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Asia stocks slide as Powell comments quell rate peak bets

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39

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Asia stocks slide as Powell comments quell rate peak bets

Asian stocks fell to their lowest in a week on Friday, while the dollar was steady as elevated Treasury yields weighed on sentiment after hawkish comments from US Fed Chair Jerome Powell dashed expectations of a peak in interest rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39, on track for a fourth session of losses and a weekly decline of 0.5%.

The sombre mood is set to continue as Europe wakes up, with futures indicating a steeply lower open. Eurostoxx 50 futures were down 0.73%, German DAX futures dropped 0.66% and FTSE futures were 0.78% lower.

US Federal Reserve officials including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.

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The Fed is “committed to … monetary policy that is sufficiently restrictive to bring inflation down to 2% over time,” Powell said at an International Monetary Fund event.

“We are not confident that we have achieved such a stance.”

Powell’s comments along with a weak auction of $24 billion in 30-year Treasuries pushed yields higher, casting a shadow on equities and providing support to the dollar.

“There is no point in corralling the market into expecting cuts until shortly before they look necessary,” said Rob Carnell, Asia-Pacific head of research at ING.

Investors have been looking for signs of US interest rates peaking after the Fed held rates steady last week, a move that bolstered speculation that the rate hiking cycle was over, leading to a short-lived rally in risky assets.

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Some investors said Powell’s hawkish leaning on Thursday may have been the result of a recent loosening of financial conditions that has come as yields have tumbled in recent weeks.

ING’s Carnell said the Fed needs to keep rates and bond yields reasonably high to achieve the tighter financial conditions that will bring about lower inflation and enable the Fed to ultimately cut rates.

“That rhetoric has to continue, ‘we’re not definitely finished, there’s still a chance of more’ … (you) do that right up until the day before you cut,” he said.

The three major US stock indices closed lower on Thursday, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years as market optimism over looser monetary policy faded.

US rate futures have priced in about 60% chance of a rate cut at the Fed’s June 2024 meeting, according to the CME’s FedWatch tool, compared to odds of about 70% before Powell’s speech.

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Chinese stocks eased 0.6%, while Hong Kong’s Hang Seng Index was 1.6% lower as worries over the world’s second-biggest economy resurfaced after data on Thursday showed consumer prices dipped back into contraction.

Tapas Strickland, head of market economics at NAB, said the data keeps the pressure on Beijing to continue with its incremental easing in monetary and fiscal policy.

The yield on 10-year Treasury notes eased 1.2 basis points to 4.618%, having gained 12 basis points on Thursday, their largest one-day gain in three weeks.

In the currency market, the dollar index held on to its overnight gains and was last at 105.89. The dollar stood near a one-year high at 151.40 yen and touched one-week highs against the Australian and New Zealand dollars.

US crude rose 0.38% to $76.03 per barrel and Brent was at $80.39, up 0.47% on the day. The oil market has been reeling this week on demand concerns, with a fading war-risk premium triggering a sell-off.

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Spot gold was little changed at $1,956.80 per ounce and on track for their worst week in more than a month, down 1.8%, as elevated yield and stronger dollar weighed.

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Harvey Weinstein expected in New York court after rape conviction overturned

Harvey Weinstein expected in New York court after rape conviction overturned

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Harvey Weinstein expected in New York court after rape conviction overturned

Harvey Weinstein is due to appear in state court in Manhattan on Wednesday for the first time since New York’s highest court threw out his 2020 rape conviction last week.

The hearing before Judge Curtis Farber will give prosecutors and Weinstein’s lawyers a chance to address the next steps for the former film mogul, which could include a new trial.

“Harvey is looking forward to his day in a fair court,” said Weinstein’s spokesperson, Juda Engelmayer.

Weinstein, 72, has been serving a 23-year sentence in a prison in upstate Rome, New York. He is currently at Bellevue Hospital, where he was transferred following last week’s order, according to Engelmayer.

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Jurors in Manhattan convicted Weinstein in February 2020 of sexually assaulting former production assistant Miriam Haley in 2006 and of raping aspiring actress Jessica Mann in 2013. They are among more than 80 women who have accused him of sexual misconduct.

The conviction included charges of first-degree sexual assault and third-degree rape. Weinstein, who has denied having non-consensual sexual encounters with anyone, was acquitted on other charges.

The verdict was hailed as a milestone for the #MeToo movement, in which women accused hundreds of men in entertainment, media, politics and other fields of sexual misconduct.

Last week, the New York Court of Appeals found that Judge James Burke, who presided over the trial, made a critical mistake by allowing three women to testify about alleged sexual assaults by Weinstein that were not part of the criminal charges against him. The court said this “prior bad acts” testimony violated his right to a fair trial.

The office of Manhattan District Attorney Alvin Bragg has signaled it plans to retry Weinstein.

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“We will do everything in our power to retry this case, and remain steadfast in our commitment to survivors of sexual assault,” Emily Tuttle, a spokesperson for Bragg, said in an email last week.

The case was brought by Bragg’s predecessor, Cyrus Vance.

Regardless of whether he is retried, Weinstein is not likely to be released from jail because he was also sentenced to 16 years following his separate rape trial in California. The two sentences cannot be served concurrently.

