US Business

Dollar extends 2022 surge as market awaits key US inflation data

The dollar extended its banner run of 2022 on Monday, pushing higher following the latest solid US jobs data as equities retreated in both New York and Europe.

The US currency, which has already struck multi-year highs against the euro and other leading currencies, rose as investors bet that the latest round of US employment data released Friday will confirm a Federal Reserve plan to continue aggressively hiking interest rates.

This week’s calendar includes the latest US consumer price index data, which will give an updated reading on inflation that has prompted a 180-degree turn from the Fed’s easy-money policies to a streak of significant interest rate hikes.

“Inflation remaining stubbornly elevated would threaten to upset the market apple cart and buoy the dollar,” said a note from Joe Manimbo of Convera.

Analysts said Monday’s gains by the greenback also reflected the worsening Russia-Ukraine conflict, which has bolstered the dollar’s standing as a “refuge” investment.

US stocks finished a choppy session lower, joining European bourses in retreating.

This week’s calendar also includes retail sales for September, as well earnings from Delta Air Lines, JPMorgan and others. 

Investors are cautious ahead of the earnings period, with rising costs expected to cut into corporate profits. 

Analysts now project the S&P 500 companies scored an earnings increase of 2.9 percent per share, down from the 10.5 percent that had been forecast in June, according to CFRA Research.

“We’re seeing mild risk aversion in the markets at the start of the week, perhaps some apprehension ahead of what could be a big few days for the US,” said market analyst Craig Erlam at OANDA.

Elsewhere the pound won little support from Britain ramping up efforts to calm markets after a heavily criticised budget.

In what was seen as coordinated action, the government brought forward the release date of key economic forecasts and the Bank of England boosted liquidity.

“With the pound remaining weak and (UK) government borrowing costs inching up again towards worrying levels, the UK government and the Bank of England have launched a two-pronged attempt to calm markets,” noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Oil prices meanwhile fell after the biggest weekly gain since March that followed last week’s decision by OPEC and allied producers led by Russia to slash crude output by two million barrels per day.

The drop Monday came also on demand concerns caused by China’s Covid flare-ups and more weak data out of Beijing owing to lockdowns.

– Key figures around 2030 GMT –

New York – Dow: DOWN 0.3 percent at 29,202.88 (close)

New York – S&P 500: DOWN 0.8 percent at 3,612.39 (close)

New York – Nasdaq: DOWN 1.0 percent at 10,542.10 (close)

London – FTSE 100: DOWN 0.5 percent at 6,959.31 (close) 

Frankfurt – DAX: FLAT at 12,272.94 (close)

Paris – CAC 40: DOWN 0.5 percent at 5,840.55 (close)

EURO STOXX 50: DOWN 0.6 percent at 3,356.88 (close)

Hong Kong – Hang Seng Index: DOWN 3.0 percent at 17,216.66 (close) 

Shanghai – Composite: DOWN 1.7 percent at 2,974.15 (close)

Tokyo – Nikkei 225: Closed for a holiday

Pound/dollar: DOWN at $1.1059 from $1.1086 on Friday

Euro/dollar: DOWN at $0.9708 from $0.9745

Euro/pound: DOWN at 87.76 pence from 87.90 pence

Dollar/yen: UP at 145.72 yen from 145.25 yen

West Texas Intermediate: DOWN 1.6 percent at $91.13 per barrel

Brent North Sea crude: DOWN 1.8 percent at $96.19 per barrel

burs-jmb/bfm

Weinstein sex assault trial opens in Los Angeles

Jury selection began Monday in the Los Angeles trial of disgraced Hollywood movie mogul Harvey Weinstein, with five alleged victims expected to take the stand during the two-month case.

The 70-year-old “Pulp Fiction” producer is already serving 23 years in jail in New York after being convicted there of a series of sex crimes.

He now faces 11 more charges, including sexual battery by restraint, forcible rape and forcible oral copulation against women in Beverly Hills and Los Angeles hotels between 2004 and 2013.

If convicted, Weinstein — who has pleaded not guilty to all counts — could be sentenced to more than 100 additional years behind bars.

