Acclaimed music producers Jimmy Jam and Terry Lewis are leading the music industry’s effort to lobby lawmakers on Capitol Hill to help navigate the challenges artificial intelligence poses to the industry. Nikole Killion reports.
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By Davide Barbuscia
NEW YORK (Reuters) – A measure of the cost of borrowing short-term funds backed by U.S. Treasuries spiked this week to its highest since 2019, a move some market participants attributed to dealers closing their balance sheets for the year.
The DTCC GCF Treasury Repo Index, which tracks the average daily interest rate paid for the most-traded General Collateral Finance (GFC) Repo contracts for U.S. Treasuries, jumped to 5.452% on Tuesday from 5.395% last week. That is the highest level since September 2019, when dwindling bank reserves sent the cost of overnight loans as high as 10%, forcing the Federal Reserve to intervene.
The spike resulted from dealers closing their books for the year, which meant borrowers had to pay more to fund their collateral, several market participants said.
“It looks like there was a need for cash which drove up the overnight fund rates,” said Tom di Galoma, managing director and co-head of global rates trading at BTIG. “There is a lot volatility in overnight rates due to year-end.”
A spike in the price for repurchase agreements, or repos, in which investors borrow against Treasury and other collateral, can be a sign that cash is getting scarce in a key funding market for Wall Street. A three-day jump in the Treasury GCF Repo Index from Nov. 30 to Dec. 4 raised concerns on whether cash levels were sufficiently healthy.
This week’s GFC repo price increase is not worrying, said Steven Zeng, U.S. rates strategist at Deutsche Bank. “The GCF market is dealer to dealer lending, so a much more limited amount of cash (is) being moved around, resulting in higher rates.”
Because large dealer banks are offering less intermediation at year-end, cash in money market funds could not make its way to hedge funds and other cash borrowers. Increased usage of the Fed’s reverse repo facility, through which money market funds lend to the Fed, was evidence of money market funds wanting to invest cash but lacking private counterparties, Zeng said.
Cash flowing into the Fed’s reverse repo (RRP) facility jumped to $793.9 billion on Dec. 26 from $772.3 billion as of the end of last week.
“It’s year-end coming and bank balance sheets and window-dressing are preventing the money market funds from taking cash to banks,” said Scott Skyrm, executive vice president of Curvature Securities. “If it wasn’t year end … a lot more of that RRP cash would be flowing into the repo market.”
(Reporting by Davide Barbuscia; Editing by Ira Iosebashvili and Richard Chang)
Michigan’s Supreme Court is keeping former President Donald Trump on the state’s primary election ballot.
The court said Wednesday it will not hear an appeal of a lower court’s ruling from groups seeking to keep Trump from appearing on the ballot.
It said in an order that the application by parties to appeal a Dec. 14 Michigan appeals court judgment was considered, but denied “because we are not persuaded that the questions presented should be reviewed by this court.”
The ruling contrasts with Dec. 19 decision by a divided Colorado Supreme Court which found Trump ineligible to be president because of his role in the Jan. 6, 2021, attack on the U.S. Capitol. That ruling was the first time in history that Section 3 of the 14th Amendment has been used to disqualify a presidential candidate.
The Michigan and Colorado cases are among dozens hoping to keep Trump’s name off state ballots. They all point to the so-called insurrection clause that prevents anyone from holding office who “engaged in insurrection or rebellion” against the Constitution. Until the Colorado ruling, all had failed.
The Colorado ruling is likely to be appealed to the U.S. Supreme Court, which has never ruled on the rarely used Civil War-era provision.
The plaintiffs in Michigan can technically try again to disqualify Trump under Section 3 of the 14th Amendment in the general election, though it’s likely there will be a U.S. Supreme Court ruling on the issue by then. The state’s high court on Wednesday upheld an appeals court ruling that the Republican Party could place anyone it wants on the primary ballot. But the court was silent on whether Section 3 of the 14th Amendment would disqualify Trump in November if he becomes the GOP nominee.
“We are disappointed by the Michigan Supreme Court’s decision,” said Ron Fein, legal director of Free Speech for People, the liberal group that filed the suit to disqualify Trump in the state. “The ruling conflicts with longstanding US Supreme Court precedent that makes clear that when political parties use the election machinery of the state to select, via the primary process, their candidates for the general election, they must comply with all constitutional requirements in that process.”
