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BlackRock’s Larry Fink overhauls leadership ranks in key business units

FILE PHOTO: Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York
FILE PHOTO: Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York, U.S., September 26, 2018. REUTERS/Shannon Stapleton/File Photo

April 2, 2019

By Trevor Hunnicutt

NEW YORK (Reuters) – BlackRock Inc, the world’s largest asset manager, has made changes to its senior leadership ranks aimed at winning more business from top institutional clients and boosting growth of its alternative investing business, according to a memo seen by Reuters on Tuesday.

BlackRock, with more than $6 trillion in assets under management, is giving primary responsibility for those institutional clients to executives in local regions.

It is also putting Edwin Conway in charge of BlackRock Alternative Investors, a group of complex investment products that Chief Executive Larry Fink thinks can amp up the company’s profits.

BlackRock, known best for funds that track the stock and bond markets, has been putting more emphasis on so-called illiquid alternative investments, complex investments including private equity and real estate that typically come with higher fees and are more likely to be sold to an institution than a mom-and-pop investor.

Conway, previously head of Blackrock’s institutional client business, will succeed David Blumer, who is becoming an adviser. The alternative group’s chairman is Mark Wiseman, one of several people tipped as Fink’s possible successors .

As part of the changes, Mark McCombe, another potential Fink successor, takes on a new role as chief client officer to work with global clients, including governments, financial companies and investment consultants that steer money from big clients, such as pension funds. Rob Fairbairn, who is already responsible for some top clients, becomes a vice chairman.

Fink, one of BlackRock’s founders in 1988, has neither signaled any intention to leave nor publicly named a successor. He told analysts last year that he thinks the alternative investments business can be a source of major growth for the company.

Asset managers have been squeezed by rising competition and pressure to reduce fees, and in recent months many have been cutting jobs and costs. Even BlackRock, which has benefited by offering low-cost exchange-traded funds, announced layoffs in January. At the time Fink pledged to continue investing in what he sees as growth opportunities.

The changes “show our commitment to constant reinvention and to the ongoing development of our senior leaders,” Fink and BlackRock President Rob Kapito wrote in the memo. “They are also designed to reinvigorate our approach at every level of the firm – and with every employee – at a critical time.”

Other changes announced on Tuesday included naming a new head of its Latin American business and corporate strategy. BlackRock elevated a new chief product officer, Patrick Olson, to a role that had been unfilled. Richard Prager, who runs the company’s trading and its lucrative operations lending out stocks, will retire. And Rick Rieder, a top BlackRock investor and global chief investment officer of fixed income, will be leading a “Global Allocation” team that picks investments across stocks, bonds and commodities.

(Reporting by Trevor Hunnicutt; Editing by Jennifer Ablan)

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California fire department reminds you not to park in front of hydrants

Fire officials in California reminded drivers on Tuesday that vehicles parked front of a fire hydrant during an emergency are likely to feel a permanent breeze.

The Anaheim Fire & Rescue Department had responded to a residential fire when they found a vehicle parked too close to a hydrant. The department later tweeted photos of a hose running through the smashed-out back passenger windows of the car, which was parked along a curb painted a stark red.

“Ever wonder what happens when a car is parked in front of a fire hydrant and a fire breaks out?” the tweet reads. “Is a closer parking spot worth the broken windows and the citation and towing fees to @AnaheimPD?”

The Anaheim police department, who also responded to the fire, tweeted that they had to run the hose line through the vehicle’s rear windows in order to battle the blaze.

As to why firefighters couldn’t run the hose under or over the car, the department tweeted, “It doesn’t fit underneath and the damage caused by throwing it on top is likely more than the cost of two windows.”

Source: Fox News National

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Mexico president asks Spain, Pope to apologize for conquest

Mexico's president has asked Spain and the Vatican to apologize for the conquest of the Americas.

Andres Manuel Lopez Obrador says he sent a letter to King Felipe VI of Spain and Pope Francis over what he called an "invasion" and the "many misdeeds that were committed."

