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    Six-Week Abortion Ban Takes Effect in Florida

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    As Gov. Ron DeSantis of Florida prepared to run for president last spring, he gathered anti-abortion activists in his Capitol office for an unusual bill signing, held late at night and behind closed doors.

    Florida lawmakers had just approved a ban on abortions after six weeks of pregnancy, a major policy shift that would sharply restrict access to the procedure for women in neighboring states as well as for Floridians. That law took effect on Wednesday.

    For Mr. DeSantis, the move seemed like something that would play well among some Republican presidential primary voters in states like Iowa. But this was Florida, and public opinion polls suggested broad opposition to such a strict law.

    So Mr. DeSantis, who typically crisscrosses the state to sign bills, enacted the six-week ban in April 2023 with little fanfare, part of a headlong push into cultural conservatism meant to bolster his national campaign.

    Mr. DeSantis dropped out of the presidential race in January. His culture wars appear to have peaked, at least for now. Voters in a string of states, including more traditionally Republican ones, have chosen to protect or expand abortion rights. A similar ballot measure will go before Florida voters in November, with the potential to significantly influence contests down the ballot.

    Perhaps the biggest political question in Florida, though, is just how much abortion might swing the election. Is it unique enough to turn around a state that has trended reliably Republican?

    The proposed constitutional amendment, known as Amendment 4, would allow abortions “before viability,” or up to about 24 weeks, and would need more than 60 percent support to pass. That threshold is high, especially in the face of an organized opposition campaign characterizing the language as too far-reaching.

    “The average Floridian, when they hear the truth about this extreme amendment, they will vote it down,” State Representative Jenna Persons-Mulicka, a Fort Myers Republican, said last month.

    But some Floridians, including some Republicans, have wondered whether a relentless pursuit of divisive policies ahead of Mr. DeSantis’s presidential run might now be forcing a bit of recalibration to be more in line with the state’s diverse electorate.

    The governor and Republican lawmakers pursued fewer culture war fights during this year’s legislative session. They made it harder for residents to file book challenges in schools. The state also settled a lawsuit filed by opponents of a law prohibiting instruction on sexual orientation and gender identity through the eighth grade.

    “We’re very much Middle America,” said the Rev. Sarah Robinson, pastor of the Audubon Park Covenant Church in Orlando, who attended a “Yes on 4” rally last month. “Middle-class people who are trying to raise families and care for their communities. And there are definitely things that they’d rather be doing than fighting these policies.”

    National Democrats have expressed optimism that the abortion ballot measure could put Florida in play, despite no clear commitment of how much money the party is willing to spend in the state and a substantial Democratic disadvantage in voter registrations. President Biden briefly spoke about the six-week ban in Tampa last week, and Vice President Kamala Harris will travel to Jacksonville to draw attention to the state ban on Wednesday.

    Asked on Tuesday about Democrats’ hopeful claims, Mr. DeSantis offered a dismissive “Pfft” and laughed.

    “I welcome Biden-Harris to spend a lot of money in Florida. Light up the airwaves,” he said, indicating that the funds would be poorly spent. “We are fine with you doing that here, but I can confidently predict that you will see Republican victories, not just at the top of the ticket but up and down the ballot.”

    “This was done to help Ron DeSantis in his ambitious plan to run for president,” State Senator Lauren Book, the Democratic minority leader, said of the ban. “It didn’t work, and it has really created dire, dangerous consequences for women.”

    Florida is full of transplants from the Northeast and Midwest, and their cultural politics have skewed more liberal — or at least more libertarian — than those in other parts of the Deep South. Floridians have elected Republicans while also approving liberal ballot proposals, including ones that raised the minimum wage to $15 an hour, restored felons’ voting rights and legalized medical marijuana.

    Before Mr. DeSantis enacted a 15-week abortion ban in April 2022, Florida allowed abortions up to 24 weeks.

    John Stemberger, the president of Liberty Counsel Action, an anti-abortion lobbying group, said that Florida’s 24-week law had less to do with public opinion and more to do with legal precedent set by the Florida Supreme Court in 1989. The court ruled then that a privacy clause in the State Constitution extended to abortion rights.

    “It didn’t really reflect the demographics of Florida,” Mr. Stemberger said of the old ruling. “It reflected the opinion of seven justices who made a policy-oriented decision.”

    The court, now conservative and nearly entirely appointed by Mr. DeSantis, reversed that position on April 1. Mr. Stemberger credited Mr. DeSantis for stocking his administration with “solid social conservatives” willing to push abortion restrictions: “Personnel is policy.”

    Even with the 15-week ban in place, there was an uptick in abortions in Florida last year, in part because women from other Southern states with stricter laws had traveled to Florida for the procedure.

    Stephanie Loraine Piñeiro, executive director of the Florida Access Network, a fund that helps women in Florida pay for abortions, said that requests for support doubled in April, as the countdown to the six-week ban was underway. The organization increased its budget by 25 percent for the month but still had to turn away some patients.

    “The reality is that people are going to continue to need abortion access,” she said, “regardless of the election cycle.”

    Pfizer lifts profit view on cost cuts, smaller drop in Paxlovid demand

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    By Bhanvi Satija and Sriparna Roy

    (Reuters) -Pfizer lifted its annual profit forecast on Wednesday, and reported first-quarter results that topped Wall Street estimates on cost cuts, a smaller-than-feared drop in sales of its COVID antiviral treatment and strong sales of its pneumonia vaccine.

    Sales of cancer treatment Padcev, which Pfizer gained through its $43 billion deal for Seagen, also came in ahead of analysts’ expectations.

    The Seagen deal, as well as its $4 billion cost-cutting plan, are a key part of Pfizer’s post-COVID growth strategy. Investors have also been tracking the performance of the company’s new RSV vaccine, which has been trailing a rival shot from GSK since they both launched.

    The company raised both ends of its 2024 profit forecast range by 10 cents and now expects to earn $2.15 to $2.35 per share. Shares of the New York-based drugmaker, which have lost 11% of their value this year, rose about 1% to $25.89 in premarket trading.

