AFP

Asian markets extend rally as bargain-buyers boost Hong Kong

Asian markets rose again Tuesday, building on the strong start to the week as traders look ahead to the Federal Reserve’s policy decision, hoping it will signal a more dovish approach to fighting inflation.

While Wall Street suffered a pullback from a recent rally, the mood in Asia remained optimistic while bargain-buying also provided some much-needed support to Hong Kong and Shanghai.

The Fed is widely expected Wednesday to announce a fourth straight 75-basis-point rate hike as it tries to rein in runaway prices, which has led to worries it will tip the world’s top economy into recession, sending stocks tumbling.

But a report last month suggesting officials are looking to dial down the pace of increases has sparked a rally in risk assets over the past week, helped by signs other central banks are also trying to take a step back.

“Fifty basis points or 75 basis points in December is ultimately less important than the path (Fed boss Jerome) Powell lays out for next year,” said Stephen Innes at SPI Asset Management.

“If push comes to shove, the Fed probably does not want to see the market pricing cuts as soon as the hike cycle finishes, so I expect the rhetoric to be targeted here.”

Data showing eurozone inflation hit a record 10.7 percent last month — fanned by a 41.9 percent rise in energy costs — drove home the fine line banks must walk in battling rising prices while trying to cushion fragile economies.

That came as other figures showed manufacturing around the world is shrinking owing to the spike in prices and borrowing costs.

“A global manufacturing contraction is here,” said OANDA’s Edward Moya.

“Factory activity is taking a big hit as China struggles with Covid, Europe is headed towards a recession, and as the US economy finally feels the impact of inflation and Fed tightening.”

In early trade, Hong Kong led the gains, jumping more than three percent thanks to a bargain-buying surge in beaten-down tech giants including Alibaba and Tencent.

Shanghai climbed more than one percent, along with Singapore and Seoul, while Tokyo, Sydney, Taipei and Bangkok. However, Jakarta and Wellington edged lower.

Investors are also keeping tabs on the earnings season, with Japanese giants Toyota and Sony among the big-name firms reporting.

The announcements come after a number of US companies have surprised with better-than-expected results, suggesting they are holding up despite the tough trading environment.

– Key figures around 0300 GMT –

Tokyo – Nikkei 225: UP 0.2 percent at 27,646.34 (break)

Hong Kong – Hang Seng Index: UP 3.7 percent at 15,224.90

Shanghai – Composite: UP 1.5 percent at 2,935.46

Euro/dollar: UP at $0.9905 from $0.9885 on Monday

Pound/dollar: UP at $1.1514 from $1.1465 

Dollar/yen: DOWN at 148.20 yen from 148.72 yen

Euro/pound: DOWN at 86.04 pence from 86.20 pence

West Texas Intermediate: UP 0.8 percent at $87.18 per barrel

Brent North Sea crude: UP 0.8 percent at $93.59 per barrel

New York – Dow: DOWN 0.4 percent at 32,732.95 (close)

London – FTSE 100: UP 0.7 percent at 7,094.53 (close)

Ukraine hit by water, power cuts after Russian missile strikes

Ukraine suffered sweeping blackouts and water supplies were cut to large parts of Kyiv on Monday after another wave of Russian missile strikes on key infrastructure.

The Ukrainian army’s commander in chief, Valeriy Zaluzhnyi, said on Telegram that Russia had launched 55 cruise missiles and dozens of other munitions at “civilian targets” across the country, days after Russia blamed Ukraine for drone attacks on its fleet in the Black Sea.

Presidential adviser Oleksiy Arestovich early Tuesday called the bombardment “one of the most massive shellings of our territory by the army of the Russian Federation”. 

But he noted on the same platform that thanks to improved air defences, “the destruction is not as critical as it could be”.

Though the army said many of the missiles had been shot down, Prime Minister Denys Shmygal said the strikes had still caused power cuts in “hundreds” of areas across seven Ukrainian regions.

Several blasts were heard in the capital Kyiv.

