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The morning bid for Europe-Japan is a big hit!
Tom Westbrook gives us a look at what the future holds for European and global markets. The central bank moves in Asia were as expected on Tuesday, with Japan increasing its short-term rate to 1% (the highest since 1995) and Australia keeping its?rates at 4.35%. The?yen and the Australian dollar did not react sharply at first. Investors are expecting hawkish views at the press conferences to be held in Sydney and Tokyo. They have priced in another hike for Japan this year, and a 66% chance of an additional hike in Australia. Reserve Bank of Australia Governor,?Michele Bullock, is expected at 0530 GMT, and Bank of Japan Vice Governor Shinichi Uchida is expected an hour later. Uchida is filling in for Kazuo Ueda who is hospitalised. The hike in Japan brought the rates down to the "bottom" of what policymakers believe the neutral rate for the economy is. However, it also came with a pause that had been previously signaled - the central bank was stepping back from the bond markets. The company will cut its bond buying by 200 billion yen ($1.25billion) per quarter until April 2027, when it will stop. JGB purchases will be around 2 trillion yen per month. Traders elsewhere were reluctant to push markets higher despite the tentative agreement reached between the U.S.A. and Iran over the weekend. Details of the deal, which kept oil prices above $80 per barrel, were scanty and shippers warned that it would take weeks for them to regain confidence in order to safely navigate through the Strait of Hormuz. SoftBank's shares remained steady following the news that the chief financial of Vision?Fund, the company's investing arm, is leaving after a decade. The Chinese data for May was mixed. Retail sales fell in Hong Kong, the first time they had done so in over three years. This weighed on market sentiment, and stocks were down. Overnight, Wall Street had notched gains. After-hours trading saw SpaceX's value surpass $2.6 trillion, as the stock surged to 48% over its listing price. Nvidia surprised the debt markets with its surprisingly large $25 billion bond issue, which they say will be used for refinancing as well as general purposes. The following are key developments that may influence the markets on Tuesday. - Economy: German ZEW Survey
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Asia markets temper Iran deal optimism, BOJ hikes rates
Asian stocks gained modestly on Tuesday, following a rally the previous day?on news of a U.S. peace deal with Iran?. Investors also assessed a widely anticipated Bank of Japan interest rate?increase to a high of 31 years. The Nikkei rose 0.9%, to a record high of 70,000. This was after the Japanese central banks voted to raise its benchmark rate to 1%. S&P 500 futures recovered from early losses and traded flat. MSCI's broadest Asia-Pacific index outside Japan rose 0.4%. Korean shares rose 2.3%. Stocks in Hong Kong weighed down the benchmark index after China's retail sales and fixed asset investment data were weaker than expected. The markets have taken a more measured approach to Gulf developments, as initial excitement over the preliminary deal between Washington and Tehran has begun to fade. Brent crude futures fell 0.3%, to $82.90 per barrel, reflecting the cautious attitude. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that transit will resume through the Strait of Hormuz. Although the announcement by U.S. president Donald Trump of a "deal" with Iran brought relief to investors on Monday, Washington is now on a collision path with Israel. Westpac analysts said in a research report that while the deal was an "important diplomatic breakthrough" and should eliminate a major source of volatility in the market, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. WALL STREET RALLY Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. A poll of economists shows that traders are waiting for a decision by the Reserve Bank of Australia. The bank is expected to stop its tightening cycle at their meeting later on Tuesday. Shinichi Uchida, the Deputy Governor of the Bank of Japan, will hold a briefing for the media later in the day to explain the central banks decision. Governor Kazuo ueda, however, won't be able to attend because he is undergoing medical treatments. In a research note, analysts at Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on current conditions. The note stated that "we expect the Deputy Governor Uchida press conference and the reasoning he uses to justify the rate hike decision will be heavily influenced by Governor Ueda’s speech on June 3," "Mr. Uchida will?likely follow the Governor's remarks in discussing future policy decisions." The U.S. Dollar Index, which measures greenback strength against a basket six currencies, has remained at 99.70. It is firmly "within" the tight trading range in which it's been for the last three sessions. The yield of the 10-year Treasury bond in the U.S. The yield on the 10-year Treasury bond increased 0.4 basis points to 4.471%. Gold rose 0.4% to $4,321.22 per ounce. Early European trading saw pan-regional futures down 0.1%. German DAX Futures were down by 0.2%. FTSE Futures also slipped 0.1%. Bitcoin fell 0.8% to $65,938.29 while ether dropped 2.1% to $17,777.02. (Reporting and editing by Gregor Stuart Hunter, Jamie Freed, and Shri Navaratnam).
