Hundreds of Migrants in Florida in What Sheriff Calls ‘Crisis’

USA – Voice of America 

At least 500 migrants arrived in small boats along the Florida Keys over the last several days in what the local sheriff’s office described on Monday as a “crisis.”

Economic turmoil, food shortages and soaring inflation in Cuba and other parts of the Caribbean is spurring the most recent wave of migration. Over the weekend, 300 migrants arrived at the sparsely populated Dry Tortugas National Park, about 70 miles (113 kilometers) west of Key West. The park was closed so that law enforcement and medical personnel could evaluate the group before moving them to Key West, the park tweeted.

Separately, 160 migrants arrived on boats in other parts of the Florida Keys over the New Year’s Day weekend, officials said. On Monday, 30 people in two new groups of migrants were found in the Middle Keys.

In a news release, Monroe County Sheriff Rick Ramsay criticized the federal response to the uptick in migrant arrivals, saying they were stretching local resources. U.S. Border Patrol told the sheriff’s office that the federal response to some of the migrants arriving may have to wait a day, the news release said.

“Refugee arrivals require a lot of resources from the Sheriff’s Office as we help our federal law enforcement partners ensure the migrants are in good health and safe,” said Ramsay, whose office’s jurisdiction encompasses the Florida Keys. “This shows a lack of a working plan by the federal government to deal with a mass migration issue that was foreseeable.”

Officials at Dry Tortugas National Park said they expected it to be closed for several days because of the space and resources needed to attend to the migrants. The national park is at the southern tip of the continental U.S. — and attracts scuba divers and snorkelers for its coral reefs, nesting sea turtles, tropical fish and shipwrecks.

“Like elsewhere in the Florida Keys, the park has recently seen an increase in people arriving by boat from Cuba and landing on the islands of Dry Tortugas National Park,” the National Park Service said in a news release.

In addition to landing at the national park over the weekend, 160 other migrants arrived in the Middle and Upper Keys. At least 88 of the migrants are from Cuba, U.S. Customs and Border Protection said in a tweet.

U.S. Border Patrol and Coast Guard crews patrolling South Florida and the Keys have been experiencing the largest escalation of migrations by boat in nearly a decade, with hundreds of interceptions in recent months, mostly of people from Cuba and Haiti.

Read More 

Tesla reports 1.31 million deliveries in 2022, growth of 40% over last year

US Top News and Analysis 

In this article

TSLA

Tesla electric cars in Germany on March 21, 2022.
Sean Gallup | Getty Images News | Getty Images

Tesla just published its fourth-quarter vehicle production and delivery report for 2022.

Here are the key numbers.

Total deliveries Q4 2022: 405,278
Total production Q4 2022: 439,701
Total annual deliveries 2022: 1.31 million
Total annual production 2022: 1.37 million

Deliveries are the closest approximation of sales disclosed by Tesla. These numbers represented a new record for the Elon Musk-led automaker and growth of 40% in deliveries year-over-year.

However, the fourth quarter numbers fell shy of analysts’ expectations.

According to a consensus of analysts’ estimates compiled by FactSet, as of Dec. 31, 2022 Wall Street was expecting Tesla to report deliveries around 427,000 for the final quarter of the year. Estimates updated in December, and included in the FactSet consensus, ranged from 409,000 to 433,000.

Those more recent estimates were in line with a company-compiled consensus distributed by Tesla investor relations Vice President Martin Viecha. That consensus, published by electric vehicle industry researcher @TroyTeslike, said that 24 sell-side analysts expected Tesla deliveries of about 417,957 on average for the quarter (and about 1.33 million deliveries for the full year).

Tesla started production at two new factories this year — in Austin, Texas and Brandenburg, Germany — and ramped up production in Fremont, California and in Shanghai, but it does not disclose production and delivery numbers by region.

In the fourth quarter of 2022, Tesla said deliveries of its entry level Model 3 sedan and Model Y crossover amounted to 388,131, while deliveries of its higher end Model S sedan and Model X SUV amounted to 17,147.

In its third-quarter shareholder presentation, Tesla wrote: “Over a multi-year horizon we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, factory uptime, operational efficiency and the capacity and stability of the supply chain.”

The period ending Dec. 31, 2022 was marked by challenges for Tesla, including Covid outbreaks in China, which caused the company to temporarily suspend and reduce production at its Shanghai factory.

During the fourth quarter, Tesla also offered steep price cuts and other promotions in the U.S., China and elsewhere in order to spur demand, even though doing so could put pressure on its margins.

