New york business – Deborah J Miller http://deborahjmiller.com/ Sat, 25 Sep 2021 23:15:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://deborahjmiller.com/wp-content/uploads/2021/06/icon-35-150x150.png New york business – Deborah J Miller http://deborahjmiller.com/ 32 32 SBA Administrator Visits Brooklyn Businesses Devastated By Ida’s Flood https://deborahjmiller.com/sba-administrator-visits-brooklyn-businesses-devastated-by-idas-flood/ Sat, 25 Sep 2021 22:45:28 +0000 https://deborahjmiller.com/sba-administrator-visits-brooklyn-businesses-devastated-by-idas-flood/ News 12 Staff Sep 25, 2021, 10:45 p.m. Updated: Sep 25, 2021, 10:45 p.m. A director of the Washington DC Small Business Administration and a representative from New York on Saturday visited some of the many businesses in Brooklyn that are still recovering from Ida. The extreme weather from the storm hit New York City […]]]>

A director of the Washington DC Small Business Administration and a representative from New York on Saturday visited some of the many businesses in Brooklyn that are still recovering from Ida.

The extreme weather from the storm hit New York City with record flooding that left many New Yorkers in waist-deep water and cost some businesses everything.

SBA Administrator Isabella Casillas Guzman stood alongside Representative Nydia Velázquez to meet with business owners and see firsthand the damage Ida left behind.

“We have seen that our infrastructure in New York is not equipped to withstand the kind of weather we saw during Ida,” Velázquez said.

Their first stop of the day was at Lucy’s Lounge, a Park Slope staple known for its signature cocktails. The company’s basement was flooded during Ida and cost her months of inventory.

It is in situations like these that the SBA has said it can offer relief through economic disaster loans.

“We fund local small business development centers and women’s business centers and veterans business centers,” said Casillas Guzman.

“Let’s get the work done from the people and provide the resources to equip every business,” Velázquez said.

A total of 350 nominations were submitted to Brooklyn just in response to Ida’s remains, but it’s only a small fraction of the thousands who are suffering.

“This is why it is so important that Congress gets down to business,” Velázquez said.

“Anyone can come in and get the direct help of an SBA advisor to go through the process,” said Casillas Guzman.

Casillas Guzman added that she hopes that economic aid will be given to all through these recovery efforts.


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Canadians released after Huawei CFO resolves US charges https://deborahjmiller.com/canadians-released-after-huawei-cfo-resolves-us-charges/ Sat, 25 Sep 2021 02:37:22 +0000 https://deborahjmiller.com/canadians-released-after-huawei-cfo-resolves-us-charges/ NEW YORK (AP) – Two Canadians detained in China for espionage were released from jail and airlifted out of the country on Friday, Prime Minister Justin Trudeau said, just after a senior executive at Chinese communications giant Huawei Technologies concluded an agreement with the United States. Ministry of Justice on fraud charges and flew to […]]]>

NEW YORK (AP) – Two Canadians detained in China for espionage were released from jail and airlifted out of the country on Friday, Prime Minister Justin Trudeau said, just after a senior executive at Chinese communications giant Huawei Technologies concluded an agreement with the United States. Ministry of Justice on fraud charges and flew to China.

The frenzied chain of events involving the world powers has brought an abrupt end to the legal and geopolitical feuds that, over the past three years, have disrupted relations between Washington, Beijing and Ottawa. The three-way deal allowed China and Canada to each bring home their own detained citizens as the United States completed a criminal case against a prominent tech leader who had been mired in an extradition battle for months.

The first activity took place on Friday afternoon when Meng Wanzhou, 49, chief financial officer of Huawei and daughter of the company founder, reached an agreement with federal prosecutors calling for the fraud charges against her to be rejected next year and allowing him to return to China. at once. As part of the deal, known as the Deferred Prosecution Agreement, she accepted responsibility for distorting the company’s business relationship in Iran.

About an hour after Meng’s plane left Canada for China, Trudeau revealed that Canadians Michael Kovrig and Michael Spavor were also on their way home. The men were arrested in China in December 2018, shortly after Canada arrested Meng following an extradition request from the United States. Many countries have called China’s action a “hostage policy”.

“These two men went through an incredibly difficult ordeal. Over the past 1,000 days, they have shown strength, perseverance and grace and we are all inspired by them, ”Trudeau said.

The news of Meng’s imminent return was a major topic on the Chinese internet and in the midday report on state broadcaster CCTV, with no mention of the release of Kovrig and Spavor.

Foreign Ministry spokesman Zhao Lijian reposted a report on Meng’s departure from Canada on social media, adding “Welcome home.”

A video was also posted online of Meng speaking at Vancouver International Airport, saying; “Thank you homeland, thank you to the people of the homeland. You have been my biggest pillar of support.

The deal came as President Joe Biden and his Chinese counterpart Xi Jinping sought to ease signs of public tension – even as the world’s two dominant economies disagree on issues as diverse as cybersecurity, the climate change, human rights and trade and tariffs. Biden said in a speech to the United Nations General Assembly earlier this week that he did not intend to start a “new cold war.” while Xi told world leaders that disputes between countries “must be dealt with through dialogue and cooperation.”

“The US government joins the international community in welcoming the decision of the authorities of the People’s Republic of China to release Canadian citizens Michael Spavor and Michael Kovrig after more than two and a half years in arbitrary detention. We are happy that they are returning home to Canada, ”US Secretary of State Antony Blinken said in a statement.

As part of the deal with Meng, which was leaked in federal court in Brooklyn, the Justice Department agreed to dismiss fraud charges against her in December 2022 – exactly four years after her arrest – on condition that it comply with certain conditions, including not contesting any of the government’s factual allegations. The Justice Department also agreed to drop her request for Meng’s extradition to the United States, which she had vigorously contested., ending a process that prosecutors say could have persisted for months.

