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Stocks are slumping Tuesday as more caution creeps into financial markets worldwide.

The S&P 500 was 1% lower in early trading, following up on losses for stocks across Europe and much of Asia.

The Dow Jones Industrial Average was down 370 points, or 1%, at 35,102, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.

In the U.S., bank stocks dropped after Moodys cut the credit ratings for several smaller and midsized ones amid a long list of concerns about their financial strength.

Across the Pacific, stocks sank 1.8% in Hong Kong and 0.3% in Shanghai after a report showed exports for Chinas troubled economy shrank by the most since the start of the pandemic in 2020.

The worries layered on top of a mixed set of earnings reports from big U.S. companies.

UPS fell 3% after it cut its forecast for revenue this year. It reported stronger profit for the spring but weaker revenue.

Eli Lilly helped to limit the markets losses after jumping 16.4%.

The medicine developer reported profit and revenue for the spring that both topped analysts expectations.

More jolts may be ahead for markets.

The U.S. government later in the morning will report how many job opening were available across the country in June, a test of how resilient the job market remains.

Economists expect a separate report to show U.S. manufacturing continues to struggle under the weight of much higher interest rates.

The Federal Reserve has hiked its main interest rate to the highest level in more than two decades in hopes of grinding down inflation.

High rates work by slowing the entire economy bluntly, which has raised the risk of a recession but also helped inflation to moderate since its peak last summer.

Besides manufacturing, high rates have hit banks particularly hard. Moodys said the rapid rise in rates has led to conditions that hurt profits for the broad industry, while knocking down the value of investments made when rates were super low.

Such conditions helped cause three high-profile failures for three U.S. banks earlier in the spring, which shook confidence in the system.

Moodys also said troubles may be coming for banks with lots of commercial real estate loans, which are hurting as the threat of a U.S. recession remains and work-from-home trends keep people out of offices.

M&T Bank, one of the banks whose credit rating Moodys downgraded, fell 4.7%.

Truist Financial, one of the banks that Moodys said its reviewing for a possible downgrade, fell 4.5%.

Other, larger banks whose credit ratings weren’t affected also sank.

JPMorgan Chase fell 2% and was one of the heavier weights on the S&P 500.

Later this week, the U.S. government will releases data on consumer and wholesale inflation, which could influence what the Federal Reserve does next with interest rates.

The hope on Wall Street is that the cooldown in inflation since its peak above 9% last summer will help persuade the Fed that upward pressure on prices is under control and no more rate hikes are needed.

Forecasters expect Thursdays data to show consumer prices rose by 3.3% in July over a year ago, an acceleration from Junes 3%.

But some economists and investors say getting that list bit of inflation moderation to the Fed’s target of 2% is likely to be the most difficult.

They’re saying Wall Street has become convinced too quickly that the Fed can achieve a soft landing for the economy and that the 19.5% run for the S&:P 500 through the first seven months of this year was overdone.

In the bond market, Treasury yields tumbled as investors moved into investments considered safer.

The yield on the 10-year Treasury fell to 3.98% from 4.10% late Monday. It helps set rates for mortgages and other loans.

The two-year Treasury yield, which more closely tracks expectations for the Fed, fell to 4.73% from 4.79%.

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Snow White: Little people feel ‘erased’ by Disney’s use of CGI instead of real actors

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Snow White: Little people feel 'erased' by Disney's use of CGI instead of real actors

Disney’s use of CGI to create the seven miners at the heart of the live-action remake of Snow White And The Seven Dwarves has left little people feeling “disregarded” and “erased,” according to a disability activist.

Comedian, model and content creator Fats Timbo, who has spoken about being bullied as a child, told Sky News she believes Disney has missed a golden opportunity to educate children in what is likely to be their first encounter with someone with dwarfism.

Fats Timbo is a comedian, model, author and content creator
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Fats Timbo is a comedian, model, author and content creator

Timbo, who has dedicated her activism to raising the profile of people of short stature, has achondroplasia, a genetic condition that inhibits growth and affects around one in 27,500 people.

Award-winning actor Peter Dinklage, who has the same condition, previously criticised the film, telling the WTF With Marc Maron podcast: “It makes no sense to me. You’re progressive in one way, but then you’re still making that f***ing backward story about seven dwarves living in a cave together?”