Weinstein, who uses a wheelchair, wore a dark blue suit with a light blue tie when he appeared in court.

The potentially lengthy task of selecting a jury got underway Monday with Judge Lisa Lench overseeing proceedings.

Widespread sexual abuse and harassment allegations against Weinstein exploded in October 2017, and his conviction in New York in 2020 was a landmark in the #MeToo movement.

In June, he lost a bid to have that sex crimes conviction overturned. He has also been separately charged by British prosecutors with the 1996 indecent assault of a woman in London.

In total, nearly 90 women, including Angelina Jolie, Gwyneth Paltrow and Salma Hayek, have accused Weinstein of harassment or assault.

– Power players –

The Los Angeles Times on Monday quoted Weinstein attorney Mark Werksman as saying there would be testimony from well-known figures.

“Some of these victims, people will recognize them. Some of these women, you’ve seen them in movies, they’ve been in ad campaigns, a couple of them have achieved some success as actresses or models,” Werksman said, according to the paper.

The Times said one of the five accusers — all of whom will be known formally as “Jane Doe” — would be Jennifer Siebel Newsom, wife of California Governor Gavin Newsom.

“Like many other women, my client was sexually assaulted by Harvey Weinstein at a purported business meeting that turned out to be a trap,” her lawyer Elizabeth Fegan told the paper. 

“She intends to testify at his trial in order to seek some measure of justice for survivors, and as part of her life’s work to improve the lives of women.”

Siebel Newsom has previously written about Weinstein’s behavior in an essay published in 2017, but did not give details about the alleged assaults.

Weinstein says that all his sexual encounters were consensual, and his lawyer told reporters that the Los Angeles accusations “stem from many years ago” and cannot “be substantiated or corroborated by any forensic evidence” or “credible witnesses.”

The New York Film Festival this week will premiere “She Said,” a film about the 2017 newspaper investigation into Weinstein that sparked the demise of his movie empire.

Before the allegations against him emerged, the producer and his brother Bob were Hollywood’s ultimate power players.

They co-founded Miramax Films, a distribution company named after their mother Miriam and father Max, in 1979. It was sold to Disney in 1993.

Their hits included 1998’s “Shakespeare in Love,” for which Weinstein shared a best picture Oscar. Over the years, Weinstein’s films received more than 300 Oscar nominations and 81 statuettes.

US trio, including ex-Fed chief Bernanke, win economics Nobel

A US trio including ex-Federal Reserve chief Ben Bernanke, who played a key role battling the 2008 financial crisis, won the economics Nobel on Monday for research on banks in times of turmoil.

Bernanke, together with Douglas Diamond and Philip Dybvig, were honoured for having “significantly improved our understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets”, the jury said.

Bernanke, 68, has been both credited for spurring recovery after the 2008 recession and pilloried by critics for doing little to avert it, allowing investment bank Lehman Brothers to collapse.

He received the award for his analysis, conducted in the early 1980s, of the Great Depression in the 1930s, the worst economic crisis in modern history.

In particular, Bernanke showed “how failing banks played a decisive role in the global depression,” making the downturn “not only deep, but also long-lasting,” the Nobel jury noted.

In his role as chief of the central bank, Bernanke “was able to put knowledge from research into policy” during the financial crisis of 2008-2009, the Nobel Committee said.

Bernanke has been hailed for the Fed’s unorthodox response of slashing interest rates and flooding the financial system with liquidity.

He told a press conference Monday that he and his Fed colleagues were determined to prevent a financial system meltdown at the time: “I strongly believed that if that happened, that would bring down the rest of the economy.”

But Bernanke added that today’s situation is nothing like “the dire straits” 14 years ago, adding that banks are better prepared for challenges now.

– Bank runs –

Diamond, a professor at the University of Chicago born in 1953, and Dybvig, 67, a professor at Washington University in St Louis, were honoured for showing how “banks offer an optimal solution” for channelling savings to investments by acting as an intermediary.

The pair also showed how these institutions were vulnerable to so called bank runs, where a large number of savers simultaneously withdraw their money leading to the bank’s collapse.

