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Sunday, February 28, 2021

Asian stocks rally, battered bond market tries to steady - Reuters

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SYDNEY (Reuters) - Asian shares rallied on Monday as some semblance of calm returned to bond markets after last week’s wild ride, while progress in the huge U.S. stimulus package underpinned optimism about the global economy and sent oil prices higher.

FILE PHOTO: A passersby wearing a protective face mask is reflected on screen displaying the Japanese yen exchange rate against the U.S. dollar and stock prices at a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan November 6, 2020. REUTERS/Issei Kato

China’s official manufacturing PMI out over the weekend missed forecasts, but Japanese figures showed the fastest growth in two years. Investors are also counting on upbeat news from a raft of U.S. data due this week including the February payrolls report.

Helping sentiment was news deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.8%, after shedding 3.7% last Friday.

Japan’s Nikkei rallied 2.1%, while Chinese blue chips added 0.5%.

NASDAQ futures bounced 1.2% and S&P 500 futures 0.9%. EUROSTOXX 50 futures and FTSE futures both rose 1.1%.

Yields on U.S. 10-year notes came off to 1.41%, from last week’s peak of 1.61%, though they still ended last week 11 basis points higher and were up 50 basis points on the year so far.

“The bond moves on Friday still feel like a pause for air, rather than the catalyst for a move towards calmer waters,” said Rodrigo Catril, a senior strategist at NAB.

“Market participants remain nervous over the prospect of higher inflation as economies look to reopen aided by vaccine roll outs, high levels of savings along with solid fiscal and monetary support.”

Analysts at BofA noted the bond bear market was now one of the most severe on record with the annualised price return from 10-year U.S. govt bonds down 29% since last August, with Australia off 19%, the UK 16% and Canada 10%.

The rout owed much to expectations of faster U.S. growth as the House passed President Joe Biden’s $1.9 trillion coronavirus relief package, sending it to Senate.

BofA’s U.S. Economist Michelle Meyer lifted her forecast for economic growth to 6.5% for this year and 5% next, due to the likelihood of the larger stimulus package, better news on the virus front and encouraging data.

Virus cases were also down 72% since a Jan. 12 peak and hospitalizations are following closely behind, BofA added.

Higher U.S. yields combined with the general shift to safety helped the dollar index rebound to 90.917 from a seven-week low of 89.677.

On Monday, the euro was steady at $1.2086, compared to last week’s peak of $1.2242, while the dollar held near a six-month top on the yen at 106.57.

“Riskier” currencies and those exposed to commodities bounced a little after taking a beating late last week, with the Australian and Canadian dollars up and emerging markets from Brazil to Turkey looking steadier.

Non-yielding gold was still nursing losses after hitting an eight-month low on Friday en route to its worst month since November 2016. It was last at $1,743 an ounce, just above a trough around $1,716.

Oil prices extended their gains ahead of an OPEC meeting this week where supply could be increased. Brent gained 4.8% last week and WTI 3.8%, while both were about 20% higher over February as a whole.

Brent was last up $1.27 at $65.69, while U.S. crude rose $1.22 to $62.72 per barrel.

Editing by Shri Navaratnam

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March 01, 2021 at 08:59AM
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Asian stocks rally, battered bond market tries to steady - Reuters
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7 New Hard Seltzers Hitting The Market - Forbes

GLOBAL MARKETS-Asian stocks bounce as bond market calms - Yahoo Finance

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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* Asia ex-Japan index +0.1%, Nikkei bounces 2%

* US 10yr yields dip to 1.40% vs last week 1.61% peak

* US stimulus bill progresses, J&J vaccine due Tuesday

* Oil prices rise ahead of OPEC meeting

By Wayne Cole

SYDNEY, March 1 (Reuters) - Asian shares firmed on Monday as some semblance of calm returned to bond markets after last week's wild ride, while progress in the huge U.S. stimulus package underpinned optimism about the global economy.

China's official manufacturing PMI out over the weekend missed forecasts, but investors are counting on better news from a raft of U.S. data due this week including the February payrolls report.

Also helping sentiment was news deliveries of the newly approved Johnson & Johnson COVID-19 vaccine should start on Tuesday.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%, after shedding 3.7% last Friday.

Japan's Nikkei rallied 2.0%, while NASDAQ futures bounced 0.8% and S&P 500 futures 0.7%.

Yields on U.S. 10-year notes came off to 1.40%, from last week's peak of 1.61%, though they still ended last week 11 basis points higher and were up 50 basis points on the year so far.

"The bond moves on Friday still feel like a pause for air, rather than the catalyst for a move towards calmer waters," said Rodrigo Catril, a senior strategist at NAB.

"Market participants remain nervous over the prospect of higher inflation as economies look to reopen aided by vaccine roll outs, high levels of savings along with solid fiscal and monetary support."

Analysts at BofA noted the bond bear market was now one of the most severe on record with the annualised price return from 10-year U.S. govt bonds down 29% since last August, with Australia off 19%, the UK 16% and Canada 10%.

The rout owed much to expectations of faster U.S. growth as the House passed President Joe Biden's $1.9 trillion coronavirus relief package, sending it to Senate.

BofA's U.S. Economist Michelle Meyer lifted her forecast for economic growth to 6.5% for this year and 5% next, due to the likelihood of the larger stimulus package, better news on the virus front and encouraging data.

Virus cases were also down 72% since a Jan. 12 peak and hospitalizations are following closely behind, BofA added.

