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Beto O’Rourke, wife underpaid two years of taxes, records show

Democratic presidential candidate Beto O’Rourke and his wife, Amy, appear to have underpaid their 2013 and 2014 taxes by more than $4,000 combined because of an error in the way they reported their medical expenses, according to tax returns the couple released Monday evening.

They took deductions for those costs without regard to the limit that only allowed that break for medical and dental expenses above 10% of income for people their age. Had they not taken the nearly $16,000 in medical deductions, their taxable income would have been higher. In those years it would likely have been subject to the rates they were paying under the alternative minimum tax.

BETO O'ROURKE CALLS ISRAELI LEADER NETANYAHU A 'RACIST'

“After becoming aware of this error, the accounting firm that prepared the filings was immediately informed and will file an amendment as appropriate,” an aide to Mr. O’Rourke said.

The tax year 2013 was the first that provided different income limits for the medical expense deduction, based on a taxpayer’s age. If a tax preparer didn’t enter the client’s age, the tax software he or she used defaulted to allowing the full deduction instead of no deduction, said Tony Nitti, a CPA at RubinBrown LLP who said he made the same mistake in those years. Mr. Nitti looked at the returns at the request of The Wall Street Journal.

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In those years, Mr. O’Rourke was a member of Congress from Texas.

To read more from The Wall Street Journal, click here

Source: Fox News Politics

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The Fall of The Democrats Is Here: Watch Them Eat Their Own

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Trump, Giuliani deny president tried obstructing Michael Cohen investigation

President Trump's attorney, Rudolph Giuliani, denied a New York Times report that Trump asked then-Acting Attorney General Matt Whitaker whether U.S. Attorney Geoffrey Berman, a presidential ally, could be put in charge of the investigation into alleged wrongdoing by Trump's onetime personal attorney Michael Cohen.

"The president said today he had no such conversation with the acting AG, and I believe Mr. Whitaker issued a statement to the same effect," Giuliani said in a statement late Tuesday. "The rest of the piece is just a regurgitation of previously refuted obstruction theories. They all fail as obstruction because as [Harvard Law] Professor [Alan] Dershowitz’s recent book and many other authorities make clear, all of the alleged actions were within the president’s sole discretion under Article II of the U.S. Constitution."

The Times report said that Whitaker told Trump that he could not put Berman in charge of the Cohen investigation because he had already recused himself from that matter. The paper claimed that Trump "soured" on Whitaker and "complained about his inability to pull levers at the Justice Department that could make the president’s many legal problems go away."

Trump denied the story at the White House Tuesday afternoon, referring to the Times report as "more fake news" and saying that he had a "very good" relationship with Whitaker, who was replaced last week by William Barr.

"I have a lot of respect for Mr. Whitaker. I think he's done a great job," Trump said. He said Whitaker was "a very fine man, and he should be given a lot of thanks by our nation."

Justice Department spokesperson Kerri Kupec referred to testimony Whitaker gave to the House Judiciary Committee earlier this month.

WHITAKER CALLS TIME ON DEM CHAIRMAN: 'YOUR 5 MINUTES IS UP'

"Under oath to the House Judiciary Committee, then-Acting Attorney General Whitaker stated that 'at no time has the White House asked for nor have I provided any promises or commitments concerning the special counsel's investigation or any other investigation,'" Kupec said. "Mr. Whitaker stands by his testimony."

Berman was named acting U.S. attorney for the Southern District of New York in January 2018 by the AG at that time, Jeff Sessions. Berman was appointed to the position indefinitely by the panel's judges three months later.

Prosecutors in the Southern District say Trump directed Cohen to make illegal hush-money payments to two women -- adult film star Stormy Daniels and former Playboy model Karen McDougal -- in order to keep them quiet about alleged sexual encounters with them dating back more than a decade and coming soon after he'd married his current wife, Melania. Cohen is scheduled to report to prison next month to begin a three-year sentence after pleading guilty this past August to campaign finance and other violations.

Cohen is also scheduled to appear before the House Intelligence Committee on Feb. 28. His attorney, Lanny Davis, has said that Cohen also plans to testify before the Senate Intelligence Committee and the House Oversight Committee before the end of this month. In November, Cohen pleaded guilty to lying under oath to the Senate Intelligence Committee as part of Special Counsel Robert Mueller’s ongoing investigation into alleged collusion between the Trump campaign and Russian officials.