After appearing by videoconference for her hearing in New York, Meng made a brief appearance in Vancouver court, where she was released on bail living in a multi-million dollar mansion while the two Canadians were held in cells. Chinese prison where the lights were on. 24 hours a day.

Outside the courtroom, Meng thanked the Canadian government for upholding the rule of law, expressed his gratitude to the Canadian people and apologized “for the inconvenience.”

“Over the past three years my life has been turned upside down,” she said. “It was a disruptive time for me as a mother, wife and business leader. But I believe every cloud has a silver lining. It was truly an invaluable experience in my life. I will never forget all the good wishes I received.

Soon after, Meng left on an Air China flight to Shenzhen, China, where Huawei’s headquarters are located.

Huawei is the world’s largest supplier of network equipment for telephone and Internet companies. It has been a symbol of China’s progress to become a global technological powerhouse – and a subject of US security and law enforcement concerns. Some analysts say Chinese companies have flouted international rules and standards and stolen the technology.

Case against Meng stems from January 2019 indictment from the Trump administration’s Justice Department who accused Huawei of stealing trade secrets and using a Hong Kong shell company called Skycom to sell equipment to Iran in violation of US sanctions. The indictment also accused Meng herself of committing fraud by misleading HSBC bank about the company’s business dealings in Iran.

The indictment came amid a broader Trump administration crackdown on Huawei over concerns from the US government that the company’s products could facilitate Chinese espionage. The administration cut off Huawei’s access to the United States components and technologies, including Google Music and other smartphone services, and later banned suppliers around the world from using American technology to produce components for Huawei.

The Biden White House, meanwhile, has maintained a hard line on Huawei and other Chinese companies whose technology is believed to pose national security risks.

Huawei has repeatedly denied claims by the US government and safety concerns with its products.

Meng had long fought the Justice Ministry’s extradition request, with her lawyers calling the case against her flawed and claiming that it was being used as a “bargaining chip.” in the political game. They cited a 2018 interview in which then-President Donald Trump said he would be prepared to intervene in the case if it helps secure a trade deal with China or helps security interests. the United States.

Last month, a Canadian judge did not decide whether Meng should be extradited to the United States after a lawyer for the Canadian Department of Justice concluded his case by saying there was enough evidence to show that he ‘she was dishonest and deserved to be tried in the United States.

Comfort Ero, acting vice president of the International Crisis Group, Kovrig’s employer, said they had been waiting for the news for more than 1,000 days.

“Michael Kovrig is free. In Beijing: We welcome this most just decision. In Ottawa: Thank you for your unwavering support to our colleague. In the United States: Thank you for your willingness to support an ally and our colleague. To the inimitable, tireless and inspiring Michael Kovrig, welcome home! Ero said in a statement.

____

Tucker reported from Washington and Gillies from Toronto. Associated Press writer Jim Morris in Vancouver, Canada, contributed to this report.


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The mayor of Blasio appoints Gabrielle Fialkoff commissioner of the Ministry of Parks and Recreation https://deborahjmiller.com/the-mayor-of-blasio-appoints-gabrielle-fialkoff-commissioner-of-the-ministry-of-parks-and-recreation/ Fri, 24 Sep 2021 17:43:29 +0000 https://deborahjmiller.com/the-mayor-of-blasio-appoints-gabrielle-fialkoff-commissioner-of-the-ministry-of-parks-and-recreation/ September 24, 2021 NEW YORK– The mayor of Blasio today appointed Gabrielle Fialkoff as the next commissioner of the Ministry of Parks and Recreation. Fialkoff, a former senior advisor to the mayor, brings more than 20 years of experience leading organizations and working in government, nonprofit, philanthropic and business sectors. She will begin her role […]]]>

September 24, 2021

NEW YORK– The mayor of Blasio today appointed Gabrielle Fialkoff as the next commissioner of the Ministry of Parks and Recreation. Fialkoff, a former senior advisor to the mayor, brings more than 20 years of experience leading organizations and working in government, nonprofit, philanthropic and business sectors. She will begin her role on Monday. Fialkoff succeeds outgoing Interim Commissioner Margaret Nelson, who will resume her duties as Deputy Commissioner for Urban Parks Services and Public Programs.

Gabrielle Fialkoff is committed to tackling inequalities and has shown her dedication to providing opportunities for open spaces and outdoor recreation in neighborhoods that have often been overlooked, under-invested and disconnected from the possibilities that the city has to offer. New York has to offer, “said Mayor Bill de Blasio. “It’s proven successful in bringing people together, aligning interests and delivering results to ensure communities get the resources they deserve. She is a natural fit to lead the Department of Parks and Recreation as we guarantee recovery for all of us. “

“In Gabrielle’s previous work with this administration, she launched a new approach to municipal government and philanthropy by creating the Office of Strategic Partnerships,” said Vicki Been, Deputy Mayor of Housing and Economic Development. “His work on programs like Building Healthy Communities and Connections to Care will be especially helpful as we continue to make fair investment in our parks a cornerstone of our recovery. I look forward to working with Gabrielle in her new role and I want to thank Acting Commissioner Nelson for her incredible work leading the agency over the past few months.
“I am delighted to take on the role of Parks Department Commissioner and to have the opportunity to work with its dedicated public servants who, through their enthusiasm, commitment and hard work, improve the lives of all New Yorkers. “, said New York Parks Commissioner Gabrielle Falkoff. “The pandemic has highlighted what an extraordinary resource the city’s parks can be for every New Yorker – they have become our classrooms, our living rooms, our respite and our peace of mind. Together, we will continue the work of helping the city recover and ensuring that every neighborhood has access to safe and vibrant open spaces. Thank you, Mayor de Blasio, it is a privilege to serve New York City, and I am honored to join the Parks team.
Fialkoff served as the Mayor’s Senior Advisor from 2014 to 2018, where she created the Office of Strategic Partnerships to engage the private sector in tackling inequality through high-impact public-private partnerships. Fialkoff launched Building Healthy Communities, a city initiative that created the country’s first urban farms on social housing, built 50 mini football pitches in underserved neighborhoods, expanded free exercise classes in parks and recreation centers, supported community gardens and brought communities together to participate in improving their health.