Trump hailed the order, calling the effort to keep him off the ballot in multiple states a “pathetic gambit.”
Only one of the court’s seven justices dissented. Justice Elizabeth M. Welch, a Democrat, wrote that she would have kept Trump on the primary ballot but the court should rule on the merits of the Section 3 challenge. The court has a 4-3 Democratic majority.
Trump pressed two election officials in Michigan’s Wayne County not to certify 2020 vote totals, according to a recording of a post-election phone call disclosed in a Dec. 22 report by The Detroit News. The former president ’s 2024 campaign has neither confirmed nor denied the recording’s legitimacy.
Attorneys for Free Speech for People, a liberal nonprofit group also involved in efforts to keep Trump’s name off the primary ballot in Minnesota and Oregon, had asked Michigan’s Supreme Court to render its decision by Christmas Day.
The group argued that time was “of the essence” due to “the pressing need to finalize and print the ballots for the presidential primary election.”
Earlier this month, Michigan’s high court refused to immediately hear an appeal, saying the case should remain before the appeals court.
Free Speech for People had sued to force Michigan Secretary of State Jocelyn Benson to bar Trump from Michigan’s ballot. But a Michigan Court of Claims judge rejected that group’s arguments, saying in November that it was the proper role of Congress to decide the question.
Looking ahead to the next 14th Amendment decision, Trump’s lawyers on Wednesday asked Maine’s Democratic Secretary of State to disqualify herself from deciding whether the former president can be on that state’s primary ballot. Shenna Bellows held a public hearing earlier this month on requests to bar Trump from the Maine ballot, and her ruling is expected this week.
Trump’s attorneys asked Bellows to step aside, pointing to tweets that she posted after the Jan. 6, 2021, attack on the U.S. Capitol calling it an “insurrection” and bemoaning that Trump wasn’t convicted by the U.S. Senate after being impeached by the House of Representatives.
By Ali Sawafta
TULKARM (Reuters) – Six Palestinians were killed by a drone strike during an Israeli raid n the West Bank city of Tulkarm, the Palestinian health ministry said on Wednesday, one of the latest examples of rising violence since the start of the Israel-Hamas war in Gaza.
The Israeli military said its forces came under attack by militants who threw explosive devices at them during a counter-terrorism operation. The attackers were struck by an Israeli air force aircraft, it said.
The confrontation took place in the Nour Shams refugee camp in Tulkarm, a flashpoint city on one of the main crossing points into the West Bank.
Witnesses said the six young men killed in the strike were sitting together in the early hours of the morning but were not involved in clashes with Israeli forces conducting a raid in other parts of the camp.
“We heard the sound, and the screaming, our house is nearby so we came out to see,” said Izzaldin Assaili, a resident who lives nearby.
The official Palestinian news agency Wafa said the young men were aged between 17 and 29. Another man, aged 24, died of wounds received in a clash last month, the agency said, quoting the health ministry.
No detailed comment on the incident was immediately available from the Israeli military.
The West Bank had already been experiencing the highest levels of unrest in decades during the 18 months preceding the Oct. 7 attack on Israel by Hamas gunmen but confrontations have risen sharply as Israel have launched a ground invasion of Gaza.
Hundreds of Palestinians have been killed in clashes with Israeli soldiers and settlers over the past weeks and security forces have carried out thousands of arrests, with repeated confrontations between troops and Palestinian protesters.
(Reporting by Ali Sawafta; Writing by James Mackenzie; editing by Grant McCool)
Alendra ‘Len’ Harris says she feels validated by the judge’s ruling, which she says also backs up the hundreds of similar allegations from other Starbucks workers around the country who have unionized in an effort to get better pay and working conditions.
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WASHINGTON (AP) — Special counsel Jack Smith asked a judge on Wednesday to bar Donald Trump’s lawyers from injecting politics into the former president’s trial on charges that he schemed to overturn the results of the 2020 election.
Smith’s office told U.S. District Judge Tanya Chutkan in a 20-page filing that Trump’s lawyers should be prevented from “raising irrelevant political issues or arguments in front of the jury,” including that the prosecution against him is vindictive and selective or was coordinated by President Joe Biden.