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Fox News' John Roberts and Jake Gibson contributed to this report.

Click for more from The New York Times.

Source: Fox News Politics

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U.S. fourth-quarter GDP revised down; profits weak

FILE PHOTO: Technicians build LEAP engines for jetliners at a new, highly automated General Electric (GE) factory in Lafayette
FILE PHOTO: Technicians build LEAP engines for jetliners at a new, highly automated General Electric (GE) factory in Lafayette, Indiana, U.S. on March 29, 2017. REUTERS/Alwyn Scott/File Photo

March 28, 2019

WASHINGTON, (Reuters) – – The U.S. economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration’s 3 percent annual target, and corporate profits failed to rise for the first time in more than two years.

Gross domestic product increased at a 2.2 percent annualized rate, the Commerce Department said on Thursday in its third reading of fourth-quarter GDP growth. That was down from the 2.6 percent pace estimated in February.

The economy grew at a 3.4 percent pace in the third quarter. The expansion will be the longest on record in July.

The revisions to the fourth-quarter GDP reading reflected markdowns to consumer and business spending, as well as government outlays and investment in homebuilding.

For all of 2018, the economy grew 2.9 percent as previously reported, despite the White House’s fiscal stimulus of $1.5 trillion in tax cuts and more government spending. Growth last year was the strongest since 2015 and was an acceleration from the 2.2 percent logged in 2017.

Compared to the fourth quarter of 2017, the economy expanded 3.0 percent, revised down from the 3.1 percent reported last month. President Donald Trump has highlighted the year-on-year growth figure as proof that fiscal stimulus, which has contributed to a swelling of the federal government deficit, has put the economy on a sustainable path of strong growth.

Trump likes to showcase the economy as one of the biggest achievements of his term, declaring last July that his administration had “accomplished an economic turnaround of historic proportions.” On the campaign trail, Trump boasted he could boost annual GDP growth to 4 percent, a goal analysts always said was unrealistic given low productivity, among other factors.

Economists polled by Reuters had forecast GDP in the fourth quarter being revised down to a 2.4 percent.

There are signs the slowdown in growth persisted early in the first quarter, with retail sales rising modestly and manufacturing production and homebuilding tepid.

That was underscored by weak profits in the fourth quarter. After tax corporate profits were unchanged for the first time since the third quarter of 2016, after growing at a 3.5 percent rate in the third quarter. A profit measure that corresponds to S&P 500 profits fell $34.2 billion in the fourth quarter.

The economy is facing headwinds from the fading stimulus, slowing global growth, Washington’s trade war with China and uncertainty over Britain’s departure from the European Union.

These contributed to the Federal Reserve’s decision last week to bring its three-year campaign to tighten monetary policy to an abrupt end. The U.S. central bank abandoned projections for any interest rate hikes this year after increasing borrowing costs four times in 2018.

Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 2.5 percent rate in the fourth quarter instead of the previously reported 2.8 percent pace. Consumer spending remains underpinned by a strong labor market.

Growth in business spending on equipment was revised down to a 6.6 percent pace from a 6.7 percent rate. Investment in intellectual products was lowered to a 10.7 percent rate from the 13.1 percent pace reported in February.

Investment in residential construction was revised to show it contracting at 4.7 percent rate instead of at a 3.5 percent rate, marking the fourth straight quarterly decline.

Government investment fell at a 0.4 percent rate, instead of growing at a 0.4 percent pace as previously reported.

But exports were revised up to show them rising at a 1.8 percent pace instead of the 1.6 percent rate reported last month. Imports were revised down, leading to a smaller trade deficit that cut one-tenth of a percentage point from fourth-quarter GDP growth.

The trade deficit was previously estimated to have subtracted 0.22 percentage point from output. Inventories increased at a $96.8 billion rate in the fourth quarter instead of the $97.1 billion reported last month.

Inventory investment added one-tenth of percentage point to GDP growth last quarter as estimated last in February.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Source: OANN

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Rep. Matt Gaetz defends tweet suggesting Michael Cohen has 'girlfriends'

Florida Rep. Matt Gaetz defended a tweet he sent Tuesday about Michael Cohen, suggesting that President Trump’s former attorney had been unfaithful to his wife.

Tweeting directly at Cohen, the Republican congressman wrote: “Do your wife & father-in-law know about your girlfriends? Maybe tonight would be a good time for that chat. I wonder if she’ll remain faithful when you’re in prison. She’s about to learn a lot...”

