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China mourns former leader Jiang Zemin with bouquets, black front pages

BEIJING/SHANGHAI, Dec 1 (Reuters) – Chinese newspapers turned their front pages black on Thursday and flags were put at half mast in mourning for the death of former president Jiang Zemin, while well-wishers laid piles of bouquets outside his childhood home.

Jiang died in his home city of Shanghai just after noon on Wednesday of leukaemia and multiple organ failure, aged 96.

His death has prompted a wave of nostalgia for the relatively more liberal times he oversaw.

A date has yet to be set for his funeral.

The front page of the ruling Communist Party’s official People’s Daily devoted its whole front page to Jiang, and carried a large picture of him wearing his trademark “toad” glasses.

“Beloved comrade Jiang Zemin will never be forgotten,” it said in its headline, above a story republishing the official announcement of his death.

Flags flew at half mast on key government buildings and Chinese embassies abroad, while the home pages of e-commerce platforms Taobao and JD.com also turned black and white.

Mourners laid piles of bouquets of white chrysanthemums, a traditional Chinese symbol for mourning, outside Jiang’s childhood home in the eastern city of Yangzhou, a witness told Reuters, declining to be identified given sensitivities about discussing anything political in China.

Some people knelt down in front of his house in a show of respect, the person added.

“Grandpa Jiang, rest in peace,” read a note on one bouquet.

In Shanghai, where Jiang died, police closed off streets but hundreds of people still tried to catch a glimpse of a vehicle thought to be carrying his body, according to images that were shared on Chinese social media.

In one picture, people held up a black and white banner reading “Comrade Jiang Zemin you will forever live in our hearts”.

FOREIGNERS NOT INVITED

But foreign governments, political parties and “friendly personages” will not be invited to send delegations or representatives to China to attend the mourning activities, the official Xinhua news agency said.

At one of the largest foreign banks in China, employees have been asked to wear black in meetings with regulators, senior staff have been asked not to be photographed at parties and the bank has put marketing activities on hold for 10 days, a senior executive at the lender told Reuters, speaking on condition of anonymity as they were not authorised to speak to the media.

Jiang’s death comes at a tumultuous time in China, where authorities are grappling with rare widespread street protests among residents fed up with heavy-handed COVID-19 curbs nearly three years into the pandemic.

China is also locked in an increasingly bad-tempered stand-off with the United States and its allies over everything from Chinese threats to democratically-governed Taiwan to trade and human rights issues.

While Jiang could have a fierce temper, his jocular side where he would sometimes sing for foreign dignitaries and joke around with them stand in marked contrast to his stiffer successor Hu Jintao and current President Xi Jinping.

“Having someone educated as leader really is a good thing, RIP,” wrote one user on WeChat adding a candle emoji.

Some Chinese social media users have posted pictures and videos of Jiang speaking or laughing and articles about his 1997 speech at Harvard University in English, reminiscing about an era when China and the West were on better terms.

The U.S. and Japanese governments both expressed their condolences.

U.S. National Security Council spokesperson Adrienne Watson said that during his two visits to the United States as president as well as multiple other meetings with U.S. officials, Jiang worked to advance ties “while managing our differences – an imperative that continues today”.

Even Taiwan, which Jiang menaced with war games in the run up to the island’s first direct presidential election in 1996, said it had sent its “best wishes” to Jiang’s family, though it added he did “threaten the development of Taiwan’s democratic system and foreign exchanges with force”.

Reporting by Beijing and Shanghai newsrooms; Additional reporting by Engen Tham; Writing by Yew Lun Tian and Ben Blanchard; Editing by Raju Gopalakrishnan and Michael Perry

Our Standards: The Thomson Reuters Trust Principles.

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U.S. appeals court rejects Biden’s bid to revive student debt plan

Nov 30 (Reuters) – A federal appeals court on Wednesday declined to put on hold a Texas judge’s ruling that said President Joe Biden’s plan to cancel hundreds of billions of dollars in student loan debt was unlawful.

The New Orleans-based 5th U.S. Circuit Court of Appeals rejected the Biden administration’s request to pause a judge’s Nov. 10 order vacating the $400 billion student debt relief program in a lawsuit pursued by a conservative advocacy group.