The committee added that this dangerous dynamic can be avoided by governments providing deposit insurance and giving banks a lifeline by becoming a lender of last resort.

“In a nutshell, the theory says that banks can be tremendously useful but they are only guaranteed to be stable if they are properly regulated”, Tore Ellingsen, chair of the prize committee, said.

Diamond, speaking to reporters after the announcement, reflected Monday on the decision by US authorities not to bail out Lehman Brothers, as they later did other financial institutions.

The bank’s collapse sent shockwaves through financial markets when it filed for bankruptcy in September 2008.

“It would have been better to find a more accommodating way, a less unstable way and unexpected way to resolve Lehman Brothers,” Diamond said, stressing there were questions about what regulators were legally able to do.

“Had they found a way, I think the world would have had less of a severe crisis than it did,” Diamond said.

Asked about economic problems today, Dybvig told AFP he was “optimistic” these do not necessarily point to a financial crisis with a meltdown in the banking sector.

– Few women –

Of all the Nobels, the economics prize has the fewest number of female winners: just two since it was first awarded in 1969, Elinor Ostrom in 2009 and Esther Duflo in 2019.

This year, only two women were among the 12 individuals and two organisations honoured, Carolyn Bertozzi in chemistry and Annie Ernaux for literature.

Hans Ellegren, secretary general of the Royal Swedish Academy of Sciences, told AFP that since the science prizes generally honour research dating back decades, laureates who win “now reflect what the scientific community looked like back then.”

He said in the last five years, four women had been awarded the chemistry prize and two had received the physics prize, which has been a male-dominated field.

The economics prize, created by the Swedish central bank in 1968, was the only award not included when scientist Alfred Nobel created the prestigious awards in his 1895 will.

But like the other prizes it comes with a gold medal and an award sum of 10 million Swedish kronor (around $900,000).

The winners will receive the prize from King Carl XVI Gustaf at a formal ceremony in Stockholm on December 10, the anniversary of the 1896 death of scientist Alfred Nobel. 

Ukraine vows to unite against 'terrorist' Russia

Ukraine vowed Monday it would not be intimidated by a wave of deadly missile strikes from “terrorist state” Russia as Moscow stoked fears of further retaliation with threats of more “severe” attacks. 

The heaviest bombardment of Ukraine in months, which killed 11 and wounded more than 80, came in response to an explosion at the weekend that damaged a vital bridge from Russia to the Moscow-annexed Crimean peninsula.

“Ukraine cannot be intimidated. It can only be more united. Ukraine cannot be stopped,” President Volodymyr Zelensky said in a defiant video, vowing to make the “battlefield even more painful” for Russian troops.

Kyiv said Russian forces had fired more than 80 missiles on cities across the country — including the capital — and that Russia had used Iranian drones launched from neighbouring Belarus, spurring panic and damaging energy facilities.

“Let there be no doubt,” Russia’s President Vladimir Putin said in televised comments addressed to his security council, “if attempts at terrorist attacks continue, the response from Russia will be severe.”

Kyiv’s ambassador to the United Nations denounced Russia during an urgent General Assembly meeting to discuss Moscow’s annexation of four Ukrainian regions.

“Russia has proven once again, that this is a terrorist state that must be deterred in the strongest possible ways,” said Sergiy Kyslytsya, speaking hours after the assault.

Ahead of the session, and with tensions at a boiling point, UN chief Antonio Guterres described Russia’s attacks as an “unacceptable escalation of the war,” his spokesman said.

US President Joe Biden said the strikes “demonstrate the utter brutality” of Putin’s “illegal war.”

Biden pledged to “continue providing Ukraine with the support needed to defend itself, including advanced air defence systems” during a call with Zelensky, the White House said.

Zelensky described the call as “productive” in a tweet in which he asserted air defence as “the number 1 priority” for Ukraine. 

– ‘Killing civilians’ –

Ksenia Ryazantseva, a 39-year-old language teacher, told AFP she was awoken by the blasts.

“We saw the smoke, then the cars, and then we realised we didn’t have a window anymore,” she added. “There’s no military target or anything like that here. They’re just killing civilians”.

