Accusing Trump of Perpetrating “Big Lie” Is Opinion and Therefore Not Libelous, Court Holds

From Trump v. CNN, decided Friday (quite correctly, I think) by Judge Raag Singhal (S.D. Fla.):

Trump alleges that CNN defamed him by making statements comparing him to Hitler and the Nazi regime …:

[a.] On January 25, 2021, CNN published an article written by Ruth Ben-Ghiat, a “frequent contributor to CNN Opinion,” entitled “Trump’s big lie wouldn’t have worked without his thousands of little lies.” Ben-Ghiat wrote: “This is Trump’s ‘Big Lie,’ a brazen falsehood with momentous consequences.” Ben-Ghiat likened the Plaintiff to an authoritarian dictator, writing:

Trump, a leader of authoritarian intentions and tendencies, had disadvantages with respect to the foreign autocrats he so admires. He had no state media, like China’s Xi Jinping. He could not rule by decree, like Hungary’s Viktor Orbán. He had to govern and run for reelection in an open society with a relatively robust free press. Moreover, although he succeeded in making journalists into hate objects for many of his followers, he could not revoke or destroy the First Amendment.

So Trump took a different tack, unleashing a barrage of disinformation common in authoritarian states but without precedent in the history of the American presidency. He told more than 30,000 documented lies in public (30,573 was The Washington Post’s final tally), on Twitter, at rallies and in interviews. If taken as an average, it would come out to 21 lies per day over his four-year term.

[b.] On July 5, 2021, CNN published an article written by Chris Cillizza, CNN Editor-at-Large, entitled “Donald Trump just accidentally told the truth about his disinformation strategy.” In this article, CNN’s Editor-at-Large likens the Plaintiff to Nazi propagandist Joseph Goebbels: “One can only hope that Trump was unaware that his quote was a near-replication of this infamous line from Nazi Joseph Goebbels: ‘If you tell a lie big enough and keep repeating it, people will eventually come to believe it.'” {The Trump quote referenced by Cillizza was made on July 3, 2022, in Sarasota, Florida: “If you say it enough and keep saying it, they’ll start to believe you.”}

[c.] On September 15, 2021, CNN published an article written by Chris Cillizza, CNN Editor-at-Large, entitled, “Donald Trump’s Mental Health becomes an issue again.” In this article, CNN Editor-at-Large wrote that President Trump “continued to push the Big Lie that the election was somehow stolen despite there being zero actual evidence to back up that belief.”

[d.] On January 16, 2022, CNN aired a television show entitled “State of the Union” that included host Jake Tapper making the following comments:

TAPPER: Over the weekend, while Martin Luther King III was in Arizona rallying to expand voting rights, Donald Trump was, the same day, in the same state, doing the exact opposite, continuing to push his big lie.

(BEGIN VIDEO CLIP) TRUMP: Last year, we had a rigged election, and the proof is all over the place. They always talk about the big lie. They’re the big lie. (END VIDEO CLIP)

TAPPER: There is a reason Trump was in Arizona, to push the legislature to disenfranchise the state’s voters based on all of his deranged election lies.

[e.] On February 11, 2022, CNN published an article written by Chris Cillizza, CNN Editor-at-Large, entitled, “Here’s the terrible reality: Trump’s election lie is on the march” with a link entitled, “New poll suggests Trump 2020 election lie is working.” In the article, Cillizza claims:

This is the insidiousness of Trump’s big lie. It’s like an earworm—you may hate the song but you just keep finding yourself humming it in the shower. Trump has created a constant low-level buzz within the American electorate that something is wrong with the way we conduct elections. That he has no proof doesn’t seem to matter; by sheer repetition, his false claims are wheedling their way into the consciousness of the public.

Trump alleges that the use of the phrase “the Big Lie” constitutes defamation per se because it “create[s] a false and incendiary association between the Plaintiff and Hitler.” He argues that the use of the phrase “the Big Lie” is defamatory because it “has incited readers and viewers to hate, contempt, distrust, ridicule, and even fear the Plaintiff causing injury to the Plaintiff, the Plaintiff’s reputation, and the Plaintiff’s political career.” As a result, Trump claims that viewers and readers “understood that Plaintiff would be Hitler-like in any future political role.”

Trump further alleges that CNN failed to similarly challenge Democrat politicians who complained about election integrity. He argues that CNN’s disparate treatment of public figures is evidence of malice and “evidence that Defendant is not reporting the news, but rather propagating its political views.” …

The [key] question is whether the statements were false statements of fact. This is where Trump’s defamation claims fail.

The problem is essentially two-fold. First, the complained of statements are opinion, not factually false statements, and therefore are not actionable. Second, the reasonable viewer, unlike when Sullivan, Butts or Gertz were decided, no longer takes the time to research and verify reporting that often is not, in fact, news. As an example, only one month ago, the United States Supreme Court issued a well written 237-page joint opinion with vastly divergent views in two cases known widely as the Affirmative Action decisions. Within minutes of the release of the opinion, the free press had reported just what the opinion supposedly said and meant although it was clearly impossible that the reporter had read the opinion. And of course, those initial news articles were repeatedly shared, commented upon and disseminated over social media and still to this day the reasonable viewer very likely hasn’t read the opinion and never will. This is the news model of today. It is far different than that in Sullivan which altered law that existed for 175 years and has spawned a cottage industry over the last 60. But this too is not actionable.