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Investors wait for details on US-Iran peace agreement
Investors awaited more details about the U.S. - Iran peace deal. Gold prices were mostly stable on Tuesday. As of 0231 GMT spot gold was up by 0.2% to $4,315.87 an ounce after rising as high as 3.6% on Sunday, when it reached its highest level since the 5th of June. U.S. Gold Futures for August delivery fell 0.3% to $4,337.10. U.S. president Donald Trump announced on Monday that the U.S. had signed a preliminary deal with Iran to end the Gulf War, but no details were made public. Both countries also said they have yet to negotiate a permanent ceasefire. Since late Thursday, the Iran news has fueled a good run in gold. Edward Meir is an analyst with Marex. He said, "I think that this euphoria might last for a few more days and culminate in the signing ceremony on Friday." The U.S. Dollar held near its 10-day lows before the Bank of Japan announced their interest rate decision. Investors will also be watching the Federal Reserve's policy announcement and remarks on Wednesday. This is the first time that Kevin Warsh has been the chair. Rates are expected to stay the same. Markets expect no rate reductions this year. Meir stated that if Warsh indicates at least one rate cut may be on the table this year, then the dollar could decrease even further and we could see another rally in the gold price. Gold could be under pressure if he appears to be more hawkish about rates. CME FedWatch? tool shows that traders have reduced their expectations of a U.S. interest rate increase in December to 57%, from 70% last week. In a high interest rate environment, gold is not attractive as it does not yield. Citi has raised its gold price forecast for the 0-3 months by $500 per ounce to $4,500. Silver fell by 1%, to $69.29 an ounce. Platinum dropped 0.9%, to $1.751.55, while palladium dropped 1.6%, to $1.327.27. (Reporting by Noel John in Bengaluru; Editing by Subhranshu Sahu)
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BOJ to make decision on Iran deal in the near future
Asian stocks fell on Tuesday, as investors focused on 'central bank decisions. This included an expected 'rate hike by the Bank of Japan. The markets have taken a more measured approach to Gulf developments, as the initial excitement surrounding the preliminary agreement reached between Washington and Tehran has begun to fade. Brent crude futures rose 0.1% to $83,25 per barrel, reflecting the cautious approach. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that the Strait of Hormuz will be open for business again. MSCI's broadest Asia-Pacific index outside Japan has lost gains and is now trading flat. Stocks in Hong Kong are weighing down the benchmark due to weaker-than-expected data on retail sales from China, as well as fixed-asset investments. Japan's Nikkei was down by 0.3% from its record high, while S&P 500 futures fell 0.1%. Although the announcement by Donald Trump of a nuclear deal with Iran on Monday brought relief to investors, it also put Washington on a collision course with Israel. Westpac analysts said in a research report that while the deal was a diplomatic success, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. WALL STREET RALLY Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. Traders are waiting for several major central banks decisions.?Including the Bank of Japan which is expected Tuesday to increase interest rates to their highest level in 31 years. After the meeting, Deputy Governor Shinichi Uchida is scheduled to hold a briefing for the media. Governor Kazuo Ueda will miss this because he's undergoing medical treatments. In a research report, analysts at?Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on?current conditions. The note stated that "We expect the Deputy Governor Uchida to base his press conference and the reasoning he uses for the rate hike decision on the Governor Ueda speech of June 3rd." "Mr. Uchida will also follow the Governor's remarks in discussing future policy decisions." According to a survey of economists, the Reserve Bank of Australia is likely to stop its tightening cycle at a later meeting. The U.S. Dollar Index, which measures the strength of the "greenback" against a basket six currencies, has been firmly anchored at 99.69. It is still firmly in the same tight trading channel that it has been in for the last three sessions. The yield of the 10-year Treasury bond in the United States was up by 0.2 basis points to 4.469%. Gold rose 0.1% to $4,311.12 per ounce. Bitcoin was down by 0.3%, at $66,281.99. Ether fell 1.3%, to $1,791.39. (Reporting and editing by Gregor Stuart Hunter, Shri Navaratnam, and Jamie Freed).