In a recent e-mail to Tesla staff, Elon Musk asked employees to “volunteer” to deliver as many cars to customers as possible before the end of 2022. In his e-mail, Musk also encouraged employees not to be “bothered” by what he characterized as “stock market craziness.”

Shares of Tesla plunged by more than 45% over the last six months.

In December, several analysts expressed concern about weakening demand for Tesla electric vehicles, which are relatively expensive compared with an increasing number of hybrid and fully electric products from competitors.

Along with competitors ranging from industry veterans Ford and GM to upstart Rivian, Tesla is poised to reap the benefits of Biden’s Inflation Reduction Act this year, which includes incentives for domestic production and purchases of fully electric cars.

Retail shareholders and analysts alike attributed some of Tesla’s falling share price in 2022 to a so-called “Twitter overhang.”

Musk sold billions of dollars worth of his Tesla holdings last year to finance a leveraged buyout of the social media business Twitter. That deal closed in late October. Musk appointed himself CEO of Twitter and has stirred controversy by making sweeping changes to the company and its social media platform.

Shares of Tesla started to rise again in the final days of December 2022, in anticipation of record fourth-quarter and full-year deliveries.

Correction: This story has been updated to reflect the correct numbers for Model 3 and Y, and Model S and X vehicle deliveries for the fourth quarter of 2022.

Read More 

I used DNA analysis to find my birth family and it sent me across three continents

(CNN) — When I sent DNA samples to genetic testing services last year searching for my birth family, I had no idea it would launch me on an adventure across three continents.

In 1961, I was adopted at birth in California. Over the years, I’ve searched for my birth family on and off, but have always been stymied by sealed records and tight-lipped officials. In the last decade, however, home DNA testing and easy online access to official records have changed the game.

I spit into plastic tubes (one for each of the two big players in this industry in the United States: 23andMe and Ancestry.com), dropped them in the mail, and waited, anxiously, for the results. When the email arrived, I was stunned.

After a lifetime believing I was a basic White American, I learned that was only half true. My birth mother was born in Iowa. But it turned out my father was North African.

I reached out to anonymous DNA matches through 23andMe and Ancestry’s messaging systems, but no one replied. Then came weeks of research using Ancestry.com and various public records databases until I was able to identify both my parents and find contact information for a handful of their close relatives.

I discovered my birth father had been born in the mid-1930s in Casablanca. Romantic visions of Bogart and Bergman (fictionally) escaping the Nazis swam in my head.

Records showed he had emigrated to the US in 1959 and ended up in San Francisco. My mother had been raised in San Diego, and also moved to San Francisco right after high school. But why had he left Morocco? What brought her to San Francisco? I had to know more.

The author, center, with newfound family connections at a July 2022 party held in Paris in his honor.

The author, center, with newfound family connections at a July 2022 party held in Paris in his honor.

Courtesy Tim Curran

First contact

After days of imagining the best and worst, I drafted scripts for what to say to genetically close family members who most likely had no idea I even existed. Then I apprehensively reached out.

To my great relief, my mother’s and father’s families both welcomed me with open arms — despite their shock at discovering I existed.

I learned quickly that both my biological parents had died, and was deeply disappointed I had forever missed my chance to meet them. Would things have been different if I’d searched harder earlier?

But I was thrilled that all their siblings were still alive.

From my new family, I pieced together a rough sketch of my parents’ stories: On opposite sides of the world, they had both butted heads with difficult parents and left home at the first opportunity. They both wound up in one of the most free-thinking places on Earth: San Francisco.

He worked as floor installer in the city’s North Beach neighborhood — where she was a cocktail waitress and dancer. I pictured them meeting while he installed floors in a nightclub where she was working.

By all accounts, it must have been a very brief affair. My father was living with a girlfriend, and my mother’s sister says she never once heard my mother discuss my father in any way. Other than the sister and her mother, no one else in her family was told she was pregnant. My father’s family says they are 100% certain he was never told, either.

There were other big surprises: I was told my mother never had another child — or even a serious boyfriend — for the rest of her life. On my father’s side, I was shocked to learn I had a half-brother and -sister and dozens of cousins in France and Morocco.

They invited me to visit. I booked a trip to meet my father’s huge, welcoming family.

The author's extended family owns property on a rocky promontory in Dar Bouazza, a coastal community just west of Casablanca.

The author’s extended family owns property on a rocky promontory in Dar Bouazza, a coastal community just west of Casablanca.

