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Ben Levisohn, Jack Hough and Carleton English discuss the impact of debt negotiations on the markets, Foot Lockers shares and earnings performance as well as the resignation of Morgan Stanleys CEO James Gorman.
The Treasury Deptartment is expected to run out of the cash necessary to fund the federal government’s obligations by June 8 or 9 unless the debt ceiling is lifted, according to a report by Goldman Sachs.
Since the U.S. ran up against its $31.4 trillion debt limit in January this year, the Treasury has been using "extraordinary measures" which are accounting maneuvers that involve shifting funds between certain accounts to pay the government’s bills. Treasury is only able to use the extraordinary measures so long as balances in those accounts remain above $30 billion, at which point it can no longer fulfill all the federal government’s obligations.
Negotiators representing the Biden administration and congressional Republicans have been operating under the assumption June 1 will be the date on which Treasury exhausts its extraordinary measures, which could give lawmakers extra time to finalize a deal if the June 8 or 9 estimate from the Goldman Sachs note pans out. However, the report noted that there’s still a chance June 1 will be the deadline.
"The estimate is subject to substantial uncertainty so there is certainly a chance that receipts could slow more than expected and leave the Treasury short of cash by June 1 or 2," Goldman economists Alec Phillips and Tim Krupa wrote in the note to clients, which Bloomberg first reported.
YELLEN SAYS ODDS OF US PAYING ALL ITS BILLS BY JUNE 15 IS ‘QUITE LOW’ AS DEBT CEILING DEADLINE LOOMS
A report by a pair of economists from Goldman Sachs indicates the Treasury may have until June 8 or 9 until it’s unable to pay all the government’s obligations. (Fox News)
The Goldman Sachs economists noted that on Thursday last week, Treasury’s cash balance was at a little more than $57 billion after it had about $92 billion the day before. The Treasury's cash balances ebb and flow day-to-day based on incoming tax receipts and spending levels as federal bills come due, but the extraordinary measures will eventually be tapped out.
"We are confident that Congress will avoid going past the deadline without action, but there are many paths this could take," wrote the economists, who assigned a 30% chance of the two sides agreeing to a deal this week, along with a 30% chance of a deal "shortly before" the deadline is reached.
"While we expect a deal to occur ahead of the deadline, we also expect a few more twists along the way, and suspect that markets are likely to price in additional risk before the debt limit is finally raised," they explained.
DEBT CEILING DEADLINE IS CLOSER THAN PREVIOUSLY EXPECTED – HERE’S WHY
Treasury Secretary Janet Yellen has said the debt limit needs to be increased by June 1 or the U.S. will face difficult choices about which bills to pay. (Drew Angerer/Getty Images / Getty Images)
Treasury Secretary Janet Yellen said Sunday during an interview on NBC’s "Meet the Press" the likelihood of the U.S. making it to mid-June without the Treasury exhausting its extraordinary measures is "quite low" and that June 1 remains the hard deadline.
"And my assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills will go unpaid," Yellen added without going into specifics.
Senate Minority Leader Mitch McConnell (R-Ky.), Speaker of the House Kevin McCarthy (R-Calif.) and President Joe Biden, meet with other lawmakers in the Oval Office of the White House to discuss the debt limit on May 9, 2023. (Anna Moneymaker/Getty Images / Getty Images)
Negotiations between President Biden and House Speaker Kevin McCarthy, R-Calif., have picked up over the last week after weeks of little movement as the two sides press to strike a deal that staves off the fast-approaching threat of default.
House Republicans want to see a deal that contains spending caps, particularly on non-defense discretionary spending, while Democrats have been reluctant to agree to budget cuts.
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Biden and McCarthy are scheduled to meet Monday when the president returns from a trip to Japan for the G-7 that was cut short due to the state of negotiations, while staffers from the two sides will meet Sunday night.
McCarthy has said that a deal in principle would likely need to be reached this weekend to give Congress enough time to turn the deal into legislative text and pass the bill through the House and Senate ahead of the June 1 deadline.
FOX Business’ Stephen Sorace contributed to this report.
The furore surrounding Michael Matheson’s near £11,000 iPad data roaming bill was “completely blown out of all proportion”, according to the shamed MSP.
