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Wall Street Layoffs Thousand’s as Biden’s Economy Tanks



Wall Street Layoffs Thousand's as Biden's Economy Tanks

President Joe Biden is facing criticism for his leadership as the economy deteriorates and Wall Street’s Goldman Sachs Group announces layoffs of thousands of employees to navigate a difficult economic environment.

The layoffs are the latest indication that layoffs are spreading across Wall Street as dealmaking slows. Investment banking revenues had fallen this year due to a slowdown in mergers and stock offerings, a sharp contrast to the blockbuster 2021 when bankers received large pay raises.

Goldman Sachs had 49,100 employees at the end of the third quarter after hiring heavily during the pandemic. According to the source, its headcount will remain above pre-pandemic levels. According to a filing, the workforce stood at 38,300 at the end of 2019.

The number of employees affected by the layoffs is still being discussed, and the details are expected to be finalized early next year, according to the source.

According to a separate source familiar with the situation, the bank is considering a significant reduction in the annual bonus pool this year. According to Reuters, this compares to increases of 40% to 50% for top-performing investment bankers in 2021, citing people with direct knowledge of the situation.

“GS needs to demonstrate that its costs are as volatile as its revenues, especially after a year in which it provided special rewards to top managers during the boom times,” wrote Mike Mayo, a Wells Fargo banking analyst.

“Goldman Sachs must now demonstrate that it can do the same when business is not as good and that they live up to the old Wall Street adage that they ‘eat what they kill,'” he wrote in a note.

In afternoon trading, JPMorgan & Chase Co (JPM.N) fell 1.3%, while shares of Morgan Stanley (MS.N) fell 0.6% and 1.3%, respectively.

This year, Goldman’s stock has dropped nearly 10%. They have, however, outperformed the S&P 500 bank index (.SPXBK), which is down 24% year to date.

According to a source, the latest plan would result in the layoff of hundreds of employees from Goldman’s consumer business.

In October, the bank signaled that it was scaling back its plans for Marcus, its loss-making consumer unit. Goldman also intends to discontinue the origination of unsecured consumer loans, a source familiar with the matter told Reuters earlier this week, indicating yet another exit from the industry.

With Marcus, Chief Executive Officer David Solomon took over in 2018 and attempted to diversify the company’s operations. In October, it was merged with the wealth business as part of a management reshuffle that included trading and investment banking units.

Trading and investment banking accounted for nearly 65% of Goldman’s revenue at the end of the third quarter, compared to 59% in the third quarter of 2018, when Solomon took over as CEO.

According to people familiar with the situation, Semafor reported on Friday that Goldman would lay off up to 4,000 employees as the bank struggles to meet profit targets.

Goldman cut about 500 employees in September after pausing the annual practice for two years due to the pandemic, according to a source familiar with the matter at the time.

In July, the investment bank warned it might slow hiring and cut costs.

Global banks, including Morgan Stanley (MS.N) and Citigroup Inc (C.N), have reduced their workforces in recent months as a dealmaking boom on Wall Street has cooled due to high-interest rates, tensions between the US and China, the Russia-Ukraine war, and soaring inflation.

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Wall Street Loses Ground as Fed Raises Rates to Fight Biden Inflation

Wall Street lost more ground on Friday as concerns mounted that the Federal Reserve and other central banks are willing to instigate a recession to combat Biden inflation.

The S&P 500 fell 1.1% for the third time in a row. The Dow Jones Industrial Average fell 0.8%, while the Nasdaq Composite fell 1%. The major indices fell for the second week in a row.

The pullback was substantial. More than 80% of the stocks in the S&P 500 index fell. Stocks in technology and health care were among the market’s heavyweights. Microsoft fell 1.7%, while Pfizer fell 4.1%.

The Fed raised its forecast for how high-interest rates will eventually go this week, snuffing out some investors’ hopes for rate cuts next year. In Europe, the central bank came across as even more aggressive in the eyes of many investors.

