The CFPB Wants You To Pay For Mistakes Of Others

The CFPB Wants You To Pay For Mistakes Of Others

Authored by Jon Decker via RealClearMarkets.com,

Imagine receiving an email from a stranger offering you one hundred thousand dollars in a week if you send them ten thousand dollars today. Most of us would immediately recognize this as a scam and avoid it. However, what if you were guaranteed to get your initial ten thousand dollars back, even if it turned out to be a fraud? It seems obvious that removing such risk would encourage people to make reckless financial decisions – to everyone except President Biden’s Consumer Financial Protection Bureau (CFPB.) This is evidenced by their recent lawsuit against the fintech payment service Zelle.

The CFPB is suing Zelle arguing that it should be forced to reimburse anyone who unwittingly transfers their own money to a scammer. Its actions seem all the more disingenuous given that no federal law endorsed or approved by Congress saddles fintech payment processors with such liability — but progressives have long been trying to create one.

Now with a new administration incoming, CFPB Chair Rohit Chopra and his army of bureaucrats are making a final push to circumvent Congress and enact laws themselves to burnish their resumés before Trump cleans house. If Chopra’s policies are so beneficial or popular, why can’t they receive a vote in Congress? 

What the CFPB is asking Zelle to do is akin to forcing us to reimburse others for their online gambling losses. It presents a unique moral hazard by effectively making Zelle provide ‘scam insurance’ on its peer-to-peer platform where users directly self-authorize transactions. How could such platforms possibly ensure that any and every time its customers send money to another (at their behest) it’s not a scam? The notion that people should be able to irresponsibly send money – despite receiving warnings from the app, already in place – to an unvetted dubious recipient without consequences is one of the more wrongheaded ideas to have ever been floated when it comes to regulating our banks.

If the lawsuit succeeds, the results would be cruel to Zelle users. They would inevitably be asked to either foot the bill for the mistakes of others or even face de-banking where Zelle — or similar services like Venmo — are no longer available. Accounts deemed more at-risk would bear the brunt of this. There is reason to suggest ‘de-banking’ is actually the desired goal, given Sens. Bernie Sanders and Elizabeth Warren’s support for “postal banking, ” which would give the government more lending power at the expense of the productive private sector.

The Zelle lawsuit follows a worrisome pattern from Biden’s CFPB. Chairman Chopra also recently announced his new rule to cap overdraft fees, which would both reduce the availability of overdraft services and, more concerningly, increase the incentives for people to overdraft in the first place – a practice that prudent minds have long understood should be avoided. Taken together, the Biden administration is destabilizing parts of our financial sector in its final days, unfortunately adding to the Trump administration’s laundry list of policies that need to be cleaned up.

For Zelle’s customers, let’s hope they do so expeditiously. 

Tyler Durden
Thu, 01/02/2025 – 14:00

via ZeroHedge News https://ift.tt/RUWEJ1v Tyler Durden

Make Lithium Great Again: Peer-Reviewed Study Reveals Whole-Body Benefits Of Supplementation

Make Lithium Great Again: Peer-Reviewed Study Reveals Whole-Body Benefits Of Supplementation

Lithium is best known as a medication for treating bipolar disorder, where it’s used in higher doses to stabilize mood and reduce the risk of suicide. But now, researchers are uncovering evidence that this humble mineral may offer benefits far beyond mental health – at doses much smaller than those used in traditional therapies. A 2023 study from Brock University explored these possibilities in depth.

Before we continue – yes, we sell low-dose lithium in a product called Mood from IQ Biologix. We take it. It works – really well. Whether or not you give it a try, please read on as the findings from the above study are legit, and this naturally occurring mineral can be a great alternative to prescription drugs for a variety of needs. If you’re into studies, we encourage you to read it.

Published in the peer-reviewed Current Neuropharmacology, the findings suggest lithium may play a huge role in some of the biggest health challenges of aging, including Alzheimer’s disease, osteoporosis, and type 2 diabetes.

Brain Health: Lithium’s Hidden Gift

Lithium’s connection to mental health is well established. It stabilizes mood by helping balance chemicals in the brain, like serotonin and dopamine, that influence how we feel and respond to stress. But according to the study, even tiny doses of lithium could protect the brain in other ways. One of the most promising applications is cognitive decline, including Alzheimer’s disease.