    Seagen’s targeted cancer therapies Padcev and Adcetris brought in combined sales of $598 million in the quarter for Pfizer, however Adcetris sales fell short of analysts’ expectations.

    “We believe stronger new launch performance and further progress on the pipeline will be necessary to change the current narrative on the stock,” said JP Morgan analyst Chris Schott.

    Pfizer said it still expects $8 billion in combined sales of its COVID-19 products, the vaccine Comirnaty it shares with BionTech and oral antiviral Paxlovid.

    Paxlovid sales dropped 50% to $2.04 billion for the quarter, still well above the $762.5 million analysts had expected.

    Pfizer last year renegotiated a U.S. contract, allowing the government to return unused Paxlovid inventory. It recorded a $771 million favorable adjustment in the quarter related to the U.S. government return of some treatment courses.

    Sales of the COVID vaccine fell 88% to $354 million, missing estimates of $496.5 million.

    Prevnar pneumonia vaccines brought in sales of $1.69 billion, beating estimates of $1.66 billion.

    Sales of Pfizer’s closely watched Abrysvo vaccine for protection against respiratory syncytial virus (RSV) were just $145 million, far short of the $353.3 million expected by analysts.

    Pfizer posted an adjusted profit of 82 cents per share, while analysts on average were expecting it to earn 52 cents, according to LSEG data.

    (Reporting by Bhanvi Satija and Sriparna Roy in Bengaluru; Editing by Arun Koyyur and Bill Berkrot)

    Student unrest ratchets up an already tense election year

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    CNN
     — 

    Dramatic campus protests are injecting an inflammatory new element into an election year that is already threatening to stretch national unity to a breaking point.

    Tensions spiked late Tuesday following an operation by New York Police Department surge teams to reclaim the Columbia University campus from pro-Palestinian demonstrators and followed scuffles, arrests and cancelled classes on at least 25 campuses in 21 states.

    The protests were triggered by the terrible civilian toll of Israel’s war against Hamas in Gaza, but they’re now exposing the country’s ideological schisms and new political currents. America was already on edge with a former and possibly future president on trial. And if the protests endure, they could exacerbate a campaign season sure to worsen the national political estrangement.

    Coast-to-coast demonstrations have seen hundreds of people detained. While most are peaceful, there’s been property damage and some heavy-handed policing – in Texas, for instance. On Tuesday, protesters outside Columbia’s Hamilton Hall chanted “From the River to the Sea, Palestine will be free” – a phrase seen by many Jews as antisemitic. But at Brown University, college authorities and protesters came to an agreement that led to the disbanding of a campus protest camp.

    The nationwide protests highlight what could be a historic moment as young, progressive Americans embrace the Palestinian cause as never before, conjuring political pressures that could challenge long-established bipartisan support for Israel. Yet they’ve also added to a seam of antisemitism in US society that has traumatized many American Jews who feel under threat in their own nation.

    The protests are a new test for President Joe Biden as he seeks reelection with the Gaza war tearing deep rifts in his fragile electoral coalition. The spreading dissent underscores just how badly Biden needs to prevent an Israeli offensive in Rafah in Gaza, which could kill large numbers of civilians and fuel more concentrated protests in the United States. More than 34,000 people in Gaza have already been killed in Israel’s response, according the enclave’s health ministry. Any president torn between implementing what he thinks is in the US national interest – in this case, defending Israel – and his own political imperatives is in a perilous spot, let alone one who is six months from asking voters for a second term. And if protests spread and Biden looks like he’s losing control of the country, the political consequences could be ruinous.

    Footage of protest encampments and chanting students are, meanwhile, a gift for presumptive GOP nominee Donald Trump as he paints a dystopian picture of a nation racked by unrest. His narrative – adopted by conservative media – is misleading but powerful in the hands of such a proficient demagogue.

    On Tuesday, for instance, Trump heaped blame on the sitting president. “We have to stop the antisemitism that’s just pervading our country right now, and Biden has to do something,” he told Fox. “Biden is supposed to be the voice of our country and it’s certainly not much of a voice,” said the ex-president, who has been accused of using antisemitic tropes in past campaign advertising and of appeasing White supremacist and far-right groups like the Proud Boys.

    The demonstrations also mark a new front in an intensifying cultural war over education. Republicans, who’ve long loved to bash elite universities, see a populist opening to enliven their base and crush a pipeline of left-wing ideas.

    At the same time, university presidents are struggling to balance their own principles with controlling ultra-progressive elements of their student bodies who exemplify the mission of higher education by questioning the status quo but are making some fellow students feel scared and are effectively bringing their institutions to a halt.

    And the specter of left-wing extremism is rising as some protests adopt rhetoric that sounds like Hamas or Hezbollah without seeming to acknowledge the Hamas terrorist attacks that killed 1,200 people in Israel in October.

    The protests are reaching a pivotal moment.

    Will they begin to fade as the academic year ends and students go home? Or will they simmer through a long hot summer and burn with even more intensity in the fall, when classes begin again and the nation will be in an even more brittle political state weeks from the election?

    GOP Rep. Elise Stefanik is a driver of the deepening political backlash against campus protests. The New York Republican is a frequent booster of Trump’s democracy-threatening falsehoods about 2020 electoral fraud. But the Harvard graduate made the critical intervention in a House hearing last year that exposed the stunning equivocating by several Ivy League presidents about antisemitism spiking across campuses in the wake of the war in Gaza.

    Stefanik was at House Speaker Mike Johnson’s side on Tuesday as he launched a fresh attempt to skewer Biden and the Democrats over the campus uprisings, after traveling to Columbia last week and demanding the intervention of the National Guard. “This is a moral rot that has taken root across American higher education institutions,” Stefanik said.

    Johnson vowed to use the broad powers of the GOP majority in what looks like an organized effort by a political party to supersede university authorities. “Antisemitism is a virus and because the administration and woke university presidents aren’t stepping in, we’re seeing it spread,” Johnson said. “We have to act and House Republicans will speak to this fateful moment with moral clarity. We really wish those in the White House would do the same.”