“Inflation remains the monster in the room,” said Liz Young, SoFi’s head of investment strategy.

Inflation has slowed from the highest levels in decades, but it remains excruciatingly high. As a result, the Fed has maintained its aggressive price-cutting strategy by raising interest rates to slow economic growth. The strategy increasingly risks slamming on the brakes too hard and sending an already slowing economy into a recession.

“It’s still unclear whether we’re in a mild, medium, or deep recession,” Young said.

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Wall Street S&P 500 Down

S&P Global released a mixed report on Friday, emphasizing the recession risk. This month’s business activity slowed more than expected due to rising inflation. It also stated that the drop was the sharpest since May 2020, but inflationary pressures have been easing.

“In short, the survey data suggest that Fed rate hikes are having the desired effect on inflation,” Chris Williamson, a chief business economist at S&P Global Market Intelligence, said.

The S&P 500 dropped 43.39 points to 3,852.36. This year, it is down about 19%. The Dow finished the day down 281.76 points at 32,920.46. The Nasdaq index fell 105.11 points to 10,705.41.

Small-company stocks suffered less severe losses than the broader market. The Russell 2000 index dropped 11.19 points, or 0.6%, to 1,763.42.

Bond yields were volatile. The 10-year Treasury yield, which influences mortgage rates, increased to 3.49% from 3.45% late Thursday. The two-year Treasury yield, which closely tracks Fed expectations, fell to 4.21% from 4.24% late Thursday.

The Fed ended its final meeting on Wednesday by raising its short-term interest rate by half a percentage point, the seventh increase this year. Wall Street had hoped the Fed would signal a slowing of rate hikes in the run-up to 2023, but the Fed did the opposite.

The federal funds rate is at its highest in 15 years, ranging from 4.25% to 4.5%. Fed policymakers predict that the central bank’s rate will be in the 5% to 5.25% range by the end of 2023. Rate cuts are not expected before 2024, according to their forecast.

Several companies outperformed the market on Friday, reporting strong financial results and forecasts. Adobe rose 3% after exceeding Wall Street’s fiscal fourth-quarter earnings forecast. United States Steel rose 5.8% after providing investors with a positive earnings forecast.

Source: Reuters, AP, PBS


CNN Ousts CEO Chris Licht After A Brief, Tumultuous Tenure




THE NEW YORK CNN fired Chief Executive Chris Licht, After a turbulent year in charge of the faltering news organization, culminating in a stinging magazine feature and the growing realization that he’d lost the trust of the network’s journalists, CNN fired Chief Executive Chris Licht.

Just two days after Licht declared he would “fight like hell” to earn the respect of those around him, the change was revealed at CNN’s editorial meeting on Wednesday morning.

In addition to appointing a four-person interim leadership team, Warner Bros. Discovery CEO David Zaslav announced during the editorial meeting that he would conduct a comprehensive search for Licht’s replacement.

Republicans had grown increasingly wary of the network due to frequent attacks by the late President Donald Trump. Thus, Licht was mandated to try and make CNN more appealing to both sides of the country’s political spectrum.

However, several network employees viewed Licht’s call for change as a rejection of their prior efforts, and a live town hall interview with Trump last month generated strong opposition.

Don Lemon was fired from the network’s morning show earlier this year after Licht tried to modernize it, but it was unsuccessful. Creating a new prime-time lineup was protracted, as Kaitlan Collins was only recently chosen to host the 9 p.m. hour, which has been without a permanent host since Chris Cuomo was let go in December 2021.


CNN fired Chief Executive Chris Licht.

Just over a year ago, Zaslav appointed Licht to succeed Jeff Zucker, a well-liked predecessor who had created shows like MSNBC’s “Morning Joe,” CBS’ morning news program, and Stephen Colbert’s late-night show. Zucker was let go for failing to disclose a mutually beneficial relationship with another CNN executive.

The position “was never going to be easy, especially at a time of great disruption and transformation,” Zaslav wrote in a memo to CNN employees.

