Month: March 2024

(Reuters) – The biggest operational crane on the U.S. Eastern Seaboard towered over Baltimore’s port on Friday, ready to begin clearing the wreckage of the Francis Scott Key Bridge days after a cargo ship crashed into it, sending the span crashing into the harbor.

Crews were still surveying the damage as of midday Friday. The crane, which can lift up to 1,000 tons, arrived late Thursday night and will probably start hauling debris out of the water on Saturday morning, according to U.S. Coast Guard spokesperson Carmen Carver.

A second crane is en route and expected to arrive soon to assist the effort, she said.

State and federal authorities are focused on clearing the busy port and rebuilding the bridge after the Dali, a massive container ship that had lost power, plowed into a support column early on Tuesday, toppling the structure and leaving six workers presumed dead.

Divers have recovered two bodies of the missing construction workers, who were repairing the bridge at the time of the collision. The remaining four are believed to be trapped beneath the water. All were immigrants from Mexico and Central America.

Finding the remaining bodies is the top priority, Maryland Governor Wes Moore told a press conference on Thursday. Crews must also assess how to remove the stuck vessel, loaded with thousands of containers and trapped by bridge debris.

“The Dali is almost as long as the Eiffel Tower, and the Dali has the Key Bridge on top of it. We’re talking 3,000 or 4,000 tons of steel that’s sitting on top of that ship, so we’ve got work to do,” Moore said at Thursday’s press conference.

Within hours of Moore’s request for emergency funds, the U.S. government on Thursday had awarded Maryland $60 million to clear debris and begin rebuilding the bridge, a reflection of how critical the infrastructure is to shipping and transportation industries along the Eastern Seaboard.

Three days after the tragedy, the jobs of some 15,000 people whose work revolves around daily port operation are on hold. Maryland lawmakers are looking to pass emergency legislation to provide income replacement for those affected, the state senate president said this week.

The situation poses a temporary risk to the area’s economy, since the port receives the greatest share of U.S. auto imports and is one of just four on the U.S. east coast with the 50-foot channel needed for larger cargo boats, bond rating agency Moody’s (NYSE:MCO) Investors Service said.

Replacing the 47-year-old bridge will likely require “years of work,” but the port, whose operations recently surpassed pre-pandemic levels, could reopen within weeks, “if debris is rapidly removed,” according to a Moody’s report.

“As long as the port is closed, diversion of automotive imports and other cargo to other East Coast ports will erode Baltimore’s advantage as the port closest to the Midwest, to the detriment of terminal operators,” the report said.

By Jeff Mason

NEW YORK (Reuters) -President Joe Biden and his Democratic predecessor, Barack Obama, headlined a star-studded fundraiser with former President Bill Clinton on Thursday, offering a robust defense of the White House’s handling of the Gaza crisis as protesters interrupted the event.

Biden, who traveled with Obama on Air Force One to New York, took part in a discussion with Clinton moderated by “The Late Show” host Stephen Colbert at the iconic Radio City Music Hall in front of thousands of guests. Organizers say the event raised more than $25 million for Biden’s U.S. reelection campaign.

But the fundraiser was punctuated by several protests inside the massive auditorium, with attendees rising at several different moments to shout over the discussion, referencing Biden’s backing of Israel in the Hamas war that has killed more than 30,000 people in Gaza.

“Shame on you, Joe Biden!” one yelled.

Obama and Clinton offered a presidential perspective of the Gaza crisis that stressed the political realities of being in the White House.

A president needs to be able to support Israel at the same time as fighting for Palestinians to have more access to food, medical supplies and a future state, they said.

“It’s a lonely seat,” Obama said. “One of the realities of the presidency is that the world has a lot of joy and beauty, but it also has a lot of tragedy and cruelty.”

People “understandably, oftentimes, want to feel a certain purity in terms of how those decisions are made,” he said. “But a president doesn’t have that luxury.”

When a protestor inside the theater interrupted Obama, the former president snapped back: “You can’t just talk and not listen…That’s what the other side does.”

The pair of former presidents also defended Biden’s handling of the economy, which gets low ratings in national polls.

Clinton said Biden’s economic numbers have significantly outpaced Trump’s administration.

“I believe in keeping score,” Clinton said. “He’s been good for America” and deserves another term.

Before the event, the three leaders’ motorcade passed hundreds of protesters demonstrating against Israel’s war with Hamas in Gaza, another sign that some young voters and other progressives who voted for Biden in 2020 are furious about his staunch backing of Israel in its response to the Oct. 7 Hamas attacks.

LIZZO, $500,000 TICKETS

The event included musicians Queen Latifah, Lizzo, Ben Platt, Cynthia Erivo and Lea Michele performing. Some high-paying attendees had their pictures with the three presidents taken by celebrity photographer Annie Leibovitz.

Former President Donald Trump, Biden’s Republican challenger in November’s election, was in the New York area on Thursday as well, attending a wake for a slain New York City policeman.