“In addition to being wrong, these allegations are irrelevant to the jury’s determination of the defendant’s guilt or innocence, would be prejudicial if presented to the jury, and must be excluded,” prosecutors wrote.
The motion to preclude Trump from introducing broad categories of arguments is a way for prosecutors to try to set parameters on what information they believe the jury should, or should not, hear when the case reaches trial. It was filed as the case is effectively on hold during an appeal of the former president’s claims that he is immune from prosecution for acts taken while in the White House.
The Supreme Court declined last week to get involved in the dispute for now, but a federal appeals panel is set to hear arguments on the matter on Jan. 9. The trial is scheduled for March 4 in federal court in Washington, but it could be postponed by appeals of the immunity issue.
Trump responded later Wednesday by accusing Smith’s team of “ignoring the law and clear instructions” from the judge by filing at a motion at a time when the case was on pause. He called the motion “pathetic” and an “illegal” effort to deprive him of his free speech rights at trial by taking away his right to argue that the case is a “political persecution.”
Trump’s lawyers had earlier asked Chutkan to dismiss the case on the grounds that the indictment was vindictive and selective. In their motion Wednesday, prosecutors said that request should not only be denied but Trump’s lawyers should be prohibited from making that argument to a jury during the trial.
“Although the defendant is entitled to cross-examine the Government’s law enforcement witnesses about matters fairly within the scope of their direct testimony, he cannot raise wholly irrelevant topics in an effort to confuse and distract the jury,” prosecutors said. “Much as the defendant would like it otherwise, this trial should be about the facts and the law, not politics.”
The motion also seeks to prevent Trump from telling jurors about the potential punishment he could face if convicted, as well as blaming law enforcement agencies for a lack of preparation in advance of the Jan. 6, 2021, riot at the U.S. Capitol, when Trump loyalists motivated by the then-president’s false claims of voter fraud stormed the building in an effort to disrupt the certification of electoral votes.
“A bank robber cannot defend himself by blaming the bank’s security guard for failing to stop him,” prosecutors wrote. “A fraud defendant cannot claim to the jury that his victims should have known better than to fall for his scheme. And the defendant cannot argue that law enforcement should have prevented the violence he caused and obstruction he intended.”
Though Trump’s state of mind as he sought to overturn the results of the election he lost to Biden will be a pivotal question for jurors, prosecutors said defense lawyers should not be permitted to elicit speculative testimony from witnesses about his thoughts or beliefs.
And they also said he should not be permitted to introduce any evidence about alleged foreign influence in the 2020 race, saying it would be an “irrelevant and confusing sideshow.”
By Gabriel Araujo
SAO PAULO (Reuters) – Brazilian airlines Azul and Gol have secured access to around $200 million each in financing to fund engine maintenance plans, as carriers try to maintain capacity to meet strong demand for air travel.
Planemakers and airlines around the world are facing major engine supply hurdles, limiting aircraft deliveries and capacity growth while pressuring maintenance teams and increasing costs.
Azul said late on Tuesday it had received approval to access a $200 million government-backed credit facility to finance engine maintenance for its Embraer and Airbus fleet, with services provided by GE Celma.
Rival Gol earlier said it been given a green light to access a government credit insurance policy for lines of up to $209 million to fund engine maintenance by GE.
Shares of both companies rose around 1% on Wednesday, among the top gainers on Brazil’s Bovespa stock index, which was little changed overall.
“We believe that this new credit facility will enable us to optimize our liquidity position and streamline our fleet engine maintenance process,” Azul Chief Financial Officer Alex Malfitani said in a statement.
Gol, which flies Boeing 737 aircraft, said maintenance efforts would be focused on its CFM56-7B engines.
Both Azul and Gol complained about engine supply issues earlier this month.
Azul CEO John Rodgerson called it a “major issue for every manufacturer,” while Gol head Celso Ferrer said the firm’s maintenance backlog had been under pressure amid delayed Boeing deliveries.
President Luiz Inacio Lula da Silva’s administration this month cut a deal with airlines under which Azul and Gol agreed to cap the prices of millions of domestic tickets in exchange for government measures including a federal guarantee for credit operations.
