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Stocks slide as US central bank signals slower pace of rate cuts

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US share prices slumped after the central bank cut interest rates for the third time in a row but its economic projections signalled a slower pace of cuts next year.
In a widely expected move, the Federal Reserve set its key lending rate in a target range of 4.25% to 4.5%.
That is down a full percentage point since September, when the bank started lowering borrowing costs, citing progress stabilising prices and a desire to head off economic weakening.
Reports since then indicate that the number of jobs being created has been more resilient than expected, while price rises have continued to bubble.
Stocks in the US fell sharply as Federal Reserve chairman Jerome Powell warned the situation would likely result in fewer rate cuts than expected next year.
“We are in a new phase of the process,” he said at a press conference.
“From this point forward, it’s appropriate to move cautiously and look for progress on inflation.”
The Dow Jones Industrial Average closed 2.58% lower, suffering its 10th session of declines in a row and marking its longest streak of daily losses since 1974.
The S&P 500 lost almost 3% and the Nasdaq Composite fell 3.6%.
In morning trade in Asia on Thursday, Japan’s Nikkei 225 was around 1.2% lower, while the Hang Seng in Hong Kong was down by 1.1%.
Inflation, which measures the pace of price increases, has proven stubborn in recent months, ticking up to 2.7% in the US in November.
Analysts have also warned that policies backed by president-elect Donald Trump, including plans for tax cuts and widespread import tariffs, could put upward pressure on prices.
Analysts say lowering borrowing costs risks adding to that pressure by making it easier to borrow and encouraging businesses and households to take on credit to spend.
If demand rises, higher prices typically follow.
Mr Powell defended the cut on Wednesday, pointing to cooling in the job market over the last two years.
But he conceded that the move was a “closer call” on this occasion and acknowledged there is some uncertainty as the White House changes hands.
Olu Sonola, head of US economic research at Fitch Ratings, said it felt like the Fed was signalling a “pause” to cuts as questions about White House policies make it more unsure about the path ahead.
“Growth is still good, the labour market is still healthy, but inflationary storms are gathering,” he said.

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The French winemaker whose wines are illegal in his home country

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Winemaker Maxime Chapoutier would be arrested if he tried to sell two of his newest wines in his native France.
“There would likely be outrage about these wines in France, and that would be a good thing,” he says. “Sometimes you need to be provocative to drive change.”
The two bottles in question, one white and one red, would be illegal in France because they are made from a blend of French and Australian base wines.
Under both French and European Union law it is forbidden to make a wine that combines EU and non-EU fruit. In France in particular, authorities take such things very seriously.
The French wine industry has a celebrated word called “terroir”, which applies to all the environmental factors that affect vines growing in a vineyard, such the soil, the climate, and the elevation. As a result, wines from a specific place are held in the highest esteem.
Add a strict appellation or classification system for France’s wine regions, and the thought of blending French and Australian wine to create a global hybrid would horrify many French wine lovers.
Yet Maxime has done just this, and it is all thanks to one word – Brexit.
For while he cannot sell the two wines in the EU, he can do so in the UK now that London no longer has to follow food and drink rules set by Brussels.

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Musk, MrBeast, Larry Ellison – Who might buy TikTok?

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Jimmy Donaldson – aka MrBeast – was jubilant as he told his tens of millions of TikTok followers about his bid to buy the platform.
“I might become you guys’ new CEO! I’m super excited!” Donaldson said from a private jet. He then proceeded to promise $10,000 to five random new followers.
The internet creator’s post has been viewed more than 73 million times since Monday. Donaldson said he could not share details about his bid, but promised: “Just know, it’s gonna be crazy.”
Donaldson is one of multiple suitors who have expressed interest in purchasing TikTok, the wildly popular social media platform that’s become the subject of a fast-moving political drama in the United States.
Last year, then-President Joe Biden signed a law that gave TikTok’s China-based parent company ByteDance until 19 January to sell the platform or face a ban in the United States.

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UnitedHealthcare names new boss after former CEO killed

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UnitedHealthcare has named a new boss almost two months after its then-chief executive Brian Thompson was shot and killed in New York.
Company veteran Tim Noel will take charge of the largest health insurer in the US, which has more than 50 million customers, at a critical moment.
Mr Thompson’s killing on 4 December in central Manhattan ignited a wide debate about how the US healthcare system operates.
Many Americans, who pay more for healthcare than people in any other country, have expressed anger over what they see as unfair treatment by insurance firms.
Mr Noel “brings unparalleled experience to this role with a proven track record and strong commitment to improving how health care works for consumers, physicians, employers, governments and our other partners,” UnitedHealthcare’s parent company UnitedHealth Group said.
A manhunt ensued for days as police worked to identify who was responsible in the December killing, which happened outside a Manhattan hotel where the CEO was staying.
After five days, Luigi Mangione, 26, was arrested in a McDonald’s restaurant in Pennsylvania after a worker called police.
Mr Mangione has pleaded not guilty to charges in the killing. He is facing 11 state criminal counts, including murder as an act of terrorism.
As well as the state-level charges, he is also accused of federal – national-level – stalking and murder offences that could lead to a death penalty sentence.
Prosecutors allege that Mr Mangione shot Mr Thompson before going on the run.

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