Biden, 81, has faced concerns about his age and fitness for a second four-year term. Recent Reuters/Ipsos polls show his approval rating at 40% and in a tight race with Trump, 77, ahead of the Nov. 5 election.

The show of support from Biden’s predecessors was meant to demonstrate party unity and project fundraising strength.

Tickets for Thursday’s Biden event cost between $250 and $500,000, according to a Democrat familiar with the planning. More than 5,000 people were expected to attend.

Biden’s high-profile allies are seeking to shore up his support despite opinion polls showing tepid enthusiasm for the president and in contrast to a Republican Party where many major figures oppose Trump.

Biden showed flashes of humor at the event. He referenced President Harry Truman’s advice that if you wanted a friend in Washington, get a dog. Biden quipped that he got one and it bit a Secret Service agent. The president’s dog Commander left the White House last year after a series of biting incidents.

The event closed with each of the men donning aviator sunglasses, Biden’s trademark.

“Dark Brandon is real,” Biden bellowed, referencing a meme about himself.

TRUMP IN LONG ISLAND

Earlier on Long Island, east of New York, Trump attended a wake for Jonathan Diller, the policeman who was gunned down during a routine traffic stop earlier this week in the city.

“These things can’t happen. We need law and order,” Trump, surrounded by mourning uniformed officers, told reporters gathered outside a funeral home in Massapequa.

Trump has sought to make supporting police a focal point of his campaign, while criticizing law enforcement that targets him.

He faces four criminal trials for his efforts to undermine the 2020 election, his mishandling of classified documents and his involvement in a “hush money” scheme involving a porn star. He was fined hundreds of millions of dollars for overstating his net worth to lenders. He says he is innocent.

Biden has been routinely outraising Trump and is taking in more money than his rival in big donations and small donations under $200. Biden’s reelection effort raised more than $53 million in February and $10 million in the 24 hours following his March 7 address to Congress.

Trump aims to raise $33 million in an April 6 fundraiser, a source familiar with the Republican’s plans told Reuters.

A Trump campaign adviser said on Thursday the candidate won’t be able to match Biden’s totals, blaming the disparity on the Democrat’s “billionaire” supporters and painting a picture of a Trump campaign fueled by grassroots, working-class supporters.

By Lucia Mutikani

WASHINGTON (Reuters) -U.S. prices increased less than expected in February, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Federal Reserve on the table.

The report from the Commerce Department on Friday also showed consumer spending rising by the most in just over a year last month, underscoring the economy’s resilience. The United States continues to outperform its global peers despite higher borrowing costs, thanks to persistent labor market strength.

“Core services inflation is slowing and will likely continue throughout the year,” said Jeffrey Roach, chief economist at LPL Financial (NASDAQ:LPLA) in Charlotte, North Carolina. “By the time the Fed meets in June, the data should be convincing enough for them to commence its rate normalization process.”

The personal consumption expenditures (PCE) price index rose 0.3% last month, the Commerce Department’s Bureau of Economic Analysis said. Data for January was revised higher to show the PCE price index climbing 0.4% instead of 0.3% as previously reported. Goods prices rose 0.5% last month, boosted by a 3.4% jump in the cost of gasoline and other energy products.

There were also strong increases in the prices of recreational goods and vehicles as well as clothing and footwear. But prices for furnishings and household equipment, and other long-lasting manufactured goods were subdued.

In the 12 months through February, PCE inflation advanced 2.5% after increasing 2.4% in January.

Economists polled by Reuters had forecast the PCE price index gaining 0.4% on the month. Though price pressures are subsiding, the pace has slowed from the first half of last year.

Fed officials last week left the U.S. central bank’s policy rate unchanged in the current 5.25%-5.50% range, having raised it by 525 basis points since March 2022.

Policymakers anticipate three rate cuts this year. Financial markets expect the first rate reduction in June. Fed Governor Christopher Waller said on Wednesday, “there is no rush to cut the policy rate” right now, but he did not rule out trimming borrowing costs later in the year.

Most U.S. financial markets were closed for the Good Friday holiday, with the exception of the foreign exchange market. The dollar slipped against a basket of currencies on the data.

Excluding the volatile food and energy components, the PCE price index increased 0.3% last month. That followed an upwardly revised 0.5% gain in January. The so-called core PCE price index was previously reported to have advanced 0.4% in January.

Core inflation increased 2.8% year-on-year in February, the smallest gain since March 2021, after rising 2.9% in January. The Fed tracks the PCE price measures for its 2% inflation target. Monthly inflation readings of 0.2% over time are necessary to bring inflation back to target.

Services prices increased 0.3%, slowing after a 0.6% jump in January. The cost of housing and utilities rose 0.5%. There were also solid increases in the prices of recreation services as well as financial services and insurance.

But the cost of dining out and hotel and motel rooms was unchanged, while transportation services barely rose and healthcare increased marginally.

PCE services inflation excluding energy and housing gained 0.2% last month after surging 0.7% in January. Policymakers are monitoring the so-called super core inflation to gauge their progress in fighting inflation.

