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Good afternoon. Here’s what you should know today, Jan. 8: |
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Earnings season kicks off this week Biden focuses on immigration with border visit Prince Harry's book hits the shelves Tuesday |
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| ANNA MONEYMAKER/GETTY IMAGES |
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1. McCarthy's fight for House speakership hints at further turbulence ahead. |
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The House elected Kevin McCarthy speaker on the 15th ballot after days of grueling negotiations. The California Republican capitulated to nearly every demand made by his party’s holdouts. The struggle to pick a leader, typically a perfunctory process, previewed what could well be months of turmoil over spending issues in a narrowly divided House. Hanging in the balance is the ability of the U.S. government to stay open and pay its debts. |
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House Republicans Turn Focus to Spending, China After Dramatic Speaker Vote (Read) What’s in Kevin McCarthy’s Deal With Conservatives (Read) 🎥 Kevin McCarthy Faces Uphill Battle as New House Speaker (Watch) |
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2. Wall Street sets a low bar for earnings season. |
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The stock market faces its next big test with the kickoff of an earnings season that is set to be dominated by worries about inflation and the health of the economy. Analysts expect companies in the S&P 500 to report their first year-over-year decline in quarterly earnings since the height of the pandemic in 2020. Investors will review results this week from some of the country’s biggest banks, including JPMorgan Chase and Bank of America, as well as companies such as Delta Air Lines and UnitedHealth. |
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Tech Industry Reversal Intensifies With New Rounds of Layoffs (Read) |
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3. Biden heads to the southern border amid criticism from both parties. |
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The president is en route to El Paso, Texas, which in December saw a surge of migration. Later this week, he will meet with Mexican President Andrés Manuel López Obrador and Canadian Prime Minister Justin Trudeau in Mexico City. Days before the trip, Biden announced an aggressive effort to bring down illegal crossings. His plans rely on several Trump-era policies, earning him criticism from some Democrats. Meanwhile, Republicans say he hasn’t done enough. |
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Border Wall Made of Shipping Containers Comes Down in Arizona, Rises in Texas (Read) |
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4. FTX is trying to recoup Sam Bankman-Fried's charitable donations. |
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The crypto exchange and its founder doled out millions of dollars to charity. Now, the company's new management wants it back, and says it will “commence actions before the bankruptcy court” to require that the money be returned, with interest. Some of the money, however, has already been spent. |
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5. Proud Boys face trial over the Jan. 6 Capitol attack. |
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Federal prosecutors are expected to open their case on Tuesday against Enrique Tarrio, the former leader of the extremist Proud Boys group, and four of its members. The trial, estimated to last more than a month, includes the rarely used charge of seditious conspiracy, an offense punishable by up to 20 years in prison. |
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6. Prince Harry’s book has retailers in suspense. |
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As U.S. booksellers stock up on the memoir ahead of its release this week, they are divided over whether readers’ interest in the British royal family will deliver blockbuster sales. Barnes & Noble CEO James Daunt says “preorders have been crazy” and that the book is “going to blow up,” but independent booksellers aren’t so sure. |
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Prince Harry Book Alleges Physical Altercation With Brother William (Read) |
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