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After market turmoil, EU revamps rules for bailing out mid-size banks

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After market turmoil, EU revamps rules for bailing out mid-size banks

As markets regularly return to normalcy following weeks of turbulence, the European Fee has unveiled a brand new algorithm to additional shield deposits, stop financial institution runs and guarantee taxpayers don’t find yourself footing the invoice each time a monetary establishment falls sufferer to its personal mismanagement.

The foundations centre on decision, the precise course of for failing banks which can be too large and too essential to endure abnormal liquidation proceedings as a result of doing so would possibly set off monetary instability and hurt the broader financial system.

Decision is taken into account much less disruptive than liquidation and permits bancrupt banks to proceed their important operations, together with lending and funds, whereas a restructuring takes place.

Brussels desires to broaden the factors for decision and make medium-size banks eligible for instruments which can be often reserved for his or her bigger counterparts, such because the partial sale of enterprise or the switch of deposits from an ailing to a more healthy financial institution.

The reform maintains the authorized safety of deposits price as much as €100,000 however opens the door for shielding increased quantities stemming from life occasions like inheritance and actual property transactions.

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The safety shall be broadened to cowl colleges, universities, hospitals, municipal administrations and funding companies, amongst others.

Ought to a financial institution run into hassle, the primary repair will stay its personal loss-absorbing sources, which establishments should at all times maintain at a minimal stage set by regulation.

If these sources aren’t sufficient to safeguard deposits, the financial institution shall be allowed to faucet into Deposit Assure Schemes (DGSs) or the Single Decision Fund (SRF), two emergency funds which can be sustained by banks and monetary establishments themselves in line with their measurement and danger.

These industry-funded security nets keep away from using taxpayers’ cash to subsidise financial institution rescues and their use shall be topic to strict circumstances.

DGSs and the SRF are projected to succeed in €55 billion and €80 billion respectively by the top of 2024.

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“That is banks’ cash, not depositors’ cash,” Mairead McGuinness, the European Commissioner for monetary providers, stated on Tuesday whereas unveiling the laws.

“We’re not conserving failing banks alive with that cash.”

Ultimately, the bancrupt financial institution will pull out of the market, McGuiness famous.

Orderly collapse

Tuesday’s proposal, whose publication has been delayed a number of occasions, comes on the heels of the spectacular, back-to-back collapse of three American banks – Silicon Valley Financial institution (SVB), Silvergate Financial institution and Signature Financial institution – and the government-brokered takeover of Credit score Suisse, Switzerland’s second-largest lender.

The convergence of those dramatic occasions in such a brief time frame raised issues of a domino impact and a contemporary monetary disaster that would have compounded the already deep financial ache brought on by Russia’s struggle in Ukraine, the facility crunch and hovering inflation.

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Though that worst-case state of affairs has – up to now – didn’t materialise, the only chance was sufficient to give policymakers pause and make clear one of many bloc’s most obtrusive unfinished duties: the banking union.

To this present day, the third pillar of the banking union, known as the European Deposit Insurance coverage Scheme (EDIS), stays caught in negotiation since 2015 as international locations disagree on methods to design a supranational security internet that will grant an equal stage of safety to all deposits throughout the eurozone, whatever the financial institution’s location or the nation’s fiscal well being.

With the sharing of dangers out of the query, the European Fee has opted for an intermediate step of kinds: to harmonise and strengthen guidelines on financial institution bailouts and deposit ensures.

The newest model of the financial institution disaster administration and deposit insurance coverage (CMDI) framework reworks guidelines that at present exist however aren’t uniformly obtainable or utilized by all eurozone members.

This implies the proposal avoids the politically divisive path of making a brand-new EU-wide scheme, such because the one envisioned below the banking union’s pending third pillar.

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In follow, the CDMI is an try to shut the legislative vacuum between massive banks thought-about “too large to fail,” that are managed by means of decision, and small-size banks, whose liquidation often takes place by means of abnormal courtroom proceedings.

The Fee didn’t specify what number of eurozone banks would fall below the mid-size class and due to this fact profit from the revised guidelines.

As a substitute, it is going to be as much as nationwide authorities to find out on a case-by-case foundation if a troubled financial institution is important sufficient to undergo decision or liquidation.

The chief’s final purpose is to make the collapse as orderly as attainable, construct up confidence amongst depositors and stop rushed withdrawals just like the one which precipitated the downfall of Silicon Valley Financial institution.

