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US Ramps Up Rate Of Ukraine Arms Packages… What’s Another $225 Million?

US Ramps Up Rate Of Ukraine Arms Packages… What’s Another $225 Million?

The United States is preparing to announce a new $225 million weapons package for Ukraine this week, coming two weeks after the last package, which was at $275 million and featured badly needed artillery rounds. And a few weeks prior to that, in early May, the US administration rolled out with $400 million in defense aid —  thus it appears the White House is planning to apportion new packages about every two or three weeks, drawing from Biden’s $60 billion in recently approved total funding for Ukraine.

Currently, Ukrainian soldiers are resorting to literally trying to find leftover, unexploded artillery shells scattered in the ground at prior battle sites. The Wall Street Journal recently underscored this severe lack of ammo along Ukraine’s front lines in writing that “Kyiv’s ammunition shortage is so acute that a soldier who hunts for Russian shells—and makes his own bombs—has become an important supplier for some units.” 

The dangerous trend can be summarized as follows: the more desperation there is on the ground as Ukraine loses more and more ground along frontline positions, the greater the bellicose posturing on the part of NATO and the West. Western publications are even openly airing contingency plans for US troop movements in Europe in a WW3 scenario involving war with Russia in the heart of Europe. As another alarming and somewhat absurd example of this trend, look what European Commission chief is positively boasting about

According to a preview of the $225 million arms package via Reuters, “The United States is expected to announce a new $225 million weapons package for Ukraine this week, sources said on Wednesday.”

“Details of the latest package emerged as President Joe Biden planned to meet with Ukrainian President Volodymyr Zelensky on Thursday in Normandy at the 80th anniversary commemoration of the D-Day invasion. It was unclear if the package would be announced then or on Friday.”

Tyler Durden
Thu, 06/06/2024 – 06:55

Antifa Thug Attacks AfD Politician With A Knife In Germany

Antifa Thug Attacks AfD Politician With A Knife In Germany

Authored by Paul Joseph Watson via modernity.news,

A left-wing extremist attacked an AfD politician with a knife in Mannheim, Germany, very close to the same location where an Islamist killed a police officer last week.

A video of the incident shows the AfD’s Heinrich Koch approaching the knifeman as he carries away AfD posters which he had been tearing down.

The attacker lunges at Koch with the knife, prompting the politician to scream in pain, before the assailant runs away as Koch calls for the police.

The victim was reportedly left with multiple stab wounds and remains in hospital. The suspect was later arrested by police.

The incident occurred close to the same spot where an Islamist attacked right-wing political activist Michael Stürzenberger during a campaign event last week.

The attack ended up with a police officer getting stabbed in the neck by the attacker after tackling the wrong suspect. The officer later died from his injuries.

The culprit, Sulaiman Ataee, arrived in Germany in 2013 as an Afghan refugee and was refused asylum but remained in the country due to his age and went on to marry a Turkish woman with German citizenship.

Antifa members routinely engage in violent attacks against AfD politicians, although the media continues to demonize AfD members as domestic extremists, with the political establishment attempting to ban the party entirely.

In 2019, Antifa extremists threatened to assassinate an AfD member of parliament, even naming the exact date on which they would kill her.

Video from a political debate television round table broadcast the same year showed German leftists in the audience applauding death threats made against the right-wing AfD party.

Meanwhile, people who draw attention to government crime statistics that show migrants are vastly overrepresented in violent crime and gang rape are prosecuted for hate speech.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Tyler Durden
Thu, 06/06/2024 – 06:30

Dollar Tree Considers “Strategic Alternatives” For Troubled Family Dollar Unit 

Dollar Tree Considers “Strategic Alternatives” For Troubled Family Dollar Unit 

Dollar Tree shares leaked lower in premarket trading after the company reported adjusted earnings per share for the first quarter, which missed the average analyst estimate tracked by Bloomberg. The company announced “strategic alternatives” for its troubled Dollar Family Business segment, an indication a potential sale or spinoff could be ahead.