He remarked, “Chris put his heart and soul into it. It has been clear throughout his tenure that he has a great affection for journalism and this industry. Unfortunately, things did not turn out as we had intended, and in the end, I was responsible.


An inquiry for comment from Licht has yet to receive a response.

“Inside the Meltdown at CNN,” a lengthy profile of Licht that appeared in Atlantic magazine on Friday, proved embarrassing and probably sealed his demise. Before he arrived, Licht criticized some of CNN’s COVID coverage, which infuriated some journalists.

According to a Wall Street Journal piece published Tuesday night, Jake Tapper, Anderson Cooper, and Erin Burnett, three of CNN’s top anchors, reportedly privately voiced their disapproval of Licht’s management.

In the meantime, viewers were leaving. With 494,000 viewers in May, CNN’s prime-time audience was down 16% from April and fell short of MSNBC, its nearest competitor in the news market.

Amy Entelis, Virginia Moseley, Eric Sherling, and David Leavy, four current CNN executives, were chosen by Zaslav to lead the network while a replacement is sought.

In the message, Zaslav stated, “We are in good hands, allowing us to take the time we need to run a thoughtful and thorough search for a new leader.”


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Oscar Winner Cuba Gooding Jr. Settles Civil Sex Abuse Case, Averting Trial




NEW YORK — Cuba Gooding Jr. has resolved allegations that he raped a woman at a New York City hotel ten years ago, according to court papers, it was disclosed Tuesday, just before a trial was about to start. The actor and the woman met at a nearby restaurant, and the actor had argued through lawyers that their interaction was consensual.

The Oscar-winning “Jerry Maguire” actor was accused of meeting the lady in Manhattan, getting her to go with him to a hotel, and stopping at his room so he could change clothes. The trial was set to begin with jury selection in New York federal court.

A calendar item in the official court record read: “Trial OFF,” minutes before jurors appear in a courtroom. The clause stated: “Reason for cancellation (on consent): The parties have resolved the matter.”

Before this week, when Judge Paul A. Crotty decided that the lady would have to give her name at trial, the woman had been proceeding anonymously. According to her claim, Gooding sexually assaulted her in his bedroom. However, his solicitors argued that it was consenting intercourse and that she boasted to others later.

In the complaint, $6 million in losses were demanded. One of several lawyers representing the woman, Gloria Allred, chose not to comment. Requests for a response from other solicitors, including those defending Gooding, were not promptly fulfilled.

According to the authorities, the claim was brought against a guy who has been accused of engaging in inappropriate behavior, such as groping, unwanted kissing, and other acts, with more than 30 additional women.


Cuba Gooding Jr. has resolved allegations that he raped a woman at a New York City hotel ten years ago.

By deciding to allow three women to testify that they, too, experienced sudden sexual assaults or attempted sexual assaults after meeting Gooding in social settings like festivals, bars, nightclubs, and restaurants late last week, the judge appeared to strengthen the woman’s position at trial and in settlement talks.

Kelsey Harbert, who alleged that Gooding fondled her without her permission at Magic Hour Rooftop Bar & Lounge close to Times Square in 2019, was one of the women who had intended to testify at the trial.

Last year, Gooding avoided jail time and a criminal record by entering a guilty plea in a New York state court, and Harbert stated that Gooding never having her day in court was “more disappointing than words can say.”

Gooding, who has starred in films like ‘Boyz n the Hood’ and ‘Radio’, was allowed to enter a guilty plea for a misdemeanor in April 2022 after admitting that he kissed a club employee violently in 2018.

Gooding was allowed to withdraw his guilty plea and plead guilty to a non-criminal harassment offense, erasing his criminal record and avoiding further punishments. He also completed six months of alcohol and behavioral counseling.


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Some ‘Diablo IV’ Players Report Invalid License Error Message After Early Access Launch



diablo IV

Washington, D.C. The highly anticipated action role-playing video game “Diablo IV” launched its early access on Thursday night. However, there were some delays, particularly for PlayStation players.