Tim Curran/CNN

‘I was warmly embraced’

In Paris, a cousin threw me an exuberant party at her sunny suburban home, where I was warmly embraced by the entire French branch of the family. They gave me insiders’ hints tailored to my interests about where to go and what to see off the beaten track.

At their recommendation, I spent an afternoon in a huge, beautiful city park in eastern Paris called Buttes-Chaumont. I ate dinner at the French equivalent of a working-class diner (a bouillon, named for the broth) called Julien. It was my third time in Paris — but now I saw it through new eyes, imagining myself as something of an honorary son of the city.

Morocco was another world entirely. I had never traveled to a Muslim country, or anywhere outside Europe or the Americas. The experience was a strange and magical combination of foreign adventure and comfort travel, buffered by family looking out for me.

I spent the first six days in the seaside resort town of Dar Bouazza, about 45 minutes from Casablanca, where my large Moroccan family owns a set of neighboring summer homes just yards from the beach. The houses are built on property my grandfather bought nearly a century ago (when the land was thought to be worthless) as a place to escape the summer heat of Casablanca.

A photo of Fez at sunset, taken from the roof of a riad in the Moroccan city.

A photo of Fez at sunset, taken from the roof of a riad in the Moroccan city.

Tim Curran/CNN

French is the family’s primary language, and my aunts and uncles don’t speak English. Some younger cousin was usually available to translate, but group conversations at the table or on the back deck were always in French, leaving me no way to join in. I resolved to learn conversational French by my next visit.

Despite the language gap, I got to know them all — the stern uncle, the motherly aunts, the prankster cousin — and recognized many of their personality traits and quirks — how boisterous, curious and sly they are — in myself.

I spent nearly a week wolfing down delicious, authentic Moroccan meals like lamb tajine (steam roasted with vegetables inside a ceramic dish of the same name) and pastilla (spiced, shredded chicken or game bird wrapped in filo pastry) cooked and served on seaside terraces by the small household staffs common in middle-class Moroccan homes.

Exploring a new homeland

Yet I wanted to see more of my father’s homeland, so I left on a tour of Fez and Marrakech arranged by a cousin and her husband, who happen to own a luxury travel company.

Those two cities were beautiful and awe-inspiring, alien yet weirdly familiar. I experienced them in a unique and very personal way thanks to my DNA journey: as a son just one generation removed from his father’s homeland.

Professional guides created tours personalized to my interests and my newly discovered family’s culture and history — right down to a side-trip to my family’s ancestral mausoleum in Fez.

I saw the things my father might have seen touring the cities’ colorful medinas (marketplaces) where the guides introduced me to shopkeepers by my new family name. I saw gorgeous mosques and unexpected sidelights such as Marrakech’s largest Jewish temple, Synagogue Lazama. I watched craftsmen at work, making pottery, leather goods and fabric just as it has been done for centuries.

The Roman ruins at Volubilis are remarkably pristine because of their isolation and the fact that they were unoccupied for nearly a thousand years.

The Roman ruins at Volubilis are remarkably pristine because of their isolation and the fact that they were unoccupied for nearly a thousand years.

Tim Curran/CNN

The highlight of the tour was a side trip to the ancient Roman ruins at Volubilis, between Fez and the Moroccan capital of Rabat. The city was abandoned by Rome around the 3rd century and was not excavated until the early 20th. Seeing well-preserved walls, foundations, and floor mosaics on site — something that simply cannot be seen in the Americas — was a superb experience for a history buff like me.

The tour was capped by a hike in the High Atlas Mountains to spend an afternoon with a local family who gave me a Berber-style cooking lesson, teaching me how to stew lamb and vegetables in a traditional Moroccan tagine.

The patriarch even loaned me one a djellaba, a traditional Moroccan outer robe, to wear for a photo, which felt both strange and strangely comforting — a perfect encapsulation of the whole trip.

The author and his host sample the results of his Berber cooking lesson.

The author and his host sample the results of his Berber cooking lesson.

Courtesy Tim Curran

DNA traveler beware

Getting a home DNA test can launch you on your own great adventure — intended or not.

Former CNN correspondent Samuel Burke created an entire podcast series in partnership with CNN Philippines, “Suddenly Family,” around the surprises — pleasant and otherwise — that can spring from DNA analysis.

“DNA testing can open up this Pandora’s Box that nobody in the DNA industry talks about,” he said.

