Wednesday, November 20, 2019

IMF Says Mexico Credit Line May Be Cut From Current $74 Billion

IMF Says Mexico Credit Line May Be Cut From Current $74 Billion(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.The International Monetary Fund’s board plans to vote on Mexico’s request to renew its flexible credit line, possibly for less than the current $74 billion, before it expires next week.Mexico is interested in reducing the size now that there’s greater certainty around its trade relationship with the U.S., Alejandro Werner, the IMF’s Western Hemisphere director, said in an interview Wednesday at Bloomberg’s headquarters in New York. Werner said he expects the board’s decision before the current agreement expires Nov. 28.Mexico first received the credit line, which serves as a precautionary instrument, for $47 billion in 2009 during the global financial crisis. It increased to $88 billion in 2016 after a plunge in oil prices and amid concern about then-candidate Donald Trump‘s pledge to take the U.S. out of the North American Free Trade Agreement. It was reduced to $74 billion at Mexico’s request after a successor trade deal was negotiated.“Mexico has basically expressed their intent to reduce the size of the FCL,” Werner said. “On the other side, we know that there are still tons of risks in the world economy, and so Mexican authorities have continually expressed their desire to keep this instrument. It’s become a part of their shield to external shocks.”IMF Waits to Hear Economic Plan of Argentina’s Fernandez (Video)The IMF and the the administration of President Andres Manuel Lopez Obrador in September said that Mexico was interested in renewing the credit line. The fund at the time said that there had been no discussion about the size. Mexico pays a commitment fee for the access to the credit line, and the fee increases based on the amount available to borrow.Awaiting Argentina PlanAsked about Argentina, Werner said he’s open to President-elect Alberto Fernandez’s idea of a social pact, which would involve an agreement between businesses, labor unions and the government on salaries and prices in an effort to control inflation. He cited as an example the social pact that helped stabilize the Mexican economy in the 1990s, when he was an economist at the nation’s Finance Ministry and central bank.A social pact could “lend legitimacy to whatever policy package is put into place by having everybody at the table,” Werner said, but added that it should be used alongside other mechanisms. The IMF last year gave a record $56 billion loan to Argentina under Fernandez’s predecessor, Mauricio Macri, who lost last month’s election in part due to public outcry over the spending cuts put in place to meet targets in the IMF deal.Werner wouldn’t comment on potential changes in the accord, such as fiscal targets, disbursements or a possible debt haircut, before seeing details of Fernandez’s economic plans. IMF Managing Director Kristalina Georgieva stressed to Fernandez in a call on Tuesday the fund’s “readiness to engage.”“We don’t know what Argentina wants,” Werner said. “We are still waiting for more technical engagements to give us some signal of what the Argentinian government wants to undertake.”\--With assistance from Sydney Maki.To contact the reporters on this story: Eric Martin in Mexico City at emartin21@bloomberg.net;Patrick Gillespie in Buenos Aires at pgillespie29@bloomberg.netTo contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Jose Enrique Arrioja, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.




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Ocasio-Cortez: Trump was 'clearly engaged in extortion and bribery'

Ocasio-Cortez: Trump was 'clearly engaged in extortion and bribery'Ocasio-Cortez discussed the issue with Yahoo News on Capitol Hill on Tuesday as the third day of public hearings was being conducted in the Democrats’ ongoing impeachment inquiry.




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Expelled LSU Student Sentenced to Five Years in Fraternity Hazing Death