Higher U.S. yields combined with the general shift to safety helped the dollar index rebound to 90.917 from a seven-week low of 89.677.

Early Monday, the euro was holding at $1.2086, compared to last week's peak of $1.2242, while the dollar held near a six-month top on the yen at 106.50.

"Riskier" currencies and those exposed to commodities bounced a little after taking a beating late last week, with the Australian and Canadian dollars up and emerging markets from Brazil to Turkey looking steadier.

Non-yielding gold was still nursing losses after hitting an eight-month low on Friday en route to its worst month since November 2016. It was last at $1,737 an ounce, just above a trough around $1,716.

Oil prices extended their gains ahead of an OPEC meeting this week where supply could be increased. Brent gained 4.8% last week and WTI 3.8%, while both were about 20% higher over February as a whole.

Brent was last up 92 cents to $65.34, while U.S. crude rose 97 cents to $62.47 per barrel.

(Editing by Shri Navaratnam)

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CPAC: Trump rules out new political party in speech to conservatives - BBC News

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Donald Trump says he has no plans to launch a new political party, telling a conservative conference in Florida that it would split the Republican vote.

In his first speech since Democrat Joe Biden became president, he also hinted that he might run for office again in 2024.

Mr Trump strongly criticised his successor, saying US policy had gone from "America first to America last".

The speech comes weeks after Mr Trump was acquitted in an impeachment trial.

His appearance at the Conservative Political Action Conference (CPAC) in Orlando on Sunday represents his continued influence over the Republican Party.

Supporters hear Donald Trump speak at the Conservative Political Action Conference in Orlando, February 28, 2021
Reuters

The mood of the conference - which began on Thursday - has been extremely pro-Trump, with loyalists including Texas Senator Ted Cruz and his son Donald Trump Jr among the speakers.

The former president remains banned from social media platforms, including Facebook and Twitter, over his response to January's deadly riot at the US Capitol.

He has been living at his Mar-a-Lago Florida golf resort since leaving the White House.

What did Donald Trump say?

The 74-year-old former president was cheered by supporters when he appeared on stage at the Hyatt Regency Hotel more than an hour late. Many people in the crowd were not wearing masks.

"I stand before you today to declare that the incredible journey we began together four years ago is far from over," he said.

"We are gathered this afternoon to talk about the future - the future of our movement, the future of our party, and the future of our beloved country."

He dismissed any idea that he might start a new political party - describing rumours he would do so as "fake news".

"Wouldn't that be brilliant? Let's start a new party so we can divide our vote and never win," he joked.

"We have the Republican Party. It's going to unite and be stronger than ever before."

Despite losing November's presidential election and being deeply criticised over the January riot, reports suggest Mr Trump remains extremely popular among his voting base.

A golden statue of Donald Trump is seen being moved into CPAC conference
Getty Images

In his CPAC speech, Mr Trump repeated his false claims that he lost November's election to the Democrats because of electoral fraud and he hinted at another run in 2024, saying: "Actually you know they just lost the White House. But who knows - who knows? I may even decide to beat them for a third time, OK?"

He excoriated the new administration, criticising Mr Biden for reversing his hard line on immigration and border security.

"We all knew that the Biden administration was going to be bad but none of us even imagined how just how bad they would be and how far left they would go," he told the cheering crowd.

Grey line

Trump grasps for new lines in Biden era

Analysis box by Anthony Zurcher, North America reporter

Donald Trump is back. After a month out of the public eye, the former president picked CPAC's friendly confines to launch his bid for political revival.

Judging from the crowd here, not much reviving - at least among conservative activists - will be necessary. Their support for Trump - through electoral defeat, through the January mob attack on the US Capitol, through all of it - never flagged.

So when Trump made his bid for continued leadership of the party - as a king-maker and, perhaps, its standard-bearer in 2024 - the crowd gave its full-throated approval.

For the ex-president's potential successors in the party, however, there was a glimmer of opportunity on Sunday. Trump's speech was lacklustre by his standards. His self-imposed exile may have taken a toll - leaving him grasping for lines that work in the Joe Biden era. And while approval of Trump's policies was sky-high in a straw poll of CPAC attendees, only just over half said they would vote for him if he ran in 2024. It's a daunting advantage, but perhaps not prohibitive.

Trump's continued influence within the party seems secure, but translating that influence into another presidential nomination - if he wants it - is no sure thing. He'll have to earn it.

Grey line

Republican lawmakers remained largely loyal to Mr Trump during his time in office but 10 voted to impeach him in the House of Representatives last month and seven voted to convict him in the subsequent Senate trial. The overall tally, 57-43 in favour of his guilt, fell short of the two-thirds margin needed to convict him.

Senator Mitch McConnell, the top Republican in Congress, criticised the former president's actions after his acquittal - declaring Mr Trump "practically and morally responsible" for provoking the riot, despite personally voting against his guilt on the incitement charge.

Mr Trump then broke his relative silence to launch a scathing personal attack on Mr McConnell whom he described as "a dour, sullen, and unsmiling political hack".

Supporters of Donald Trump outside the Hyatt Regency Hotel in Orlando
Getty Images

The schism in the party has remained since, with those who have broken rank against him notably absent from the CPAC stage.

The conference, which began in 1974, is seen as the most influential gathering of US conservatives and a barometer of the Republican party's political direction.