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Fire caused by drone debris at an oil depot in Russia’s Krasnodar Region near Crimea
Authorities?said Tuesday that a fire was caused by debris from a drone at an oil depot located in southern Krasnodar, Russia. They also?closed the local road linking the area with the Crimean Peninsula. The fire that broke out at the oil depot in the Poltavskaya region?of Krasnodar was not fatal, according to a telegram message from the regional authorities. The authorities said that they had closed a local route connecting the area to a regional road leading to a?bridge over the Kerch Strait? linking Crimea with the Krasnodar Region, which was built by Moscow following the annexation. The bridge is one way to supply the Black Sea Peninsula, along with a few other roads that connect to Russia-held parts of Ukraine. Ukraine struck two bridges on Monday that connect the Russian-held area of Ukraine's Kherson Region?with Crimea. Kyiv's recent intensification of attacks on Crimea supply routes has led to a fuel shortage in the peninsula. In the Krasnodar area, a popular tourist destination in summer, disruptions in?fuel supply have led to panic buying, according to the regional governor. Ukraine is continuing its attacks on Russian energy assets. (Reporting and editing by Tom Hogue in Tokyo, Lincoln Feast and Jekaterina Gólubkova.)
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BOJ to make decision on Iran deal in the near future
Asian stocks climbed a little on Tuesday, after rallying the previous session due to news of a peace agreement between Iran and the U.S. Investors turned their attention to'several' central bank decisions such as an expected rate increase from the Bank of Japan. Early trading in this region followed a familiar trend, as markets began to take a more measured approach on Gulf developments after the initial excitement surrounding the preliminary agreement reached between Washington and Tehran started to fade. Brent crude futures rose 51 cents or 0.6% to $83.74 per barrel, reflecting the cautious approach. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that transit will resume through the Strait of Hormuz. MSCI's broadest index of Asia-Pacific stocks outside Japan gained 0.2% with Korean shares leading the gains. Japan's Nikkei was down by 0.2% from its record high, as the e-mini S&P 500 futures fell 0.1%. Although the announcement by Donald Trump of a nuclear deal with Iran brought relief to investors on Monday, Washington is now on a collision course with Israel. Analysts from Westpac said in a research report that while the deal was a diplomatic success, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. Traders are waiting for several important central bank decisions. This includes the Bank of Japan which will raise interest rates on Tuesday to a record high. After the meeting, Deputy Governor Shinichi Uchida is scheduled to hold a briefing for journalists. Governor Kazuo Ueda has been undergoing medical treatments and will not be able to attend. In a research report, analysts at Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on current conditions. The note stated that "We expect the Deputy Governor Uchida press conference and the reasoning he uses for his rate-hike announcement to be heavily influenced by Governor Ueda’s speech on June 3," "Mr. Uchida will also follow the governor's remarks in discussing future policy decisions." According to a survey of economists, the Reserve Bank of Australia is likely to stop its tightening cycle at a later meeting. The?U.S. The dollar index, which measures greenback strength against a basket six currencies, has held steady at 99.66. The yield of the 10-year Treasury Bond in the United States was up by 0.8 basis points at 4.475%. Gold rose 0.2% to $4,313.87. Bitcoin fell 0.3% to $66,245.97 while ether dropped 1.2% to $1.793.70. (Reporting and editing by Shri Navaratnam.)