Zelensky said the strikes aimed to take down Ukrainian energy infrastructure and regional officials across the country confirmed widespread disruption.

Russia’s defence ministry meanwhile confirmed it had targeted Ukrainian energy, military command and communications facilities, claiming the strikes had been a success and “achieved their aims”.

Kuleba said the attacks had not been “provoked” and that the onslaught was Moscow’s response to a series of embarrassing military losses in eastern Ukraine.

“Putin is desperate because of battlefield defeats and uses missile terror to try to change the pace of war in his favour,” he wrote on social media. 

With Putin’s actions in the spotlight, UN debate will open on a draft resolution denouncing what has been widely seen in the West as Russia’s illegal seizure of Ukrainian land.

The decision to bring the annexation matter before the General Assembly, where the 193 UN members have one vote each — and no one wields veto power — was taken after Russia used its veto in a Security Council meeting September 30 to block a similar proposal.

Zelensky said he had spoken with the leaders of France and Germany and urged them to “increase pressure” on Russia.

– Black smoke –

US Secretary of State Antony Blinken pledged “unwavering economic, humanitarian, and security assistance” to Ukraine as the national police service put the nationwide death toll from the Russian assault at 11.

Ukrainian officials said downtown Kyiv was hit and that a university, museums and the philharmonic building had been damaged.

An AFP journalist in Kyiv said a projectile landed near a playground and saw smoke rising from a large crater at the impact site. Trees and benches were charred by the blast and a number of ambulances were at the scene.

In the western city of Lviv, mayor Andriy Sadovyi said electricity and hot water services were disrupted after critical infrastructure was bombarded.

AFP photographers there saw plumes of black smoke rising above the town’s skyline.

Moldova, west of Ukraine, said several Russian cruise missiles targeting Ukraine had crossed its airspace, and that it had summoned Moscow’s envoy to demand an explanation.

The ex-Soviet country, which is a candidate to join the European Union, has a small breakaway region, Transnistria, which is armed and supported by Russia.

– Crimean bridge attack –

Belarusian President Alexander Lukashenko, a close ally of Putin, meanwhile claimed that Ukraine was preparing an attack on his country.

He said Russia and Belarus would “deploy” troops together, without specifying where.

The autocratic leader also accused Ukraine, alongside neighbouring Poland and Lithuania, of training Belarusian militants to carry out attacks at home.

The strikes across Ukraine came a day after Moscow blamed Kyiv for the blast that damaged a bridge linking Crimea to Russia, leaving three people dead.

The blast that hit the bridge — a symbol of the Kremlin’s 2014 annexation of Crimea — sparked celebrations by Ukrainians, although officials in Kyiv have made no direct claim of responsibility.

The 19-kilometre (12-mile) bridge is also a vital supply link between Russia and the annexed Crimean peninsula.

US airport websites hit by suspected pro-Russian cyberattacks

The websites for a number of major US airports were briefly knocked offline Monday after a cyberattack promoted by a pro-Russian hacking group.

The disruptions affected airport websites in cities such as Atlanta, Chicago, Los Angeles, New York, Phoenix and St Louis, and were carried out via distributed denial of service (DDoS) attacks, which involve taking a website offline by flooding it with traffic.

The airport websites were targeted after the pro-Russian hacking group known as “KillNet” published a list of sites and encouraged its followers to attack them.

The DDoS attacks only affected the public-facing websites of the airports, which supply flight and services information and do not have any impact on operations.

Atlanta’s Hartsfield-Jackson Airport said its website is “up and running after an incident early this morning that made it inaccessible to the public.”

“An investigation into the cause of the incident is underway,” it said. “At no time were operations at the airport impacted.”

Most of the airport websites targeted appeared to be functioning normally after being temporarily shut down.

KillNet claimed responsibility last week for attacks on a number of US state government websites, and it has taken aim at other countries opposing Russia’s invasion of Ukraine.

The US Cybersecurity and Infrastructure Security Agency (CISA) said it was “aware of reports of DDoS attacks targeting multiple US airport websites.”

“We are coordinating with potentially impacted entities and offering assistance as needed,” a CISA spokesperson said.