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New York governor faces new allegations that threaten his political future - CNN

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Now a year later, the Democratic governor is engulfed in multiple controversies that have threatened his political survival and raised serious questions about his judgment at a time when he might otherwise have been on a glide path to a fourth term in the 2022 election.
Just a few years after the #MeToo movement put a glaring spotlight on the entrenched pattern of sexual misconduct by men in powerful positions, Cuomo is facing sexual harassment allegations from two female former aides who described an unsettling power dynamic in his office that they say they are determined to call attention to.
The allegations come as Cuomo's administration is embroiled in a controversy over the state Department of Health's alleged underreporting of Covid-19 nursing home deaths and the administration's delay in providing data about those deaths to state lawmakers. The FBI and the US attorney's office in Brooklyn are examining the handling of the data. Some state lawmakers have accused Cuomo of a cover up and have said they are considering repealing the governor's emergency powers. Lawmakers are also asking whether more deaths in New York's long-term care facilities could have been prevented.

Disturbing allegations

The new sexual harassment allegation emerged Saturday evening in an article in the New York Times. Charlotte Bennett, a 25-year-old former executive assistant and health policy adviser to Cuomo, told the newspaper that during one of several uncomfortable encounters, Cuomo asked her questions about her sex life during a conversation in his State Capitol office and said he was open to relationships with women in their 20s.
She interpreted the exchange -- which she said took place in June while the state was in the throes of fighting the pandemic -- as what the newspaper called "clear overtures to a sexual relationship." CNN has reached out to Bennett for comment on the latest accusation.
Cuomo denied Bennett's allegations Saturday in a statement, saying he believed he had been acting as a mentor and that he "never made advances toward Ms. Bennett, nor did I ever intend to act in any way that was inappropriate."
"The last thing I would ever have wanted was to make her feel any of the things that are being reported," Cuomo said, saying that "she came to me and opened up about being a sexual assault survivor" and that "I tried to be supportive and helpful."
In his statement Cuomo said he had requested an "outside review" of the matter and asked that New Yorkers await the findings "before making any judgments." He called Bennett "a hardworking and valued member of our team during COVID" and said "she has every right to speak out."
Beth Garvey, special counsel and senior advisor to Cuomo, said in a statement Sunday that the governor's office has asked the New York attorney general and the chief judge of the court of appeals to jointly select an independent attorney to conduct "a thorough review" of sexual harassment claims against the governor.
The governor's office will "cooperate fully" and will not make further comment on the matter until the report is issued, Garvey said.
Bennett told the New York Times that she felt compelled to speak out about her account because she wanted to draw scrutiny to the way Cuomo "wields his power." Bennett told the Times that Cuomo did not make a physical advance on her, but the message was clear. "I understood that the governor wanted to sleep with me, and felt horribly uncomfortable and scared," she told the newspaper. "And was wondering how I was going to get out of it and assumed it was the end of my job."
Bennett agreed to speak to the New York Times last week after she shared a tweet from the account of another former Cuomo aide, Lindsey Boylan, who wrote a detailed post on Medium about her own allegations of sexual harassment against Cuomo, which his aides have said are untrue.
When tweeting Boylan's account, Bennett urged people to read it if they want to know "what it's like to work for the Cuomo (administration)."
Boylan alleged in the Medium post that Cuomo invited her to "play strip poker" during a 2017 flight on his taxpayer-funded jet while another aide was seated beside her and a state trooper behind her. In 2018, Boylan said, Cuomo stunned her by kissing her on the lips after a one-on-one briefing on economic and infrastructure projects in his New York City office.
Cuomo denied Boylan's allegations in a December news conference when she first made them.
In a statement released by the governor's press secretary on Wednesday, four other people said they were on October flights with her and that "this conversation did not happen."
CNN has not been able to corroborate the allegations, and when asked for further comment, Boylan -- who is currently running for Manhattan borough president -- replied that she was letting her Medium post speak for itself. She wrote in the post that she hoped sharing her story "will clear the path for other women to do the same."
"Governor Andrew Cuomo has created a culture within his administration where sexual harassment and bullying is so pervasive that it is not only condoned but expected," Boylan wrote. "His inappropriate behavior toward women was an affirmation that he liked you, that you must be doing something right. He used intimidation to silence his critics. And if you dared to speak up, you would face consequences."
Boylan tweeted Sunday morning that Cuomo should resign. "And if he does not resign, he should be removed from office. Not one more victim. Not one more life destroyed," she wrote.
New York State Senate Majority Leader Andrea Stewart-Cousins, a Democrat, released a statement last week calling the Boylan accusation "disturbing."
"This is deeply disturbing. Clearly there is no place for this type of behavior in the workplace or anywhere else," Stewart-Cousins wrote.
New York City Mayor Bill de Blasio -- a frequent Cuomo sparring partner -- called Sunday for the state legislature to revoke the governor's emergency powers and said that "two fully independent investigations must be held immediately into the deaths at nursing homes and the disturbing personal misconduct allegations."
Asked about the new allegations against Cuomo on CNN's "State of the Union" on Sunday, White House press secretary Jen Psaki said President Joe Biden "believes that every woman should be heard, should be treated with respect and with dignity."
"Charlotte should be treated with respect and dignity. So should Lindsey. And there should be an independent review looking into these allegations and that's certainly something he supports and we believe should move forward as quickly as possible," Psaki told CNN's Dana Bash, calling the allegations "serious" and adding that "it was hard to read that story as a woman."