She has led initiatives such as the Youth Employment Center, which offered 100,000 internships and summer jobs per year to young people, Computer Science for All, a public-private partnership to provide computer training to all New York public school students, and invested over $ 420 million. private financing to fight income inequalities.

In March 2020, Fialkoff temporarily returned to serve as the senior advisor for COVID relief efforts to the mayor, leveraging her experience and relationships in crisis management to aid the city’s response efforts to the pandemic. Prior to working for the city government, Fialkoff had a successful business career, growing his fashion business from an early stage company to an industry leader. Earlier in her career, she worked on President Bill Clinton’s New York campaigns and Hillary Clinton’s historic first candidacy for the United States Senate.

“Gabrielle understands that no sector can tackle inequalities alone,” said Darren Walker, President of the Ford Foundation. “She has been a leader in government in bringing together the philanthropy and corporate sectors to leverage public resources with strategic private investments that engage the community every step of the way. His creativity and drive led to the first social housing farms and over 100,000 summer jobs for young people in New York City. I applaud his appointment.

“Gabrielle can accomplish more in four months than most people can do in four years,” said Kathryn Wylde, President and CEO of Partnership for New York City. “She will be a tremendous advocate for parks at a time when New Yorkers cherish their outdoor green space more than ever.”

“For over 20 years, I have watched Gabrielle demonstrate insight in bringing together partners from the nonprofit sectors, business and government to get things done effectively and with a real sense of purpose, in order to have lasting impact, ”said Jean Calvelli, Executive Vice President of the Wildlife Conservation Society. “These skills are essential in enabling the Parks Department to respond more equitably to the needs of New York City, and I am delighted to be working with Gabrielle in this role.

“I know, working with Gabrielle, that she not only shares the Parks Department’s commitment to fairness in parks, but that she is the right steward to continue the work of improving the lives of all. New Yorkers, especially in communities where we have historically been underinvested, “said Mitchell Silver, FAICP. “His leadership skills will help advance New York City’s recovery and ensure that all New Yorkers have access to New York City’s most important assets, our parks.”

“In the five boroughs, park spaces, large and small, mingle with city streets to create an urban fabric unique to New York,” said Jessica Lappin, President of the Alliance for Downtown New York, which runs the city’s largest business improvement district. “Gabrielle understands this interaction and the opportunity it offers for creative initiatives that can bring the benefits of parks to every New Yorker.”

Fialkoff is a director of FIT, a member of the board of directors of Stockade Works and a graduate of Colgate University. She lives with her family in New York.

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Payment of the China Evergrande bond remains uncertain https://deborahjmiller.com/payment-of-the-china-evergrande-bond-remains-uncertain/ Fri, 24 Sep 2021 00:08:18 +0000 https://deborahjmiller.com/payment-of-the-china-evergrande-bond-remains-uncertain/ China Evergrande, the real estate giant whose financial woes rocked global markets earlier this week, again left investors in a state of uncertainty on Thursday with the fate of an 83 million interest payment. dollars still unresolved. Payment, on Evergrande’s dollar-denominated bonds, was due Thursday. At the end of the business day in New York […]]]>

China Evergrande, the real estate giant whose financial woes rocked global markets earlier this week, again left investors in a state of uncertainty on Thursday with the fate of an 83 million interest payment. dollars still unresolved.

Payment, on Evergrande’s dollar-denominated bonds, was due Thursday. At the end of the business day in New York City, the company still had not publicly said whether it had made the payment or planned to do so.

A bondholder, speaking on condition of anonymity to discuss the case, said he had not been paid. But, the person noted, the company’s covenants give it a 30-day grace period before the missed payment results in default, meaning debtors in limbo can continue.

The concern extends to landowners and policymakers in China who would face the fallout from a possible default. A constant stream of negative news from Evergrande has caused panic in the markets and raised fears of possible economic contagion, including outside of China – in the event of bankruptcy of the company. Unable to sell part of his business sprawl or raise new money from the sale of new properties, Evergrande also faces angry suppliers, homebuyers and employees, some of whom have protested. and claimed their money.

Tensions in global financial markets have eased more recently, in part when Chinese officials intervened to boost confidence – including injecting billions of dollars in capital into the country’s banking system – and also after several executives of banks and central bank officials outside of China said the impact on institutions in the United States and Europe is expected to be minimal.

On another key question for investors, whether China will directly bail out Evergrande, so far Beijing has been low key while stressing that no Chinese company is too big to fail.

This helped Evergrande say on Wednesday that it had reached an agreement with investors on a different payment due for mainland Chinese bondholders.

Given this development, Houze Song, a researcher at the Paulson Institute in Chicago, said Evergrande was likely to make Thursday’s interest payment. He said bondholders and Evergrande could eventually strike a short-term deal that involves debt holders losing some of their exposure to Evergrande.

The fate of Evergrande and what its failure could mean for the Chinese economy has divided some of the world’s best-known investors. Billionaire investor George Soros recently argued that an Evergrande collapse would trigger a wider economic crash, while another billionaire investor, Ray Dalio, argued this week that an Evergrande default was “manageable. “.

Investors in dollar-denominated debt include Swiss bank UBS, asset manager BlackRock, UK bank HSBC Holdings, as well as a number of hedge funds. The bonds are linked to various private and public companies that are part of Evergrande but separate from its main real estate business, including an electric vehicle division. These companies could still have value even if the real estate industry collapses.

