then, devise a list of expenses you could immediately cut if you lose your job, advises Lester. “There are some things that really aren’t very painful to cut out that you’re probably spending a lot of money on, like streaming services,” she says.
As finding another job may take time, formulate a plan for progressively reducing your expenses over time. “Have a list of the expenses you’re going to cut immediately and then know if I don’t find a job in a month, I’m gonna dig deeper and cut these [other] expenses,” Lester says.
Boost Emergency Fund: Ensure financial stability with savings covering three to six months of living expenses.
Having this checklist prepared in advance can prevent impulsive decisions about which expenses to eliminate at the moment. “When you get super stressed out, our ability to make good decisions diminishes significantly,” she says.
Also, remember that you won’t be relinquishing your subscriptions or other items on your list permanently. Consider your checklist as a short-term strategy to help reduce your expenses until you secure your next job. Once you do, you can create a new budget incorporating those expenses.
Augment your emergency fund
Additionally, strive to bolster your emergency fund. Ideally, it should encompass enough cash to cover approximately three to six months of living expenses. However, if you haven’t reached that goal yet, you’re not alone. Recent data from Bankrate shows that nearly 60% of U.S. adults wouldn’t be able to cover a $1,000 emergency expense with their savings.
Plan Ahead: Identify expenses to cut, reduce stress, and make informed decisions during layoffs.
That’s why understanding where your money is allocated is critical. A clear comprehension of your spending habits enables you to identify areas where costs can be reduced. You can then reallocate that money toward your emergency fund.
You might realize you could save money by bringing your lunch to work instead of dining out, or that you’ve been paying for a subscription you no longer need, Lester says.“There are all kinds of ways you can start cutting back without feeling like you’re being deprived,” she says.
It may be smack dab during the 2023 tax season, but it’s never too soon to assess whether you’re earmarking enough funds for next year’s tax filing. Tax withholdings, after all, are merely estimates, and they could either leave you with too much or too little cash come tax time, depending on your income and tax situation, which may have shifted since your last filing.
Underestimating your contributions could lead to an unexpectedly hefty tax bill next year, possibly even triggering an underpayment penalty. This is due to the pay-as-you-go nature of the U.S. tax system, which requires freelancers and self-employed individuals to make regular quarterly tax payments throughout the year.
On the flip side, overestimating your withholdings might mean depriving yourself of much-needed monthly funds without good reason, essentially loaning the Internal Revenue Service money interest-free.
Here’s how you can review your tax withholdings and make adjustments if necessary.
Why your tax withholding might need tweaking:
Whether you calculate your tax withholding yourself or rely on an employer via a W-4 form, any alteration to your tax liability size or the amount you owe could necessitate changes to your withholding. Factors like changes in marital status, retirement contributions, tax credits, healthcare debts, or adding dependents can all influence your tax situation significantly.
Changes in marital status, income, and dependents necessitate withholding adjustments for accurate tax payments.
“For those who are in the 22% marginal federal tax bracket, this is not a problem at all. However, those in a higher tax bracket could owe huge taxes,” says Carla Adams, a certified financial planner in Michigan.
How to verify if your tax withholding is on point:
To determine whether you’re underpaying or overpaying your 2024 taxes, begin by identifying your current withholding rate. You can find “federal income tax withholding” or “fed tax” amounts on a recent pay stub for both the last pay period and the year to date. Alternatively, reach out to your employer’s human resources department to confirm these figures.
Tax withholdings are crucial: underestimation leads to hefty bills, and overestimation deprives monthly funds, affecting cash flow.
Once you have these amounts, input them into the IRS’ tax withholding estimator. This tool provides an estimate of the taxes you’ll owe by year-end and alerts you if you’re currently overpaying or underpaying taxes for the 2024 tax year.
Based on these calculations, the IRS tool generates an updated Form W-4 with the necessary tax adjustment already incorporated, whether it’s an increase or a decrease. Simply download and submit this form to your employer, who will implement the adjustment accordingly. Remember, employers typically handle tax withholding only for the income they pay you, not for freelance or self-employed income or windfalls like lottery winnings.
If you’re self-employed, filing your tax return can be more complex. Tax software can provide estimates for your expected quarterly tax payments, or you can use Form 1040-ES, which includes a worksheet to help you calculate your tax liability. You can pay your estimated quarterly taxes on the IRS payments page.
Ultimately, it’s up to you to ensure the appropriate withholding throughout the year. Chris Mankoff, a CFP in Texas, suggests checking your withholding at least once every three months if you file a W-4, either via the IRS withholding tool or a tax professional. If you’re self-employed, he recommends using tax software or consulting a tax professional.
Tesla CEO Elon Musk had a rendezvous with former President Donald Trump on Sunday in Palm Beach, Florida, joined by a group of affluent Republican donors, as reported by the New York Times, drawing from insights provided by three individuals briefed on the gathering.
Trump is actively engaging with donors as he prepares for the upcoming general election campaign against President Joe Biden. The extent of Musk’s potential financial backing or endorsement of Trump and his 2024 campaign remains uncertain.
Requests for comment from Musk and a representative for Trump’s campaign went unanswered initially.