Lopez Obrador says there were "killings, impositions," and "the so-called conquest was carried out with the sword and the cross." He asks for an apology to "the original peoples for the violations of what are now known to be human rights."

The Spanish government issued a statement later Monday regretting that the March 1 letter had been made public and rejecting its content "with all firmness."

It said deeds from 500 years ago "cannot be judged in the light of contemporary considerations."

Source: Fox News World

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China needs tax cuts to relieve pressure on economy: vice premier

A man cycles outside the construction sites in Beijing's central business area
FILE PHOTO: A man cycles outside the construction sites in Beijing's central business area, China January 18, 2019. REUTERS/Jason Lee

February 19, 2019

SHANGHAI (Reuters) – China’s decision to cut company taxes and fees is an important part of fiscal policy and is a hard-hitting measure needed to cope with pressure on the economy, state media reported Vice Premier Han Zheng as saying.

He made the comments on Tuesday during a visit to the State Administration of Taxation, the official People’s Daily newspaper reported.

Officials have pledged more aggressive reductions in 2019, after cutting about 1.3 trillion yuan ($192.82 billion) in taxes and fees last year.

Some analysts expect the changes will be announced during the annual session of parliament in early March, along with other measures to boost economic growth and ease financial strains on struggling companies.

“It is necessary to implement the tax and fee reduction policies so that companies and the people can have a real sense of gain,” Han said.

Chinese authorities plan to set a lower economic growth target of 6 to 6.5 percent in 2019, sources have told Reuters, as weakening domestic demand and a damaging trade war with the United States drag on business activity and consumer confidence.

China’s economy grew by 6.6. percent in 2018, the slowest annual pace since 1990.

(Reporting by Brenda Goh; Editing by Kim Coghill)

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Hip injury forces Halep to pull out of Stuttgart Open

Fed Cup - World Group Semi-Final - France v Romania
FILE PHOTO: Tennis - Fed Cup - World Group Semi-Final - France v Romania - Kindarena, Rouen, France - April 21, 2019 Romania's Simona Halep in action during her match against France's Caroline Garcia REUTERS/Charles Platiau

April 23, 2019

(Reuters) – World number two Simona Halep said she has been forced to withdraw from the Porsche Tennis Grand Prix in Stuttgart after suffering a hip injury in the Fed Cup over the weekend.

Halep sustained the injury in the Fed Cup semi-finals when she beat France’s Caroline Garcia on Sunday. The win was in vain as France won the tie and advanced to the final.

“It was against Garcia in the first set, when I fell down,” Halep told reporters on Tuesday. “I felt pain in the hip. If I’m not 100 percent I don’t want to step on the court.

“I’m also exhausted mentally because I gave my everything in that tie but unfortunately we couldn’t win. That’s why I decided to pull out, because I have to think about my health first.

“It feels bad because I gave everything, I really wanted to win the Fed Cup. I’ve been very sad the last two days, I just need to recover mentally and physically and then just start again.”

Halep’s withdrawal means she will now rely on next month’s clay court tournaments in Madrid and Rome to prepare for her defense of the French Open title.

Meanwhile, Spain’s Garbine Muguruza, the 2016 French Open champion, also pulled out through illness. As a result of the withdrawals, Germany’s Angelique Kerber moved into the position of the second seed to get a bye to the second round.

Belarusian Victoria Azarenka will now play Russia’s Vera Zvonareva while Croatia’s Donna Vekic takes on Italy’s Giulia Gatto-Monticone.

(Reporting by Rohith Nair in Bengaluru; Editing by Christian Radnedge)

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Tijuana ranked as the most violent city in the world, top 5 located in Mexico, report says

The most violent city in the world is apparently right along the southern border of the United States.

The border city of Tijuana was ranked the most violent city in the world last year -- and was one of four cities in Mexico to make the list's top five, according to a newly released report.

The Mexican nonprofit group Citizens’ Council for Public Security and Criminal Justice compiled the report based on using the average number of homicides per 100,000 residents in 2018.