Burke said some people just want to know about genetic health conditions they may carry. Many more are just looking to learn more about their ethnicity, “how Irish, how Jewish, how Native American they are.” But he said few realize the testing services will connect them to other people, sometimes in unexpected ways.

In Fez, Curran visited several workshops where fabrics, leather goods and ceramics are hand-crafted using ancient techniques and tools.

In Fez, Curran visited several workshops where fabrics, leather goods and ceramics are hand-crafted using ancient techniques and tools.

Tim Curran/CNN

Whether you know nothing about your family background, or think you know everything, there are likely to be surprises. Among them, Burke lists finding out a parent was unfaithful or that you’re the product of artificial insemination. Or you could discover you’re not biologically related to one of your parents.

Burke said being prepared is key to avoiding some of the pitfalls.

“Expect that you will find out something unexpected.” And he says that if you suspect something bad, you can opt out of sharing your results. Burke added the single best piece of advice he’s heard while reporting on DNA is “slow down.” Don’t become “hell-bent on solving the mysteries” and sharing your results as quickly as possible.

Whether or not your DNA testing has unexpected results, it can inspire some fascinating travel across the country or, as in my case, around the world.

What I learned on my adventure, however, is that the best part — even more than the places you visit — is the people you bond with, your new-found family who are like you, but also very different.

Top image: Tim Curran visited the Hassan II Mosque on a day-trip into Casablanca (Photo courtesy Tim Curran)

source

Dollar Tree Employee murdered with machete

Latest & Breaking News on Fox News 

A man is accused of murdering a Dollar Tree employee with a machete inside an Upper Sandusky, Ohio store on New Year’s Day. 

PENNSYLVANIA POLICE CHIEF KILLED IN SHOOTING, SUSPECTED GUNMAN KILLED

Officers received a call on Sunday for a man waving a weapon inside the store. He was gone by the time officers arrived on the scene where they found Keris L. Riebel, 22, dead

Officers arrested the suspect, Bethel M. Bekele, 27, several blocks away. Investigations revealed that the attacker entered the store, approached Riebel, and struck her several times with a machete. 

IDAHO MURDERS SUSPECT PULLED OVER TWICE ON CROSS-COUNTRY RACE HOME WITH DAD, LAWYER CLAIMS

The Ohio Bureau of Criminal Investigation responded and processed the scene while detectives with the Wyandot County Major Crimes Unit also began an investigation. Bekele has been booked under the charge of murder with, upon completion of the investigation, more charges likely incoming

 

Read More 

 

Ex-NFL star Boomer Esiason rips Patriots’ Mac Jones over alleged ‘d—–ness’ body language

Latest & Breaking News on Fox News 

It may not have been a pretty season but the New England Patriots are on the brink of making the playoffs behind a rock-solid defense and second-year quarterback Mac Jones.

Jones’ play has been far from outstanding. 

He missed some games due to injury and has only managed to pass for 2,753 yards and 11 touchdowns in 13 games. He’s only thrown for more than 300 yards in a game twice this season.

CLICK HERE FOR MORE SPORTS COVERAGE ON FOXNEWS.COM

For former NFL star Boomer Esiason, Jones’ body language is an issue. The one-time NFL MVP appeared on “The Greg Hill Show” on WEEI radio Monday and ripped the former Alabama standout.

“Here’s the thing that I really dislike about Mac Jones if you want to get to the root of it,” Esiason said. “His body language, his facial expressions, his gyrations on the field p—s me off. There’s a d—–ness to them. I don’t know how to explain it.

Esiason then compared Jones to seven-time Super Bowl champion Tom Brady and how the Tampa Bay Buccaneers quarterback “could be d—chey too at times” but backs it all up with his performance on the field.

SAQUON BARKLEY HEAPS PRAISE ON DANIEL JONES AS GIANTS CLINCH PLAYOFF BERTH

“So, all I’m saying is that, I don’t necessarily know that he’s earned the right to act the way that he does at times, like frustrated, looking at the coaches and screaming and yelling, putting his hands to his head,” Esiason added. “Body language for a quarterback is so important. And I hate when quarterbacks sulk on the sideline; they have to be above all of that. They have to have the backbone. They have to have the leadership bone. They have to be able to look guys in the face and know what they’re doing. Don’t come off with your hands in the air.”

WARNING: EXPLICIT LANGUAGE

Jones guided the Patriots to the playoffs last season after winning the starting quarterback role from Cam Newton in 2021.