The Falkirk West MSP had initially billed taxpayers before U-turning, claiming the device had only been used for parliamentary work during a family holiday to Morocco.
It later emerged his teenage sons had been using the work iPad as a hotspot to stream football while on the trip.
Mr Matheson, who was first elected as an MSP in 1999, was questioned about his ministerial career during an interview with the Institute for Government (IFG) think tank as part of its Ministers Reflect series.
During the talk, held in October last year but published on Friday, he said his opponents had sought to take “political advantage” of the situation.
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Mr Matheson said: “I think the thing that you need to realise is that when you become a minister, if you do make a mistake, you can end up in the eye of a political storm.
“The thing that acted as a big catalyst for me was that, as soon as the general election was called, everything was put on steroids.
“It became a massive issue because folk saw a political advantage they could get from it. It just got completely blown out of all proportion, in my view.”
Mr Matheson was the net zero, energy and transport secretary in Nicola Sturgeon’s government at the time of the family holiday around Christmas in 2022.
Ahead of the trip he failed to replace an outdated SIM card, which led to increased data use costs.
Mr Matheson, who was later appointed health secretary in March 2023 under then first minister Humza Yousaf, told Holyrood he was unaware that his sons had used the iPad as a hotspot when he initially submitted the bill.
Following his wife’s admission, Mr Matheson initially failed to publicly mention his sons’ involvement.
Instead, he continued to insist the iPad was only used for parliamentary work and blamed the outdated SIM card for the excessive bill.
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Mr Matheson’s sons racked up the near £11,000 iPad bill streaming football abroad
When questioned by journalists days after he knew the truth, he continued to deny the iPad was used for personal use until he made a statement to Holyrood.
Mr Matheson quit as health secretary ahead of the conclusion of a probe by the Scottish Parliamentary Corporate Body (SPCB), which ruled he had breached the MSP code of conduct.
When asked if there were any lessons to be learned for other ministers, he told the IFG: “If I look back, the lesson I would say is recognising how unforgiving the political space is that you’re operating in.
“In the end, it was my desire to try and avoid the press knowing about what my son had done.
“It was completely unforgiving, despite the fact that when you offer it up, then they say you’re using it as a cover. Actually, no, I’m not, but I’m telling you that’s what’s happened.
“So, I think what I would say to ministers is that it is quite unforgiving at times when something like that happens, despite what your background is and how long you’ve been in government and how you’ve always tried to avoid getting the government into any difficult positions.”
He added: “When you’re a backbencher, if you do make an error, it’s not the same.
“But when you’re a minister and you’re a senior minister, you’re going to get chased down and you quite literally get chased down.”
Mr Matheson said a number of people reached out in support during the scandal.
He also said the scrutiny had a “significant impact” on his family, which included taking his teenage sons out of school and his wife becoming “unwell with stress”.
He added: “It’s in the public record that our house got broken into.”
When questioned about Mr Matheson’s latest comments, First Minister John Swinney said: “The parliament’s worked its way through all of these issues and it’s come to its conclusions and those conclusions stand.
“We just have to consider that as the conclusion that parliament has arrived at.”
The Scottish Conservatives criticised Mr Matheson’s remarks.
MSP Rachael Hamilton, the party’s deputy leader, said: “Taxpayers will be outraged that Michael Matheson is trying to downplay the scandal that ultimately forced him to resign in disgrace.
“The public were rightly furious that the then SNP health secretary thought it acceptable to ask them to foot the bill for his [iPad] expenses.
“He then repeatedly lied to them and parliament and refused to say sorry for what he had done.
“No wonder Scots are so disillusioned with senior SNP figures at Holyrood when they continue to hold voters in such contempt.”
Singer and actress Marianne Faithfull has died at the age of 78.
A spokesperson for her music promotion company Republic Media said: “It is with deep sadness that we announce the death of the singer, songwriter and actress Marianne Faithfull.
“Marianne passed away peacefully in London today, in the company of her loving family.
“She will be dearly missed.”
Faithfull was best known for her 1964 hit As Tears Go By, written by Sir Mick Jagger, with whom she had a well-publicised relationship, and fellow Rolling Stones star Keith Richards.
