Connect with us

CNBC

Senate acquits Trump for inciting Capitol riot even as bipartisan majority votes to convict

The Senate on Saturday acquitted former President Donald Trump in a 57-43 vote on the charge of inciting insurrection for his role in the Jan. 6 Capitol riot.

Published

on

U.S. President Donald Trump gestures during a rally to contest the certification of the 2020 U.S. presidential election results by the U.S. Congress, in Washington, U.S, January 6, 2021.

Jim Bourg | Reuters

The Senate on Saturday acquitted former President Donald Trump in a 57-43 vote on the charge of inciting insurrection for his role in the Jan. 6 U.S. Capitol riot, which left 5 people dead including a police officer.

Seven GOP Senators voted guilty in the most bipartisan majority to support an impeachment conviction in U.S. history. Democrats needed 17 Republicans to join them to convict Trump and hold a separate vote to bar him from running for office in the future.

The decision came after House impeachment managers reversed course and dropped a call for witnesses that would have delayed the verdict. The acquittal marks the end of a five day impeachment trial.

Republicans who voted guilty were Sens. Richard Burr of North Carolina, Bill Cassidy of Louisiana, Susan Collins of Maine, Lisa Murkowski of Alaska, Mitt Romney of Utah, Ben Sasse of Nebraska and Pat Toomey of Pennsylvania. Toomey and Burr are not running for re-election in Congress.

Nine House Democrats served as impeachment managers in the trial and argued that Trump had a direct responsibility for the riots, displaying new video and audio evidence during the attack inside the Capitol.

Trump’s defense team denied that the former president incited the attack and argued that Trump’s rhetoric was protected under the First Amendment. His lawyers also argued that the trial was unconstitutional since Trump was a private citizen and no longer president.

No president before Trump has ever been impeached and tried twice and no Senate trial has ever been held for a former president.

In Trump’s first impeachment trial, the Senate acquitted Trump on charges of abuse of power and obstruction of Congress related to Trump pressuring Ukraine to investigate Joe Biden and his son. Romney was the only GOP senator to vote guilty in that trial.

Trump, in a statement following his acquittal on Saturday, called the trial “yet another phase of the greatest witch hunt” in U.S. history.

“Our historic, patriotic and beautiful movement to Make America Great Again has only just begun,” Trump said. “In the months ahead I have much to share with you, and I look forward to continuing our incredible journey together to achieve American greatness for all of our people.”

Senate Majority Leader Chuck Schumer in a speech on the Senate floor blasted the acquittal as “un-American” and said the Jan 6. riots would be Trump’s “final terrible legacy.”

“Let it live on in infamy, a stain on Donald John Trump that can never, never be washed away,” Schumer said. “There was only one correct verdict in this trial: Guilty.”

Lead impeachment manager Rep. Jamie Raskin, D-Md., said in his closing arguments that House managers presented “overwhelming and irrefutable” evidence that Trump assembled and incited the attack on the Capitol.

Raskin compared Trump’s actions to that of an arsonist who set a fire, continued to pour fuel on it and stood by to watch it burn “gleefully.” In a separate argument, he got more personal, asking senators whether this is the type of country they want to leave to future generations.

“This trial in the final analysis is not about Donald Trump. The country and the world know who Donald Trump is,” Raskin said. “This trial is about who we are.”

“And if we can’t handle this together as a people, all of us, forgetting the lines of party and ideology and geography and all of those things, if we can’t handle this, how are we ever going to conquer the other crises of our day?” Raskin continued. “Is this America? Is this what we want to bequeath to our children and our grandchildren?

Trump lawyer Michael van der Veen, in his closing argument, said Democrats carried out an egregious violation of Trump’s constitutional rights by seeking to punish him for protected First Amendment speech, describing it as an attempt to “censor disfavored political speech and discriminate against a disapproved viewpoint.”