US airport websites hit by suspected pro-Russian cyberattacks

The websites for a number of major US airports were briefly knocked offline Monday after a cyberattack promoted by a pro-Russian hacking group.

The disruptions affected airport websites in cities such as Atlanta, Chicago, Los Angeles, New York, Phoenix and St Louis, and were carried out via distributed denial of service (DDoS) attacks, which involve taking a website offline by flooding it with traffic.

The airport websites were targeted after the pro-Russian hacking group known as “KillNet” published a list of sites and encouraged its followers to attack them.

The DDoS attacks only affected the public-facing websites of the airports, which supply flight and services information and do not have any impact on operations.

Atlanta’s Hartsfield-Jackson Airport said its website is “up and running after an incident early this morning that made it inaccessible to the public.”

“An investigation into the cause of the incident is underway,” it said. “At no time were operations at the airport impacted.”

Most of the airport websites targeted appeared to be functioning normally after being temporarily shut down.

KillNet claimed responsibility last week for attacks on a number of US state government websites, and it has taken aim at other countries opposing Russia’s invasion of Ukraine.

The US Cybersecurity and Infrastructure Security Agency (CISA) said it was “aware of reports of DDoS attacks targeting multiple US airport websites.”

“We are coordinating with potentially impacted entities and offering assistance as needed,” a CISA spokesperson said.

Weinstein sex assault trial opens in Los Angeles

Jury selection began Monday in the Los Angeles trial of disgraced Hollywood mogul Harvey Weinstein, with five alleged victims expected to take the stand during the two-month case.

The 70-year-old “Pulp Fiction” producer is already serving 23 years in jail in New York after being convicted there of a series of sex crimes.

He now faces 11 more charges, including sexual battery by restraint, forcible rape and forcible oral copulation against women in Beverly Hills and Los Angeles hotels between 2004 and 2013.

If convicted, Weinstein — who has pleaded not guilty to all counts — could be sentenced to more than 100 additional years behind bars.

A crowd of journalists gathered Monday outside the downtown Los Angeles court where the one-time Hollywood power player had been ordered to appear.

Widespread sexual abuse and harassment allegations against Weinstein exploded in October 2017, and his conviction in New York in 2020 was a landmark in the #MeToo movement.

In June, he lost a bid to have that sex crimes conviction overturned. He has also been separately charged by British prosecutors with the 1996 indecent assault of a woman in London.

In total, nearly 90 women, including Angelina Jolie, Gwyneth Paltrow and Salma Hayek, have accused Weinstein of harassment or assault.

– Power players –

The Los Angeles Times on Monday quoted Weinstein attorney Mark Werksman as saying there would be testimony from well-known figures.

“Some of these victims, people will recognize them. Some of these women, you’ve seen them in movies, they’ve been in ad campaigns, a couple of them have achieved some success as actresses or models,” Werksman said, according to the paper.

The Times said one of the five accusers — all of whom will be known formally as “Jane Doe” — would be Jennifer Siebel Newsom, wife of California Governor Gavin Newsom.

“Like many other women, my client was sexually assaulted by Harvey Weinstein at a purported business meeting that turned out to be a trap,” her lawyer Elizabeth Fegan told the paper. 

“She intends to testify at his trial in order to seek some measure of justice for survivors, and as part of her life’s work to improve the lives of women.”

Siebel Newsom has previously written about Weinstein’s behavior in an essay published in 2017, but did not give details about the alleged assaults.

Weinstein says that all his sexual encounters were consensual, and his lawyer told reporters that the Los Angeles accusations “stem from many years ago” and cannot “be substantiated or corroborated by any forensic evidence” or “credible witnesses.”

The New York Film Festival this week will premiere “She Said,” a film about the 2017 newspaper investigation into Weinstein that sparked the demise of his movie empire.

Before the allegations against him emerged, the producer and his brother Bob were Hollywood’s ultimate power players.

They co-founded Miramax Films, a distribution company named after their mother Miriam and father Max, in 1979. It was sold to Disney in 1993.