Here’s a snapshot of first-quarter earnings (courtesy of Bloomberg): 

  • Adjusted EPS $1.43 vs. $1.47 y/y, estimate $1.44 (Bloomberg Consensus)

  • EPS $1.38 vs. $1.35 y/y

  • Enterprise comparable sales +1% vs. +4.8% y/y, estimate +2.33%

  • Family Dollar comparable sales +0.1% vs. +6.6% y/y, estimate +0.1%

  • Dollar Tree Segment comparable sales +1.7% vs. +3.4% y/y, estimate +4.39%

  • Net sales $7.63 billion, +4.2% y/y

  • Dollar Tree net sales $4.17 billion, +5.9% y/y, estimate $4.24 billion

  • Family Dollar net sales $3.46 billion, +2.2% y/y, estimate $3.39 billion

  • Gross profit margin 30.8% vs. 30.5% y/y, estimate 30.8%

  • Dollar Tree gross margin 35.4% vs. 35.3% y/y, estimate 35.7%

  • Total location count 16,397, -0.1% y/y, estimate 16,613

  • Dollar Tree Locations 8,520, +4.5% y/y, estimate 8,378

  • Family Dollar locations 7,877, -4.7% y/y, estimate 8,215

It’s worth noting that Wall Street analysts have highlighted the negative impact of the struggling Family Dollar unit on Dollar Tree’s overall earnings. The unit was acquired during a fierce bidding war with Dollar General for $8 billion in 2015.

Perhaps this is why Dollar Tree announced Wednesday that its “has initiated a formal review of strategic alternatives for the Company’s Family Dollar business segment, which could include among others, a potential sale, spinoff or other disposition of the business.” 

Chairman and CEO Rick Dreiling said in a statement, “The unique needs of each banner at this time – transformation at Family Dollar and growth acceleration at Dollar Tree – lead us to the decision to conduct a thorough review of strategic alternatives for the Family Dollar business.”

“By getting rid of the weight the company voluntarily encumbered itself with when it bought Family Dollar back in 2015, Dollar Tree will be able to focus more squarely on its core business which has better prospects and a much stronger position in the market,” Neil Saunders managing director of GlobalData Retail wrote in a note to clients. 

Dollar Tree shares have been halved since late 2022. Shares in premarket trading in New York are lower by about 2%. 

Dollar Tree reaffirmed its fiscal 2024 outlook of $31 billion to $32 billion versus the estimate of $31.41 billion. 

Tyler Durden
Thu, 06/06/2024 – 05:45

NATO’s Hairline Fissures Part 1: Ukraine Membership?

NATO’s Hairline Fissures Part 1: Ukraine Membership?

Authored by Thaddeus G. McCotter via American Greatness,

[This is the first in a two-part series about a pair of divisive issues within NATO regarding Ukraine.]

In response to an earlier instance of Russian aggression, in his July 25, 1961, “Report to the American People on the Berlin Crisis,” President John F. Kennedy warned: “If there is one path above all others to war, it is the path of weakness and disunity.”

Today, it is a warning that must not go unheeded by NATO, as the alliance sees hairline cracks within its unity over how to defend Ukraine, and the Russian aggressor threatens to widen the war beyond its current boundaries and conventional weaponry.

The North Atlantic Treaty Organization (NATO) was founded after World War II to defend the United States and our Western European allies against Soviet aggression and prospective invasion. After the fall of the communist regime, NATO spent the next three decades or so expanding its membership ranks into Eastern Europe, combating terrorism, and engaging in an existential search for a new role in defending the free world.

Yet, Russian revanchism has never rendered NATO’s primary purpose antiquated. Under Mr. Putin’s direction, Russia has invaded Georgia, Crimea, and now Ukraine—all in what the Russian Vozhd has designated his nation’s “near abroad.” Such Russian aggressions and further territorial ambitions have had a roborant effect upon NATO, refocusing it upon its original and never-discarded mission of defending its members from the self-perceived once-and-future eastern imperial empire.

As for the Russian perspective, be it during the Soviet Union or the present Russian Federation, NATO has always remained the primary and immediate obstacle to its expansionist aims. It is no exaggeration to assert that if Mr. Putin could accomplish one goal to ensure the security of Russia and the implementation of its imperial aims, it would be the destruction of NATO.