“Li is well-known to have multiple neuroprotective effects that can be used against Alzheimer’s Disease pathology. In fact, numerous studies in patients receiving Li for bipolar disorder have reported lower rates of dementias, including AD.” –Beyond Its Psychiatric Use: The Benefits of Low-Dose Lithium Supplementation, 2023

The researchers found that lithium inhibits glycogen synthase kinase 3 (GSK3), an enzyme linked to the buildup of harmful plaques and tangles in the brain. By reducing these toxic accumulations and boosting levels of a brain-supportive protein called BDNF, lithium may help preserve memory and cognitive function well into old age. The study also referenced ecological research showing that areas with higher levels of lithium in drinking water had lower death rates from Alzheimer’s disease [1, 2, 3]. While the exact reasons are still unclear, these findings point to lithium’s potential for maintaining brain health over time. 

What about that famously fabricated research on the Amyloid Plaque hypothesis? That focused on a narrow subpopulation of amyloid beta oligomers – while the original hypothesis itself is alive and well. Current research suggests Alzheimer’s is a combination of amyloid plaque accumulation, misfolded proteins, neuroinflammation of Microglia cells (the brain’s primary immune cells), genetic factors, oxidative stress, mitochondrial dysfunction, synaptic loss, and cerebrovascular issues.

A Stronger Heart and Healthier Arteries

Lithium’s benefits don’t stop with the brain—it may also help keep your heart healthy. At low doses, the researchers found that lithium supports the heart’s ability to adapt to stress, helping it pump blood more effectively. It also protects blood vessels by reducing inflammation and preventing harmful plaque buildup, which can block circulation. However, the study highlighted an important consideration: while lithium’s short-term effects on the heart are positive, long-term use might carry risks under certain conditions. Prolonged GSK3 inhibition, for instance, could contribute to excessive heart muscle growth in specific scenarios, such as chronic stress on the heart. More research is needed to fully understand these potential effects.

Building Strong Bones and Maintaining Muscle

Aging often brings declines in bone strength and muscle mass, increasing the risk of fractures and mobility issues. The study found that lithium may counteract these changes by directly supporting bone and muscle health. In bones, the researchers showed that lithium activates pathways encouraging bone-forming cells, called osteoblasts, to work more effectively. This process increased bone density and improved fracture healing in animal models. In some cases, lithium even restored bone strength in fragile skeletons to levels seen in healthy controls.

For muscles, lithium was shown to enhance repair by promoting the fusion of muscle cells during regeneration. It also encouraged a shift toward fatigue-resistant muscle fibers, which could help preserve strength and mobility as we age, reducing the risk of falls and fractures.

Tackling Inflammation and Cellular Damage

As we get older, our bodies tend to experience more inflammation and damage from unstable molecules called free radicals. These issues, collectively referred to as oxidative stress, can lead to chronic diseases and accelerate aging. According to the study, lithium helps combat these issues in several ways. It reduces inflammation and supports a cellular “clean-up” process called autophagy, which clears out damaged proteins and debris. By enhancing these processes, lithium may help cells maintain their function and resilience over time.

Metabolism Support: Fighting Fat and Sugar Issues

Another surprising benefit of low-dose lithium is its potential role in preventing obesity and type 2 diabetes. While high doses of lithium can sometimes cause weight gain, the study found that smaller amounts may have the opposite effect. The researchers demonstrated that lithium helped convert white fat (which primarily stores energy) into beige fat, a more metabolically active type that burns calories. It also improved blood sugar control in animal studies, mimicking some of the effects of exercise. These findings suggest lithium may be a valuable tool in managing metabolic health.

“Of interest, we have recently shown, at the population level, trace levels of Li found in publicly available drinking water to be negatively associated with the prevalence of obesity and diabetes across the state of Texas.”

A New Chapter for Lithium

While the potential benefits of low-dose lithium are exciting, this is still an emerging field. Scientists, including Hamstra and her team, are working to determine the best ways to use lithium safely over the long term. What’s clear is that lithium—once seen only as a psychiatric medication—is revealing itself as a versatile and powerful mineral for overall health. From protecting the brain to strengthening the heart, bones, and muscles, this overlooked element may hold the key to staying healthier, longer. As researchers continue to explore lithium’s potential, it offers a glimpse of what the future of aging well could look like. For now, this tiny but mighty mineral is quietly making its case as a surprising ally in the quest for a healthier life.