“It is an unprecedented action with a potential to do grave and lasting damage to both the presidency and the separation of powers and the future of democratic self government,” Van der Veen said.

Democratic impeachment manager Rep. David Cicilline, D-R.I., made his closing argument by walking through the timeline of Trump’s actions the day of the riot, rejecting the claim by the defense team that Trump did not know his vice president, Mike Pence, was in danger.

“It was unfolding on live TV in front of the entire world. Does it strike you as credible that nobody, not a single person, informed the president that his vice president had been evacuated? Or that the president didn’t glance at the television? Or his Twitter account?” Cicilline said.

“He willfully betrayed us. He violated his oath,” Cicilline added.

Rep. Madeleine Dean, D-Pa., rejected arguments by Trump’s defense team and said that Trump convinced his supporters to believe his “big lie” that the 2020 election was stolen and that they needed to go out to fight it.

“It is not true that they did so of their own accord and for their own reasons,” Dean said. “The evidence makes clear the exact opposite, that they did this for Donald Trump at his invitation, at his direction, at his command.”

The Senate had voted to allow witnesses by a 55-45 margin, with five Republicans joining all Democrats. The GOP senators were Lindsey Graham of South Carolina, Collins, Murkowski, Romney and Sasse.

But the chamber shortly after agreed to end the trial after entering a statement from Rep. Jaime Herrera Beutler, R-Wash., into the record as evidence. Earlier in the day, Raskin called for Beutler to be deposed after she confirmed the content of an expletive-filled phone call between House GOP Leader Kevin McCarthy and Trump as the attack on the Capitol unfolded.

On the call, Trump appeared to side with the rioters. Beutler’s statement said that Trump told McCarthy, “Well Kevin, I guess these people are more upset about the election than you are.”

Van der Veen responded to Raskin by saying “we should close this case out today” and said the call to subpoena witnesses shows the House didn’t properly investigate the riots.

It’s unclear if calling witnesses could have changed any votes of GOP senators who already made their decisions.

For instance, Senate Minority Leader Mitch McConnell told his Republican colleagues earlier in the day that he planned to vote not guilty, arguing the chamber doesn’t have the jurisdiction to convict a former president.

The House impeached Trump when he was still president and McConnell declined to start the trial before Biden’s inauguration, arguing there wasn’t enough time. After the acquittal, McConnell criticized Trump for a “disgraceful dereliction of duty.”

“There’s no question, none, that President Trump is practically and morally responsible for provoking the events of the day,” McConnell said. “No question about it.”

The decision came after House impeachment managers reversed course and dropped a call for witnesses that would have delayed the verdict. The acquittal marks the end of a five day impeachment trial.

Source: https://www.cnbc.com/2021/02/13/senate-acquits-former-president-donald-trump-on-charge-of-inciting-insurrection-at-us-capitol-.html

senate-acquits-trump-for-inciting-capitol-riot-even-as-bipartisan-majority-votes-to-convict

CNBC

Explaining the volatile stock and bond market moves this week following the Fed’s update

The Fed unleashed a huge repositioning in markets, as investor reacted to a world where the central bank no longer guarantees its policies will remain easy.

Published

on

The Federal Reserve unleashed a huge repositioning in global financial markets, as investors reacted to a world where the U.S. central bank is no longer guaranteeing its policies will be dovish — or easy.

The dollar surged the most in a year over a two-day period against a basket of currencies.

Stocks were mixed around the world on Thursday, as were bond markets. Many commodities sold off. The Nasdaq Composite was higher, while the S&P 500 and Dow Jones Industrial Average slid. Tech gained, and cyclical stocks fell.

The central bank delivered a strong message Wednesday when Fed Chairman Jerome Powell said officials have discussed tapering bond buying and would at some point decide to begin the process of slowing the purchases. At the same time, Fed officials added two rate hikes to their 2023 forecast, where there were none before.

