Welcome to The Free Press Report’s Weekly Digest. This week a lot has happened – bird flu is ruining Thanksgiving, American banks are under attack from Russian hackers, and Bibi returns the right wing to power in Israel. Read on for more of the stories you might have missed.
Market Recap
U.S. Politics
Review finds “#MeToo hero” ignored sexual harrasment accusations. Tina Kotek was Oregon House Speaker from Jan 2013 to Jan 2022. During that time, she presented herself as a “protector of women’s rights.” But complaints and lawsuits claim she ignored accusations of sexual misconduct against fellow lawmakers. For example, Kotek allegedly stood by while a senior lawmaker groped interns. It was further revealed that Kotek made notes on an incident in which a state representative told a female employee to “get ready for a birthday spanking,” but did nothing to intervene. Oregon's labor commissioner found that Kotek was responsible for a "sexually hostile environment in the Capitol." Kotek is currently running as the Democrat contender in Oregon’s gubernatorial race. [WFB]
Biden allows oil reserves to shrink to lowest level since 1980s. In an attempt to lower gasoline prices, Biden planned to release 180 million barrels from the Strategic Petroleum Reserve. That leaves the reserves, which are stored underground in Texas and the Louisiana Gulf Coast, with just 402 million barrels. [Axios]
Social & Business
Avian flu sparks Turkey shortage looms. As Thanksgiving approaches, America has run short of big birds. Over 8 million turkeys have been killed by the disease, and many of the surviving turkeys will not have time to grow to full size before festivities begin. Turkey prices have risen 28% from last year – clearly one of the driving factors of inflation. U.S. Secretary of Agriculture Tom Vilsack, who has a personal fortune of $4 million, warned that finding 20 pound turkeys could be “challenging.” [Axios]
Fed raises interest rates by 75 bps, as expected. The Fed funds rate range is now 3.75% to 4%, the highest in 15 years. Markets sunk on the news that there may be sharper than expected rate hikes coming next year. Fed chair Jerome Powell said "It's premature to discuss pausing [interest rate increases]. It's not something that we're thinking about and that's really not a conversation to be had now,” suggesting that inflation may persist longer than investors were hoping. [Axios]
Banks spent $1.2 billion on ransomware payments in 2021, new Treasury Department report finds, more than double the value from 2020. 1,489 ransomware incidents were reported, almost triple the number from 2020. The Financial Crimes Enforcement Network described the cyber attacks – most of which originate in Russia – as a “significant threat to U.S. critical infrastructure sectors, businesses and the public.” [BBG]
“Bad and Boujee” rapper Takeoff shot dead. Kirshnik Khari Ball, known by his stage name Takeoff and famous for his work with hip hop group Migos, was killed in Houston while attending a private birthday party. Authorities say there was an argument outside the function, and at least two guns were involved in the shooting. [Axios]
Former boxer charged with cocaine trafficking. Goran Gogic, a former heavyweight boxer, was arrested at Miami International Airport while attempting to fly to Switzerland. He is accused of helping to smuggle 22 tons of cocaine, worth $1.2 billion, through U.S ports. He faces three counts of violating the federal Maritime Drug Law Enforcement Act, plus one count of conspiracy. The drug enforcement charges carry a sentence between 10-year minimum and life imprisonment. Gogic’s lawyer says the charges “came as a surprise to him.” [CNBC]
World View
North Korean military flights detected near border. South Korea reported 180 flights by North Korea’s air force to the north of the “tactical action line” in a period of 4 hours. In response, South Korea scrambled 80 aircraft including F-35A stealth fighters, and continued participation in the Vigilant Storm joint exercises with U.S forces. [Reuters]
Netanyahu returns to power in Israel. The former President won Israel’s fifth election in less than four years, returning his right-wing alliance to government. Itamar Ben-Gvir of the far-right Religious Zionism party which is likely to ally with Netanyahu, tweeted "the time has come to impose order here. The time has come for there to be a landlord." [Reuters]
Chinese markets soar on lockdown easing hopes. Long after the Western world returned to relative freedom, China has continued to impose draconian lockdown measures. This week, reports fed hope that the rules would be rolled back soon. The Hang Seng stock index rose 5.3% to enjoy its best week since 2011, and the Chinese Yen soared. [Reuters]
Crypto
HBO announces “Game of Thrones” NTF collection. Despite a sharp market downturn, some big companies are still looking to non-fungible tokens as in inroad to crypto markets. This week, Warner Bros Discovery announced a partnership with NFT platform Nifty to sell a collection of NFTs based on the hit TV show. [TC]