The draft legal guidelines shall be negotiated and sure amended by member states and the European Parliament earlier than coming into into pressure.

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“We’re not anticipating simple debates,” stated Valdis Dombrovskis, the European Fee’s Government Vice-President, who additionally took half within the presentation.

Requested if the 2015 proposal to finish the banking union was nonetheless legitimate after such a protracted impasse, Dombrovskis stated the textual content was nonetheless “pertinent.”

“We see this (reform) as a primary step that would certainly pave the best way for renewed discussions on different essential information to finalise the banking union,” Dombrovskis stated.

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Why the Biggest Tech Companies Are Suddenly Streaming Sports

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Why the Biggest Tech Companies Are Suddenly Streaming Sports

When it comes to streaming, sports had to play catchup. In the mid-2010s, as the world grew comfortable with digital entertainment services, major leagues largely remained on the sidelines. Companies like Netflix focused on binge-able shows over live entertainment and streamers balked at the regional restrictions or high costs that came with acquiring athletic events. Leagues, meanwhile, valued the consistent reach traditional TV provided—and the big paychecks, too.

“I’m very confident we can get twice as big as we are without sports,” Netflix CEO Ted Sarandos said at the end of 2022. Well, this month Netflix announced a deal to stream two NFL games on Christmas Day next season, at a reported total cost of roughly $150 million. For those counting at home, the company’s market cap and subscriber count are each up more like 10% rather than 100% since Sarandos’ prediction.

And it’s not just Netflix getting involved. Apple committed to a 10-year partnership with Major League Soccer. Google is now spending $2 billion annually for NFL Sunday Ticket rights. Amazon seems, dare I say, primed to add NBA inventory to its NFL slate and other sports rights. Even Roku recently joined the party. If Microsoft launched a Windows streaming service anchored by live sports, we’d have no right to be surprised.

So what happened?  It’s a question I’ve been asking in various forms to both sports and tech decision-makers for the last several years. As expected, there’s no single explanation for big tech’s big surge into the sports viewing experience. But the following four reasons are all regularly citied.

The tech works

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This was always going to be the first hurdle. And live sports went through its growing pains, with broken payment processes holding viewers up as well as glitches emerging during crunch time of the Super Bowl. Netflix’s early live streaming attempts came with their own set of issues.

In 2024 though, the tech’s solid. Sure, there are areas for improvement, such as cutting down the delay between reality and the broadcast (latency) or upping the picture quality. Accessibility is also an issue for those without reliable, high-speed internet. But in each case, we’ve passed the point of “good enough.”

Sports are multi-generational

For a time, streamers specialized: There was your horror movie service, your classics subscription, your kids-focused offering and so on. But now, the heavy hitters try to appeal to a wide swath of potential viewers, and sports hit multiple demographic segments like few other properties. That’s especially true as blockbuster movies have become much less of a sure thing. The $75 million price tag Netflix is paying per NFL game is roughly equivalent to the cost of a single midsized movie on the service. Christmas flick out, Patrick Mahomes in.

By the same token, sports fans are generally followers for life. While people often cycle through their preferred type of TV show, athletic allegiances stick around. As streamers put an emphasis on retaining their current customers, that type of loyalty is invaluable. 

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Sports = ads

Today’s consumer has gotten used to ad-free, or at the very least ad-light, entertainment experiences. That is, except for sports fans. While the NFL has worked to lighten ad loads during games, commercials are still a natural part of broadcasts. Sports also offer advertisers a reliable audience watching brand-safe content, regardless of what platform games air on. And tech companies are increasingly in the ad business.

Amazon turned its Black Friday NFL game into an ad tech showcase. Netflix’s push into live entertainment has uncoincidentally followed the addition of an ad-supported pricing tier. Even Apple is reportedly attempting to grow its ad business, backed in part by sports assets. 

At Netflix’s pitch to advertisers in NYC earlier this month, sports partners like Formula 1 and WWE received the largest footprint in the company’s warehouse-turned-“immersive experience.” That wasn’t a coincidence.

Eyes around the world

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For a while, sports leagues selling games to streamers was seen as taking extra money at the expense of reaching fewer fans. But now, global tech brands can offer something that some traditional providers can’t match.