The city’s mayor, Vitali Klitschko, said later on Monday that 40 percent of consumers had been left without water, while 270,000 homes had no electricity.

In the west of Kyiv, an AFP journalist saw more than 100 people with empty plastic bottles and containers waiting to collect water from a park fountain.

Ukrainian Foreign Minister Dmytro Kuleba said on Twitter: “Instead of fighting on the battlefield, Russia fights civilians.”

Ukraine’s battered energy infrastructure would be repaired with equipment from 12 countries, Kuleba said in a separate statement. 

The Russian army confirmed it had carried out cruise missile strikes and said they had all reached their intended targets.

In Moldova, the government said a Russian missile shot down by Ukrainian air defences fell on the village of Naslavcea in the north of the country, but without causing any injuries.

– ‘Cold winter ahead’ –

Three missiles struck a site to the north of Kyiv, a soldier close to the target told AFP.

In a nearby town, Mila Ryabova, 39, told AFP she was woken by between eight and 10 “powerful explosions”.

“We were together with my family, preparing my daughter for school, but now there is no electricity in our house and at school,” said Ryabova, a translator.

“But we are worrying and talking about opportunities to move abroad, because there is a cold winter ahead. We may not have electricity, heat supply.”

Previous strikes this month have already destroyed about a third of Ukraine’s power stations.

Meanwhile, UN nuclear watchdog the International Atomic Energy Agency (IAEA) again raised concerns about the situation around Ukraine’s Zaporizhzhya Nuclear Power Plant, saying in a statement that a landmine explosion had cut power to one of its reactors.

“In a further sign of the precarious situation in the area of the ZNPP, the IAEA team said there had been shelling in the vicinity of the plant in recent days, following a period of reduced military activity,” the watchdog said.

The IAEA also confirmed it had begun independent “verification activities” at two locations in Ukraine to determine whether any “undeclared nuclear activities” were taking place after Russia accused Kyiv of producing a so-called “dirty bomb”.

Kyiv, which invited the IAEA inspectors, has counter-alleged that Moscow might itself use a dirty bomb in a “false flag” attack.

– Grain deal –

Monday’s strikes came after Russia pulled out of a landmark agreement that allowed vital grain shipments via a maritime safety corridor. 

The July deal to unlock grain exports signed between warring nations Russia and Ukraine — and brokered by Turkey and the United Nations — is critical to easing the global food crisis caused by the conflict.

But Russia announced Saturday it would suspend its participation in the deal after accusing Kyiv of a “massive” drone attack on its Black Sea fleet, which Ukraine labelled a “false pretext”.

Kremlin spokesman Dmitry Peskov warned that continuing grain exports without Russian participation was “hardly feasible”.

The Russian defence ministry said Monday that it wanted “additional commitments” from Ukraine not to use the grain exports corridor for military purposes.

In his evening address Monday, President Volodymyr Zelensky said the grain deal breakdown was “clear evidence that Russia will continue to oppose itself to the entire international community”, adding it was “very important now to prevent this global destabilisation”.

Russian President Vladimir Putin, meanwhile, repeated the accusation that Ukraine used the grain corridor for the attack, saying Kyiv had put civilian ships in danger, and calling on it to guarantee “that there will be no threat to the safety of civilian vessels”.

Despite Russia’s decision to suspend its participation, at least 10 cargo ships loaded with grain and other agricultural products left Ukrainian ports Monday, according to a marine traffic website.

“Civilian cargo ships can never be a military target or held hostage. The food must flow,” Amir Abdulla, UN coordinator for the Black Sea Grain Initiative, said on Twitter.

burs/gw/wd/sst/smw/cwl

Musk on the move at Twitter after takeover finalized

Elon Musk has hit the ground sprinting after his Twitter takeover, seeking major changes to the platform only days after finalizing his controversial $44 billion purchase. 

Documents filed Monday with the US Securities and Exchange Commission (SEC) showed that Musk has become Twitter’s sole director after finalizing the deal last week and dissolving its corporate board.

The documents state that the “consummation of the Merger” occurred on October 27, at which point “Mr. Musk became the sole director of Twitter,” while the entire board, including CEO Parag Agrawal, were let go.

