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The Dow Jones Industrial Average plunged more than 500 points on Tuesday after hot inflation data for January dimmed hopes that the Federal Reserve would begin cutting interest rates next month.

The Dow, which tumbled as 750 points, slid 1.4% — its worst day since since March 2023. The S&P 500 slipped 1.4%, while the tech-heavy Nasdaq Composite fell 1.8%.

Both the Dow and the S&P 500 had hit record highs this year before plunging following the release of the Consumer Price Index, which rose a stiffer-than-expected 3.1% on an annual basis.

The figure — which tracks changes in the costs of everyday goods and services — remains far off from the Fed’s 2% target.

Core CPI a number that excludes volatile food and energy prices increased 0.4% in January, to 3.9%.

The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists anticipated.

“Inflation staying sticky is everyone’s biggest fear and this report is showing its not going down,” Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance, said. “The knee- jerk reaction is for stocks and bonds to sell off. That makes sense. Then we’ll wait for the next report and if that’s lower this will turn out to be just a blip.”

The increase could delay the prospect of three interest rate cuts the Fed anticipates to make in 2024.

Wall Street had initially expected that the first time rates were brought down from their current 22-year high would be in March.

Fed Chair Jerome Powell said after the latest policy meeting that “it’s not likely that this committee will reach that level of confidence in time for the March meeting.”

The CME FedWatch Tool shows that a May rate is also largely off the table.

The probability of a May rate cut slumped from 52.2% to 36.6% on Monday while the chance of a slash in June now stands at 78.6%, down from 92.2%.

Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committees policy decisions this year, told CNN that he’s anticipating the first of three cuts to take place in the fourth quarter — weeks after the mid-year slowdown Wall Street is now expecting.

By the end of the year, inflation will be near “the lower twos,” he said.

This isnt a TikTok video or something like that where you get trends happening so fast. It takes a while for the decisions of individual decisions and millions of people to come together and to start to create trends, he told CNN.

At the same time, theres a significant risk if the Fed leaves interest rates where they currently are for too long, Bostic warned.

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He also noted how difficult it’s been to tamp down inflation as the job market has remained surprisingly strong.

Januarys monthly jobs report added a blockbuster 353,000 new jobs to the economy — nearly double analysts’ expectations. 

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

Alfredo Ortiz, president and CEO of Job Creators Network, told The Post in a statement that “inflation remains historically high and is nothing to cheer about.”

“Talk to any American going to the grocery store, hardware store or pharmacy, and they’ll tell you prices continue to rise at a painful rate.”

A December 2023 report on shrinkflation — when businesses cut product sizes but keep prices the same — found that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

Researchers also found that the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

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Sports

Stanley Cup playoffs daily: Knights on the brink, critical Game 5 in Panthers-Leafs

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Stanley Cup playoffs daily: Knights on the brink, critical Game 5 in Panthers-Leafs

Following just one game on the schedule on Tuesday night, Wednesday night is back to the standard of two games — one of which could be the swan song for a recent Stanley Cup champion.

The first matchup pits the Florida Panthers against the Toronto Maple Leafs (7 p.m. ET, ESPN); those teams are tied 2-2. In the nightcap, the Vegas Golden Knights host the Edmonton Oilers (9:30 p.m. ET, ESPN), with the home team hoping to avoid a 4-1 series loss just two seasons after winning it all.

Read on for game previews with statistical insights from ESPN Research, a recap of what went down in Tuesday’s game and the Three Stars of Tuesday from Arda Öcal.

Matchup notes

Florida Panthers at Toronto Maple Leafs
Game 5 | 7 p.m. ET | ESPN

With the series tied 2-2, ESPN BET has the Panthers as the favorites to win the series at -210 compared to +170 for the Leafs. Florida is now +400 to win the Cup, while Toronto is +900.

When a best-of-seven series is tied 2-2, the winner of Game 5 has gone on to win the series 79% of the time in Stanley Cup playoffs history.

Each goal that Carter Verhaeghe scores extends his lead atop the franchise leaderboard for career playoff goals; he’s currently at 30, ahead of Sam Reinhart (24), Aleksander Barkov (22) and Matthew Tkachuk (20).

Acquired at the trade deadline from Boston, Brad Marchand has a personal 4-0 record against Toronto in playoff series, and is tied for the third-most points against the Leafs in Stanley Cup playoff history; his 33 are tied with Henri Richard, trailing Alex Delvecchio (35) and Gordie Howe (53).

William Nylander leads Toronto in goals this postseason, with six, and he continues to climb the Leafs’ career playoff goal-scoring leaderboard. With 26, he is tied with Steve Thomas and George Armstrong for fifth on the list; Ted Kennedy is fourth, with 29.