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Concerns about US-Iran Peace Deal, Restored Supply, and Oil Prices are causing a rebound in the price of oil
The oil prices rose on Tuesday due to concerns over the lack of detail in a preliminary agreement that would end the war between Iran and the U.S. Brent crude futures rose?26 cents or 0.3% to $83.42 per barrel. U.S. West Texas Intermediate was up 46 cents or 0.3% to $81.12 per barrel as of 0108 GMT. Oil prices dropped by almost 5% on Monday to their lowest level since March 4. U.S. president Donald Trump announced that a memorandum-of-understanding had been signed to end the U.S. and Israeli war with Iran. The conflict shut down the Strait-of-Hormuz, which carried about one-fifth the world's supply of oil before the conflict. The full details of the memo have not yet been made public and there hasn't been a truce permanent. Early indications are that the agreement will reopen the Strait of Hormuz, which has been closed for the past 60 years. It will also extend the ceasefire period by 60 days. This would allow negotiators the opportunity to address difficult issues such as the future of Iran’s nuclear program. Masoud Pezeshkian, the Iranian president said that the U.S. and Iran memorandum was "an important step" towards stopping the fighting. However, a final agreement on a lasting ceasefire "has yet take shape." Tim Waterer is the chief market analyst for KCM Trade. He said that the market will likely show some restraint in regards to the further unwinding the risk premium in energy markets. According to a senior Iranian official, Iran will freeze its nuclear activities until a final deal is reached. This includes refraining from further enriching uranium or expanding nuclear facilities. It is unclear, even with the current agreement how quickly the curtailed supplies will be able return to the market. Tony Sycamore is a market analyst at IG. He said, "The path to normal supply flow remains far from'straightforward. Sycamore said that clearing mines, restoring marine insurance coverage and allowing vessels and operators to feel comfortable returning to the Gulf would all take some time.
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US Air Force B-52 Bomber Crashes in California, 8-member Crew Presumed Dead
The base reported that the U.S. Air Force B-52 Stratofortress Bomber crashed Monday, shortly after takeoff, from Edwards Air Force Base, located in Southern California's Mojave Desert. All eight crew aboard are presumed dead, according to the base. Edwards stated in a press release issued four hours after it crashed that the eight-engine jet aircraft was on a test mission. It had been designed to carry conventional and nuclear bombs. Aerial footage from the crash site, located about 100 miles north of Los Angeles (161 km), showed a large, smoldering area of desert floor, roughly the size of an American football field. An emergency vehicle could be seen driving around the perimeter of the scene. The footage did not show any large debris. Air Force B-52 Stratofortress with eight passengers on a routine testing mission crashed after take-off today at 11:20 am (PDT). The base posted an 'update' on X saying that initial indications were that the crash would not be survivable. The Air Force said that an "emergency response" team was at the scene and that officials were "working hard to account for all personnel." The Air Force stated that the cause of this crash is under investigation. Boeing's Stratofortress is a subsonic, long-range aircraft. According to the U.S. military, it has been the backbone for the strategic bomber force of the U.S. According to an Air Force factsheet, the swept-wing aircraft can carry munitions such as cluster bombs and "gravity bombs" at heights up to 50,000 feet (15.166 meters). The fact sheet stated that the B-52 is capable of performing strategic attacks, close-air-support, air interdictions, offensive counter-air, and maritime operations in a conventional conflict. According to the Bureau of Aircraft Accidents Archives in Geneva, an organization that collects data on global aviation accidents, Monday's crash was the first of its kind since the same type of bomber crashed onto the island of Guam back in May 2016. The seven crew members on board the aircraft all survived. The Air Force only has the H-model B-52 in its inventory. According to the military, it is assigned to both the 5th Bomb Wing in Minot Air Force Base (North Dakota) and the 2nd Bomb Wing in Barksdale Air Force Base (Louisiana), both under the Air Force Global Strike Command. It also reports to be assigned to Barksdale's 307th Bomb Wing of the Reserve Command. Steve Gorman reported from Los Angeles, and Phil Stewart reported from Washington. Additional reporting was provided by Costas Pitas, Jasper Ward and Bill Berkrot; editing by Bill Berkrot & Jamie Freed.
The top cases in the US Supreme Court docket
During its current term, the U.S. Supreme Court will decide a number of important cases involving voting rights, presidential power, tariffs and birthright citizenship. Other issues include race, transgender sportspeople, campaign finance laws, LGBT "conversion therapies" and federal agency authority. The term began in October, and will run through June. Separately, the court has also acted in emergency cases in several cases that challenge President Donald Trump's policy.
