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Standard Chartered announces largest-ever share buyback as profits rise

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Standard Chartered announces largest-ever share buyback as profits rise

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Standard Chartered has announced a $1.5bn share buyback, its biggest ever, after pre-tax profits rose in the second quarter.

The UK-based bank on Tuesday reported pre-tax profits of $1.6bn during the quarter, up from $1.5bn a year earlier and above analysts’ estimates of $1.5bn.

Growth was driven partly by the bank’s wealth business, which caters to affluent clients, where operating income rose 27 per cent.

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The bank’s chief executive Bill Winters said it was a “strong set of results” and he had “confidence in our performance and robust capital position”.

The emerging markets-focused bank, which makes most of its money in Asia, has been under pressure to improve shareholder returns and previously pledged billions of dollars worth of share buybacks as well as higher dividends.

Winters, who has run StanChart since 2015, has sought to cut costs and respond to criticism that the bank is too bureaucratic and spreads itself too thinly across a range of countries, products and clients. He said in February that he took those challenges “to heart”.

Operating expenses rose 4 per cent on a constant currency basis, which the bank said was driven by inflation and business growth.

StanChart’s shares have risen since the start of this year but are down 17 per cent since Winters took the helm.

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The bank’s reported return on tangible equity, a key measure of profitability, was 10.4 per cent for the quarter, down from 10.8 per cent a year earlier.

Reported net interest income fell to $1.6bn in the second quarter, from $2bn the same time last year, as the benefit from higher interest rates tailed off.

The bank took total credit impairment charges of $73mn in the second quarter, linked partly to its wealth and retail banking business.

StanChart has previously been hit by its exposure to mainland China, one of its most important markets, taking impairment charges relating to commercial property in the country and its stake in China Bohai Bank.

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US dollar’s haven status under threat, fund managers warn

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US dollar’s haven status under threat, fund managers warn

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The US dollar’s status as a haven for global capital could come under threat from erratic policymaking and rising trade barriers, fund managers have warned.

On Friday the currency fell to a three-year low against the euro, extending a slide that started last week after President Donald Trump announced steep “reciprocal” tariffs on US trading partners.

The moves triggered alarm among investors, who warned of a “tectonic shift” for the global economy if the dollar could no longer be relied upon to provide a refuge during periods of market volatility.

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“There is 1744440975 a very good case for the end of American dollar exceptionalism,” said Bob Michele, chief investment officer of JPMorgan Asset Management, with $3.6tn under management.

For decades, the relative stability of the US economy has allowed the dollar to function as the world’s reserve currency — held by central banks around the globe.

That has permitted the US to borrow at low cost and finance “twin deficits” in the country’s current account and its government budget. 

But a simultaneous sell-off in equities, bonds and the dollar in recent days, prompted by the president’s aggressive trade agenda, point to a loss of faith in US assets among international investors, money managers said.

“Trump’s chaotic tariff policy undermines the United States’ position as a safe haven,” said Bert Flossbach, the co-founder and chief investment officer of Flossbach von Storch, Germany’s largest independent asset manager.

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“There is certainly a possibility that increased policy uncertainty in the US could lead to shifts in the dollar’s use in the global economy,” said Brad Setser, a fellow at the Council on Foreign Relations.

Edward Fishman, author of Chokepoints, a book on US economic warfare, said that in addition to Trump’s tariffs, the president’s threats to the rule of law and the Fed’s independence may also be damaging the dollar’s allure.

He predicted that over time this could result in a shift to a “multi-polar” system in which currencies, including the euro, play a larger role.

The dollar slump is particularly unusual because global financial stress typically strengthens the currency, as investors rush to dollar-denominated assets such US Treasury bonds that are perceived to be havens.

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Economists also said that the currency of any country that imposed import duties was expected to strengthen.

Mike Riddell, fixed income portfolio manager at Fidelity International, said the recent sharp move higher in longer-dated government bond yields, coupled with a weaker US dollar, looks like “good old capital flight”.

However, economic advisers to the US president have in the past emphasised the costs that have come with a strong dollar.

Stephen Miran, chair of Trump’s Council of Economic Advisers, argued before the president’s inauguration that the dollar’s status as a world reserve currency had artificially inflated the exchange rate, undermining the global competitiveness of US manufacturing.

Economists have disputed Miran’s argument and raised concerns that his reasoning could lead the Trump administration to take further steps to depress the value of the dollar.

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Michael Krautzberger, global CIO of fixed income at Allianz Global Investors, said: “The more the conflict escalates, people think, what could be the next steps?”

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What’s next for Menendez brothers as resentencing moves forward

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What’s next for Menendez brothers as resentencing moves forward

As Lyle and Erik Menendez’s attorney put it, Friday was a good day for the brothers who have been behind bars for the shotgun murders of their parents in 1989.