Trump argues that CNN’s motivation for describing his election challenges as “the Big Lie” was to undermine Trump’s political standing. But political motivation does not establish falsity. The “intention to portray [a] public figure in [a] negative light, even when motivated by ill will or evil intent, is not sufficient to show actual malice unless the publisher intended to inflict harm through knowing or reckless falsehood.”

Acknowledging that CNN acted with political enmity does not save this case; the Complaint alleges no false statements of fact. Trump complains that CNN described his election challenges as “the Big Lie.” Trump argues that “the Big Lie” is a phrase attributed to Joseph Goebbels and that CNN’s use of the phrase wrongly links Trump with the Hitler regime in the public eye. This is a stacking of inferences that cannot support a finding of falsehood.

Church of Scientology v. Cazares (5th Cir. 1981) is similar to the present case. There, a city official made numerous public statements opposing the church’s presence in the city. In one he stated: “Scientologists are bringing to the city a helter-skelter world and philosophy.” The church sued, stating that “the term ‘helter-skelter’ had, by reason of a best-selling book and television movie of the same title come into public understanding as descriptive of the policy of [a] generation of racial strife and indiscriminate mass murder allegedly espoused by the infamous and widely publicized Charles Manson.” The church claimed that by using the term “helter-skelter,” the defendant intended “to convey to the public that [the church] was dedicated to promotion of [a] generation of racial strife and indiscriminate mass murder.” The former Fifth Circuit found no defamation, stating that it was “not prepared to build inference upon inference in order to find defamatory meaning in a statement.” Neither is this Court able to create an inference of defamatory meaning.

Trump alleges that “the Big Lie” refers to a Nazi “propaganda campaign to justify Jewish persecution and genocide.” Like Trump and CNN personalities Ashleigh Banfield and Paul Steinhauser (see , the Court finds Nazi references in the political discourse (made by whichever “side”) to be odious and repugnant. But bad rhetoric is not defamation when it does not include false statements of fact. CNN’s use of the phrase “the Big Lie” in connection with Trump’s election challenges does not give rise to a plausible inference that Trump advocates the persecution and genocide of Jews or any other group of people. No reasonable viewer could (or should) plausibly make that reference…. “The language of the publication declared upon should not be interpreted by the extremes but should be ‘construed as the common mind would ordinarily understand it.” … And even if the phrase “the Big Lie” could somehow plausibly compel a reasonable viewer to perceive Trump as “Hitler-like,” or “authoritarian,” such terms are not statements of fact subject to defamation laws “because of the tremendous imprecision of the meaning and usage of such terms in the realm of political debate ….” A connotation or implication is only actionable if it is “provably false.” Being “Hitler-like” is not a verifiable statement of fact that would support a defamation claim. {In Buckley, the court held that “political labels” such as “fascist,” “fellow traveler,” and “radical right” were too imprecise to be proven as statements of fact.}

{Trump cites three cases where references to Hitler were deemed defamatory. See State v. Guinn (Tenn. 1961); O’Donnell v. Philadelphia Rec. Co. (Pa. 1947); Goodrich v. Rep. Pub. Co. (Tex. Civ. App. 1946). But these cases were decided before New York Times Co. v. Sullivan and its progeny and, therefore, have little to no bearing on this case.}

Brian M. Underwood, Jr. and Eric P. Schroeder (Bryan Cave Leighton Paisner LLP) and Eric Corey Edison and George S. LeMieux (Gunster Yoakley & Stewart, P.A.) represent CNN.

The post Accusing Trump of Perpetrating "Big Lie" Is Opinion and Therefore Not Libelous, Court Holds appeared first on Reason.com.

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Academic Freedom Alliance Letter to Texas A&M

The Academic Freedom Alliance released a public letter to the Texas A&M University System regarding its suspension and investigation of Prof. Joy Alonzo for statements she made as a guest lecturer in a class about the policies of Texas Lt. Governor Dan Patrick. Patrick is well known for his attacks on higher education, recently pushing to ban tenure at state universities. Texas A&M was quick to try to mollify him when he got wind of a professor criticizing him.

The story was first broken by the Texas Tribune. Alonzo, a professor of pharmacy practice, was serving as a guest lecturer in a medical school class at the University of Texas discussing the opioid crisis. During the class, she apparently made some critical remarks regarding Patrick’s resistance to Alonzo’s favored policy responses. A student in the class complained to her mother, the Texas land commissioner, who in turn informed Patrick’s office. Patrick’s office pointed Texas A&M University System Chancellor John Sharp at Alonzo. Sharp immediately had her suspended and launched an investigation into potentially firing her. Meanwhile, both the University of Texas and Texas A&M sent internal emails cautioning professors against saying critical things about Texas politicians.

From the letter:

The American Association of University Professors has long emphasized that the freedom of classroom teaching includes the right of professors to introduce into the classroom controversial but relevant materials. The AAUP’s 2007 report on freedom in the classroom emphasized that “ideas that are germane to a subject under discussion in a classroom cannot be censored because a student with particular religious or political beliefs might be offended.” It would be “inimical to the free and vigorous exchange of ideas necessary for teaching and learning in higher education” if professors could be sanctioned because of the reaction of one or more students to the words and ideas being discussed. State university professors should be free to express criticism of state government officials and public policy when such matters are relevant to topics under discussion in a class.

Alonzo has since been reinstated, but the Faculty Senate at Texas A&M is demanding answers on what procedures were followed in this instance. This is the second black eye for Texas A&M arising out of political interventions in academic affairs.

The behavior of both Texas A&M and the University of Texas in this incident shows the fear being created in some state universities as a result of political threats directed against those universities. The climate for open inquiry in such states is deteriorating.