When he made his initial buyout offer in April, Musk — also the CEO of Tesla and SpaceX — stated that he intended to remove Twitter from the public market, after which fewer public disclosures would be required.

When the unpredictable billionaire tried to walk away from the deal, Twitter sued Musk in a Delaware court.

But with an October trial date looming, Musk revived the deal in early October, ultimately sealing the takeover at $54.20 per share last week.

After changing his Twitter bio to “Chief Twit,” Musk reportedly worked over the weekend with software engineers from Tesla to look under the hood of the one-to-many messaging platform, and on planning massive layoffs.

The team has reportedly been attempting to monetize Twitter’s identity verification feature, which gives certain users a prized blue check mark next to their profile.

One option, The Verge reports, would be to require verified users to sign up for the platform’s paid subscription service, Twitter Blue, which currently costs just under five dollars a month.

That price would increase to around $20 a month, and if unpaid, verified users would lose their blue check mark.

“The whole verification process is being revamped right now,” tweeted Musk on Sunday.

The new boss has also asked teams to relaunch Vine by the end of the year, newsite Axios reported.

Twitter bought the ultra-short video app in 2012, long before TikTok became the format’s dominant player, but shuttered it four years later.

The Washington Post has reported that the multi-billionaire plans to fire some 75% of his new company’s 7,500 employees.

Musk’s previous comments condemning Twitter’s content moderation policies as heavy-handed — as well as his frequent posts of boundary-testing memes — has given pause to some advertisers, the company’s main source of revenue.

He tried to calm the nerves by reassuring that the site would not become a “free-for-all hellscape,” and announced the formation of a content moderation council.

On Monday, he traveled to New York, where his team met with several advertisers to try to reassure them, according to The Information.

The new Musk-led entity formed under the merger agreement has also offered to buy back all of Twitter’s outstanding bonds, according to the SEC filing.

Musk, the wealthiest person in the world, financed the massive deal through a mixture of his own funds, money from other investment groups and loans from banks which will have to be reimbursed.

According to another Twitter document filed with the SEC, Saudi Prince Al-Waleed Bin Talal has become the site’s second largest shareholder. 

The businessman, who had initially rejected Musk’s offer as too low compared to Twitter’s “intrinsic value,” eventually contributed the nearly 35 million shares he already owned.

“Dear friend ‘Chief Twit’ @elonmusk,” wrote Al-Waleed on Twitter last Friday with a statement announcing the rollover of his shares.

“Together all the way,” he added, with an emoji of two hands shaking.

New potentially hazardous asteroid discovered

An international team of astronomers on Monday announced the discovery of a large asteroid whose orbit crosses that of Earth, creating a small chance far in the future of a catastrophic collision.

The 1.5 kilometer- (0.9 mile-) wide asteroid, named 2022 AP7, was discovered in area notoriously difficult to spot objects due to the glare from the Sun.

It was found along with two other near-Earth asteroids using a high-tech instrument on the Victor M. Blanco telescope in Chile that was originally developed to study dark matter.

“2022 AP7 crosses Earth’s orbit, which makes it a potentially hazardous asteroid, but it currently does not now or anytime in the future have a trajectory that will have it collide with the Earth,” said lead author of the findings, astronomer Scott Sheppard of the Carnegie Institution for Science.

The potential threat comes from the fact that like any orbiting object, its trajectory will be slowly modified due to myriad gravitational forces, notably by planets. Forecasts are therefore difficult on the very long term.

The newly-discovered asteroid is “the largest object that is potentially hazardous to Earth to be discovered in the last eight years,” said NOIRLab, a US-funded research group that operates multiple observatories.

2022 AP7 takes five years to circle the Sun under its current orbit, which at its closest point to Earth remain several million kilometers away.

The risk is therefore very small, but in case of a collision, an asteroid of that size “would have a devastating impact on life as we know it,” said Sheppard. He explained that dust launched into the air would have a major cooling effect, provoking an “extinction event like hasn’t been seen on Earth in millions of years.”