When asked about his tweet by reporters on Tuesday, Gaetz insisted that his remarks were not witness tampering, according to The Hill.

"We’re witness testing not witness tampering," Gaetz explained. "And when witnesses come before Congress their truthfulness and veracity are in question and we have the opportunity to test them."

MICHAEL COHEN TESTIFIES BEHIND CLOSED DOORS ON CAPITOL HILL IN FIRST OF THREE HEARINGS

The lawmaker’s comment comes as Cohen appeared on Capitol Hill Tuesday for the first in a series of hearings this week.

His testimony Tuesday to the Senate Intelligence Committee took place behind closed doors. On Wednesday, he’ll testify before the House Oversight Committee in an open hearing. The following day, Cohen is set to appear behind closed doors for a House Intelligence Committee interview.

Cohen was sentenced in December to three years in prison after pleading guilty to campaign finance violations, tax evasion and lying to Congress. He agreed to cooperate with prosecutors as part of a deal.

Lanny J. Davis, who represents Cohen, slammed Gaetz’s tweet as a shameful lie and one that would not sit well with the Floridians whom the lawmaker represents.

MICHAEL COHEN, FORMER TRUMP ATTORNEY, GETS 3 YEARS IN PRISON FOR TAX FRAUD, CAMPAIGN FINANCE VIOLATIONS, LYING

"We will not respond to Mr. Gaetz’s despicable lies and personal smears, except to say we trust that his colleagues in the House, both Republicans and Democrats, will repudiate his words and his conduct,” Davis said in a statement to Fox News.

“I also trust that his constituents will not appreciate that their congressman has set a new low — which in today’s political culture is hard to imagine as possible,” he continued.

In addition to his tweet, Gaetz also addressed Cohen on the House floor on Tuesday night, painting him as a repeated liar.

“I guess tomorrow we will find out if there is anyone that Michael Cohen hasn’t lied to,” Gaetz said. “We already know he lied to Congress, we already know he lied to law enforcement, lied to the IRS, lied to three banks and he's going to prison for his lies. And so I guess it will be relevant for us to determine like, does he lie to his own family? Does he lie to his financier's? Does he lie to his financiers who are members of his family?”

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Gaetz, who is not a member of the oversight committee, also called Cohen’s credibility into question.

“And it’ll be one heck of an inquiry for us because this is someone who has tangled such a web of lies that he is not to be believed and I think it is entirely appropriate for any member of this body to challenge the truthfulness and veracity and character for the people who have a history of lying and have a future that undoubtedly contains nothing but lies,” Gaetz continued on the floor. “That is the story of Michael Cohen, we’ll see it play out tomorrow. And I, for one, can't wait to the get to the bottom of things, and can't wait to get to the truth.”

Fox News’ Chad Pergram, Mike Emanuel and Alex Pappas contributed to this report.

Source: Fox News Politics

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Democrats blast safety net cuts in Trump budget as ‘malicious’

First Phase of the President Trump's FY2020 Budget Proposal Released
The Government Publishing Office (GPO) and the Office of Management and Budget (OMB) release copies of the first phase of the president's FY2020 budget proposal in Washington, U.S., March 11, 2019. REUTERS/Erin Scott

March 12, 2019

By Susan Cornwell

WASHINGTON (Reuters) – Congressional Democrats attacked U.S. social safety net changes proposed by President Donald Trump in his 2020 budget plan, with a senior lawmaker on Tuesday saying Trump’s cutbacks in programs such as Medicaid and food aid were “intended to do harm”.

Trump’s budget is widely seen as a dead letter on Capitol Hill, where the Democratic-majority House of Representatives will kill it, but Trump’s proposals are likely to follow him into his 2020 presidential reelection campaign.

Some programs he pledged to protect when he was running in 2016 are singled out for cuts in his latest budget, including the Medicare healthcare program for the elderly and the Medicaid healthcare program for the poor and disabled, Democrats said.

The Democrats also denounced Trump’s proposed cutbacks in education, community development, student loans and free school meals for low-income students.

“These cuts in the Trump budget aren’t a tightening of the belt … They are extreme to a level that is malicious, a level that is intended to do harm,” said House Budget Committee Chairman John Yarmuth at a hearing on the budget plan.

