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Chinese shares fall on Covid threat after two-day rally

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Chinese shares fall on Covid threat after two-day rally

Chinese language shares fell on Friday after two days of searing beneficial properties following supportive coverage bulletins from Beijing, with the specter of elevated Covid disruption and the Ukraine warfare weighing on markets.

Hong Kong’s benchmark Grasp Seng index was down 2.4 per cent, whereas the CSI 300 index of Shanghai- and Shenzhen-listed shares was off nearly 1 per cent.

Whereas Chinese language markets appeared much less uneven than at first of the week, when panic over financial progress and geopolitical tensions drove two days of intense falls, analysts warned that volatility might return.

“Market sentiment is fragile and there might nonetheless be volatility forward,” stated Bruce Pang, head of analysis at China Renaissance. Pang stated that solely when unfavorable elements in China — together with renewed Covid lockdowns, regulatory crackdowns and geopolitical tensions — begin fading can “buyers’ sentiment and confidence be regathered and solidified”.

Equities elsewhere in Asia have been combined, as Japan’s benchmark Topix edged up 0.3 per cent and Australia’s S&P/ASX 200 rose 0.4 per cent. South Korea’s Kospi was flat.

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The muted strikes for many Asia-Pacific markets recommended upward momentum was fading after a strong shut on Wall Avenue, the place the S&P 500 ended Thursday’s session up 1.2 per cent on the highest degree in a month and the tech-focused Nasdaq Composite gained 1.3 per cent.

Futures markets indicated European shares would open decrease, with the Euro Stoxx 50 set to fall 0.5 per cent, whereas the S&P 500 was anticipated to shed 0.6 per cent after US secretary of state Antony Blinken poured chilly water on expectations of a diplomatic decision to the warfare between Ukraine and Russia.

“The actions that we’re seeing Russia take each single day, just about each minute of every single day, are in whole distinction to any critical diplomatic effort to finish the warfare,” Blinken stated.

In commodities markets, oil costs rose as buyers weighed the affect of tighter financial coverage.

Brent crude, the worldwide benchmark, rose 2.4 per cent on Friday to $109.18 a barrel, whereas US marker West Texas Intermediate climbed 2.7 per cent to $105.73.

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Each benchmarks closed greater than 8 per cent increased on Thursday following a warning from the Worldwide Power Company, which stated a fall in Russian crude provide to the worldwide market threatened to grow to be the “largest provide disaster in a long time”.

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Special Counsel Report Says Trump Would Have Been Convicted in Election Case

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Special Counsel Report Says Trump Would Have Been Convicted in Election Case

Jack Smith, the special counsel who indicted President-elect Donald J. Trump on charges of seeking to cling to power after losing the 2020 election, said in a final report released early Tuesday morning that he believed the evidence was sufficient to convict Mr. Trump in a trial if his success in the 2024 election had not made it impossible for the prosecution to continue.

“The department’s view that the Constitution prohibits the continued indictment and prosecution of a president is categorical and does not turn on the gravity of the crimes charged, the strength of the government’s proof or the merits of the prosecution, which the office stands fully behind,” Mr. Smith wrote.

He continued: “Indeed, but for Mr. Trump’s election and imminent return to the presidency, the office assessed that the admissible evidence was sufficient to obtain and sustain a conviction at trial.”

The Justice Department delivered the 137-page volume — representing half of Mr. Smith’s overall final report, with the volume about the classified documents case still confidential — to Congress just after midnight Tuesday morning.

The report, obtained by The New York Times, amounted to an extraordinary rebuke of a president-elect, capping a momentous legal saga that saw the man now poised to regain the powers of the nation’s highest office charged with crimes that struck at the heart of American democracy. And although Mr. Smith resigned as special counsel late last week, his recounting of the case also served as a reminder of the vast array of evidence and detailed accounting of Mr. Trump’s actions that he had marshaled.

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The partial release came only a day after the judge in Florida who oversaw Mr. Trump’s other federal case — the one accusing him of mishandling classified documents — issued a ruling allowing a portion of the material to be made public. But the judge, Aileen M. Cannon, who was appointed by Mr. Trump himself, also barred the Justice Department from immediately releasing — even to Congress — a second volume of the report concerning the documents case.