Amazon has helped the NFL reach new, younger fans with its shows, while Netflix will now make football easier to watch for many international fans. “It’s a global opportunity for us,” NFL media COO Hans Schroeder recently explained. I expect that the game times—1 and 4:30 pm ET rather than primetime—were in part set to increase viewership in Europe and beyond.

Tech companies have also wooed leagues with the precise data they’re able to gather on viewers and potential viewers, valuable information for sports executives building out international marketing strategies. 

Put it all together and it becomes clear why major tech companies are coming to compete with sports’ traditional broadcasters. The only question left is how much more they’ll take. 

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Top South African rabbi critical of govt's 'support' of Hamas, says US needs to stop 'bad actors' on continent

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Top South African rabbi critical of govt's 'support' of Hamas, says US needs to stop 'bad actors' on continent

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FIRST ON FOX – Iran, Russia and China are sweeping across Africa, with the U.S. facing a crisis of influence. In South Africa, the government has aligned itself with the “bad actors” Russia, China and Iran. These are the main takeaways from an exclusive interview with South Africa’s chief rabbi, Dr. Warren Goldstein. 

Goldstein spoke with Fox News Digital in Johannesburg on Monday, on the eve of what promises to be a watershed presidential election in South Africa this week. Thirty years ago, the African National Congress (ANC) Party swept into power, carrying Nelson Mandela to become the country’s first democratic president. There have been remarkable achievements, but corruption, nepotism, failed government promises and catastrophic fraud-linked power blackouts have left democracy critically strained and many voters disillusioned. In Wednesday’s polls, for the first time, the ANC is likely to lose its majority. 

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Across Africa, as democracies become weaker, countries which are strange bedfellows step out of the murky shadows. “The bad actors in international politics, China, Russia and Iran, are making a grab for the African continent,” Goldstein told Fox News Digital.  

Goldstein added “also realize that the African continent is suffering from a wave of jihadi terror in which Christians are being persecuted across the continent. In this context, South Africa in particular, and the African continent in general, is a beacon and can be a very important ally for the United States in promoting freedom and democracy.”

GOP SENATORS BLAST BIDEN ADMIN MOVES IN AFRICA AS RUSSIA LOOKS TO FILL VACUUM

South Africa’s chief rabbi, Dr. Warren Goldstein. (Office of the Chief Rabbi )

“American values are at stake on the African continent, and we need a much stronger American presence in the continent as a whole and in South Africa in particular”, he continued.

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Responding to the growing worry of U.S. foes gaining ground in South Africa and the region, a State Department spokesperson told Fox News Digital “we have a strong relationship with South Africa and that relationship is based on the priorities of the American people and the South African people, our shared values and our interests. We are committed to an affirmative agenda with South Africa, through which we work together to bring our nations’ respective priorities to the table.”  

The spokesperson added “The United States believes all countries may choose the countries and groupings with which they associate. South Africa is a sovereign country that can make its own decisions about how to engage others. The relationship between the United States and South Africa is broad, deep, and multifaceted, grounded in values, interests, and people-to-people ties that include our common journeys to uphold human dignity. We’re focused on making our relationship even stronger, to the benefit of Americans and South Africans, and we aren’t distracted by what others are doing.”

Analysts have often accused the ANC of telling the South African government, in which, until Wednesday, its members have a majority, what to do and say. This, Goldstein told Fox News Digital, has led to the country turning away from the West. “A very important thing to understand is the distinction between the ANC government and the South African people. They are very divergent in their values,” said Goldstein.

Biden and Ramaphosa

President Biden, right, shakes hands with South African President Cyril Ramaphosa during a bilateral meeting in the Oval Office of the White House on Sept. 16, 2022 in Washington, D.C. The two leaders reaffirmed the importance of enduring partnership, and discussed their work together to address regional and global challenges. (Photo by Pete Marovich-Pool/Getty Images)

“The ANC government has aligned itself with Russia, China and Iran. The South African people do not share their values in this regard. And to note that this is going to be the first time in South African history the ANC is going to drop below 50% (in electoral votes).”