Russell Vought, acting White House budget director, defended Trump’s plan, saying it represents an attempt to be fiscally responsible at a time of trillion-dollar budget deficits.

He said the president is requesting more spending cuts than any other president in history and he complained that Trump so far has been “blatantly ignored” by Congress.

In 2017, when Republicans still controlled both chambers of Congress, as well as the White House, they pushed through deep tax cuts, mainly for businesses, that were projected to add $1.5 trillion to the $20 trillion national debt over 10 years.

Trump called on Monday for spending more U.S. taxpayer money on the military and a U.S.-Mexico border wall, while spending less on social safety-net programs.

Vought told the committee that the president’s budget plan would save $517 billion in spending over 10 years in Medicare, a program that many Democrats want to expand.

The president’s proposal also includes work requirements for Medicaid recipients, and it would convert Medicaid to a state-administered program supported by federal block grants.

“Did President Trump acknowledge he was breaking a key campaign promise when he agreed to a budget that cuts Medicare?” demanded Democratic Representative Jan Schakowsky.

“The president doesn’t believe he is breaking his commitments to the American people at all,” Vought replied, saying the budget proposed not cuts, but reforms that would help lower drug prices, leading to Medicare savings.

Democratic Representative Ilhan Omar said 29,000 children in her state of Minnesota would lose access to free school meals if the administration’s plan to cut those meals became law.

“What this budget does is quite literally take food out of the mouths of children,” while increasing spending on defense, Omar said. “How is the assessment made what child deserves to eat and what child doesn’t?”

(Additional reporting by Roberta Rampton; editing by Kevin Drawbaugh and James Dalgleish)

Source: OANN

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Americans arrested in Haiti with weapons: media

A man rides a bike in front of a main Haitian police station, where a group of foreign nationals including Americans are detained after finding them armed with semi-automatic weapons after a week of anti-government protests in Port-au-Prince
A man rides a bike in front of a main Haitian police station, where according to local media a group of foreign nationals including Americans armed with semi-automatic weapons were detained, after anti-government protests, in Port-au-Prince, Haiti, February 18, 2019. REUTERS/Ivan Alvarado

February 18, 2019

PORT-AU-PRINCE (Reuters) – Haitian police arrested a group of foreign nationals including Americans armed with semi-automatic weapons, Haitian newspapers reported on Monday, adding to uncertainty in the poor Caribbean country after more than a week of anti-government protests.

Haitian newspaper Le Nouvelliste reported that seven foreigners and a Haitian were in the group that was picked up by the police on Sunday night. Police found rifles, pistols, drones and satellite phones in their vehicle, the paper said.

Other media said several of the men were U.S. citizens and one was Serbian.

Since Feb. 7, thousands of demonstrators have called for President Jovenel Moise to resign and for an independent probe into the whereabouts of funds from the PetroCaribe agreement, an alliance between Caribbean countries and OPEC member Venezuela.

(Reporting by Frank Jack Daniel; Editing by Tom Brown)

Source: OANN

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A Chinese woman adjusts a Chinese national flag next to U.S. national flags before a Strategic Dialogue expanded meeting, part of the U.S.-China Strategic and Economic Dialogue (S&ED) in Beijing
A Chinese woman adjusts a Chinese national flag next to U.S. national flags before a Strategic Dialogue expanded meeting, part of the U.S.-China Strategic and Economic Dialogue (S&ED) held at the Diaoyutai State Guesthouse in Beijing, July 10, 2014. REUTERS/Ng Han Guan/Pool (CHINA – Tags: POLITICS BUSINESS)

April 26, 2019

By April Joyner

NEW YORK (Reuters) – Even as the lift from optimism over prospects for U.S.-China trade detente shows signs of wearing off for the wider U.S. stock market, upbeat sentiment around China’s economy could bolster shares of materials companies.

Shares of S&P 500 industrial and technology companies, which were buffeted by last year’s tit-for-tat tariffs as well as slowing global demand, have been very responsive to progress in U.S.-China trade relations and a strengthening Chinese economy. This year, those sectors have outpaced the ascent in the S&P 500, which reached a record closing high on Tuesday.

Materials stocks have not been as sensitive, however, even though they also stand to benefit as a stronger Chinese economy lifts global consumption and industrial output. As China has taken measures to stimulate its economy, its economic data have turned more upbeat. That in turn could aid global growth, which has flagged as a result of China’s cooldown.