Tijuana topped the list with 138 killings per 100,000 Tijuana residents, averaging about seven per day, the report said. The border city is where local gangs have been battling over a "lucrative domestic drug market," according to the Los Angeles Times, which first reported on the findings.

MEXICAN PRESIDENT PROMISES NOT TO SEEK RE-ELECTION

After Tijuana, the beach resort of Acapulco was ranked second with 111 killings per 100,000 residents.

Ciudad Juarez, Mexico was among the top 5 ranking in the most dangerous cities in the world in a new report by a nonprofit group.

Ciudad Juarez, Mexico was among the top 5 ranking in the most dangerous cities in the world in a new report by a nonprofit group. (REUTERS/Jose Luis Gonzalez)

The capital of Venezuela came in third, with 100 killings per 100,000 people in 2018. Caracas is in the middle of a crisis fueled by a political struggle amid hyperinflation and a scarcity of medicine and other necessities that the opposition blames on the administration's socialist policies.

More than 3 million Venezuelans have fled the country in recent years, about one-third of them finding refuge in Colombia.  Colombian authorities said Monday that about 1,000 members of the Venezuelan security forces have also fled.

NEARLY 300 ILLEGAL IMMIGRANTS ARRESTED IN A MATTER OF HOURS AFTER CROSSING US-MEXICO BORDER IN TEXAS

Rounding out the top five most dangerous cities in the report were two locations in northern Mexico: Ciudad Victoria in Tamaulipas and Ciudad Juarez in Chihuahua. There were 86 killings and 85 murders per 100,000 people in those locations, respectively.

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In total, there were 15 Mexican cities on the list of 50, more than any other country in the world, according to the Times. That number has risen from 5 cities making the list in 2015.

The report also noted how Mexico has replaced Brazil by having the largest amount of dangerous cities in the world, despite having a smaller population.

The Associated Press contributed to this report.

Source: Fox News World

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Texas couple get 7 years in prison each for enslaving African girl, to be deported

A suburban Fort Worth couple has been sentenced to seven years in federal prison each for enslaving a Guinean woman for 16 years.

A federal judge in Fort Worth, Texas, sentenced Mohamed Touré and Denise Cros-Touré each to two seven-year terms and one five-year term, all sentences to be served concurrently. The 58-year-old Southlake, Texas, couple must also serve three years of supervised release upon completion of their prison terms and pay their victim $288,000 in restitution. They also will be deported to Guinea.

ILLEGAL IMMIGRANT ARRESTED, ACCUSED OF MORE THAN 100 CHILD SEX CRIMES: REPORTS

The couple and defense attorneys are exploring an appeal, said Scott Palmer, attorney for Cros-Touré.

Trial evidence showed the Tourés brought the girl, then aged at least 5 years but perhaps as old as 13, from her rural Guinean village in 2000. They forced her to work without pay in their home as a housekeeper, cook and nanny until she fled and alerted authorities.

The Tourés are the son and daughter-in-law of the late Guinean President Ahmed Sekou Touré, who helped lead Guinea to independence from French rule in 1958. Sekou Toure was the country's first president, a role he held until his death in 1984.

The Tourés were convicted in January, and prosecutors had sought the full 20-year prison sentences allowed by law. However, U.S. District Judge Reed O'Conner tempered the sentence request.

NXIVM MEMBER ADMITS TO ENSLAVING WOMAN IN A LOCKED ROOM FOR 2 YEARS

"Forced labor trafficking cases are notoriously difficult to prosecute — in part because victims are often afraid to speak out," said U.S. Attorney Erin Nealy Cox. "It took tremendous courage for this young woman to share her story at trial."

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However, Palmer said the judge's decision to temper the sentence suggests the trial judge did not believe the pair were as evil as portrayed by prosecutors.

"I think he saw through the exaggerations and lies of the prosecution," he said.

