Connect with us

News

Live news: European stocks close lower after disappointing China stimulus

Published

on

Live news: European stocks close lower after disappointing China stimulus

Federal Reserve officials are due to speak later about the economic outlook, while Joe Biden will be out campaigning.

Fedspeak: Several Federal Reserve officials are scheduled to speak today. President of the Atlanta Fed Raphael Bostic will deliver remarks on the economic outlook at an event in Atlanta, while Boston Fed president Susan Collins will address a conference in the Massachusetts city. The Fed’s vice-chair, Philip Jefferson, will speak at Davidson College, North Carolina.

Biden-Harris: President Joe Biden will travel to Milwaukee, Wisconsin, to deliver remarks on the creation of jobs, followed by a trip to Philadelphia, Pennsylvania, to take part in a campaign event for Senator Bob Casey. Vice-president and Democratic presidential nominee Kamala Harris will be in New York, filming multiple TV interviews.

Google: The US Department of Justice is expected to impose corrective measures on Google owner Alphabet after a federal judge ruled that Google had maintained an illegal monopoly on search.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

News

The Supreme Court appears to have found a gun regulation it actually likes

Published

on

The Supreme Court appears to have found a gun regulation it actually likes

Few things are as chaotic as this Supreme Court’s gun cases.

Just last June, the Court’s Republican majority legalized “bump stocks,” devices that effectively convert ordinary semi-automatic weapons into machine guns. The Court’s landmark Second Amendment decision in New York State Rifle & Pistol Association v. Bruen (2022) requires courts to strike down any gun law that is not “consistent with this Nation’s historical tradition of firearm regulation,” a test so confusing that more than a dozen judges have published judicial opinions begging the justices to explain what, exactly, Bruen means.

Yet, while this Court’s approach to guns is frequently hostile to gun laws, a majority of the justices appeared to meet a gun regulation on Tuesday they are actually willing to uphold.

Tuesday morning’s oral argument in Garland v. VanDerStok involves “ghost guns,” ready-to-assemble kits that can easily be used to build a fully operational firearm. These kits appear to exist to evade two federal laws, one of which requires guns to have serial numbers that can be used to track them if they are used in a crime, and the other which requires gun buyers to receive a background check before they can make that purchase.

Under federal law, the background check and serial number requirements apply to “any weapon … which will or is designed to or may readily be converted to expel a projectile by the action of an explosive.” They also apply to “the frame or receiver of any such weapon,” the skeletal part of a gun that houses other components, such as the barrel or firing mechanism.

Advertisement

Ghost gun kits seek to evade this law by selling a kit with an incomplete frame or receiver, though it is often trivially easy to convert this incomplete part into a fully operational one. Some kits can be turned into a working gun after the buyer drills a single hole in the frame or receiver. Others require the user to sand off a single plastic rail.

The most right-wing appeals court in the federal system, the United States Court of Appeals for the Fifth Circuit, concluded that a single missing hole is enough to exempt a gun from regulation. Frames missing a hole, that court claimed, are “not yet frames or receivers.” The Fifth Circuit also argued that ghost gun kits cannot “readily be converted” into a working gun because this phrase “cannot be read to include any objects that could, if manufacture is completed, become functional at some ill-defined point in the future” — even though some ghost gun kits can be converted into a firearm in a matter of minutes.

In any event, at least five members of the Court — and possibly one or two more — appeared to reject the Fifth Circuit’s reasoning on Tuesday. All three members of the Court’s Democratic minority seemed like clear votes for the government, which is arguing ghost guns need to be subject to the same rules as any other gun, as did Chief Justice John Roberts, who barely spoke during Tuesday’s argument, and who spent the bulk of his question time seeming to mock Peter Patterson, the lawyer for the ghost gun manufacturers.

Meanwhile, Justice Amy Coney Barrett, a Trump appointee, seemed particularly unconvinced by Patterson’s arguments, at one point telling him that a key part of his proposed legal framework “seems a little made up.”

If these five justices hang together against ghost guns, that won’t be a particularly unexpected plot twist. This same case already reached the Court in 2023 on the justices’ “shadow docket,” a mix of emergency motions and other issues that the Court deals with on an expedited basis. The first time VanDerStok reached the Court, it voted 5-4 (with Roberts and Barrett joining the Democrats) to temporarily leave in place a federal rule establishing that ghost guns are regulated like any other firearm.

Advertisement

Now, the question is whether that temporary decision will be made permanent. After Tuesday, it appears likely that it will.

VanDerStok turns on Barrett’s definition of an “omelet”

Tuesday’s argument started to go off the rails for the ghost gun makers before Patterson even stepped up to the podium.