“The deal with the government is bearing fruit,” Genial Investimentos analysts said, adding the credit lines would optimize the firms’ liquidity and operational efficiency while supporting the local economy.
(Reporting by Gabriel Araujo; Editing by Kirsten Donovan)
By Alexander Tanas
CHISINAU (Reuters) – Russian President Vladimir Putin must be stopped in his war against Ukraine or all of Europe will pay a much higher price, Moldova’s pro-European president, Maia Sandu, said in an interview published on Wednesday.
Sandu has long denounced Russia’s invasion of Ukraine and singles out the Kremlin as the biggest threat facing her country, which lies between Ukraine and EU member Romania. Russia accuses her of torpedoing good relations and fomenting Russophobia.
“You must understand that Putin will not stop unless he is stopped,” Sandu told the Romania-based media group Veridica.
“And unless he is stopped, the costs will be far higher for all of us. It is Ukraine that is making the greatest sacrifice.”
It was in everyone’s interest, “not just Ukraine and Moldova,” that Ukraine continues to receive assistance, though she made no direct reference to procedural delays in funding from both the United States and European Union.
“I also count on and believe in the solidarity of world democracies, and I hope Ukraine will continue to receive every manner of support it needs,” she told Veridica.
Moldova, she said, was helping all it can, training
engineers and supporting the 80,000 Ukrainian nationals who had sought refuge in her country – the highest proportion to local population in Europe. Half of those refugees are children.
The European Union this month agreed to open membership talks with both Moldova and Ukraine – a long process requiring candidates to upgrade legislation and meet EU standards.
Since defeating her pro-Russian predecessor in 2020, Sandu has led a drive for Moldova, one of Europe’s poorest countries, to join the European mainstream.
She said this week she would seek re-election next year and asked parliament, controlled by her allies from the Party of Action and Solidarity, to organise a referendum to endorse her policies.
(Reporting by Alexander Tanas in Chisinau, Writing by Ron Popeski; Editing by Matthew Lewis)
How to watch today's Texas Bowl game: Texas A&M Aggies vs. Oklahoma State Cowboys livestream options
Everything’s bigger in Texas, including the Texas Bowl. Find out how to watch the Texas A&M vs. Oklahoma game.
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By Daewoung Kim and Jimin Jung
SEOUL (Reuters) – More than 1,000 South Korean military, police and emergency personnel joined rare defence drills on Wednesday that simulated an attack by North Korea on Seoul, to counter fears the city is in striking distance of Pyongyang’s weapons and covert attack.
The exercise comes amid heightened tension after the North tested an intercontinental ballistic missile and launched its first military spy satellite, with the neighbours reinstating last month some military measures eased after a 2018 pact.
“There was a big lesson for us when Israel’s world-class advanced defence system helplessly buckled under a surprise attack by Hamas armed with conventional artillery and primitive means,” said Oh Se-hoon, the capital’s mayor.
He said the militant group’s cross-border rampage on Oct. 7 through towns in Israel, which killed more than 1,200 people at the time, showed that superior military capabilities did not mean much if the enemy mounted a successful surprise attack.
Wednesday’s drills simulated attacks on a major water supply facility, telephone network stations, and an underground communications and power cable corridor.
Seoul’s distance of just 38 km (24 miles) from the military border with the North makes it particularly susceptible to an attack at any time, Oh added.
The densely populated centre of government, business and finance is home to 9.4 million people, with an additional 1.4 million who work and go to school there each day.
Oh has adopted a hardline position against North Korea, arguing that the South must possess its own nuclear weapons as the only way to neutralise the threat from Pyongyang.
However, South Korean President Yoon Suk Yeol has ruled out owning nuclear weapons, making it a priority instead to bolster a military alliance with the United States and restore security ties with Japan.
The drills came on a day that South Korea imposed new sanctions on eight North Koreans linked to nuclear and missile programmes.
The neighbours have clashed at sea and one of the South’s islands was bombed by the North, killing scores on both sides, but there has been no direct attack on Seoul since the end of the Korean War in 1953.
This month’s test of the North’s latest ballistic missile followed November’s successful launch of its first military spy satellite, while a constitutional revision in September enshrined use of nuclear weapons as a national defence policy.
(Reporting by Daewoung Kim, Jimin Jung and Jack Kim; Editing by Clarence Fernandez)
