The Full Belmonte, 1/27/2024
THE LATEST NEWS
E. Jean Carroll leaving the courthouse in Manhattan yesterday. Yuki Iwamura/Associated Press
“A Manhattan jury ordered Donald Trump to the pay the writer E. Jean Carroll $83.3 million for defaming her after she accused him of rape.” [New York Times]
“The U.N.’s highest court ordered Israel to let more aid into Gaza and prevent genocidal acts there, but did not call for a cease-fire. The court has no mechanism to enforce its rulings.” [New York Times]
“UNRWA, the U.N. agency that aids Palestinians, fired 12 workers whom Israel accused of taking part in Hamas’s Oct. 7 attack. The U.S. cut off funding to the agency, which is investigating the claims.” [New York Times]
“Speaker Mike Johnson is trying to kill a bipartisan border-security bill, saying the deal senators are negotiating would most likely be ‘dead on arrival’ in the House.” [New York Times]
“Aryna Sabalenka won the Australian Open for a second time with a decisive, straight sets triumph over Zheng Qinwen.” [New York Times]
“Inflation continued to cool last month, according to the Federal Reserve’s preferred measure.” [New York Times]
“Elon Musk dismantled Twitter’s system for flagging false claims about voting. Now he’s spreading election misinformation with help from the site’s algorithm.” [New York Times]
“This week provided more proof that the US economy is steaming ahead in the face of more than a year of gloomily incorrect predictions. Economic growth in the fourth quarter trounced forecasts and gross domestic product increased 2.5% for the year. You may recall that 2023 opened with economic experts jostling for air time to warn the public of a guaranteed American recession. But the year ended with a US expansion rate that added about a South Korea’s worth of GDP to the world. On Friday, there was even more good news for the US on the inflation front. The Federal Reserve’s preferred gauge of underlying price pressures, the so-called core personal consumption expenditures price index, cooled to an almost three-year low in December, even with robust holiday spending. That report capped a year in which inflation retreated at a much faster rate than the Fed (and certainly Wall Street economists) anticipated, all while a sturdy job market kept powering consumer spending. You could call it the Teflon economy.
Even stubborn consumer sentiment is turning sunnier, which is good news for US President Joe Biden as he seeks a second term. And though some on Team Recession are saying their promised downturn is just delayed, others have conceded defeat. Some of those who argued that—as had historically been the case—inflation could not be tamed without a sharp increase in joblessness are shifting their stance. And while investors and average Americans are eager for the Fed to unwind some of its interest-rate hikes, the central bank is expected to keep rates at a two-decade high when they meet next week. While hailing last year’s economic performance as ‘remarkable,’ economists including Mohamed El-Erian predict growth this year could moderate as Americans’ savings dwindle and new supply chain disruptions—such as those vexing Red Sea transport—bubble up.” [Bloomberg]
“Former South Carolina Governor Nikki Haley is staying in the race for the Republican nomination with a little help from Wall Street. That’s not making Donald Trump happy, as the twice-impeached former president threatens to cut off any donor who gives to his rival, at whom he has leveled thinly-veiled racist and misogynist insults. Haley meanwhile has been calling Trump’s mental health into question, given some very public fumbles on his part. While Trump’s campaign organization seems more professional than last time, it’s him the Biden campaign and its backers seem to want to face. Still, the US president shook up his election staff this week as the season begins in earnest. The candidates are now focused on the primary in South Carolina, where Haley hopes to pick up enough hometown support to close the gap with her opponent. Trump however faces some distractions, namely the $83.3 million a jury ordered him to pay in a defamation case on Friday and four felony prosecutions for everything from accounting fraud to attempted subversion of the 2020 election.” [Bloomberg]