    Republican attempts to exploit campus unrest have a long history. Ronald Reagan ran for California governor in 1966 promising to “clean up the mess at Berkeley” and slammed protests over the Vietnam War and civil rights as having more to do with rioting and anarchy than academic freedom. President Richard Nixon often criticized student demonstrations against the war, once referring to college radicals who opposed his policies as “bums.”

    The current GOP attack on campus protests is a no-brainer. The demonstrations are now splitting the Democratic Party between the activism that defines its DNA and party leaders who understand the potential perils ahead if moderate, swing voters – even those who disagree with Biden’s handling of the war – turn against what they perceive to be liberal extremism in an election year. Democrats took years to mostly neutralize the political impact of demands for the defunding of the police that emerged during Black Lives Matter protests in 2020.

    Still, the GOP approach is also tainted with hypocrisy. Republicans have spent years complaining that free speech on campus is under threat and that conservative causes and speakers are being driven out. Now that students are exercising those same rights to protest Israel’s policies, GOP leaders are calling for crackdowns and demanding university leaders call in outside police forces to evict protesters.

    Republicans are also using the drama of student protests as a shield and to downplay their presumptive nominee’s own extremism. Trump has already said the Charlottesville, Virginia, White supremacist rally in 2017 – at which marchers chanted “Jews won’t replace us” and one person died – is peanuts compared to these student protests. The ex-president was accused of not condemning extremists and antisemites forcefully enough when he said there were “very fine people on both sides.”

    Any scenes of violence at protests will also play into GOP hands as key party leaders dissemble about what really happened when Trump’s supporters stormed the US Capitol on January 6, 2021, to try to prevent Biden’s win from being certified. Footage of a protester using a hammer to break into a building at Columbia was playing on a loop on conservative television on Tuesday. And speaking outside the New York courtroom hosting his criminal trial, Trump demanded that protesters be handled just like the hundreds of his supporters convicted for violently breaching the Capitol. “I wonder if that is going to be the same kind of treatment they gave J6?” Trump asked.

    The unrest is so far not comparable since there’s no student mob trying to destroy American democracy. But the former president’s arguments will be persuasive to his millions of supporters and only complicate Biden’s position on the protests.

    The campus protests are so far not close to the scale of Black Lives Matter demonstrations and marches in cities in the US and abroad after the murder of George Floyd by a White police officer in 2020. And they are not yet in the same league as the civil rights and Vietnam War protests in the 1960s and 1970s. But those national movements were tiny to begin with, so there is precedent for student protests growing, and now there is the convening power of social media that can create a sense of common purpose among marchers hundreds of miles apart.

    David Farber, a history professor at the University of Kansas, told Paula Newton on CNN International on Monday that Vietnam-era protests “often started small. They were often dismissed as marginal folks … crazy people, but that anti-war movement did catch fire and students played a major role in it. And eventually the tide turned against the war in Vietnam in US public opinion.”

    The student radicals of the mid-2020s are not political neophytes. They come from a generation that endured fears of mass shootings at high schools, had their lives shuttered by the Covid-19 pandemic and staged walkouts in the Black Lives Matter period.

    It may not be a coincidence either that the student-driven pro-Palestinian protests are taking place in a year when an 81-year-old White man is facing a 77-year-old White man for the presidency. Neither Trump nor Biden have the appeal to younger voters of a John Kennedy or Barack Obama.

    At the same time, with some student protests modest in size compared to the universities that are targeted, it’s not clear the protesters are truly representative of an entire generation on the cusp of a political awakening.

    Still, anger among younger voters over the war has deep implications for the president’s reelection bid. A CNN poll found majority dissatisfaction over Biden’s handling of the war among registered voters nationwide – with 81% of voters under 35 disapproving. A more specific survey of 18-to-29 year-olds published by Harvard University suggests a nuanced view of the war in Gaza. About one fifth of the cohort view Israel’s response to the October 7 attacks as justified, while 32% think it was not justified. Majorities have sympathy for both Israelis and Palestinians. But the Israel/Palestinian crisis is ranked way behind issues like inflation, health care, housing, gun violence, jobs and protecting democracy in terms of its importance to younger voters.

    Still, November’s election is likely to be decided by such close margins that any young voters who defect from Biden or who are simply not motivated to show up could play an outsize role in the swing states that will choose the next president.

    Labor Day holiday, Fed decision

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    An Hour Ago

    Microsoft opens first regional data centre in Thailand

    Tech giant Microsoft announced it will open its first regional data center in Thailand.

    The company said it will also build new cloud and AI infrastructure in Thailand, as well as provide AI skilling opportunities for over 100,000 people

    Microsoft said the data center region will expand the availability of its hyperscale cloud services, “facilitating enterprise-grade reliability, performance, and compliance with data residency and privacy standards.”

    — Lim Hui Jie

    3 Hours Ago

    Mitsui’s full-year profit falls 6%, shares climb as $1.26 billion buyback announced

    Japanese trading house Mitsui and Co reported a 6.4% fall in profit to 1.08 trillion yen ($6.84 billion) for its 2023 financial year ended March 31.

    Profit before tax came in at 1.3 trillion yen, down 6.7% year-on-year, while revenue dipped 6.9% to 13.32 trillion yen compared to the same period last year.

    Despite the poorer results, shares of the company climbed 1.23% as it also announced a 200 billion yen share buyback from May 2 to Sept. 20.

    Mitsui will buy back up to 40 million shares, or 80 million after a share split on July 1.

    4 Hours Ago

    Oil on pace for three straight days of losses amid rising inventory and ceasefire hopes

    Oil prices have fallen for a third straight day as U.S. inventories rise as well as optimism for a ceasefire agreement in the Middle East.

    Brent contracts slid 0.88% to $85.57 per barrel, while U.S. West Texas Intermediate crude saw a larger loss of 1.03% to $81.09 per barrel.

    Reuters reported that U.S. crude oil inventories swelled last week by 4.906 million barrels, while gasoline and distillate stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday.

    — Lim Hui Jie

    6 Hours Ago

    Money market data suggests that yen strengthening may have been intervention: Reuters

    The sudden strengthening of the yen on Monday is likely due to intervention by Japanese authorities, Reuters reported, citing money market data from the Bank of Japan.