Their hits included 1998’s “Shakespeare in Love,” for which Weinstein shared a best picture Oscar. Over the years, Weinstein’s films received more than 300 Oscar nominations and 81 statuettes.

US airport websites hit by suspected pro-Russian cyberattacks

The websites for a number of major US airports were briefly taken offline Monday after a cyberattack promoted by a pro-Russian hacking group.

The distributed denial of service (DDOS) attacks hit the airport websites of several major US cities including Atlanta, Chicago, Los Angeles, New York, Phoenix and St Louis.

A DDOS attack involves knocking a website offline by flooding it with traffic.

The airport websites were targeted after the pro-Russian hacking group known as “KillNet” published a list of sites and encouraged its followers to attack them.

The DDOS attacks only affected the public-facing websites of the airports, which supply flight and services information and do not have any impact on operations.

Atlanta’s Hartsfield-Jackson Airport said its website is “up and running after an incident early this morning that made it inaccessible to the public.”

“An investigation into the cause of the incident is underway,” it said. “At no time were operations at the airport impacted.”

Most of the airport websites targeted appeared to be functioning normally after being temporarily knocked offline.

KillNet claimed responsibility last week for attacks on a number of US state government websites, and it has taken aim at other countries opposing Russia’s invasion of Ukraine.

There was no immediate comment from the US Cybersecurity and Infrastructure Security Agency (CISA).

US airport websites hit by suspected pro-Russian cyberattacks

The websites for a number of major US airports were briefly taken offline Monday after a cyberattack promoted by a pro-Russian hacking group.

The distributed denial of service (DDOS) attacks hit the airport websites of several major US cities including Atlanta, Chicago, Los Angeles, New York, Phoenix and St Louis.

A DDOS attack involves knocking a website offline by flooding it with traffic.

The airport websites were targeted after the pro-Russian hacking group known as “KillNet” published a list of sites and encouraged its followers to attack them.

The DDOS attacks only affected the public-facing websites of the airports, which supply flight and services information and do not have any impact on operations.

Atlanta’s Hartsfield-Jackson Airport said its website is “up and running after an incident early this morning that made it inaccessible to the public.”

“An investigation into the cause of the incident is underway,” it said. “At no time were operations at the airport impacted.”

Most of the airport websites targeted appeared to be functioning normally after being temporarily knocked offline.

KillNet claimed responsibility last week for attacks on a number of US state government websites, and it has taken aim at other countries opposing Russia’s invasion of Ukraine.

There was no immediate comment from the US Cybersecurity and Infrastructure Security Agency (CISA).

Greece, Turkey set tensions aside for direct maritime link

Setting aside longstanding strategic rivalry, Greece and Turkey on Monday inaugurated a “friendship line” ferry link between Thessalonika in northern Greece and the western Turkish port of Izmir.

Greek-based shipping company Levante Ferries announced the MV “Smyrna di Levante” vessel had started passenger and freight services between the two countries, the first direct maritime link between the regional rivals.

The company said the vessel carrying up to 948 passengers and as many as 300 vehicles would both promote the neighbours’ commercial interests and deepen ties. 

The ship began its maiden test voyage from Thessalonika at 5.15 pm (1414 GMT) on Monday with 35 people aboard — mainly Levante employees — bound for Izmir some 14 hours away.   

The ferry firm has over the past three years invested a reported 16 million euros in the three-times weekly route, the first direct major link between continental Greece and Turkey.

Some eastern Greek islands off the Turkish coast offer more ad hoc trips to nearby Turkish ports courtesy of small boats.

“We want to link Europe and Asia (and) benefit from market demand” to “promote maritime and tourist transport,” said Greek operator Yannis Dimitriadis.

Greece and Turkey have endured long bouts of sometimes bitter rivalry with a series of maritime border disputes raising tensions amid Turkish accusations its fellow NATO member seeks to militarise more than a dozen of its islands in the Aegean Sea.

Athens has pushed back against Ankara’s demands that it desist from doing so.

Last week saw a further spat at an informal EU gathering in Prague when Greek Prime Minister Kyriakos Mitsotakis left an official dinner during an address by Turkish President Recep Tayyip Erdogan. 

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