Again from the letter:

The Academic Freedom Alliance stands firmly behind Professor Alonzo in this matter. The university needs to take explicit steps to reaffirm its commitment to academic freedom and to reassure the faculty that they will not be threatened with termination if they say critical things about state policy when the discussion of such policies is entirely germane to the courses being taught.

Read the whole thing here.

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Dallas Law Against ‘Manifesting’ Prostitution Declared Unconstitutional


Painted street sign of woman's silhouette leaning against lampost

Manifesting prostitution law rejected. The Dallas County Criminal Court of Appeals has struck down a law against “manifesting the purpose of engaging in prostitution.” The law “is seeking a shortcut that trespasses on the constitutional rights of Dallas citizens,” wrote Judge Kristin Wade in her decision. The statute was “overbroad,” she argued, because “it punishes constitutionally protected conduct as well as illegal activity.”

The Dallas law is separate from Texas’ main prohibition of prostitution. The latter prohibits engaging in, offering to engage, or agreeing to engage in sex acts for a fee. The former prohibits looking like you might be about to do so.

Under the Dallas law, it was a misdemeanor punishable by a fine of up to $500 to loiter “in a public place in a manner and under circumstances manifesting the purpose of inducing, enticing, soliciting, or procuring another to commit an act of prostitution.”

Laws like these—sometimes called “manifesting” for the purpose of prostitution, sometimes “loitering” for prostitution purposes—are common in cities and states around the country. But there’s been a growing movement against these laws, which make it easy for police to hassle and arrest people without cause.

In 2021, New York state repealed its loitering for prostitution statute. California did the same in 2022.

Such laws basically let police arrest people that look to cops like they’re sex workers—a situation that has led some opponents to label them “walking while trans” laws, given how likely they are to be used against transgender people. Police may also use them to arrest people who have previous prostitution convictions, or anyone whom they think is dressed too provocatively or lingering on the street too long. The criteria for arrest depends much more on what cops think is going on than what’s actually going on.

This can lead to their use against people who aren’t engaged in prostitution at all. Or it may lead to police arresting sex workers who, yes, sometimes engage in prostitution, but without having to actually prove that they’re doing so at the time of arrest.

In other words, it lets police circumvent due process.

The Dallas statute specifically stated that “among the circumstances which may be considered” a violation is “that such person is a known prostitute or panderer.”

Other circumstances include “repeatedly beckon[ing] to, stop[ping] or attempt[ing] to stop, or engag[ing] passers-by in conversation, or…to stop motor vehicle operators by hailing, waving of arms, or any other bodily gesture.”

The case that led to the law being struck down involved the arrest of Iqbal Jivani, who “was in a known prostitution area and stopped to engage passers-by in conversation,” per a police complaint. Jivani’s lawyer argued that the arrest violated Jivani’s Fourth Amendment rights.

“Municipal Court Judge Jay Robinson found that the charge did not violate the Fourth Amendment, but said the ordinance was unconstitutionally vague and overbroad,” reports The Dallas Morning News. “The Dallas city attorney’s office appealed, and Wade affirmed Robinson’s ruling.”

“Everything about this ordinance is highly dependent on the mindset of an arresting officer,” wrote Judge Wade. Under the right circumstances, she noted, a woman in a high-crime area could be arrested for trying “to summon a cab if a police officer is watching.”


FREE MINDS

Court upholds right to call neighbor a “red-headed bitch.” A new decision from an Ohio appellate court is “good news for the First Amendment, and apparently bad news for redheads,” writes Jack Greiner of The Cincinnati Enquirer:

The court overturned a disorderly conduct conviction stemming from a Marysville man calling his neighbor a “red-headed bitch” in a dispute over access to a driveway. In the court’s view, the circumstances did not amount to fighting words….

[Dan Foley] stated he was on his property and [Cody] Gibson was on his own property when Gibson called him a “redheaded bitch.” Foley testified that Gibson did not approach him, and he estimated that Gibson was 40–50 yards away at the time of the incident. Finally, Foley confirmed he did not say anything to Gibson in reply, and he stated he did not try to fight Gibson or “cuss him out.”

Gibson essentially admitted to the facts elicited in Foley’s testimony. At the conclusion of the evidence, the trial court found the state had “proven beyond a reasonable doubt that there was a likelihood that using that language between neighbors would result in a violent response.” Accordingly, the trial court found Gibson guilty of disorderly conduct as charged in the complaint, fined him $58, and ordered him to pay court costs.

Gibson appealed and found a friendlier audience in the higher court. The question for the appellate court was whether the use of profanity without more constituted “fighting words” that would survive a First Amendment challenge.


FREE MARKETS

Another example of “bipartisanship is just another word for terrible ideas.” Last week, Sens. Lindsey Graham (R–S.C.) and Elizabeth Warren (D–Mass.) announced a bipartisan attempt to launch a Digital Consumer Protection Commission (DCPC), which would have “the power to sue, write rules and even shut down internet platforms,” as Joe Lonsdale, managing partner at 8VC, writes in The Wall Street Journal.

“I’ve spent my life building technology companies—not in Big Tech, but taking on Big Tech through entrepreneurship and innovation,” Lonsdale writes. “I invest in and engage in partnerships with hundreds of other entrepreneurs to build technology for America. The DCPC is a terrible idea.” He adds that the agency “would be a disaster for tens of thousands of small and medium-size technology businesses—the beating heart of our innovation ecosystem.”