In 30 games, Jones has 6,554 yards, 33 touchdowns and 21 interceptions with a 66.5 completion rate. He was a Pro Bowler in 2021 – no other running back, wide receiver or tight end made it nor did they make it in 2022.

Esiason was a four-time Pro Bowler and had weapons around him like Ickey Woods, Cris Collinsworth and Eddie Brown along with Hall of Famer Anthony Munoz blocking for him. Jones doesn’t have that around him on offense yet. 

 

Read More 

 

Jim Cramer: My worldview for the first half of 2023 and the stocks that will win

US Top News and Analysis 

Where did 2022 go so wrong and how can 2023 go right? I am constantly trying to show you how money managers work because — unlike almost everyone in “the business” — you can cherry-pick the parts that best suit your investing strategy. My goal for the Club has been simple and true: to replicate what I did as a successful money manager so you can do the same. You may have joined the Club to augment your knowledge. Maybe you wanted to be liberated from the dogma that says amateurs can’t invest on their own and should instead direct their money to the pros on Wall Street. Of course, I don’t want your money — although I am compensated by a television network that helps many make trading decisions. What I do want is to improve the inclination for regular folks to own individual stocks in addition to S & P 500 index funds. (Those funds, by the way, are faux passive in that they control what gets in and out of the vaunted index. That, plus lower fees, is why these options almost always beat the performance of active money managers.) I mention all of this because I passionately believe that you can beat the averages and chose when you want to pay taxes. This is exactly what I try to do for my own Charitable Trust, a trust that does not allow me to keep any realized income or dividends. Hopefully, you aren’t similarly restricted as it severely hurts overall performance. When I was running my hedge fund, which beat the S & P 500 for 14 years with an annual average of 24% after fees, I always sent an internal memo to the team that explained what I saw coming in the year ahead. This is that memo — but for the Club. How we got here The seeds of 2022, the worst year since 2008, were planted in November 2021 when the Federal Reserve decided to end its easy monetary policy and become far more restrictive. This decision and the Fed’s message were muddled by two things. First, the burst of the Covid omicron variant prompted the central bank to offer a less-harsh message to the markets. Second, the endless chatter about whether the Fed did too little or was too late (or both). Those kinds of arguments predominated and all they do is throw you off the scent. If you are managing your money, this kind of second-guessing is a waste of time. You must deal with the hand the Fed has given you. Why do you hear the fatuous chatter so often? Because it’s easy. All you need is an opinion. I don’t care one way or the other. I’m trying to make money. Omicron was a different matter. Public health is much tougher to divine. So many people I talk to are so critical of Fed Chairman Jerome Powell on this issue. It does not seem to matter that he got it far more right than Europe and China. Two of the main things we learned during 2022 was that China is not invincible and its dictatorship is both erratic and idiotic. Who turns down vaccines that work and save lives? Who chooses to doom the elderly? It’s important to recognize as we come out of 2022, we come out on top in the world. Our stock market comes out of 2022 better than any other. That’s the most important takeaway of 2022. Sticking to our doctrine The second big takeaway from 2022: If a company doesn’t make things and do stuff profitably, has a reasonable price-to-earnings ratio and returns capital to you in the form of dividends or buyback, it won’t work. Shares will go lower. That doctrine, which we started applying in late 2021, severely limited what could be owned — way more than I thought. It cordoned off so many profitless entities, everything from enterprise software and electric vehicle accoutrements to SPACs (special purpose acquisition companies) and anything crypto. Each has its disadvantages. Before the Fed pivot we measured enterprise software companies by the Rule of 40 — a shorthand formula invented by Fred Wilson, an old friend and chief investor and chairman of my old firm thestreet.com. It held that if your company is growing at a combined revenue growth and profit margin of 40% or greater, it’s a good investment. It didn’t matter how you reached that level. The company could be growing at 50% with a minus 10% profit margin, or at 30% with 10% profit margin. As long as it all added up to 40%, the company was golden. We used to do this stuff back in 1999, but we weren’t precise enough. The problem with that kind of analysis, which is really meant for venture capital investors and peaked before the dot-com bubble, is that there were too many companies that fit or almost fit the bill. The profitless companies today — like the dot-com stocks in 2000 — almost all disappointed and will continue to disappoint in 2023. That’s because they perform poorly in an inflationary environment and a tightening cycle that is ongoing. Our doctrine holds that money losers don’t belong in your portfolio. Our doctrine holds that the alternate version of greatness, the price-to-sales ratio, is of no value because we must now value