Following the remarks, Disney said it consulted with members of the dwarfism community to “avoid reinforcing stereotypes from the original animated film”.

It was the 1937 classic that established Disney’s name as an industry leader. But the remake has been beset by controversy.

Early on it was labelled “woke” due to its casting of Latina actress Rachel Zegler, who is of Colombian-Polish descent, in the lead role.

Zegler also faced backlash after suggesting the early version of the film had content that was unsuitable for the 21st century – namely the fact the prince “literally stalks” Snow White.

There was then speculation as to whether Zegler and Israeli actress Gal Gadot, who plays the evil queen, got on as they have previously expressed very different views over the Gaza war.

Pic: Disney
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Pic: Disney

Pic: Disney
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Gal Gadot as the evil queen. Pic: Disney

Not dwarves but ‘animated magical creatures’

Now the erasing of the dwarves – first from the title, then from the film, at least in human form – is proving highly divisive.

Disney used computer-generated images (CGI) to create what they called “animated magical creatures” rather than using little people in the roles.

Timbo tells Sky News: “Our representation is already small as it is – no pun intended. It’s already limited. To erase that and use CGI, like we’re mythical creatures or people that could be made on computers, it’s disregarding us in general.”

She goes on: “Let’s say kids have never seen somebody that has my condition and they’ve seen a CGI version of me. It’s going to be a bit baffling to children. It could have been a real educational piece to have actors that have the condition and give them the role they deserve.”

Timbo says lack of visibility for small people has real-world consequences.

“I used to get made fun of all the time. [Kids would be] saying ‘You’re one of the dwarves from Snow White,’ that kind of thing. I think now when somebody sees a little person, they’re not going to believe it’s real. They’re going to see that CGI version on Snow White instead of seeing a real little person that has real character with real depth.”

(L-r) TIMOTHÉE CHALAMET as Willy Wonka and HUGH GRANT as an Oompa Loompa in Warner Bros. Pictures and Village Roadshow Pictures’ “WONKA,” a Warner Bros. Pictures release
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Timothee Chalamet and Hugh Grant in Wonka. Pic: Warner Bros Pictures

‘Snow White And The Little People’

Timbo says other children’s films were also used to taunt her, including Charlie And The Chocolate Factory: “The Oompa Loompas – I got called that all the time.”

In the Snow White remake, Martin Klebba voices CGI Grumpy, while George Appleby has a physical character, playing one of a band of seven robbers – both actors are little people.

But the decision not to use people of small stature to play all seven dwarves on-screen has left many scratching their heads.

And it’s not the first time small people have been edited out of movies.

Charlie And The Chocolate Factory’s 2023 re-make, Wonka, used special effects to shrink down Hugh Grant to play an Oompa Loompa, while 2012 film Snow White And The Huntsman replaced its dwarves with able-bodied actors Ian McShane, Ray Winstone and Nick Frost.

Not a fan of the term dwarfism, Timbo says she thinks Disney would also have done well to tackle the title differently, too: “If they had put a different spin on it where it was Snow White And The Little People, that would have sounded great.”

She says that in an attempt to avoid controversy, Disney chose “the safe option” of simply cutting the physical roles completely, and letting CGI fill the void.

It’s a decision Timbo calls “upsetting,” due to the fact it “reaffirms the negative stereotypes of little people not being actual people”.

Pic: Disney
Image:
Pic: Disney

Disney’s poisoned apple

Timbo’s 2023 book Main Character Energy, about living fearlessly in the face of adversity, seems like it could be a good read for the bosses of Disney right now, as they face growing criticism over the decision.

With a muted release (no Leicester Square premiere, and a limited LA debut) it’s been a less-than-fairytale opening for a movie which had been intended to rival the success of 2017 remake Beauty And The Beast. Many might say it has turned into something of a poisoned apple.

Proving controversial and polarising, the response couldn’t be more removed from Disney’s brand proposition if it tried. Early reviews are so far mixed.

Timbo says she will give the movie a shot: “I want to see if it lives up to the hype or the bad press.”

Box office figures and audience ratings will soon deliver a verdict, and Timbo remains generous despite reservations: “I want it to surprise me, I want to enjoy it… I hope it does do well. But obviously, I think Disney could have done things a bit differently.”

Sky News has contacted Disney for comment.

Snow White is in cinemas now.