As a military matter, however, it is not within Russia’s military power to defeat NATO. Echoing what President Lincoln said about the military defeat of the United States, only NATO can defeat NATO. Again, it will not be because of Russian military arms. It will be because NATO is not only a military alliance. NATO is also a political alliance. In the current response to Russia’s criminal invasion of Ukraine, politics appears to be NATO’s Achilles heel.

Mr. Putin knows it and is cagily pitting his NATO antagonists against each other.

The first hairline fracture in NATO’s response to Russia’s invasion of Ukraine was the decision not to offer the besieged nation membership in the western alliance. The reason is elementary: under the NATO treaty’s Article 5, “collective defence means that an attack against one Ally is considered as an attack against all Allies.” Thus, if the Russian invasion is still occurring during Ukraine’s ascension into the NATO alliance, its other members would be considered at war with Russia. Little wonder NATO prefers to continue to collectively defend Ukraine in a proxy war against Russia rather than issuing a catastrophic collective declaration that the allied nations are being attacked by and in a state of war with Russia.

Not wanting to declare World War III, NATO is less than enthralled with Ukraine’s request for membership. As the Kyiv Post headline reports, “some in the West have asked President Zelensky not to pressure individual allies to support a definitive, prescribed timetable for Ukrainian accession.”

In NATO’s membership, the “some” would be the U.S. and Germany:

“The United States and Germany are urging President Volodymyr Zelensky not to demand the ‘impossible’ – a clear timeframe for Ukraine’s acceptance into NATO at the Alliance’s summit, the British newspaper The Telegraph reported on May 28, citing its own sources.

Of course, where there are “some,” there are “some others.” Per the Kyiv Post: “Several member countries, including Estonia, the UK, Poland, Canada, Lithuania, and France, are advocating for increased support for Kyiv, potentially extending into Ukrainian territory.”

In a military and political alliance where there are “some” and there are “some others,” the inevitable occurs: “However, according to [The Telegraph’s] sources, before the NATO summit in Vilnius in July 2023, countries that support Ukraine’s accession to the alliance put strong pressure on other members on this issue, which led to a split in the military bloc.” [Italics, mine.]

On cue, up slithers Mr. Putin to ratchet up the pressure on this hairline fracture in the NATO alliance: “Russian President Vladimir Putin said that Kyiv’s accession to the Alliance would threaten Moscow and not increase Ukraine’s security, as it would create ‘additional tension in the international arena.’”

Why, again, is NATO wary of Ukraine joining the alliance?

“At the NATO summit in Washington, which will be held from July 9 to 11, Ukraine will not be offered anything that would allow the country to move forward on the path to membership because of fears that the alliance could be drawn into a war with Russia.”

As both a military and political organization, NATO was able to diplomatically paper over the dispute and place in abeyance an ultimate determination regarding Ukraine’s membership.

The Telegraph writes that at the NATO summit in Washington, D.C., alliance leaders will offer Ukraine what is now being called a ‘bridge’ or ‘path’ to membership to demonstrate support for the process. The support package being discussed now will emphasize ‘Ukraine’s ability to choose its own future’ and demonstrate that the ‘path to membership is getting shorter….’”

While temporarily papering over this hairline fracture in NATO’s alliance, what is not getting shorter but is widening is another fissure over Ukraine, one that is even more pressing and dangerous: Ukraine’s use of NATO weapons on enemy targets in Russia.

We will explore this issue next week in the second and final part of our series on NATO’s divisive debates over Ukraine.

An American Greatness contributor, the Hon. Thaddeus G. McCotter (M.C., Ret.) served Michigan’s 11th Congressional district from 2003-2012, and served as Chair of the Republican House Policy Committee. Not a lobbyist, he is a frequent public speaker and moderator for public policy seminars; and a Monday co-host of the “John Batchelor Radio Show,” among sundry media appearances.

Tyler Durden
Thu, 06/06/2024 – 05:00

Birth-Rates Are Plunging In The World’s Most Populous Countries

Birth-Rates Are Plunging In The World’s Most Populous Countries

Birth rates are falling in the six most populated countries in the world, though at different speeds.

This graphic, via Visual Capitalist’s Marcus Lu shows the annual births per 1,000 people in the world’s six largest countries by population.