Snag some low-dose lithium here

Tyler Durden
Thu, 01/02/2025 – 13:45

via ZeroHedge News https://ift.tt/5xp0bKH Tyler Durden

Federal Judge Rules For Pfizer In Lawsuit Over Company’s COVID-19 Vaccine

Federal Judge Rules For Pfizer In Lawsuit Over Company’s COVID-19 Vaccine

Authored by Zachary Stieber via The Epoch Times,

A federal judge has thrown out a lawsuit brought by Texas against Pfizer, finding that U.S. law protects Pfizer due to the emergency declared over the COVID-19 pandemic.

Several laws shield Pfizer from claims that it misrepresented the efficacy of its vaccine, U.S. District Judge Sam R. Cummings said in the Dec. 30 ruling.

“The Court finds that as a matter of law under the circumstances of this case, the Defendant is entitled to immunity under the Public Readiness and Emergency Act (PREP Act),” Cummings wrote.

He also said that both the PREP Act and the Food, Drug, and Cosmetic Act, preempt the allegations from Texas.

Texas Attorney General Ken Paxton in 2023 brought the suit in county court, alleging Pfizer misrepresented the results of the clinical trial that tested its COVID-19 vaccine.

Pfizer and its partner promoted the vaccine as 95 percent effective against COVID-19 infection, but the companies relied on just two months of trial data.

“Of 17,000 placebo recipients, only 162 acquired COVID-19 during this two-month period. Based on those numbers, vaccination status had a negligible impact on whether a trial participant contracted COVID-19,” the suit stated.

“The risk of acquiring COVID-19 was so small in the first instance during this short window that Pfizer’s vaccine only fractionally improved a person’s risk of infection.”

Texas officials accused Pfizer of violating several laws, including the Food, Drug, and Cosmetic Act, that prohibit misleading advertising.

Pfizer removed the case to federal court and said in court filings that it was protected against the suit by the PREP Act.

The act states in part that it grants immunity “from suit and liability under Federal and State law with respect to all claims for loss caused by, arising out of, relating to, or resulting from the administration to or the use by an individual of a covered countermeasure,” with narrow exceptions, during an emergency.

The U.S. health secretary declared an emergency over COVID-19 in 2020. Immunity for vaccine makers was recently extended through 2029.

“The statute provides immunity from claims for ‘any type of loss’ related to the administration or use of Pfizer’s vaccine,” Pfizer lawyers wrote in a brief in support of the company’s motion to dismiss the case, quoting from a ruling in a separate case.

“The claims here fall squarely within this broad definition of ‘loss.’”

Texas lawyers said in response that the PREP Act does not shield Pfizer in part because Congress did not preempt state claims against drug manufacturers.

“The State’s Complaint contains well-pled factual allegations focusing on Pfizer’s gross misrepresentations to the public about specific aspects of its vaccine’s performance, and that is not preempted,” they told Cummings.

Cummings sided with Pfizer in his brief ruling, which concluded by saying the case was dismissed “for essentially the reasons argued in the Motion and Reply” from Pfizer.

Paxton’s office and Pfizer did not respond to requests for comment.

Tyler Durden
Thu, 01/02/2025 – 13:20

via ZeroHedge News https://ift.tt/8OpPDlL Tyler Durden

Old Man Winter Points Crosshairs On US Mid-Atlantic

Old Man Winter Points Crosshairs On US Mid-Atlantic

The latest forecast model guidance shows a possible winter storm or wintery mix late Sunday night into Monday for the Mid-Atlantic region.

“Quick morning update to my snow potential map for the Jan 5-6 storm – this is still subject to some changes, but confidence is gradually increasing on the following corridor,” meteorologist Tomer Burg wrote on X. 

 Mike’s Weather Page wrote in a separate X post, “Things stay stable through the weekend for the SE. A Monday AM cold front line incoming here. Cold air behind for next week with the next round towards the following weekend. That’s the south and/or east snow maker question mark.”

“The Northeast Direct Snow Train will be making stops in DC, Baltimore, Philly and NY City on Monday,” WBAL TV (Baltimore-based) meteorologist Tony Pann wrote on X. 

More on the incoming storm from meteorologist Ryan Maue.

Bloomberg data shows that the average temperatures in the Lower 48 are set to trend under a 30-year mean for the next two weeks. What happened to global warming?