VOTING RIGHTS ACT On April 29, the court gutted a crucial provision of the Voting Right Act, making it harder for minorities who want to challenge electoral maps under the landmark civil right law as racially biased. The court blocked a map that would have given Louisiana a U.S. Congress district with primarily Black constituents. The court's ruling undermined Section 2 the Voting Rights Act which Congress passed to prevent electoral maps from diluting minority votes. The ruling opened the door for Republican-led Southern States to demolish Democratic-held districts with majority-Black or majority-Latino voters ahead of November's midterm elections. After the Supreme Court gutted another part of the Voting rights Act in 2013, Section 2 became a more important bulwark to combat racial bias in voting. Black and Latinos tend to vote for Democratic candidates.
Birthright Citizenship The court expressed skepticism about the legality of Trump’s directive on April 1, to restrict birthright citizenship within the United States. Justices asked questions to the administration's lawyer about Trump's executive orders and their practical implications. The lower court blocked Trump’s order which instructed U.S. agencies to not recognize citizenship for children born in the U.S. when neither parent was an American citizen, or a legal permanent resident (also called "green card") holder. The court found that Trump's policy was in violation of the 14th Amendment to the U.S. Constitution and federal law codifying "birthright citizenship" rights. The Supreme Court will likely rule by June's end.
TRUMP'S TARIFS The Supreme Court ruled on February 20, 2018 that Trump's tariffs were illegal because they were imposed under a law intended to be used in emergencies. This ruling has major implications for global economics. The ruling, which was 6-3 in favor of the lower court decision, confirmed that Trump had exceeded his legal authority by using this 1977 law. The court ruled that Trump's claim to have the authority to impose tariffs was not supported by the law in question, the International Emergency Economic Powers Act (IEEPA). Congress has the power to impose taxes and tariffs, not the President, according to the U.S. Constitution. Tariffs are at the heart of a global trade conflict that Trump started after he entered his second term in office. This war has alienated trading partner, affected financial markets, and created global economic uncertainty.
TRUMP'S FIRE OF FED OFFICIAL Justices expressed skepticism about Trump's attempt to fire Federal Reserve governor Lisa Cook, a move that could threaten the independence of the central bank. The justices said they would not grant Trump's request for a judge to overturn a decision that prevented him from firing Cook immediately while her legal case is being resolved. Congress created the Fed by passing a law, the Federal Reserve Act, that contained provisions designed to protect the central bank against political interference. The law stipulated that governors could only be removed "for cause" by the president, though it does not define this term or establish procedures for removal. Trump claimed that Cook's firing was due to unproven allegations of mortgage fraud, which she has denied. Cook, who is still in her position for now, said that the allegations were a pretext used to fire Cook over differences of monetary policy, as Trump pressures the Fed to reduce interest rates. The ruling is expected to be made by the end June.
IMMIGRANTS WITH PROTECTED STATUS The Justices heard arguments April 29 on the Trump administration's move to strip humanitarian benefits from hundreds of thousands Haitian and Syrian migrants, as part of Trump's signature immigration crackdown. The Trump administration appealed two federal judge's rulings that halted its efforts to "terminate" Temporary Protected Status (TPS), which the U.S. Government had previously granted to over 350,000 Haitians and 6,100 Syrians. Some conservative justices seemed to agree with the administration that courts could not second-guess the decision of the government to end TPS. Some justices questioned also the challengers' claim that the administration didn't follow mandatory protocols when making decisions in accordance with the law governing TPS. The ruling is expected to be made by the end June.
FEDERAL COMMISSION FIREING The conservative justices of the court have signaled that they will uphold Trump's legality in firing a Federal Trade Commission Member and also give a historical boost to president power, while also putting at risk a 90-year old legal precedent. The court heard arguments in December regarding the Justice Department’s appeal against a lower-court decision that said the Republican president had exceeded his authority by dismissing Democratic FTC member Rebecca Slaughter before the term of her appointment was due to end. The conservative justices seemed sympathetic to the Trump Administration's argument that tenure protections granted by Congress to heads of independent agencies illegally infringed on presidential powers under the U.S. Constitution. Trump was allowed to remove Slaughter until the case concluded. The court is expected to make a decision by the end June.
TRANSGENDER SPORTS PARTIcipation The conservative justices seemed ready to uphold the state laws that ban transgender athletes to female sports teams, amid an escalating nationwide effort to restrict transgender rights. On January 13, the court heard arguments in appeals filed by Idaho and West Virginia regarding decisions of lower courts siding transgender students in their challenge to the bans imposed in both states for violating the U.S. Constitution as well as a federal antidiscrimination act. 25 other states also have laws similar to Idaho's. The conservative justices expressed concerns over imposing a uniform law on the whole country, amid a sharp disagreement and uncertainty about whether medications such as puberty-blocking hormones or gender affirming hormones remove male physiological advantages in sport. The ruling is expected to be made by the end June.