Observers noted the arrival of private jets belonging to both Trump and Musk at a Palm Beach airport on March 2, landing within a short span of each other. The jets’ arrival was first documented by “Elon Jet,” a service that tracks over 125 jets owned by politicians, celebrities, and business leaders using publicly accessible data.
In September 2023, Musk visited the White House to discuss advancements in artificial intelligence technology but did not have a meeting with Biden during that visit.
Back in June 2017, Elon Musk had resigned from the then-President Trump’s advisory council
Musk, the proprietor of X and head of defense contractor SpaceX in addition to Tesla, refrained from endorsing Trump in both the 2016 and 2020 presidential campaigns.
The relationship between the two has seen its share of contention. Musk resigned from then-President Trump’s advisory councils in June 2017, citing Trump’s decision to withdraw the U.S. from the Paris climate accords.
In 2022, Trump publicly labeled Musk a “bull—- artist,” alleging that the Tesla CEO claimed to have voted for Trump in private conversations. Musk promptly refuted the claim, asserting that the first time he voted for a Republican was in support of Mayra Flores in a Texas special election that year.
Musk has openly criticized both Trump and Biden. In a July 2022 tweet, Musk expressed that while he harbors no animosity towards Trump, it’s time for him to step away from the spotlight. He also urged Democrats to cease their attacks, suggesting that Trump’s only route to survival should not be through regaining the presidency.
During the same period, Trump accused Musk of seeking assistance at the White House for his various subsidized projects, including electric cars, autonomous vehicles, and space exploration endeavors.
Since Musk’s acquisition of Twitter, rebranded as X, he has become more vocal about his political views and has been seen alongside right-wing political figures globally.
As Trump is going against Joe Biden in the general elections, he’s been actively engaging with donors. (Credits: E Times)
In May 2022, Musk criticized the Biden administration for allegedly sidelining and neglecting Tesla despite its prominence in the electric vehicle sector.
Following Musk’s acquisition of Twitter with financial support from Saudi Arabia in November 2022, President Biden hinted at potential national security concerns regarding Musk’s collaborations with foreign entities.
Last year, Musk indicated a leaning towards supporting Florida Governor Ron DeSantis, who later suspended his campaign and endorsed Trump ahead of the New Hampshire primary in January.
During the DealBook Summit in November, Musk expressed his reluctance to support Biden while refraining from endorsing Trump. He also criticized Nikki Haley, a contender against Trump in the Republican primary, labeling her as a “pro-censorship” candidate.
On Tuesday, Musk utilized X to critique the Biden administration’s immigration policies and voiced support for Republican candidates such as Marty O’Donnell, a composer known for his work in popular video games, who is running for Congress in Nevada, and Jeremy Sylestine, a candidate for district attorney in Austin, Texas.
The Supreme Court on Monday unanimously overturned the Colorado court’s decision that prevented former President Donald Trump from being included on the state’s Republican presidential primary ballot due to a provision in the U.S. Constitution regarding insurrection.
The Supreme Court’s decision ensures that no state can prohibit Trump or any other candidate from future presidential ballots or congressional elections by citing the insurrection clause in Section 3 of the 14th Amendment to the Constitution. Section 3 stipulates that “no person” can hold a federal office if they have previously taken an oath of office and “engaged in insurrection or rebellion” against the United States.
Colorado was the first of three states to block Trump from a primary ballot because of his alleged role in inciting the January 6, 2021, riot at the U.S. Capitol, which disrupted the confirmation of President Joe Biden’s Electoral College victory over Trump. “We conclude that States may disqualify persons holding or attempting to hold state office,” the ruling stated.
“But States have no power under the Constitution to enforce Section 3 concerning federal offices, especially the Presidency.” “For the reasons given, responsibility for enforcing Section 3 against federal officeholders and candidates rests with Congress and not the States,” the ruling added. “The judgment of the Colorado Supreme Court therefore cannot stand.”
Justices unanimously agree states lack the power to enforce the Constitution’s Section 3 on federal offices. (Credits: History in HD)
Trump, widely seen as the frontrunner for the GOP presidential nomination, reacted to the ruling in a post on Truth Social, writing, “BIG WIN FOR AMERICA!!!” Later, speaking from his home in Florida, Trump stated, “The voters can take someone out of the race very quickly, but a court shouldn’t be doing that and the Supreme Court said that very well.”
“It was a very important decision, very well-crafted, and I think it will go a long way toward bringing our country together, which our country needs,” he added. The decision, which ensures that votes he receives on Tuesday’s ballot will count for the former president, did not come as a surprise. During oral arguments in the case on February 8, many of the justices appeared skeptical of the Colorado Supreme Court’s reasoning for disqualifying Trump from the ballot.
“I think that the question that you have to confront is why a single state should decide who gets to be president of the United States,” Justice Elena Kagan, one of the court’s progressive members, remarked during the hearing to a lawyer for the six Colorado voters who sought Trump’s disqualification.
However, in a concurring opinion on Monday, Kagan, along with the other liberal justices, Justice Sonia Sotomayor and Justice Ketanji Brown Jackson, expressed disagreement with the finding by the five conservative justices that “a disqualification for insurrection can only occur when Congress enacts a particular kind of legislation pursuant to Section 5 of the Fourteenth Amendment.”