Reason‘s Liz Wolfe wrote about the Warren-Graham plan last week, noting that the senators complain a lot about tech companies but fail to make much of a point:

“Google uses its search engine to give preference to its own products, like Google Hotels and Google Flights, giving it an unfair leg up on competitors,” they continue. “Amazon sucks up information from small businesses that offer products for sale on its platform, then uses that information to run its own competing businesses.”

“Apple forces entrepreneurs (and thereby consumers) to pay crushing commissions to use its App Store,” even.

But they fail to argue for how consumers are made worse off by these purportedly destructive tactics. Google Flights makes travel planning far easier than the days before search. No person is prevented from going directly to an individual airline’s website to book their flight if they prefer. Amazon has increasingly started developing Basics, its generic brand of commonly purchased household goods (just as Target has Target Brand products on offer); if someone needs a phone charger, they can get it more cheaply and quickly than ever before. As for Apple, of course other app developers must pay to place their products in the company’s digital storefront; how nice that customers have access to products made by developers other than those at Apple!


QUICK HITS

Say goodbye to permissionless travel.

• Yesterday a vehicle crashed into a group of six migrants outside a North Carolina Walmart. Police are calling it an “intentional assault.”

• “Evangelical military vets are using ‘counterterror’ internet surveillance techniques to help police get search warrants against sex workers,” reports The Intercept.

• Studies keep finding that social media algorithms don’t increase polarization. Why is the press so skeptical?

• “Trump’s PAC, Save America, has reportedly paid over $40 million in legal fees so far in 2023; more than the campaign raised during the second quarter of the year,” reports Axios.

• The New York Times profiles Techdirt founder Mike Masnick.

Reason‘s Nick Gillespie talked with author Jean Twenge and me about generational differences.

• Protectionist laws will not save local news, writes the Reason Foundation’s Max Gulker.

The post Dallas Law Against 'Manifesting' Prostitution Declared Unconstitutional appeared first on Reason.com.

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JP Morgan Projects Record Gold Prices In 2024

JP Morgan Projects Record Gold Prices In 2024

Via SchiffGold.com,

JP Morgan forecasts $2,000 gold by the end of the year with the price continuing to rise to record highs in 2024.

In his latest note, JP Morgan executive director of global commodities research Greg Shearer projects the price of gold will average around $2,175 an ounce by the fourth quarter of 2024. That would represent an 11% increase from the current price.

Shearer anticipates the end of the Federal Reserve hiking cycle after the July meeting with a cut likely by mid-2024. He said there is even further upside potential for the yellow metal if the US economy falls into a recession. The deeper the recession, the more the Fed will have to cut interest rates, which is more supportive of gold.

We’re in a very prime place where we think gold ownership and long allocation to gold and silver is something that acts as both a late cycle diversifier and something that will perform as we look to the next sort of 12, 18 months.”

With much stronger-than-expected second-quarter GDP growth and continued labor market strength, a growing number of people in the mainstream now think the US has escaped the clutches of a recession despite the Fed driving interest rates to the highest level in 16 years. Federal Reserve Chairman Jerome Powell said staff economists at the central bank now project a noticeable slowdown in growth starting later this year, “But given the resilience of the economy recently, they are no longer forecasting a recession.”

But there are plenty of signs that a recession is looming, including 15 consecutive drops in the Index of Leading Economic Indicators (the most consecutive negative prints since 2007-2008), an inverted yield curve, and a rising number of corporate defaults.

Given the fact that the Fed has taken away the economy’s lifeblood – easy money – a deep recession seems more likely than not. The economy was built on artificially low-interest rates and quantitative easing. We saw what happens to an over-leveraged economy when the Fed takes away the easy money back in 2008. The situation is much worse today than it was then, with more debt and more malinvestments.

According to JP Morgan’s mid-year forecast, analysts anticipate gold prices to average around $2,012 an ounce in the second half of this year.

This would continue the trend we saw through the first half of 2023. Despite a lackluster June, the price of gold rose 5.4% through the first six months of the year and ranked as the second-best performing asset class behind only developed market stocks.

Shearer said money managers have increased net-long positions in gold futures this year, but the trade still is not too crowded.

He also said institutional buying will boost strong retail demand as central banks continue to diversify away from the dollar and hedge against geopolitical risk.

There’s an eagerness here to really buy in and diversify allocation away from currencies.”

Overall, global central bank gold reserves increased by 228 tons in the first quarter of 2023. This was 38% higher than the previous first-quarter record set in 2013.

According to the 2023 Central Bank Gold Reserve Survey released by the World Gold Council, 24% of central banks plan to add more gold to their reserves in the next 12 months. Seventy-one percent of central banks surveyed believe the overall level of global reserves will increase in the next 12 months. That was a 10-point increase over last year.

Tyler Durden
Mon, 07/31/2023 – 10:20

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Biden Gaslights Americans With Fake “Manufacturing Boom” As US Production Plunges

Biden Gaslights Americans With Fake “Manufacturing Boom” As US Production Plunges

Joe Biden and the Democrats have been engaged in a coordinated propaganda campaign for the past few months, claiming that Biden has pulled off a miracle by boosting the US economy and defeating inflation.  Yet, around 60% of Americans in polls continue to say that Biden is doing a terrible job when it come to the economic situation, and over 70% of Americans say they are now financially stressed, due in large part to inflation in the cost of living.  Around 72% of Americans continue to believe that the country is on the wrong track.