“It’s the end of peak dovishness,” Bleakley Global Advisors chief investment officer Peter Boockvar said. “It’s not going hawkish. It’s just we’re past peak dovishness. This market response is as if they were already tapering.”

Not an immediate shock, but volatility ahead

Strategists say the Fed’s slight step toward tightening policy didn’t shock markets Wednesday, but it will likely make them volatile going forward. The Fed, in essence, is acknowledging the door is now open to future rate hikes.

It is expected to make a fuller declaration about the bond program later this year, and then within several months start the slow process of bringing $120 billion a month in purchases down to zero.

The yields of shorter-duration Treasurys, like the 2-year note, rose. Longer duration yields, such as the benchmark 10-year, fell. That so-called “flattening” is a go-to trade when interest rates rise. The logic is that longer yields fall since the economy may not do as well in the future with higher interest rates, and short-end yields rise to reflect expectations of the Fed raising rates.

U.S. longer-dated Treasurys, like the 10-year, have been lower than many strategists had expected lately. That’s in part because they are highly attractive to foreign buyers due to negative rates in other parts of the world and liquidity in the U.S. markets. The 10-year yield shot to 1.59% after the Fed news, but was back down at 1.5% Thursday afternoon. Yields move opposite price.

Commodities-related stocks, like energy names and materials shares, were down sharply Thursday afternoon. Energy was the worst-performing S&P 500 sector, falling 3.5%. Materials lost 2.2%.

“It’s a massive flattening of the yield curve. It’s an interest rate trade, and it’s the belief the Fed is going to slow growth,” Boockvar said. “So sell commodities, sell cyclicals… and in a slow growing economy people want to buy growth. It’s all happening in two days. It’s just a lot of rewinds.”

Boockvar said the curve flattening has been happening swiftly, too. For instance, the spread between the 5-year yield and 30-year bond yield quickly compressed, moving from 140 basis points to 118 basis points within two days.

“You’re watching an incredible unwind of positioning in the bond market. I don’t think people thought the Fed would do it,” BlackRock CIO of global fixed income Rick Rieder said.

“We thought the flattening trade was the right move when we saw some of the news out of the Fed. That was something we jumped on pretty quickly. I have to say we’re letting some Treasurys go into this rally,” Rieder told CNBC.

For stock investors, the shift in cyclical stocks goes against a trade that has been popular as the economy reopened. Financial stocks fell on the flatter yield curve, but REITs were slightly higher. Technology stocks rose 1.2%, and health care gained 0.8%.

“The implication is higher stock market volatility, which I think we’re going to have and going to continue to have,” BTIG head of equity and derivatives strategy Julian Emanuel said. “Yesterday changed things. This whole idea of data dependency — the market is going to trade it like crazy, particularly given the fact that the public participation remains very elevated and the stocks the public is most interested in are high multiple growth stocks that have been leading the last several weeks as the bond market remained range bound.”

Even as Powell acknowledged inflation was higher than the Fed expected, the central bank also pressed its message that inflationary pressures could be temporary. The Fed’s boosted its forecast for core inflation to 3% for this year but was at just 2.1% for next year, in its latest projections. Powell used the example of the rise and fall of lumber prices to illustrate his view that inflation will not be long lasting.

But Emanuel said it will be difficult to tell whether inflation is fleeting , and the economy’s emergence from the pandemic has been difficult to predict. “Whether it’s the Fed or paid economists on the sell side, or paid economists on the buy side, the ability to measure what’s going on in the economy is really nothing more than … educated guess work at this point because the statistics are just all over the place,” Emanuel said, adding inflation readings have all been hotter than expected.

He expects the market will trade in a range for now, with the bottom at 4,050 on the S&P 500 and the top at 4,250. The S&P 500 closed at 4,221 on Thursday, down just 1 point. The Dow was of by 0.6% at 33,823, and the Nasdaq rose by 0.9% at 14,161.

