Weekend Papers Summary
FINANCIAL TIMES
-The US has launched a series of retaliatory strikes against Iranian-linked forces in Iraq and Syria, identifying 85 targets at seven facilities. The strikes, which include those associated with the Islamic Revolutionary Guard Corps (IRGC) Quds Force and Iranian-backed militia, are part of President Joe Biden's escalating campaign in the region. The strikes are the first time the US has targeted the Quds Force directly in its campaign. The US officials have signaled that these strikes are the first in a phased response, with additional action planned to put an end to the attacks. Despite Biden's stance on not wanting to get involved in a wider war, he has indicated that the US would continue to strike back if Iran and its proxies do not cease.
-The Democratic campaign is considering endorsements from global pop star Taylor Swift to win votes in the upcoming Super Bowl. Swift, a culturally significant figure who has previously endorsed Democratic candidates, has a significant impact on the US economy and has a romantic relationship with a star player. The campaign is considering whether Swift's endorsement could boost Biden's chances in the upcoming election.
-Turkey's central bank governor, Hafize Gaye Erkan, has resigned just months into her tenure, citing weeks of smears against her in local media. Erkan, appointed in June as the bank's first female chief, will be replaced by deputy governor Fatih Karahan, who will be President Recep Tayyip Erdogan's sixth central bank chief in five years. Erkan, a former Goldman Sachs banker, has been a central architect of a sweeping economic policy overhaul since Erdogan's re-election in May and has been praised by foreign investors.
-The US economy added 353,000 jobs in January, nearly double the forecast, causing investors to lower expectations for an interest rate cut in March. The figures, compared to 180,000 expected for last month, bolster the Federal Reserve's stance that it may be too soon to cut interest rates.
-Over 40% of surveyed participants at a US bank session on Chinese equities believed the country was "uninvestable," following the vice-premier's call for more measures to stabilize the market and boost investor confidence. The poll results highlight the difficulties facing China's stock market, which has experienced three years of grinding losses after a decade of steady foreign inflows. Traders, asset managers, and hedge funds have reported that global investor confidence has been shaken by these losses.
-Donald Trump has expressed his desire to replace Jay Powell as the Federal Reserve chair, citing his political stance and his prediction of cutting interest rates to "help the Democrats" this year. Trump, who was critical of Powell from 2017 to 2021, believes Trump is trying to lower interest rates for the sake of getting people elected. Trump has not offered another four-year term to Powell in 2026, despite his nomination in 2018. Despite nominating Powell in 2018, Trump later turned against the US central bank, accusing it of keeping interest rates too high during trade wars with China and Europe.
-Panama's former president, Ricardo Martinelli, will not be able to run in the May elections despite leading the polls by double digits, according to experts. The Supreme Court threw out a final appeal over his money laundering conviction, confirming his conviction and making him constitutionally barred from running. Martinelli had been filing legal challenges to overturn the final decision.
-Tesla must update the software of over 2M US vehicles, marking its third major safety update in three months. The update covers all Tesla models and the new Cybertruck, as warning lights on the instrument panel are too small, according to federal safety standards. The small font size can make critical safety information difficult to read, increasing crash risk.
-US oil giants ExxonMobil and Chevron have achieved their second-biggest annual profits in a decade, despite a decline in prices. The oil giants increased output in 2023, doubling down on oil and gas, despite concerns over their commitment to emissions reduction. Exxon's full-year net income was $36B, its biggest profit since 2012.
THE NEW YORK TIMES
-The Biden administration has warned that US military strikes targeting Iranian forces and Iran-backed militia sites in Syria and Iraq will not be the last. The country's defense ministry reported that civilians and soldiers were killed in Syria, while at least 18 members of Iran-backed groups were killed in strikes on 26 sites. US officials are confident that the strikes on 85 targets at seven sites in the two countries have hit "exactly what they meant to hit," but analysts will make a closer assessment in daylight.
-The Biden administration has imposed sanctions and criminal charges on Iran's Islamic Revolutionary Guards Corps, its premier military force, for threatening water utilities and manufacturing Iranian drones. The sanctions were unsealed, and nine people were charged with selling oil to finance militant groups Hamas and Hezbollah. The timing was intended to pressure the Revolutionary Guards and its elite unit, the Quds Force, during a time of extraordinary Middle East tension. The sanctions have been brewing for some time, but the region has been in turmoil for months.
