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Police violence continues on US campuses

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Protests by university students in the US demanding an end to ties with Israel and for university administrations to pressure the federal government to end the war are spreading, and police attacks are intensifying.

The protesters say they will not disperse until schools commit to completely withdrawing funding from organisations with ties to Israel.

They are also calling for the withdrawal of funds from companies that sell weapons, construction equipment, technology services and other items to Israel from their campuses.

Professors arrested in Atlanta

Yesterday, as the world watched, police attacked a pro-Palestinian demonstration at Emory University in Atlanta and arrested dozens of people, including economics professor Caroline Fohlin and philosophy department chair Noëlle McAfee.

Professor Fohlin was heard in dialogue with police expressing concern about the police’s violent arrests and use of force.

On the university campus, police were seen forcing protesters to the ground and handcuffing them during events that followed the establishment of a camp in the university courtyard on Thursday morning.

Law enforcement officers used tear gas to disperse protesters from the area, according to a CNN crew at the scene. They also used pepper spray against the crowd that had gathered around the demonstrators who had been arrested by police.
The Georgia chapter of the Council on American-Islamic Relations condemned the use of force by police against demonstrators and the arrests at Emory University on Thursday.

“Emory University and the APD [Atlanta Police Department] bear full responsibility for the violence we are currently witnessing on the Emory campus. Students and protesters must be afforded all of their constitutional rights,” it said.

Dozens of protesters were also arrested at the University of Texas on Wednesday following a police assault. The American Civil Liberties Union (ACLU) of Texas warned that state and university officials are using law enforcement to “violently censor” pro-Palestinian demonstrations at the University of Texas and other campuses across the country.

“The First Amendment guarantees the right of people to protest in Texas and across the country, including in defence of Palestinians,” the group said in a statement.On the other hand, the local district attorney’s office announced that the cases of 46 detainees had been dropped.

Protests spread to Washington

At Georgetown University in Washington DC, a crowd of pro-Palestinian demonstrators gathered outside Healy Hall, the main administration building on campus.

The crowd then marched, led by several professors in graduation regalia, to a tent camp at George Washington University (GW).At the GW encampment, dozens of tents filled about a quarter of the campus.Chanting “There is only one solution, intifada intifada, long live the intifada,” the demonstrators carried banners reading “Resistance is justified when people are occupied,” “Stop the occupation,” and “Ceasefire now.

What happened where?

According to CNN’s list, here’s what happened at pro-Palestinian protests so far:

University of Southern California (USC): USC cancelled its main commencement ceremony for the Class of 2024 in May, citing ‘new security measures’.

Emory University: At least two professors were arrested during campus protests. The Georgia chapter of CAIR condemned the arrests, and the Georgia NAACP called for a meeting with the university president.

Vice President for Public Safety Cheryl Elliott said 28 people were arrested during a protest at the school, including 20 members of the Emory community.

The Georgia State Patrol said troopers on horseback used pepper spray during the protest ‘to control the unruly crowd’. A group of Democratic Georgia state lawmakers condemned the ‘excessive use of force’ by the Georgia State Patrol during the Emory arrests.

Northeastern University: A camp was set up where dozens of protesters formed a human chain around tents.

City College of New York: The New York Police Department (NYPD) said it no longer planned to clear the encampment on Thursday afternoon.

George Washington University: Organisers and the university confirmed that pro-Palestinian protesters, representing students from the District of Columbia, Maryland and Virginia, had set up an encampment on campus.

University President Ellen M. Granberg said the DC Metropolitan Police had been asked to help move an ‘unauthorised protest camp’ on campus. Granberg said the decision was made ‘after numerous orders from the GWPD to move to an alternative demonstration site on campus were ignored by camp participants.

Emerson College: More than 100 people were arrested and four police officers were injured during a pro-Palestinian protest at Emerson College in Boston on Wednesday, according to the Boston Police Department.President Jay Bernhardt said he recognised and respected the ‘civic activism and passion that sparked the protest’ after dozens were arrested.

Columbia University: House Speaker Mike Johnson called on Columbia’s chancellor to resign if he failed to bring order to the campus. Negotiations between protesters and Columbia officials to clear the encampment were extended for another 48 hours early Wednesday morning. According to the New York Times, the Faculty Senate is expected to vote on Friday on a resolution admonishing the school’s chancellor, Minouche Shafik, for some of her decisions. Shafik has come under fire for authorising police to quell student protests on campus.

University of Southern California: Police arrested about 100 protesters at the University of Southern California after being ordered to disperse.

The university cancelled next month’s main graduation ceremony, citing ‘new security measures’.

University of Texas at Austin: After tense resistance, the Texas Department of Public Safety announced that law enforcement made 57 arrests on campus.

“We do not classify arrestees based on whether or not they are students at the university,” Travis County Sheriff’s Office spokeswoman Kristen Dark told CNN.