If the financial structure is on the way to a “soft landing” and a historic recovery as the political left says, then why are the majority of Americans in dire straits?  The logical answer is that the Democrats are lying about the true condition of the economy.

The latest example is Biden’s announcement on social media that America is witnessing a “manufacturing boom” thanks to his policies.  It’s unlikely that Joe Biden is personally engaging in his own social media accounts; he has a team of paid lackeys to run those accounts for him.  However, the point remains that “Bidenomics” is the chosen rally cry for leftists.  Why?  Because the majority of fiscal threats have taken place on Biden’s watch and, in part, because of Biden’s policies.     

But instead of offering any legitimate solutions to the country’s economic crisis, Democrats have chosen instead to gaslight the public by cherry picking statistics out of context.  There is no “manufacturing boom.” 

Biden appears to be basing his assertions on one stat in particular, factory construction.  And yes, if you look at that stat alone then it might seem like domestic manufacturing is experiencing new life.  But, where are these new factories coming from?  

The majority are government subsidized green tech factories as part of Biden’s “Inflation Reduction Act.”  Meaning, they are jobs created using your tax dollars through socialist programs, not free market demand.  Not only that, but a number of these factories are being built by foreign companies, not American companies.  For example, JA Solar, a Chinese company, plans to build factories in Arizona while benefiting from Biden’s subsidies.  Meyer Burger Technology, a company out of Switzerland, is also building solar factories in Arizona. 

And what happens when the government props up an industry without equal market demand?  What happens when a manufacturing “boom” siphons American cash to foreign interests?  It ends up destroying wealth, not creating wealth.  In other words, Biden is using billions in taxes to falsify economic numbers in the short term as a means to get re-elected.   

The truth is, US manufacturing has been in dramatic decline since Biden took office.  The PMI index (ISM Purchasing Managers Index) has been in free fall since March of 2021, dropping to levels not seen since the covid lockdowns of 2020.  As a point of reference, a PMI above 50 indicates growth in manufacturing.  A PMI below 50 indicates contraction.  Under Biden, the PMI has dropped from a high of 64 down to a current low of 46.  If we set aside the covid lockdowns, that’s the lowest level for the PMI since the 2008 credit crash. 

 

US factory output has also dropped four months in a row, indicating that the huge boost from $8 trillion+ in covid stimulus has now fizzled.  Biden can use tax dollars to create as many green tech factories and false jobs as he wants, but the bottom line is that US manufacturing is crashing because global demand is under pressure.  High inflation and high prices coupled with rising interest rates tend to do that.

Biden’s strategy is reminiscent of the Chinese government’s efforts to falsify economic growth – The CCP often uses unnecessary public works and infrastructure projects as a means to create jobs out of thin air.  Not because they care about the well-being of the population, but because they care about how China is perceived by the rest of the world.  There are thousands of empty buildings dotting the landscapes of ghost cities in China, paid for with public funds as a means to make the CCP look like they are creating a successful communist paradise.

Sometimes, the CCP dumps millions of dollars into these buildings and then simply blows them up.  

Such projects artificially boost GDP, create millions of jobs on the taxpayer’s dime (for a short time) and portray an image of a country on the path to 1st world success.  But, it’s all a facade.  This is exactly what Biden is trying to do with the American economy – A false front using manipulated stats, not just to con the world, but to con the American people.         

Tyler Durden
Mon, 07/31/2023 – 10:00

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In Blow To Alvin Bragg’s Office, Judge Quashes Subpoena Seeking Melania Trump Emails

In Blow To Alvin Bragg’s Office, Judge Quashes Subpoena Seeking Melania Trump Emails

Authored by Tom Ozimek via The Epoch Times,

A New York Supreme Court judge has quashed a pair of subpoenas brought by Manhattan district attorneys seeking emails sent by former first lady Melania Trump in a case against former President Donald Trump.

Prosecutors for Manhattan District Attorney Alvin Bragg’s office had issued the subpoenas seeking emails from Melania Trump and other documents as part of Mr. Bragg’s case against the former president over alleged falsification of business records.

But those subpoenas were quashed by New York Supreme Court Judge Juan Merchan, who said in a ruling (pdf) attached to a July 27 court filing that the subpoenas were far too broad in scope.

The requests for Melania Trump’s emails, and other documents “would yield significantly more responsive records than necessary,” the judge wrote in his ruling, which was issued on July 7 but made public when attached to a July 27 filing that included a letter from prosecutors to Judge Merchan, seeking clarification on an unrelated matter.

Manhattan District Attorney Alvin Bragg listens at a news conference in New York, on Feb. 7, 2023. (Seth Wenig/AP Photo)

More Details

In that letter, the prosecutors were seeking Judge Merchan’s input on their request for the entire videotaped deposition Mr. Trump gave to attorneys in relation to a separate civil lawsuit brought against the former president by writer E. Jean Carroll, per the letter.

Portions of the videotaped deposition were played at the Carroll trial, but Judge Merchan did not order the entire tape to be handed over to prosecutors. Instead, the judge asked prosecutors to seek clarification from Judge Lewis A. Kaplan whether their subpoena for the entire tape violated a protective order Judge Kaplan had issued in the Carroll v. Trump case.

In relation to the videotape subpoena, Judge Merchan ruled that it’s “not overbroad or otherwise inappropriate,” although he added that he was not able to determine if any portions of the tape violated Judge Kaplan’s protective order.

But that was not the case with a pair of subpoenas that sought all emails between former Trump executive assistant Rhona Graff and Melania Trump, all emails between Ms. Graff and former director of Oval Office operations Keith Schiller, and all travel itineraries prepared for the former president for a period covering 25 months.