    Money market data revealed that the central bank’s projection for Wednesday’s money market conditions indicated a 7.56 trillion yen ($47.91 billion) net receipt of funds.

    Reuters said this compared with a 2.05 billion to 2.30 billion yen estimate from money market brokerages that excludes intervention, adding that currency trades take two days to settle.

    On Monday, the yen weakened to a 34-year low against the greenback, hitting 160.03 before strengthening to about 155 in the space of a few hours.

    6 Hours Ago

    South Korea’s exports post sharp increase in April, beats expectations

    South Korea posted a 13.8% increase in exports in April, a sharp increase compared to the 3.1% rise in March, according to preliminary estimates by the country’s customs service.

    The rise also beat the 13.7% increase expected by economists polled by Reuters.

    Imports to South Korea climbed 5.4%, less than the 6.2% rise expected and a reversal from the 12.3% fall in March.

    As such, the country’s trade balance narrowed to $1.53 billion, down from the $4.29 billion recorded in March.

    — Lim Hui Jie

    7 Hours Ago

    CNBC Pro: Citi names 3 biotech stocks to play a growing $2.9 billion opportunity — giving one about 50% upside

    The outlook is starting to look bright for biotech stocks, according to some.

    With markets now expecting the first rate cut to be in September rather than June or July, as previously thought, biotech stocks could start to do well.

    Biotech encompasses many different areas, but Citi has identified one with a $2.9 billion market — which it says is set for even more growth. According to Citi, the market for it is set to grow by mid-single digit over the next five years.

    CNBC Pro subscribers can read more here.

    — Weizhen Tan

    7 Hours Ago

    CNBC Pro: Only 2 stocks in Europe have beaten estimates for 5 quarters and rallied each time

    Only two European stocks have positively surprised markets every quarter for the past five quarters, according to analysis by CNBC Pro.

    CNBC Pro screened for Stoxx 600 stocks that report EPS figures and have analysts’ estimates available on FactSet.

    One of the stocks stood out for several large share price jumps following quarterly earnings releases. Most recently, the company beat earnings estimates by 6.1% and shares rallied by more than 8% in the following session. Similarly, the stock rallied by 12.8% in a single session four quarters ago.

    CNCB Pro subscribers can read more about the stocks here.

    — Ganesh Rao

    11 Hours Ago

    Bitcoin briefly dips under $60,000, slides to worst month since 2022

    Bitcoin continued its month-long slide to close out April, falling 4% and at one point trading just below the $60,000 level.

    The flagship cryptocurrency is on pace to end the month down 15% and post its first negative month in the past eight. It would be its worst month since November 2022, when FTX collapsed. It’s still up 43% for 2024.

    See Chart…

    Bitcoin (BTC) over the past month

    Stocks whose performance is tied to the price of bitcoin tumbled with the cryptocurrency. Crypto exchange Coinbase fell 6%, while MicroStrategy lost 15%. The software company and self-described Bitcoin development company also reported a loss for the first quarter.

    In the mining sector, Marathon Digital dropped 10.5%, while Riot Platforms lost 8.5%. IREN and CleanSpark were each lower by 7%.

    For more on what’s in store for bitcoin in the month ahead, read our investment outlook here.

    — Tanaya Macheel

    16 Hours Ago

    Consumer sentiment measure hits lowest level since July 2022

    People shop at the Macy’s store on Herald Square in New York City.

    Michael M. Santiago | Getty Images News | Getty Images

    Consumer confidence hit its lowest level since mid-2022 in March as fears grew over employment and inflation, the Conference Board reported Tuesday.

    The board’s main index registered a reading of 97, below the downwardly revised 103.1 in March and missing the Dow Jones consensus estimate of 103.5. This was the lowest level for the index since July 2022, though board officials said their measure of current conditions is still at a fairly healthy level and the headline index has been in a “relatively narrow range” for more than two years.

    Still, there were concerns about where things are headed. Respondents answers reflected that “elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up,” said Dana M. Peterson, the board’s chief economist.

    —Jeff Cox

    18 Hours Ago

    Employment compensation measure increased more than expected in Q1

    Total compensation costs for workers rose by more than expected in the first quarter, providing another sign that inflation pressures are not going away.

    The employment cost index increased 1.2% for the period, faster than the 0.9% in the fourth quarter of 2023 and higher than the Dow Jones estimate for 1%, the Labor Department reported Tuesday. The index is watched by Federal Reserve officials as a sign of underlying inflation.

    On a year over year basis, the index for civilian workers rose 4.2% after having increased 4.8% for the same period in 2023.

    —Jeff Cox

    Takeaways from Day 9 of the Trump hush money trial

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    CNN
     — 

    Judge Juan Merchan handed down his first punishment to Donald Trump for violating the judge’s gag order in the New York hush money trial Tuesday, fining Trump $9,000 for nine violations.

    The judge also warned the former president in his written order that continued violations could also lead to imprisonment – a striking reminder of the historic and surreal nature of this trial.

    Once the trial itself began Tuesday, jurors heard from the attorney who negotiated both the Stormy Daniels and Karen McDougal hush money agreements, Keith Davidson, who detailed his tribulations with Trump’s then-fixer Michael Cohen in the final days of the 2016 campaign to get the money promised to Daniels for her to stay quiet.

    Davidson testified that a tabloid editor believed Daniels’ story would be the “final nail in the coffin” for Trump’s presidential aspirations in October 2016 after the Access Hollywood tape came out. Instead, Davidson negotiated a $130,000 hush money deal with Cohen on Daniels’ behalf, and she did not speak out publicly before the 2016 election.

    Here are the takeaways from day nine of the Trump hush money trial:

    Trump is fined – and faces more later this week

    Before the jury was called in Tuesday morning, Merchan levied a $9,000 fine against the former president for multiple violations of the judge’s gag order barring public discussion of witnesses in the case or the jury.

    Merchan fined Trump for nine violations – $1,000 each, the maximum allowed by law – after prosecutors had filed a motion to hold the former president in contempt over his social media posts and public comments about Cohen, Daniels and the makeup of the jury pool.