The data is from the UN World Population Prospects (2022) and has been compiled by Our World in Data.

The Global Decline in Fertility Rates

Fertility rates are declining in most places. According to the UN, in 1990, the average number of births per woman globally was 3.2. By 2019, this had fallen to 2.5 births per woman; by 2050, it is expected to decline further to 2.2 births.

Notably, a fertility level of 2.1 births per woman is necessary to avoid a national population decline over the long run (not including net immigration).

China’s birth rate has fallen the fastest in recent years among the countries highlighted here. The country registered 7.6 annual births per 1,000 people in 2021, compared to 24.4 in 1990 and 41.0 in 1950.

This trend suggests that China could face challenges similar to those faced by Japan, which has a vast senior population and significant economic and social implications.

The U.S. registered 11.1 annual births per 1,000 people in 2021, compared to 16.7 in 1990 and 22.8 in 1950. It’s worth noting, however, that the U.S. also adds people to its population through net immigration each year, unlike some other countries in the above dataset.

Nigeria, with the highest birth rate on our list, registered 37.1 annual births per 1,000 people in 2021, compared to 43.8 in 1990 and 45.6 in 1950.

If you enjoyed this post, check out When Will the Global Population Reach Its Peak? This visualization reveals the projected population growth over the next seven decades.

Tyler Durden
Thu, 06/06/2024 – 04:15

Sweden Introduces Draconian ‘Security Zone’ In Gang-Crime Hotspot, Indiscriminate Police Powers To Search Anyone

Sweden Introduces Draconian ‘Security Zone’ In Gang-Crime Hotspot, Indiscriminate Police Powers To Search Anyone

Authored by Thomas Brooke via ReMix News,

After a double homicide shooting earlier this week, Swedish residents in Norrköping’s district of Hageby can be searched or have their vehicles searched without the need for reasonable suspicion

Swedish police have introduced the first “stop-and-frisk-zone” in the country’s history, giving officers the power to search any individual or vehicle without the need for reasonable suspicion.

The draconian measure is in response to a double shooting on Monday evening in the Hageby residential district of Norrköping, a city southwest of Stockholm. Two men were pronounced dead at the scene.

As of Wednesday, the authorities are introducing what is also known as a security zone or visitation zone in the area as officers continue to hunt for perpetrators. A man in his 20s has already been arrested on suspicion of murder.

It is understood the police are holding a press conference later on Tuesday to explain the new powers available to them after the law was passed in April this year to help crack down on rampant gang crime.

It is the first time the law will be implemented anywhere in Sweden.

“The aim is to increase security and make it more difficult for criminals to prepare and carry out violent crimes,” a police statement read.

Monday’s double murder was the latest in a long line of serious crime fuelled by a dramatic rise in gang warfare across the Scandinavian country in recent years.

The police were alerted to a residential apartment building in the district shortly after midnight following reports of gunshots.

“I moved here a month ago. Now, I’m already looking for an apartment elsewhere,” one resident told the SVT broadcaster.

Pauline, another resident, said she was considering installing bulletproof glass in her apartment to protect her children.

“Now I’m starting to think about whether I should put protective glass on my windows. If it’s going to keep exploding, I might have to invest in bulletproof glass, both for my kids and myself,” she said.

District prevention officers have been deployed throughout the area to provide support for residents struggling with the dramatic deterioration in security throughout their neighborhood.

“It no longer seems to come completely unexpectedly, but instead a sense of resignation spreads,” one such officer, Lilli Rubino, said.

A police report published in March this year revealed some 62,000 people in Sweden are connected to criminal gangs. To put this into perspective, consider that Sweden is a small country with only 10.4 million people.

“We are talking about system-threatening crime with a large capacity for violence that silences witnesses, threatens social workers, and infiltrates authorities and political parties,” Justice Minister Gunnar Strömmer said at the time. “In the long run, the criminal networks threaten our free and open society.”

Last month, an 18-year-old Iraqi migrant was detained in Sweden on suspicion of murdering Mikael Janicki, a Polish national who was shot dead in front of his 12-year-old son as they were cycling towards a swimming pool in southern Stockholm last month.

Similarly, three Afghan nationals from the same family were arrested in Sweden on suspicion of murdering their 25-year-old female relative in an “honor killing” before burning and dumping her body in the woods.