LGBT 'CONVERSION THERAPEUTY'
On March 31, the court rejected a Democratic-backed Colorado Law that prohibited psychotherapists from using “conversion” talk therapy to change a LGBT minor's gender identity or sexual orientation. The 8-1 decision sided with the Christian licensed counselor and deemed the ban as an intrusion into free speech rights. The court rejected Colorado’s argument that the law only protected speech, but regulated professional conduct. The court reversed a lower-court decision which had upheld a law brought by Kaley Chiles who argued it violated First Amendment protections from government abridgment.
HAWAII GUNS LAW The conservatives expressed skepticism about a Hawaii gun law which restricts handguns from being carried on public property, such as businesses. They appeared ready to expand the right to own a firearm again. On January 20, the court heard arguments in an appeal filed by opponents of the law, backed by Trump's administration. The challengers were appealing a judicial decision that Hawaii's Democratic-backed measures likely comply with the U.S. Constitution’s Second Amendment right. Hawaii's law demands that a property owner "expressly authorize" the bringing of a handgun on to a private property. Four other states in the United States have laws similar to Hawaii's. The ruling is expected to be made by the end June.
Drug Users and Guns On March 2, the justices heard arguments in a case in which a dual American/Pakistani national in Texas was defending a federal gun law that prohibits users of illegal drugs to own guns. Hunter Biden, son of former president Joe Biden, was charged under this law in 2023. The Justice Department appealed a ruling by a lower court that the gun restrictions were in violation of the Second Amendment rights to "keep and carry arms" guaranteed under the U.S. Constitution. Gun Control Act 1968 included a prohibition against gun ownership by illegal drug users. The decision is expected to be made by the end June.
CAMPAIGN-FINANCE On December 9, the court heard arguments in a Republican led bid to overturn federal spending limits by political parties coordinated with candidates. The case involved Vice President JDVance. The conservative justices seemed to be sympathetic towards the challenge. However, the three liberal members of the court appeared inclined to maintain the spending limits. The debate centers around whether federal limits on campaign spending coordinated with candidates' input violate First Amendment protections against government abridgment. Vance and Republican challengers have appealed the ruling of a lower court that ruled on restrictions on how much money can be spent on campaigns by parties with input from candidates who support them, a type political expenditure called coordinated party expenses. The ruling is expected to be made by the end June.
MAIL-IN BALLOTS
Conservative justices expressed skepticism in a March 23 case against a Mississippi law that allowed a five-day period of grace for mail-in votes received after Election Day. This could lead to tighter voting laws across the country. The Trump administration supported the challenge against Mississippi's law that allows mail-in votes sent by certain voters be counted as long as they are postmarked before Election Day and received within five business days of a federal election. In Mississippi, absentee voting is only available to certain categories of voters. These include the elderly, disabled and those who live away from home. A lower court ruled that the law was unconstitutional. The court is expected to rule by the end of June.
U.S. ASYLUM - PROCESSING: The court seemed likely to rule for the Trump administration's defense of its authority to reject asylum seekers when officials deem U.S. - Mexico border crossings to be too overburdened to process additional claims. On March 24, the court heard arguments in a dispute over a policy known as "metering," which Biden's administration dropped in 2021. The Republican president may want to reinstate it. It allowed U.S. immigration officers to stop asylum seekers and refuse to process their applications indefinitely. The decision is expected to be made by the end June.
WEEDKILLER CAUSES CANCER The court seemed divided on Bayer AG’s attempt to close down thousands of lawsuits alleging the German company failed to warn users of the dangers of the active ingredient of its Roundup weedkiller. On April 27, the court heard arguments in Bayer’s appeal of a Missouri state court jury verdict awarding $1.25million to a man called John Durnell, who claimed he had been diagnosed with non-Hodgkin's lymphoma following years of exposure to Roundup glyphosate. The lower court rejected Bayer’s argument that U.S. pesticide law bars lawsuits based on claims made under state laws. The ruling is expected to be made by the end June.