By the way…

Latest reporting on weather and energy markets:

Old Man Winter is inbound. 

Tyler Durden
Thu, 01/02/2025 – 13:00

via ZeroHedge News https://ift.tt/UpRkcFh Tyler Durden

Why A US Bitcoin Strategic Reserve Is Critical To Fending Off China

Why A US Bitcoin Strategic Reserve Is Critical To Fending Off China

Authored by Zac Townsend via CoinDesk.com,

Finance is increasingly a weapon of war. United States policymakers and our allies focus too narrowly on macroeconomic tools like sanctions and promoting the dollar as a reserve currency when the modern front is evolving. Today, the real battles are being waged on smartphones and in the global currency markets.

China is waging a multi-decade plan to displace the United States’ greatest asset: the dollar. The dollar is critical to the United States’ economic and geopolitical power as the global reserve currency. Without it, our influence would weaken, and our debt would become a bigger problem. This is precisely what the Chinese Communist Party and the Kremlin want.

China and Russia have shed billions of dollars worth of U.S. Treasury holdings while growing their stockpiles of gold. Our sanctions, designed to separate countries from the “Western” economic system, are no longer enough of a deterrent for those who can control financial activity within their borders and project their power outward.

Authoritarian adversaries — including China, Iran and Russia — are actively building parallel cross-border economic systems that will pull into their orbits not only neighboring countries but also our allies who trade heavily with them.

For example, over half of businesses in Japan accept Alipay, while more than one-third accept WeChat Pay. This distribution gives two Chinese firms unprecedented visibility into the individual market transactions of Japanese consumers and businesses. It could allow China to disrupt Japan’s economy should tensions escalate, such as in a potential conflict over Taiwan.

How the U.S. can respond

China sees financial technology and cryptocurrency as tools to extend its financial power and surveillance globally. The United States must respond in two ways: export our financial technology and systems worldwide and embrace bitcoin as a strategic reserve asset instead of stifling innovation.

Lawmakers and politicians on both sides of the aisle, most notably President-elect Donald Trump, recognize the power of holding bitcoin on the nation’s balance sheet as a hedge against inflation. This direction would also strengthen U.S. resilience against economic challenges posed by China’s financial strategies.

The Federal Reserve, like many central banks, holds a diverse portfolio of reserve assets. As of 2024, this includes approximately $35 billion in foreign currencies and $11 billion in gold stock. These holdings demonstrate America’s economic strength and provide liquidity during financial stress. However, in our rapidly digitizing world, the absence of a native digital asset in this portfolio is becoming increasingly conspicuous.

With its global reach and growing adoption, bitcoin is the ideal candidate to fill this gap. Often called “digital gold,” bitcoin is a scarce commodity. The U.S. is the largest nation-state holder of bitcoin, having seized 210,000 coins from illegal actors. This gives the U.S. a first-mover advantage and could secure our economic future.

Critics may argue that bitcoin’s volatility makes it unsuitable as a reserve asset. However, this volatility will likely decrease as adoption grows and the market matures. In 2021, El Salvador recognized bitcoin as legal tender and began purchasing it as a treasury reserve asset. They have seen a 100% increase in value and have no intention of selling.

A multi-front war

The U.S. must recognize we are already in a multi-front war with China. One of these fronts is financial services, and crypto is a weapon in our arsenal. Losing this battle means global financial services and individual financial activity would be dominated by adversarial states focused on control, surveillance and dominance — and a continued attack on our currency.

Trump understands this, telling Bloomberg in July, “If we don’t do it, China is going to pick [bitcoin] up.”

Projecting American financial power also requires the government to empower, enable and encourage our private economic sector to interact with contested economies throughout the Indo-Pacific and beyond. Expanding the use of our payment systems, banks and dollars — even where it’s controversial — is essential.

Right now, our adversaries are winning because we aren’t even playing. They are exporting their systems, institutions and surveillance tools worldwide. Meanwhile, we’ve done little as TikTok, a serious threat to our national security, captivates an entire generation of Americans. We must do the same with financial technology because no disruption would be greater to our enemies.

The U.S. should more explicitly weaponize financial technology and crypto. For example, we should endorse decentralized financial technology that enables citizens of hostile governments like Iran to use smartphones to access USD-based stablecoins and payment services, in order to begin separating their economic activity from their government’s control. At its core, power is about control — not just of police or national security but of resources and economies.

