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US inflation rose 3.1% in November, stubbornly above the Federal Reserve’s long-term target and bolstering the case for central bankers to keep interest rates at current levels this spring.

The Consumer Price Index — which tracks changes in the costs of everyday goods and services — was down slightly from October’s 3.2% reading, in line with economists’ forecasts, and was its lowest monthly reading since June.

Nevertheless, it remained well above the 2% pace eyed by the Fed — a figure the US economy hasn’t seen since 2012 — as central bankers have ratcheted interest rates to a 22-year high, between 5.25% and 5.5%, in hopes of an economic slowdown.

The Bureau of Labor Statistics attributed the second consecutive month-over-month slowdown to the gasoline index, which saw a 6% decline from last month.

Core CPI a number that excludes volatile food and energy prices and serves as a closely watched gauge among policymakers for long-term trends increased 0.2% in November after rising 0.3% in October.

Per AAA figures, gas averages at about $3.14 in the US on Tuesday, down from the $3.35-per-gallon average when last month’s CPI report was released.

The shelter index, which tracks housing costs, rose 0.4%, “offsetting a decline in the gasoline index,” the Bureau of Labor Statistics said.

Fed Chair Jerome Powell has kept economists guessing about whether another rate hike is impending, though central bankers themselves have even seemed to be wrestling with conflicting economic signals.

In a hawkish speech earlier this month, he insisted that central bankers will continue their tightening regime until the job is done and inflation is once again 2%.

We are prepared to tighten policy further if it becomes appropriate to do so, he said during a fireside chat at Spelman College in Atlanta.

The full effects of our tightening have likely not yet been felt,” Powell insisted.

However, just days earlier he seemed to take a more cautious approach to raising interest rates moving forward, noting that central bankers were “proceeding carefully,” according to minutes of the Oct. 31 to Nov. 1 session, when the Fed ended up holding the benchmark overnight interest rate steady in the current 5.25% to 5.5% range.

Meanwhile, the CME FedWatch Tool now projects a more than 98% chance that the Fed doesnt raise rates again this year — up from 85% last month.

Economists and prominent Wall Street executives have been worried that without a rate cut soon, the economy could be headed for a so-called “hard landing” — where interest rates are taken so high that it spurs a recession — especially following November’s strong jobs report that signaled the economy’s momentum has continued despite the Fed’s tightening cycle.

US employers added a higher-than-expected 199,000 jobs last month, well above the 180,000 jobs economists expected to be added, according to Refinitiv data.

However, the unemployment rate edged down to 3.7% a sign that the economy could skirt a recession in favor of a soft landing.

Lower hiring stints combined with higher-than-expected unemployment historically signals a recession.

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World

At least 114 dead after Philippines typhoon, as state of emergency declared and more than 100 still missing

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At least 114 dead after Philippines typhoon, as state of emergency declared and more than 100 still missing

The Philippines has declared a state of emergency after a typhoon left at least 114 dead and 127 missing.

Philippine President Ferdinand Marcos Jr issued the “state of national calamity” declaration after a meeting with disaster officials on Thursday.

It comes after Typhoon Kalmaegi made landfall on Tuesday, striking the country’s central provinces. It is the deadliest natural disaster to hit the Philippines this year.

After reaching the country, the storm hit with sustained winds of 87mph and gusts of up to 121mph.

Authorities in Vietnam, meanwhile, are bracing for Kalmaegi’s approach. Forecasters warned that Ho Chi Minh City faces a heightened risk of severe flooding, as high tides would coincide with the expected heavy rainfall from the typhoon.

So far, the deaths recorded were mainly as a result of flooding in flash floods. The country’s civil defence office said that at least 71 people died in Cebu.

Cebu province was hit hard by the typhoon, with at least 71 dead. Pics: Reuters
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Cebu province was hit hard by the typhoon, with at least 71 dead. Pics: Reuters

Cebu, a province of more than 2.4 million people, was still recovering from a 6.9 magnitude earthquake on 30 September, which left at least 79 people dead.

A state of calamity was previously declared there to allow authorities to disburse emergency funds more rapidly.

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Filipinos stranded on roofs amid Typhoon floods

The province’s governor Pamela Baricuatro told the Associated Press on Thursday: “We did everything we can for the typhoon but, you know, there are really some unexpected things like flash floods.”

Almost two million people were affected by the tropical cyclone, with more than 560,000 displaced and almost 450,000 evacuated to emergency shelters.

Cars swept away by floods brought by Typhoon Kalmaegi are left on a street in Cotcot, Liloan, Philippines. Pic: Reuters
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Cars swept away by floods brought by Typhoon Kalmaegi are left on a street in Cotcot, Liloan, Philippines. Pic: Reuters

Abandoned vehicles were also seen across Cotcot, in Liloan. Pic: Reuters
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Abandoned vehicles were also seen across Cotcot, in Liloan. Pic: Reuters

Six people who died as a result of the typhoon were killed when a Philippine air force helicopter crashed in the southern province of Agusan del Sur on Tuesday.