The decision made by the Supreme Court nullifies bans in Maine and Illinois; all states are now barred from invoking the insurrection clause.
“In doing so, the majority shuts the door on other potential means of federal enforcement,” the trio wrote. “We cannot join an opinion that decides momentous and difficult issues unnecessarily, and we therefore concur only in the judgment.”
Justice Amy Coney Barrett, a conservative, in her own concurring opinion, agreed with the three liberals that the case did not necessitate the Supreme Court ruling that only congressional legislation could enforce the insurrection clause.
“This suit was brought by Colorado voters under state law in state court,” Barrett wrote. “It does not require us to address the complicated question whether federal legislation is the exclusive vehicle through which Section 3 can be enforced.” However, Barrett added, “In my judgment, this is not the time to amplify disagreement with stridency.”
“The Court has settled a politically charged issue in the volatile season of a Presidential election,” she wrote. “Particularly in this circumstance, writings on the Court should turn the national temperature down, not up.”
“For present purposes, our differences are far less important than our unanimity: All nine Justices agree on the outcome of this case. That is the message Americans should take home.” Monday’s ruling overturns decisions by two other states, Maine and Illinois, which also barred Trump from their primary ballots citing Section 3 of the 14th Amendment.
All three states’ decisions are now nullified due to the Supreme Court’s ruling on Monday.
The amendment “was designed to help ensure an enduring Union by preventing former Confederates from returning to power in the aftermath of the Civil War,” the Supreme Court explained on Monday.
In a ruling in November, a Denver District Court judge ruled that Trump could appear on Colorado’s ballot, despite her belief that he had “engaged in insurrection” by inciting the attack on the Capitol by a mob of his supporters.
The deadly attack led members of Congress to flee the House of Representatives and the Senate, delaying by hours their certification of Biden’s election as president. A Senate report later found that at least seven people died in connection with the attack, and more than 170 police officers were injured.
When Paul Scanlan and Jeff Annison initially conceived their production studio, Legion M, their vision extended beyond mere corporate structure; they aspired to foster a sense of community.
The film studio responsible for notable titles such as “Jay and Silent Bob Reboot,” “Colossal,” and the forthcoming William Shatner documentary “You Can Call Me Bill” represents a facet of Hollywood’s evolving landscape over the past decade toward a fresh crowdfunding paradigm. This model enables producers to seek financial support for film and television ventures, offering investors more than just exclusive merchandise.
Now, supporters stand to gain a tangible return on their investments.
“I think a lot of people view equity crowdfunding as an alternative method of fundraising,” remarked Annison, serving as both cofounder and president of Legion M. “It’s a distinct approach to financing your company or your film. And we see it as a fundamentally different strategy for cultivating a fundamentally different kind of business.”
Legion M debuted in 2016 following the enactment of the Jumpstart Our Business Startups (JOBS) Act, which dismantled barriers to capital acquisition, granting companies access to funding avenues previously inaccessible due to regulatory constraints.
While crowdfunding itself is not novel, Legion M is pushing its boundaries, affording everyday movie enthusiasts a stake in Hollywood’s affairs.
In under a decade, the studio has collaborated with numerous Hollywood luminaries, including Anne Hathaway and Jason Sudeikis for the 2016 film “Colossal,” and Simon Pegg alongside Minnie Driver in 2023’s “Nandor Fodor and the Talking Mongoose.” Moreover, the company has backed the recently premiered cryptocurrency documentary “This is Not Financial Advice.”
Angel Studios’ “Sound of Freedom” grossed $250M globally on a $14.5M budget. (Credits: Angel Studios)
Crowdfunding platforms such as Kickstarter, GoFundMe, and Indiegogo have long provided creators with the means to harness the support of their most dedicated fan bases to bring their visions to life.
Historically, Kickstarter backers have contributed substantial sums, including $3.1 million for Zach Braff’s 2014 film “Wish I Was Here,” $5.7 million for Rob Thomas’ 2014 “Veronica Mars” movie, and an impressive $11.3 million for Critical Role’s “Legend of Vox Machina” animated series, later acquired by Amazon Prime Video. However, Kickstarter’s model does not allow campaign creators to offer financial returns to their backers. This is where Legion M distinguishes itself. In the event of a successful theatrical run or acquisition by a distributor, investors in Legion M-backed film or television projects stand to profit.
“For the William Shatner documentary, we essentially replaced the traditional single financier with 1,200 smaller investors,” explained Annison. The minimum investment required for the documentary was $100. Additionally, investors have the opportunity to acquire a stake in Legion M itself for as little as $40, with the company boasting over 45,000 investors.
In the case of “My Dead Friend Zoe,” Legion M combined funds from its investors with contributions from more established Hollywood financiers, including Kansas City Chiefs star tight end Travis Kelce. Legion M also offers creators access to its substantial fanbase, a feature that independent filmmaker Chris Temple, co-director of “This is Not Financial Advice,” found to be a valuable asset. Temple’s documentary delves into the experiences of retail investors navigating the volatile world of cryptocurrency.
Temple expressed that collaborating with Legion M felt like a natural fit from the outset. “This is a grassroots film about investors gaining entry into previously inaccessible markets and individuals taking control of their financial destinies,” he remarked, drawing parallels with the ethos of Legion M’s endeavors.