Despite the lingering uncertainty, equity investors appear to be expecting a better result for Evergrande than at the start of the week. In Hong Kong, Evergrande shares rose nearly 18%, and on Wall Street, the S&P 500 closed more than 1% higher, recouping its steep losses from the start of the week – in part because executives of two of Evergrande’s creditors downplayed the risk. .

Ralph Hamers, chief executive of UBS, told an investor conference Thursday that the bank’s direct exposure to Evergrande was “intangible”, adding that his problems “did not keep me from sleeping at night “, according to a transcript of the software. Sentieo company.

Noel Quinn, chief executive of HSBC, admitted at the same conference that the challenges of Evergrande could seep further into the equity and credit markets.

“I would be naive to think that market turmoil does not have the potential to have a second and third order impact,” he said, calling Evergrande’s situation “concerning”.

A representative for BlackRock declined to comment.

Central bankers outside of China also downplayed the risk this week. Federal Reserve Chairman Jerome H. Powell on Wednesday called Evergrande’s problems “peculiar to China” during a press briefing, and on Thursday, Sam Woods, Deputy Governor of the Bank of England told Reuters that the exposure of British banks and insurance companies to Evergrande is “not important.”


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US ‘pink leaves’ undergoing overhaul as securities regulator seeks to stamp out fraud https://deborahjmiller.com/us-pink-leaves-undergoing-overhaul-as-securities-regulator-seeks-to-stamp-out-fraud/ Thu, 23 Sep 2021 11:21:00 +0000 https://deborahjmiller.com/us-pink-leaves-undergoing-overhaul-as-securities-regulator-seeks-to-stamp-out-fraud/ WASHINGTON / NEW YORK, Sept. 23 (Reuters) – As many as 2,000 companies could disappear from the over-the-counter “pink leaves” long favored by retail investors when a new rule to stamp out fraud in this notoriously risky enclave of The US stock markets will go into effect next week. The Securities and Exchange Commission (SEC) […]]]>

WASHINGTON / NEW YORK, Sept. 23 (Reuters) – As many as 2,000 companies could disappear from the over-the-counter “pink leaves” long favored by retail investors when a new rule to stamp out fraud in this notoriously risky enclave of The US stock markets will go into effect next week.

The Securities and Exchange Commission (SEC) rule strengthens investor disclosures by requiring over-the-counter issuers, often penny-listed companies that do not meet major stock exchange listing standards, to make information publicly available accurate and up-to-date financial statements.

Due to a loophole in the current rules, approximately 2,000 of the approximately 11,000 companies listed on the Pink Market operated by New York-based OTC Markets Group (OTCM.PK) do not publicly provide this information.

OTC Markets has tried to spread the word and encourage companies to tidy their documents, but it was still unclear how many would do so in time for the September 28 deadline, if any, said Daniel Zinn, General Counsel of the Company. .

The market operator may have to withdraw, if only temporarily, between 1,000 and 2,000 shares from the pink market, he estimated, meaning that brokerage quotes will no longer be available to investors via online retail brokerage platforms.

The reshuffle, which comes amid a retail boom, has led some brokers, including Charles Schwab / TD Ameritrade (SCHW.N) and Fidelity, to ban further purchases in the affected stocks, causing consternation among retail investors who are unsure whether to bail out or stay. the course in the hope that companies will comply.

While clients will still be able to sell their shares after September 28, brokers have warned of very limited liquidity, which usually means investors get a bad deal. Investors still keen to get into businesses that have not complied may need to call their broker for a quote.

The rule will also apply to some issuers of government and corporate bonds, with major industry lobby groups warning this week of a potential disruption to this critical funding market.

Overall, the new rule is likely to increase the cost of trading for those companies, Zinn said.

“We agree with the SEC’s goals of providing as much disclosure as possible,” Zinn said. Some companies, however, prefer not to provide public financial data for a number of legitimate reasons, or may not, he continued.

For example, some companies may be unwilling to bear the legal costs of providing compliant documents, while others may not want to promote trading in their shares.

“Under these circumstances, no listing can do more harm than help existing investors,” Zinn said.

The SEC did not respond to a request for comment.

The Pink Market is home to an array of issuers, including reputable foreign companies looking for a gateway to the United States. But some are very risky and volatile penny stock companies in distress, delinquency, or just shells.

The SEC has warned that the over-the-counter market, more broadly, is teeming with fraud and manipulation.

Under previous SEC rules, brokers were required to review a company’s financial data before providing quotes for its shares on the Pink Market, unless another broker had already verified them. This was the case even though the initial review took place years ago and the company has since ceased to release financial information. The new SEC rule ends this exemption.

“Companies are urged to provide some level of transparency to their investors or they cannot be easily listed. That’s a good thing,” said Jim Angel, professor at Georgetown University. “The problem is, what about companies that choose not to disclose? Their shareholders are being punished for the actions of the companies.”

‘SHOW ME THE MONEY’

A new wave of amateur investors have gathered in penny stocks over the past 18 months, trading on low and no-fee retail brokerage platforms and increasing their positions on social media.

In August, there were 601.1 billion transactions on the stock markets tracked by the Financial Sector Regulatory Authority, a jump of 130% from the previous year, but down from the peak of 1 900 billion transactions in February.

Among the stocks affected by the new rule, the most popular among investors in trading forums like Stocktwits and WallStreetBets include shell companies liquidating defunct retailers Blockbuster (BLIAQ.PK) and Sears (SHLDQ.PK).

Chinese firm Luckin Coffee Inc, which was delisted last year from the Nasdaq following an accounting scandal, is among the most actively traded in the broader pink market, according to data from OTC Markets.