Read more here…

Tyler Durden
Thu, 06/06/2024 – 03:30

Israel Signs $3BN Deal With US For 25 F-35 Stealth Jets

Israel Signs $3BN Deal With US For 25 F-35 Stealth Jets

“At time when some of our adversaries aim to undermine our ties with our greatest ally, we only further strengthen our alliance,” Defense Minister Yoav Gallant announced Tuesday upon unveiling Israel’s signing a new $3 billion deal with Lockheed Martin for 25 F-35 fighter jets.

“This sends a powerful message to our enemies across the region,” he continued. This will add a third squadron of the advanced stealth fighters to the Israeli air force arsenal.

F-35 file image, European Defense Review

“The delivery of the aircrafts to the IDF (army) will commence in 2028 at a rate of three to five aircrafts per year,” the defense ministry specified in a statement.

Once the contract is eventually fulfilled, this will bring the total number of F-35s in Israel’s fleet to 75. Israel remains the only country in the Middle East to possess them. The deal was first introduced last summer, when the defense ministry said it was pursuing talks with the US over the transfer.

The newly inked contract underscores Washington’s long-term commitment to Israel’s defense and maintaining complete military technological superiority over enemies and rivals in the region, despite current tensions among the allies over the proposed Gaza ceasefire deal.

As we detailed previously, Israel was the first foreign recipient of the F-35, also known in the US as the Joint Strike Fighter and in Israel by its Hebrew name “Adir.” Israel first used the F-35 in combat when it bombed Syria in 2018.

“The F-35 squadron has become an operational squadron,” Maj. Gen. Amikam Norkin said at the time. “We are flying the F-35 all over the Middle East – we might be the first to attack with F-35 in the Middle East,” he said.

Israel now uses these advanced fighters to regularly attack Syria, often firing from above Lebanese airspace. It has been able to attack what regional media often calls ‘Iranian assets’ in Syria with impunity. 

Already in 2024, Israel has attacked Syria over 40 times, most often in the south of the country – in and around the capital of Damascus.

Israel had for much of the last decade also covertly supported the US-Gulf regime change war against the Syrian state which had the aim of toppling President Bashar al-Assad.

Tyler Durden
Thu, 06/06/2024 – 02:45

Mass Immigration & Decline In Security Intrinsically-Linked, Say Majority Of French

Mass Immigration & Decline In Security Intrinsically-Linked, Say Majority Of French

Authored by Thomas Brooke via ReMix News,

The vast majority of French citizens, including many on the left, believe the growing feeling of insecurity across the country and mass immigration are intrinsically linked, new polling has revealed.

According to a poll conducted by CSA for CNews, Europe 1, and JDD, 68 percent of respondents see a correlation between immigration and the rise in delinquency in France.

The link is widely recognized among right-wing voters, with 94 percent of Republican supporters and 93 percent of those aligned with the National Rally acknowledging such a link. However, a significant minority of those who support pro-immigration left-wing parties also share this concern.

A total of 43 percent of Socialist Party supporters, 38 percent of La France Insoumise (LFI) voters, and 34 percent of Green supporters share the view that high immigration is destabilizing France’s security.

The link is also widely accepted by voters of French President Emmanuel Macron’s governing Renaissance party, with 68 percent of his supporters agreeing there is a link.

Women are more likely than men to agree that immigration is affecting national security, with 70 percent of females agreeing with the statement compared to 67 percent of males.

Similarly, older people view mass immigration less favorably, with 76 percent of those aged 50 and over acknowledging its negative effect on the country, although a majority in every age bracket concurs with that view.

Immigration is a leading issue in France ahead of the European elections taking place later this week and a topic right-wing politicians like Marine Le Pen, Jordan Bardella, and Éric Zemmour are campaigning hard on.

Le Pen and Bardella’s National Rally is expected to dominate the elections and emerge as France’s largest party in the European Parliament, suggesting its hardline approach to mass immigration is resonating with the electorate.

The party’s successes have led to a tactical shift from previous establishment parties, including the center-right Republicans. When asked recently about the links between mass immigration and national insecurity, former French President Nicolas Sarkozy replied, “Who can seriously say that there aren’t any? This does not naturally mean that a foreigner is a delinquent. But of course, the link is obvious.”