“It has lost the support of the majority of South Africans. And therefore, when America is considering the opportunities for alliances with South Africa, with the continent, it needs to look beyond the ANC government. That it is a waning force in South African politics, and it is eventually on its way out” 

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CHRISTIANS IN AFRICA FACE WORRYING RISE IN KILLINGS, PERSECUTION AND DISPLACEMENT

Iran in Africa

A woman holds up a poster of Iranian President Ebrahim Raisi (not seen) as they welcome him upon arrival for a state visit at the Robert Gabriel Mugabe International Airport in Harare on July 13, 2023. (Jekesai Nijikizana/AFP via Getty Images)

The South African government responded to Goldstein’s criticism, noting, “Firstly, it’s wrong to label the South African government with a political party,” Clayson Monyela, head of public diplomacy at South Africa’s Department of International Relations, told Fox News Digital.

“Decisions of the state are taken by the state and not the ruling party,” Monyela added. “The values that this government espouses are shared by the people it represents. The constitution of the Republic is the guide.”

However, the official opposition, the Democratic Alliance (DA), believes the ANC pushes its cadres into influential government positions. On their own website, the ANC calls the positioning of their faithful ‘cadre deployment,” as if such a procedure was part of a military exercise.

South African genocide case against Israel at ICJ in the Netherlands

Public hearings in South Africa’s genocide case against Israel begin at the International Court of Justice in The Hague, Netherlands, on Jan. 11, 2024. (Dursun Aydemir/Anadolu via Getty Images)

In a document accompanying a court action in February, the DA stated “The ANC controls both the demand-side and the supply-side of senior administrative roles, State-owned enterprises (SOEs), boards, entities, and independent state institutions.”

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This past Friday, the International Court of Justice (ICJ), the world’s top court, voted that Israel should “immediately halt its military offensive in Rafah.” South Africa had applied to the court to stop the attack in Gaza. 

Rabbi Goldstein said, “The ICJ ruling is not only an attack on Israel’s right to self-defense, it is also a threat to the United States of America and all countries of the free world. – when you can have, for example, a judge from Lebanon presiding over this matter, and countries representing, if you think about the United Nations, the vast majority of the members of United Nations do not come from free democracies. You cannot have dictatorships and their representatives determining when free democracies can defend themselves against the forces of terrorism and violence in the world.”

ANGER RISES OVER SOUTH AFRICA MAKING MILLIONS IN US BENEFITS WHILE COZYING UP TO IRAN, RUSSIA AND HAMAS

South Africa election

President of the ruling African National Congress (ANC) and South African President Cyril Ramaphosa speaks to supporters during the ANC Siyanqoba Rally held at FNB Stadium on May 25, 2024 in Johannesburg. South Africa’s national and provincial elections will be held on May 29, 2024 to elect a new National Assembly and provincial legislature in each of the nine provinces. (Photo by Chris McGrath/Getty Images)

Monyela defended the country’s actions, saying “The SA government’s principled position on the Palestine/Israeli matter has been vindicated repeatedly by the rulings of the ICJ. We approached the ICJ to stop the current genocidal acts being perpetrated by Israel against the people of Palestine. This is what all peace-loving people of the world, who believe in human rights and international law, should do.”

South Africa kicked out Israel’s ambassador and closed the embassy, but Goldstein told Fox News Digital that there is little antisemitism among ordinary South Africans. “Antisemitism in South Africa today is a fascinating paradox, which is very revealing about what is actually happening in this country. On the one hand, you have the South African government that has been the most anti-Israel, pro-Hamas, pro-Iranian government in the world when considering free democracies, which is a betrayal of the South African constitution and the values of this country.”

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US CONCERNED OVER SOUTH AFRICA’S GROWING TIES WITH RUSSIA, IRAN AND HAMAS: ‘FALLEN’ FOR PROPAGANDA

Israel supporters in South Africa

Members of the Active African Christians United Movement pose as one of them blows through a shofar as others gather in support of Israel outside the embassy of Israel in Pretoria on Nov. 17, 2023. (Photo by EMMANUEL CROSET/AFP via Getty Images)

Goldstein continued” On the other hand, the South African Jewish community has experienced amongst the lowest levels of antisemitism of any Jewish community in the world. And so you have this paradox, an assault, an ANC government that has been pro-Iran, and a South African people that is welcoming of its fellow citizens of the Jewish faith together with all of the citizens of this country, this tremendous spirit of togetherness of unity and diversity, which is the motto of the country, really drawing from the spirit of Nelson Mandela, which is still felt to this day, which is utterly at odds with the spirit and the values of the ANC government.”