companies by viability and growth. We can no longer assume that a company has time down the road to get to profitability. A shrinking universe of stocks What else does our doctrine eliminate? Many people asked me if the Trust would ever own crypto. The answer is no. Not only does it carry risk from being part of a fickle and (as we know now) rigged market, it also can’t be stored anywhere safe. There are hundreds of coins that have been made up, and they are all worthless and will be proven as such. SPACs are also ruled out. They have been revealed as a comical exercise in finding businesses that could never be bought public because they are so bad. The whole concept of the blank check is repugnant. You would never give anyone a blank check, would you? No, you’d never be that trusting or stupid. The doctrine also rules out any fad. Look at the stocks making new lows. I was walking through my town and saw an Amazon Rivian truck parked across the street. What a poster boy for the pivot: Rivian Automotive (RIVN) shares have fallen to $18 from $172. That’s simply 2000 all over again — the year of magical thinking and destruction. If you have anything like that in your portfolio, sell it. The markets are too disciplined now. I use Rivian as an example because Amazon is committed to buying anything they make, yet they are expected to lose money for a long time. This is not 2021, where the price-to-sales ratio seems cheap in the out years . It’s 2023 and who cares about the out years, we care about profit and Rivian can’t make it. Our discipline rules out pretty much every enterprise software company. There are just so many. It’s painful to look at them all. These were the darlings since 2010, which makes it harder to stop loving them. I am tempted to write that enterprise software is anything a regular person can’t understand. These companies are usually involved in making coding easy or obviating expensive workers. These can be good companies, but if they are profitless — and most are — I hate them. Mistakes made in 2022 Only enterprise software companies with CEOs that have actually bridged to profitability, not pledged to profitability already, are any good. That’s why we like cybersecurity company Palo Alto Networks (PANW) so much. CEO Nikesh Arora has gotten Palo Alto to that hallowed ground. We know this company can become extremely profitable on a generally accepted accounting principles (GAAP) basis, meaning how we judge companies in 2023, not non-GAAP adjusted nonsense as we did from 2010 to 2021. One of the mistakes we made was keeping Salesforce (CRM) in the portfolio. The market was unduly harsh to software companies with big cash flow but also high price-to-earnings ratios. We thought Salesforce would be immune from the stock dumpster because it is extremely profitable on a bunch of readings, especially operating cash flow. But its forward P/E of 27 was just too high for a market that appears to be favoring only stocks that are closer to the 17 P/E that the overall market clocks in for 2023 estimates. I was wedded to Salesforce when it was at $8 at the height of the Great Recession, only to be reminded that these are just pieces of paper and you can’t marry them. We also fell prey to the market’s newfound discipline with Nvidia (NVDA), a company with greatness but a stock with a high P/E of 44. It just didn’t matter how smart CEO Jensen Huang is, and he is the smartest CEO I have perhaps ever met. Like host Jeff Probst says to losers on the long-running “Survivor” reality show: “Sorry, I got nothing for you.” Brutal, just brutal. The odd thing, by the way, is that most venture capital companies are totally hung up on enterprise software, which is one of the real reasons they will find themselves in trouble in 2023. The market will not have an appetite for them. The venture capitalists, along with the private equity companies, have refused to recognize the pivot and would never adopt our doctrine. Unless they change their tune, it will cost them in 2023. The doctrine rules out all biotech companies — unless they make money. When the market lacked all discipline, the brokers flooded us with biotech. We just don’t seem to realize it because they are almost all going under. They don’t make things or do stuff at a profit, let alone all the other considerations. It rules out most Chinese stocks, which made up a big glob of initial public offerings in recent years. The Chinese government reserves the right to turn on or off profitability and even to buy stocks to get them higher. This is done mostly to suck in American capitalists, which deserve to be destroyed. Yet the brokers keep recommending them. That’s because, unknown to most, they pay the biggest fees and are the best source of IPO profit. Here’s what our discipline will wrestle with in 2023: financials. I am not talking about fintech, which will be overly regulated because of what happened to crypto. Also, because the traditional finance industry is trying so hard to destroy fintech — and will, by the way, succeed this year. Any way to untraditionally bank or give loans should fall by the wayside in 2023. But the “do stuff” part of our discipline will be challenged by the ability of banks to continue to thrive in a high-interest-rate environment where their own investments could be questioned. The Federal Deposit Insurance Corporation (FDIC) reports how much banks are underwater in unrealized investments and it is about $700 billion; way too high for