Cal Poly Humboldt: The California State Polytechnic University, Humboldt campus will remain closed over the weekend as protesters, including “unidentified non-students,” continue to occupy two buildings, school officials said.

Brown University: The university has identified about 130 students who it says violated the school’s code of conduct, which prohibits camping on campus. The university said students found responsible would be disciplined depending on their conduct and other factors, including previous conduct violations.

Indiana University: At least 33 people were arrested on campus on Thursday following protests on campus.University of California, Los Angeles (UCLA):A “camp demonstration” was held at UCLA on Thursday.

Northeastern University: Dozens of protesters were seen forming a human chain around several tents at Northeastern University in Boston.

Ohio State University: Protesters at Ohio State University were arrested on Thursday night after refusing to disperse, according to university spokesman Benjamin Johnson.

White House throws ball to governors on National Guard

The White House has rejected a request from Republican House Speaker Mike Johnson for President Biden to call out the National Guard on college campuses.White House spokeswoman Karine Jean-Pierre said on Thursday that the issue was not up to the president.

“This is a matter for the governors to decide,” Jean-Pierre told reporters, noting that Biden had previously criticised the protests as anti-Semitic.

Johnson called the protests “dangerous” in a statement on Wednesday. “If this situation is not brought under control quickly and this threat and intimidation is not stopped, it will be an opportune time for the National Guard,” the House speaker said.

Republican calls against protests hardenPennsylvania Republican Senate candidate Dave McCormick lashed out at campus protests in Pennsylvania and across the country at a rally on Thursday night.

McCormick said: “We’re in moral trouble. The same thing happened at Penn today.Can you believe these kids are marching on our college campuses across the country? Honestly, can you believe it?” he asked.The Republican candidate called the demonstrations ‘anti-American’ and said universities that ‘condone this kind of behaviour’ should not receive federal research funding or be eligible for tax-exempt status for their endowments.

The Republican politician described the protesters’ behaviour as ‘anti-Semitic’ and ‘bordering on violence’ and said law enforcement should ‘clean up the camps’.Senators, including Republican heavyweight Mitch McConnell, argued that the demonstrations should be broken up by force.

Senate Minority Leader McConnell and his deputy John Thune wrote to US Attorney General Merrick Garland and Secretary of Education Miguel Cardona, describing the protesters as “anti-Semitic, pro-terrorist gangs”.

“The Department of Education and federal law enforcement agencies should take immediate action to restore order, prosecute gangs who continue the violence and threats against Jewish students, revoke the visas of any foreign nationals (such as exchange students) who promote terrorism, and hold school administrators accountable for standing by instead of protecting their students,” said the letter signed by 25 Republican senators.

Governor Greg Abbott, who led state troopers into the University of Texas, also said the protesters “belong in jail”.Former US President Donald Trump also condemned the demonstrations on Wednesday, comparing the anti-war protesters to the “white supremacists” who marched in Charlottesville, Virginia, during the first year of his presidency: “Charlottesville is peanuts compared to the riots and anti-Israel protests taking place all over our country.”

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Fed cuts interest rates, dollar surges to two-year high

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The U.S. Federal Reserve reduced interest rates by a quarter percentage point but signaled a slower pace of easing next year. This move drove the U.S. dollar to its highest level in two years and triggered a sell-off in both domestic and international stock markets.

The Federal Open Market Committee (FOMC) voted on Wednesday to lower the benchmark interest rate to 4.25–4.5%, marking the third consecutive cut. The lone dissenting vote came from Cleveland Fed President Beth Hammack, who favored maintaining the current rates.

Officials highlighted concerns about persistent inflation, projecting fewer rate cuts for 2025 than previously expected. Reflecting these worries, policymakers also raised their inflation forecasts for the coming year. Following the announcement, Fed Chair Jay Powell remarked that the current policy settings were “significantly less restrictive,” indicating the Fed’s inclination to adopt a more cautious approach to further easing.

“This decision was a ‘closer call’ than prior meetings,” Powell noted, emphasizing that inflation trends remain “sideways” while risks to the labor market are “diminishing.”

Aditya Bhave, senior U.S. economist at Bank of America, described the Fed’s message as “unabashedly hawkish.” He pointed to the shift in officials’ 2025 forecasts, which now anticipate just two quarter-point rate cuts instead of three, calling it a “wholesale shift.”

JPMorgan Chase, a key player in U.S. bond markets, noted that money markets are pricing in only a 0.31 percentage point rate cut in 2025. This outlook, significantly tighter than the bank’s earlier 0.75-point forecast, underscores the magnitude of the Fed’s policy shift.

The decision triggered a sharp sell-off on Wall Street, with the S&P 500 falling 3% and the tech-heavy Nasdaq Composite dropping 3.6%. High-profile winners of the 2024 rally were hit hard, including: Tesla, down 8.3%; Meta (Facebook’s parent company), down 3.6%; Amazon, down 4.6%.

Smaller companies, often seen as more sensitive to US economic fluctuations, also suffered. The Russell 2000 index declined 4.4%.