Early in the argument, while Solicitor General Elizabeth Prelogar was making the government’s case, Justice Samuel Alito asked her a series of hypotheticals about incomplete objects. Is a pen and a blank pad of paper a “grocery list?” Does a bunch of uncooked eggs, ham, and peppers constitute an “omelet?” Alito’s point appeared to be that, just like untouched ingredients don’t constitute an “omelet,” an incomplete firearm is not a gun.

But Barrett seemed unconvinced. Almost immediately after Alito finished grilling Prelogar, Barrett asked about a slightly different hypothetical. What if someone purchased an omelet kit from Hello Fresh, a service that delivers ready-to-cook meal kits to people’s homes. Barrett’s point was pretty clear: While a bunch of uncooked ingredients may not always constitute an “omelet,” the answer is different when someone buys a kit whose sole purpose is to be put together into an omelet.

Advertisement

The same rule, Barrett suggested, should apply to ghost gun kits.

Roberts, meanwhile, was more direct than Barrett. “What is the purpose of selling a receiver without the holes drilled in it?” the Chief Justice asked Patterson. In response, Patterson claimed, somewhat implausibly, that people may buy a ghost gun kit because they enjoy the experience of building a gun much like some hobbyists enjoy working on their own car.

But Roberts didn’t buy this argument at all. “Drilling a hole or two,” he dryly responded to Patterson, “I would think doesn’t give the same sort of reward that you get from working on your car on the weekend.”

Later in the argument, after Prelogar was back at the podium, she stuck the knife in Patterson’s argument. Federal law, she noted, doesn’t ban ghost gun kits, it merely requires ghost gun sellers to follow the same background check and serial number laws as any other gun seller. So, if there were a market for law-abiding hobbyists who want to drill a couple holes before they fire their gun, those hobbyists could still get a ghost gun if they submitted to a background check.

But what actually happened is, once the government issued a rule stating that ghost guns are subject to the same laws as any other gun, the market for this product dried up. Turns out, hobbyists weren’t interested in buying almost-complete guns with missing holes.

Advertisement

The biggest wild card in the case is Justice Brett Kavanaugh, who revealed that he voted in favor of ghost guns in 2023 because he was concerned that a gun seller who was ignorant of the law might accidentally sell an unregulated kit without realizing it was illegal to do so and then be charged with a crime.

But, as Prelogar told Kavanaugh, a gun seller can only be charged with a crime if they “willfully” sell a gun without a serial number or if they knowingly sell a gun without a background check. So Kavanaugh’s fears appear unfounded.

Will that be enough to bring Kavanaugh into the government’s camp? Unclear. But, ultimately, Kavanaugh is likely to be the sixth vote against ghost guns if he does flip. After Tuesday, it does seem like there are five solid votes for the proposition that ghost guns are subject to the same laws as any other firearm.

Advertisement
Continue Reading

News

Chinese stock rally cools after Beijing holds off on fiscal stimulus

Published

on

Chinese stock rally cools after Beijing holds off on fiscal stimulus

Unlock the Editor’s Digest for free

Chinese shares jumped upon reopening after a weeklong holiday on Tuesday but officials stopped short of unveiling more fiscal stimulus measures, limiting further gains after a blistering market rally.

Investor expectations had built up that President Xi Jinping’s economic planners would on Tuesday detail their plans for greater fiscal spending to complement a monetary stimulus that propelled Chinese equities to their best week since 2008.

Zheng Shanjie, chair of the National Development and Reform Commission, China’s state economic planner, told reporters at a press conference in Beijing that he had “full confidence” the economy would reach its official full-year growth target of about 5 per cent.

Advertisement

However, markets were disappointed by the lack of significant new fiscal spending announcements from the NDRC, analysts said.

The blue-chip CSI 300 index of Shanghai- and Shenzhen-listed stocks opened 10.8 per cent higher on Tuesday before falling back to trade 4 per cent higher in early afternoon trading.

Hong Kong’s Hang Seng index fell as much as 9 per cent after rising 11 per cent over the previous five days.

“This is what happens when you feed the monster,” said Alicia García-Herrero, chief Asia-Pacific economist at Natixis. “Every day you need to increase the amount of food or it turns against you.”

Tuesday’s market moves came after institutions including Goldman Sachs, Citi and HSBC raised their targets for Chinese equity performance. The CSI 300 has risen more than 33 per cent over the past month.

Advertisement

Zheng said Chinese authorities would continue to issue ultra-long-dated sovereign bonds in 2025, an indication of more support for the economy. He also said the government would accelerate bond issuance to support growth, front-loading about Rmb200bn ($28bn) from next year’s budget for spending and investment projects.

He also pledged to prioritise consumption and expand domestic demand, which has lagged expectations, as well as strengthen support for China’s poor and students.