His team’s results were published in the scientific journal The Astronomical Journal. The two other asteroids pose no risk to Earth, but one is the closest asteroid to the Sun ever found.

Some 30,000 asteroids of all sizes — including more than 850 larger than a kilometer wide — have been catalogued in the vicinity of the Earth, earning them the label “Near Earth Objects” (NEOs). None of them threaten Earth for the next 100 years.

According to Sheppard, there are “likely 20 to 50 large NEOs left to find,” but most are on orbits that put them in the Sun’s glare.

In preparation for a future discovery of a more threatening object, NASA conducted a test mission in late September in which it collided a spacecraft with an asteroid, proving that it was possible to change its trajectory.

Germany's Scholz set for high-stakes China visit

German Chancellor Olaf Scholz makes a high-stakes trip to China this week, walking a tightrope between shoring up a key economic relationship and facing heightened concerns about over-reliance on authoritarian Beijing.

Scholz, accompanied by a delegation of business executives, will be the first European Union leader to visit the world’s second-biggest economy since 2019.

During the one-day trip on Friday, he will hold talks with President Xi Jinping and Premier Li Keqiang. 

But the visit has sparked controversy, coming as Berlin reels from an over-dependence on Russian energy imports that left it exposed when Moscow slashed supplies following its invasion of Ukraine.

That crisis has prompted soul-searching about whether German industry’s heavy reliance on China could again leave it vulnerable.

Surging tensions between the West and Beijing over issues ranging from Taiwan to human rights in Xinjiang have added to a worsening geopolitical climate, and even senior figures within Scholz’s coalition are raising concerns. 

Foreign Minister Annalena Baerbock said she feared mistakes made in the relationship with Russia could be repeated with China.

“We must prevent that,” Baerbock — from the Greens, a member of Scholz’s uneasy three-party ruling coalition — told broadcaster ARD at the weekend.

“I think it is extremely important that we never again make ourselves so dependent on a country that does not share our values.”

– ‘Minimise risks’ –

The sensitivity was highlighted when a row erupted last month about whether to allow Chinese shipping giant Cosco to buy a stake in a Hamburg port terminal. 

Ultimately, Scholz defied calls from six ministries to veto the sale over security concerns, instead permitting the company to acquire a reduced stake.

Some in government will view shoring up the economic partnership with China as crucial at a time Germany, battered by the energy crisis, is hurtling towards a recession.

Ahead of the trip, Scholz’s spokesman Steffen Hebestreit stressed the chancellor was not in favour of “decoupling” from China — but also wanted to “diversify, and minimise risks”.

For now, the German and Chinese economies remain deeply intertwined.

China is a major market for German goods, particularly for auto giants Volkswagen, BMW and Mercedes-Benz, and many jobs in Europe’s top economy depend directly on the relationship.

The worsening climate has rattled the nerves of German firms with investments in China. BASF chemicals giant boss Martin Brudermueller, who will accompany Scholz, last week urged an end to “China bashing”.

Still, the timing of the trip has raised eyebrows, coming so soon after Xi Jinping secured a historic third term as China’s leader. 

“The timing is extremely unfortunate,” Heribert Dieter, from the German Institute for International and Security Affairs, told AFP. 

Xi “has just been confirmed for another five years in office, and of course Chinese politicians see the German chancellor’s visit as confirmation of their policies”, he added. 

– ‘Follow its own path’ –

Hebestreit insisted the visit will “cover the entire spectrum of our relations with China”, including tensions in East Asia, and human rights.

He said the war in Ukraine would be on the agenda. While Germany has firmly condemned Russia’s invasion, China has steadfastly avoided criticising Moscow and instead blames the United States and NATO for the conflict. 

He also said that Scholz was in close contact with international partners in Europe, as well as the United States, about the visit. 

But some may see it as further evidence of Germany going it alone to look after its own interests.

Berlin has already raised hackles among fellow EU members by unveiling a 200-billion-euro ($198 billion) fund to shield consumers and businesses from surging energy prices, rather than acting together with the rest of the bloc.