The late-July Fed meeting now looms large. That could add even more volatility as investors wait to see if the Fed will provide more details on tapering after that meeting. Many economists expect the Fed to use its annual Jackson Hole symposium in late August as a forum to lay out its plan for the bond program.

The bond purchases, or quantitative easing, were launched last year as a way to provide liquidity to markets during the economic downturn that started last year. The Fed purchases $80 billion in Treasurys and $40 billion in mortgage securities each month. Rieder expects the Fed could slow purchases by $20 billion a month once it starts the tapering. Once the Fed gets to zero, it could then consider when to raise interest rates.

The market expectations for rate hikes have moved forward, and the euro-dollar futures market now sees four rate hikes by the end of 2023, according to Marc Chandler of Bannockburn Global Forex. Prior to the Fed’s announcement Wednesday, futures showed expectations for about 2.5 rate hikes.

Strategist expect some of the Fed reaction is just temporary, and reflects investors who were too far offsides in some positions. “I’m still a commodities bull,” Boockvar said. Commodities had already begun falling ahead of the Fed announcement, after China announced plans to release metals reserves.

“The Fed needed to reign in the inflation story. They did it only very very slightly, but at least they accomplished it, and they’ve squeezed out inflation expectations and they’ve seen a pullback,” he said. “The question is can they through. To raise rates in two years or baby step tapering is not going to do it, but at least for two days they’ve succeeded in calming things down.”

The dollar index jumped 0.8% on Thursday afternoon, about the same as Wednesday’s move.

Chandler said the dollar move could also be a temporary adjustment and not part of a much bigger move. The dollar index’s gain largely reflect the dollar’s move against the euro, weaker as the European Central Bank continues to sound dovish.

“Norway signaled [Thursday] that they are going to hike rates in September and yet the dollar rallied against Norway. I think what happened yesterday set off a new wave of positioning in the currencies. … If it’s not done it’s nearly done,” he said.

The biggest component of the dollar index basket is the euro. “The correction is long in the tooth. It began in late May. That’s when the euro put in its last high,” said Chandler.

Source: https://www.cnbc.com/2021/06/18/explaining-the-volatile-stock-and-bond-market-moves-this-week-following-the-feds-update.html

explaining-the-volatile-stock-and-bond-market-moves-this-week-following-the-fed's-update

Continue Reading

CNBC

The Fed moves up its timeline for rate hikes as inflation rises

However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program.

Published

on

The Federal Reserve on Wednesday considerably raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates.

However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program, though Fed Chairman Jerome Powell acknowledged that officials discussed the issue at the meeting.

“You can think of this meeting that we had as the ‘talking about talking about’ meeting,” Powell said in a phrase that recalled a statement he made a year ago that the Fed wasn’t “thinking about thinking about raising rates.”

As expected, the policymaking Federal Open Market Committee unanimously left its benchmark short-term borrowing rate anchored near zero. But officials indicated that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024. The so-called dot plot of individual member expectations pointed to two hikes in 2023.

Though the Fed raised its headline inflation expectation to 3.4%, a full percentage point higher than the March projection, the post-meeting statement continued to say that inflation pressures are “transitory.” The raised expectations come amid the biggest rise in consumer prices in about 13 years.

“This is not what the market expected,” said James McCann, deputy chief economist at Aberdeen Standard Investments. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”

Markets reacted to the Fed news, with stocks falling and government bond yields higher as investors anticipated tighter Fed policy ahead, including the likelihood that the bond purchases will slow as soon as this year.

“If you’re going to get two rate hikes in 2023, you have to start tapering fairly soon to reach that goal,” said Kathy Jones, head of fixed income at Charles Schwab. “It takes maybe 10 months to a year to taper at a moderate pace. Then you’re looking at we need to start tapering maybe later this year, and if the economy continues to run a little bit hot, rate hikes sooner rather than later.”

Even with the raised forecast for this year, the committee still sees inflation trending to its 2% goal over the long run.