Source: Fox News National

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Park Yoo-chun, a K-pop idol singer, arrives at the Suwon district court in Suwon
Park Yoo-chun, a K-pop idol singer, arrives at the Suwon district court in Suwon, South Korea, April 26, 2019. REUTERS/Kim Hong-Ji

April 26, 2019

SEOUL (Reuters) – K-pop and drama star Park Yu-chun was arrested on Friday on charges of buying and using illegal drugs, a court said, the latest in a series of scandals to hit the South Korean entertainment business.

Suwon District Court approved the arrest warrant for Park, 32, due to concerns over possible destruction of evidence and flight risk, a court spokesman told Reuters.

Park is suspected of having bought about 1.5 grams of methamphetamine with his former girlfriend earlier this year and using the drug around five times, an official at the Gyeonggi Nambu Provincial Police Agency said.

Park has denied wrongdoing, saying he had never taken drugs, and he again denied the charges in court, Yonhap news agency said.

Park’s contract with his management agency had been canceled and he would leave the entertainment industry, Park’s management agency, C-JeS Entertainment, said on Wednesday.

Park was a member of boyband TVXQ between 2003 and 2009 before leaving the group with two other members, forming the group JYJ.

A scandal involving sex tapes, prostitutes and secret chat about rape led at least four other K-pop stars to quit the industry earlier this year.

The cases sparked a nationwide drugs bust and investigations into tax evasion and police collusion at night clubs and other nightlife spots.

(Reporting by Joyce Lee; Additional reporting by Heekyong Yang; Editing by Nick Macfie)

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FILE PHOTO: An American Airlines Boeing 737 MAX 8 flight taxis after landing at Reagan National Airport in Washington
FILE PHOTO: An American Airlines Boeing 737 MAX 8 flight from Los Angeles taxis after landing at Reagan National Airport shortly after an announcement was made by the FAA that the planes were being grounded by the United States over safety issues in Washington, U.S. March 13, 2019. REUTERS/Joshua Roberts/File Photo

April 26, 2019

(Reuters) – American Airlines Group Inc cut its 2019 profit forecast on Friday, saying it expected to take a $350 million hit from the grounding of Boeing’s 737 MAX planes after cancelling 1,200 flights in the first quarter.

The company said it now expects its 2019 adjusted profit to be between $4.00 per share and $6.00 per share.

Analysts on average had expected 2019 earnings of $5.63 per share, according to Refinitiv data.

The No. 1 U.S. airline by passenger traffic said net income rose to $185 million, or 41 cents per share, in the first quarter ended March 31, from $159 million, or 34 cents per share, a year earlier.

Total operating revenue rose 2 percent to $10.58 billion.

(Reporting by Sanjana Shivdas in Bengaluru)

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2020 Democratic presidential candidate Pete Buttigieg speaks at a campaign event in Des Moines, Iowa
2020 Democratic presidential candidate Pete Buttigieg speaks at a campaign event in Des Moines, Iowa, U.S., April 16, 2019. REUTERS/Elijah Nouvelage

April 26, 2019

By James Oliphant

MARSHALLTOWN, Iowa (Reuters) – Four years ago, Donald Trump campaigned in small towns like Marshalltown, Iowa, vowing to restore economic prosperity to the U.S. heartland.

In his bid to replace Trump in the White House, Pete Buttigieg is taking a similar tack. The difference, he says, is that he can point to a model of success: South Bend, Indiana, the revitalized city where he has been mayor since 2012.

The Democratic presidential contender has vaulted to the congested field’s top tier in recent weeks, drawing media and donor attention for his youth, history-making status as the first openly gay major presidential candidate and a resume that includes military service in Afghanistan.

But Buttigieg’s main argument for his candidacy is that he is a turnaround artist in the mold of Trump, although the Democrat does not expressly invoke the comparison with the Republican president.

“I’m not going around saying we’ve fixed every problem we’ve got,” Buttigieg, 37, said after a house party with voters in Marshalltown. “But I’m proud of what we have done together, and I think it’s a very powerful story.”

Critics argue improving the fortunes of a Midwestern city of 100,000 people does not qualify Buttigieg, who has never held national office, for the presidency of a country of 330 million. Others say South Bend still has pockets of despair and that minorities, in particular, have failed to benefit from its growth.