“Western allies — of course in Paris but above all in Washington — see this trip very critically,” said Dieter.

“Germany is following its own path.”

Germany's Scholz set for high-stakes China visit

German Chancellor Olaf Scholz makes a high-stakes trip to China this week, walking a tightrope between shoring up a key economic relationship and facing heightened concerns about over-reliance on authoritarian Beijing.

Scholz, accompanied by a delegation of business executives, will be the first European Union leader to visit the world’s second-biggest economy since 2019.

During the one-day trip on Friday, he will hold talks with President Xi Jinping and Premier Li Keqiang. 

But the visit has sparked controversy, coming as Berlin reels from an over-dependence on Russian energy imports that left it exposed when Moscow slashed supplies following its invasion of Ukraine.

That crisis has prompted soul-searching about whether German industry’s heavy reliance on China could again leave it vulnerable.

Surging tensions between the West and Beijing over issues ranging from Taiwan to human rights in Xinjiang have added to a worsening geopolitical climate, and even senior figures within Scholz’s coalition are raising concerns. 

Foreign Minister Annalena Baerbock said she feared mistakes made in the relationship with Russia could be repeated with China.

“We must prevent that,” Baerbock — from the Greens, a member of Scholz’s uneasy three-party ruling coalition — told broadcaster ARD at the weekend.

“I think it is extremely important that we never again make ourselves so dependent on a country that does not share our values.”

– ‘Minimise risks’ –

The sensitivity was highlighted when a row erupted last month about whether to allow Chinese shipping giant Cosco to buy a stake in a Hamburg port terminal. 

Ultimately, Scholz defied calls from six ministries to veto the sale over security concerns, instead permitting the company to acquire a reduced stake.

Some in government will view shoring up the economic partnership with China as crucial at a time Germany, battered by the energy crisis, is hurtling towards a recession.

Ahead of the trip, Scholz’s spokesman Steffen Hebestreit stressed the chancellor was not in favour of “decoupling” from China — but also wanted to “diversify, and minimise risks”.

For now, the German and Chinese economies remain deeply intertwined.

China is a major market for German goods, particularly for auto giants Volkswagen, BMW and Mercedes-Benz, and many jobs in Europe’s top economy depend directly on the relationship.

The worsening climate has rattled the nerves of German firms with investments in China. BASF chemicals giant boss Martin Brudermueller, who will accompany Scholz, last week urged an end to “China bashing”.

Still, the timing of the trip has raised eyebrows, coming so soon after Xi Jinping secured a historic third term as China’s leader. 

“The timing is extremely unfortunate,” Heribert Dieter, from the German Institute for International and Security Affairs, told AFP. 

Xi “has just been confirmed for another five years in office, and of course Chinese politicians see the German chancellor’s visit as confirmation of their policies”, he added. 

– ‘Follow its own path’ –

Hebestreit insisted the visit will “cover the entire spectrum of our relations with China”, including tensions in East Asia, and human rights.

He said the war in Ukraine would be on the agenda. While Germany has firmly condemned Russia’s invasion, China has steadfastly avoided criticising Moscow and instead blames the United States and NATO for the conflict. 

He also said that Scholz was in close contact with international partners in Europe, as well as the United States, about the visit. 

But some may see it as further evidence of Germany going it alone to look after its own interests.

Berlin has already raised hackles among fellow EU members by unveiling a 200-billion-euro ($198 billion) fund to shield consumers and businesses from surging energy prices, rather than acting together with the rest of the bloc.

“Western allies — of course in Paris but above all in Washington — see this trip very critically,” said Dieter.

“Germany is following its own path.”

US Republicans gain firm toehold a week out from Election Day

Candidates were making closing pitches Tuesday in the US midterm elections that decide control of Congress for the remainder of President Joe Biden’s term, with Republicans smelling blood in the water.

Polling is pointing to a re-emerging “red wave” that will likely see the party of Biden’s political foe Donald Trump dismantling the Democrats’ razor-thin majority in the House and possibly retaking the Senate.