Expelled LSU Student Sentenced to Five Years in Fraternity Hazing DeathREUTERS/Sean GardnerThe former Louisiana State University student who was found guilty of negligent homicide for the hazing death of 18-year-old Phi Delta Theta pledge Max Gruver was sentenced to five years in prison on Wednesday.Jurors reportedly took just one hour to convict Matthew Naquin in July. The 21-year-old Texas native was also sentenced to three years of probation and 1,000 hours of community service. The judge ordered Naquin to write a letter of apology to the Gruver family, and for every year he is on probation he must go to three separate high schools and give a one-hour talk about hazing, according to WVLA-TV.He was expelled from LSU in the weeks following Gruver’s death.Gruver died of alcohol poisoning and aspiration—choking on his own vomit—after a hazing ritual called “Bible Study” at the fraternity house on Sept. 13, 2017. During the ritual, prosecutors said Naquin and other fraternity members ordered pledges to stand in a dark hallway facing a wall while loud music played; they were told to chug 190-proof liquor if they could not correctly answer questions about Phi Delta Theta, The Advocate reported.Witnesses reportedly testified during the trial that Naquin, whom authorities have said was a ringleader of the hazing ritual, targeted Gruver that night because he didn’t want him to join the fraternity. Just two days before Gruver’s death, fraternity brothers said they warned Naquin to tone down his extreme and dangerous interactions with pledges, according to court documents and testimony during the trial.When he died, Gruver’s blood-alcohol level was 0.495 percent—more than six times the state’s legal limit to drive, according to the local newspaper. Another pledge had testified during trial that he believed Gruver “had not had much experience with drinking.” A toxicology expert said on the stand that Gruver’s high blood-alcohol concentration led to “sleep, coma and death.” “There was no way his body could get through this,” said the expert, Patricia Williams. “He was a dead man walking at midnight.”Naquin’s attorney, John McLindon, argued during the trial that he was unfairly singled out by the prosecution and that Gruver continued to drink on his own after the hazing event.“It was a hazing event, but there were probably 10 other active members up there that night and at least five of them were handing out alcohol,” McLindon told The New York Times. “Matthew didn’t do anything differently from those boys, but he got picked out because he is very loud.”But East Baton Rouge District Attorney Hillar Moore III countered, in a separate interview with The Times, that Naquin “stood out” through the ferocity with which he tormented pledges that night.“Everyone kept saying he was the one who led everything, who made people drink more, who asked questions,” Moore said. “This is grain alcohol—this is 180-proof or 190-proof alcohol. It is what they put tissue samples in to study them in a lab, when you have to wear a hood.”Moore added: “We have never alleged that the defendant wanted him dead or wanted to kill him, but his actions led to this young man’s death.”Naquin has been separately charged with obstruction of justice after federal agents say he deleted nearly 700 files from his phone minutes after he learned from his attorney that a search warrant had been issued for his device. The FBI never successfully recovered the files. He has not been tried yet on that charge.After the trial, Max’s mother, Rae Ann Gruver, called the guilty verdict “justice for our son and for the man who caused his death.” Gruver was from Roswell, a suburb of Atlanta.“We want this to send a message to the country that hazing should not exist,” Stephen Gruver, Max's father, told The Advocate after the conviction. “It’s dangerous and we have to all work together to bring an end to hazing.”Three other fraternity brothers face misdemeanor hazing charges in the case, two of which have pleaded no contest. Phi Delta Theta has been banned from LSU’s campus until 2033. The school also reportedly convened a task force to study Greek life on campus in the aftermath of Gruver’s death.“Hazing is an irresponsible and dangerous activity that we do not tolerate at LSU,” a spokesman for the school said after the trial. “These tragedies, and the penalties that follow, can be prevented, and we have been working diligently to put more safeguards, education and reporting outlets in place for our students regarding hazing.”Read more at The Daily Beast.Got a tip? Send it to The Daily Beast hereGet our top stories in your inbox every day. Sign up now!Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.




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Half of Indiana's school districts close, thousands of teachers demand better pay on Red for Ed Action Day

Half of Indiana's school districts close, thousands of teachers demand better pay on Red for Ed Action DayMore than 15,000 people are expected to flood downtown Indianapolis on Tuesday for what could be the largest Statehouse rally in more than 20 years.