The decision by Fort Worth, Texas-based U.S. District Judge Mark Pittman was one of two nationally that has prevented the U.S. Department of Education under the Democratic president from moving forward with granting debt relief to millions of borrowers.

The administration has asked the U.S. Supreme Court to similarly lift an order by the St. Louis-based 8th U.S. Circuit Court of Appeals that, at the request of six Republican-led states, had barred it from cancelling student loans.

A three-judge panel of the 5th Circuit in Wednesday’s brief order declined to put Pittman’s ruling on hold while the administration appealed his decision, but the court directed that the appeal be heard on an expedited basis.

The panel included two Republican appointees and one judge nominated by then Democratic President Barack Obama. Pittman was appointed by then Republican President Donald Trump.

The White House had no immediate comment but the administration has said that if the 5th Circuit declined to halt Pittman’s order it would ask the U.S. Supreme Court to intervene.

Biden announced in August that the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. Students who received Pell Grants to benefit lower-income college students will have up to $20,000 of their debt canceled.

During the 2020 presidential campaign, Biden promised to help debt-saddled former college students. Biden’s program has drawn opposition from Republicans, who have portrayed it as shifting the burden of debt from wealthy elites to lower-income Americans.

The Congressional Budget Office in September calculated that the debt forgiveness program run would cost taxpayers about $400 billion.

About 26 million Americans have applied for student loan forgiveness, and the U.S. Department of Education had already approved requests from 16 million by the time Pittman issued his ruling.

Biden last week announced his administration would extend a pause on student loan payments to alleviate uncertainty for borrowers while litigation over the debt relief plan plays out.

Pittman had ruled in a lawsuit by two borrowers who were partially or fully ineligible for the loan forgiveness who were backed by the Job Creators Network Foundation, a conservative advocacy group founded by Bernie Marcus, a co-founder of Home Depot.

The judge said it was irrelevant if Biden’s plan was good public policy because the program was “one of the largest exercises of legislative power without congressional authority in the history of the United States.”

Pittman wrote that the HEROES Act – a law that provides loan assistance to military personnel and that was relied upon by the Biden administration to enact the relief plan – did not authorize the program.

Elaine Parker, president of Job Creators Network Foundation, said in a statement the 5th Circuit’s order on Wednesday prevented the administration during the appeal from trying to “get money out the door to debtors and claim victory.”

Reporting by Nate Raymond in Boston; Editing by Tom Hogue, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

Nate Raymond

Thomson Reuters

Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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Crypto exchange Bitfront shuts down

Nov 28 (Reuters) – Bitfront, a U.S. crypto exchange backed by Japanese social media firm Line Corp, said it has suspended new sign-ups and credit card payments and will cease operations in a few months despite efforts to overcome challenges in the rapidly evolving industry.

“However, despite our efforts … we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy,” the California-based company said in a statement on its website on Sunday.

Bitfront said the move is unrelated to recent issues among certain crypto exchanges that have been accused of “misconduct”.

FTX, which was among the world’s largest cryptocurrency exchanges, is now the subject of investigations by authorities for “criminal misconduct”.

The company had filed for bankruptcy earlier this month, while cryptocurrency lender BlockFi filed for Chapter 11 bankruptcy protection on Monday, hurt by exposure to the collapse of FTX.

Bitfront said it has suspended new sign-ups and credit card payments as of Nov. 28, and will suspend withdrawals on March 31, 2023. The company clarified that interest for deposits made between Dec. 5 and Dec. 11 will be paid out on Dec. 13, 2022.

Reporting by Rahat Sandhu and Maria Ponnezhath in Bengaluru; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.

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Shares rise, U.S. Treasury yields drop ahead of Fed minutes’ release

  • Fed minutes for November due at 1900 GMT
  • Wall Street stocks trade higher
  • U.S. Treasury yields retreat
  • Crude prices drop more than 4%
  • U.S. dollar falls

NEW YORK, Nov 23 (Reuters) – World equities rose while U.S. Treasury yields were lower ahead of the release of the Federal Reserve’s meeting minutes that would offer a glimpse on whether officials are likely to soften their stiff monetary policy stance.