    This won’t be Trump’s last run-in with Merchan’s gag order, either. Last week, the district attorney’s office cited another four comments from Trump that allegedly violated the order. Merchan has scheduled a hearing on those violations for Thursday.

    The comments cited by prosecutors pointed to Trump’s continued commentary about witnesses, including that he thought AMI chief David Pecker was “nice.” Prosecutors argued that the remark was a message to other witnesses to “be nice” on the stand.

    In his order, the judge warned Trump that he could be imprisoned if he continues to willfully violate the gag order. Merchan could jail Trump for 30 days for finding him in contempt.

    “The Court will not tolerate continued willful violations of its lawful orders and that if necessary and appropriate under the circumstances, it will impose an incarceratory punishment,” Merchan wrote.

    Stormy’s lawyer takes the stand

    Davidson, an LA-based attorney, represented both McDougal and Daniels when they were shopping stories about their romantic relations with Trump in 2016.

    He described in detail his conversations with American Media Inc.’s then-chief content officer Dylan Howard – aided by text exchanges between the two rich in detail to help freshen up Davidson’s memory – as he cut a $150,000 deal with AMI for McDougal’s story and then struck a $130,000 deal directly with Cohen for Daniels after AMI backed out.

    Davidson said Daniels’ manager, Gina Rodriguez, approached him and asked him to close the deal. “It’s going to be the easiest deal you’ve ever done in your entire life,” Davidson said, before pausing and letting out a little laugh.

    Rodriguez told him it had already been negotiated. “All you have to do is talk to that a**hole Cohen,” Davidson recalled.

    Davidson walked jurors through the contracts he drew up with Cohen and the excuses he got when Cohen initially didn’t pay.

    “I thought he was trying to kick the can down the road until after the election,” Davidson testified about Cohen’s excuses for not coming up with the funding, which prompted him to tell Cohen at one point that the deal was off.

    Davidson’s testimony also provided some lighter moments. In the contract, he used pseudonyms: Peggy Peterson for Daniels because she was the plaintiff and David Dennison for Trump because he was the defendant.

    Assistant district attorney Joshua Steinglass asked if Dennison was a real person. “Yes, he was on my high school hockey team,” Davidson said.

    “How does he feel about you now?” Steinglass asked.

    “He’s very upset,” Davidson said, holding back a laugh.

    Daniels’ attorney also had some choice words for Cohen. Asked to describe Cohen’s demeanor while negotiating the payment with him, Davidson said, “He was highly excitable, sort of a pants on fire kind of guy.”

    Cohen, Davidson added, was like the cartoon dog who yells “squirrel!”

    Cohen’s former banker Gary Farro returned Tuesday morning to walk the jury through Cohen’s bank activity around the payment to Daniels.

    Records show it took Cohen less than 24 hours to open an account for a shell company and use it to wire the money to Daniels’ attorney.

    On October 27, 2016, Cohen pushed his bank to expedite a $131,000 advance on the home equity line of credit tied to his personal property he shared with his wife. That was approved and the money was transferred to the new Essential Consultant LLC account Cohen opened, telling his banker at the time it was for a rushed real estate deal.

    The next morning Cohen wired $130,000 to an account facilitated by Daniels’ lawyer.

    Farro testified that when he dealt with Cohen, 90% of the time it was an “urgent matter.”

    The banker also said First Republic Bank closed all of Cohen’s accounts, leaving only his existing mortgages with the institution, after news of the Daniels hush money payment became public.

    Prosecutors used records custodians to enter several video clips into evidence Tuesday morning.

    Three C-SPAN clips of Trump speaking at public events were played for the jury in open court. Two clips from October 2016 campaign events showed then-candidate Trump vehemently denying allegations from women who publicly accused him of sexual assault after the “Access Hollywood” tape was released earlier that month.

    “As you have seen, right now I’m being viciously attacked with lies and smears. It’s a phony deal. I have no idea who these women are,” Trump says in one clip.

    In a clip from January 11, 2017, President-elect Trump said, “Michael Cohen is a very talented lawyer. He’s a good lawyer in my firm.”



    01:20 – Source: CNN

    Why a defense attorney thinks Judge Merchan didn’t jail Trump over gag order

    Snippets from Trump’s October 2022 deposition taken for his E. Jean Carroll defamation lawsuits were also admitted into evidence and played in court.

    Prosecutors also played a clip from the deposition where Trump described that Truth Social was a platform he opened as an alternative to Twitter. In another clip Trump responds to questions confirming that he is married to Melania Trump, since 2005.

    Jurors also saw Trump identify himself as the speaker in the Access Hollywood tape during that deposition – although no video clip was played in relation to the question about the Access Hollywood tape, nor the tape itself. (The judge previously ruled only a transcript of the audio could be admitted into evidence not the video footage.)

    Trump had several visitors in the gallery behind him in court on Tuesday, beyond the typical accompaniment of aides there each day.

    His son, Eric Trump, attended the trial – the first family member of the former president to appear during the trial. Susie Wiles, Trump’s senior campaign adviser, was sitting beside the former president’s son.

    Ken Paxton, the Texas attorney general, and David McIntosh, who has cofounded conservative political groups including the Club for Growth, stopped into the courtroom for some of Tuesday’s session, too.

    Tuesday’s appearances could be the beginning of a new kind of pilgrimage for Trump’s allies: instead of visiting him at Mar-a-Lago, they come to see the presumptive GOP nominee stand trial in New York.

    Former Trump 2016 campaign adviser Carter Page – who was wiretapped by the FBI and later sued the Justice Department over it – was also inside the Manhattan courtroom, CNN’s Kaitlan Collins reported.

    Though Trump brought a slew of aides and allies with him to court, Page was not sitting near them and instead entered through security with reporters and members of the public. Page declined to comment to CNN on why he was present, but his presence speaks to the circus-like atmosphere that has enveloped Trump’s trial.

    Page was a key name during Robert Mueller’s Russia investigation, and his presence emphasizes the throwback nature of this trial — where many figures from Trump’s past and several whom he no longer speaks with have taken center stage.

    Trump on Tuesday also got another dose of family friendly news: Before the trial began his attorneys had asked for May 17 off so that Trump could attend his son Barron’s graduation. The judge had said he didn’t know yet if that was possible – but on Tuesday, Merchan said things were moving quickly enough that he was comfortable having no court that day so Trump could attend graduation.