An LA Superior Court judge denied the prosecution’s request to withdraw the resentencing recommendation for Lyle and Erik Menendez, allowing the brothers to move forward with their effort to be resentenced and possibly released from prison.

District Attorney Nathan Hochman had asked for the withdrawal of the resentencing recommendation, which had been filed by Hochman’s predecessor George Gascón. Gascón had announced the recommendation for resentencing in October 2024, a month before he was defeated by Hochman in the November election.

What to expect from April 17 and 18 hearing

The resentencing or modification hearing is tentatively scheduled for April 17 and 18, where the judge is expected to hear arguments on the brothers’ suitability for resentencing, based on the California law that allows courts to reduce penalties based on a variety of factors, including a prisoner’s age and their conduct while incarcerated.

It will be up to the judge to decide whether to allow the DA to withdraw the resentencing motion.

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And even after the court denies the DA’s request to withdraw, the judge will decide whether or not the brothers should be resentenced, and, possibly, the terms of a reduced sentence, which could entitle them to an immediate parole hearing.

More high-stakes reviews by the Parole Board

Simultaneous with, but separate from, the resentencing proceedings, Gov. Gavin Newsom directed the state’s parole board to evaluate whether Erik and Lyle Menendez pose danger to society, part of an independent risk assessment that will be completed by June 13.

The assessment is done by a group of corrections experts and psychologists to determine whether the brothers are suitable for release on parole.

The report will be shared with Judge Jesic in case the court proceeds with resentencing and the brothers become eligible for parole.

Newsom has said his office will also conduct its own analysis to determine whether the Menendez brothers deserve clemency, in which the governor may order a reduction in the severity of punishment.

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Who’s In and Who’s Out at the Naval Academy’s Library?

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Who’s In and Who’s Out at the Naval Academy’s Library?

Gone is “I Know Why the Caged Bird Sings,” Maya Angelou’s transformative best-selling 1970 memoir chronicling her struggles with racism and trauma.

Two copies of “Mein Kampf” by Adolf Hitler are still on the shelves.

Gone is “Memorializing the Holocaust,” Janet Jacobs’s 2010 examination of how female victims of the Holocaust have been portrayed and remembered.

“The Camp of the Saints” by Jean Raspail is still on the shelves. The 1973 novel, which envisions a takeover of the Western world by immigrants from developing countries, has been embraced by white supremacists and promoted by Stephen Miller, a senior White House adviser.

“The Bell Curve,” which argues that Black men and women are genetically less intelligent than white people, is still there. But a critique of the book was pulled.

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The Trump administration’s decision to order the banning of certain books from the U.S. Naval Academy’s library is a case study in ideological censorship, alumni and academics say.

Political appointees in the Department of the Navy’s leadership decided which books to remove. A look at the list showed that antiracists were targeted, laying bare the contradictions in the assault on so-called diversity, equity and inclusion policies.

“Initially, officials searched the Nimitz Library catalog, using keyword searches, to identify books that required further review,” Cmdr. Tim Hawkins, a Navy spokesman, said in a statement on Friday. “Approximately 900 books were identified during the preliminary search. Departmental officials then closely examined the preliminary list to determine which books required removal to comply with directives outlined in executive orders issued by the president.”

“This effort ultimately resulted in nearly 400 books being selected for removal from the Nimitz Library collection,” he added.

At most university libraries, books that the Navy’s civilian leadership banned — like “The Second Coming of the KKK,” Linda Gordon’s account of how the Klan gained political power in the 1920s — and “The Camp of the Saints” would coexist on nearby shelves.

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The Naval Academy, a 179-year-old institution in Annapolis, Md., has produced generations of military officers, many of whom have become leaders in industry, Congress and the White House. The Department of the Navy’s purge of 381 books there picked sides in the racism debate, and those that examine and criticize historical and current racism against Black Americans lost.

To academics, there is real concern that the actions of the Navy’s civilian leaders run counter to the purpose of higher education, as well as to the academy’s stated mission to educate midshipmen “morally, mentally and physically” so that they can one day “assume the highest responsibilities of command, citizenship and government.”

“I think it does a real disservice to the students to suggest that they can’t handle difficult ideas or face ideas they disagree with,” said Risa Brooks, a professor of political science at Marquette University. “We are training these people to go out and command troops and to lead people potentially in war. We want them to be resilient, because what they’re going to face is far worse than a book on a bookshelf with a title that possibly makes them uncomfortable.”

“That’s really underestimating them,” she added.