An already perilous position

Now facing two sets of allegations against him that detail not only inappropriate conduct but an office culture where women say they were afraid to speak up, Cuomo will have to explain the environment that he has created over his three terms as governor. And the allegations come at a difficult time for Cuomo when some of his political adversaries are more loudly questioning his political tactics as his administration is criticized for its handling of Covid-19 data.
His administration is still reeling from the fallout from a report released in January by New York Attorney General Letitia James that revealed that the New York State Department of Health undercounted Covid-19 deaths among residents of nursing homes by approximately 50%. The governor has faced fierce criticism both for his explanation of what happened and his actions as he tried to mitigate the damage of the data reporting scandal.
More than 15,000 residents of New York's long-term care facilities have died (or are presumed to have died) from Covid-19 since the pandemic began, according to the state Department of Health. But until January, the department only reported the deaths of long-term care residents who died in a facility like a nursing home, not those who passed away after being transferred to hospitals.
Rep. Alexandria Ocasio-Cortez, one of the state's high-profile lawmakers in Washington, DC, has come out in favor of "a full investigation of the Cuomo administration's handling of nursing homes during COVID-19."
The confusion about the nursing home numbers led many New York lawmakers to drill the Cuomo administration for clearer answers about that data throughout last year. Earlier this month, after James' report, Cuomo's top aide Melissa DeRosa admitted in a virtual meeting with state lawmakers that the administration tried to delay the release of the data on Covid-19 deaths in long-term care facilities, because they were wary of a federal Justice Department preliminary inquiry.
During a subsequent news conference, Cuomo acknowledged that his administration did not respond "soon enough" to requests for the data on Covid-19 deaths that was being requested by lawmakers, but he said the state's death counts were accurate.
"To be clear, all the deaths in the nursing homes and in the hospitals were always fully, publicly and accurately reported," he said.
Like DeRosa, Cuomo tried to explain his administration's delay in releasing data on Covid-19 deaths to lawmakers by stating that the Department of Health "paused" state lawmakers' request for Covid-19 death data while his administration was focused on the related inquiry by the Justice Department. In a narrowly worded apology, he said the delay in providing the information to lawmakers created "a void" that allowed conspiracy theories to flourish.
"The void we created by not providing information was filled with skepticism and cynicism and conspiracy theories which furthered the confusion," Cuomo said. "We should have done a better job in providing information. We should have done a better job of knocking down the disinformation. ... I accept responsibility for that."
But that apology did not go far enough for many of the lawmakers who are delving more deeply into whether more could have been done to prevent the state's more than 47,000 deaths from the coronavirus.
In another notable allegation about the power dynamics that Cuomo has created, one lawmaker accused the governor of trying to control the fallout over the misleading data reporting about nursing home deaths by threatening his career.
Democratic Assemblyman Ron Kim, a progressive from Queens who is an outspoken critic of Cuomo, alleged that during a phone call with the governor earlier this month, Cuomo threatened his career if he "did not cover up for Melissa (DeRosa) and what she said."
Recounting the conversation, Kim told CNN that Cuomo said: "We're in this business together and we don't cross certain lines" and added that "I hadn't seen his wrath and that he can destroy me."
Rich Azzopardi, Cuomo's senior adviser, said the allegation that Cuomo threatened to "destroy" Kim was a lie.
Cuomo's standing with a majority of New Yorkers remained high in a Siena College Research Institute survey released earlier this month but conducted before the details of DeRosa's call were made public. More than 60% of voters approved of his handling of the pandemic although a majority gave him "fair" or "poor" marks on making public all data about Covid-related deaths of nursing home patients.
The questions about the Cuomo administration's handling of the data are not fading, as yet another contentious hearing with New York state Health Commissioner Dr. Howard Zucker showed last week.
State Sen. Gustavo Rivera, the Democratic chair of the health committee, expressed frustration during the hearing with an administration that he said "will apparently never acknowledge that you have done anything wrong."
At the height of his popularity last spring, Cuomo was praised for his clarity and his candor about the depths of the crisis that his state was facing. That clarity has been missing in his administration's explanations of the handling of Covid-19 data, which have been confusing and difficult to follow. He now also faces serious allegations that he created a toxic work culture and acted in a way that indelibly changed the career trajectory of two young women in his employ.
Whether he has a political future won't be clear until he explains how that happened and offers his constituents a candid assessment of his own conduct -- which will determine whether he can regain their trust.

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Trump railed against the 'deep state,' but he also built his own. Biden is trying to dismantle it. - NBC News

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As president, Donald Trump railed against the “deep state” working within the federal government to undermine his presidency.

But before he left office, he quietly embedded dozens of his own political appointees in career government positions and appointed other loyalists to influential boards and groups — one of the final, but possibly most enduring, ways he attempted to remake Washington in his own image.

Now, President Joe Biden’s administration is trying to root out some of those government employees, seeking to rid the broader federal bureaucracy of Trump loyalists who could hinder his agenda.

There was nothing new about Trump’s attempts to convert political appointees to civil service employees, a process called “burrowing” by some government watchers; outgoing presidents have done it for years. (Civil service workers have protections that political appointees do not, and are harder for new administrations to fire.)

But good-government advocates, government watchdogs and experts on the federal bureaucracy, including one member of Congress, said that Trump’s "burrowers" were both more plentiful, and more dangerous, than usual.