Burke is no longer on the bench, so any retrial would be before a different judge.

Weinstein co-founded the Miramax film studio, whose hit movies included “Shakespeare in Love” and “Pulp Fiction.” His own eponymous film studio filed for bankruptcy in March 2018.

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‘Operation Madonna’: Rio readies for singer’s free mega-concert

‘Operation Madonna’: Rio readies for singer’s free mega-concert

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'Operation Madonna': Rio readies for singer's free mega-concert

Madonna’s long-awaited free concert on Rio de Janeiro’s Copacabana Beach has upended the neighborhood, with over a million fans expected — but for retired resident Mario Renato Borges, it’s the least the singer deserves.

“Welcome, Queen,” read some posters near the huge stage erected on the Brazilian beach, where Madonna will on Saturday give the biggest show of her 40-year career and the last of her “Celebration Tour.”

The 65-year-old American singer arrived in the coastal city on Monday after more than 80 shows in Europe, the United States and Mexico. This will be her only stop in South America.

The “Like A Virgin” and “Material Girl” performer traveled to Brazil with three planes and 270 tons of equipment, according to her production company.

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She has set up camp at the luxurious Copacabana Palace hotel, connected to the stage by a suspended catwalk that dozens of fans crowded under this week, hoping to catch a glimpse of the pop star.

The biggest dance floor

Thanks to free admission, organizers expect Madonna’s concert to produce the “world’s biggest dance floor” of up to 1.5 million people — a figure only reached on the same beach by the Rolling Stones in 2006.

“The traffic is chaos but the concert will be great, especially because it’s Madonna, the queen of pop,” says resident Borges, who lives in Leme, a neighborhood at the end of Copacabana Beach.

Madonna’s fourth performance in Rio will contribute some 293 million reais (US$57 million) to the local economy, an income 30 times higher than what city authorities invested, according to the mayor’s office.

Around 150,000 foreigners are expected to swarm the city, with most hotels already fully booked.

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“This will undoubtedly be one of Rio’s biggest international events. It will boost our economy and attract tourists from Brazil, Latin American and all over the world,” said the city’s Tourism Secretary Daniela Maia.

Return of the conical corset

Madonna fever is clear to see in Rio — the so-called “Marvelous City” — as the hours tick down to her performance.

At the Lix printing shop in the popular downtown Saara shopping district, the songs of the “Material Girl” are playing on loop to inspire devotees who can choose from personalized fans, hats or mugs.

Manager Livia Reis, 23, tells AFP that her store went viral on social media shortly after the concert was announced thanks to an influencer who visited the Madonna-inspired shop.

“A guy came in, took a photo and a video, and sent them to a fan club with 150,000 followers in Portugal. From there, it jumped to TikTok and Instagram,” she says.

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One particularly popular item is a replica of the conical corset created by French designer Jean Paul Gaultier, which Madonna famously wore on stage in 1990.

Sold as a bra or a top, the item is “doing very well,” says Reis, who expects there will be “queues out of the door” in the days ahead of the concert.

Patrols on the corners

“All this activity is good for tourism, hotels and restaurants. But let’s hope the security is up to the task,” says 68-year-old Rio local Borges.

The mayor’s office has prepared an operation equivalent to New Year’s Eve celebrations in Copacabana, one of the most famous in the world that typically brings down some one million people.

“Operation Madonna” will see some 4,500 agents deployed, working with drones and facial recognition cameras. There will be police patrols on almost every street corner in the neighborhood.

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Nagila Alves, 54, who works for a pest control company, was on her way to a client’s home when she stopped to take a photo of the impressive stage set up for Madonna.

“I will always love her. Madonna is timeless,” she tells AFP, adding she plans to delay her arrival on Saturday to dodge the crowds swarming to the front of the stage.

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Selena Gomez on social media: ‘I find it frustrating’

Selena Gomez on social media: ‘I find it frustrating’

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Selena Gomez on social media: 'I find it frustrating'

Selena Gomez feels frustrated by social media. The 31-year-old star has a huge online following, but Gomez often takes breaks from social media platforms to escape the negativity.

The brunette beauty – who has more than 400 million followers on Instagram – said at the TIME100 Summit: “I find it frustrating. Then I get a little mouthy and I want to defend the people I love.”

Gomez believes it’s important to take breaks from social media to retain a sense of perspective.

The actress – who is currently dating record producer Benny Blanco – explained: “I took four years off of Instagram, and I let my team post for me for those years. I felt like it was the most rewarding gift I gave myself.”

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Meanwhile, Gomez previously claimed that there’s “so much strength in being vulnerable”.

The Only Murders In The Building star has spoken openly about her mental health struggles over recent years, and Gomez admitted that she’s found it to be a “very freeing” experience.

She told Wondermind: “I don’t love giving advice because I don’t have all of the answers.

“I’d say, though, find a friend or a family member you feel comfortable talking with and open up about what you are feeling. It’s very freeing to open up to someone. There is so much strength in being vulnerable.”

Despite this, Gomez doesn’t have any regrets over how she’s dealt with her own struggles.

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The actress – who first found fame as a child – explained: “I try and not look back and wish anything could have been different. What I am happy about is that more people are opening up about their mental health.”

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