Worried about brokers’ warnings and blaming their declining equity holdings on the impending rule change, some retail investors have taken to social media to share their anxiety and glean gossip about whether companies will comply with the rule. time.

Executives from several affected companies reassured investors on Twitter that the paperwork was arriving. For some thrill seekers, these promises are another buying opportunity.

“Let’s go, last day to buy,” wrote a Stocktwits user passing through the LASPit handle on August 27 before his broker began restricting purchases from cannabis producer CannTrust Holdings Inc (CNTTQ.PK), who is mired in a legal battle over regulatory issues.

“We’re all in it to the bitter end now, no turning back!” … Please show me the money at the end! A user with the gottamakedatmoney handle replied.

Reporting by Michelle Price in Washington and John McCrank in New York Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.


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Federal Reserve signals drop of support for pandemic https://deborahjmiller.com/federal-reserve-signals-drop-of-support-for-pandemic/ Wed, 22 Sep 2021 22:43:59 +0000 https://deborahjmiller.com/federal-reserve-signals-drop-of-support-for-pandemic/ Federal Reserve officials said on Wednesday they plan to slow down soon the asset purchases they have used to support the economy and predicted they could raise interest rates next year, sending a clear signal that policymakers are preparing to cut full cash aid as the business environment recovers from the pandemic shock. Fed chairman […]]]>

Federal Reserve officials said on Wednesday they plan to slow down soon the asset purchases they have used to support the economy and predicted they could raise interest rates next year, sending a clear signal that policymakers are preparing to cut full cash aid as the business environment recovers from the pandemic shock.

Fed chairman Jerome H. Powell told a news conference that central bank bond purchases, which have supported the economy from the depths of the pandemic downturn, “still have a use, but it’s time for us to start decreasing them. “

This unusual openness came for a reason: Fed officials have tried to fully prepare the markets for their first pullback of huge economic support. Policymakers could announce a slowdown in their monthly purchases of government guaranteed securities as early as November, the next Fed meeting, and the program could end by the middle of next year, Powell said later. . He added that there was “very broad support” within the federal policy-making committee for such a plan.

Almost 20 months after the coronavirus pandemic first rocked America, the Fed is trying to guide an economy in which business has rebounded as consumers spend heavily, aided by repeated government stimulus checks and other advantages.

Yet the virus persists and many adults remain unvaccinated, preventing a full return to normal activity. External threats are also looming, including shocks in the Chinese real estate market which have strained financial markets. In the United States, partisan bickering could jeopardize future government spending plans or even destabilizely delay a needed increase in the debt ceiling.

Mr. Powell and his colleagues are navigating these cross currents at a time of high inflation and the labor market, while recovering, remains far from fully strong. They are wondering when and how to reduce their support for monetary policy, hoping to avoid overheating the economy or financial markets while keeping the recovery on track.

“They want to start the exit,” said Priya Misra, global head of rate strategy at TD Securities. “They are warning the markets.”

Investors took the latest update in stride. The S&P 500 ended up 1% for the day, slightly above what it was before the Fed’s policy statement was released, and government bond yields fell, suggesting investors should saw no reason to drastically change their interest rate expectations.

The Fed is keeping its policy rate low since March 2020 and buying $ 120 billion in government guaranteed bonds each month, policies that work together to keep many types of borrowing low. The combination fueled lending and spending and helped spur stronger economic growth, while also contributing to record highs in the stock market.

But now officials believe the time has come to tiptoe away from such full-blown support. At the end of last year, policymakers set the bar lower for slowing buying than for raising interest rates. They just wanted to see “further substantial progress” towards their goals of stable inflation and maximum employment before giving up on asset purchases. Regarding the rate hike, officials have indicated that they would like to see inflation reach its target in the long term and a fully healed labor market.

Slowing down its short-term asset purchases could give the Fed more leeway to be more nimble going forward. Policymakers have indicated that they want to stop buying securities before moving interest rates above zero.

But Mr Powell tried to clearly separate the two decisions, signaling that changes in the key interest rate – the Fed’s most traditional and powerful tool – are not imminent.

“You are going to be a long way from satisfying the take-off test when we start to decline,” he reiterated on Wednesday.

Half of Fed policymakers plan to hike rates near zero next year. Officials on Wednesday released a new set of economic projections, showing their forecasts for growth, inflation and fund rates through the end of 2024. These included the “dot plot” – a set of individual estimates anonymous showing where each of the Fed’s 18 policymakers expect their interest rates to drop at the end of each year.

Nine Fed policymakers have forecast one or more rate hikes next year, up from seven when the projections were last released in June. This was the first time the Fed has released projections for 2024, and officials expected rates to settle at 1.8% by the end of this year.

Projections also predicted faster price gains in 2021. Inflation has risen sharply in recent months, elevated by supply chain disruptions and other pandemic-related quirks. The Fed’s favorite measure, the Personal Consumption Expenditure Index, climbed 4.2% in July from a year earlier.

Fed officials expected average inflation of 4.2% in the last quarter of 2021 before falling to 2.2% in 2022, according to the new forecast.

Central bankers try to predict how inflation will develop in the months and years to come. Some officials fear it will remain high, fueled by heavy consumption and new pricing power from companies, as consumers come to expect and accept higher costs.

Others fear that the same factors that are pushing prices up today will lead to uncomfortably low inflation in the future – for example, used car prices were a big contributor to the 2021 increase and could fall as demand decreases. Lukewarm price hikes prevailed before the onset of the pandemic, and the same global trends that had weighed on inflation may once again dominate.

“Inflation expectations are terribly important, we spend a lot of time watching them, and if we saw them moving in a disturbing way,” then “we would definitely react to that,” Mr Powell said. “We don’t really see that now.”