my taste. We haven’t and don’t like any fintech and most banks, but have allowed ourselves to own Morgan Stanley (MS), which doesn’t have a problem, and Wells Fargo (WFC), which will benefit from reduced regulation. But we screwed up by not selling WFC much higher, thinking that its multiple was still too low. Something to watch this year. So all told, the bad news is our doctrine blocks more than half of the market. Maybe even more. 5 predictions for the first half of 2023 The good news is that we have a winning formula as demonstrated by our winners. So, with the admittedly detailed look at how we got here, what awaits us? Let’s talk about five factors. You might call them predictions, but I consider them our worldview that will inform us in the first six months of 2023. This is our usual timeframe for making stock decisions. 1. The Fed won’t make small rate hikes until it sees wage declines. Not wage stabilization, it’s too high, but actual declines. That can’t happen until there are meaningful layoffs. I have talked about this before. Understand, though, the depth of this criteria. We have all sorts of indicators for inflation like the producer price index and the consumer price index. In 2023, they will be distractions. We care about unemployment going higher, toward 4% or above, and aggressive, permanent layoffs, like the ones that stem from large-scale bankruptcies. Other than fraudulent ventures, such as Sam Bankman-Fried’s crypto firm FTX, we simply haven’t had any. Lots of people talk about the larger number of new cars and the lowering of car prices, or the glut of apartments and the potential collapse of rents, or even the year-over-year decline of housing prices. I have come to believe that those are of zero interest to the Fed. They are all creatures of a tight labor market and the tremendous savings of Americans — roughly $1 trillion today from about $2 trillion two years ago. Credit card debt and defaults are indeed rising, and that’s something that’s worrying the worrying class. But that’s not a factor beyond the usual borrowing woes. It won’t impact the banking system in 2023, which is too strong to be strung by those defaults. Friday’s jobs number can tell the tale. Once again, I emphasize that it’s not wage stabilization we are looking at, but wage declines. We have just lost so many workers at once, particularly the over 60 class, to Covid or a reassessment of life post-pandemic that we just don’t have enough to fill jobs. I had thought these people would come back to work when they realized that savings from the stock market and Social Security aren’t enough of a safety net. But I no longer believe that will change. We also have a paucity of lower-end workers, the result of tougher immigration laws, something I don’t see changing either. That leaves large-scale bankruptcies. Just decisions to freeze hiring aren’t enough. There are still not enough workers (white collar or blue collar) out there to reduce wages. And until there are, we will see more Fed tightenings, not at the same pace simply because that would take us to 6% in the blink of an eye. The federal funds rate can get to 5%, from current target range of 4.25 to 4.5%, on the low end after we see the closures and bankruptcies. The 2-year Treasury at 4.4% influences my thinking of a rate not much higher, or that predictive gauge would be at 5% now. Until we get to that level of joblessness, we will be chary with our capital. We will hold a higher rate of cash of roughly 10%, which means selling something to buy something, our usual defensive posture. 2. We don’t need new stock. Unlike so many in the industry who lament the lack of issuance of common stock, I think it’s fantastic. There are so few good private companies that haven’t already come public that we don’t need new shares. It just makes stock-picking harder. We want a limited and better selection, and the IPOs just get in the way. Plus the Federal Trade Commission and Justice Department are both inclined to block mergers. If you read the ruling that blocked Penguin Random House from buying Simon & Schuster, it’s clear the Justice Department has a winning hand in blocking even the least potent combination. And forget the FTC. Lina Khan, the head of the FTC, is an old-fashioned redistributionist who wants to block everything because she thinks all combinations are bad. Her thinking may not survive any rigorous view of antitrust if a company like Kroger (KR) wants to go to court. But that’s not the way of most corporate America, despite the endless pushing by greedy bankers and lawyers who don’t have enough work to do to maintain their admittedly lavish lifestyles versus pretty much the rest of the country’s work force. That’s factual, not judgmental and is important because we don’t want to lose money speculating on the closure of a Microsoft-ActivisionBlizzard deal. Despite the small tax on buybacks, companies will remain aggressive buyers of their own shares because they think they are cheap. The good news here is two-fold: We will have better earnings per share than most prognosticators think, even if we have a pretty bad slowdown; and the discipline of the market — our doctrine — makes it easier to ferret out winners from losers. The “don’t own” part of our mantra make things easy for us as it usually includes companies that endlessly issue stock because of compensation. They got away with that too long. It’s over. 3. Bonds are more attractive than stocks. This is