“The number of foreigners in our prisons and the part they take in delinquency in general are clear. To deny it is nothing more than a new denial of reality,” he added.

Last August, President Macron said the country needed to “reduce immigration significantly, starting with illegal immigration,” warning the current arrival rate was “not sustainable.”

This followed remarks by Interior Minister Gérald Darmanin a year prior revealing that half of criminal acts in the largest French cities are committed by foreign nationals.

Polling conducted in December last year showed French citizens remained disillusioned with the government’s open-door immigration policy, with 80 percent of respondents supporting a ban on immigration and nearly two-thirds backing a referendum on the issue.

Read more here…

Tyler Durden
Thu, 06/06/2024 – 02:00

21 Attorneys General Demand Revisions To Law School Admissions Standards

21 Attorneys General Demand Revisions To Law School Admissions Standards

Authored by Chase Smith via The Epoch Times (emphasis ours),

Tennessee Attorney General Jonathan Skrmetti. (Courtesy of Jonathan Skrmetti)

Tennessee Attorney General Jonathan Skrmetti and attorneys general from 20 other states have called for significant revisions to the American Bar Association’s (ABA)  Standards and Rules of Procedure for the Approval of Law Schools.

The attorneys general claim in a letter that ABA standards direct law school administrators to violate both the Constitution and Title VII of the Civil Rights Act, which prohibit employment discrimination based on race, color, religion, sex, and national origin.

Their demand comes in response to the Supreme Court’s 2023 decision in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College (SFFA), which ended the use of so-called affirmative action in higher education.

The rule of law cannot long survive if the organization that accredits legal education requires every American law school to ignore the Constitution and civil rights law,” Mr. Skrmetti said in a press release announcing the action.

“The American Bar Association has long pursued the high calling of promoting respect for the law and the integrity of the legal profession, and we call on the organization to recommit to those ideals and ensure that its standards for law schools comport with federal law.

“If the standards continue to insist on treating students and faculty differently based on the color of their skin, they will burden every law school in America with punitive civil rights litigation.”

The coalition of attorneys general emphasized that the ABA’s current Standard 206 on Diversity and Inclusion is incompatible with the Supreme Court’s ruling.

They argue that Standard 206, as it stands, not only encourages but mandates law schools to engage in race-based admissions and hiring practices, which the Court has deemed unconstitutional.

Supreme Court’s Landmark Decision

The Supreme Court’s decision in Students for Fair Admissions was a watershed moment, declaring that the use of race in the admissions processes of Harvard and the University of North Carolina violated the Fourteenth Amendment’s Equal Protection Clause.

The Court stated unequivocally that racial classifications, regardless of their intent, must meet the “daunting” strict-scrutiny standard, which race-based affirmative action programs in higher education cannot satisfy.

The ruling underscored that educational institutions cannot use race as a factor in affording educational opportunities, stressing that any attempt to indirectly achieve race-focused outcomes through ostensibly neutral policies would still warrant strict scrutiny.

This decision necessitates that all educational policies be genuinely race-neutral, aligning with the principle that eliminating racial discrimination means eliminating all forms of it.

Criticism of ABA Standard 206

Standard 206 of the ABA Standards and Rules of Procedure for Approval of Law Schools requires law schools to demonstrate a commitment to diversity and inclusion by providing opportunities for underrepresented groups, particularly racial and ethnic minorities, and to maintain a student body and faculty diverse in gender, race, and ethnicity.

The attorneys general argue that this standard compels law schools to consider race in both admissions and employment, directly contradicting the Supreme Court’s directive.

The letter highlights the problematic nature of Standard 206’s mandate for “concrete action” toward achieving racial diversity, which the attorneys general contend cannot be fulfilled without engaging in unconstitutional race-based practices.

They say that neither the standard nor its interpretations provide guidance on how to achieve diversity goals without unlawfully using race as a factor, thereby setting law schools up for potential legal challenges.

Proposed Revisions Insufficient

The attorneys general also critique the ABA’s proposed revisions to Standard 206, which aim to broaden the diversity criteria to include various identity characteristics.