Legion M isn’t the only player in this arena. Angel Studios made waves with its crowdfunded film “Sound of Freedom,” raking in approximately $250 million worldwide on a budget of just $14.5 million.
While Angel Studios positions itself as a beacon of “light” in the entertainment industry, its primary focus lies in bringing religious-themed content into the mainstream. Conversely, Legion M targets the Comic-Con demographic, although it’s expanding its repertoire to encompass comedies, thrillers, murder mysteries, dramas, sci-fi action films, and documentaries.
Matt Conkling found a Hollywood career via Legion M investments and volunteering opportunities. (Credits: CNBC News)
“What’s particularly appealing about Legion M’s approach is that we’re cultivating a built-in audience,” emphasized Scanlan, the company’s co-founder and CEO. The company’s logo, featuring an “M” with a bar overhead symbolizing the Roman numeral for one million, epitomizes Legion M’s aspiration to attract one million fans as shareholders.
“Picture an entertainment company or studio with a million fans who not only have a financial stake in the films they release but are also emotionally invested,” elaborated Annison. “They’ve been with us since day one, have had behind-the-scenes access, and have heard the director’s vision firsthand.” One such enthusiast is Matt Conkling, who made his inaugural investment in the company in 2019, enticed by Legion M’s unique offering that allowed investors to not only contribute financially but also participate in productions.
Shortly after his initial investment, Conkling spotted a post from the company seeking various props, including neon signs and vehicles, for its mystery-thriller “Archenemy,” starring Joe Manganiello of “True Blood” fame. “I volunteered my 1975 Chevy El Camino,” Conkling recalled. “Two days later, I received a call to assist with handling the car on set.”
“It transitioned from handing over my keys to receiving a crash course in the film industry,” he continued. “After that experience, I was hooked.” Previously, Conkling had attempted to get involved in a film project with another production company, though he couldn’t meet the hefty $25,000 minimum investment requirement. “How often do ordinary people get the opportunity to potentially invest in something with such a low entry point?” he mused.
For Conkling, Legion M has evolved from a casual investment into a quasi-career. While he continues to financially support individual film projects promoted by the company—with aspirations to eventually own 1% of the company—he has carved out his niche in Hollywood by volunteering his car for one production, leading to subsequent roles in sourcing props for other films, including “The Man in the White Van” and “The Long Game,” and even appearing as a background actor in Netflix’s “The Grey Man.”
“Legion M is a continual source of opportunities,” Conkling remarked.
Building financial wellness hinges on establishing a robust budget.
“A budget is a picture of what your money is doing,” shared Tiffany Aliche, also known as The Budgetnista, during a Women & Wealth livestream on CNBC.
“It’s the foundation where you build your financial house. You have to understand what your money is doing,” emphasized Aliche, a renowned personal financial educator and author of “Get Good with Money.” By scrutinizing your expenditures and creating a budget, you may uncover funds to establish other financial safety nets, such as an emergency savings fund and contributions towards retirement.
“You’re supposed to give each dollar a job,” asserted Sophia Bera Daigle, a certified financial planner and the founder of Gen Y Planning in Austin, Texas.
It’s also beneficial to consider your budgets from an annual perspective. Taking on significant new expenses like purchasing a car or a house, or facing unexpected emergencies, can impact your monthly spending, noted Daigle, who is also a CNBC Financial Advisor member.
How to manage the budget in three simple steps
1. Make a list of expenses: Begin by compiling a list of all your monthly expenditures, advises Aliche. “That’s step one.” Include fixed expenses like rent or car payments, as well as variable expenses such as groceries and utilities. Additionally, consider listing expenses that occur irregularly, like annual memberships or quarterly taxes.
Expense Listing: Compile all monthly spending, including fixed, variable, and irregular expenses, for clarity. (Credits: Unsplash)
2. Check your records: Next, compare your estimates with your actual spending. Review your recent debit and credit card statements to tally up your expenditures for a recent month.
Record Check: Match estimates with actual spending by reviewing recent debit/credit card statements. (Credits: Unsplash)
3. Figure out how your spending matches with your income: After determining your monthly spending, calculate the difference from your income. Aliche refers to this as “the tears and tissues” step, as many people discover they’re overspending.
Income Alignment: Calculate the difference between spending and income to identify overspending areas.
“A lot of people hold onto the financial mistakes they made in their life,” noted Aliche. Don’t let the “tears and tissues” budgeting step derail you. “Shame shields solutions,” she emphasized.
To move forward, seek support and accountability from your community. Adjust your spending habits to align with your budget and create space to achieve your financial goals.
Additionally, Aliche stresses the importance of recognizing that money is a collaborative effort. “Understand that money is a team sport,” she advises. Surround yourself with a “board of directors” to assist you in reaching your objectives, such as an accountability partner, an accountant, and a financial advisor.
Former Trump Organization chief financial officer Allen Weisselberg pleaded guilty Monday to perjury charges related to his testimony in the New York civil fraud trial of Donald Trump and his company. Appearing in Manhattan criminal court in handcuffs and a face mask, the 76-year-old Weisselberg pleaded guilty to two counts of perjury in the first degree.