“Our expectation is these high inflation readings now will abate,” Powell said at his post-meeting news conference.

Powell also cautioned about reading too much into the dot-plot, saying it is “not a great forecaster of future rate moves. “Lift-off is well into the future,” he said.

Powell did note that some of the dynamics associated with the reopening are “raising the possibility that inflation could turn out to be higher and more persistent than we anticipate.”

Powell said progress toward the Fed’s dual employment and inflation goals was happening somewhat faster than anticipated. He particularly noted the sharp rebound in growth that now has the Fed seeing GDP 7% in 2021.

“Much of this rapid growth reflect the continued bounceback in activity from depressed levels, and the factors more affected by the pandemic remain weak but have shown improvement,” he said.

Officials raised their GDP expectations for this year to 7% from 6.5% previously. The unemployment estimate remained unchanged at 4.5%.

The statement tempered some of the language of previous statements since the Covid-19 crisis. Since last year, the FOMC had said the pandemic was “causing tremendous human and economic hardship across the United States and around the world.”

Wednesday’s statement instead noted the progress vaccinations had made against the disease, noting that “indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement.”

Investors were watching the meeting closely for statements about how Fed officials see an economy undergoing rapid expansion since the depths of the pandemic crisis in 2020.

Recent indicators show that in some respects the U.S. is expanding at the fastest rate since World War II. But that growth also has come with inflation, and the central bank has faced pressure from various sources to at least start curtailing the at least $120 billion in bond purchases it is making each month.

At his post-meeting news conference Chairman Jerome Powell noted that Fed officials “had discussions” on the progress made toward the inflation and employment goals relative to the asset purchases, and will continue do do so in the months ahead.

Markets had been looking for the possibility that the committee would address its open-market operations where it provides short-term funding for financial institutions. The so-called overnight repo operations, where banks exchange high-end collateral for reserves, have been seeing record demand lately as institutions look for any yield above the negative rates they are seeing in some markets.

The committee did raise the interest it pays on excess reserves by 5 basis points to 0.15%.

In a separate matter, the FOMC announced that it would extend dollar-swap lines with global central banks through the end of the year. The currency program is one of the last remaining Covid-era initiatives the Fed took to keep global markets flowing.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign up to start a free trial today.

“This is not what the market expected,” said James McCann, deputy chief economist at Aberdeen Standard Investments. “The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023. This change in stance jars a little with the Fed’s recent claims that the recent spike in inflation is temporary.”

Source: https://www.cnbc.com/2021/06/16/fed-holds-rates-steady-but-raises-inflation-expectations-sharply-and-makes-no-mention-of-taper.html

the-fed-moves-up-its-timeline-for-rate-hikes-as-inflation-rises

Continue Reading

CNBC

Oracle guidance misses expectations, stock drops

Oracle reported better-than-expected results and showed accelerating growth compared with the immediate impact of the coronavirus last year.

Published

on

Safra Catz, co-chief executive officer of Oracle Corp.

David Paul Morris | Bloomberg | Getty Images

Oracle shares fell 5% in extended trading on Tuesday after the company offered lower quarterly revenue guidance than expected as it plans to increase capital expenditures to support cloud computing workloads. The guidance came on Oracle’s earnings call after the enterprise software maker issued better-than-expected earnings and faster revenue growth than last quarter.

Here’s how the company did:

  • Earnings: $1.54 per share, adjusted, vs. $1.31 per share as expected by analysts, according to Refinitiv.
  • Revenue: $11.23 billion, vs. $11.04 billion as expected by analysts, according to Refinitiv.

With respect to guidance, Oracle CEO Safra Catz called for 94 cents to 98 cents in adjusted earnings per share and 3% to 5% revenue growth in the fiscal first quarter. Analysts polled by Refinitiv are expecting fiscal first-quarter adjusted earnings of $1.03 per share and the equivalent of 3% revenue growth.