Monyela hit back, adding, “The challenge with this comment is the deliberate blurring of the lines between the ANC and the state. The South African Government is not anti-Israel and most certainly not pro-Hamas.”

Anti-Israel protest in South Africa

A man brandishes a replica toy gun during a pro-Palestinian demonstration organized by the South African opposition party Economic Freedom Fighters in front of the Israeli Embassy in Pretoria on Oct. 23, 2023. (Marco Longari/AFP via Getty Images)

“It is the most ridiculous and outrageous thing to suggest”, added Monyela. “These false and manufactured narratives, including the baseless antisemitism label, are a blunt object meant to silence us from speaking out against the genocidal acts of Israel against the Palestinian people.” He claimed that “The ICJ has repeatedly agreed with us. Look at the comments of the President of France on the latest attacks in Rafah that killed innocent civilians. Even the White House has criticized Israel. The Israeli Prime Minister himself has called for an investigation. South Africa is consistent in calling for the respect of human rights and international law. Our position on the two-state solution is on record.” 

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Fox News Digital reached out to the ANC for comment, but received no response.

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NATO has upped vigilance amid suspected Russian sabotage – Stoltenberg

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NATO has upped vigilance amid suspected Russian sabotage – Stoltenberg

A string of recent suspected sabotage operations across allied countries has the military alliance on the alert.

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NATO has upped its “vigilance” amid an increase in “Russian intelligence activity” across its member countries, the military alliance’s secretary-general acknowledged on Tuesday 

Asked about recent suspected Russian sabotage and arson attempts targeted at warehouses, shopping centres and households across EU and NATO countries, Stoltenberg refrained from directly pinning responsibility on the Kremlin.

But he clearly indicated the alliance was monitoring the events and underlined the importance of criminal investigations at national level.

“We have seen increased Russian intelligence activity across the alliance, therefore we have increased our vigilance, we have our own services who are closely monitoring what the Russians are doing,” Stoltenberg – who is due to step down in October after a decade at NATO’s helm – said.

“It is important that also nations are taking action (with) the arrests and the legal processes that have now started in the UK, in Germany, in Poland and in other countries,” he added.

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“We need to be ready and we need to share intelligence (…) to counter these different types of hybrid acts aimed at undermining the ability of NATO allies to provide support to Ukraine.”

Russian attempts to ‘intimidate’

Over the weekend, a New York Times report citing US and allied security officials claimed some of the recent hybrid attacks – notably attempted arson – in Europe were the work of the GRU, Moscow’s military intelligence arm. 

The incidents include recent arson attempts on sites across Poland which led to nine individuals being arrested on suspicion of Russian sabotage last Tuesday.

Speaking to Polish broadcaster TVN24 last week, Polish Prime Minister Donald Tusk said the suspects – allegedly Ukrainian, Belarusian, and Polish citizens – had “engaged directly on behalf of the Russian services in acts of sabotage in Poland,” including physical assault, arson and attempted arson.

Tusk said the attacks included an attempt to set fire to a paint factory in the western Polish city of Wroclaw, as well as other recent incidents in Lithuania, Latvia, and potentially Sweden.

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A recent arson at an Ikea warehouse in Lithuania is now suspected of being linked to the Kremlin’s operations.

Speaking to local media last Wednesday, Latvian Prime Minister Evika Siliņa also warned of possible Russian operations in the country, noting that “arson is one of the most typical forms of diversion for Russian special services.”

In April, two German-Russian nationals were arrested in Germany for planning bombings and arson attacks against critical infrastructure and military bases.

Authorities in the United Kingdom, a non-EU member state but a NATO ally, also arrested two men in late April after an arson attempt on a Ukraine-linked business on an industrial estate in east London.

Speaking ahead of a meeting of  EU defence ministers in Brussels on Tuesday, the Netherlands’ defence minister Kajsa Ollongren also raised the alarm: “What we’re seeing now in several European countries is Russia trying to destabilise us, also to intimidate us.”

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“We are aware of this new way of working,” she added. “And, so, yes, we are vulnerable. I think all of us are. We have vital infrastructure, we have undersea bed infrastructure, we have electricity supplies, water supplies (…) We are vulnerable but we can also protect ourselves if we cooperate between partners, with industry, and with our security services,” she added.

The bloc’s top diplomat Josep Borrell said there was no evidence yet to incriminate Russia for such attacks.

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