They argue that bundling race with other characteristics does not address the fundamental constitutional issues raised by the Supreme Court’s decision.

The proposed revisions, they assert, still implicitly require law schools to consider race, thus failing to bring the standard into compliance with federal law.

The letter calls for clarity and alignment with the Constitution, urging the ABA to ensure that complying with binding nondiscrimination laws does not jeopardize a law school’s accreditation.

The attorneys general stress that the current and revised standards force law schools into a precarious position, balancing between adhering to federal law and meeting the ABA’s accreditation requirements, which could lead to significant legal and operational repercussions.

The coalition of attorneys general, led by Mr. Skrmetti, argues for the ABA to revise its diversity standards in a manner that fully complies with the Supreme Court’s ruling and federal law.

They warn that without such revisions, law schools may face punitive civil-rights litigation and risk perpetuating a culture of legal and ethical ambiguity that could undermine the profession and the nation.

States joining Tennessee in the letter to the ABA were Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, South Dakota, Texas, Utah, and Virginia.

The Epoch Times reached out for comment from the ABA.

Tyler Durden
Wed, 06/05/2024 – 23:20

ECB Preview And Scenario Analysis: The First Rate Cut Since 2019

ECB Preview And Scenario Analysis: The First Rate Cut Since 2019

Hot on the heels of the first G7 central bank rate cut this cycle, when the BOC cut rates by 25bps this morning, tomorrow the ECB is widely expected to follow suit and lower the deposit rate from 4.00% to 3.75% for the first time since September 2019, with markets assigning a 94% chance to this outcome. With a rate cut effectively guaranteed (absent some shock) focus will be on hints over future rate cuts, with markets not fully pricing in another move until December. Changes to staff projections are likely to be minimal. In their preview, Bank of America strategists agree that a 25bps rate cut is coming, and expect “a lot more to come by mid-2025.” That said, guidance for a meeting-by-meeting approach and data dependence probably won’t change. Small forecast revisions higher to 2024/25 are likely, but 2% core inflation in 2026 should stay, providing a soft signal to a September cut, data permitting.

In rates markets, a cut by the European Central Bank on Thursday is already fully baked into the curve, with forward pricing nearly 25bp. But as ING Economics notes, it’s the outlook beyond June that is still open, despite communication from officials having started to move out the curve. A back-to-back cut in July is deemed unlikely, with markets attaching only a roughly 10% chance to that scenario. A second cut is almost fully priced by October, but it’s a third cut this year that is hanging in the balance. The pricing further out the curve is also influenced by drivers from abroad: weaker US data as well as sliding oil prices have also helped push rates lower in the eurozone. While EUR markets have been leaning towards a three-cut scenario for this year again, the domestic data on negotiated wages and the latest CPI print over the past weeks would argue for a more hawkish line at the upcoming meeting.

Therefore, there is room for markets to reprice higher – but in the end, they will oscillate around the two or three-cuts scenario for now unless we get more evidence from the data. This will also spill out into the longer end of the curve, but here the factors from abroad should be felt even more with the US jobs data looming large. This will then determine whether we can get above 2.6% more lastingly in the 10Y Bund yield on a hawkish ECB.

Courtesy of Newsquawk, here are some other key considerations ahead of the ECB’s first rate cut in five years:

PRIOR MEETING: As expected, the ECB opted to stand pat on rates once again. The policy statement reaffirmed guidance that rates will be kept sufficiently restrictive for sufficiently long. Furthermore, policymakers will continue to follow a data-dependent and meeting-by-meeting approach and will not pre-commit to a particular rate path. That being said, and what was a new inclusion for the statement, it was noted that if the Governing Council was to gain further confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction. In the follow-up press conference, when questioned about a potential rate cut in June, Lagarde reiterated that the ECB will have a lot more data by the time of the June meeting. In terms of the unanimity of the announcement, Lagarde stated that “a few” dissenters felt “sufficiently confident” about altering policy at the meeting, however, they ultimately rallied around the consensus. This could potentially be in-fitting with source reporting in the wake of the previous meeting which suggested some policymakers floated the idea of a second cut in July to win over a small group still pushing for an April start.