He was initially charged with five counts. The Manhattan district attorney recommended that a judge sentence Weisselberg to five months in jail. The D.A. agreed to allow Weisselberg’s release ahead of his April 10 sentencing. If Weisselberg violates his release conditions, his sentence could be enhanced to up to seven years in prison, NBC News reported.
“It is a crime to lie in depositions and at trial – plain and simple,” a spokesperson for the D.A.’s office said in a statement later Monday morning. Weisselberg “looks forward to putting this situation behind him,” his attorney, Seth Rosenberg, said in a statement.
Allen Weisselberg pleads guilty to perjury charges in Trump Organization fraud trial.
The charges accuse Weisselberg of lying in a deposition and later testimony in the Trump business fraud trial brought by New York Attorney General Letitia James. “Donald Trump, his adult sons, his company, and its top executives fraudulently misstated Trump’s asset values on years of business records in order to boost Trump’s net worth and obtain other financial perks,” the statement continued.
After his October trial testimony, Forbes magazine accused Weisselberg of lying under oath when he suggested he had not paid attention to the valuation of Trump’s penthouse apartment. By pleading guilty Monday, Weisselberg admitted to two counts of lying about the size of Trump’s triplex apartment during a 2020 investigative deposition, according to the D.A.’s office.
As part of his plea agreement, Weisselberg also admitted conduct related to three other perjury counts, centering on false statements he made in a May 2023 deposition and in his trial testimony. “Weisselberg took an oath to be truthful, and then committed perjury both at depositions during the New York State Attorney General’s Investigation and Proceeding, as well as at their recent trial,” read Monday’s statement from the D.A.’s office.
“Today, Allen Weisselberg is pleading guilty to this felony and being held responsible for his conduct.”
Weisselberg has already pleaded guilty once in connection with his work for the Trump Organization. He was sentenced to five months in jail in New York after pleading guilty to tax fraud charges brought by the Manhattan DA’s office. He was released from the notorious Rikers Island jail in April 2023 after three months behind bars.
The New York Times reported in early February that Weisselberg was in negotiations to plead guilty to lying on the witness stand in the fraud trial.
Trump appealed for $454 million fine ongoing as the campaign faces legal penalties.
Manhattan Supreme Court Judge Arthur Engoron, who presided over that trial, ordered attorneys in the case to provide details related to the Times’ report. A defense attorney responded that the judge’s request was “unprecedented, inappropriate and troubling.”
Trump is appealing Engoron’s judgment ordering the former president to pay more than $454 million in fines and interest for submitting fraudulent information about his asset values on years of financial records. Trump’s post-judgment interest will accrue by nearly $112,000 a day until it is paid.
Trump is fighting well over half a billion dollars in legal penalties as he campaigns for another term in the White House. Trump campaign spokesman Steven Cheung in a statement accused Manhattan D.A. Alvin Bragg of waging “a crusade of vindictive and oppressive pressure” in his “pursuit” of Trump.
Bragg is prosecuting Trump on charges of falsifying business records related to hush money payments made to women who say they had affairs with Trump. That case is set to head to trial on March 25.
China did not convene its so-called “Third Plenum” meeting in the fall of 2023 and has not yet scheduled a date for the eagerly awaited plenary session. That is a “pretty big deal”, according to Stephen Roach, a senior fellow at Yale Law School — who says this may be a sign the country is struggling to find solutions to the challenges it is faced with.
Chinese President Xi Jinping has utilized the plenum gatherings to unveil a plethora of reforms to establish the tone for his leadership, and while not all of those policies have been executed, they conveyed a message about the country’s future, Roach conveyed to CNBC’s “Squawk Box Asia” on Monday.
“The failure to take advantage of that opportunity at a time like we have today in China, which is actually a much more serious set of challenges that China faces, I think, you know, indicates the fact that they may have run out of imaginative solutions to tough problems,” Roach said.
China’s delayed Third Plenum raises economic uncertainty, signaling potential struggles in policy innovation.
China is grappling with an array of issues, not least economically. Defying expectations, the world’s second-largest economy has struggled to regain momentum following the coronavirus pandemic.
This encompasses the country’s real estate sector, which has been in disarray as construction projects remain unfinished and developers grapple to make ends meet. Recent data has hinted at an economic deceleration, which coupled with persistent deflation and a sluggish stock market has left many market participants pondering whether to invest in China’s economy.
Other challenges encompass China’s aging population and productivity, Roach pointed out.
“China’s got an aging society and it’s got productivity issues and it needs more productivity growth to offset the loss of workers and how are they going to do it?”
“Xi Jinping has been talking about you know new models and new sources of production, but we need to see something more specific, and the lack of a third plenum to give us that specificity I think is troublesome,” Roach remarked.
The Chinese Embassy in London did not immediately respond to CNBC’s request for comment.
What is China’s ‘Third Plenum’?
While Chinese authorities have announced some measures to bolster the country in recent months, including cuts to the benchmark five-year loan rate that mortgages are often pegged to, observers have said the measures are not far-reaching enough.
China’s “Third Plenum” meetings typically see senior party officials come together in the fall around a year after new leadership takes office, or current leaders are confirmed. A meeting would therefore have been expected to take place in the last quarter of 2023.