-Israel's defense minister has announced that ground forces will advance towards Rafah, a city in the southern Gaza Strip, which has become a refuge for hundreds of thousands of Palestinians displaced by the 13-week war. Rafah, a hub for humanitarian aid, is a sprawl of tents and shelters along the border with Egypt, housing about half of Gaza's 2.2 million residents.
-Judge Tanya Chutkan has scrapped the trial date for the Trump Election Subversion case, which was scheduled for March 4, as an appeals court considers Donald Trump's immunity argument. -Prosecutor Faian Willis admitted a personal relationship with Nathan Wade, but said it shouldn't hinder her prosecution. District attorney Fani T. Willis has admitted to a "personal relationship" with a prosecutor she hired to manage the Georgia election interference case against former President Donald Trump. However, she argued that this is not a reason to disqualify her or her office from the case. The admission came after allegations of an "improper, clandestine personal relationship" between the two surfaced in a motion from one of Trump's co-defendants.
-The Supreme Court won’t block use of race in West Point admissions for now. The court rejected an emergency request to temporarily bar the military academy from using race in admissions while a lower-court lawsuit proceeds.
-As Inflation Fades Globally, Growth Is Resilient, Especially in the US. Economies all over the world are lowering inflation while avoiding serious recession — but growth in the United States stands out.
-The US has quietly resumed deportation flights deep into Mexico. The flights, which had been paused for nearly two years, are designed in part to discourage migrants from repeatedly trying to cross into the US.
-Mark Zuckerberg and Bill Ackman, head of Meta, and one candidate backed by Zuckerberg, have failed to secure enough petition signatures to be on the Harvard Board of Overseers' ballot for election. The candidates, a slate of four backed by Ackman and one by Zuckerberg, said they were disappointed but appreciated the support. The failure raises questions about the support for Ackman's campaign against Harvard's leadership over the past few months. The candidates are looking forward to trying again next year.
-Vice President Kamala Harris has urged supporters in South Carolina to not ignore the Democratic presidential nominating contest, which is expected to be uncompetitive. Harris, who is the first primary in the nation, urged the state to make their voices heard and fight for freedom, democracy, and opportunity for all. The rally, which was Harris's ninth trip to South Carolina and her third of the year, demonstrates the importance she and Biden's campaign have placed on a dominant performance to begin their party's presidential nominating season. The rally was held at South Carolina State University in Orangeburg.
-Taylor Swift has sparked a wave of political conspiracy theories, with Fox News, Trump surrogates, and the MAGA universe circulating these theories. Some suggest Swift is secretly working for the US government and her relationship with Kansas City Chiefs tight end Travis Kelce is part of a political scheme. The theory suggests that Swift's involvement with Kelce and the NFL could lead to the Chiefs winning the Super Bowl and Swift supporting President Biden in the upcoming election.
-The secret text of a bipartisan Senate immigration bill may be released soon, with a vote expected next week. Secretary of Homeland Security Alejandro Mayorkas has been actively involved in the negotiations, despite former President Donald Trump's attempts to derail them. Meanwhile, Mayorkas has become the target of a partisan impeachment effort in the House, with Republicans accusing him of breaking the law by not more forcefully stopping migrants from crossing illegally into the US. Mayorkas has been cautious about the political repercussions of the immigration crisis, stating that the system is broken and that he will not use the term "crisis."
THE NEW YORK POST
-Mayor Eric Adams' administration is set to begin handing out pre-paid credit cards to migrant families staying in Big Apple hotels. The $53M pilot program, run by New Jersey-based Mobility Capital Finance, will provide cash to help asylum seekers buy food at the Roosevelt Hotel. The cards can only be used at bodegas, grocery stores, supermarkets, and convenience stores, and migrants must sign an affidavit stating they will only spend the funds on food and baby supplies. The Immediate Response Card initiative is similar to the state's food stamp program, SNAP, which provides lower-income New Yorkers with credit cards to cover meal costs.
-President Biden's administration is urging grocery chains to lower prices on goods like milk, eggs, and bread. The president's message is that companies with lower input prices should pass these savings on to consumers. Walmart, Kroger, and Albertsons are currently booking 20-plus percent gross profit margins, similar to their pre-COVID-19 levels. The message is aimed at companies that have not passed these savings on to consumers.