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Lam Calls for Peaceful End to Hong Kong Siege as Numbers Dwindle

Lam Calls for Peaceful End to Hong Kong Siege as Numbers Dwindle(Bloomberg) -- Hong Kong’s leader Carrie Lam has called for a peaceful resolution to a university siege that has transfixed the city and raised fears of a crackdown on scores of protesters who remain trapped in a campus surrounded by police.Lam said she had instructed police to try and resolve the situation at Hong Kong Polytechnic University peacefully and to not immediately arrest minors under the age of 18 who remain trapped there. Several dozen are believed to be left inside after some 600 protesters escaped or were evacuated overnight, including several hundred who were under 18 years old.“We’re extremely worried about the dangerous situation in the campus,” Lam said in a briefing on Tuesday morning. She added a peaceful resolution “can only be achieved with the full cooperation of the protesters, including, of course, the rioters. They have to stop violence, give up their weapons, and come out peacefully and take the instructions from police.”The city’s hospitals said later Tuesday they were overwhelmed by an influx of some 280 injured protesters coming from the campus, as police fired 1,458 rounds of tear gas the day before. PolyU requested that officers not enter the campus for the time being so that people who remain can be given the chance to leave in a peaceful and orderly manner, according to a statement on the school’s website that didn’t provide details of their condition.Running battles between police and protesters on Monday featured raging fires, tear gas and flaming vehicles. By the evening tens of thousands of demonstrators marched toward the university to aid those stuck in the campus, leading to more clashes throughout the night. Some managed to leave from the university in Kowloon by climbing over walls, while police arrested dozens of others on Monday -- sometimes tackling them to the ground or pounding them with batons.Lam Urges Besieged Protesters to Heed Police: Hong Kong UpdateThe government on Monday had warned those inside to surrender peacefully and urged others to stay away from the site as protesters pleaded for reinforcements to battle police. Medical personnel were allowed in to tend to the wounded, while university officials called for a negotiation and parents held signs saying “Save the Kids.”Hong Kong Financial Elites Shun Local Schools as Protests MountThe chaos again made Hong Kong look in television images more like a war zone than a financial hub. Although stocks finished the day higher after losing 5.6% last week, signs of disarray were evident: The government ordered schools to remain shut for a sixth day, a major tunnel linking Kowloon with Hong Kong Island remained closed and officials warned that they may need to scrap District Council elections scheduled for Sunday.“If the police want to go in and smash the movement, this is their opportunity,” said David Zweig, director of Center on China’s Transnational Relations and professor emeritus at The Hong Kong University of Science and Technology. “On the other hand, it could also be an opportunity to tone things down and start a dialog with university officials that could lead to a broader discussion.”“It can’t go on in this form forever,” Zweig said. “The world now sees Hong Kong as a mess.”Campus BattlegroundSecretary of State Michael Pompeo said the U.S. is “gravely concerned” about rising violence in Hong Kong and called on Lam to allow an independent probe of protest incidents -- one of the key demands of protesters. U.S. Senate Majority Leader Mitch McConnell urged President Donald Trump to speak out on behalf of the demonstrators.“The world should hear from him directly that the United States stands with these brave women and men,” McConnell said Monday afternoon on the Senate floor, where lawmakers are considering a bill supporting the demonstrators that would impose penalties on Beijing for infringing on the city’s autonomy.Police surrounded the university over the weekend after students fortified the campus with makeshift barricades and scattered debris in front of the nearby cross-harbor tunnel that connects the peninsula with Hong Kong Island.Protesters fired arrows from behind the barricades, injuring one officer, and threw scores of petrol bombs at officers who tried to sweep in. They also set police vehicles ablaze as officers warned protesters that they would use live rounds. Police kept up pressure, surrounding the campus, blocking exits and making dozens of arrests.Read the latest on Hong Kong’s protests“We have to take the risk,” said one 26-year-old protester surnamed Lee, who took part in battle. “We have no alternative.”Some of the most prominent members of the protest movement warned that the siege could end with widespread bloodshed.