For more than a week, Mr. Trump’s lawyers — who were shown a draft copy of Mr. Smith’s report in advance of its release — denounced it as little more than an “attempted political hit job which sole purpose is to disrupt the presidential transition.” At least one Trump ally, the former Justice Department official Jeffrey Clark, has come forward to complain that he, too, might be implicated in the report as an unindicted co-conspirator in the election interference case.

In August 2023, Mr. Smith charged Mr. Trump in Federal District Court in Washington with three intersecting conspiracy counts accusing him of plotting to overturn his loss in the 2020 election. Mr. Smith also filed a separate indictment in Florida, charging Mr. Trump with illegally holding on to classified documents after he left office and conspiring with two co-defendants to obstruct the government’s repeated effort to retrieve them.

But after Mr. Trump won the 2024 election, Mr. Smith dropped the cases because of a Justice Department policy that prohibits prosecuting sitting presidents. Under a separate department regulation, he turned in a final report about both cases — one volume on each — to Attorney General Merrick B. Garland.

Last week, the Justice Department said Mr. Garland planned to hold off on issuing the volume about the classified documents case until all legal proceedings related to Mr. Trump’s two co-defendants were completed.

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Lawyers for the co-defendants, Walt Nauta and Carlos De Oliveira, fought the release by obtaining an initial injunction last week from Judge Cannon, who had dismissed the classified documents case last summer.

In her order on Monday, Judge Cannon told the defense and prosecution to appear before her on Friday in Federal District Court in Fort Pierce, Fla., to argue over the department’s plan to release the classified-documents volume to Congress.

This is a developing story. Please check back for updates.

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Los Angeles braces for ‘explosive fire growth’ as high winds near

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Los Angeles braces for ‘explosive fire growth’ as high winds near

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Los Angeles was braced for near “hurricane force” winds on Monday that weather forecasters said could fan the devastating wildfires that have swept across southern California as damage estimates mounted.

As firefighters struggled to contain the deadly blazes that continued to rage in the suburbs of the US’s second-largest city, the National Weather Service issued a “red flag alert” warning amid deteriorating conditions.

Winds of up to 75 miles an hour were expected to hit the region from Monday night until Wednesday morning, according to the NWS, combining with extremely dry conditions to create “critical fire weather”.

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“The National Weather Service is predicting close to hurricane-force level winds, and so we’re making urgent preparations,” LA mayor Karen Bass said on Monday. “My top priority, and the priority of everyone else, is to do everything we can to protect lives as these winds approach.”

Authorities have since last Tuesday battled blazes that have burnt more than 40,000 acres of land. California governor Gavin Newsom warned the fires could become the costliest disaster in US history as he clashed with president-elect Donald Trump over the state’s response.

The cause of the fires has not yet been determined, but several lawsuits were filed against utility Southern California Edison on Monday alleging it had failed to properly shut off power lines despite warnings, leading to the outbreak of the Eaton fire.

Shares in its parent Edison International fell 11.9 per cent on Monday.

A Southern California Edison spokesperson said: “SCE understands that a lawsuit related to the Eaton fire has been filed but has not yet been served with the complaint,” adding that the company “will review the complaint when it is received. The cause of the fire continues to be under investigation.”

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Insurance stocks were also hit as anticipated damages mounted. Wells Fargo analysts estimated insurance losses could top $30bn and potentially reach as much as $40bn. On Friday, JPMorgan analysts had pencilled in an industry-wide hit of $20bn, a level that would already have been the largest in the state’s history.

On Monday, Newsom said he was proposing $2.5bn in additional emergency funding to aid LA in the recovery, clean-up and reopening of schools. “California is organising a Marshall Plan to help Los Angeles rebuild faster and stronger,” he said in a statement. The funding will need to be approved by the state legislature.

The largest of the outbreaks, the Pacific Palisades fire, was just 14 per cent contained late on Monday, prompting fears that strong gusts in the coming days would reverse progress in combating the blazes.

The weather service warned that “extreme fire danger” would continue until Wednesday and said that the category of alert in place — a “particularly dangerous situation red flag warning” — was reserved for “extreme of the extreme fire weather scenarios”.

