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Recession A Looming Threat For Global Economy, 0.5% Growth

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WASHINGTON — The U.S. According to the World Bank on Tuesday, the global economy will come “close” to a recession this year, with poorer growth in all of the world’s major economies — the United States, Europe, and China.

The World Bank, which loans money to poorer nations for development projects, said in its annual report that it had cut its expectation for global growth this year by nearly half, to 1.7%, from 3% previously. If that projection is correct, it will be the third-weakest yearly expansion in three decades, trailing only the massive recessions caused by the 2008 global financial crisis and the 2020 coronavirus pandemic.

Though the United States may avoid a  this year — the World Bank anticipates 0.5% growth — global weakness will certainly represent an additional headwind for American businesses and consumers, on top of high prices and higher borrowing rates. The U.S. is also exposed to potential supply chain disruptions if COVID-19 rises or Russia’s war in Ukraine intensifies.

And Europe, which has long been a key supplier to China, will almost certainly suffer if the Chinese economy weakens.

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Recession Brings Higher Interest Rates

Rising interest rates in affluent economies such as the United States and Europe will also lure investment money from poorer countries, depriving them of critical domestic investment, according to the World Bank analysis. At the same time, high borrowing rates, according to the analysis, will limit growth in wealthy countries.

“Russia’s invasion of Ukraine has introduced significant new expenses,” World Bank President David Malpass told reporters during a conference call. “The picture is particularly bleak for many of the poorest economies, where poverty reduction has already stalled, and access to electricity, fertilizer, food, and money is likely to remain restricted for some time.”

A worldwide slowdown would be especially hard on poorer countries like Saharan Africa, which is home to 60% of the world’s impoverished. The World Bank forecasts a 1.2% growth in per capita income in 2023 and 2024, which is so slow that poverty rates may rise.

“Weaker development and business investment will make the already terrible changes in education, health, poverty, and infrastructure, as well as the growing needs of climate change, even worse,” Malpass said. “To deal with the size of these problems, we will need a lot more money for development and global public goods.”

Along with pursuing fresh money to lend more to poorer nations, Malpass stated that the World Bank is working to enhance loan terms to boost debt transparency, ” particularly for the growing number of poor countries at high risk of debt distress.”

The news comes right after the head of the world’s lending organization, the International Monetary Fund, Kristina Georgieva, made a similarly negative prediction. On CBS’ “Face the Nation,” Georgieva predicted that one-third of the world would enter a recession this year.

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It will Be A Tough Year

Georgieva said, “This will be a tougher year for most of the world’s economies than the one we’re leaving behind.” “Why? Because the three major economies — the United States, the European Union, and China — are all slowing simultaneously.”

According to the World Bank, the European Union’s economy will contract next year after expanding by 3.3% in 2022. It says that China will grow at an annual rate of 4.3%, which is almost 1% less than what was originally predicted and is about half of what Beijing did in 2021.

The bank forecasts emerging countries to perform better in a recession, with a growth rate of 3.4% this year, the same as in 2022 but less than half that of 2021. Brazil’s growth is expected to decline to 0.8% in 2023.
In Pakistan, the economy is expected to grow by only 2% this year, or one-third of last year’s rate.

Other economists have made grim forecasts for this recession, though most are less dire. JPMorgan economists think that advanced countries and the world will have slow growth this year, but there will not be a global recession. The bank forecast last month that falling inflation would boost consumers’ ability to spend and drive growth in the United States and internationally.

“The global expansion will be twisted but not broken by 2023,” according to JPMorgan research.

SOURCE – (AP)

 

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CNN Ousts CEO Chris Licht After A Brief, Tumultuous Tenure

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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.

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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.

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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.”

SOURCE – (AP)

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Navalny Supporters Hold Demonstrations To Mark Russian Opposition Leader’s 47th Birthday

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Russia — As Navalny followers held pickets and demonstrations to mark the imprisoned opposition leader’s 47th birthday on Sunday, with at least 90 people reportedly arrested, Alexei Navalny expressed hope for a better future in Russia despite a crackdown on dissent.

Navalny is currently serving a nine-year sentence for fraud and contempt of court, accusations he claims were made up to get him for his efforts organizing anti-Kremlin protests and exposing state corruption.

His next trial on allegations of extremism could land him in jail for many years. Critics of the Kremlin see the lawsuit as another effort by the Russian government to isolate its main adversary, President Vladimir Putin.

On Sunday, Navalny’s supporters urged protests to show solidarity with him in Russia and overseas.

Some Navalny fans in Russia held solitary pickets to commemorate his birthday, while others spray-painted walls, running the risk of receiving their prison sentences. The organization that tracks political arrests, OVD-Info, reports that at least 90 people were held.

Police increased their presence in central Moscow and moved swiftly to apprehend anyone attempting to set up a lone picket on Pushkin Square or elsewhere in the city.

One individual was able to distribute flyers before being taken away.