She also starred in films including The Girl On A Motorcycle and 2007’s Irina Palm, for which she was nominated for a European Film Award for Best Actress.
In recent years, she provided voice work for the 2021 remake of Dune and 2023’s Wild Summon.
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She and Sir Mick began seeing each other in 1966 and became one of the most glamorous couples of Swinging London.
He paid tribute to his “wonderful friend and beautiful singer and a great actress”, and said he was “so saddened” by her death, as “she was so much part of my life for so long”.
Next to a picture of the pair arm in arm on Instagram, Sir Mick said Faithfull “will always be remembered”.
His Stones bandmates Ronnie Wood and Keith Richards also paid tribute, with Richards posting on Instagram that he was “so sad and will miss her.”
His post was accompanied by a picture of the pair enjoying a drink together.
Wood wrote on Jagger’s post: “Farewell dear Marianne.”
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Born in 1946, Faithfull started her singing career in 1964 after being discovered by the Stones’ manager Andrew Loog Oldham.
Her self-titled debut album was released a year later, with As Tears Go By reaching number nine on the UK singles chart.
She went on to have a string of successful singles, including Come And Stay With Me, This Little Bird, and Summer Nights, and famously dated Sir Mick from 1966 to 1970.
Faithfull was prolific throughout the 60s, releasing six albums – some only in the UK and some for the US – as well as contributing backing vocals to the Beatles’ Yellow Submarine and inspiring the Stones’ Sympathy For The Devil.
That decade also saw her star in films like 1967’s I’ll Never Forget What’s’isname – where she was one of the first people to say f*** in a mainstream studio film – 1968’s The Girl On A Motorcycle, and Tony Richardson’s 1969 adaptation of Hamlet.
Her affair with Sir Mick was notorious, with the couple being arrested in 1968 for possession of cannabis.
She was also infamously found by police wearing only a bear skin rug when they arrived for a drugs raid at Richards’ home in 1967.
After breaking up with the Stones frontman, Faithfull spent two years homeless in Soho while suffering from anorexia and heroin addiction, before she started living in a squat.
She wrote in her 1994 autobiography: “For me, being a junkie was an admirable life. It was total anonymity, something I hadn’t known since I was 17.
“As a street addict in London, I finally found it. I had no telephone, no address.”
In 1979, following success in Ireland with the country-themed Dreamin’ My Dreams, Faithfull released the Grammy-nominated Broken English – widely considered her best album.
She later achieved critical acclaim as a jazz and blues singer with 1987’s Strange Weather and went to rehab that same decade.
Faithfull released a total of 21 solo albums throughout her career. Her most recent was the spoken word album She Walks In Beauty from 2021, which saw her work with frequent Nick Cave collaborator Warren Ellis.
She made a full recovery from breast cancer in 2006.
President Donald Trump speaks to members of the press in the Oval Office of the White House on Jan. 30, 2025.
Kent Nishimura for The Washington Post | Getty Images
Donald Trump has confirmed he will impose 25% tariffs on imports from Mexico and Canada from February, following through on threats issued weeks earlier.
The blanket tariffs on the countries’ products will come into effect on Saturday, Feb. 1.
However, speaking to reporters in the Oval Office on Thursday evening, Trump told reporters his administration was yet to determine whether oil imports would be included in the policy, noting that the decision was pinned on whether the two nations “treat us properly” and “if the oil is properly priced.”
“Oil is going to have nothing to do with it as far as I’m concerned,” he said. “We’re going to make that determination probably tonight on oil. Because they send us oil, we’ll see – it depends on what their price is.”
March contracts for Brent crude — the global benchmark for oil prices — were marginally higher at 8:06 a.m. London time, trading around $76.92 a barrel.
Trump told reporters the looming duties were being leveraged “for a number of reasons” and “may or may not rise with time.”
“Number one is the people that have poured into our country so horribly and so much,” he said. “Number two is the drugs fentanyl and everything else that have come into the country, and number three are the massive subsidies that we’re giving to Canada and Mexico in the form of deficits.”
“I’ll be putting the tariff of 25% on Canada and separately 25% on Mexico, and we’ll really have to do that because we have very big deficits with those countries,” he added.