Connect with us

Published

on

The US economy is in for a sharp slowdown in 2024 as a closely watched survey of top economists foresees stubbornly high inflation, a rise in unemployment and a 50% chance of recession.

A slew of headwinds will slow the current quarter’s Gross Domestic Product — a comprehensive measure of economic activity and performance — to a pace of 1.2%, according to the National Association for Business Economics’ latest Outlook Survey released on Monday.

That’s versus a 5.2% annualized rate during the third quarter, the Commerce Department reported — the fastest rate of expansion since the end of 2021. Adjusted for inflation, real GDP increased 2.1%.

Panelists foresee the GDP slowing even further, to 1%, between the fourth quarter of 2023 and the fourth quarter of 2024, NABE President and Morgan Stanley chief economist Ellen Zentner said in the survey, which was earlier reported on by Fox Business.

On the heels of the dismal data, of the 30-plus economists surveyed, one in four said they’re now forecasting a recession, assigning a probability of at least 50%, NABE reported.

The last time the US experienced a financial crisis was in 2008. At the time, of the economic downturn, the federal funds rate was 5.25% while inflation rose 4.1% on an annual basis, per the Consumer Price Index.

Now, inflation isn’t slowing as quickly as the Fed has hoped, and remains well above central bankers’ goal at 3.2%. That’s a trend that will likely remain entrenched during the coming year, according to the survey.

“Panelists anticipate further slowing in core inflation — excluding food and energy costs — but doubt it will reach the Federal Reserve Boards 2% target before year-end 2024,” said NABE Outlook Survey Chair Mervin Jebaraj, director of the Center for Business and Economic Research at the University of Arkansas.

Meanwhile, the Bureau of Labor Statistics last month released a weaker-than-expected October jobs report, when the economy only added 150,000 positions — as the unemployment rate came in above the Fed’s 3.8% year-end forecast, at 3.9%.

When November job data comes out on Friday, employers are expected to have added 180,000 positions, while unemployment is expected to hold at 3.9%.

The Federal Reserve Bank of Atlantas GDPNow forecasting model attributed the impending economic slowdown to a decline in construction spending and manufacturing as labor costs have surged and productivity has waned.

In New York, construction has been hindered by the precipitous 421a property tax exemption, which was given to real estate developers building new multifamily residential housing buildings in New York City before it expired in June 2022.

A lack of 421a, coupled with high borrowing rates, have pumped the brakes on new development.

An economic slowdown is also likely on the horizon as Taylor Swift’s blockbuster concert, “Eras Tour,” leaves the US.

Since Swift’s three-hour show kicked off in March in Arizona, loyal Swifties have shelled out so much for tickets and hotel rooms that the show has spurred growth in the economy of each of the cities its stopped at.

In Pittsburgh, an estimated 24,000 hotel rooms were booked at premium prices by fans making the Eras Tour pilgrimage back in June for the three-hour set, while tourists drummed up more traffic than usual for local businesses, from parking garages to restaurants.

While Swift’s concert continues its 100-plus-city trot around the globe, Beyonce’s “Renaissance” concert has also drawn a slew of fanfare as its embarked on a 56-stop world tour.

The economy will surely miss the so-called “Taylor Swift effect” after the 33-year-old songstress returns stateside to take her final Eras Tour bow in Indianapolis, Ind., in November 2024.

Beyonce, meanwhile, concluded her Renaissance tour on Oct. 1 in Kansas City, Mo.

Continue Reading

Sports

Canes’ Andersen, 35, secures deal before Round 2

Published

on

By

Canes' Andersen, 35, secures deal before Round 2

RALEIGH, N.C. — The Carolina Hurricanes have signed goaltender Frederik Andersen to a one-year contract for next season, worth $2.75 million for the 35-year-old veteran.

General manager Eric Tulsky announced the deal Saturday, a little over 48 hours before his team starts the second round of the playoffs against the Washington Capitals.

Andersen could earn up to $750,000 in incentives for games played and his participation in a potential run to the Eastern Conference finals next season. He would get $250,000 for playing 35 or more games, another $250,000 for getting to 40 and $250,000 if the Hurricanes reach the East finals and he plays in at least half of the playoff games.