“Is the world going to witness bloody crackdown w/o stopping ruthless regime?” said Joshua Wong, who led the 2014 Occupy protests and has been one of the most visible demonstrators in what is now a leaderless movement.Over the weekend, Chinese troops exited their barracks in the former colony to help clear roadblocks, raising fears among the opposition that Beijing might directly intervene. On Tuesday, Lam downplayed the significance of People’s Liberation Army troops appearing on the streets of Hong Kong for the first time during the ongoing unrest.“It is not uncommon from time to time for the garrison to undertake voluntary and charitable activities in Hong Kong,” she said. “I would suggest that we do not over-interpret this particular act of voluntary involvement.”The Communist Party’s flagship People’s Daily newspaper said there was no room for compromise, and the editor-in-chief of the Global Times newspaper called for police to use live rounds if attacked.China further signaled it would take a hard line when a spokesman for the top office overseeing Hong Kong said a court ruling Monday that declared a mask ban unconstitutional challenged the authority of Beijing’s rule. The decision by the High Court marked a setback for Lam and raised questions about the limits of colonial-era emergency powers that she invoked for the first time in more than a half century to pass the measure.Chaotic StartOfficials in her administration pleaded on Monday with protesters to leave, saying the bill that sparked the protests allowing extraditions to China had been completely withdrawn. Demonstrators are still demanding an independent inquiry into police abuses and the right to nominate and elect their own leaders, even if they stand up to Beijing.“Realistically, we must put an end to violence,” said Matthew Cheung, Lam’s deputy. “Unless you’ve got a peaceful environment, law and order restored to law-abiding Hong Kong, you won’t have the environment, the ambiance to conduct dialogue.”Hong Kong Home Sales Plunge as Violent Protests Shut Down CityThe chaotic beginning to the workweek on Monday followed a previous week of unprecedented violence, with five straight days of chaos beginning with the shooting of a protester last Monday.The worsening violence prompted many major universities to cancel the entire semester and led to classes being canceled at Hong Kong’s pricey private schools. Countless major events -- including a major music festival and a Goldman Sachs anniversary event -- have been cancelled or postponed.“Some Hong Kong people have really lost patience with the radical protesters,” said Emily Lau, a veteran politician and former chairperson of the opposition Democratic Party, on Bloomberg Television. “But there are others who are very sympathetic, who will take to the streets in black to continue to support them. So it is a city that is split asunder.”‘Political Solution’Even with growing disenchantment about the increased violence, many white-collar professionals have flooded into the city’s financial district to voice support for the students.“We don’t really care about politics,” said one 40-year-old woman surnamed Cheung, who wore a blazer and an Apple watch, at a lunch time protest on Friday as crowds chanted “Fight for freedom! Stand with Hong Kong!” “But right now, they just want to show the world, the Hong Kong government, that we do care -- that we do want to fight for it, even though we’re not in the front lines, holding the umbrellas, fighting through tear gas.”As the violence worsens between protesters and police, the government has insisted it won’t yield to any further political demands. At the same time, there’s a growing sense that protester tactics are beginning to lead to fiercer confrontations, particularly as they dig in to hold territory like the PolyU campus.“This is a political problem requiring a political solution,” said Steve Vickers, a former head of the Royal Hong Kong Police Criminal Intelligence Bureau who is now chief executive officer of Steve Vickers and Associates, a political and corporate risk consultancy.“But in the end,” he added, “when the violence gets to a point where people are throwing hundreds of petrol bombs, and bows and arrows are wounding people, there comes a point when you can’t let that go on.”(Updates with injuries in fourth paragraph.)\--With assistance from Aaron Mc Nicholas, Natalie Lung, Fion Li, Chris Kay and Colin Keatinge.To contact the reporters on this story: Iain Marlow in Hong Kong at imarlow1@bloomberg.net;Shelly Banjo in Hong Kong at sbanjo@bloomberg.netTo contact the editors responsible for this story: Brendan Scott at bscott66@bloomberg.net, Daniel Ten Kate, Karen LeighFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.