The world is at a financial crossroads. The question isn’t whether digital currencies will shape the future but how we will adapt to this new reality. The U.S. can shape this future by embracing bitcoin as a reserve asset. The time for bold action is now, and the benefits for global financial stability and innovation could be profound.

Tyler Durden
Thu, 01/02/2025 – 12:45

via ZeroHedge News https://ift.tt/lCiE0z4 Tyler Durden

“Another ESG Rat Jumps Ship”: Morgan Stanley Quits Net-Zero Banking Alliance Ahead Of Trump 2.0

“Another ESG Rat Jumps Ship”: Morgan Stanley Quits Net-Zero Banking Alliance Ahead Of Trump 2.0

The US could be in the very early stages of recovery after a decade of toxic ESG and Net Zero initiatives, widely criticized as one of the biggest financial and ideological blunders in a generation. Wall Street firms increasingly recognize that the “woke capitalism” era in corporate America will come to an abrupt end under Trump 2.0. 

Bloomberg reports that Morgan Stanley is the latest Wall Street firm to abandon the Net-Zero Banking Alliance (NZBA), a group of banks worldwide that push woke climate initiatives. 

Morgan Stanley’s exit comes after Wells Fargo and Goldman Sachs left NZBA early last month. 

“Another ESG rat jumps ship,” Steve Milloy, a lawyer who served under Trump 1.0, wrote on X.

According to Bloomberg, “NZBA coordinates its work with the Glasgow Financial Alliance for Net Zero, which is backed by the United Nations. GFANZ said earlier this week it’s making changes that will “redouble its efforts to mobilize private capital” and support the energy transition.” 

On X, Bloomberg’s Javier Blas wrote, “Wall Street is quitting en masse the Net-Zero Banking Alliance.” 

Data from Preqin Pro shows ESG fundraising peaked in 2022 and has since plunged into the first half of 2024. Wall Street discovered that ESG and woke capitalism don’t translate into solid returns. The green bubble has popped.

In November, Texas Attorney General Ken Paxton and ten other states sued BlackRock, State Street Corporation, and Vanguard Group “for conspiring to artificially constrict the market for coal through anticompetitive trade practices.” 

Paxton wrote in a statement:

“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices. Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”

After billions of dollars were poured “straight into the dumpster” of risky climate investments, as one X user explained…

We have highlighted that nuclear is the only sustainable clean energy solution.

Everything else is just a scheme to siphon taxpayer dollars.

In other words, a giant political shift is underway. So, about BlackRock’s Larry Fink… 

Tyler Durden
Thu, 01/02/2025 – 12:20

via ZeroHedge News https://ift.tt/5Ysr6Wv Tyler Durden

Republicans Have The Slimmest House Majority Since 1931, What It Means

Republicans Have The Slimmest House Majority Since 1931, What It Means

Authored by Mike Shedlock via MishTalk.com,

If Republicans cannot elect a Speaker, Senator Chuck Grassley could be the next President.

The Next Speaker

If no one quickly wins the gavel, certification of President-elect Trump’s victory could be delayed. Rules then would make Senator Chuck Grassley the president.

That is possible, but highly unlikely in practice, explained below.

However, at least one Republican is a confirmed no for Johnson. A second no would do Johnson in.

How Mike Johnson Could Lose the House Speaker Vote

The Wall Street Journal reports How Mike Johnson Could Lose the House Speaker Vote.

What happens on Jan. 3, and how does the speaker vote work?

Under the Constitution, newly elected and returning House members gather in the Capitol. First they have to elect a speaker, which requires a majority of those who vote for a particular person—abstaining or voting “present” doesn’t count in the calculations. The declared candidate for Republicans, who will hold a narrow majority in the new session, is incumbent Johnson. Democrats back Rep. Hakeem Jeffries (D., N.Y.).

If no one receives a majority of votes cast for a named candidate, more ballots will be held until someone wins a majority. When Rep. Kevin McCarthy (R., Calif.) ran for speaker in January 2023, he wasn’t able to secure the gavel until the early hours of the morning on Jan. 7, after four grueling days of voting and 15 ballots.

One Republican—Rep. Thomas Massie (R., Ky.)—has said he would oppose Johnson, and several others have said they are undecided. All it would take to cost Johnson the speakership is for one more House Republican to vote for a different person, assuming all Democrats oppose him. But it is unclear whether any other candidate could win a majority.