Read more from Sky News:
What’s the difference between a cyclone, typhoon and hurricane?

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The crew was on its way to provide humanitarian aid to provinces affected, the military said, without giving the cause of the crash.

The Philippines is one of the world’s most disaster-prone countries.

It is affected by around 20 typhoons and storms each year, is also often hit by earthquakes, and has more than a dozen active volcanoes.

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US

JD Vance may have had the most telling reaction to a big 24 hours for US politics

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JD Vance may have had the most telling reaction to a big 24 hours for US politics

Don’t be led by what appears to be obvious.

The Mamdani victory is historic for him, a dreamy American journey for an immigrant rising to the top, and, along with the governor victories in New Jersey and Virginia, it undoubtedly represents a gear shift for the Democrats who have been lost in a Trumpian vortex since Joe Biden’s disastrous presidential debate 18 months ago.

All of this is true. And in that sense, it was of course a very good night for the Democratic Party. Winning is clearly better than losing.

But what if Mamdani is actually a poison chalice for the Democrats? They are drinking this socialist’s champagne now because they finally have some momentum.

But he isn’t a champagne socialist. He is a purist socialist; proudly one.

Explainer: Who is Zohran Mamdani?

Pic: AP
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Pic: AP

With his skilful communication skills and his apparent authenticity, he has energised New York City. And no wonder. The alternative was the flawed, compromised Andrew Cuomo. Mamdani offered hope for a deeply liberal city that’s lost in Trump World.

Trump endorsed Cuomo not because he agrees with Mamdani’s own tagline: “I am Trump’s worst nightmare…”

Trump endorsed Cuomo because he knew that it would probably increase Mamdani’s share of the vote – and it did.

Why would Trump do this? Maybe because he thinks Mamdani is the perfect foil for him.

Trump's endorsement of Andrew Cuomo wasn't all it seemed on the surface. Pic: AP
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Trump’s endorsement of Andrew Cuomo wasn’t all it seemed on the surface. Pic: AP

What Trump can get out of apparent defeat

Mamdani’s victory gives Trump and his allies two things.

First, they can sit back and watch the Democrats squabble about whether Mamdani’s leftward Democratic socialism is the future of their party. And be in no doubt, they will.

Second, they can warn centrists and right-leaning folk: ‘Look, the Democrats really are socialists…’. The president continues to frame him as a “communist”.

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And so it begins, the Trump/Mamdani rivalry…

The Democrats may choose the Mamdani lane and stick with it, especially if he is successful in New York. But the Big Apple is not remotely representative of America.

Beyond New York City, Mamdani is, history would suggest, off the spectrum when it comes to electable Democratic Party candidates – America remains a conservative society; political spectrums here naturally tack right.

Team Trump knows all this, so they’ll relish the prospect of the Democratic Party machine (which has form in picking the wrong candidate) being lured by Mamdani-mania.

Cost of living a key issue

Beyond that, there is a vital takeaway for Trump from this mini and not wholly representative referendum on his presidency so far.

Many ordinary Americans are still hurting economically, big time.

The Democrats won in New York, New Jersey and Virginia because their candidates all focused on kitchen table issues.

The president clearly recognises this, to an extent. “Day by day, we’re going to make America affordable again,” he said after the Mamdani victory.

But he was speaking not to the people who are feeling the squeeze. Instead, he chose to mark a year since he was elected with a speech to a wealthy business crowd in Miami. Safe crowd, safe state, safe space.

Trump perhaps realises he's failing on one key promise. Pic: AP
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Trump perhaps realises he’s failing on one key promise. Pic: AP

JD Vance’s telling reaction

Maybe the most telling thing to come out of the past 24 hours in American politics was from the vice president.

In a social media post, JD Vance first warned followers not to overreact to the results.

He then went on to offer his own notable interpretation of the Democratic Party victories.

“We need to focus on the home front.” he wrote. “The president has done a lot that has already paid off in lower interest rates and lower inflation, but we inherited a disaster from Joe Biden and Rome wasn’t built in a day.

“We’re going to keep on working to make a decent life affordable in this country, and that’s the metric by which we’ll ultimately be judged in 2026 and beyond.”

Read more: Mamdani can’t expect easy wins

Vice President JD Vance
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Vice President JD Vance

My interpretation of his interpretation?

Two points: first, that Vance thinks that Trump needs to get back to his base. Ten months of presidential jet-setting and global-conflict-solving may have been necessary, but it won’t spell victory in the midterms next year or beyond.

The second point – Vance is so clearly in it for the long game. The “beyond” he talks about has him at its centre.

I’m not sure Vance would have chosen a Miami arena full of business leaders to mark a year since the election. The business and investment community is happy and wealthy.

I think Vance would have been with the other America, where people are feeling the squeeze still.

Read more from Sky News:
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Trump continues to talk about the economy being “Biden’s economy”. Vance seems to be hinting at the inevitable – that at some point they need to own it and to fix it. They need to make people feel better off.

Vance wants to run and to win in 2028, and that fight begins now.