Even though prosecutors contended in their subpoenas that their request was “specifically tailored” to capture communications relating to Mr. Trump’s travel and meetings, Judge Merchan disagreed.

“This Court finds that the third request as currently drafted is not narrowly tailored and does not adequately achieve its stated objective of capturing certain communications regarding travel and meetings in order to identify ‘whom the defendant met and where those meetings took place,'” the judge wrote.

“As framed, this request would yield significantly more responsive records than necessary to achieve the stated goal,” he continued.

“Therefore, the motion to quash the third request as currently drafted is granted.”

Former President and Republican presidential candidate Donald Trump prepares to deliver remarks in Las Vegas, on July 8, 2023. (Mario Tama/Getty Images)

Judge Merchan also partially blocked a subpoena from Mr. Bragg seeking documentation relating to 17 current and former Trump Organization employees, with the judge saying prosecutors failed to adequately explain why seven of the people were relevant to the case.

Neither Mr. Bragg’s office nor the Trump Organization returned requests for comment on the quashing of the subpoenas seeking Melania Trump’s emails.

Former President Donald Trump and former First Lady Melania Trump arrive for an event at his Mar-a-Lago home in Palm Beach, Fla., on Nov. 15, 2022. (Joe Raedle/Getty Images)

Falsifying Business Records Case

The Melania Trump emails that prosecutors sought were in relation to a case Mr. Bragg’s office is prosecuting against the former president concerning payments allegedly made to adult film actress Stormy Daniels during the 2016 campaign.

Mr. Trump was arraigned in that case and pleaded not guilty to 34 counts of falsifying business records, while denying any wrongdoing in public statements and on his social media platform.

Prosecutors have alleged that Mr. Trump conspired to undermine the 2016 presidential election by trying to suppress information that could harm his candidacy, and then concealing the true nature of the payments.

The payments were allegedly made to Daniels, former model Karen McDougal, and a doorman, according to Mr. Bragg’s office.

Mr. Trump has repeatedly characterized Mr. Bragg’s investigation as a politically motivated ruse to undermine his 2024 White House run.

Polls show that Mr. Trump is the frontrunner for the Republican presidential nomination.

Melania Trump in May said that she supports her husband’s 2024 reelection bid, saying it would be a “privilege” to serve as first lady again.

“My husband achieved tremendous success in his first administration, and he can lead us toward greatness and prosperity once again,” Mrs. Trump said in an interview on Fox News Digital.

“He has my support, and we look forward to restoring hope for the future and leading America with love and strength,” the former first lady added.

Then first lady Melania Trump arrives for an event to celebrate the one-year anniversary of the “Be Best” initiative in the Rose Garden of the White House in Washington, on May 7, 2019. (Brendan Smialowski/AFP via Getty Images)

She said that if her husband wins in 2024 and she has the opportunity to serve as first lady for a second term, she would continue her “Be Best” campaign and “prioritize the well-being and development of children as I have always done.”

The “Be Best” campaign was her first major initiative as first lady, with the campaign focusing on child welfare and warning against the pitfalls of social media and opioids.

Tyler Durden
Mon, 07/31/2023 – 09:40

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Heineken Shares Drop Most Since Pandemic As ‘Beerflation’ Curbs Demand

Heineken Shares Drop Most Since Pandemic As ‘Beerflation’ Curbs Demand

The world’s second-largest brewer slashed its 2023 profit growth forecast following a slowdown in Asia, the US, and Europe as consumers balk at ‘beerflation’. 

Heineken said operating profit plunged 22% on an adjusted basis in the first half of the year. Overall volumes slid 5.6%, exceeding analysts’ average forecast of 3.4%.

The Amsterdam-based brewer blamed the “cumulative effect” of price hikes and a “challenging economic backdrop” that was responsible for a slowdown in beer demand. 

Here’s a snapshot of 1H23 results:

  • Revenue growth 6.3%

  • Net revenue (beia) 6.6% organic growth; per hectolitre 12.7%

  • Beer volume organic growth -5.6%; Heineken® volume 1.7% growth (excluding Russia 3.7%)

  • Operating profit growth -22.2%; operating profit (beia) organic growth -8.8%

  • Net profit growth -8.6%; net profit (beia) organic growth -11.6%

  • Diluted EPS €2.04; diluted EPS (beia) €2.03

  • FY 2023 outlook updated. Operating profit (beia) stable to mid-single-digit organic growth.

“The start of the year was all about passing on the inflation on our input costs,” Chief Executive Officer Dolf van den Brink told Bloomberg in an interview. 

Van den Brink said, “We front-loaded our pricing. We ran into a pretty strong economic slowdown in the key market of Vietnam, which is disproportionately important to us.”

Heineken shares were down nearly 7% in European trading, their steepest drop since March 2020. 

Citi analyst Simon Hales called the earnings results “extremely disappointing.”

Heineken expects cost pressures to ease next year, which will reduce beerflation. Previously the guidance was for mid- to high-single-digit earnings growth. 

“The credibility of Heineken’s guidance is now in question,” Hales said. 

RBC analysts James Edwardes Jones and Emma Letheren said, “This is the worst set of results we’ve had so far.” They were referring to other consumer companies their desk covers. 