“The economic picture has been quite different in the world’s second-largest economy. China’s $6 trillion stock market rout reveals a painful truth for Xi Jinping’s government: People are sinking under the weight of a years-long real estate bust and the country’s worst streak of deflation in some 25 years. Exports declined in 2023, joblessness among young people has soared and local governments are saddled with too much debt. This month’s heavy selloff in China’s benchmark CSI 300 Index brings its plunge to a brutal 40% over the past three years. A potential government rescue package backed by about 2 trillion yuan ($278 billion), may indicate authorities are growing anxious to stem the rout. As the US puts more space between the size of its economy and that of China, Beijing may be looking over its own shoulder: India’s stock market capitalization overtook Hong Kong’s for the first time.” [Bloomberg]
“Israel has undergone a profound transformation since the Oct. 7 attacks, temporarily putting aside its focus on startups and wealth (and domestic politics) in favor of fostering a wartime culture built on patriotism and unity. But the war in Gaza is starting to hurt its economy. In the Hague, the United Nations’ top court told Benjamin Netanyahu’s government it must act to prevent the killing and harm to innocent Palestinians, but stopped short of demanding an immediate cease-fire in Gaza. And as the related conflict in the Red Sea and Yemen intensifies, piracy off Somalia’s coast is increasing as well. The US hopes a fresh hostage deal between Israel and Hamas will create the space for talks to achieve a more lasting regional peace agreement.” [Bloomberg]
Palestinians process animal fodder to make bread due to a lack of wheat flour in Gaza City on Jan. 24. Photographer: Anadolu
”U.S. Halts Funding for U.N. Agency Amid Claims Staff Took Part in Oct. 7 Attacks - The United Nations agency for Palestinian refugees opened an investigation into allegations that several employees were linked to the Oct. 7 attacks in Israel.” [Wall Street Journal]
“Aid thwarted. Kenya’s high court blocked the deployment of 1,000 police officers to Haiti on Friday. The U.N.-backed deployment was intended to be part of a multinational security mission to help quell surging gang violence in the Latin American country. Around 300 armed groups currently control roughly 80 percent of Haiti’s capital, killing nearly 8,500 people last year.
Kenyan opponents of the proposed deployment accused Kenyan President William Ruto of violating the nation’s constitution by securing international approval for the deployment before he obtained backing from parliament. Although the court determined on Friday that only military deployments and not police missions require parliamentary consent, it said the deployment was unconstitutional under other grounds. Kenya’s judiciary ruled that the force was ‘illegal’ because Nairobi had no ‘reciprocal arrangement’ in place with Port-au-Prince. Ruto’s administration is expected to appeal the decision.” [Foreign Policy]
“Pacific drama. Residents of Tuvalu went to the polls on Friday to vote in national elections. International climate change reform was at the forefront of candidates’ platforms. The Pacific island’s capital, Funafuti, is at risk of being flooded with rising sea levels by 2050, with most of Tuvalu expected to be underwater by 2100, according to the United Nations Development Programme.
Where candidates differed, though, was on Taiwan policy. Tuvalu is one of three Pacific island countries to still recognize Taiwan as a sovereign nation. Taipei accused China on Thursday of trying to influence the election and ‘seize our diplomatic allies.’ Beijing has repeatedly urged Funafuti to ‘follow the trend of the times’ and adhere to the “One China” policy. Last week, Nauru became the latest Pacific island government to sever ties with Taiwan in favor of China.” [Foreign Policy]
“Stopping traffic. French farmers established roadblocks along one of the main highways leading into Paris on Friday to protest government efforts to lower food prices amid high inflation. They accused the French government of not doing enough to support farmers’ revenue. Prime Minister Gabriel Attal traveled on Friday to calm demonstrators in the Haute-Garonne region, where he promised to prioritize their needs by simplifying administrative red tape and dropping plans to reduce tax breaks on diesel fuel, among other measures.