It took three weeks of failed votes for other candidates before House Republicans elected Johnson in the fall of 2023.

What happens if no speaker is quickly elected?

Without a speaker, members can’t be sworn in, and the House can’t organize itself. A law dating back to the first Congress in 1789 requires the election of the speaker to precede any other business, including the swearing in of new members, the formation of committees and the passage of any legislation. The failure to elect a speaker could also delay the certification of Trump’s Electoral College victory, which by law is scheduled for Jan. 6.

Who are the key players in the speaker vote on Jan. 3?

Trump: Trump endorsed Johnson for speaker, boosting his prospects. But the president-elect’s support isn’t a guarantee that Johnson can lock up the needed votes. Johnson has been calling skeptical Republican lawmakers, trying to tamp down their concerns about his leadership.

Massie: Massie said he respects Trump but wasn’t swayed by his endorsement of Johnson. As long as Massie is determined to vote for someone else for speaker, Johnson can afford to lose only one more vote. This math gives all other members of the Republican conference enormous leverage to make demands of Johnson in exchange for their votes.

Rep. Andy Harris (R., Md.): Harris, who chairs the conservative House Freedom Caucus, has said he is uncertain of how he will vote. Harris has concerns about government spending, and he wants Johnson to commit to structural changes, including an overhaul of the amendment process, and giving priority to internal GOP debate before bills are introduced on the floor. He told The Wall Street Journal that a “significant number” of House Freedom Caucus members are similarly unconvinced.

Rep. Chip Roy (R., Texas): Roy is a prominent member of the House Freedom Caucus, who, like Massie, endorsed Florida Gov. Ron DeSantis over Trump in the 2024 GOP presidential primary. Roy helped lead opposition against a stopgap spending bill that Johnson negotiated with Democrats in December. He also opposed a slimmed-down version of the bill that included a debt-ceiling increase Trump wanted. He hasn’t said how he will vote for speaker.

Rep. Victoria Spartz (R., Ind.): Spartz has said she is undecided on whether to vote for Johnson. On Monday, she called for the next speaker to create temporary structures for the House to initiate government spending audits. Johnson said he recently spoke with her.

How could Trump’s certification on Jan. 6 as president be affected by a delay?

If no speaker is elected by Jan. 6, Congress likely won’t be able to ratify Trump’s election or the election of Vice President-elect JD Vance. If there is still no speaker, no functioning House, and no certification by Inauguration Day on Jan. 20, then the new GOP-controlled Senate’s president pro-tempore, 91-year-old Sen. Chuck Grassley (R., Iowa), would become president, according to the presidential line of succession.

There is no chance of Grassley becoming president. Republicans could easily elect a caretaker Speaker long enough ratify Trump.

However, I have to ask again, what precisely is the Republican mandate, if it only takes two willing to stand up to Trump to derail legislation.

One might wonder Why Does Trump Support Johnson for Speaker of the House?

Q1 of the Day: Why does Trump like Johnson?
Q1 Answer: Trump now believes Johnson will do whatever Trump says.

Team DOGE (Elon Musk and Vivek Ramaswamy) are willing to go along with Johnson because Trump is. Otherwise, they would both be trashing Johnson.

Johnson vs McCarthy

In practice, Mike Johnson has proven to be much worse than Kevin McCarthy. I called that in advance.

Q2 of the Day: Seriously, is there no now one better than Johnson (who would take the job)?
Q2 Answer: What’s the definition of better?

If better means someone who will suck up to Trump no matter what Trump wants, then perhaps there is no one better.

Otherwise, pull a random Republican name out of the hat and you would likely be no worse off and perhaps much better off.

And so, here we are.

It is going to be very hard to pass legislation without support from some Democrats and that alone likely means bigger budget deficits.

Tyler Durden
Thu, 01/02/2025 – 12:05

via ZeroHedge News https://ift.tt/gsaH4Rt Tyler Durden

Apple Offers Rare iPhone Discounts In China Amid Intensifying Huawei Competition

Apple Offers Rare iPhone Discounts In China Amid Intensifying Huawei Competition

Apple struggled with selling iPhones in China in 2024 as rivals like Huawei and Xiaomi took away market share from the world’s most valuable company. As a result, Tim Cook has been pressured to offer “rare discounts” on iPhones in the world’s largest handset market. 