    Trump had previously attacked the judge for preventing him from attending Barron’s graduation, even though the judge had only previously said he was withholding a decision on the request.

    Starbucks revises 2024 guidance, after badly missing its Q2 earnings estimates

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    The glass is looking half empty for Starbucks (SBUX) this quarter.

    For its Q2 earnings, the company missed expectations across the board, posting lower than expected revenue, earnings, and same store sales growth, as customers pulled back on the frequency of their visits and size of their orders.

    CEO Laxman Narasimhan called it a “a highly challenged environment.”

    During the earnings call, he added that macro headwinds, “particularly around the pressures that consumers face, particularly with the occasional customer … that’s where the challenge is.”

    This is Starbucks’ first quarterly sales decline since 2020, when COVID shutdowns roiled the industry.

    Revenue for the second quarter dropped 2% year over year to $8.6 billion. Adjusted earnings per share also came in lower, down 8% to $0.68.

    Global same-store sales declined 4% from a year ago, as transactions dropped 6%, which was partially offset by a 2% increase in average ticket size.

    Shares of the coffee chain are down more than 12% in after hours trading.

    Starbucks attempted to lure in customers with afternoon promotions and new offerings like Lavender Lattes, which Narasimhan said “performed nearly as well this past quarter as the PSL (pumpkin spice latte)”.

    However, menu innovations didn’t appear to move the needle for the coffee giant.

    In its North America and US business, same-store sales declined 3%, with foot traffic dropping 7% year over year, though ticket size was up 4%.

    To attract the occasional customers, Starbucks plans to add new promotions to its app. In the US, 31% of all Q2 transactions came through its app. However, the number of 90-day active loyalty members declined to 32.8 million, compared to 34.3 million last quarter.

    Narasimhan also called out speed of service as an area of opportunity. Currently, many customers don’t complete their app orders due to long wait times or lack of product availability. The company is “ramping up supply chain investments to further improve availability,” he said.

    New products like boba tea-like pearls, zero to low calorie energy drinks, and more sugar-free syrups are also on tap.

    For its international business, same-store sales are down 6%, with a 3% decline in foot traffic and ticket size. Similar to that of McDonald’s, Starbucks said conflict in the Middle East weighed on international sales.

    Narasimhan shared his concerns about current events and misinformation being spread about the company in an internal memo in mid-December.

    But China saw the biggest drop, with same store sales down 11%, foot traffic down 8%, and the average ticket size down 4%.

    “Performance was impacted by a decline in occasional customers, changing holiday patterns, a high promotional environment and a normalization of customer behaviors following last year’s market reopening.” Narasimhan said on the call.

    Stores in the US and China make up 61% of the company portfolio.

    The company also revised its 2024 outlook for the third time this fiscal year.

    As of Q2, Starbucks expects 2024 global revenue growth of low-single digits, down from the previous range of 7% to 10%, which itself was down from a prior guidance of 10% to 12%.

    Global and U.S. same-store sales are expected to see a low single-digit decline to flat, down from the previous range of a 4% to 6% growth. China’s same-store sales are expected to see a single-digit decline, down from the previously expected low single digits growth.

    Starbucks originally expected same store growth in the mid-single digits across its markets.

    Here’s what Starbucks reported, compared to Wall Street estimates, per Bloomberg consensus estimates:

    • Adjusted earnings per share: $0.68 versus $0.80

    • Revenue: $8.56 billion versus $9.13 billion

    • Same-store sales growth: -4% versus 1.46%

      • North America: -3% versus 2.05%

      • US: -3% versus 2.31%

      • International: -6% versus 1.36%

      • China: -11% versus -1.62%

    • Foot traffic growth: -6% versus -0.27%

      • North America: -7%, compared to up 6% in Q2 2023

      • International: -3%, compared to up 7% in Q2 2023

    • Ticket size growth: 2% versus 2.41%

      • North America: 4%, compared to up 5% in Q2 2023

      • International: -3%, compared to flat in Q2 2023

    Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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    Where the 10-year yield is a ‘clear problem’ for stocks, Goldman says

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    Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 29, 2024. 

    Brendan Mcdermid | Reuters

    The volatility in the bond market has had equity investors on their toes for months, but at what point will rising yields spoil stocks’ 2024 rally?

    The answer is 5% on the 10-year Treasury yield, according to Goldman Sachs. In a new 19-page paper using market data since the 1980s, the Wall Street firm said when that threshold is reached, the correlation between bond yields and stocks turns negative.

    “While there is no ‘magic number’, historically bond yields at around 5% is when higher yields become a clear problem for equities — that is the point where the correlation with bond yields is no longer decisively positive,” wrote a team of Goldman strategists led by Peter Oppenheimer, chief global equity strategist.

    The benchmark 10-year yield jumped 5 basis points Tuesday to 4.67% after data showed employee compensation costs increased more than expected to start the year. It marked yet another danger sign about persistent inflation, which the market thinks will keep the Federal Reserve on hold until later this year before it starts to consider cutting rates. A basis point equals one-hundredth of a percentage point.

    Goldman said investors are currently in the “optimism phase” of the cycle, where confidence — and complacency — grow, pushing valuations higher.

    “Equity valuations are higher and the cycle is more mature so equity markets are very sensitive to moves in bond yields,” Goldman said. “They underperform with yields moving higher around news of overheating and higher inflation, while they outperform when the market prices Central Banks to cut interest rates.”

    The 10-year Treasury yield, a key barometer for mortgage rates, auto loans and credit cards, has risen almost 80 basis points this year as the market adjusts to a higher-for-longer rate regime. The current rate on the Federal Reserve’s fed funds for overnight lending is 5.25%-5.50%.

    After starting the year forecasting at least six reductions in interest rates, the market is now pricing in a 75% chance of just one rate cut, according to the CME Group’s widely followed FedWatch tracker that derives its probabilities from where 30-day fed funds futures are trading. The central bank’s rate-setting Federal Open Market Committee began its two-day meeting Tuesday.