Here’s what other Wall Street analysts are saying about the results (list courtesy of Bloomberg):

AlphaValue (add, PT €121) 

  • Points to a miss on every metric, with a strong decline in volume

  • All regions under pressure

  • “With consumption strongly affected, this does not send out a positive signal for the ABI and Carlsberg publications due in the next few days” analyst Davide Amorim writes

KBC (accumulate, PT €110)

  • Notes key weakness in Vietnam and Nigeria

  • “We continue to believe beer is a resilient category, with further underlying growth potential, whilst Heineken is demonstrating solid pricing discipline,” according to analyst Wim Hoste

  •  Commodity and energy cost inflation will partially reverse next year

  •  Future performance to be be supported by profit improvement initiatives

RBC (sector perform, PT €93)

  • “This is the worst set of results we’ve had so far,” analysts James Edwardes Jones and Emma Letheren write 

  • Heineken missed expectations for organic sales growth in most regions, they note

  • Limited read-across on the sector as the brewer gave priority to price increases

Citi (buy, PT €130)

  • 1H results are extremely disappointing, and the credibility of Heineken’s guidance is now in question,” according to analysts led by Simon Hales

  • The brewer missed expectations everywhere except Europe

  • Describe downgrade of Ebit guidance as “concerning”

  • Expect earnings-per-share consensus to fall and the stock to de-rate

Jefferies (buy, PT €115)

  • Analysts Edward Mundy and Andrei Andon-Ionita expect consensus for 2024 Ebit to drop toward Jefferies’ estimate of €4.98b, from the current €5.33b

  •  Say shares look inexpensive on Jefferies’ lower-than- consensus numbers

  • Expect transitory factors such as commodities to ease

There are increasing signs that consumer strength worldwide might be waning as global central banks aggressively tighten monetary policy to curb the worst inflation in a generation. 

Tyler Durden
Mon, 07/31/2023 – 09:20

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Resteepening Real Yield-Curve Will Be A Warning For Stocks

Resteepening Real Yield-Curve Will Be A Warning For Stocks

Authored by Simon White, Bloomberg macro strategist,

Yield curves around the world over the last month have shown early signs of steepening. But it’s a re-steepening in real yield-curves that investors should be alert for, as this would be a negative signal for liquidity and thus risk assets.

Never underestimate the BOJ’s propensity to surprise. After giving the impression policy would be unaltered, at its meeting last week the BOJ shifted their ceiling for 10y rates from 0.5% to 1%, and introduced greater flexibility in its yield-curve control policy. 10y yields broke through 50 bps, and currently trade at just over 60 bps (with the BOJ buying bonds this morning), while USDJPY whipsawed around and closed higher on the day by 1.2%.

The policy adjustment coincided with yield-curve steepenings in the US, UK and Europe. This would be consistent with Japanese investors’ unwind of some of their US and European sovereign debt, along with the funding legs, to take advantage of the extra yield offered on JGBs.

It’s not clear, though, whether the yield differentials will be enough – 10y UST and JGB yields have both risen by about the same amount over the last week – to sustain flows back to Japan from the US. And flows in the other direction will continue to be limited as USTs remain very unattractive to Japanese investors after hedging costs.

Regardless, even before the BOJ, global yield curves had already begun to show signs of a re-steepening trend over the last month.

But when it comes to gauging the likely outlook for risk assets, it’s real yield-curves that have more utility in an elevated-inflation environment. The real yield-curves of the major countries continue to flatten aggressively as inflation falls, driving short-term real yields higher.

For the US, the flattening real yield-curve should keep pressure on the dollar (with last week’s BOJ actions adding to USDJPY downside).

This will continue to support excess liquidity, as the dollar value of foreign currencies rises.

The single biggest endogenous risk facing risk assets is a re-acceleration in inflation. While that is expected at some point, for the time being real yield-curves should keep flattening, and risk assets should stay supported.

Tyler Durden
Mon, 07/31/2023 – 09:00

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Euro-Zone Bounces Back From Economic Stagnation But Core Inflation Remains ‘Sticky’

Euro-Zone Bounces Back From Economic Stagnation But Core Inflation Remains ‘Sticky’

As expected, euro-zone economic growth returned to growth in Q2 with GDP rising 0.3% QoQ (better than the 0.2% rise expected) after shrinking and stagnating in the prior two periods.

While the euro zone’s GDP number looks encouraging, it was buoyed by a bumper three months from Ireland, which expanded by 3.3%. Additionally, Q2 GDP growth was weaker than consensus expectations in Germany and Italy, in line with expectations in Spain and above expectations in France.

Although stronger than expected, Goldman notes that with today’s print stronger than expected, the Euro area is on track to avoid a technical recession but the GDP prints in Austria, Germany and Italy point to extended weakness in the manufacturing sector.

However, more problematically for The ECB, while headline consumer price inflation slowed to just 5.3% from a year ago in July, as expected; in a sign of lingering dangers, the closely watched Core CPI (that excludes volatile costs like food and energy) overshot estimates by a touch to stay at 5.5%, surpassing the headline gauge for the first time since 2021.

The breakdown by main expenditure categories showed services inflation rose 0.2pp to 5.6%yoy, and non-energy industrial goods inflation fell 0.5pp to 5.0%yoy.

Of the non-core components, energy inflation fell five-tenths of a percentage point to -6.1%yoy, while food, alcohol and tobacco inflation fell eight-tenths of a percentage point to 10.8%yoy.

Furthermore, Goldman raised its forecast for EU inflation, now expecting core and headline inflation to be 4.0%yoy (vs 3.8%yoy previously) and 3.5%yoy (vs 3.4%yoy previously) respectively in December 2023.