Human Rights Abuses Around the World The court heard arguments in April 28 on a case that has broad implications for American human rights litigation. Members of the Falun-Gong spiritual movement have accused Cisco Systems, of facilitating religious persecusion in China. Cisco appealed the 2023 ruling of a lower court that gave new life to the 2011 lawsuit brought under the Alien Tort Statute of 1789 that accused the company of developing technology that enabled China's government to monitor and persecute Falun-Gong members. Cisco asked the court to limit the scope the Alien Tort Statute which allows non-U.S. Citizens to sue in American courts over violations of international laws. The court is expected to make a ruling by the end June.
SEC'S DISGORGEMENT POWER The Justices appeared to be inclined to support the U.S. Securities and Exchange Commission (SEC) in a case that tested the limits of one of its key powers. A financial remedy known as disgorgement, it seeks the recovery of profits from illegal activities. On April 20, the majority of justices seemed to be receptive of a defense put forth by the Trump Administration of the SEC’s broad disgorgement powers. The ruling is expected to be made by the end June.
FCC fines wireless carriers
Justices seemed to be inclined to maintain the Federal Communications Commission system for levying fines, despite a challenge from major wireless carriers against the agency's regulatory powers. During the April 21st arguments, the majority of justices appeared skeptical about the claims made by Verizon Communications and AT&T's lawyers that the Federal Communications Commission's internal proceedings deprived them of their constitutional right to a trial by jury. The ruling is expected to be made by the end June.
'GEOFENCE" WARRANTS On April 27, the court heard arguments in a Virginia case over whether law enforcement using a "geofence warrant" to identify?potential criminal suspects by using data from mobile phones near crime scenes is in violation of the Fourth Amendment's bar against unreasonable searches. Geofence warrants approved by the court compel companies, such as Alphabet’s Google in this instance, to search for mobile devices near crime scenes. In this case, a defendant pleaded conditionally guilty to robbing an institution of higher learning while reserving the right to argue against evidence obtained from what he believes was an illegal search. The ruling is expected to be made by the end June.
CRISIS PREGNANCY COUNTER The court sided on April 29, with the operator in New Jersey of Christian faith-based "crisis pregnancies centers" that are anti-abortion and trying to obstruct a state investigation as to whether these facilities engage in misleading practices. First Choice Women's Resource Centers brought a lawsuit against a subpoena issued by the state attorney general in 2023, which sought information about the organization's doctors and donors. The lawsuit had been thrown out by a lower court. First Choice's facilities are designed to discourage women from getting abortions.
RASTAFARIAN INMAT The conservative justices seemed inclined to reject the Rastafarian inmate's attempt to sue Louisiana state prison officials after they shaved his head in violation of religious beliefs. On November 10, the case was brought before a federal statute protecting prisoners from religious discrimination. Plaintiff Damon Landor's religion requires that he let his hair grow. He appealed the decision of a lower court to dismiss his lawsuit, because they found that he could not sue officials individually for monetary damages. The ruling is expected to be made by the end June.
DEATH ROW INMATE The court heard arguments in December in an attempt by Alabama officials in order to pursue the execution for an inmate who was convicted of a murder in 1997 after a lower judge found him intellectually disabled, and therefore ineligible to receive the death penalty. The Republican-led state has appealed a lower court ruling that Joseph Clifton Smith was intellectually disabled based upon his intelligence quotient (IQ), test scores, and expert testimony. In a 2002 Supreme Court decision, the court ruled that executing a person intellectually challenged violates the Eighth Amendment of the U.S. Constitution prohibiting cruel and unusual punishment. The ruling is expected to be made by the end June.
COX COPYRIGHT DISSENSION
On March 25, the court ruled that Cox Communications could not be held responsible for piracy of songs by subscribers to its internet service. These include Sony Music, Warner Music Group, Universal Music Group, and other labels. This ended their multi-billion dollar music copyright suit. The ruling of 9-0 overturned the decision by a lower court to order a trial to determine the amount the internet service provider was liable for the record labels under a form liability known as contributory copyright violation. Cox said that a retrial would have resulted in a verdict of up to $1.5 billion against the Atlanta ISP.
(source: Reuters)