    Billionaire investor Warren Buffett has long stressed the impact of interest rates on all investments, saying higher rates exert a huge gravitational pull on asset values, lowering the present value of any future earnings.

    Rising yields dent the appeal of risk assets as shorter-dated Treasury bills and longer-dated Treasury notes offer solid yields and a risk-free alternative to stocks.

    — CNBC’s Michael Bloom contributed reporting.

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    China Collides With Philippines Ship, Hits It With Water Cannon: Video

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    A screen grab taken from a video provided by the Philippine Coast Guard showing Chinese Coast Guard ships firing water cannons against Philippines vessels near Scarborough Shoal, South China Sea, on April 30, 2024.
    Philippine Coast Guard

    • A video shows a Chinese ship colliding with a Philippine vessel while firing water cannons.
    • The Philippine Coast Guard says the vessel took damage from the attack.
    • The confrontation, inside the Philippine’s exclusive economic zone, is the latest between the two countries.

    Chinese Coast Guard ships confronted a pair of Philippine vessels this week, harassing, ramming, and firing water cannons at them, according to Philippine authorities.

    Official videos and other footage from media members show the latest flare-up between the two countries as China continues to defy international legal rulings on South China Sea territory and engage Philippine vessels in Manila’s exclusive economic zone.

    The Philippine Coast Guard shared video footage on Tuesday of the incident.

    The footage shows Chinese vessels firing water cannons at a Philippine Coast Guard ship and a vessel of the country’s Bureau of Fisheries and Aquatic Resources, the BRP Bagacay and BRP Datu Bankaw, as the two vessels carried out a “legitimate maritime patrol” near Scarborough Shoal, a contested area of the South China Sea inside the Philippine’s exclusive economic zone where China forcefully exerts control.

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    In the released footage, two larger Chinese vessels surround one of the Philippine ships, firing water cannons from each side.

    “During the patrol, the Philippine vessels encountered dangerous maneuvers and obstruction from four China Coast Guard vessels and six Chinese Maritime Militia vessels,” Philippine Coast Guard spokesperson Commodore Jay Tarriela said.

    The latest confrontation resulted “in damage to the railing and canopy,” Tarriela added, including a picture for evidence. “This damage serves as evidence of the forceful water pressure used by the China Coast Guard in their harassment of the Philippine vessels.”

    The National Task Force for the West Philippine Sea said in a statement that China’s behavior was “shocking and appalling” and that embedded press were able to witness and experience firsthand the “illegal, coercive, aggressive, and dangerous actions” of the Chinese side.

    Local News5 journalist Gio Robles published videos to X from the incident showing scenes from aboard the Datu Bankaw.

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    The Telegraph’s Asia correspondent Nicola Smith was aboard the Philippine Coast Guard ship Bagacay and wrote of the experience that as the Chinese ships hammered the vessel with their water cannons, “all you could hear was the thundering of the water and more frantic shouts of the crew.”

    Smith said the ship’s canopy broke under the intense assault and that the Datu Bankaw suffered interior flooding and damage to the onboard radar.

    China’s Coast Guard said in a post on the country’s Weibo social media platform that it had expelled the Philippine vessels for “intruding” in its waters “in accordance with the law.”

    The Philippines, on the other hand, said the vessels “stood their ground and continued their maritime patrol. They were not deterred and will persist in carrying out their legitimate operations to support Filipino fishermen and ensure their safety.”

    A Chinese Coast Guard ship fires a water cannon at Unaizah May 4, a Philippine Navy chartered vessel, conducting a routine resupply mission to troops stationed at Second Thomas Shoal, on March 05, 2024 in the South China Sea.
    Ezra Acayan/Getty Images

    The video posted on X of a Chinese Coast Guard ship colliding with the Datu Bankaw while spraying it with water notably showed that the Chinese ship was “specifically targeting the Philippine ship’s navigation and communication equipment,” Tom Shugart, a former US Navy officer and current adjunct senior fellow at the Center for a New American Security think tank, wrote on social media.

    “It’s aiming to do damage, not just ward off,” he said.

    It’s the latest fight between the two countries as China continues to dominate disputed waters in the South China Sea, defying international law and asserting its dominance in the strategic waterway. Scarborough Shoal, which has a constant Chinese Coast Guard presence, but the Philippines continues to press its claims to this area.

    There have been numerous Chinese attacks on Philippine ships. A recent one in March saw a Chinese water cannon destroy a Philippine ship’s windows and injure four sailors.

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    The Philippine Coast Guard said Tuesday that China had reinstalled a roughly 1,200-foot floating barrier that “covers the entire entrance of the shoal, effectively restricting access to the area,” a prime fishing spot.

    Star Wars: Hunters launches June 4

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    Free-to-play third-person competitive arena combat game Star Wars: Hunters will launch for Switch, iOS, and Android on June 4, publisher Zynga and developers NaturalMotion and BossAlien announced.

    Here is an overview of the game, via its official website:

    About

    Join the greatest Hunters from across the Star Wars galaxy on the planet of Vespaara where high-stakes competitions are awaiting them in the Arena. Engage in thrilling third-person combat to dominate your opponents in a range of adventurous battlegrounds that evoke iconic Star Wars worlds. Mix and match teams, use skill, tactics and customize your Hunters to find a winning strategy and reap the spoils of victory in the all-new free-to-play game.

    The Planet: Vespaara

    You can find anything on Vespaara—as long as you’re willing to pay for it. Found at the planet’s southern pole, perpetually angled away from the sun, this rocky “oasis” lives in eternal twilight. With every hour considered “magic hour” it is the perfect location to put on the round-the-clock spectacle that the Arena hosts. What’s more, there’s an amazing year-round aurora effect in the sky that constantly shifts and reforms, appearing like a celestial audience of sinister red and purple eyes, always staring down. The show never ends.

    The Hutt Ship

    The centerpiece of the Arena complex is a one-of-a-kind custom-built command ship, the spherical emplacement hovers over the Arena, covered in advertisements for upcoming events and products.