Observers scrutinize Beijing’s political moves amid a sluggish economy, questioning priorities and future direction. (Credits: CNBC News)
Plenum meetings have been a hallmark of China’s political system, with seven of them usually taking place during the five-year term of the ruling Central Committee, which is elected by the National Congress. Each meeting tends to cover a specific theme, with the third one typically focusing heavily on economic issues.
Observers often take clues about the potential path ahead for the government and what its priorities are from the plenum meetings. At times, statements released following the plenum meetings have been deemed as too vague, with a lack of concrete action plans.
On other occasions, however, they have been viewed as economic turning points, with policies targeting growth and expansion setting the scene for years to come. This has raised questions about the delay of the 2023 plenum amid the sluggish state of China’s economy.
China’s annual parliamentary meetings, which cover topics such as government policy plans and targets and are known as the “Two Sessions,” begin this week. Investors are paying close attention to any signals about economic stimulus that may come out of the meetings.
In a move that broke with traditional Chinese political procedure, Beijing on Monday announced that Premier Li Qiang would not be giving a press conference at this year’s parliamentary meeting. They would also not happen during the remainder of the congressional term — which is set to last three more years.
Norway’s government aims to demonstrate the feasibility of securely injecting and storing carbon waste beneath the seabed, asserting that the North Sea could soon serve as a “central storage camp” for polluting industries across Europe. Offshore carbon capture and storage (CCS) encompasses various technologies designed to capture carbon from high-emission activities, transport it to a storage site, and permanently sequester it beneath the seabed.
The oil and gas sector has long advocated for CCS as a potent tool in combating climate change, with polluting industries increasingly considering offshore carbon storage as a means to mitigate planet-warming greenhouse gas emissions.
However, critics have raised concerns about the enduring risks associated with storing carbon beneath the seabed, while activists argue that the technology poses “a new threat to the world’s oceans and a dangerous distraction from real progress on climate change.”
Norway’s Energy Minister, Terje Aasland, expressed optimism about his country’s “Longship” project, which he believes will establish a comprehensive, large-scale CCS value chain. “I think it will prove to the world that this technology is important and available,” Aasland remarked during a videoconference, alluding to the Longship project’s CCS facility in the coastal town of Brevik.
Public acceptance risk hinders onshore CO2 storage despite solid technical solutions. (Credits: Global CSS Institute)
“I think the North Sea, where we can store CO2 permanently and safely, maybe a central storage camp for several industries and countries in Europe,” he added. Norway boasts a substantial track record in carbon management. For nearly three decades, it has captured and re-injected carbon from gas production into seabed formations on the Norwegian continental shelf.
The Sleipner and Snøhvit carbon management projects, operational since 1996 and 2008 respectively, serve as tangible examples of the technology’s feasibility. These facilities extract carbon from the produced gas, compress it, and transport it via pipelines for reinjection underground.
“We can see the increased interest in carbon capture storage as a solution, and those who are skeptical of such solutions can visit Norway and witness the success at Sleipner and Snøhvit,” remarked Norway’s Aasland. “It’s several thousand meters under the seabed, it’s safe, it’s permanent, and it’s an effective means of addressing climate emissions.”
Despite their successes, both the Sleipner and Snøhvit projects encountered initial challenges, including interruptions during carbon injection.
Citing these issues in a research note last year, the Institute for Energy Economics and Financial Analysis, a U.S.-based think tank, suggested that rather than serving as flawless models for replication and expansion, these problems “raise doubts about the long-term technical and financial viability of reliable underground carbon storage.”
“Overwhelming” Interest
Norway is set to advance the $2.6 billion Longship project in two phases. The initial phase aims to establish a storage capacity of 1.5 million metric tons of carbon annually over a 25-year operational span, with carbon injections potentially commencing as early as next year. A potential second phase is anticipated to enhance the storage capacity to 5 million tons of carbon.
Advocates argue that even with the projected expansion in the amount of carbon stored beneath the seabed during the second phase, “it remains a drop in the proverbial bucket.” Indeed, it is estimated that the carbon injection would only constitute less than one-tenth of 1% of Europe’s carbon emissions from fossil fuels in 2021.
Offshore CCS sees a 200-fold increase in carbon injection under the seafloor. (Credits: Treehugger)
The government asserts that the construction of Longship is “progressing well,” although Minister Aasland acknowledged that the project has incurred substantial costs. “Every time we introduce new technologies to the market, it entails high costs. So, this being the first of its kind, the subsequent projects will be more economical and straightforward. We have gleaned valuable insights from this endeavor,” Aasland remarked.
“I believe this will prove to be a noteworthy project, demonstrating the feasibility of such endeavors,” he added. A pivotal aspect of Longship is the Northern Lights joint venture, a collaboration between Norway’s state-backed oil and gas giant Equinor, Britain’s Shell, and France’s TotalEnergies. The Northern Lights partnership will oversee the transportation and storage components of the Longship project.
Børre Jacobsen, managing director for the Northern Lights Joint Venture, disclosed that they had received “overwhelming” interest in the project.
“There’s a lengthy history of efforts to initiate CCS initiatives in Norway, culminating a few years ago in a concerted effort to draw lessons from past achievements — and less successful endeavors — to ascertain how we can effectively launch CCS initiatives,” Jacobsen conveyed to CNBC via videoconference.