Buttigieg has told crowds in Iowa and elsewhere that his experience in reviving a struggling Rust Belt community allows him to make a case to voters that other Democratic candidates cannot. That may give him the means to win back some of the disaffected Democratic voters who turned their backs on Hillary Clinton in 2016 to vote for Trump.

Watching Buttigieg at a union hall in Des Moines last week, Rick Ryan, 45, a member of the United Steelworkers, lamented how many of his fellow union workers voted for Trump. The president turned in the best performance by a Republican among union households since Ronald Reagan in 1984.

Ryan said he hoped someone like Buttigieg could return them to the Democratic fold.

“He’s aware of the decline in the labor force in America, not just in Indiana or Des Moines or anywhere else,” Ryan said. “Jobs are going overseas. We need a find to way to bring that back.”

Randy Tucker, 56, of Pleasant Hill, Iowa, a member of the International Brotherhood of Electrical Workers, said Trump appealed to union members “desperate for somebody to reach out to them, to help them, to listen to their voice.”

Buttigieg could do the same, he said. “In my heart right now, he’s No. 1.”

PAST VS. FUTURE

Buttigieg stresses a key difference in his and Trump’s approaches.

Trump, he tells crowds, is mired in the past, promising to rebuild the 20th century industrial economy. Buttigieg argues the pledge is misleading and unrealistic.

Buttigieg says his focus is on the future, and he often talks about what the country might look like decades from now.

“The only way that we can cultivate what makes America great is to look to the future and not be afraid of it,” Buttigieg said in Marshalltown.

Buttigieg knows his sexual preference may be a barrier to winning some blue-collar voters. But he notes that after he came out as gay in 2015, he won a second term as mayor with 80 percent of the vote in conservative Indiana.

Earlier this month, he announced his presidential bid at the hulking plant in South Bend that stopped making Studebaker autos more than 50 years ago. After lying dormant for decades, the building is being transformed into a high-tech hub after Buttigieg and other city leaders realized it would never again attract a large-scale industrial company.

“That building sat as a powerful reminder. We hoped we would get back that major employer that would fix our economy,” said Jeff Rea, president of the regional Chamber of Commerce.

Buttigieg is praised locally for spurring more than $100 million in downtown investment. During his two terms, unemployment has fallen to 4.1 percent from 11.8 percent.

But a study released in 2017 by the nonprofit group Prosperity Now said not all of the city’s residents had shared in its rebound. The median income for African-Americans remained half that of whites, while the unemployment rate for blacks was double.

Regina Williams-Preston, a city councilor running to replace Buttigieg as mayor, credits him for the revitalized downtown. But she said he had a “blind spot” when it came to focusing on troubled neighborhoods like the one she represents and only grew more engaged after community pressure.

“He understands it now,” she said. “The next step is figuring out how to open the doors of opportunity for everyone.”

‘ONE OF US’

Trump touts the fact that the United States added almost 300,000 manufacturing jobs last year as evidence he made good on his promise to restore the industrial sector. But that growth still left the country with fewer manufacturing jobs than in 2008.

The robust U.S. economy is likely the president’s greatest asset in his re-election bid, particularly in states he carried in 2016 such as Iowa, Wisconsin, Michigan and Pennsylvania. He won Buttigieg’s home state by 19 points over Clinton in 2016.

Sean Bagniewski, chairman of the Democratic Party in Polk County, Iowa, said Buttigieg would be well positioned to compete with Trump in the Midwest.

“People love the fact that he’s a mayor,” said Bagniewski, who has not endorsed a candidate in the nominating contest. “If you can talk about a positive future, and if you actually have experience that can do it, that’s a compelling vision in Iowa.”

Nan Whaley, the mayor of Dayton, Ohio, which faces many of the same challenges as South Bend, agreed.

“He’s one of us,” Whaley said. “That helps.”