    Battlefields

    • Ewok Village – Based on the forrest moon of Endor, this map includes a faithful depiction of an important Ewok cultural site. This battlefield is full of detailed reproductions of authentic-looking Ewok dwellings and structures: it’s like you’re actually there amongst the trees and high-rise platforms where the fall of the Empire started.
    • Mos Espa Podrace – Hold on to your helmets because this battlefield is a wild ride! Evoking a recreated vista of Mos Espa—home of the famous Boonta Eve Classic Podrace—as its environment; Podrace is where the Arena owners have diverted their repulsor craft pod races to fly through this Tatooine-inspired map to add chaos.
    • Dune Sea Outpost – This arena recreates an abandoned trading outpost on Tatooine where all manner of scum and villainy in the universe once conducted nefarious business deals. Characterized by Mos Eisley architecture, it is now a prime location for smugglers to hide their stolen bounty.
    • Death Star Crossfire – Players will navigate the crossfire of these warring factions, as X-wings and TIE fighters swoop overhead past heavy fire from Turbolaser towers. Navigate devastating crash sites and classic Imperial interiors in this exciting new Arena experience!
    • Vandor Railyard – This new multi-modal map is set on an Imperial Railcrawler Facility, nestled deep in the mountains of Vandor. Players will not only be up against their foes, but they will also face the challenges of the steep cliffs, and you won’t want to be hit by the moving train passing through the map!

    Game Modes

    • Squad Brawl – The first team to reach 20 eliminations wins in this all out assault mode
    • Dynamic Control – In this mode, teams compete to capture rotating Control Points.
    • Power Control – In this mode, Squads must control the majority of Control Points on the battlefield and hold them firmly.
    • Trophy Chase – Two teams aim to hold the Trophy Droid, named TR0-F33! The first Squad to reach 100% wins the game.

    Classes

    • Damage – Inflicting a barrage of heavy attacks, Damage characters are their opponents’ biggest threat.
    • Support – Usually healing and helping out their squad during the match, Support characters are critical in keeping the battle going longer.
    • Tank – Hard to overpower, Tank characters always assert their dominace in the Arena as they take on opponents and keep their team from harm.

    Watch a new trailer below.

    Release Date Trailer

    ‘Euphoria’ diss track tears into Drake amid feud

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    play

    Kendrick Lamar is taking aim at Drake in a brutal new diss track.

    The rapper, 36, on Tuesday tore into Drake on his new song “Euphoria,” marking the latest escalation of their ongoing feud. It’s a response to Drake’s own songs directed at Lamar, who in March rejected the idea that he and Drake are on the same level as rappers.

    If the lyrics didn’t already make it clear enough that the song’s subject was Drake, the title itself is a not-so-subtle reference to the “First Person Shooter” rapper, who is a producer on the HBO series “Euphoria.”

    ‘Euphoria’ lyrics: Kendrick Lamar raps Drake is a ‘scam artist’ in diss track

    In the song, Lamar raps about how the “famous actor we once knew is looking paranoid and now spiraling.” Drake famously began his career as an actor on “Degrassi: The Next Generation.”

    Lamar goes on to call the subject of the track a “pathetic master manipulator” and a “habitual liar” who is “not a rap artist” but “a scam artist.” He says that he makes music “to electrify ’em,” while Drake makes music “to pacify ’em.”

    J. Cole apologizes to Kendrick Lamar for ‘lame’ diss ‘7 Minute Drill’: ‘I was conflicted’

    “I’m the biggest hater. I hate the way that you walk, the way that you talk,” he continues. “I hate the way that you dress. I hate the way that you sneak diss.”

    “How many more fairytale stories about your life ’til we’ve had enough?” Lamar raps. “How many more Black features ’til you finally feel that you’re Black enough?”

    Drake, who is biracial, was previously called out by Pusha T in a similarly vicious feud for a photo featuring him in blackface. After Pusha T used the picture as the cover for his diss track “The Story of Adidon,” Drake said the blackface photo was from 2007 when he was working on a “project that was about young black actors struggling to get roles, being stereotyped and type cast.” Pusha T also revealed Drake had a child, unbeknownst to the public at the time.

    J. Cole takes apparent swipe at Drake in ‘Red Leather’ after Kendrick Lamar diss apology

    Lamar also seems to take a shot at Drake’s relationship with his son, Adonis. “I got a son to raise, but I can see you don’t know nothing about that,” he raps.

    What to know about Kendrick Lamar and Drake’s beef

    Lamar and Drake’s feud goes back more than a decade to 2013, when Lamar rapped on the Big Sean song “Control” about how he wanted to “murder” Drake and other prominent rappers.

    Earlier this year, Lamar appeared on Future and Metro Boomin’s “Like That” and rejected the idea of there being a “big three” in rap, declaring on the track, “It’s just big me.” The lyric was a response to J. Cole referring to himself, Drake and Lamar as the “big three” on Drake’s 2023 track “First Person Shooter.”

    Drake subsequently fired back with two diss tracks directed at Lamar, “Push Ups” and “Taylor Made Freestyle.” “Taylor Made Freestyle” was later pulled from streaming services after Tupac Shakur’s estate threatened to sue over the use of a AI voice imitation. “The unauthorized, equally dismaying use of Tupac’s voice against Kendrick Lamar, a good friend to the Estate who has given nothing but respect to Tupac and his legacy publicly and privately, compounds the insult,” a cease-and-desist from the estate obtained by USA TODAY said.

    Lamar references this on “Euphoria” by rapping that Shakur is turning “in his grave.”

    J. Cole also responded to Lamar on the song “7 Minute Drill” in April, rapping, “He still doing shows but fell off like ‘The Simpsons.” He also rapped that Lamar is past his “prime.” But shortly after releasing the song, Cole apologized and said it was “lame” and “goofy” of him to do so.

    “I ain’t gonna lie to y’all the past two days felt terrible,” he told the audience at the Dreamville Festival days later, going on to call Lamar as “one of the greatest.”

    Listen to Kendrick Lamar’s Drake diss track ‘Euphoria’

    Kendrick Lamar’s Drake diss track “Euphoria” is available to stream on YouTube, where the display photo shows the dictionary definition of the title word.

    Contributing: Naledi Ushe and KiMi Robinson, USA TODAY