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UK

Police chiefs warn of crime surge if Labour’s plans pass – as hunt for mistakenly released prisoners continues

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Police chiefs warn of crime surge if Labour's plans pass - as hunt for mistakenly released prisoners continues

Police are preparing for a surge in crime if the government’s plans to overhaul prison sentences go ahead – with hundreds of thousands more offences expected in a year.

Measures proposed under the Sentencing Bill, intended to ease overcrowding in prisons, include limiting the use of short sentences and releasing some criminals earlier.

However, police chiefs are warning such measures could see up to a 6% rise in crime in the immediate aftermath, should the plans become law.

It comes as a manhunt is under way for two prisoners mistakenly released from HMP Wandsworth, including Brahim Kaddour-Cherif, a 24-year-old Algerian man and registered sex offender, and 35-year-old William Smith.

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Manhunt underway: what do we know so far?

‘It has to be properly funded’

Assistant Chief Constable Jason Devonport, who spent 18 months on secondment as a governor at HMP Berwyn, said forces are planning for an increase in all types of offences.

While he said community programmes to support rehabilitation “are being ramped up,” he warned officers “expect, certainly in the short term, there will be an increase of offending in the community”.

“I believe in the Sentencing Bill and I believe in rehabilitation,” he added, “but it has to be properly funded.”

ACC Devonport said the probation service is trying to recruit 1,500 officers a year for the next three years to manage demand, and that the rise in police-recorded crime in one year is expected to be between 4% and 6%.

In the year to June 2025, police in England and Wales recorded 6.6 million offences. A rise of 6% would then equal around 396,000 additional recorded crimes.

Gavin Stephens, chairman of the National Police Chiefs’ Council, added that officers have “all been in policing long enough to know that some of the things that help people stop offending or desist from offending are not going to be resolved by short sentences in particular”.

However, he added: “Our issue is in the short-term period of the implementation, there is a shift of demand on to policing, and we want that shift of demand on to us to be properly recognised and properly modelled… so we can have the right and appropriate resource in there to mitigate the risk to communities.”

Feeble and inept – prison release fiasco is yet another political crisis


John Craig

Jon Craig

Chief political correspondent

@joncraig

The charitable view of the latest prison release blunder that has plunged the government into another political crisis is that it’s extremely bad luck rather than an act of incompetence by ministers.

But the more we learn about the shocking details of what happened and what looks like a cynical attempt at a cover-up by the hapless David Lammy, the more the blame can be laid at the government’s door.

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More mistaken releases inevitable, MP warns

In a further warning about the state of law and order in the UK, the chair of the Justice Committee has said the prison system is at “breaking point”.

Labour MP Andy Slaughter called the latest mistaken releases “extremely concerning,” adding: “While the day to day running of prison security and public safety are paramount, the current spate of releases in error will be repeated until the underlying failures are addressed.”

He also said evidence taken by the committee “laid bare a crisis-hit prison system, starved of investment over many years which is facing multi-faceted pressures”.

What do we know about the manhunt?

HMP Wandsworth admitted on Wednesday that Kaddour-Cherif, sentenced for trespass with an intent to steal, was accidentally released on 29 October.

His release came just five days after the high-profile release of migrant sex offender Hadush Kebatu from HMP Chelmsford in Essex.

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Lammy refuses to say if more prisoners mistakenly released

Hours after Kaddour-Cherif’s accidental release was confirmed by the Met, Surrey Police announced it was also searching for Smith after another error by prison staff.

The 35-year-old, who was sentenced to 45 months for multiple fraud offences and goes by the name Billy, had apparently been released on Monday.

It is not yet clear why it was nearly a week between the first release at Wandsworth and the police being informed that an offender was at large.

Both mistakes follow vows by Deputy Prime Minister and Justice Secretary David Lammy that enhanced checks on prisoner releases would be introduced.

He came under fire while standing in for Sir Keir Starmer at PMQs, but sought to blame the Conservatives, saying: “In 25 years in this House, I have not witnessed a more shameful spectacle frankly than what the party opposite left in our justice system.”

News of Kaddour-Cherif’s release broke as PMQs was ending, and a comment released on Mr Lammy’s behalf said he was “absolutely outraged” about it.

He had been repeatedly asked whether any more asylum seekers had been mistakenly released from jail since the Kebatu case, and refused to answer.

Read more from Sky News:
Nearly 40,000 freed early to tackle prison overcrowding
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Lammy has ‘egg on his face’, former prison governor says

In response to concerns of a spike in crime should the Sentencing Bill become law, a Ministry of Justice spokesperson said the government “inherited a prison system in crisis, days away from running out of space”.

“Public safety will always be our top priority, and we are building 14,000 more prison places to keep dangerous offenders locked up,” they added.

“Offenders released face strict licence conditions, and we are increasing the probation budget by an extra £700 million over the next three years and investing in new technology to reduce admin, so staff can focus on work that reduces reoffending.”

And in response to the manhunt for the two released convicts, a spokesperson said: “Releases in error have been increasing for several years and are another symptom of a justice system crisis inherited by this government.”

They added: “We are clear that these mistakes must not continue to happen.”

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