Also on Friday, the French government said it would proceed with implementing a controversial immigration law despite France’s Constitutional Court striking down more than one-third of the policy’s measures either partly or in full. Even without the rejected measures, the new law will tighten the country’s immigration rules. For instance, foreigners with criminal convictions can now be deported despite living in France legally. Left-wing parties have accused President Emmanuel Macron of assuaging far-right demands ahead of European Parliament elections in June.” [Foreign Policy]
“Tesla narrowly missed earnings estimates and warned expansion will be be lower this year, sending the electric vehicle-maker’s shares plunging. The company spent last year cutting prices to boost sales, which ate into profits. And after previously envisioning a truly driverless car, Apple is now working on an EV with more limited features. The company has pushed back its launch from 2026 to 2028 at the earliest.” [Bloomberg]
“Eli Lilly could have been first to the projected $80 billion weight-loss drug market, and now it wants to make up for lost time. Its newest version of GLP-1 drugs, Zepbound, could take a big bite out of a market currently dominated by the success of Novo Nordisk’s Ozempic. Amid rising obesity rates and increasing demand for weight-loss solutions, valuations for both pharmaceutical giants are soaring, and there’s a lot of money to be made. On the Bloomberg Originals mini-documentary Pharma’s Growing Weight-Loss Bonanza, we explore how these new drugs are remaking the industry and society.” [Bloomberg]
Watch Pharma’s Growing Weight-Loss Bonanza by Bloomberg Originals
Taylor Swift at the Golden Globes on Jan. 7. Photo: Michael Tran/AFP via Getty Images
“Explicit deepfakes of Taylor Swift went viral on X, adding new fuel to fears that harmful AI-created content will be nearly impossible to contain, The Verge writes.” [Axios]
GAME OF THE WEEKEND
Jared Goff and Dan Campbell. Abbie Parr/Associated Press
“Detroit Lions vs. San Francisco 49ers, N.F.C. Championship: Let’s get this out of the way, because you’re going to hear it a lot on Sunday: The Lions have never been to the Super Bowl. Three years ago, when the team traded away its franchise quarterback, then went 3-13-1, it didn’t appear that streak would be broken anytime soon. But Dan Campbell, Detroit’s head coach, has turned this team around. The Lions defense is the best in the league at stopping the run, while the offense excels at running the ball. And though he isn’t flashy, Jared Goff has been the most accurate passer among all quarterbacks this postseason. Suddenly, a Super Bowl seems within reach. Sunday at 6:30 p.m. Eastern on Fox [New York Times]
More museums shutter Native American exhibits
American Museum of Natural History in New York City. Photo: Roberto Machado Noa/LightRocket via Getty Images
“New York City's American Museum of Natural History announced today that it is closing two major exhibit halls containing Native American artifacts.
The big picture: Museums around the country are adjusting how they display Native American artifacts to comply with new federal rules, Axios' Ivana Saric writes.
The new rules, which took effect this month, require museums and institutions to obtain tribal consent before displaying Native American remains and artifacts.
Chicago's Field Museum, the Cleveland Museum of Art, and the Denver Museum of Nature and Science also have recently closed or covered up displays of Native American artifacts.” [Axios]
THE WEEK IN CULTURE
Greta Gerwig, the director of “Barbie,” and Margot Robbie, the film’s star. Evan Agostini/Invision, via Associated Press
“‘So much more than Kenough’: Hillary Clinton weighed in on Greta Gerwig and Margot Robbie’s Oscar nomination snubs for best director and best actress.” v
“‘I didn’t expect that I would cry the way that I did’: Lily Gladstone spoke with The Times about her Oscar nomination for her role in “Killers of the Flower Moon.”” [New York Times]
“An artist sued the Museum of Modern Art, accusing officials of failing to take corrective action after several visitors groped him during a nude performance for a Marina Abramovic piece in 2010.” [New York Times]
“Anne Hathaway walked out of a Vanity Fair photo shoot after learning of a Condé Nast union work stoppage, Variety reports.” v
“Melanie, the husky-voiced singer and songwriter who was just 22 when she charmed the crowd at Woodstock in 1969, died at 76.” [New York Times]
“French prosecutors dropped a sexual assault lawsuit against Gérard Depardieu because the statute of limitations had passed. A French actress had accused him of groping her in 2007.” [New York Times]
“Vince McMahon resigned as chairman of World Wrestling Entertainment after a former employee sued him for sexual assault and trafficking. McMahon called the accusations a ‘distortion of the truth.’” [New York Times]
World's largest cruise ship sets sail
The Icon of the Seas in PortMiami. Photo: Pedro Portal/El Nuevo Herald/Tribune News Service via Getty Images
“The world's largest cruise ship, Royal Caribbean's Icon of the Seas, is set to depart from Miami tomorrow for its first voyage with paying passengers, Axios Miami's Martin Vassolo reports.
The 250,800-ton ship, which was christened Tuesday by Lionel Messi, is the size of a small city and is divided into eight ‘neighborhoods,’ including a park with over 30,000 real plants.
There are six water slides, seven pools, and more than 40 restaurants, bars and lounges.” [Axios]
Guest cabins overlook "Central Park" on the Icon of the Seas. Photo: Eva Marie Uzcategui/Bloomberg via Getty Images