Further, these experts pointed to moves by Trump, in the final days of his presidency, to place allies in unusual positions like little-known advisory boards with close ties to decision-makers at key agencies, and low-level unpaid jobs on prestigious boards. Those allies retain access to lawmakers, decision-making processes and information that could ultimately make its way back to the former president.

“Under the guise of stopping a 'deep state' coup that never existed, Trump appears to have tried to create a deep state of his own,” said David Rohde, the author of the 2020 book “In Deep: The FBI, the CIA, and the Truth about America's 'Deep State'” and the executive editor of NewYorker.com. Rohde called that effort, if it had proceeded unfettered, “an existential threat to democracy.”

Seeking to cut off any potential such damage, the Biden administration has in recent weeks terminated or placed on leave several government employees placed into their jobs by Trump in the waning days of his presidency, including the top lawyer at the National Security Agency and several members on Pentagon advisory boards.

In a statement to NBC News, a Biden White House official said the administration “is conducting a thorough review of several councils, commissions, and advisory boards,” adding that “as part of that review, we may remove individuals whose continued membership on the board would not serve the public interest.”

But experts warned that countless others are likely peppered throughout the federal government and that it would be difficult for Biden to identify and remove all of them.

“Not to be hyperbolic, but the damage some of these people could do is enormous,” said Liz Hempowicz, the director of public policy at the nonpartisan Project on Government Oversight.

Finding Trump loyalists

Trump political appointees petitioned the Office of Personnel Management 49 times for conversion to civil service jobs from January 2020 through September 2020, a congressional aide with knowledge of the matter told NBC News. According to the aide, 15 were approved, 14 were denied, declined or withdrawn, and another 20 were still pending.

The OPM tracks such conversion requests on a quarterly basis and subsequently provides the information to members of Congress. The number of requested conversions for the last quarter of 2020 — the final months of Trump’s presidency — won’t be released to Congress until March.

Some agencies aren’t required to report conversions, and some agencies never announced their new hires, making it difficult for the Biden administration to truly know the extent of the reach of Trump loyalists

Jan. 21, 202101:26

The overall number of requests from the Trump administration in 2020 identified so far, however, outpaces Trump’s predecessor in the White House. During President Barack Obama’s final year in the White House, including the first 20 days of January 2017, his administration had a total of 39 conversion requests, the aide said.

A spokesperson for Trump did not respond to requests for comment.

The Trump administration conversion that caused the most concern, the congressional aide and numerous experts said, was Michael Ellis, a Trump loyalist who, one day before Biden took office last month, was sworn in as the top lawyer for the National Security Agency.

On Jan. 20, Biden's first day in office, his administration placed Ellis on administrative leave while his transfer to the agency from his previous role at the Trump White House was reviewed by an inspector general for the Department of Defense.

Ellis, a former staffer for Rep. Devin Nunes, R-Calif., who went on to work in the Trump White House, was involved in the placement ofa reconstructed transcript of Trump’s phone call with Ukrainian President Volodymyr Zelenskiy into a classified computer system, The Associated Press reported. That July 2019 call — on which Trump asked his counterpart to investigate Biden and his son Hunter — became the basis of Trump’s first impeachment trial. A National Security Council spokesman speaking on Ellis' behalf at the time declined to comment to the AP.

Two years earlier, The New York Times reported that Ellis, then a lawyer working on national security issues at the White House Counsel’s Office, was involved in giving Nunes, then the House Intelligence Committee chair, access to intelligence reports that seemed to show Trump and his associates were incidentally included in surveillance efforts during the Obama administration.

Ellis, who later worked as a White House senior director of intelligence, a political job, was tapped to be the general counsel of the NSA, a civil service position that would extend beyond Trump’s time in office, in the weeks after he lost the election.

Experts on burrowing told NBC News that based on Ellis' reported past actions, they were concerned that as NSA general counsel, he would have the opportunity to continue to evaluate intelligence in a way that would have benefited Trump or his allies.

“If there is a track record of mishandling classified information, that should disqualify him from this role,” said Nick Schwellenbach, a senior investigator at the Project on Government Oversight. “It definitely looked like an attempt to embed a political operative inside one of the most powerful spy agencies.”

Rep. Gerry Connolly, D-Va., who as the chair of the House Subcommittee on Government Operations had pushed the Trump administration to be more transparent with the number of conversions it requested, added that Ellis is just one prominent example of why civil service jobs must not go to partisans.

“Many of former President Trump’s ardent political appointees were openly and unapologetically committed to tearing down those institutions. To allow them to continue in the federal government will hurt all Americans,” Connolly told NBC News.

Ellis did not respond to phone calls and messages from NBC News.

A former Trump administration official told NBC News that Ellis’ hiring process at the NSA began in 2019 and that Ellis went through the “standard process” an appointee would go through to get a career job. The former official also rejected any suggestion that Ellis was not qualified for the job.

“He is eminently qualified,” the former official said.

Because Ellis had already been sworn in when Biden took office, he benefits from robust civil service job protections and cannot be easily terminated. Trump signed an executive order days before the 2020 election that allowed federal agencies to work around rules mandating a merit-based application process by political appointees applying for career civil service jobs, a move experts said was designed to allow Trump to remake the civil service as he saw fit. Biden, however, signed an executive order during his first week in office undoing Trump’s order. As a result, Ellis may remain on administrative leave or be transferred to another job, experts said.