Fellow member of the Core Four Mitch Marner is on the precipice of a career milestone too; with his next assist, he’ll join Doug Gilmour as the only Maple Leafs with 50 or more career playoff assists.

Edmonton Oilers at Vegas Golden Knights
Game 5 | 9:30 p.m. ET | ESPN

The Oilers take a 3-1 lead into Game 5, and ESPN BET has adjusted the series winner odds accordingly; Edmonton is now -1000 to win this series, with the Knights at +550. Edmonton also has the shortest Stanley Cup odds, at +260, while Vegas’ are +3000; only the Capitals have longer odds, at +7500.

When leading a best-of-seven series 3-1, the Oilers have gone on to win 94% of the time in their history; the Knights have never rallied to win a series after trailing 3-1.

Adam Henrique had two goals in the first period of Game 4 after just one goal in the first nine games this postseason. It was his second career multigoal game — the last came in 2012 during the Devils’ run to the Stanley Cup Final.

Connor McDavid assisted on Evander Kane‘s goal in Game 4, extending his assist streak to eight games. That ties Wayne Gretzky (1983) for the third-longest such streak in Oilers postseason history, trailing Leon Draisaitl (2022) and Glenn Anderson (1985), both of whom had a nine-game assist streak in a single postseason.

Vegas’ Mark Stone has 36 career playoff goals, tied with Jonathan Marchessault for the Knights’ franchise playoff record.

Teammate Jack Eichel is getting pucks on net, but he has scored only once this postseason. His 27 shots on goal lead the Knights, but among the 43 players with 20 or more shots on goal this postseason, Eichel’s 3.7% shooting percentage is the lowest.


Öcal’s Three Stars from Tuesday

Granlund scored his first career hat trick to lead the way for Dallas. He now has multiple points in consecutive playoff games within a single postseason for the first time in his career.

The Minnesota native stopped 31 of 32 shots to earn the win. He’s the sixth U.S.-born goalie to win 30 playoff games — Tom Barrasso leads the list, with 60.

The star defenseman had an assist and skated just under 15 minutes in his first game since Jan. 28.


Tuesday’s recap

Dallas Stars 3, Winnipeg Jets 1
DAL leads 3-1 | Game 5 Thursday

For much of the postseason, it has been the Mikko Rantanen show for the Stars. On this night, center stage belonged to another Finn the Stars added in trade during the season. Mikael Granlund scored his first career hat trick — spacing them out nicely with one in each period — which was more than enough to outscore the visiting Jets. Nikolaj Ehlers‘ tally at 1:02 of the second period was the only shot that got past Dallas’ Jake Oettinger, as chants of “Otter’s better!” rained down from the Dallas faithful in the seats to torment Winnipeg’s Connor Hellebuyck. Dallas brings a 3-1 lead to Game 5 in Manitoba, pushing for a third conference finals trip in the past four years. Full recap.

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Jake Oettinger’s save earns rousing ovation from Dallas fans

Stars goalie Jake Oettinger makes a beautiful save early in Game 4 vs. the Jets.

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Business

Foreign states face 15% newspaper ownership limit amid Telegraph row

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Foreign states face 15% newspaper ownership limit amid Telegraph row

Foreign state investors would be allowed to hold stakes of up to 15% in British national newspapers, ministers are set to announce amid a two-year battle to resolve an impasse over The Daily Telegraph’s ownership.

Sky News has learnt that the Department for Culture, Media and Sport could announce as soon as Thursday that the new limit is to be imposed following a consultation lasting several months.

The decision to set the ownership threshold at 15% follows an intensive lobbying campaign by newspaper industry executives concerned that a permanent outright ban could cut off a vital source of funding to an already-embattled industry.

It would mean that RedBird IMI, the Abu Dhabi state-backed fund which owns an option to take full ownership of the Telegraph titles, would be able to play a role in the newspapers’ future.

Money blog: £30 broadband rule explained

RedBird Capital, the US-based fund, has already said it is exploring the possibility of taking full control of the Telegraph, while IMI would have – if the status quo had been maintained – forced to relinquish any involvement in the right-leaning broadsheets.

One industry source said they had been told to expect a statement from Lisa Nandy, the culture secretary, or another DCMS minister, this week, with the amendment potentially being made in the form of a statutory instrument.

More on Daily Telegraph

Other than RedBird, a number of suitors for the Telegraph have expressed interest but struggled to raise the funding for a deal.

The most notable of these has been Dovid Efune, owner of The New York Sun, who has been trying for months to raise the £550m sought by RedBird IMI to recoup its outlay.

Another potential offer from Todd Boehly, the Chelsea Football Club co-owner, and media tycoon David Montgomery, has yet to materialise.