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Special envoy Kurt Volker says 'most people' didn't see the distinction between Burisma and investigating former Vice President Biden

Special envoy Kurt Volker says 'most people' didn't see the distinction between Burisma and investigating former Vice President BidenSpecial envoy to Ukraine Kurt Volker said during questioning that "others didn't see the distinction" between Burisma and investigating former Vice President Biden.




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Adam Schiff asks Americans what kind of president they are prepared to accept

Adam Schiff asks Americans what kind of president they are prepared to acceptHouse Intelligence Committee Chairman Adam Schiff (D-Calif.) ended Tuesday's hearing by directly calling out the Republican lawmakers who continue to staunchly defend President Trump, and by posing a question to all Americans."My Republican colleagues, all they seem to be upset about with this is not that the president sought an investigation of his political rival, not that he withheld a White House meeting and $400 million in aid we all passed in a bipartisan basis to pressure Ukraine to do those investigations," Schiff said. "Their objection is that he got caught. Their objection is that someone blew the whistle, and they would like this whistleblower identified, and the president wants this whistleblower punished. That's their objection. Not that the president engaged in this conduct, but that he got caught."Americans, he continued, should care about this impeachment inquiry because it is a matter of national security, and they need to ask themselves: "Are we prepared to accept that a president of the United States can leverage official acts, military assistance, White House meetings, to get an investigation of a political rival? Are we prepared to say well, you know, I guess that's just what we should expect in a president of the United States. I don't think we want to go there."Schiff also suggested the Founding Fathers wouldn't approve, because when they "provided a remedy, that remedy being impeachment, they had the very concern that a president of the United States may betray the national security interests of the country for personal interests. They put that remedy in the Constitution not because they wanted to willy nilly overturn elections, no, because they wanted a powerful anti-corruption mechanism when that corruption came from the highest office in the land." Watch the full video below. More stories from theweek.com Ken Starr on the Sondland testimony: 'It's over' Sondland just obliterated Trump and put the entire White House in peril White House and Trump campaign officials are reportedly 'freaking out' about Sondland's testimony




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Trump expected to sign Hong Kong human rights legislation: source

U.S President Donald Trump is expected to sign legislation passed by Congress intended to support protesters in Hong Kong, a person familiar with the matter said on Wednesday, a move sure to anger China.


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New front opens in Australian bushfires, power cut to thousands

Electricity firms cut off power to thousands of people, more than 100 schools were closed and residents in high risk regions sought shelter on Wednesday as Australia's devastating bushfires opened up a new front.


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Taylor Swift, Lizzo, Lana Del Rey: Pop Stars (and Their Fans) Clap Back


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Dem lawmaker says it's his 'mission' to have Trump removed from office

Dem lawmaker says it's his 'mission' to have Trump removed from office“It’s about what he’s doing to our country and how he is corrupting our society,” said Rep. Al Green.




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Photos capture Trump’s notes following Sondland testimony

Photos capture Trump’s notes following Sondland testimonyPhotos captured President Trump’s notes as he made his first public appearance following impeachment testimony from Ambassador Gordon Sondland. Appearing on the White House lawn as he prepared for a visit to Texas, Trump had jotted down notes in marker on an Air Force One pad.




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General Motors sues Fiat Chrysler over bribes to auto union

General Motors sues Fiat Chrysler over bribes to auto unionGeneral Motors is suing Fiat Chrysler, alleging its rival benefitted from bribes to auto union officials that gave FCA an unfair benefit in labor talks, GM announced Wednesday. The lawsuit references guilty pleas by former FCA officials, who bribed former United Auto Workers officials, in a long-running case involving a UAW employee training program, that has tarnished the union's image. The suit comes only weeks after the UAW ended a lengthy strike at GM.