With inflation slowing consumers boosted their spending. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8% last month. That as the largest gain since January 2023 and followed a 0.2% rise in January.

When adjusted for inflation, consumer spending rebounded 0.4% after dropping 0.2% in January. The increase in the so-called real consumer spending suggested that consumption likely retained most of its momentum in the first quarter, which bodes well for the economy’s prospects.

But much of the spending was funded from savings as growth in personal income slowed. The saving rate dropped to 3.6%, the lowest level since December 2022, from 4.1% in January.

India’s technology giant Infosys (NS:INFY) Limited is scheduled to announce its fourth-quarter results for fiscal 2024 and provide revenue guidance for fiscal 2025 on April 18, after market close. The announcement is set to significantly influence Infosys stock, according to a report by Morgan Stanley.

The research firm’s analysis presents three scenarios for Infosys following the announcement. The most likely scenario, given a 60% probability, suggests Infosys will guide for 3-6% year-over-year revenue growth in constant currency terms and set an EBIT margin range of 20-22%. This outlook is based on strong deal wins in fiscal 2024 and an expected recovery in the second half of the year.

In a less optimistic scenario, assigned a 20% probability, Infosys might project revenue growth of only 2-5%. This outlook would reflect ongoing constraints on discretionary spending and difficulties in achieving revenue from finalized deals. On a brighter note, with the same 20% likelihood, the company could expect a revenue growth of 4-7%, banking on an upswing in discretionary spending during the latter part of fiscal 2025. 

These scenarios imply varying impacts on Infosys stock price. The base case scenario could lead to a 4% appreciation, aligning with positive market reactions to the company’s steady performance. The pessimistic outlook might result in a 3% decline in stock value, while the optimistic scenario could boost the stock price by 11%.

Morgan Stanley has reiterated its Overweight rating on Infosys, with a price target of Rs 1750, indicating a 17% upside from its last close of Rs 1498.05 on March 28.

The firm cites Infosys’s strong execution and innovative service offerings as the basis for its positive stance but warns of risks including geopolitical tensions, regulatory changes, and currency fluctuations that could impact performance.

Infosys reported consolidated net profit for the quarter ending in December at Rs 6,106 crore, down 7% from Rs 6,586 crore the previous year. The company’s revenue from operations for the third quarter saw a modest increase of 1% to Rs 38,821 crore, up from Rs 38,318 crore in the year-ago quarter.

Bitcoin price fell slightly on Friday while most financial markets stay shut for a public holiday. The largest cryptocurrency by market capitalization is sliding along with risk-correlated currencies and settling back into the middle of the narrow range above the $70,000 mark where it’s been trading throughout the week. 

The rangebound trading comes amid tepid flows into the U.S.-based spot Bitcoin ETFs and increased outflows of Grayscale’s GBTC fund. Europe and U.S. stock markets will remain closed on Friday, March 29, in recognition of Good Friday.

Cryptocurrencies saw a modest rally earlier in the week, with Bitcoin (BTC) price soaring above $70,000 for the first time in ten days. This marks a rebound from recent downturns, scoring a more than 7% increase for the week. Ethereum (ETH) also enjoyed gains, rising by 6% in the same timeframe. 

Short-term intraday traders probably viewed the dip as a chance to buy into Bitcoin at an attractive entry point, creating a widespread sentiment that the worst of this downward correction is firmly in the past.

The positive momentum wasn’t limited to Bitcoin and Ethereum; major layer-1 blockchain tokens such as Solana (SOL) and Avalanche (AVAX) saw advances exceeding 10%. 

The comeback resulted in the liquidation of $195 million in leveraged derivatives positions across various cryptocurrencies, with around $129 million of these betting on falling prices. Bitcoin short liquidations amounted to $53 million, which is below the average daily total seen in the recent weeks.

The modest number of short liquidations despite the price increase indicates that few traders were betting against the market with leverage, expecting further downturns. The price jump this week may mark the end of the downturn cycle in the cryptocurrency market, which saw Bitcoin’s value fall below $61,000 from highs above $73,000. 

Bitcoin might be setting its sights on new record highs after it breaks out from a consolidation pattern it has formed on the daily chart. The upside scenario is supported by a number of central banks adopting a more dovish stance toward the monetary policy, which is expected to favor Bitcoin.

Despite the recent swings in the crypto market, analysts are still positive about Bitcoin’s future prospects.

Markus Thielen, CEO of 10X Research, recently posted an analysis on the X platform, hinting at a possible Bitcoin price rally. His analysis particularly focuses on Bitcoin’s performance history in April, suggesting the cryptocurrency might see a 12% increase.

Thielen points out that April has historically been a good month for Bitcoin, with six out of the last ten years showing strong price gains. 

Furthermore, the current fluctuations in Bitcoin’s value are being linked by some analysts to the pre-halving phase. Experts note that the pre-halving retracement, a pattern found in past data, highlights Bitcoin’s volatility, which often leads up to substantial price surges.