Weekend Papers Summary
FINANCIAL TIMES
-Democratic allies have backed Joe Biden, despite a special counsel report describing him as a "well-meaning, elderly man with a poor memory." Lawmakers believe Biden is the best candidate to lead the Democrats into November's election, despite concerns about his mental acuity and whether he should step aside. Pennsylvania senator John Fetterman argues that the choice between order, truth, and virtue is a core national choice.
-Bit Brother, a Chinese tea retailer with a market value of less than $2M, has seen an average of 572M shares traded daily in the US stock market over the past two months. This is more than Tesla, the largest corporate American company, and is part of a trading boom in "penny stocks," which accounted for nearly 20% of overall stock market volumes in December and January.
-The European Commission granted farmers temporary exemptions from rules for nature conservation and partially reversed a 2021 decision to allow free agricultural imports from Ukraine. Under pressure from EU leaders and conservative political groups, President Ursula von der Leyen dumped parts of her Green Deal climate law, scrapping a proposal to halve pesticide use and cutting a target for reducing agricultural emissions from its 2040 climate plan.
-The EU has agreed to a delayed fiscal rule reform, allowing annual targets for cutting public debt and limits for public spending. This compromise allows countries to reduce excess debt at a slower pace over four to seven years, and allows for a more gradual tightening of the public purse. The deal follows the suspension of the Stability and Growth Pact.
-The Carlyle Group is demanding early repayment of a £125M loan made to London's Heathrow Airport in 2021, despite multiple attempts to resolve the conflict with the airport's London-listed owner, Esken. Esken chair David Shearer believes Carlyle's motives are to acquire the potentially valuable airport at a knockdown price, as the airport's real value is expected to increase in the coming years.
-Elon Musk has moved his brain-implant company Neuralink from Delaware to Nevada, a move that deepened a rift with Delaware, where a judge voided his $56B pay package from Tesla. The move follows a judge's decision to void Musk's unprecedented pay package. Musk has advised against incorporating in Delaware and recommends Nevada or Texas for shareholders to decide matters.
-Israeli Prime Minister Benjamin Netanyahu has ordered the military to create a "combined plan" to expand its Gaza offensive into Rafah and evacuate its civilian population, despite US and UN pleas not to mount a major offensive. Rafah is home to over 1 million people, forced from their homes by Israel's offensive. The US and UN have both deemed a military operation in Rafah a disaster.
THE NEW YORK TIMES
-Moody's has downgraded Israel's creditworthiness from A1 to A2, citing the prolonged war with Hamas and its impact on the country's finances. The rating, one of three major rating agencies, lowered Israel's rating from D or C to AAA or Aaa for the most pristine borrowers. The agency cited the negative outlook for Israel due to social, political, and economic risks from the conflict with Hamas. Both S&P and Fitch began reassessing Israel's credit rating in November but have not taken any action.
-Jon Finer, a Biden aide, acknowledged the administration's mistakes in its response to the Gaza war, stating he had no confidence in Israel's willingness to take meaningful steps towards Palestinian statehood. Finer's remarks came after months of public and private admonitions from the Biden administration for Israel to take a more surgical approach. He pledged that the administration would do better and expressed regret for the "missteps" made in the initial response to the Hamas attack.
-The $95B emergency national security package for Ukraine and Israel is back on track in the Senate, but Republican senators are slowing progress on proposed revisions, particularly concerning border security. They have voted to kill a bipartisan deal to crack down on immigration, allowing the aid to move forward without immigration restrictions. The demands are seen as an exercise in political face-saving, as Republicans previously stated they would never approve funds to help Ukraine fight off a Russian invasion.
-In a two-hour interview with former Fox News host Tucker Carlson, Russian President Vladimir V. Putin repeatedly mentioned that Russia wants to negotiate a peace deal in Ukraine, albeit on Kremlin's terms. This message seemed aimed at the American right and Republicans in Congress, but the day after the interview, it seemed lost in the muddle. Experts and some of Putin's allies were also puzzled over why he gave short shrift to his main ideological commonality with Carlson's followers: opposition to L.G.B.T.Q. rights and other liberal social causes.
-White House officials have criticized a special counsel's report on President Biden's handling of classified material, claiming it was politically motivated. Vice President Kamala Harris criticized the report as a political attack, while White House Counsel's Office spokesperson Ian Sams called it "inappropriate" and "troubling." The report, released on Thursday, found no criminal charges warranted, but the report's description of Biden as elderly and forgetful led to further criticism. The statement comes as the White House seeks to discredit the report.
-A lawyer for former President Donald Trump's co-defendants in the Georgia election case has suggested that the two prosecutors leading the case had lied about the start of their romantic relationship. The defense lawyer, Ashleigh Merchant, is seeking a witness to testify that the relationship between district attorney Fani T. Willis and special prosecutor Nathan J. Wade began before Willis hired Wade. This contradicts Wade's affidavit, which states that his relationship with Willis began in 2022 after his hiring. Terrence Bradley, a former lawyer, is identified as the witness.
-Finland's presidential election is in its second and final round, marking the first since joining the North Atlantic Treaty Organization in 2017. The election is crucial for Finland's foreign policy and commander in chief, as it faces challenges on its 830-mile border with Russia, the longest with any NATO country.
-President Biden and German Chancellor Olaf Scholz met at the Oval Office to pressure Congress to pass billions more in aid for Ukraine, as legislative dysfunction and opposition among some Republicans have left the critical package in limbo. Scholz hoped Congress would follow their lead and make a decision on providing necessary support, while Biden criticized the congressional gridlock as "close to criminal neglect." The joint pressure amounted to another maneuver in the high-stakes battle over funding for Ukraine as it fights off Russia's invasion.
-Israeli Prime Minister Benjamin Netanyahu has ordered the military to create a "combined plan" to expand its Gaza offensive into Rafah and evacuate its civilian population, despite US and UN pleas not to mount a major offensive. Rafah is home to over 1 million people, forced from their homes by Israel's offensive. The US and UN have both deemed a military operation in Rafah a disaster.
THE NEW YORK POST
-A 15-year-old Venezuelan migrant, Jesus Alejandro Rivas-Figueroa, was arrested by the US Marshals Joint Regional Fugitive Task Force and the NYPD after a robbery in Times Square. Rivas-Figueroa was found in Yonkers, wearing a dark T-shirt, jeans, and a gold necklace. The suspect was taken into custody at a relative's home, where he was found crying and committing adult acts. NYPD spokesman Carlos Nieves said Rivas-Figueroa was brought out in handcuffs crying.
-New York Attorney General Letitia James has expanded her lawsuit against Digital Currency Group and other cryptocurrency defendants, claiming they caused over $1B of losses by misleading investors about the Gemini Earn program. James claims that the scam also ensnared investors who sent money directly to Genesis and were falsely assured their money was safe. She is seeking over $3B of restitution for over 230,000 investors she believes were defrauded.