“Frederik has played extremely well for us and ranks in the top 10 all-time for winning percentage by an NHL goalie,” Tulsky said. “We’re excited that he will be staying with the team for next season.”

Andersen and the Hurricanes, the No. 2 seed in the Metropolitan Division, advanced past the New Jersey Devils in Round 1 last week. They will meet the Capitals, who won the division crown, for the right to make the NHL’s final four.

Extending Andersen could give the team a goaltending tandem with Pyotr Kochetkov for less than $6 million combined.

Anderson, a Denmark native who previously played for the Anaheim Ducks and Toronto Maple Leafs, has become coach Rod Brind’Amour’s most trusted option in net. He is expected to return to the starting role for Game 1 of the Capitals series after getting injured in the first round against New Jersey.

The Associated Press contributed to this report.

Continue Reading

UK

Child sexual abuse victims ‘denied justice’ after compensation scheme scrapped over cost

Published

on

By

Child sexual abuse victims 'denied justice' after compensation scheme scrapped over cost

Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.

Warning – this story contains references to sexual and physical abuse

A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.

Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.

Greenfield House Convent, where Marie says she was abused
Image:
Greenfield House Convent, where Marie says she was abused

As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.

She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.

Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.

More on Children

Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.

Marie is still fighting for compensation for the abuse she suffered
Image:
Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child

In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.

Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.

Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.

Peter Garsden, President of The Association of Child Abuse Lawyers
Image:
Peter Garsden, President of The Association of Child Abuse Lawyers

Civil cases ‘can take three to five years’

But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.

Mr Garsden said it takes “between three and five years” for a civil case to get to trial.

He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.

Victim awarded £10 compensation

Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.

Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.

Read more from Sky News:
Call for Labour minister to resign over grooming gang remarks
PM says govt will fund further local grooming gangs inquiries if ‘needed’

Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.

Hundreds of millions paid to victims

The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.

In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.

But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.

“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.

For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.

“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.

Continue Reading

Politics

OKX fires back at Tron’s Justin Sun over mysterious ‘freeze notice’

Published

on

By

<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

OKX founder and CEO Star Xu has publicly defended the crypto exchange after Tron founder Justin Sun accused it of failing to act on a law enforcement request to freeze stolen funds following a recent hack of Tron’s official X account.

“OKX also has consumers protection policy according to law, we can’t freeze a customer’s funds according to your personal X post or an oral communication. I think you should understand it as the CEO of HTX,” Xu said in an X post.

OKX says there is no communication in the spam box, either

Xu said that the crypto exchange had not received any related correspondence through OKX’s official channels. “Our LE cooperation team just checked the email, including the spam box; we haven’t received any request related with this case,” Xu said.

Cryptocurrencies, Tron, OKX
Source: Star Xu

In what is now an unavailable X post, but was screenshotted by Xu, Sun had earlier claimed that OKX has not responded to a “freeze notice” sent to its official email address from a “relevant law enforcement agency.” Sun said that he had no other way to contact OKX’s compliance department.

“These stolen funds do not belong to me; I’m acting to protect the community,” Sun said. On May 3, Tron DAO told its 1.7 million X followers that its account had been compromised. Tron explained that during the breach, an unauthorized party posted a malicious contract address, sent direct messages, and followed unfamiliar accounts.

“If you received a DM from our account on May 2, please delete it and consider it the work of the attacker.”

In response to Sun’s claims of inaction, Xu publicly called on him to provide a screenshot showing when and where the law enforcement request was made.

The Tron incident is one of several recent security breaches involving high-profile crypto accounts on X.

Related: Over 14,500 Tron addresses at risk of silent hijacking

Kaito AI, an artificial intelligence-powered platform that aggregates crypto data to provide market analysis for users, and its founder, Yu Hu, were the victims of an X social media hack on March 15. The hackers opened up a short position on KAITO tokens before posting that the Kaito wallets were compromised and advised users that their funds were not safe.

The Pump.fun X account was compromised on Feb. 26 to promote a fake governance token called “PUMP” and other fraudulent coins.

Meanwhile, the X account of UK member of Parliament and Leader of the House of Commons, Lucy Powell, was hacked to promote a scam crypto token.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Continue Reading

Trending