Another name that experts frequently mentioned in interviews was Brandon Middleton, a Trump loyalist who is now a top Energy Department lawyer. Middleton had earlier worked in the environmental and natural resources division under then-Attorney General Jeff Sessions. He later took a job as a political appointee in Trump's Interior Department before applying for and receiving a permanent civil service job as chief counsel in an Energy Department office dealing with toxic waste cleanup.

“He has a demonstrable track record of taking a pro-corporation view of environmental law. He doesn’t look like someone who will call balls and strikes in a straight way,” said Schwellenbach. Middleton did not respond to phone calls and messages from NBC News.

Other approved requests through the first nine months of 2020 for conversion of former political appointees to career civil service jobs included Prerak Shah, a deputy assistant attorney general in the Trump Justice Department who had served as Sen. Ted Cruz’s chief of staff, to an assistant U.S. attorney job for the Northern District of Texas. Shah was named acting U.S. attorney for that district last month.Tracy Short was granted a petition to be the chief immigration judge at the Justice Department’s Executive Office for Immigration Review, a civil service job, after he’d worked as a senior adviser at Immigration and Customs Enforcement, a political job.

Shah did not respond to phone calls and messages from NBC News. A spokesperson for the U.S. Attorney’s Office for the Northern District of Texas declined to comment. A spokesperson for the EOIR said Short’s “selection, and subsequent career appointment” at the EOIR “followed a public solicitation for applications, a merit-based application review and interview process, and an established process with the Office of Personnel Management for sitting political appointees who are selected for career positions.”

Still other people whose names prompted concern have been cleared out.

Daniel Sitterly, who became deputy assistant secretary for the VA’s Office of Accountability and Whistleblower Protection in December, a career job, raised flags at the Project on Government Oversight.

“We were concerned he was placed there to protect VA leadership from accountability,” Hempowicz, the group’s public policy director, said.

While it was unclear whether Sitterly took part in a formal conversion application process, he went from a political job to a civil career job in December. He had previously been the agency’s assistant secretary for human resources and administration, which is a political job, although prior to that, he held other career-track jobs.

In a January email that was provided to NBC News, the VA’s accountability office announced his retirement effective Jan. 31.

Sitterly did not respond to messages. A spokesperson for the VA declined to comment.

Low-level jobs full of loyalists, too

In interviews, experts also expressed concern over the dozens of loyalists appointed in late 2020 by Trump to several lower-level boards who will now — in many cases with no relevant experience — have the ability to provide meaningful input on schools, museums, nonprofits and even the public release of certain classified materials.

Among them are former Florida Attorney General Pam Bondi, a member of Trump’s defense team at his first impeachment trial, who he appointed to the board of trustees for the Kennedy Center for the Performing Arts, and Hope Hicks, a top aide to Trump for much of his presidency, who he appointed to the William Fulbright Foreign Scholarship Board.

Trump also appointed to the U.S. Holocaust Memorial Council Richard Grenell, a fierce loyalist who served as Trump’s acting director of national intelligence for several months in 2020, and Andrew Giuliani, the son of Trump ally Rudy Giuliani and a former White House aide.

He tapped Ezra Cohen-Watnick, a former White House National Security Council staffer who briefly served as acting undersecretary of defense for intelligence, the chair of the Public Interest Declassification Board, an obscure position charged with advocating for public access to classified information.

The terms of these appointments are typically yearslong and removal can be challenging, experts said. The posts, all unpaid, “tend to be patronage jobs in nature, a reward,” Schwellenbach said.

“But it’s still an opportunity to hobnob with important people, get you in the door for important events, grease the wheels for deals you may have on the side, meet people, keep your ear to the ground, which I believe creates added concern ... when you consider that this all is through the lens of Trump’s allies,” he added.

In a statement to NBC News, Grenell pointed to multiple actions he had taken as Trump's ambassador to Germany, including having pressured the German government to ban Hezbollah, pushing U.S. officials to return Nazi prison guard Jakiw Palij to Germany, and having "confronted the rise of anti-Semitism in Europe," as evidence of his qualifications for his appointment to the Holocaust Memorial Council.

Giuliani did not respond to emails.

Bondi also did not respond to phone calls and messages. A Kennedy Center spokesperson said the organization has had, for decades, and across numerous presidential administrations, "a bipartisan board that works collaboratively and positively to advance the mission of the Kennedy Center."

In a statement, Mark Zaid, an attorney for Cohen-Watnick, said his client "was a perfect choice to lead the bipartisan PIDB, and government watchdog organizations will be pleasantly surprised by what they will see during this tenure."

"Ezra completely understands his lawful obligations to protect classified information and he will be led by career, experienced PIDB staff," Zaid said. "I certainly have no concerns he would take any steps to cross an inappropriate line. Any concerns involving Ezra and Trump are completely misplaced."

Hicks did not respond to phone calls and messages.

Dec. 5, 202002:57

Pentagon advisory boards were another area where the Biden administration took action on Trump appointees.

NBC News reported this month that Defense Secretary Lloyd Austin had dismissed every member of the Pentagon’s advisory boards, a move officials said was driven by concern over last-minute appointments made by the Trump administration.

Among those dismissed were Corey Lewandowski, Trump’s 2016 presidential campaign manager, and David Bossie, a former deputy campaign manager. The board advisory positions that went to them, and all others relieved by Austin, were unpaid and not formal Pentagon employees. But experts said that the jobs are still highly sought-after because they provide access to top leaders at the department and can come with security clearances and access to sensitive information, like defense contracts.