One of those arrested was a woman wearing a hoodie with the words “You aren’t alone” inscribed, holding a small black balloon with “Happy Birthday!” on it. She questioned the officers about why they were holding her, but they remained silent.

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On Sunday, Navalny’s supporters urged protests to show solidarity with him in Russia and overseas.

Additionally, Navalny’s fans appeared in St. Petersburg and other Russian cities, holding solitary pickets and leaving graffiti and placards in his favor.

Demonstrations in favor of Navalny were held in many European towns.

In a social media statement made public by his allies, Navalny stated that while he would undoubtedly prefer to celebrate his birthday with a family breakfast, kisses from his kids, and gifts, “life is such that social progress and a better future can only be achieved if a certain number of people are willing to pay for the right to have beliefs.”

“The price each has to pay is smaller the more there are of such people,” he remarked. And there will undoubtedly come a time when speaking the truth and defending justice in Russia will be commonplace and completely safe.

After recovering in Germany from the nerve agent poisoning he claimed the Kremlin was responsible for, Navalny was detained upon his return to Moscow in January 2021.

He was first given a 22-year prison term for breaking his parole. He received a nine-year term for fraud and contempt of court last year. He is incarcerated in a maximum-security facility 250 miles (150 kilometers) east of Moscow.

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On Sunday, Navalny’s supporters urged protests to show solidarity with him in Russia and overseas.

The allegations of extremism against Navalny, which carry a potential 30-year sentence, include his anti-corruption foundation and remarks made by his closest friends. His allies claimed that the accusations retrospectively criminalize all of Navalny’s foundation’s actions since its establishment in 2011.

The fresh claims coincide with an increased crackdown on dissent by Russian authorities amid the battle in Ukraine, which Navalny has sharply criticized.

A Moscow court denied a plea from Navalny’s attorneys for more time to review the extensive new charges, which he dismissed as “absurd,” and set a preliminary hearing for Tuesday to discuss technical matters associated with a fresh trial of Navalny.

Navalny cited an investigator saying he would be tried in a different military court on terrorism-related accusations, which might result in a life sentence.

In a social media statement on Sunday, he thanked his supporters and saw his prison sentence “just as an unpleasant part of my favourite job.”

“This is where loss begins,” he said. “My aim for the previous year was not to become nasty and enraged and not to lose the nonchalance of behavior. And if I was successful, it was only because of your help.

SOURCE – (AP)

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Delta Air Lines Hit With Lawsuit Over Claims Of Carbon Neutrality

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A class action complaint was filed against Delta Air Lines on Tuesday, claiming the company falsely advertised itself as the “first carbon-neutral airline” in the world. The complaint filed in California federal court alleges the airline used fraudulent carbon offsets.

Carbon credits are purchased by businesses worldwide to offset carbon dioxide emissions by funding initiatives that promise to remove carbon dioxide from the atmosphere or avoid pollution that would have otherwise occurred. However, suggestions that their benefits are overstated have recently put them in the spotlight.

According to the complaint, Delta is a major customer that has purchased credits from various projects, including wind and solar farms in India and a wetland in Indonesia.

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When asked for comment, the airline remained silent.

Mayanna Berrin, a resident of Glendale, California, has filed a lawsuit claiming to represent all Californians who have flown on Delta since March 2020. It claims that any gains from the offsets will be short-lived and would have occurred anyway. A carbon credit is only legitimate if it results in a positive outcome that would not have occurred without the credit.

Three years ago, Delta stated it would become carbon neutral, producing no more greenhouse gas emissions than it removed from the atmosphere. It may also need financial outlay to ensure its absorption in another setting.

According to Berrin, this allowed the company to increase its share of the market and its prices. Berrin, a writer for Nickelodeon, told The Associated Press that individuals her age, just on the cusp of their thirties, are particularly vulnerable to climate concerns.

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A class action complaint was filed against Delta Air Lines on Tuesday, claiming the company falsely advertised itself as the “first carbon-neutral airline” in the world.

“I felt comfortable paying more because I was neutralising when I needed to travel for work or to see my family,” she explained. She claimed she was frustrated and sad that she had second thoughts regarding Delta’s adjustments.

“They can’t just claim neutrality if that’s not factually accurate,” she argued. “Lawsuits are scary, and there are probably a lot of people who share my frustrations but don’t realise they have rights or can make a difference if they speak up.” According to her lawyer, Jonathan Haderlein, it is one of only a handful of “greenwashing” claims in the United States based on consumer protection law and the first of its kind against a major American airline.

2:23-cv-04150 is the official case number.

The International Energy Agency estimates that by 2021, aviation will have contributed over 2% of global CO2 emissions.

According to FlightRadar24, which monitors GPS data beamed to satellites and receivers, Delta, headquartered in Atlanta, Georgia, has 672 flights in the air worldwide as of Tuesday morning.

Source – (AP)

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