Reuters reports that discounts of up to 500 yuan ($68.50) are being offered in a four-day promotion for the flagship iPhone 16 Pro, running from Saturday through next Tuesday.

The four-day promotion, running from Jan. 4-7, applies to several iPhone models when purchased using specific payment methods, according to its website. The flagship iPhone 16 Pro with a starting price of 7,999 yuan and the iPhone 16 Pro Max with a starting price of 9,999 yuan will see the highest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction. -RTRS

Apple’s sales in China have been under pressure with increasing domestic competition. For a brief moment, Apple fell out of the top five smartphone vendors in the world’s second-largest economy in the second quarter of 2024. It did recover in the third quarter, yet sales did decline year-on-year.

Meanwhile, Huawei’s sales surged as the Chinese tech firm introduced new ‘made-in-China‘ smartphones featuring a new operating system and domestically produced chips to power the devices. Strong patriotic fervor in the country has also led to consumers ditching iPhones for domestic ones.  

Apple’s earnings in the fourth quarter beat revenue estimates, but sales in China missed and dropped year over year. China weakness is certainly showing up in earnings, hence why Cook has been forced to offer “rare discounts” on iPhones. 

Reuters added:

The Apple promotion also includes discounts of 200 to 300 yuan on older iPhone models, as well as other categories of products such as MacBook laptops and iPad tablets. Customers must use designated payment methods including WeChat Pay or Alipay to qualify for the discounts.

Gene Munster, managing partner at Deepwater Asset Management, described Apple’s China unit as “a disappointment in ’24, full stop.” 

It’s not just China. The whole AI-powered iPhone supercycle theme was a total bust elsewhere.  

Cook’s troubles could multiply as Trump’s tariff war with China complicates matters for the world’s most valuable company. 

Goldman’s Allen Chang and Verena Jeng recently noted that an increasing number of Chinese handset brands are releasing AI smartphones for the mid-end market for as low as $168.

We asked: “How Will Apple Compete With $168 AI Smartphones From China?”

Tyler Durden
Thu, 01/02/2025 – 11:40

via ZeroHedge News https://ift.tt/kwysSa2 Tyler Durden

Court Upholds $7.8 Million Verdict For Transit Workers Fired For Refusing COVID-19 Vaccine

Court Upholds $7.8 Million Verdict For Transit Workers Fired For Refusing COVID-19 Vaccine

Authored by Tom Ozimek via The Epoch Times (emphasis ours),

A federal judge in California has rejected an effort by Bay Area Rapid Transit (BART) to overturn a jury verdict that awarded $7.8 million to six former employees who were fired for refusing to comply with the agency’s COVID-19 vaccine mandate on religious grounds.

A woman receives a COVID-19 vaccine in Los Angeles on March 25, 2021. Lucy Nicholson/Reuters

In a Dec. 30 order, Judge William A. Alsup of the U.S. District Court for the Northern District of California acknowledged minor “imperfections” in the jury trial—including flawed instructions to the jurors—and determined they were not severe enough to invalidate the jury’s October decision requiring BART to pay each of the six former workers between $1.2 million and $1.5 million.

Alsup denied BART’s post-trial motions to overturn the verdict and seek a new trial, saying that the agency failed to demonstrate that accommodating the employees’ religious objections would have posed an undue hardship.

Simply put, on the instructions given and evidence received, a reasonable jury could have found that BART had not carried its burden of proving its affirmative defense,” Alsup wrote, referring to the fact that, in order to prevail in the case, BART had to prove that granting accommodations such as masking, testing, or remote work in lieu of vaccination would have imposed an undue burden on the agency.

BART’s defense relied heavily on expert testimony to argue that no alternative measures were as effective as vaccination against COVID-19, with the judge noting that the agency claimed it had presented “‘unrebutted’ scientific expert testimony” to that effect. However, Alsup noted that the jury was entitled to weigh the credibility of the experts, particularly given their financial ties to the agency.

“In light of the large sums paid to the experts by BART, our jury was entitled to find that they were ‘bought and paid for,’ were merely parroting the ‘company line,’ and were not credible in light of their bias, common sense, and other evidence,” the judge wrote. “An expert witness is like any other witness, and it is up to the jury to decide how much weight their testimony deserves.”