“What we’re seeing is China spending more on stimulus: fiscal stimulus and monetary stimulus,” said Kristina Hooper, chief global market strategist at Invesco in New York. “That’s likely to be a positive for materials.”

The People’s Bank of China has cut banks’ reserve requirement ratio five times over the past year and is widely expected to ease policy further to spur lending and reduce borrowing costs. The stimulus appears to have boosted Chinese economic data, with factory activity growing in March for the first time in four months.

Yet so far in 2019, the S&P 500 materials index has underperformed the S&P 500 at large, rising just 11.9% compared with 16.7% for the benchmark index. Moreover, it is among the biggest decliners in the period since the S&P’s previous record closing level on Sept. 20. The materials index has fallen 7% over those seven months, versus a 5.2% gain for technology and a 3% loss for industrials. Only the energy index has dropped more over that period.

A trade agreement could serve as a catalyst for a bump in materials shares as a drag on China’s economy is lifted, some market strategists say. Some commodity prices, including those for copper and oil, have ascended this year as the prospects for the global economy have somewhat brightened.

“It all goes back to the global growth outlook,” said Andrea DiCenso, portfolio manager for alpha strategies at Loomis Sayles in Boston. “With the front run in hard data, we’re beginning to see a pretty significant rally.”

Additionally, a trade agreement is expected to include commitments from China to purchase higher quantities of U.S. products such as soybeans, which could benefit companies that make agricultural chemicals, including DowDuPont Inc and CF Industries Holdings Inc.

CF Industries is scheduled to report quarterly results after the bell on Wednesday, and DowDuPont is scheduled to report before the market open on Thursday.

To be sure, even with a trade agreement, some materials companies could face price pressures. Shares of Freeport-McMoRan Inc fell 10.1% on Thursday after the copper mining company posted a lower-than-expected profit as its production slipped and its costs rose.

A rollback of tariffs on Chinese imports, particularly aluminum and steel, would likely prompt a fall in some commodity prices, which could hurt prospects for certain materials companies, said Gene Goldman, chief investment officer at Cetera Investment Management in El Segundo, California.

Even so, those drawbacks may be outweighed by the support for global demand fostered by a U.S.-China trade agreement.

“You could see a number of companies with lowered expectations bring them back up as they talk favorably about the impact that a trade deal would have on them,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

(Reporting by April Joyner; additional reporting by Sinéad Carew; editing by Jonathan Oatis)

Source: OANN

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Cyprus police on Friday widened their search for more victims of a suspected serial killer after the 35-year-old national guard captain told investigators he killed four more people that he previously admitted to on the small Mediterranean nation.

The count now has climbed to seven.

CYPRUS FEARS POSSIBLE SERIAL KILLER AFTER BODIES OF TWO WOMEN ARE DISCOVERED IN MINESHAFT

Authorities said they are focusing on a military firing range, a man-made lake and an abandoned mine about 20 miles west of the capital Nicosia.

Cypriot President Nicos Anastasiades expressed “deep sorrow and concern” at the slayings and said he shared the public’s revulsion at “murders that appear to have selectively targeted foreign women who are in our country to work.”

“Such instincts are contrary to our culture’s traditions and values,” he said in a statement from China, where he was on an official visit. He urged calm so police can complete their investigation.

The scale of the alleged crimes by a Cypriot National Guard captain has horrified the small nation of over a million people, where multiple killings are rare. Five British law enforcement officials — including a coroner, a psychiatrist and investigators who specialize in multiple homicides — have been dispatched to help with the investigation.

On Thursday, the 35-year-old suspect, who can’t yet be named because he hasn’t been formally charged, told investigators that he had killed four more people than he had previously admitted to. Police said the suspect will appear in court Saturday for another custody hearing.

Cypriot investigators and police officers search a flooded mineshaft where two female bodies were found, outside of Mitsero village, near the capital Nicosia, Cyprus, Monday, April 22, 2019. Police on the east Mediterranean island nation, along with the help of the fire service, are conducting the search Monday in the wake of last week's discovery of the bodies in the abandoned mineshaft and the disappearance of the six-year-old daughter of one of the victims. 