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Homeless Numbers in San Francisco Much Worse, According to City Data

Homeless Numbers in San Francisco Much Worse, According to City DataMany cities across California this year announced sharp increases in homelessness. Yet data from San Francisco suggest the real picture might be a lot worse.For years, city governments have measured homelessness by sending out volunteers on a single night to count, as best they could, the number of homeless people they found on the streets or in shelters. By this method San Francisco this year reported 8,011 homeless people, a 17% increase over 2017, the last time a count was conducted.But San Francisco has another, arguably more comprehensive, way of measuring homelessness, and the results are even more alarming.Over the course of a full year, the city counted twice as many homeless people -- 17,595 people, a 30% jump from the previous year.The data, which are rarely cited in debates on homelessness, come from a city database of homeless people who receive health care and other services from the city.The latest data are from the 2019 fiscal year, which ended in June. If people sought services multiple times during the course of the year they are counted only once.The 30% jump was by far the largest increase of the past eight years, according to the city's data. Rachael Kagan, the spokeswoman for the city's Department of Public Health, said this is partly because in the 2019 fiscal year the city conducted an assessment "blitz," proactively seeking out homeless people at shelters and hospitals.For around 1,272 people, it was the first time they were entered into the city's databases.There is no perfect way to measure homelessness, which by nature is transient. Kagan believes the higher numbers are the "most complete picture that we have" of homelessness. But she said it is still likely to be an underestimate."It does not include people who did not seek services, so it is still an incomplete picture," she said.This article originally appeared in The New York Times.(C) 2019 The New York Times Company




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Rashida Tlaib: Trump impeachment hearings 'very liberating'

Rashida Tlaib: Trump impeachment hearings 'very liberating'Rep. Rashida Tlaib, D-Mich., is among the Democrats most associated with impeachment. She says she's happy to see that the House hearings looking into President Trump's attempts to procure a Ukrainian investigation of former Vice President Joe Biden have finally gone public.




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Trump impeachment: Key witness Sondland says president ‘directed’ quid pro quo, in explosive testimony to congress

Trump impeachment: Key witness Sondland says president ‘directed’ quid pro quo, in explosive testimony to congressDonald Trump’s ambassador to the EU has delivered an explosive public testimony linking top White House officials and the president’s personal attorney to a “quid pro quo” involving Ukraine.Gordon Sondland said in his opening remarks that the highest-level officials working on US-Ukraine policy at the White House and US State Department “knew what we were doing and why” by encouraging Ukraine to launch investigations.




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California puts brakes on fracking permits in oil crackdown

California puts brakes on fracking permits in oil crackdownCalifornia Gov. Gavin Newsom cracked down on oil producers Tuesday, halting approval of hundreds of fracking permits until independent scientists can review them and temporarily banning new wells using another drilling method that regulators believe is linked to one of the largest spills in state history. The state Division of Oil, Gas and Geothermal Resources announced it will not approve new wells that use high-pressure steam to extract oil from underground. It’s the type of process Chevron uses at an oil field in the Central Valley that leaked more than 1.3 million gallons (4.9 million liters) of oil and water this summer.




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FBI seeks interview with CIA whistleblower

FBI seeks interview with CIA whistleblowerThe FBI recently sought to question the CIA whistleblower who filed a complaint over President Trump’s July 25 Ukraine call — a move that came after a vigorous internal debate within the bureau over how to respond to some of the issues raised by the complaint’s allegations and whether they needed to be more thoroughly investigated, according to sources familiar with the matter.




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Impeachment hearing hero: Woman desperately chugging coffee

Impeachment hearing hero: Woman desperately chugging coffeeRepublican or Democrat, there’s one thing most people could probably agree on during the impeachment hearings into President Trump: Coffee is necessary.




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American Airlines admitted a mid-air accident that knocked out 2 flight crew and forced an emergency landing was not caused by spilled soap

American Airlines admitted a mid-air accident that knocked out 2 flight crew and forced an emergency landing was not caused by spilled soapOn October 21 a flight from London to Philadelphia was forced to land in Dublin, Ireland, when two staff members were knocked unconscious.




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Prison guards arrested in connection with Jeffrey Epstein death

Prison guards arrested in connection with Jeffrey Epstein deathThe guards are accused of failing to conduct regular checks on Epstein, who hanged himself with a bedsheet in prison.




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Carolyn Maloney Elected First Woman to Lead House Oversight Panel


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James Wiseman of Memphis Can Return From Suspension in January


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Guardian identified for small child found wandering Sunday morning by Fort Myers police

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