Republicans are confident they can flip the one state they need for the upper chamber and are expecting gains in the House of 12 to 25 seats, easily enough to overcome the Democrats’ eight-member advantage.

“I think the Democrats are going to get a rude awakening on November 8 that high inflation, high crime, open borders is not what the American public wants,” National Republican Senatorial Committee chairman Rick Scott told ABC on Sunday.

With all 435 seats in the House of Representatives up for grabs alongside a third of the 100-member Senate and a slew of state posts, the economy is proving the biggest liability for Biden’s Democrats.

Inflation — up 8.2 percent in a year — is easily outranking abortion rights in voters’ priorities, forcing Democrats to recast their closing message to tout legislative wins they say will save Americans money.

They are also warning that Republicans want to curb entitlements, and have doubled down on threats to democracy they say extremist right-wingers pose, as well as Trump’s role in the 2021 attack on the US Capitol.

– ‘Reality is setting in’ –

Republicans meanwhile have zeroed in on urban violence, an issue that has helped the party make notable inroads in key swing states, portraying their colleagues across the aisle as soft on crime.

The story of the final days of the campaign has been Republican incursion into the Democrats’ back yard, with candidates eyeing opportunities for House seats that were once out of reach. 

Strategists from both parties are seeing districts across New York, Oregon and Connecticut that went for Biden by double digits in 2020 coming back into play. 

“We thought for a little bit that we could defy gravity, but the reality is setting in,” Sean McElwee, executive director of Data for Progress, a left-leaning polling firm, told The New York Times.   

The Republicans are also showing most of the late momentum in the Senate — where the Democrats currently rely for their majority on a tie-breaking vote from Vice President Kamala Harris.

Democrats are a nose in front but see their margins narrowing in Pennsylvania, Arizona and New Hampshire.

Republicans have taken the lead in Nevada, the country’s closest contest, and Wisconsin, while Georgia has edged back into the red column despite a tumultuous campaign by scandal-hit challenger Herschel Walker.

More than 21 million people across 46 states have already voted but the public is being warned that patience may be required on election night, with vote counting in some states expected to take days.

If Republicans win back either chamber, they have vowed to launch investigations into the Biden administration, with the targets ranging from the president himself to Homeland Security Secretary Alejandro Mayorkas.

– ‘Across the aisle’ –

For Biden, who turns 80 two weeks after the election, a comprehensive defeat could be a double-blow, threatening his agenda and chipping away at support for his bid to seek a second term.

The president — who voted early in Wilmington, Delaware on Saturday — heads this week to Florida, Pennsylvania, Maryland, New Mexico and California to make the case for Democratic government.

Former president Barack Obama, still comfortably the party’s biggest star, has been on a tour to reinvigorate support in tightening races that takes him to Nevada, Arizona and Pennsylvania this week.

“I understand why you might be worried about the course of the country. Sometimes it’s tempting just to tune out, watch football, watch ‘Dancing With The Stars,'” Obama said during a weekend blitz of swing states. 

“I’m here to tell you tuning out is not an option.”

Trump kicks off a series of rallies in Iowa, Florida and Pennsylvania on Thursday, shrugging off an array of legal investigations against him as he throws himself behind some of the dozens of candidates he has endorsed.

Some Republicans worry that their winning margins could be narrowed by the defeat of fringe Trump-backed hopefuls in moderate races, although most remain four-square behind the 76-year-old tycoon.

“Joe Biden has always talked about how he wants to be unified and work across the aisle,” Republican National Committee chairwoman Ronna McDaniel told Fox News on Sunday.

“Well, this is his chance, because this is going to be repudiation of the Democratic Party.”

Attempted murder charge in 'politically motivated' attack on Pelosi husband

The man accused of attacking US House Speaker Nancy Pelosi’s husband was charged on Monday with attempted murder and attempted kidnapping of a public official, with the assault now described by a lead prosecutor as politically motivated.