RedBird IMI paid £600m in 2023 to acquire a call option that was intended to convert into ownership of the Telegraph newspapers and The Spectator magazine.

That objective was thwarted by a change in media ownership laws – which banned any form of foreign state ownership – amid an outcry from parliamentarians.

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The Spectator was then sold last year for £100m to Sir Paul Marshall, the hedge fund billionaire, who has installed Lord Gove, the former cabinet minister, as its editor.

The UAE-based IMI, which is controlled by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan, extended a further £600m to the Barclays to pay off a loan owed to Lloyds Banking Group, with the balance secured against other family-controlled assets.

Other bidders for the Telegraph had included Lord Saatchi, the former advertising mogul, who offered £350m, while Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding last summer amid concerns that he would be blocked on competition grounds.

The Telegraph’s ownership had been left in limbo by a decision taken by Lloyds Banking Group, the principal lender to the Barclay family, to force some of the newspapers’ related corporate entities into a form of insolvency proceedings.

The newspaper auction is being run by Raine Group and Robey Warshaw.

The DCMS declined to comment.

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US

Menendez brothers’ murder sentences reduced – making them eligible for parole

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Menendez brothers' murder sentences reduced - making them eligible for parole

A judge has reduced the Menendez brothers’ murder sentences – meaning they are eligible for parole.

Lyle, 57, and Erik, 54, received life sentences without the possibility of parole after being convicted of murdering their parents, Jose and Kitty Menendez, at their Beverly Hills home in 1989.

Last year, the then Los Angeles district attorney George Gascon asked a judge to change the brothers’ sentence from life without the possibility of parole to 50 years to life.

Lyle, left, and Erik Menendez leave a courtroom in Santa Monica in August, 1990.
Pic: AP
Image:
Lyle, left, and Erik Menendez leave a courtroom in Santa Monica in August, 1990.
Pic: AP

On Tuesday, Los Angeles County superior court Judge Michael Jesic did so, paving the way for the brothers’ parole and possible release.

The ruling capped off a day-long hearing in which several relatives, a retired judge and a former fellow inmate testified in support of efforts to shorten the brothers’ sentences.

‘I killed my mum and dad’

The brothers appeared at the proceedings in Los Angeles County Superior Court via video feed from prison in San Diego.

“I killed my mum and dad. I make no excuses and also no justification,” Lyle said in a statement to the court. “The impact of my violent actions on my family… is unfathomable.”

Erik also spoke about taking responsibility for his actions and apologising to his family.

He said: “You did not deserve what I did to you, but you inspire me to do better.”

The brothers did not show any apparent emotion during much of the testimony but chuckled when one of their cousins, Diane Hernandez, told the court that Erik received A+ grades in all of his classes during his most recent semester in college.

Lyle (left) and Erik Menendez in a courtroom in 1990.
Pic: AP
Image:
Lyle (left) and Erik Menendez in a courtroom in 1990.
Pic: AP

Anamaria Baralt, another cousin of the brothers, told the court they had repeatedly expressed remorse for their actions.

“We all, on both sides of the family, believe that 35 years is enough. They are universally forgiven by our family,” she said.

‘They have not come clean’

Los Angeles County prosecutors argued against the resentencing, saying the brothers have not taken complete responsibility for the crime.

The current district attorney Nathan Hochman said he believes the brothers were not ready for resentencing because “they have not come clean” about their crimes.

His office has also said it does not believe they were sexually abused.

“Our position is not ‘no’. It’s not ‘never’. It’s ‘not yet’,” Mr Hochman said. “They have not fully accepted responsibility for all their criminal conduct.”

An official speaks to the media on Tuesday at the Menendez brothers' resentencing hearing.
Pic: Reuters
Image:
District attorney Nathan Hochman speaks to the media on Tuesday at the Menendez brothers’ resentencing hearing.
Pic: Reuters

Path to freedom?

“I’m not saying they should be released, it’s not for me to decide,” Judge Jesic said. “I do believe they’ve done enough in the past 35 years, that they should get that chance.”

After the judge’s decision, the brothers now have a new path to freedom after decades in prison.

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They are now eligible for parole under California’s youthful offender law because they committed the crime while under the age of 26.

The state parole board must still decide whether to release them from prison.

While this decision is made, the brothers will remain behind bars.

During the original trial, prosecutors accused the brothers of killing their parents for a multimillion-dollar inheritance, although their defence team argued they acted out of self-defence after years of sexual abuse by their father.

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The brothers have maintained since they were first charged with the murders that their parents abused them.

A Netflix series and subsequent documentary about the brothers thrust them back into the spotlight last year.

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