The Fed’s second goal, full employment, also remains elusive. Millions of jobs remain missing from before the pandemic, even after months of historically rapid job gains. Officials want to avoid raising interest rates to cool the economy before the labor market is fully healed. It’s unclear when that might be, as the economy has never recovered from the lockdowns brought on by the pandemic before.

“The process of reopening the economy is unprecedented, as is the shutdown at the onset of the pandemic,” Powell said Wednesday.

Given these uncertainties, the Fed is likely to act cautiously on raising interest rates. And while Mr Powell announced in November that the Fed would start slowing its bond purchases, even that is likely to change if the economy does not recover as expected – or if major risks materialize on the horizon. .

“The start of the reduction would be delayed if the debt ceiling deadlock is not resolved and the markets are boiling,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a research note to the outcome of the meeting.

Yet Mr Powell made it clear that the Fed was not equipped to come to the rescue if lawmakers couldn’t resolve their differences.

“It’s just very important that the debt ceiling is raised in a timely manner,” said Powell, adding that “no one should assume that the Fed or anyone else can protect the markets and the saving on failure “to” make sure we pay them, when they are due.


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Evergrande gave workers a choice: lend us money or lose your bonus https://deborahjmiller.com/evergrande-gave-workers-a-choice-lend-us-money-or-lose-your-bonus/ Wed, 22 Sep 2021 10:53:13 +0000 https://deborahjmiller.com/evergrande-gave-workers-a-choice-lend-us-money-or-lose-your-bonus/ When struggling Chinese real estate giant Evergrande ran out of cash earlier this year, it turned to its own employees with a strong case: Those who wanted to keep their bonuses should give Evergrande a short loan. term. Some workers have asked friends and family for money to lend to the company. Others borrowed from […]]]>

When struggling Chinese real estate giant Evergrande ran out of cash earlier this year, it turned to its own employees with a strong case: Those who wanted to keep their bonuses should give Evergrande a short loan. term.

Some workers have asked friends and family for money to lend to the company. Others borrowed from the bank. Then this month Evergrande suddenly stopped repaying the loans, which had been touted as high-interest investments.

Today, hundreds of employees joined panicked homebuyers to demand reimbursement from Evergrande, rallying outside the company’s offices across China to protest last week.

Once China’s most prolific real estate developer, Evergrande has grown into the country’s most indebted company. It owes money to lenders, suppliers and foreign investors. He owes homebuyers unfinished apartments and has racked up over $ 300 billion in unpaid bills. Evergrande faces lawsuits from creditors and has seen its shares lose more than 80% of their value this year.

Regulators fear that the collapse of a company the size of Evergrande will cause upheavals throughout China’s financial system. Yet, so far, Beijing has not intervened with a bailout, having promised to teach the indebted corporate giants a lesson.

Angry protests by homebuyers – and now the company’s own employees – could change that calculation.

Evergrande is at the mercy of buyers of nearly 1.6 million apartments, according to one estimate, and could owe tens of thousands of its employees money. While Beijing remains relatively silent on the future of the company, those who are owed money say they are getting impatient.

“We’re running out of time,” said Jin Cheng, a 28-year-old employee from the eastern city of Hefei, who said he invested $ 62,000 of his own money in Evergrande Wealth, the investment arm of the company, on demand. senior management.

As rumors circulated on the Chinese internet that Evergrande could go bankrupt this month, Mr. Jin and some of his colleagues gathered outside provincial government offices to pressure authorities to intervene.

In the southern city of Shenzhen, homebuyers and workers crowded into the lobby of Evergrande’s headquarters last week and screamed for reimbursement. “Evergrande, give back my money that I earned with blood and sweat!” some could be heard screaming in video footage.

Mr. Jin said employees at Fangchebao, Evergrande’s online platform for real estate and auto sales, have been told that each department should invest in Evergrande Wealth on a monthly basis.

Evergrande did not respond to a request for comment, but the company recently warned it was under “enormous” financial pressure and said it had hired restructuring experts to help determine its future.

It hasn’t always been that way.

For more than two decades, Evergrande has been China’s largest developer, making money out of a real estate boom on a scale the world has never seen. With each success, Evergrande has expanded into new areas: bottled water, professional sports, electric vehicles.

Banks and investors cheerfully invested the money, betting on China’s growing middle class and its appetite for homes and other properties. More recently, real estate has come under intense scrutiny from Chinese regulators who want to end the boom years and have forced the industry to start paying down debt.

The idea was to reduce the exposure of Chinese banks to the real estate sector. But in the process, regulators withdrew the money developers like Evergrande needed to finish building homes, leaving families without the homes they had already paid for.

“The Chinese financial system is really complex and when you see cracks like this you realize the impact it could possibly have on society,” said Jennifer James, investment manager at Janus Henderson Investors. “If Evergrande were to disappear tomorrow, it could be a socially systemic problem. “

Ms James and other investors said they only heard about Evergrande’s wealth management strategy involving its employees this month, when the company revealed it owed $ 145 million in cash. refunds.

Evergrande has attempted to sell parts of his vast empire to raise new funds, but said last week he was “not sure the group would be able to close such a sale”. He accused the media of triggering panic among homebuyers with negative coverage.

But Evergrande’s funding channels started to dry up long before last week. According to employee interviews, state media reports and corporate documents seen by The New York Times, the company began forcing staff members to help bail it out as early as April, when she started selling short term loans.

About 70 to 80 percent of Evergrande employees across China were asked to donate money that would then be used to help fund Evergrande’s operations, Liu Yunting, consultant for Evergrande Wealth, recently told Anhui. Online Broadcasting Corporation, a public news group.

A version of this interview went offline on Friday. Anhui Online Broadcasting did not respond to a request for comment.