Cypriot investigators and police officers search a flooded mineshaft where two female bodies were found, outside of Mitsero village, near the capital Nicosia, Cyprus, Monday, April 22, 2019. Police on the east Mediterranean island nation, along with the help of the fire service, are conducting the search Monday in the wake of last week’s discovery of the bodies in the abandoned mineshaft and the disappearance of the six-year-old daughter of one of the victims.  (AP)

The victims — all foreigners— include Marry Rose Tiburcio, 38, from the Philippines, whose bound body was found April 14 in a flooded mineshaft. She and her six-year-old daughter had been missing since May of last year.

The girl remains missing and authorities believe she was also slain by the suspect. Divers have entered the reservoir to search for her but have not found her body yet.

CYPRUS: GROUND NOT YET READY FOR PEACE TALKS RESUMPTION 

Authorities tracked down the officer last week by scouring Tiburcio’s online messages.

Six days later, police discovered another body April 20 in the same mineshaft, identified by Cypriot media as 28-year-old Arian Palanas Lozano, also from the Philippines.

A third alleged victim, also of Filipino descent, is 31-year-old Maricar Valtez Arquiola, who had been missing since December 2017. The suspect initially denied killing Arquiola but reversed himself after a court hearing Thursday, a police official said.

The suspect on Thursday also pointed investigators to a military firing range, where they discovered another unidentified body, which according to the suspect belongs to a woman of either Nepalese or Indian descent.

SERIAL KILLER WHO MAY HAVE COMMITTED 90 MURDERS IS LINKED TO YET ANOTHER KILLING 

Cypriot police are also looking for a Romanian mother and daughter. Cypriot media identified them as Livia Florentina Bunea, 36, and eight-year-old Elena Natalia Bunea, who are believed to have been missing since September 2016.

The man-made lake remains off-limits to a manned search because of high levels of toxic heavy metals from the copper pyrite mine, Fire Service Chief Marcos Trangolas said, adding that authorities will use other means to scour the lake.

Chief of Cypriot police Zacharias Chrysostomou, center, walks with Cypriot investigators and police officers at a flooded mineshaft where two female bodies were found, outside of Mitsero village, near the capital Nicosia, Cyprus, Monday, April 22, 2019.

Chief of Cypriot police Zacharias Chrysostomou, center, walks with Cypriot investigators and police officers at a flooded mineshaft where two female bodies were found, outside of Mitsero village, near the capital Nicosia, Cyprus, Monday, April 22, 2019. (AP Photo/Petros Karadjias)

Cyprus police have faced criticism from immigrant activists who said they didn’t act fast enough to investigate the whereabouts of some of the victims, many of them domestic workers. The island nation has 80 unsolved missing persons cases, going back to 1990.

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Police chief Zacharias Chrysostomou said a three-member panel has been assigned to probe whether police followed all the correct protocol in recent missing persons cases.

According to the state-run Cyprus News Agency, an investigator had told the court at an earlier hearing that the suspect admitted to killing one woman he met online after having sex with her.

The Associated Press contributed to this report. 

Source: Fox News World

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Venezuelan opposition lawmaker Gilber Caro is seen delivering a speech at a forum on human rights in Caracas
Venezuelan opposition lawmaker Gilber Caro is seen delivering a speech at a forum on human rights in Caracas, Venezuela June 12, 2018 in this still image taken from a video. REUTERS TV/ via REUTERS

April 26, 2019

CARACAS (Reuters) – Venezuela’s opposition-run National Assembly said on Friday that opposition lawmaker Gilber Caro was detained, which it described in a Twitter post as a violation of diplomatic immunity.

Caro had previously spend a year and a half in jail, before being freed in June 2018. The arrest comes as Juan Guaido, the National Assembly’s leader, mounts a challenge to President Nicolas Maduro, arguing his 2018 re-election was illegitimate. Guaido in January invoked the country’s constitution to assume an interim presidency.

(Reporting by Caracas newsroom; Editing by Chizu Nomiyama)

Source: OANN

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FILE PHOTO: Customers shop in a Sainsbury's store in Redhill
FILE PHOTO: Customers shop in a Sainsbury’s store in Redhill, Britain, March 27, 2018. REUTERS/Peter Nicholls/File Photo

April 26, 2019

By James Davey

LONDON (Reuters) – With Sainsbury’s dream of creating Britain’s biggest supermarket group in tatters, its chastened CEO Mike Coupe needs to reassure investors he has the plan to arrest a sales decline when he presents annual results next week.

Britain’s competition regulator blocked Sainsbury’s 7.3 billion pound ($9.4 billion) takeover of Walmart’s Asda on Thursday, saying the deal would increase prices. Sainsbury’s shares fell 5 percent and are down 22 percent over the last three months.