“In other words, this set-up is about as bad as it gets,” the NWS warned as it cautioned powerful winds could create “explosive fire growth”.

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The death toll hit 24 on Monday, officials said, and was expected to climb as authorities combed through the wreckage in search of missing people.

Firefighters work to clear a firebreak on a hillside covered with retardant in an attempt to contain the Palisades fire © Ringo Chiu/Reuters

The disaster has spilled over into the political arena, with Trump on Sunday attacking the state’s authorities for failing to halt the destruction. “The fires are still raging in L.A. The incompetent pols have no idea how to put them out,” he posted on his Truth Social network.

The incoming Republican president has accused California’s governor, a Democrat, of depleting water reserves to protect an endangered species of fish, and of refusing to sign a “water restoration declaration”. Newsom’s office said no such declaration exists.

“That mis- and disinformation I don’t think advantages or aids any of us,” Newsom told NBC’s Meet the Press on Sunday, noting he had invited the president-elect to visit affected areas but had yet to receive a response. “Responding to Donald Trump’s insults, we would spend another month.”

Meanwhile, city officials warned against price gougers who have increased prices for rental properties as thousands of people fled their homes.

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LAist, a local news site, found a Zillow listing for a furnished home in Bel Air going for $29,500 a month — 86 per cent higher than in September.

Cartography by Steven Bernard

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What Causes California Fires? Power Lines Can Be a Contributor.

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What Causes California Fires? Power Lines Can Be a Contributor.

Investigators are still working to identify what caused the spate of fires that ignited around Los Angeles last week, but residents are concerned that electrical infrastructure may have sparked at least one of them.

Since 1992, more than 3,600 wildfires in California have been related to power generation, transmission and distribution, according to data from the U.S. Forest Service. Some of the most destructive fires have been traced back to problems with utility poles and power lines.

Extent of power line fires near Los Angeles

Roughly a dozen power line fires have burned more than 200,000 acres in areas northwest of the city since 1970.

Source: CalFire

Extents of recent fires, as of Jan. 13, are outlined in black.

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By The New York Times

CalFire releases data on past large wildfires and determines their causes in different natural and human-related categories, such as lightning or arson. The agency lists more than 12,500 fires since the late 1800s, though the causes of more than half are unknown or unidentified.

Lightning and use of equipment are among the most common known causes, but over the past few decades, the share of fires known to be caused by power infrastructure has grown across the state.

The 20 most destructive California wildfires

At least eight of California’s most destructive wildfires had power-related causes. Those fires are shown in bold.

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Source: CalFire

By The New York Times

Residents of Altadena, Calif., sued Southern California Edison on Monday, saying the utility’s electrical equipment set off the Eaton fire, which has burned more than 13,000 acres and 5,000 structures in the city and neighboring areas. The company has said it is investigating the fire’s origin.

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Power distribution lines were found to have caused some of California’s largest-ever fires in recent years.

The Thomas fire in 2017 was started when high winds forced Southern California Edison’s power lines to collide, a situation known as “line slap.” Burning material fell to the ground in the Upper Anlauf Canyon, about 35 miles from the current Palisades fire, and the resulting fire burned for almost 40 days.

The 2018 Camp fire, in Northern California, started when an electrical arc between one of Pacific Gas & Electric’s power lines and a steel tower sent molten metal onto the underlying vegetation. That fire claimed more than 80 lives and destroyed over 18,000 structures.

In the summer of 2021, California’s largest single-source wildfire, the Dixie fire, started when a tree made contact with several of PG&E’s distribution lines near the Cresta Dam in Northern California. Electricity continued flowing in one of the lines, which started the fire, and nearly a million acres across four counties burned.

California isn’t the only state dealing with power-related wildfires in recent years. Texas’ largest wildfire, the Smokehouse Creek fire, burned over a million acres in 2024. Xcel Energy accepted responsibility for the fire after investigators found that high winds had broken a utility pole, causing a power line to fall and ignite the dried grasses below.

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Similar situations have caused wildfires in Oregon as well. The 2020 Labor Day fires destroyed thousands of homes and killed at least nine people, in part, after power wasn’t shut down during high winds.

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