While many players who pre-purchased eligible “Diablo IV” editions experienced no problems with the early access launch, some PS5 users reported getting an invalid licensing error message. After initially stating that a server-side balance update had been implemented, Blizzard acknowledged the problem.

A software upgrade known as a hotfix focuses on a single problem and normally does not cause service interruptions.

The most recent game in the Blizzard “Diablo” series, which debuted in 1996, is titled “Diablo IV” and was released in May 2012. This is more than ten years after “Diablo III”‘s debut. Although the game’s early access began on Thursday, the launch is set for the following week.

Diablo’s general manager, Rod Fergusson, referred to “Diablo IV” as “our most brutal vision of Sanctuary,” the make-believe setting for the game. He continued, saying that it incorporates “the darkness of the original game” and expands on significant elements from other games in the franchise.

Activision Blizzard, the parent business of Blizzard Entertainment, announced in April that its net sales for the first quarter of 2023 increased to $2.38 billion from $1.77 billion. Activision reported that “Diablo IV” presales were robust, indicating that the game had undergone successful public testing.

What you need to know about “Diablo IV’s” upcoming official release and early access launch on Thursday is provided here.

diablo IV


Depending on your local time zone, “Diablo IV” will be formally published on Tuesday or Wednesday next week. The game will begin in the United States on Tuesday at 7 p.m. ET (4 p.m. PT).

Although “Diablo IV” is set to be on sale next week, early access started a few days earlier, on either Thursday or Friday, depending on where you are. Players who pre-purchased the game’s digital deluxe or ultimate edition were expected to have early access.

Additionally, some devices allow players who have previously purchased “Diablo IV” to pre-load the game. According to Blizzard, pre-loading is possible for Windows PC, Xbox, and PlayStation.

diablo IV


Although early access appeared to open without incident for the majority of gamers, some PS5 users reported receiving an error message that stated, “unable to find a valid licence for Diablo IV,” according to posts on Blizzard’s community forums and social media. Players on the PS5 appeared to be the ones most affected by the problem, but some other users said they also received the notice on Xbox and other platforms.

In a forum post late Thursday night, Blizzard recognized the PlayStation customers’ complaints. Adam Fletcher, director of global community development, later claimed that “Diablo IV” had received a server-side balance update implemented across all platforms.

How many early access players were affected by the problem is unknown. On Blizzard’s forum, some angry customers reported that they were still having access issues as of Friday morning.

The Associated Press requested statements from Blizzard and PlayStation on Friday morning.


“Diablo IV” reportedly takes place decades after the events of “Diablo III: Reaper of Souls.” The angel Inarius and the demon Lilith have started a battle and are at odds.

In “Diablo IV,” players can choose from one of five classes: Druids, Rogues, Sorceresses, Barbarians, or Necromancers.

At launch, “Diablo IV” will support couch co-op and cross-platform play on Windows PC, Xbox Series X, Xbox One, PlayStation 5, and PlayStation 4, among other platforms.

diablo IV

Financial results for Activation for 2022, Microsoft Deal

In 2022, Activision, the company behind “Call of Duty,” “Candy Crush,” and “World of Warcraft,” recorded net revenues of $7.53 billion, a decrease from the $8.8 billion reported in 2021.

Microsoft revealed plans to buy Activision in January 2022, but the historic transaction is doubtful more than a year later. Last month, the European Union authorized the $69 billion purchase, but British regulators halted it due to concerns about competition. Authorities in the US are also attempting to block the merger.

Regulators worldwide have scrutinized the agreement because of concern that it will give Microsoft and its Xbox platform control of popular s. PlayStation maker rival Sony has led a ferocious opposition.

Activision and Microsoft have appealed to a tribunal about the U.K. ruling. Liam Deane, a gaming industry analyst at digital research and consultancy firm Omdia, previously told The Associated Press that if the appeal is unsuccessful, Microsoft would be compelled to either cancel the arrangement or carve out the U.K. as a distinct market, which appeared to be an impractical choice.


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