Suspect David DePape of California was arrested early Friday morning after he allegedly broke into Pelosi’s San Francisco mansion, intending to tie up the powerful politician and break her kneecaps with a hammer if she did not confess to Democratic “lies,” the US Justice Department said in a court filing.

DePape had tape, rope, zip ties and other materials with him, the Justice Department said, but he found only Pelosi’s husband Paul, whom he attacked, hitting him in the head with a hammer.

Federal authorities on Monday charged DePape, 42, with attempting to kidnap a US official and assaulting her family member over her actions in her job.

Hours later, San Francisco District Attorney Brooke Jenkins announced a slew of new state charges that she said include “attempted murder, residential burglary, assault with a deadly weapon, elder abuse, false imprisonment of an elder as well as threats to a public official and their family.”

If convicted on the state charges, DePape would face 13 years to life in prison, according to Jenkins.

She said the state and federal prosecutions will move forward in parallel, and that her office will seek to have DePape detained without bail when he is arraigned on Tuesday.

In a court affidavit, the FBI said DePape told them after his arrest that he viewed Nancy Pelosi as responsible for lies told by her Democratic Party.

He intended to hold Pelosi — who is second in line to the US presidency after the vice president — hostage and talk to her, the affidavit said.

“If Nancy were to tell DePape the ‘truth,’ he would let her go, and if she ‘lied,’ he was going to break ‘her kneecaps,'” the affidavit said.

Nancy Pelosi was not in San Francisco at the time of the attack.

Awakened by the break-in, Paul Pelosi dialed the 911 emergency number and meanwhile conversed with DePape, seeking to keep the situation calm until police arrived.

But when police came on the scene the two struggled over a hammer and DePape smashed Paul Pelosi’s head with it, leaving him unconscious, according to the affidavit.

Police subdued DePape and Pelosi, 82, was sent to a hospital where he underwent emergency surgery for a skull fracture and serious injuries to his right arm and hands.

DePape later told authorities that Paul Pelosi was “taking the punishment instead” of his wife, given her absence.

Nancy Pelosi said late Monday that her family has been deluged with thousands of messages of concern and warm wishes, and while a recovery was expected for her husband, she stressed he faced an extensive rehabilitation.

“Thanks to the excellent trauma care medical team at Zuckerberg San Francisco General Hospital, Paul is making steady progress on what will be a long recovery process.”

– Heightened tensions –

The assault and attempted kidnapping came amid heightened political tensions ahead of the November 8 midterm elections, with Democrats expected to lose their majority in the Pelosi-led House of Representatives. 

Asked about the motivations for the violence, District Attorney Jenkins said that based on DePape’s statements, and his remarks made in the Pelosi home, “this was politically motivated.”

On Friday, before details of the Pelosi attack were known, US security officials expressed concerns in a pre-election intelligence bulletin that disinformation could foment attacks by extremists.

DePape, who lived in a garage in nearby Richmond, California, was not a known extremist, but had in recent months posted and reposted unfounded claims that elections had been rigged, that climate science and Covid vaccines were bogus, that the Holocaust was fake, and other conspiracy theories.

Inti Gonzalez, whose mother was DePape’s partner for several years, said he had mental health issues and had recently turned to right-wing plot-mongering.

In addition to the state attempted murder charge, the federal kidnapping charge brings up to 20 years in prison and the assault charge a maximum of 30 years in prison.

Biden threatens tax hit for 'war profiteering' oil giants

US President Joe Biden said Monday he plans to seek tax penalties for oil companies unless they invest their record profits in lowering consumer costs and boosting production, criticizing their “war profiteering.”

His comments came days after oil giants ExxonMobil and Chevron reported bumper earnings, reflecting how a surge in crude prices after Russia’s invasion of Ukraine has boosted the industry.

Natural gas costs have also risen, due to Europe’s mobilization to offset lost imports from Russia.

“Their profits are a windfall of war,” Biden told reporters on Monday, referring to energy businesses’ earnings.

Biden said companies have a “responsibility to act” beyond the narrow self-interest of executive shareholders, and to help consumers by raising production and their refining capacity.