Alsup also highlighted inconsistencies in BART’s evidence. For instance, he pointed to one BART supervisor’s admission under cross-examination that pre-vaccine precautions such as masking and social distancing had been effective, contradicting the testimony of BART’s own experts. Additionally, BART failed to present clear documentation of the evidence it relied upon when implementing its vaccine mandate.

Curiously, BART presented zero evidence of the information actually relied upon by the BART board in adopting its mandatory vaccine requirement,” the judge wrote. “We saw no decision memorandum presented to the board. We saw no resolution adopted by the board reciting any evidence. We heard no testimony from anyone who presented scientific evidence to the BART board or who made the decision.”

Despite rejecting BART’s motions to overturn the verdict and seek a new trial, the judge acknowledged minor flaws in the trial. One issue involved a gap in the jury instructions, which failed to explicitly rule out unpaid leave as a legally acceptable accommodation. However, the judge noted that BART had ample opportunity to address this issue during the trial but failed to do so.

Another issue noted by the judge was when the plaintiffs’ counsel violated a pretrial order by referencing other employees’ denied religious exemptions. Alsup described the violation as intentional but noted that it occurred during the second phase of the trial, after the jury had already ruled on BART’s undue hardship defense. The judge concluded that the misconduct did not prejudice the verdict.

The judge regrets these flaws but they, even in combination, did not result in a miscarriage of justice,” Alsup wrote. “The trial was still fair enough to stand.”

Alsup’s ruling upholds the jury trial’s finding that BART had failed to prove that it would have suffered undue hardship by granting the vaccine exemptions, and that the six former employees met the burden of showing that there was a conflict between their religious beliefs and the vaccine mandate. This means that the jury’s award of $7,825,859 in damages to the six former employees stands.

BART spokesman James Allison told The Epoch Times in an emailed statement that the agency had no comment on the verdict.

Tyler Durden
Thu, 01/02/2025 – 11:20

via ZeroHedge News https://ift.tt/yqOHF8a Tyler Durden

WTI Holds Near 3-Month Highs As Cushing ‘Tank Bottoms’ Loom

WTI Holds Near 3-Month Highs As Cushing ‘Tank Bottoms’ Loom

Oil prices kicked off 2025 with strong gains as WTI pushed above $73 – its highest since October – as it broke above a key technical level after API reported a small crude draw last night. The prices gains came despite a weak China PMIs (which potentially prompots more hope for further stimulus), but was helped by a modest rise in US PMIs.

“President Xi Jinping’s statements promising more proactive policies to stimulate growth have raised expectations of increased energy demand. While recent data indicates marginal growth in the country’s manufacturing activity, sectors such as services and construction have started showing signs of recovery, suggesting a gradual strengthening of China’s economy,” said Antonio Di Giacomo, senior market analyst at XS.com, in a note.

This morning we get the final look at supply and inventory data from the DOE:

“A draw is likely because producer and storage operators generally try to empty their tanks by year-end for tax reasons,” said Robert Yawger, director of the energy futures division at Mizuho Securities USA.

API

  • Crude -1.4mm

  • Cushing +300k

  • Gasoline +2.2mm

  • Distillates +5.7mm

 

DOE

  • Crude -1.18mm

  • Cushing -142k

  • Gasoline +7.72mm — biggest build since year-end 2024

  • Distillates +6.41mm — biggest build since year-end 2024

The official data confirmed API’s with the sixth straight weekly crude drawdown (and another draw at the Cushing hub) but product stocks soared higher (as year-end tax-related issues likely affected them)…

Source: Bloomberg

Including the addition of a further 260k barrels to SPR, total US crude inventories declined for the sixth straight week…

Source: Bloomberg

Stocks at the crucial Cushing hub slipped closer to ‘tank bottoms’ – lowest since Oct 2023…

Source: Bloomberg

US Crude production dipped very modestly off record highs…

Source: Bloomberg

WTI surged above its 100DMA to its highest since October ahead of the official inventory data

Source: Bloomberg

WTI posted the smallest annual price move in almost two decades last year, and investors are bracing for an oversupply this year, making it harder for OPEC+ to revive idled production. Still, the unpredictability of a second presidential term by Donald Trump is clouding the outlook.

Tyler Durden
Thu, 01/02/2025 – 11:10

via ZeroHedge News https://ift.tt/6hfzDPI Tyler Durden