For Sainsbury’s fourth quarter to March 9 analysts are on average forecasting a 1.6 percent fall in like-for-like sales, which would follow 1.1 percent decline over the Christmas period.

Monthly industry data from researcher Kantar has also shown Sainsbury’s as the weakest performer of the big four grocers this year and this month it lost its status as Britain’s No. 2 supermarket group by market share to Asda.

While Sainsbury’s has struggled, market leader Tesco has gained momentum, this month reporting a 34 percent jump in full year profit.

Prohibition of the deal was a major blow to Coupe, its architect and Sainsbury’s boss since 2014.

Martin Scicluna became Sainsbury’s chairman last month and when bedded-in may decide that if the group needs a major shake-up it is best carried out by a new leader.

Much will depend on the attitude of 22 percent shareholder the Qatar Investment Authority, which has so far declined to comment, as well as Coupe’s own appetite to continue after 15 years at the group.

THE RIGHT STRATEGY?

Coupe said on Thursday he was confident Sainsbury’s was pursuing the right strategy.

That was a clear indication that Wednesday’s results statement will not include radical changes to the group’s plans, such as a big margin reset — sacrificing profit to drive sales.

However, sources connected to Sainsbury’s said Coupe would likely acknowledge that more needs to be done on prices, so the supermarket business can better compete with its big four rivals – Tesco, Asda and No. 4 Morrisons – as well as German-owned discounters Aldi and Lidl.

Coupe’s strategy is based on differentiating Sainsbury’s food offer, growing its general merchandise, clothing business and bank, while investing in convenience and online channels.

Some analysts believe major change is needed.

HSBC analyst David McCarthy reckons Sainsbury’s needs a margin reset, should allocate more space for core lines and needs to drive better store standards. He said Sainsbury’s might consider closing down space in some of its larger stores and reducing its non-food offer.

For the full 2018-19 year analysts are on average forecasting a pretax profit of 626 million pounds, up from 589 million pounds in 2017-18 – a second straight year of profit growth. A full year dividend of 10.5 pence per share is forecast versus 10.2 pence last time.

Bank and lawyer fees related to the proposed combination with Asda were 17 million pounds in the first half and have reportedly jumped to around 50 million pounds.

(Reporting by James Davey; Editing by Keith Weir)

Source: OANN

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Arizona Gov. Doug Ducey rejected demands from a secular group to remove posts on social media where he sent Easter greetings and cited a Bible verse, offering to provide copies of the Constitution to his critics.

Ducey, who’s a practicing Catholic, has been bombarded with calls from Secular Communities for Arizona to remove the post, which included a cross, a Bible verse, and the phrase, “He is risen.”

ARIZONA’S GOP GOVERNOR WAGING WAR AGAINST OCCUPATIONAL LICENSING LAWS

The group argued the posts crossed a line into government sponsorship of religious messages and was unconstitutional.

The governor fired back at the group, saying in a tweet that he will never remove the posts or other religious ones.

“We won’t be removing this post. Ever. Nor will we be removing our posts for Christmas, Hanukkah, Rosh Hashanah, Palm Sunday, Passover or any other religious holiday,” he tweeted. “We support the First Amendment, and are happy to provide copies of the Constitution to anyone who hasn’t read it.”

Dianne Post, an attorney for the secular group, told the Arizona Republic “elected officials should not use their government position and government property to promote their religious views.”

LICENSE REQUIRED TO REPAIR DOORS? REGS SPARK HEATED DEBATE IN ARIZONA

She added the courts have repeatedly “struck down symbolism that unites government with religion,” adding that Ducey’s office must “represent and protect the rights of all residents of Arizona, including those who do not believe in a monotheistic God or any gods at all.”

Many congratulated Ducey for not backing down amid the pressure, though some Facebook users sided with the secular group and criticized the governor on his original post.

“Why do you use a government platform to bring up your personal religion?” asked one person. “Are there no citizens in your jurisdiction that believe differently from you?”

Another stipulated that the post was somewhat discriminatory. “Great sensitivity, Doug. That’s the last time this Jew votes for you,” one person wrote.

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Ducey wished in a statement Arizonans last week a “blessed and joyful Easter and Passover weekend.”

The Associated Press contributed to this report.

Source: Fox News Politics

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