Weekend Papers Summary
FINANCIAL TIMES
-The UN's top court has ordered Israel to comply with international law on genocide, a politically explosive case that raises pressure on its war in Gaza. The International Court of Justice ordered Israel to limit harm to Palestinians in Gaza but did not call for an immediate end to the military offensive. The ruling came shortly before UNRWA dismissed several employees over alleged Hamas attack involvement.
-The rise in freight rates and port snarl-ups in 2021-22 was due to increased consumer demand as the world recovered from Covid, not supply shocks to the trading system. America's role in keeping shipping lanes open, particularly by clearing pirates, has contributed to its resilience. The Center for Global Development think-tank states that the US contributes 0.2% of gross national income to protect international waters.
-Houthi rebels in Yemen have launched a missile attack on a Russian refined oil ship, the Marlin Luanda, (operated by Trafigura, and owned by Oceonix Services) as they continue their attacks on commercial and military vessels in the Gulf of Aden and the Red Sea. The attack marks the first time a commercial vessel has been targeted by the Houthis since the US and UK combined on a second set of strikes against the militants. The attack follows the Houthis' previous missile attack on the USS Carney, a US navy vessel in the Gulf of Aden.
-A New York jury has ordered former US President Donald Trump to pay $83.3mn for defamation of writer E Jean Carroll, who accused him of sexual assault. The verdict comes after Trump was ordered to pay $5mn after a separate trial in May, where a jury found Trump had sexually abused but not raped her. The bill could soon grow steeper, with Trump also facing potential damages upwards of $350mn in a separate fraud trial involving his family business, the Trump Organization. A New York judge is expected to issue his judgment before the end of the month.
-Sri Lanka is set to negotiate a debt restructuring with US dollar bond holders within a couple of months, despite private creditors' concerns about being left in the dark. Central Bank Governor Nandalal Weerasinghe stated that the $13B debt restructuring process needs to be completed quickly, despite the procedure taking time. The country is preparing for elections later this year amid signs of economic recovery, two years after a currency crisis led to its debt default.
-Boeing CEO Dave Calhoun is facing scrutiny from customers, politicians, and regulators as his leadership is under scrutiny. Boeing's shares have fallen 20% since the January 5 fuselage blowout on an Alaska Airlines flight. The grounding of most of its 737 Max 9 jets has damaged the company's reputation and caused disruptions to customers' operations. Alaska Airlines CEO Ben Minicucci has pledged to hold Boeing accountable, while American Airlines CEO Robert Isom has urged Boeing employees to act together. Pilots have expressed anger, stating that Calhoun's management changes have not worked and that they need safe, reliable aircraft.
-Charles Michel, former European Council president, has resisted his bid for a European parliament seat, stating he will continue to chair EU summits and represent the bloc's 27 leaders. Michel will not step down before the end of his mandate in December, as he would have been forced to do so after the June elections.
-US aid for Ukraine's war effort seems unlikely to materialize due to Trump and House Speaker Mike Johnson's opposition to a potential Congress deal linking more funding for Kiev with stricter immigration controls. Senate negotiators have been working on a bipartisan agreement on stricter border measures in exchange for more security assistance to Ukraine. Trump's focus on immigration and his dominance in the Republican primary have made it difficult for lawmakers to accept a compromise.
-Luxury goods companies in Europe have seen their stocks reach multiyear highs following LVMH's fourth-quarter sales report, boosting investor confidence in the sector's ability to withstand an economic downturn. France's Cac 40 rose 2.3%, while London's FTSE 100 added 1.4%. The Stoxx Europe 600 rose 1.1%, reaching its highest level since January 2022. LVMH's turnover rose 10% in the three months to December, easing concerns about a China economic slowdown.
-The Biden administration will temporarily halt approvals for new liquefied natural gas export terminals along the US coastline, affecting the industry and benefiting climate campaigners. The US is the world's largest LNG exporter, but its liquefaction plants are a target for climate activists.
THE NEW YORK TIMES
-Former President Trump has been ordered to pay $83.3M to writer E. Jean Carroll for defamation in 2019. The jury awarded Carroll $65M in punitive damages, finding Trump's actions with malice. Trump continued to attack Carroll in social media posts, news conferences, and during the trial.
-The United Nations has fired 12 UNRWA employees in Gaza following accusations of involvement in the October 7 terrorist attack. The agency, known as UNRWA, is under criminal investigation. The agency condemns the attacks and will hold any involved employees accountable, including through criminal prosecution.
-Alabama officials have vowed to continue using nitrogen gas in executions after the nation's first nitrogen gas execution, despite critics calling it appalling and far from what the state promised. The state's attorney general, Steve Marshall, called it a "textbook" execution, making nitrogen hypoxia a "proven" method for other states to emulate. Witnesses described an intense reaction during the gas administration, including a violent shaky and writhing prisoner.
-Nikki Haley, former South Carolina governor and Trump's UN ambassador, criticized Trump's mental acuity after a failed attempt by one of his allies to declare him the party's presumptive nominee, escalating her attacks on his mental acuity on Fox News.
-President Biden fought to save a bipartisan immigration deal from collapse in Congress, vowing to shut down the border if the plan becomes law. In a written statement, Biden declared the border "broken" and in "crisis," and promised to halt migration immediately if Congress sends him the proposal.
-Protests by farmers in France have spread due to complex regulations, administrative hassles, and low wages. The country's new prime minister, Gabriel Attal, arrived in southwestern France to ease tensions. Attal declared that without farmers, France is no longer France. He promised to scrap plans to reduce state subsidies on diesel fuel used in trucks and other farming machinery and significantly reduce bureaucratic regulations farmers must follow. For example, 14 different regulations on hedges would be merged into one.
-The State Department has approved a $23B sale of F-16 fighter jets and related equipment to Turkey after President Recep Tayyip Erdogan signed documents allowing Sweden's entry into the North Atlantic Treaty Organization. Four senior lawmakers confirmed their agreement after reviewing the signed documents. Congress could block the sale, but four senior lawmakers remained unafraid after reviewing the documents. The State Department requested Turkey to fly the documents to New York and bring them to Washington.
THE NEW YORK POST
-Andrew Cuomo, a prominent figure in the Democratic Party, has criticized President Biden's administration for failing to address the migrant crisis. He attributed the problem to divided opinions within the party, a sentiment that was echoed by political experts. Cuomo's message is based on self-serving tough love, highlighting the ineffectiveness of the Democratic Party in addressing the issue. However, he also acknowledges the need for a more nuanced approach to the problem.
-A key Biden family associate, Rob Walker, has revealed new details about Joe Biden's alleged involvement in foreign business relationships. Walker testified that Biden attended a meeting with a Chinese government-linked company in 2017, which paid millions to his son Hunter and brother James. Biden did not commit any wrongdoing in these overseas ventures.
-JetBlue Airways is expressing doubts over closing its $3.8B merger with Spirit Airlines, citing unmet conditions as part of the deal. Spirit's shares tumbled 13% to $6.25, adding to their losses of over 60% this month. JetBlue informed Spirit that the merger agreement might be terminated on and after Sunday due to unmet conditions. Spirit, however, said there was no basis for terminating the agreement and expects JetBlue to do the same.