If businesses do not act to lower prices, “they’re going to pay a higher tax on their excess profits and face other restrictions,” Biden said, adding that officials will work with Congress to look into the issue.

While oil and gas prices have recently cooled, they are still much higher than before Russia launched its invasion of Ukraine in February.

Hefty profits reported earlier by TotalEnergies and Shell have also reignited a European debate on windfall profits taxes.

“It’s time for these companies to stop war profiteering… give the American people a break and still do very well,” Biden said.

Beyond international developments, the energy sector has seen heightened refining margins, in part due to operational issues at some plants.

The strong margins have translated into higher gasoline prices, a sensitive issue for American voters as the November 8 midterm elections draw close.

– ‘Unacceptable’ –

On Saturday, Biden tweeted that oil companies made billions in profits this quarter and were “using these record profits to pay out their wealthy shareholders instead of investing in production and lowering costs for Americans.”

“It’s unacceptable,” he wrote, adding that it was time for oil giants to help lower prices for consumers.

American families have been squeezed by persistently high inflation, propelling the issue to the top among voter concerns.

In the third quarter, ExxonMobil scored a near tripling of profits to $19.7 billion, a company record, while Chevron profits surged 84 percent to $11.2 billion.

ExxonMobil Chief Executive Daren Woods, in response to criticism that the industry should return profits to Americans, said on Friday that this was what it was doing in the form of its quarterly dividend.

But this drew a response from the president, who said in another tweet that “giving profits to shareholders is not the same as bringing prices down for American families.”

Frustration and anger with negative economic issues like rising inflation is often directed at the president and the party in power.

Average prices at US pumps topped $5 per gallon in June, hitting an all-time high.

Biden threatens tax hit for 'war profiteering' oil giants

US President Joe Biden said Monday he plans to seek tax penalties for oil companies unless they invest their record profits in lowering consumer costs and boosting production, criticizing their “war profiteering.”

His comments came days after oil giants ExxonMobil and Chevron reported bumper earnings, reflecting how a surge in crude prices after Russia’s invasion of Ukraine has boosted the industry.

Natural gas costs have also risen, due to Europe’s mobilization to offset lost imports from Russia.

“Their profits are a windfall of war,” Biden told reporters on Monday, referring to energy businesses’ earnings.

Biden said companies have a “responsibility to act” beyond the narrow self-interest of executive shareholders, and to help consumers by raising production and their refining capacity.

If businesses do not act to lower prices, “they’re going to pay a higher tax on their excess profits and face other restrictions,” Biden said, adding that officials will work with Congress to look into the issue.

While oil and gas prices have recently cooled, they are still much higher than before Russia launched its invasion of Ukraine in February.

Hefty profits reported earlier by TotalEnergies and Shell have also reignited a European debate on windfall profits taxes.

“It’s time for these companies to stop war profiteering… give the American people a break and still do very well,” Biden said.

Beyond international developments, the energy sector has seen heightened refining margins, in part due to operational issues at some plants.

The strong margins have translated into higher gasoline prices, a sensitive issue for American voters as the November 8 midterm elections draw close.

– ‘Unacceptable’ –

On Saturday, Biden tweeted that oil companies made billions in profits this quarter and were “using these record profits to pay out their wealthy shareholders instead of investing in production and lowering costs for Americans.”

“It’s unacceptable,” he wrote, adding that it was time for oil giants to help lower prices for consumers.

American families have been squeezed by persistently high inflation, propelling the issue to the top among voter concerns.

In the third quarter, ExxonMobil scored a near tripling of profits to $19.7 billion, a company record, while Chevron profits surged 84 percent to $11.2 billion.

ExxonMobil Chief Executive Daren Woods, in response to criticism that the industry should return profits to Americans, said on Friday that this was what it was doing in the form of its quarterly dividend.

But this drew a response from the president, who said in another tweet that “giving profits to shareholders is not the same as bringing prices down for American families.”

Frustration and anger with negative economic issues like rising inflation is often directed at the president and the party in power.

Average prices at US pumps topped $5 per gallon in June, hitting an all-time high.

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