Traders are expecting the minutes, which will be published on Wednesday, to provide clues that the Fed is set to end its pace of sharp interest rate hikes in response to a moderation in economic conditions.

Labor Department data showed on Wednesday that U.S. jobless claims increased more than expected last week while U.S. business activity contracted for a fifth month in November, according to the S&P Global flash U.S. Composite PMI Output Index.

“What investors are hoping for is that the Fed acknowledges that since the consumer price index looks like it might be peaking that there’s going to be some language that they see a pause on the near-term horizon,” said Jordan Kahn, chief investment officer at ACM Funds in Los Angeles, California.

The MSCI All Country stock index (.MIWD00000PUS) was up 0.8%, while European shares (.STOXX) rose 0.62%.

U.S. Treasury yields were trading lower. Benchmark 10-year notes were down to 3.7242% while the yields on two-year notes dropped to 4.4835%.

The yield curve that compares these two bonds widened further into negative territory, to -76.30 basis points. When inverted, that part of the curve is seen as an indicator of an upcoming recession.

“I tend to think that investors that are looking for any sought of hint of a pause are going to be disappointed. I think the Fed is going to keep the message they’ve been saying for a while, which is that their job isn’t done yet and need to bring down demand,” Kahn said.

“The yield curve is still screaming that the economy is on the precipice of a slowdown,” he added.

On Wall Street, all three major indexes were trading higher, led by gains in technology, consumer discretionary, communication, and industrial stocks.

The Dow Jones Industrial Average (.DJI) rose 0.29% to 34,196.78, the S&P 500 (.SPX) gained 0.56% to 4,025.81 and the Nasdaq Composite (.IXIC) added 0.96% to 11,282.14.

Oil prices fell more than 4% as the Group of Seven (G7) nations looked at a price cap on Russian oil that is above where it is currently trading and as gasoline inventories in the United States built more than analysts expected.

Brent futures for January delivery fell 4.2% to $84.65 a barrel, while U.S. crude fell 4.46%, to $77.34 per barrel.

The U.S. dollar fell across the board ahead of the release of the Fed’s minutes and new data showing weaker economic conditions. The dollar index fell 0.7%, with the euro up 0.62% to $1.0366.

Gold prices were choppy as the U.S. dollar fell. Spot gold added 0.1% to $1,742.66 an ounce, while U.S. gold futures fell 0.10% to $1,736.50 an ounce.

Reporting by Chibuike Oguh in New York
Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

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Crypto lender Genesis says no immediate plans to file for bankruptcy

Nov 21 (Reuters) – Cryptocurrency lender Genesis said on Monday it has no immediate plans to file for bankruptcy, days after the collapse of crypto exchange FTX forced it to suspend customer redemptions.

“We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing,” a Genesis spokesperson said in an emailed statement to Reuters, adding that it continues to have conversations with creditors.

A report from Bloomberg News, citing sources, said Genesis was struggling to raise fresh cash for its lending unit, and warning investors it may need to file for bankruptcy if it does not find funding.

Also, the Wall Street Journal reported, citing sources that the company approached crypto exchange Binance seeking an investment but Binance decided against it, fearing a conflict of interest down the line.

Genesis also approached private equity firm Apollo Global Management (APO.N) for capital assistance, according to the report.

Apollo did not immediately respond to a Reuters request for comment on the WSJ report, while Binance declined to comment.

Last week, Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s crypto exchange FTX.

Crypto exchange Gemini, which runs a crypto lending product in partnership with Genesis, tweeted on Monday that it was continuing to work with the company to enable its users to redeem funds from its yield-generating “Earn” programme.

In a statement on its blog last week, Gemini said there was no impact on its other products and services after Genesis paused withdrawals.

On Thursday, the Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion from investors before it suspended withdrawals.

Earlier this month, FTX filed for U.S. bankruptcy protection in the highest-profile crypto blowup to date, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

Reporting by Manya Saini and Lavanya Sushil Ahire in Bengaluru; Additional reporting by Rishabh Jaiswal; Editing by Sriraj Kalluvila, Rashmi Aich and Sam Holmes

Our Standards: The Thomson Reuters Trust Principles.

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