RECENT ECONOMIC DEVELOPMENTS: In terms of developments since the prior meeting, inflation in May rose to 2.6% from 2.4% with the super-core measure increasing to 2.9% from 2.7% with some of the increases related to base effects. The ECB’s consumer expectations survey for April saw the 12-month inflation forecast nudge lower to 2.9% from 3.0%. For market gauges, the 5y5y forward has ticked marginally higher from 2.35% to 2.36%. Elsewhere, Q1 Eurozone wages rose to 4.69% from 4.45% with the release followed up by an ECB blog stating that “wage growth reflects multiyear adjustment and wage pressures look set to decelerate in 2024”. From a growth perspective, Q1 GDP came in at 0.3% Q/Q vs. prev. 0.0%, whilst more timely survey data showed the EZ-composite PMI moved further into expansionary territory (52.3 vs. prev. 51.7) thanks to a pick up in the manufacturing sector. The accompanying report noted “considering the PMI numbers in our GDP nowcast, the Eurozone will probably grow at a rate of 0.3% during the second quarter, putting aside the spectre of recession”. Elsewhere, the EZ unemployment rate sits at a historic low of 6.4%.

RECENT COMMUNICATIONS: Rhetoric since the April meeting has seen President Lagarde remark that the ECB will cut rates soon, barring any major surprises, whilst she is “really confident” that they have inflation under control. Chief Economist Lane noted that keeping rates overly restrictive for too long could push inflation below target in the medium-term which would require corrective action. Furthermore, he notes that the ECB thinks inflation over the coming months will bounce around at the current level and then will see another phase of disinflation bringing them back to the target later next year. Thought-leader Schnabel of Germany remarked that some elements of inflation are proving persistent and would caution against moving too fast on rates. At the hawkish end of the spectrum, Austria’s Holzmann has tried to make the case for pausing the July meeting, whilst Netherland’s Knot has stated that projection round meetings will be the key for interest rate decisions. For the doves, Italy’s Panetta commented that the ECB must weigh risk of monetary policy becoming too tight, adding that timely and small rate cuts would counter weak demand, whilst Greece’s Stournaras is of the view that three rate cuts are more likely this year.

RATES: Expectations are for the ECB to lower the deposit rate for the first time since September 2019. Analysts are unanimous in their view that the deposit rate will be lowered from 4.0% to 3.75% with markets assigning a roughly 94% chance of such an outcome. With a 25bps cut so widely expected, the fight on the GC between the hawks and doves will be what comes thereafter with the former likely to make the case for pausing on rates in July given potential emerging upside risks to inflation, whilst the latter is set to argue that keeping policy too tight could push inflation below target. As such, any tweaks to the policy statement, hinting at further action will be of note to the market. Accordingly, focus for the release will be on how pricing beyond June evolves with the next rate cut thereafter not fully priced until December (total of 56bps of cuts seen by year-end). However, ING cautions that given the data dependency of the Bank, this debate is unlikely to be resolved in June.

MACRO PROJECTIONS: For the accompanying macro projections, ING notes that since the prior forecast round in March, oil prices have risen (from roughly USD 75/bbl at the time), which would be pro-inflationary. However, offsetting this, is the more hawkish market curve which sees around 113bps of cuts by the end of 2025 vs. around 150bps in March. Overall, the bank expects “a slight upward revision of growth and inflation for this year but no changes to the profile and the timing of inflation dropping below 2%”. That being said, economists at the Bank note “the risks of inflation remaining sticky and not being entirely under control are increasing”.

March staff projections

HICP INFLATION:

  • 2024: 2.3% (exp. 2.4%)
  • 2025: 2.0% (exp. 2.1%)
  • 2026: 1.9% (exp. 2.0%)

HICP CORE INFLATION (EX-ENERGY & FOOD):

  • 2024: 2.6%
  • 2025: 2.1%
  • 2026: 2.0%

GDP:

  • 2024: 0.6% (exp. 0.7%)
  • 2025: 1.5% (exp. 1.4%)
  • 2026: 1.6% (exp. 1.4%)

Finally, courtesy of ING, here is a scenario analysis laying out how to position for the various alternatives:

Tyler Durden
Wed, 06/05/2024 – 22:52