Looking ahead, the region’s outlook is far gloomier, the ECB warned last week after lifting rates for a ninth time since July 2022.

Confidence indicators are flashing red, with AXA’s Gilles Moec among analysts warning of a “hard-ish landing.”

President Christine Lagarde reiterated her message over the weekend that in the current uncertain environment another hike or “perhaps a pause” are the options for the next policy decision, in September. 

As Bloomberg concludes, the latest inflation and GDP figures for the euro zone leave both options on the table  – the economy is not yet tanking, while core inflation remains sticky.

Tyler Durden
Mon, 07/31/2023 – 08:49

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Secret Service Denies FOIA Request To Provide List Potentially Linked To Cocaine Incident

Secret Service Denies FOIA Request To Provide List Potentially Linked To Cocaine Incident

Authored by Naveen Anthrapully via The Epoch Times,

The U.S. Secret Service has refused to provide The Heritage Foundation with a list of individuals who may have been involved in the White House cocaine incident, claiming such records are outside its authority.

After the Secret Service closed the investigation into the cocaine issue in mid-July, the Heritage Foundation filed a Freedom of Information Act (FOIA) request seeking the list of hundreds of individuals who may have accessed the area where the substance was found. In a July 25 letter (pdf) from the Department of Homeland Security (DHS), the agency denied the request.

“As your request seeks records reflecting visitors or related information concerning the Office of the President, please be advised that these records are not Secret Service agency records subject to the FOIA.”

“Rather, these records are governed by the Presidential Records Act … and remain under the exclusive legal custody and control of the White House,” the letter argued.

The DHS’ response to the FOIA request made The Daily Signal, a news outlet of the Heritage Foundation, suggest that the Secret Service may have “never created such a list in the first place.”

Steve Bradbury, a distinguished fellow at the thinktank, dismissed the DHS arguments for not turning over the visitor list, pointing to the legal difference between an agency record and presidential record.

The distinction is usually based on “who generates the record and whose business the record reflects,” he told the outlet. “If it’s an agency record, it’s subject to FOIA. If it’s a White House record, it’s covered by the Presidential Records Act.”

Mr. Bradbury said that the key question is whether the Secret Service used the White House logs to create its own new record.

If the Secret Service did use the White House records to create a “new document on its systems, which was its own list of suspects that it generated, that new document should” come under FOIA, he said.

However if the Secret Service did not create a new document, it would suggest that the agency did not take the investigation seriously, Mr. Bradbury suggested. The Heritage Foundation intends to appeal the rejection.

This isn’t the first time that the Secret Service has turned down a FOIA request on the White House cocaine issue.

Jason Leopold, an investigative reporter at Bloomberg, had earlier asked for information like emails, text messages, suspicious activity reporting, intelligence bulletins, letters, directives, and other such material referencing the cocaine found at the White House.

On July 11, the DHS notified Mr. Leopold that his request was denied, saying there were “no records or documents available to you at this time.”

Ending the Investigation

The cocaine was found in the White House on Sunday evening, July 3, with the Secret Service confirming the discovery and proposing that it was brought in by someone who works there or had the authorization to enter the place.

The news triggered speculation of Hunter Biden’s involvement since the president’s son is known to have used drugs. In his memoir “Beautiful Things,” Hunter admits that he was addicted to crack cocaine for several years.

In a July 13 press release, the Secret Service said that it was ending the investigation into the cocaine matter “due to a lack of physical evidence.”

An FBI analysis of the cocaine packaging “did not develop latent fingerprints.” The DNA evidence was also “insufficient” for investigative comparisons.

“Therefore, the Secret Service is not able to compare evidence against the known pool of individuals.”

“There was no surveillance video footage found that provided investigative leads or any other means for investigators to identify who may have deposited the found substance in this area.”

“Without physical evidence, the investigation will not be able to single out a person of interest from the hundreds of individuals who passed through the vestibule where the cocaine was discovered,” the Secret Service said.

Criticism of Case Closure, Marijuana in White House

The Secret Service’s closure of the case without a resolution had triggered criticism. In an interview with Fox, former president Donald Trump said that it was “very disappointing” that the cocaine investigation ended in just a few days.

“That’s a big deal. Cocaine. Now, the cocaine, as they say, could have been worse,” Mr. Trump said.

“They could have had bioweapons … If somebody is taking cocaine and making decisions—what if there is fentanyl? What if it was anthrax?”

Rep. Marjorie Taylor Greene (R-Ga.) called out the duplicity of closing the cocaine case while Jan. 6, 2021, protestors were still being pursued by authorities.

“With all the drug testing tools available, a list of approx 500 people, surveillance cameras, fingerprints, and more, the Secret Service is ending their investigation on who brought cocaine into the White House with ZERO suspects! But the DOJ is still arresting and prosecuting more people for J6,” she said in a July 13 post on Twitter.

In addition to cocaine, the Secret Service has also found marijuana at the White House under the Biden administration.

Last year, “small amounts of marijuana” were discovered at the White House on two separate occasions in July and September, a Secret Service spokesperson said to Fox in mid-July. The quantity of marijuana came to “less than 0.2 ounces of marijuana in both instances.”

“No one was arrested in these incidents because the weight of the marijuana confiscated did not meet the legal threshold for federal charges or D.C. misdemeanor criminal charges, as the District of Columbia had decriminalized possession … The marijuana was collected by officers and destroyed,” the spokesperson said.

Tyler Durden
Mon, 07/31/2023 – 08:25

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