Those jobs are of significantly less concern than partisans in critical career jobs, experts said. But no matter the level of the position, they said, there’s little room for diehard political ideology within a broad federal bureaucracy that is charged with solving a slew of historical challenges.

“Our government has a phenomenally large and complex and diverse set of problems to address. A pandemic, an economic crisis, cyberattacks,” said Max Stier, CEO of the nonpartisan Partnership for Public Service.

“We have a system where a president gets to name any number of people to any number of jobs. But in so many cases, and certainly in the last administration, they’re not chosen for their ability. They are not the best and brightest."

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How Disinformation Is Shaping The Political Process - NPR

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Disinformation is not just affecting politics at the national level. It's eroding public trust in institutions.

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This Stock Market Bubble May Not Be So Bad - Forbes

Bond-Market Tumult Puts ‘Lower for Longer’ in the Crosshairs - The Wall Street Journal

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Some Federal Reserve officials have said the recent rise in the yield on the benchmark 10-year Treasury note is healthy.

Some Federal Reserve officials have said the recent rise in the yield on the benchmark 10-year Treasury note is healthy.

Photo: Samuel Corum/Bloomberg News

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Trump Returns to Political Stage at CPAC in Orlando - Bay News 9

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ORLANDO, Fla. — Former President Donald Trump will take the political stage once again in Orlando. 


What You Need To Know


The former president is expected to speak Sunday afternoon at the CPAC following a weekend of speeches from GOP leaders. Trump's speech is a highly anticipated one — his first since leaving the White House. 

Many supporters are excited for Trump's return to the political arena after taking a month away.

Ahead of his arrival in Orlando, it’s looking more and more like a rally outside of CPAC.  Some people are unhappy to see the former president making a return to speak for the Republican Party, hoping he'd step back after a troubled final year in office. Others are excited to see his take on moving the party forward. 

Roger Stone will also be alongside supporters this weekend. After being convicted for making false statements, obstruction and witness tampering, Stone is ready to hear what the man who pardoned him will say to the crowds of conservatives.

“Well, from what I hear, I think he’s going to give an uplifting, big picture kind of visionary speech of how conservatives, free thinkers, Republicans, libertarians can take America back. That’s what I want to hear and that’s what I think he’s going to talk about,” Stone said. 

It's unknown what the former president's talking points will be this afternoon but toward the end of his term, Trump focused often on the most recent election results. That's a topic that many CPAC speakers have mostly avoided so far. 

Many are hoping to stand out on the political stage, with conservative eyes already looking ahead to the 2024 elections. Of the many who have already spoken include former presidential favorites and Trump administration veterans like former Secretary of State Mike Pompeo. 

"In the last few months, we've been called clowns, deplorables and ignorant rednecks, the evil resistance. The New York Times says I'm the worst Secretary of State of all time," Pompeo said. 

Several Florida lawmakers have also taken the stage this weekend. Governor Ron DeSantis, Rep. Matt Gaetz, and Sen. Rick Scott spoke on Friday. 

Senator Marco Rubio was absent from his speaking slot Saturday, citing family reasons.

Former President Trump's speech is scheduled to start at 3:45 p.m.

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3 Things to Watch in the Stock Market This Week - Motley Fool

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Stocks fell last week, as both the S&P 500 (SNPINDEX:^GSPC) and the Dow Jones Industrial Average (DJINDICES:^DJI) shed roughly 2%. The indexes are still in positive territory for the year, but gains are at less than 2% in 2021.

Earnings season continues in the week ahead, with several top stocks set to announce fresh operating results. We'll look at the metrics that could send shares of Costco (NASDAQ:COST), Target (NYSE:TGT), and Ambarella (NASDAQ:AMBA) moving over the next few trading days.

An engineer works on a chip.

Image source: Getty Images.

Costco's renewal rates

Investors are expecting plenty of good news in Costco's Thursday report, which covers the peak holiday shopping season. That's partly because the bulk retailer already signaled strong sales for the period by revealing double-digit gains for both December and January. It's also thanks to the positive results that Walmart recently announced, showing accelerating growth in late 2020.

Costco will probably beat its rival on the sales growth front this week, but investors will also be watching customer traffic, which has risen through most of the year as shoppers have consolidated their trips during the pandemic. The warehouse giant will also announce its latest renewal rate, the single best metric to describe the health of the business. Assuming that rate holds at near-record highs of 91%, Costco will be in a strong position to continue winning market share in 2021 while considering another annual membership-fee hike.

Target's margin outlook

Target has been another big winner from pandemic-related spending shifts, and that has shareholders feeling optimistic heading into Tuesday's earnings report. Its holiday-season update already showed market-thumping sales growth of 17% in November and December, but this week we'll find out if the chain was able to hold pricing high in premium categories like home furnishings. That, plus increased demand for same-day fulfilment, should allow Target to post one of the biggest profitability improvements in the industry for the full 2020 year.

TGT Operating Income (TTM) Chart

TGT Operating Income (TTM) data by YCharts.

Investors are questioning whether the good times can last into 2021, though, especially after Walmart predicted several years of elevated spending and rising costs ahead. Target's continued stock-price rally might depend on its ability to keep boosting operating margin even as it invests in the business.

Ambarella's growth forecast

It's time for Ambarella to start showing concrete signs of a rebound. The video tech producer's stock has soared in recent weeks, thanks to optimism about its new line of artificial intelligence platforms. Ambarella's sales base shrank in each of the last two quarters, in fact, but is predicted to return to modest growth in Tuesday's earnings report.