“We expect to roughly double our cloud capex spend in FY 2022 to nearly $4 billion,” Catz said. “We are confident that the increased return in the cloud business more than justifies this increased investment, and our margins will expand over time.”

Revenue rose 8% year over year in Oracle’s fiscal fourth quarter, which ended on May 31, according to a statement. In the prior quarter revenue grew 3%. The accelerating growth benefited from a comparison against the quarter last year when the coronavirus arrived in the U.S. and Oracle’s revenue fell some 6%.

Oracle’s top segment by revenue, cloud services and license support, generated $7.39 billion, which was up 8% and above the FactSet consensus estimate of $7.32 billion in revenue. The company said revenue from its second-generation cloud infrastructure doubled in the quarter, but it did not provide the figure in dollars.

The cloud license and on-premises license segment contributed $2.14 billion in revenue, up 9% and more than the $2.05 billion consensus.

The company’s hardware revenue, at $882 million, was exactly in line with analysts’ estimates, declining 2%.

During the quarter Oracle announced new public-cloud computing options that draw on Arm-based chips, and the U.S. Supreme Court ruled on a longstanding case between Oracle and Google, declaring that Google’s copying of Java code was fair use.

Notwithstanding the after-hours move, Oracle stock is up 26% since the start of the year, while the S&P 500 index is up 13% over the same period.

In May, Barclays analysts lowered their rating on the stock to the equivalent of hold from the equivalent of buy after the price had moved upward as investors rotated out of growth and into value. “To see further relative outperformance a growth acceleration at Oracle is needed, and we don’t have enough tangible data points for this yet,” the analysts wrote.

WATCH: The great tech tug-o-war

Here’s how the company did:

Source: https://www.cnbc.com/2021/06/15/oracle-orcl-earnings-q4-2021.html

oracle-guidance-misses-expectations,-stock-drops

Continue Reading

Title

CNBC1 hour ago

Explaining the volatile stock and bond market moves this week following the Fed’s update

The Fed unleashed a huge repositioning in markets, as investor reacted to a world where the central bank no longer...

ZDNET4 hours ago

How to build business credit

Business credit is vital for businesses that need to borrow money to grow. Building business credit is not impossible; it...

Blockchain news7 hours ago

Global Financial Indexes Provider MSCI Plans to Launch Crypto Indexes

Global securities index publisher MSCI is considering launching cryptocurrency indexes. Yet, Henry Fernandez, CEO of the MSCI did not disclose...

Business insider18 hours ago

Artificial Organs Market | $ 10.90 billion growth expected during5 | Technavio

NEW YORK, June 18, 2021 /PRNewswire/ -- The artificial organs market is expected to grow by USD 10.90 billion during...

Crunchbase20 hours ago

Curate Brings In $1.25M Seed For Small Business Sales, Operations Platform

The company's platform provides back office functions so that small businesses can focus on building clientele and maximizing profits.

Entrepreneur23 hours ago

3 Simple Things You Can Do to Build a Healthy, Thriving Email List

Your list is only as good as the number of real people on it.

Techcrunch1 day ago

Tiger Global in talks to back BharatPe at $2.5 billion valuation – TechCrunch

Indian fintech startup BharatPe is in advanced stages of talks to raise about $250 million in a new financing round...

Reuters1 day ago

Largest Boeing 737 MAX model set for maiden flight -source

Boeing Co (BA.N) was readying the largest member of its 737 MAX family for its maiden flight on Friday, a...

Entrepreneur2 days ago

Free Webinar | June 22: How to Grow & Thrive in an Evolving Business Landscape

SurveyMonkey CEO, Zander Lurie, shares how he's embraced change over his 20-plus year career.

CNBC2 days ago

The Fed moves up its timeline for rate hikes as inflation rises

However, the central bank gave no indication as to when it will begin cutting back on its aggressive bond-buying program.

Review

    Select language

    Trending