The scope of the campaign and the amount of money it could have raised was unclear. Employees were told to each invest a certain amount of money in Evergrande Wealth products, and if they didn’t, their performance pay and bonuses would be tied up, the employees told Anhui.

Company management said the investments were part of “supply chain finance” and would allow Evergrande to make payments to its suppliers, Liu said in his interview with Anhui. “Because we, the employees, had to fill a quota, we asked our friends and families to put in some money,” he said.

Mr. Liu said his parents and in-laws invested $ 200,000 and that he invested around $ 75,000 of his own money in Evergrande Wealth.

Even before the protests last week, Evergrande was on the wrong side of Beijing. At the end of last month, its executives were called to a meeting with regulators. Officials from major banking and insurance supervisors in China have called on the rulers to pay off their huge debt in order to keep the Chinese financial market stable.

The authorities’ biggest concern is the unfinished apartments at Evergrande. The company has nearly 800 developments underway in more than 200 cities across China.

Evergrande, which has often pre-sold apartments to raise funds before their completion, may still have to deliver up to 1.6 million properties to homebuyers, according to a Barclays estimate.

Under close scrutiny, Evergrande convened its top executives earlier this month and asked them to publicly sign what he called a “military order” – a pledge to complete unfinished real estate developments.

Wesley Zhang and his family are among the hundreds of thousands of families still waiting for their apartments, and they are hopeful that the company will be able to deliver. Mr. Zhang, 33, joined other homebuyers who protested in Hefei last week after learning that Evergrande also owed its employees money.

“Everyone is anxious, we are like ants on a hot pan, having no idea what to do,” Mr. Zhang said, using a Chinese expression to describe the distress of seeing a investment of $ 124,000 potentially disappearing. He said he hoped the protests would spur the government to act before it was too late.

“We hope this will prompt the central government to pay enough attention,” Zhang said. “Then someone would come out to intervene. “


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Disaster recovery center opens to help with disaster assistance https://deborahjmiller.com/disaster-recovery-center-opens-to-help-with-disaster-assistance/ Tue, 21 Sep 2021 17:32:30 +0000 https://deborahjmiller.com/disaster-recovery-center-opens-to-help-with-disaster-assistance/ WHITE PLAINS, NY – The U.S. Small Business Administration on Tuesday announced the opening of a Business Recovery Center in the New York Power Authority building in White Plains. The center will provide one-on-one assistance to businesses and residents to apply for a disaster loan for the remnants of Hurricane Ida from September 1-3. Businesses, […]]]>

WHITE PLAINS, NY – The U.S. Small Business Administration on Tuesday announced the opening of a Business Recovery Center in the New York Power Authority building in White Plains.

The center will provide one-on-one assistance to businesses and residents to apply for a disaster loan for the remnants of Hurricane Ida from September 1-3.

Businesses, landlords, tenants, and private non-profit organizations in New York City counties of the Bronx, Kings, Nassau, Queens, Richmond, Suffolk and Westchester can apply for physical disaster loans and disaster loans. economic disaster with the SBA.

Small businesses and most private non-profit organizations in the following adjacent counties are only eligible for SBA Economic Disaster Loans: New York, Orange, Putnam, and Rockland in New York; Fairfield, Connecticut; and Bergen, New Jersey.

The center will be open from 9 a.m. to 5 p.m. Monday to Friday until further notice.

The New York Power Authority Building is located at 123 Main St. in White Plains.

Customer service representatives will be available at the center to answer questions about the disaster loan program and help business owners, landlords and tenants complete their applications. Due to the ongoing COVID-19 pandemic, the SBA has established protocols to help protect the health and safety of the public. All visitors to the center are encouraged to wear a face mask.

Businesses of all sizes and private non-profit organizations can borrow up to $ 2 million to repair or replace real estate, machinery and equipment, inventory and other business assets damaged or destroyed by a disaster. .

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations, the SBA offers economic disaster loans to help meet the working capital needs caused. by disaster. Economic Damage Claim Assistance is available whether or not the business has suffered property damage.

Disaster loans of up to $ 200,000 are available to homeowners to repair or replace real estate damaged or destroyed by a disaster. Homeowners and tenants are entitled to up to $ 40,000 to repair or replace personal property damaged or destroyed by a disaster.

Applicants may be eligible for an increase in the loan amount up to 20 percent of their physical damage, as verified by the SBA, for mitigation purposes. Qualifying mitigation upgrades may include a sump pump, elevation, French drain, or retaining wall to help protect the property and occupants from future damage from a similar disaster.

Interest rates are as low as 2.855 percent for businesses, 2 percent for nonprofits, and 1.563 percent for landlords and tenants, with terms of up to 30 years. The amounts and terms of the loan are set by the SBA and are based on the financial status of each applicant.

Applicants can apply online using the electronic loan application through SBA’s secure website and must apply under SBA Statement # 17147, not for the COVID-19 incident.

To be considered for all forms of disaster assistance, applicants must register online or download the FEMA mobile app. If online or mobile access is not available, applicants should call the FEMA toll-free helpline at 800-621-3362. Those using 711 relay or video relay services should call 800-621-3362.

Businesses and individuals can also obtain information and loan applications by calling the SBA Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or by email. Loan applications can also be downloaded. Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The filing deadline for returning property damage claims is November 4. The deadline for returning economic damages claims is June 6.


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Relaxation of restrictions will boost U.S. airlines, but business travel remains unclear https://deborahjmiller.com/relaxation-of-restrictions-will-boost-u-s-airlines-but-business-travel-remains-unclear/ Tue, 21 Sep 2021 01:52:00 +0000 https://deborahjmiller.com/relaxation-of-restrictions-will-boost-u-s-airlines-but-business-travel-remains-unclear/ CHICAGO, Sept.20 (Reuters) – U.S. airlines will benefit on Monday from the Biden administration’s decision to reopen the country to fully vaccinated air travelers from around the world, experts said, but the prospects for lucrative business travel were less certain. Lifting the restrictions will allow tens of thousands of foreign nationals to travel to the […]]]>

CHICAGO, Sept.20 (Reuters) – U.S. airlines will benefit on Monday from the Biden administration’s decision to reopen the country to fully vaccinated air travelers from around the world, experts said, but the prospects for lucrative business travel were less certain.