That success would mark just the first step in a growth rebound that might be propelled by surging demand for computer-vision chips and video processing hardware in areas like industrial automation and self-driving vehicles. Ambarella faces steep competition in these niches, though, and so the pressure is on its design engineers to continue creating compelling platforms.

Accelerating sales growth is the best way to show that these products are resonating with suppliers. And rising profitability should follow any demand uptick, leading to impressive earnings growth over time. But heading into this report, both of these core ingredients are missing from Ambarella's investing story.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Split-ticket districts dwindle as all politics becomes more national - NBC News

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WASHINGTON — The nationalization of our politics is now complete. Well, almost.

Daily Kos Elections completed its count of the 2020 presidential vote in all 435 congressional districts, and it found that Joe Biden carried 224 districts, while Donald Trump won 211.

That’s almost identical to the actual 222-213 partisan split in Congress that resulted after the 2020 congressional contests.

There were only 16 crossover districts in 2020 — nine Republicans hold districts that Biden carried last year, and seven Democrats represent districts that Trump won.

The other 419 congressional districts are represented by the party that won it in the presidential contest.

Those 16 crossover districts from the 2020 election are down from 35 in 2016 and 83 in 2008.

It’s just the latest data underscoring how polarized — and nationalized — our politics have become.

As we’ve pointed out before, only six states in the country now have split Senate representation, where a Democrat and a Republican both represent it in the U.S. Senate.

That’s down from 21 split states in 1993.

Bottom line: With just a few exceptions, what happens at the top of the ticket carries over to the bottom.

Meet the 16 crossover districts

Trump-Democratic congressional districts (7)

  • Maine 2 (Golden)
  • Pa. 8 (Cartwright)
  • N.J. 3 (Kim)
  • Mich. 8 (Slotkin)
  • Ill. 17 (Bustos)
  • Iowa 3 (Axne)
  • Wisc. 3 (Kind)

Biden-GOP congressional districts (9)

  • Pa. 1 (Fitzpatrick)
  • N.Y. 24 (Katko)
  • Fla. 27 (Salazar)
  • Texas 24 (Van Duyne)
  • Neb. 2 (Bacon)
  • Calif. 21 (Valadao)
  • Calif. 25 (Garcia)
  • Calif. 39 (Kim)
  • Calif. 48 (Steel)

Double standard? Or putting the guardrails back up?

Politico has a story that has Democrats charging that Neera Tanden is being held to a double standard — that Republicans (as well as Democrat Joe Manchin) are judging her past tweets by rules they didn’t apply for Donald Trump (or even former Trump Ambassador Ric Grenell, for that matter).

But writer Matt Lewis has a different take: It’s time to put the guardrails back up and hold people accountable for their actions — and their tweets.

Yes, Tanden is being held to a double standard that didn’t exist for Trump, Lewis writes.

But he argues that the alternative to that is no standards at all.

Tweet of the day

Data Download: The numbers you need to know today

28,282,645: The number of confirmed cases of coronavirus in the United States, per the most recent data from NBC News and health officials. (That’s 59,303 more than yesterday morning.)

502,493: The number of deaths in the United States from the virus so far, per the most recent data from NBC News. (That’s 1,401 more than yesterday morning.)

55,403: The number of people currently hospitalized with coronavirus in the United States.

345.6 million: The number of coronavirus tests that have been administered in the United States so far, according to researchers at The COVID Tracking Project.

64,177,474: Number of vaccine doses administered in the U.S.

19,438,495: People fully vaccinated in the U.S.

65: The number of days left for Biden to reach his 100-day vaccination goal.

Biden’s day

At 1:15 p.m. ET, President Biden conducts a roundtable discussion with Black essential workers. Beginning at 4:00 p.m. ET, Biden hold holds — remotely — a bilateral meeting with Canadian Prime Minister Justin Trudeau.

Joe and the Juice

West Virginia Sen. Joe Manchin is throwing his power around for the first time in an evenly split Senate.

On Friday, the Democratic senator announced he wouldn’t support President Biden’s nominee for OMB Director, Neera Tanden. Quickly, Sens. Susan Collins, Mitt Romney and Rob Portman followed suit. That all but guarantees Tanden will not be confirmed for Biden’s Cabinet – and that’s if she doesn’t withdraw her nomination before it comes to a vote.

Then on Monday, Manchin announced he was undecided on how he would vote for Interior Secretary nominee Rep. Deb Haaland, D-N.M. Haaland is set to appear before the Senate’s Energy and Natural Resources today — Manchin chairs the committee.

And the number of the week is … 135

Terminators, sumo wrestlers and porn stars? Our Number of the Week looks back at the wild California recall ballot in 2003. Give it a listen here.

ICYMI: What else is happening in the world

Wondering how the states are prioritizing vaccination groups — sometimes at odds with what the White House prefers? Alex Seitz-Wald takes a look.

Here’s what to expect from Deb Haaland’s confirmation hearing today.

Xavier Becerra will face tough questions in his confirmation hearings this week as well.

Merrick Garland says his first priority as AG will be investigating Jan 6.

What went wrong in the Capitol breach? A hearing today may shed some light.

A new Florida poll shows Gov. Ron DeSantis getting a lot of attention from Republicans in the state.

The Supreme Court has refused Trump’s last-ditch effort to keep his tax returns from Manhattan’s district attorney.

The Hill may be getting more diverse, but congressional staff remain overwhelmingly white.

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