(Reporting by James Oliphant; Editing by Colleen Jenkins and Peter Cooney)

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A man looks out at a flooded residential area in Gatineau
A man looks out at a flooded residential area in Gatineau, Quebec, Canada, April 24, 2019. REUTERS/Chris Wattie

April 26, 2019

MONTREAL/OTTAWA (Reuters) – Rising waters were prompting further evacuations in central Canada on Thursday, with the mayor of the country’s capital, Ottawa, declaring a state of emergency and Quebec authorities warning that a hydroelectric dam was at risk of breaking.

Ottawa Mayor Jim Watson declared the emergency in response to rising water levels along the Ottawa River and weather forecasts that called for significant rainfall on Friday.

In a statement on Twitter, Watson asked for help from the Ontario provincial government and the country’s military.

He warned that “flood levels are currently forecasted to exceed the levels that caused significant damage to numerous properties in the city of Ottawa in 2017.”

Spring flooding had killed one person and forced more than 900 people from their homes in Canada’s Quebec province as of 1 p.m. on Thursday, according to a government website.

Ottawa has received 80 requests for service related to potential flooding such as sandbagging, a city spokeswoman said.

The prospect of more rain over the next 24 to 48 hours triggered concerns on Thursday that the hydroelectric dam at Bell Falls in the western part of Quebec could be at risk of failing because of rising water levels.

Quebec’s provincial police said 250 people were protectively removed from homes in the area as of late afternoon in case the dam on the Rouge River breaks.

The dam is now at its full flow capacity of 980 cubic meters per second of water, said Francis Labbé, a spokesman for the province’s state-owned utility, Hydro Quebec. He said Hydro Quebec expected the flow could rise to 1,200 cubic meters per second of water over the next two days.

“We have to take the worst-case scenario into consideration, since we`re already at the maximum capacity,” Labbé said by phone.

The dam is part of a power station that no longer produces electricity, but is regularly inspected by Hydro Quebec, he said.

(Reporting by Allison Lampert in Montreal and David Ljunggren and Julie Gordon in Ottawa; Editing by James Dalgleish and Peter Cooney)

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FILE PHOTO: Funeral of journalist Lyra McKee in Belfast
FILE PHOTO: Pallbearers carry the coffin of journalist Lyra McKee at her funeral at St. Anne’s Cathedral in Belfast, Northern Ireland, April 24, 2019. REUTERS/Clodagh Kilcoyne/File Photo

April 26, 2019

BELFAST (Reuters) – Detectives investigating the murder of journalist Lyra McKee in Northern Ireland last week suspect the gunman who shot her dead is in his late teens as they made a further appeal to the local community who they believe know his identity.

McKee’s killing by an Irish nationalist militant during a riot in Londonderry has sparked outrage in the province where a 1998 peace deal mostly ended three decades of sectarian violence that cost the lives of some 3,600 people.

The New IRA, one of a small number of groups that oppose the peace accord, has said one of its members shot the 29-year-old reporter dead in the Creggan area of the city on Thursday when opening fire on police during a riot McKee was watching.

The killing, which followed a large car bomb in Londonderry in January that police also blamed on the New IRA, has raised fears that small marginalized militant groups are exploiting a political vacuum in the province and tensions caused by Britain’s decision to leave the European Union.

Police released footage on Friday of immediately before and after the shooting showing three men who were involved in the rioting and identified one as the gunman who they believe is in his late teens. 

“I believe that the information that can help us to bring those responsible for her murder to justice lies within the community. I need the public to tell me who he is,” Detective Superintendent Jason Murphy told reporters.

Murphy said those involved in the disorder on the night were teenagers or in their early 20s, and that about 100 people were on the ground watching the trouble as it unfolded.

He added that police believed the gun used in the attack was of a similar caliber to those used before in paramilitary type attacks in Creggan. 

“I recognize that people living in Creagan may find it’s difficult to come forward to speak to police. Today, I want to provide a personal reassurance that we are able to deal with those issues sensitively,” Murphy said, echoing similar appeals in recent days.

(Reporting by Amanda Ferguson, editing by Padraic Halpin and Toby Chopra)

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