Lifting the restrictions will allow tens of thousands of foreign nationals to travel to the United States. It also gives the big three airlines, American Airlines (AAL.O), United Airlines (UAL.O) and Delta Air Lines (DAL.N), a chance to recover some of their transatlantic business.

Moody’s Investors Service estimates that the White House decision would result in “stronger” operating cash flow for US airlines over the next six months.

Transatlantic flights accounted for 11-17% of their passenger revenue in 2019. Overall, international travel generated 26-38% of the three airlines’ revenue in 2019, said Colin Scarola, vice president of research. on equities at CFRA Research.

Scarola added “the international category was the one that really didn’t recover much at all”.

The lifting of restrictions coincides with the start of the winter season, historically a slack period for international travel. Scarola said the move would encourage companies to approve overseas business travel, but the fight against COVID-19 was more important and he doesn’t expect international travel to bounce back to the level before pandemic before the end of 2022.

CEO Doug Parker said American Airlines was “looking forward to welcoming more customers for easy and smooth international travel for business, pleasure, and reconnecting with family and friends.”

In early September, passenger volumes for U.S. airlines for international travel were only 44% of pre-pandemic levels, according to data from Airlines for America, an industry trade group.

Raymond James analyst Savanthi Syth called the White House move a “progressive positive” that would give US carriers clarity for next year’s summer travel season. Still, that hasn’t prompted her to revise her financial estimates or the outlook for air travel.

“While this is a net positive, you kind of have to balance it out with what’s going on in the United States,” she said, referring to airline warnings this month. regarding the financial blow to the rapidly spreading Delta variant of the coronavirus.

Several airlines have cut their revenue forecasts, citing a slowdown in bookings and an increase in cancellations. read more The resurgence of cases has also stalled a resumption of business travel, a cash cow for airlines with a round-trip business class ticket for a Chicago-New York United flight nearly triple the price of the economy class.

Syth expects domestic business travel to remain below 2019 levels at least until the end of 2022. International business travel is not expected to resume until 2024, she said.

Additional reporting by David Shepardson in Washington; Editing by David Gregorio and Chris Sanders

Our Standards: Thomson Reuters Trust Principles.


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Life after proclaiming Trump’s re-election as divinely ordained https://deborahjmiller.com/life-after-proclaiming-trumps-re-election-as-divinely-ordained/ Mon, 20 Sep 2021 18:02:00 +0000 https://deborahjmiller.com/life-after-proclaiming-trumps-re-election-as-divinely-ordained/ Beyond the spiritual test of unfulfilled prophecies, there are very earthly issues here: Under Mr. Strang’s leadership, Charisma has grown from a church magazine to a multi-faceted institution with a multitude of best- New York Times sellers, millions of podcast downloads and one foot remaining in print, with a circulation of 75,000 copies for its […]]]>

Beyond the spiritual test of unfulfilled prophecies, there are very earthly issues here: Under Mr. Strang’s leadership, Charisma has grown from a church magazine to a multi-faceted institution with a multitude of best- New York Times sellers, millions of podcast downloads and one foot remaining in print, with a circulation of 75,000 copies for its first magazine. It is widely regarded as the flagship publication of the growing Pentecostal world, which has over 10 million people in the United States. With her mix of political and prophetic themes, Charisma had tapped into a considerable market and electoral force. In 2019, a poll found that more than half of White Pentecostals believed Mr. Trump was divinely anointed, with additional research highlighting the importance of prophecy voters in the 2016 election.

In his new book, Mr. Strang only mentions the former president in passing, with much more attention on such topics as the coming Antichrist and the hated government overlords seeking to eradicate religion en bloc.

Mr. Strang summed it up: “The point is, there are people who want to annul Christianity.

“Christians and other conservatives must wake up and stand up,” Strang said in an interview. “It’s written on the cover of the book.”

The supernatural and the mass media have long been fused in the history of Pentecostalism. In 1900s Los Angeles, Aimee Semple McPherson broadcast news-style reports of miracles and prophetic words on her own radio station in Echo Park. Oral Roberts has led healing crusades across the television screen. The Jim and Tammy Faye Bakker duo mastered the flashy style of prime-time talk shows.

Mr. Strang’s journalistic career began in Florida as a junior reporter at the Sentinel Star, where he covered more mundane topics like police and town halls. In 1975, Mr. Strang founded Charisma, then a small periodical published by Calvary Assembly of God, an Orlando-area congregation he frequented with his wife. Mr. Strang bought the magazine from the Mother Church in 1981 and embarked on religious publishing.

Over time, Charisma flourished. The editorial voice had the sunny boosterism of a hometown newspaper, covering leading figures from the Pentecostal world, an audience Mr. Strang believed to be woefully underserved. While competitors such as today’s Christianity courted the button-down elite of American evangelicalism, Charisma cornered a niche market of so-called charismatic Christians, distinguished by their interest in the gifts of the Church. spirit, including things like healings, speaking in tongues, and modernity. prophecy of the day. Mr. Strang has eschewed questions of stifling dogma for mind-boggling stories about the Holy Spirit moving through current events. Editorial meetings would focus on finding what a former employee called “the spiritual warmth” behind the headlines of the day.

“We didn’t want to become the kind of boring publications that many ‘religious’ journals are,” Strang wrote in an editor’s first note. “That’s why we went first class with this post.”


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