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Celebrities urge government to reverse ‘shameful’ welfare cuts

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Celebrities urge government to reverse 'shameful' welfare cuts

A swathe of celebrities including Sir Stephen Fry and Succession star Brian Cox have urged the government to reverse its “shameful” cuts to welfare.

Sir Stephen said the cuts should not be targeted at “the most vulnerable and overlooked of all our population”, while Mr Cox recalled his own experience of child poverty and argued the plans would “have a lasting impact on the lives of so many people already finding it difficult to afford life’s essentials”.

They were joined in their criticism by actor Stanley Tucci, who branded the plans “wrong” and said they would force parents in disabled families to “skip meals so that they can feed their children”.

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The celebrities’ intervention comes after Sir Keir Starmer defended his government’s shakeup to the welfare system, designed to shave £5bn from the disability benefits bill for working-age people, which is set to balloon to £75bn by the end of the decade.

The prime minister has branded the current system “morally and economically indefensible” and said the government cannot simply “shrug its shoulders” and pretend the welfare system is “progressive”.

He told Sky News political correspondent Serena Barker-Singh that he understands why some of his backbenchers are uncomfortable, referencing his late mother, who was “very ill all her life” and brother who recently died of cancer.

But he said it was “morally indefensible that a million young people are going essentially from education on to benefits”.

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PM defends ‘vital’ welfare reforms

“All the evidence shows if young people are in that position and so early in their lives, they’re going to find it really difficult ever to get out of that,” he added.

“There aren’t many people who genuinely argue the status quo is working,” Sir Keir added.

However, the changes to the system – which will make it harder to qualify for the main disability benefit, the personal independence payment (Pip), have drawn strong criticism from charities and thinktanks.

The Resolution Foundation thinktank said the tightening of Pip eligibility would mean between 800,000 and 1.2 million people losing support of between £4,200 and £6,300 per year by the end of the decade.

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Govt ‘rushed’ welfare reforms

The Trussell Trust, which runs food banks across the country, said around three-quarters of the people referred to one of its services live in a household where someone is disabled.

It warned the measures will have a “significant impact on people who are already facing hunger and hardship”.

And Comedian Rosie Jones, who has cerebral palsy, said the cuts will “only deepen the hardship” disabled people are already facing.

“Disabled people are scared of what the future holds if there’s cuts to disability payments, as they are already not enough to cover life’s essentials,” she said.

Read more:
What is PIP?
Key welfare changes explained

A Department for Work and Pensions spokesperson said: “Our reforms will build a social security system that’s fairer, more sustainable and fit for the future – so it can always be there for those with the greatest needs to live with the dignity and support they deserve.

“Helping people into good work is at the heart of our approach to tackling poverty and inequality, but the broken social security system we inherited is failing people who can and have the potential to work, as well as the people it’s meant to be there for.

“That’s why we’re introducing a new premium and ending reassessments for those who will never be able to work to improve the safety net for them, while delivering a £1bn employment support package to break down barriers for disabled people into work.

“We’re also rebalancing Universal Credit payment levels so the benefit’s main rate rises above inflation for the first time in a boost for working families.”

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McDavid exits Oilers’ loss with lower-body injury

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McDavid exits Oilers' loss with lower-body injury

EDMONTON, Alberta — Oilers captain Connor McDavid suffered a lower-body injury and did not return in the third period of a 4-3 overtime loss to the Western Conference-leading Winnipeg Jets on Thursday night.

Goalie Stuart Skinner also was hurt when he was involved in a late-game collision and removed due to concussion protocols. Calvin Pickard stopped three shots in Skinner’s place.

Speaking after the game, coach Kris Knoblauch said there was no update on the statuses of either McDavid or Skinner.

McDavid appeared to get hurt while attempting to chase down the puck in the Jets’ zone when he was bumped by Winnipeg defenseman Josh Morrissey.

In the second period, McDavid assisted on Jeff Skinner‘s goal to extend his point streak to 13 games. McDavid has combined for four goals and 15 assists in the span.

McDavid’s injury came at the same time the Oilers held out NHL leading scorer Leon Draisaitl for precautionary reasons after the forward was hurt in a 7-1 win over Utah on Tuesday. Knoblauch said Draisaitl is day-to-day.

Information from The Associated Press was used in this report.

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