Jacobsen highlighted the North Sea as an exemplary illustration of a “vast basin” with considerable storage potential, noting the advantage of offshore CCS due to the absence of human habitation in those areas.
“There is definitely a public acceptance risk to storing CO2 onshore. The technical solutions are very solid so any risk of leakage from these reservoirs is very small and can be managed but I think public perception is making it challenging to do this onshore,” Jacobsen said. “And I think that is going to be the case to be honest which is why we are developing offshore storage,” he continued.
“Given the amount of CO2 that’s out there, I think it is very important that we recognize all potential storage. It shouldn’t matter, I think, where we store it. If the companies and the state that controls the area are OK with CO2 being stored on their continental shelves… it shouldn’t matter so much.”
Offshore carbon risks
A report published late last year by the Center for International Environmental Law (CIEL), a Washington-based non-profit, found that offshore CCS is currently being pursued on an unprecedented scale. As of mid-2023, companies and governments around the world had announced plans to construct more than 50 new offshore CCS projects, according to CIEL.
If built and operated as proposed, these projects would represent a 200-fold increase in the amount of carbon injected under the seafloor each year. Nikki Reisch, director of the climate and energy program at CIEL, struck a somewhat cynical tone on the Norway proposition. “Norway’s interpretation of the concept of a circular economy seems to say ‘we can both produce your problem, with fossil fuels and solve it for you, with CCS,’” Reisch said.
“If you look closely under the hood at those projects, they’ve faced serious technical problems with the CO2 behaving in unanticipated ways. While they may not have had any reported leaks yet, there’s nothing to ensure that unpredictable behavior of the CO2 in a different location might not result in a rupture of the caprock or other release of the injected CO2.”
A Norfolk Southern freight train derailed Saturday morning in Pennsylvania’s Lehigh Valley, spilling diesel and plastic pellets into the nearby river, according to local authorities. “No injuries were reported upon a preliminary assessment of the scene,” according to police and fire rescue departments in the Lower Saucon Township where the derailment took place.
“The Saturday incident comes just over a year after Norfolk Southern’s trains derailed in East Palestine, Ohio, on Feb. 3, 2023, releasing toxic chemicals into the surrounding water and air, and setting off a damaging fire,” according to officials. “Days later, officials said the town had increased reports of headaches, nausea and other symptoms from residents.”
“The Pennsylvania derailment has not triggered the same contamination so far, according to preliminary assessments,” officials said. Still, the derailment comes as Norfolk Southern faces a determined activist group, led by Ancora Holdings, which has amassed a $1 billion stake in the company to oust CEO Alan Shaw.
No injuries were reported as the Norfolk Southern train derailed, triggering environmental concerns in Lehigh Valley.
“There currently are no evacuations or hazardous material threat to the community,” the Lower Saucon Township Police Department said in a statement at 11 a.m. ET, hours after first responders were dispatched. “We request that everyone stay out of the area so first responders and Norfolk Southern personnel can continue to assess and work at the scene.”
“Emergency responders deployed “containment booms,” barriers used to control the spread of oil, in the Lehigh River where there was a diesel fuel spill from one of the train cars, police said. One of the train cars also released a heap of polypropylene plastic pellets.”
“Norfolk Southern’s crews joined local emergency responders at the scene to assess the damage.”
“Our crews and contractors will remain on-scene over the coming days to clean up, and we appreciate the public’s patience while they work as quickly, thoroughly, and as safely as possible,” the company said in a statement to CNBC. “We are always working to advance safety. We will investigate this incident to understand how it happened and prevent others like it.”
“The company said it would vacuum out the diesel fuel in the river and clean up the plastic pellets. A nearby road will be temporarily closed in the meantime.”
“The National Transportation Safety Board’s initial assessment of Saturday’s derailment found that an eastbound Norfolk Southern train collided with a parked train on the same track. The consequent wreckage was then struck by a westbound Norfolk Southern train.”
Norfolk Southern faces activist pressure after another derailment, echoing past Ohio toxic spill incident. (Credits: CNN News)
“The NTSB is sending a team of “experts in train operations, signals & train control, mechanical systems, and human performance” to the scene later today.”
“Saturday’s derailment in Pennsylvania adds to Norfolk Southern’s already full plate. The company has been dealing with the aftermath of that East Palestine derailment for the past year.” “The company and Shaw’s handling of the East Palestine fallout have been one of the things that Ancora has scrutinized in its proxy materials.”
“We hope the crew and everyone in Lower Saucon Township are unharmed by yet another derailment of a Norfolk Southern train,” Cleveland-based Ancora said in a statement Saturday. It also reiterated a demand for Shaw to step down.” “The Environmental Protection Agency and White House officials demanded the company facilitate and pay for the cleanup and offer “unequivocal support” for East Palestine.”
A year later, the community is still reeling from the Norfolk Southern train disaster, wary of the longer-term environmental impacts that the contamination could have set off. President Joe Biden visited East Palestine in February to express support for the community and urge stronger railway safety regulation.
World Trade Organization (WTO) negotiators remained deadlocked on major reforms despite prolonged talks in Abu Dhabi, reflecting a prioritization of national interests over collective responsibility, according to some delegates.