Chi Lo, senior Asia-Pacific strategist at BNP Paribas Asset Management, said the “core” fiscal stimulus measures observers had hoped for “weren’t really there today”.

“There is not enough conviction [in the market] that the Chinese authorities were coming out with forceful fiscal spending, accompanied by monetary easing, to get the system out of the doldrums.”

In response to a question about whether there would be new special local government bond issuance in the final two months of 2024 — an indication of greater fiscal support for ailing local administrations — NDRC deputy head Liu Sushe said policymakers were focused on realising the proceeds of existing special bonds.

Advertisement

Ting Lu, China economist at Nomura, forecast fiscal measures and other supportive policies in the next several months.

“The eventual scale and content of the fiscal package might be quite improvised and uncertain due to the brewing stock bubble and still-controversial debates on what Beijing should focus on,” he said.

China’s prospects of hitting its full-year GDP growth target, which is the lowest in decades, have been called into doubt this year as Xi’s administration struggles to reignite confidence among consumers and businesses in the world’s second-biggest economy.

Earlier on Tuesday, the World Bank said it was maintaining its 4.8 per cent growth projection for China’s economy for 2024. The multilateral lender projects China’s GDP growth to slow next year to 4.3 per cent.

Industrial metal prices, which are affected by expectations for China’s construction sector, dropped on Tuesday. CME copper futures fell about 2 per cent, while Dalian iron ore futures were down 1 per cent.

Advertisement

Aaditya Mattoo, the bank’s chief economist for east Asia and the Pacific, said the stimulus measures of recent weeks were “not a substitute for the deeper structural reforms needed to boost longer-term growth”.

“Given the lead time for fiscal policy implementation, most of the measures [and] bond proceeds will carry over into next year,” he said. “And even then, consumers may be reluctant to splurge because a one-time transfer would not boost longer-term incomes or address concerns about ageing, illness and unemployment.”

Analysts at Morgan Stanley suggested China’s finance ministry might hold a “follow-up press conference” to provide details on new measures.

But they added that there was “limited chance of meaningful demand stimulus” focused on consumers in the near term, adding that “sustainable reflation” still required a fiscal package of about Rmb10tn focused on consumption, debt restructuring and property.

Advertisement
Continue Reading

News

A European spacecraft launches to perform a crash scene investigation on an asteroid

Published

on

A European spacecraft launches to perform a crash scene investigation on an asteroid

An image captured from a SpaceX livestream shows the European Space Agency’s Hera spacecraft preparing to lift off on a SpaceX Falcon 9 rocket from Cape Canaveral Space Force Station in Florida on Monday.

SpaceX/Screenshot by NPR


hide caption

toggle caption

Advertisement

SpaceX/Screenshot by NPR

A European spacecraft is heading to study an asteroid after NASA purposely knocked it off its course more than two years ago.

The European Space Agency’s (ESA) Hera spacecraft lifted off on a SpaceX Falcon 9 rocket from Cape Canaveral Space Force Station in Florida at 10:52 a.m. ET on Monday.

It’s scheduled to conduct a “crash scene investigation,” researchers said.

Advertisement

Hera’s mission will focus on the asteroid Dimorphos, where a golf cart-sized spacecraft crashed on Sept. 26, 2022. That mission, called the Double Asteroid Redirection Test (DART), shortened Dimorphos’ orbit around Didymos, a bigger asteroid, by 33 minutes, researchers said.

The successful mission was only a test of the concept — to see, if an asteroid one day threatens to hit Earth, whether it could be pushed out of harm’s way.

On a series of flybys, Hera will survey Dimorphos’ mineral makeup and the dust surrounding it, the agency said. Its mission will also help scientists understand how big the crater is that was created during the DART mission, which they say could help in future asteroid deflections. Hera will also enable researchers to get a more accurate estimate of Dimorphos’ mass.

The top ESA official called Monday’s mission a “bold step” in ramping up the European agency’s role in defending the planet.

“Planetary defence is an inherently international endeavour, and I am really happy to see ESA’s Hera spacecraft at the forefront of Europe’s efforts to help protect Earth,” ESA Director General Josef Aschbacher said in a statement.

Advertisement

While in space, Hera will also conduct experiments and try “self-driving” navigation around both asteroids, the agency also said.

The asteroids are part of a binary asteroid system in which Dimorphos, at about 530 feet across, orbits Didymos, about half a mile across. The two asteroids are not a threat to Earth, according to NASA. Both came within roughly 6 million miles of Earth in 2022, according to the ESA.

Hera’s mission will also include “the first detailed survey” of Didymos.

The spacecraft is set to reach the asteroids in the fall of 2026, according to the ESA.

Advertisement
Continue Reading

Trending