In Asia, stocks fell in early Thursday trading. Benchmarks in South Korea and Taiwan dropped 1.8% and 1.6%, respectively. Meanwhile, U.S. government bond prices fell, driving the yield on two-year Treasuries—sensitive to Fed policy—up by 0.11 percentage points to 4.35%.

The U.S. dollar surged 1.2% against a basket of six major currencies, reaching its strongest level since November 2022. According to Wells Fargo senior economist Mike Pugliese, the currency had already been rising on expectations of inflationary pressures following Donald Trump’s election victory last month. However, Wednesday’s Fed decision “poured more petrol on the fire.”

The South Korean won dropped to a 15-year low against the dollar, while the Japanese yen weakened 0.5%.

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Amazon pledges $1 billion to Trump inauguration fund

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Amazon confirmed on Thursday that it will contribute $1 million to Donald Trump’s inauguration fund, a move mirroring similar actions by other major tech companies, including Meta, the parent company of Facebook and Instagram. Amazon also plans to broadcast Trump’s inauguration via its Prime Video service.

This announcement comes as major tech executives seek to establish ties with the incoming U.S. president, despite Trump’s longstanding criticisms of Big Tech. Trump has frequently accused technology companies of censorship and bias against conservative media.

Jeff Bezos, Amazon’s founder and CEO, is reportedly planning to meet Trump at his Mar-a-Lago resort next week, according to The Wall Street Journal, which first reported Amazon’s donation. Similarly, Google CEO Sundar Pichai and Apple CEO Tim Cook have expressed their congratulations to Trump since his election victory in November.

Trump’s relationship with Amazon has been fraught with challenges. During his first term, he accused the company of undercutting competition and criticized its tax policies. In 2018, Trump ordered a review of U.S. Postal Service package pricing, claiming the agency acted as Amazon’s “courier.”

Apple, meanwhile, faces potential risks from Trump’s proposed tariff policies, which could disrupt critical supply chains in China. However, during Trump’s first term, Cook secured exemptions for certain Apple products.

Meta’s CEO, Mark Zuckerberg, and other tech leaders have also engaged with Trump. According to The Information, Zuckerberg dined with Trump after the election. Pichai is also expected to meet Trump this week.

While Trump scrutinized Big Tech during his presidency, Amazon now faces mounting regulatory pressure under President Joe Biden. The U.S. Federal Trade Commission (FTC), led by Lina Khan, has been investigating Amazon for alleged monopoly practices, with several states filing lawsuits last year. The FTC is also examining major cloud service providers, including Amazon, over partnerships in artificial intelligence.

Despite earlier conflicts, Bezos recently praised Trump for his “tremendous grace and courage under real fire” in a post on X (formerly Twitter) following an assassination attempt. Bezos, who also owns The Washington Post, reportedly prevented the newspaper from endorsing Trump’s Democratic opponent Kamala Harris in the 2024 election.

Speculation about a tacit agreement between Bezos and Trump has surfaced, allegedly tied to Blue Origin, Bezos’s rocket company competing with Elon Musk’s SpaceX.

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Investors poured $140 billion into U.S. equities following Trump’s victory

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Nearly $140 billion has flowed into U.S. equity funds since last month’s election, as investors anticipate Donald Trump’s administration will implement sweeping tax cuts and regulatory reforms.

According to the Financial Times (FT), which cites data from EPFR, U.S. equity funds have seen inflows totaling $139.5 billion since Trump’s victory on November 5. This surge in investment made November the busiest month for equity inflows since records began in 2000.

The massive influx of funds has driven major U.S. stock indexes to a series of record highs, as investors appeared to shrug off concerns about potential economic risks, including inflation and its implications for the Federal Reserve’s interest rate policy.

“The growth agenda that Trump has put on the table is being fully embraced,” said Dec Mullarkey, Chief Executive of SLC Management. He added that Trump’s picks for top administration posts have been seen as “very market friendly.”

Trump has promised to fill his administration with financial experts, including Scott Bessent as Treasury Secretary, and Paul Atkins, a cryptocurrency advocate, as Chairman of the Securities and Exchange Commission (SEC).

The president-elect has outlined a pro-growth agenda, emphasizing reduced taxes, deregulation, and economic expansion. These proposals have spurred optimism among investors, fueling a rally in the market.

The S&P 500, Wall Street’s primary stock market indicator, has risen 5.3% since Election Day, bringing its total gains for the year to 28%. Smaller companies, which are often seen as more responsive to changes in the U.S. economy, have outperformed larger firms during this period. The Russell 2000 index recently hit a record high for the first time in three years.

While U.S. equity funds have enjoyed record inflows, other global markets have experienced outflows emerging market funds have seen net withdrawals of $8 billion, with China-focused funds accounting for $4 billion; funds investing in Western Europe have lost $14 billion; and Japan-focused funds have seen outflows of approximately $6 billion.

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