The negotiations, which ran overtime, concluded on Saturday after five days without significant progress on crucial issues such as agriculture, fisheries, and others. However, there was a two-year extension of the moratorium on imposing tariffs on e-commerce data transmissions, offering some relief to businesses.
“Achieving consensus on critical matters like fisheries and harmful subsidization, crucial for the WTO’s mandate, proved elusive due to a lack of willingness to compromise,” remarked a senior European official. By the fifth day of the ministerial meeting, most ministers had departed, with only India’s trade minister Piyush Goyal, and European Trade Commissioner Valdis Dombrovskis remaining until the conclusion.
Dombrovskis expressed disappointment over the lack of consensus on fisheries, agriculture, and broader reforms, and pointed fingers at India for the impasse.
Two-year extension on e-commerce tariff moratorium amid deadlock in Abu Dhabi talks. (Credits: X- formerly Twitter)
“Agreements were within reach, supported by an overwhelming majority of members, but ultimately blocked by a handful of countries – sometimes just one,” he stated. Goyal, who stood firm on these issues, appeared jovial, exchanging pleasantries outside a meeting room late on Friday as delegates congregated near a coffee stand.
India pressed for a longstanding promised permanent resolution on public holdings of agriculture stocks, a stance opposed by some developed nations. “We have not lost out on anything. I go back happy and satisfied,” Goyal remarked to reporters as the talks approached their conclusion.
Delegates characterized the discussions as intense and contentious at times, yet WTO Director-General Ngozi Okonjo-Iweala attempted to inject a positive note into the challenging week, stating during a closing session, “We’ve worked hard this week, we have achieved some important things and we have not managed to complete others.”
Initially resistant, India and South Africa opposed extending a moratorium on digital trade tariffs, despite widespread support from most governments and businesses. However, they later relented following an appeal from the host country, the United Arab Emirates.
Disagreement within BRICS: India-China rift, delayed participation, highlighting fragmentation concerns. (Credits: Council of Councils)
Past WTO ministerial meetings have faced similar setbacks, and this year’s negotiations, hosted in the oil-rich Gulf state of the United Arab Emirates, have underscored divisions among some of the world’s leading economies.
U.S. President Joe Biden’s trade chief, Katherine Tai, expressed concerns in an interview with Reuters late on Thursday that the failure of talks could exacerbate fragmentation within the BRICS group.
India and China, key members of the BRICS nations, have been at odds on crucial issues, particularly regarding investment. India’s commerce minister joined the negotiations two days after they commenced, following the departure of his Chinese counterpart from Abu Dhabi.
Pacific island nations voiced grievances during the talks, feeling marginalized and overlooked by major powers, arguing that proposed measures fell short in safeguarding fish stocks. However, Fiji’s delegate received a standing ovation at the close of the ceremony after urging countries to endorse future negotiations on fisheries. Under Biden, the U.S. has reaffirmed its support for global trade and multilateral organizations like the WTO.
Nonetheless, negotiators remained wary of the possibility of former President Donald Trump, who disrupted the multilateral system, winning a second term in the U.S. presidential election in November. John Denton, head of the International Chamber of Commerce, cautioned that the lackluster outcomes from the meeting should prompt a reevaluation of the role of trade in society, both locally and globally.
He emphasized, “No country stands to gain from a weakened multilateral trading system.” Earlier in the week, even the formal acceptance of completed negotiations on improving investment was stymied, reflecting the requirement for consensus among all 164 members of the organization.
A consensus on significant agreements would have bolstered the UAE’s standing as a global intermediary, aligning with its current emphasis on multilateralism and dialogue, a departure from its assertive foreign policy stance of a decade ago.
Tesla introduced fresh incentives, including insurance subsidies, on Friday to attract consumers in the world’s largest auto market, where the U.S. electric vehicle giant is engaged in an enduring price battle against established competitors such as BYD.
According to a post on its Weibo account, Tesla stated that customers acquiring existing inventories of Model 3 sedans and Model Y SUVs by the end of March would qualify for a maximum of 34,600 yuan ($4,807.76) worth of incentives.
These incentives comprise an 8,000 yuan discount on car insurance products through partnerships with Tesla and a 10,000 yuan discount for opting for a paint color change.
Customers can save up to 34,600 yuan on Model 3 and Model Y purchases.
Additionally, Tesla is offering time-limited preferential financing plans that could result in savings of up to 16,600 yuan for Model Y purchases.
When questioned about Tesla’s inventory levels in China, a sales representative acknowledged that it was limited but refrained from disclosing specifics.
Despite a request for comment, Tesla did not respond.
In response to diminishing demand and escalating competition, Tesla reduced prices on select Model 3 and Model Y vehicles in China in January and began offering cash discounts for certain Model Ys starting February 1st.
Rivals BYD and Geely respond with price cuts on their popular SUV models.
Meanwhile, its primary local competitor, BYD, lowered the starting price of a new iteration of its Song Pro hybrid SUV by 15.4% on Friday.
Having overtaken Tesla as the world’s leading EV manufacturer in the fourth quarter, BYD responded to Tesla’s moves with even more substantial discounts on various new car models in February.
Geely Auto, BYD’s principal domestic rival, likewise slashed the starting prices for its popular Galaxy L6 and L7 models by 15% and 9%, respectively, on Friday.