In response to an order by the office of Defense Secretary Pete Hegseth, civilian Navy officials picked the books that were removed from the academy’s Nimitz Library, which contains nearly 600,000 publications, reference texts, novels and works of nonfiction.

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Officials began pulling books off the library’s shelves the evening of March 31 and completed the purge the next morning, before the defense secretary visited that day.

The actions have caused a stir among some of the school’s alumni, who include four-star admirals and generals as well as other high-ranking government and elected officials.

“The Pentagon might have an argument — if midshipmen were being forced to read these 400 books,” said Adm. James G. Stavridis, an author, academy alumnus and former commander of all U.S. forces in Europe. “But as I understand it, they were just among the hundreds of thousands of books in the Nimitz Library which a student might opt to check out. What are we afraid of keeping from them in the library?”

One of the admiral’s recent books specifically cited Ms. Angelou’s memoir as a valuable resource for helping military leaders understand the diversity of viewpoints that make up the armed forces.

“Book banning can be a canary in a coal mine and could predict a stifling of free speech and thought,” he added. “Books that challenge us make us stronger. We need officers who are educated, not indoctrinated.”

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William Marks, an alumnus of the academy and a retired Navy commander, set up a GoFundMe campaign to purchase books from the banned list and provide them to academy midshipmen.

“These are among the most intelligent students in the world, who we are entrusting to go to war,” he said. “What does this say about the Pentagon if they don’t trust these young men and women to have access to these books in the library?”

Commander Marks is working with a bookstore in Annapolis to have a banned books table where midshipmen can get a free book from the list. He aims to expand the effort to hand out books at off-campus events such as Naval Academy football games.

“Conservatives should be just as outraged at banning books as liberals are,” he said. “This should be a bipartisan issue.”

Representatives Adam Smith of Washington and Chrissy Houlahan of Pennsylvania, both Democrats, denounced the removal of the books in a letter on April 4 to John Phelan, the Navy secretary.

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They called the move “a blatant attack on the First Amendment and a clear effort to suppress academic freedom and rigor” at the school and “an alarming return to McCarthy-era censorship.”

The purge at the library is extremely rare and possibly unprecedented at an institute of higher education, said Philomena Polefrone of American Booksellers for Free Expression, a group representing independent booksellers.

“Most of these books are not about D.E.I.,” she said, referring to diversity, equity and inclusion. “They’re by or about L.G.B.T.Q.+ people, or Black people, or anyone who is not a white, cisgender, heterosexual man.”

The Naval Academy is accredited by the Middle States Commission on Higher Education, which last certified the school in June 2016. The commission’s criteria for schools include “a commitment to academic freedom” and a climate that should foster “respect among students, faculty, staff and administration from a range of diverse backgrounds, ideas and perspectives.”

In a statement, Nicole Biever, the commission’s chief of staff, said her organization was aware of reporting about the books being removed from the academy’s library but was not reconsidering the school’s accreditation as a result. The commission sent a letter to colleges and universities on Feb. 14, Ms. Biever noted, that offered help in maintaining their credentials while also “ensuring compliance with all applicable legal or government requirements,” such as executive orders from the White House.

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With President Trump’s political ideology beginning to curtail academic freedoms, Professor Brooks said that discussing one of the now-banned books in class could have added value for future military officers.

“Libraries don’t have these books because they are indoctrinating people,” she said. “They can help expose them to different ideas they may not have encountered before.”

It is similar to a point made by Gen. Mark A. Milley, the former chairman of the Joint Chiefs of Staff, during testimony before the House Armed Services Committee, where Republican members complained that the military academies were teaching “critical race theory.”

“I’ve read Mao Zedong. I’ve read Karl Marx. I’ve read Lenin,” General Milley said at the hearing, in June 2021. “That doesn’t make me a communist.”

He then offered an argument for expanding political studies in the service of defending the Constitution after the Jan. 6 attack on the Capitol.

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“I want to understand white rage, and I’m white, and I want to understand it,” the general continued. “What is it that caused thousands of people to assault this building, and try to overturn the Constitution of the United States of America?”

That books touching on racism would be banned from a library dedicated in honor of Fleet Adm. Chester W. Nimitz, a 1905 academy graduate and five-star naval hero of World War II, seems incongruous with his actions during the war, when the military was still racially segregated.

Notably, in 1942, Admiral Nimitz personally bestowed the service’s second-highest valor award, the Navy Cross, to a Black enlisted sailor named Doris Miller for his courageous actions during Japan’s attack on Pearl Harbor.

Admiral Nimitz recognized the historical significance of the award at the time.

“This marks the first time in this conflict that such high tribute has been made in the Pacific Fleet to a member of his race,” the admiral said. “And I’m sure that the future will see others similarly honored for brave acts.”

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