distinctively negative: The Fed will keep taking rates up to where CDs or Treasurys are more compelling than most stocks. Money will be exiting the stock market all year into the safer and somewhat greener pastures. I can blame no one reading this who doubts the ownership of a large chunk of stock. I don’t think you can go wrong with owning a 2-year piece of paper that will allow you to make the current federal funds rate without risk versus owning stocks that may be weighed down by our rigorous criteria of picking winners. There are a lot more losers out there, including expensive companies in the S & P 500 — expensive on earnings estimates in a slowdown, which is the likely scenario. Trust me, the Fed will win, but at a cost that most will find less than compelling for most stocks in the 2000 some odd equities that define a broader class than the S & P 500. That trust has heavily influenced our decision to stay invested in oils that will most likely continue to pay high dividends as long as oil remains above $70, even as their earnings may not be high enough to avoid estimate cuts. That’s what their P/Es of 6 to 9 tell us. We’ve never had any oil companies with discipline before, so we don’t know what it will be like. It is entirely possible that the world will slow to the point that oil goes down to $60 but that would include no resurgence in China in 2023, unlikely because of enforced herd immunity and an end to the war in Ukraine, which is a total wild card. Suffice it to say I think oil remains high enough to maintain these dividends. But our conviction is being tested pretty regularly, especially with natural gas in essential free fall. 4. Companies with pricing power will win. In a deflationary environment that the Fed is furiously engineering, does a company have the ability to pass some of its costs on to consumers. Optimal situation: drug stocks, which have no economic sensitivity and can keep raising prices with impunity as our current president and his regime seem not focused on this activity. Nadir situation: the entire class of 2020-2021, which were companies based on low interest rates and initially a lack of competition until competition became endless and first-mover advantage became nil. 5. Look for benefactors of Washington’s spending. Who benefits from the federal infrastructure money coming, the result of a total lack of discipline by both Congress and the Biden administration? In the work I have done, I recognize that virtually none of this money has gone anywhere as Washington is still writing criteria. But the stock market is going to anticipate that this money is going to go to the states this year and they will refine their rules and begin to reward contractors by the end of the year. I can’t see anything started, let alone built, in 2023. But the companies in the chain that will be building need equipment to meet infrastructure demand. These are reasons why I remain attracted to companies like Nucor (NUE), Deere (DE) and Caterpillar (CAT), which are all winners in an infrastructure-driven economy. The spending in Congress has made it difficult for the Fed to rein in growth, but its bond selling and fed-rate increases are more than up to do the job. Some trimming left to do Now, the tough part. We know what went wrong in 2022. We know what to look for in 2023. Where does that leave us? Unfortunately, we still have culling to do. Can we justify owning Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Meta (META), Microsoft (MSFT) and Nvidia (NVDA)? No. I think Apple could pre-announce disappointing earnings, something I have stressed to you endlessly. But the stock has come down to $129 from $182 and that decline is in line with probably three-quarters of the losses that Apple’s stock could have. Own it, don’t trade it as demand is greater than supply. Alphabet trades at 18 times earnings and the earnings are real, but based on a stabilization of advertising. That can’t happen until the slowdown ends. Call me concerned, as this must be the year that Alphabet has discipline over earnings and hiring, something it didn’t care enough about in 2022 despite its protestations. Amazon is a mess and defines a stock we would normally sell. But I have faith that CEO Andy Jassy will take the tough action that rationalizes its workforce and cuts spending. We have been basing an awful lot on that happening. If they aren’t disciplined, we will have to be. Meta is telling. The P/E is expected to increase this year because of a decline in earnings. So far, the metaverse has been a bust, no economic value whatsoever. It’s a small position, but one kept because I struggle to believe that founder and CEO Mark Zuckerberg could be this oblivious to what’s happening. His inability to buy anything — the Feds are even blocking a tiny exercise option for Meta users — is trapping him into growing by shrinking. Take WhatsApp public for a valuation of $100 billion. Or stopping Meta bleeding or allow us to work without headsets. It’s difficult to sell if something doesn’t happen in the next five months. Oddly, Microsoft is the most comfortable of the list simply because it is the best run and most likely to beat estimates. That’s what allows us to keep it. You might see some profitless young companies beat sales estimates or reach small Non-GAAP profitability, but that won’t mean much in 2023. Managers will be drawn to the one large-cap stock that can fulfill old goals. That said, it’s a scale-out as it gets closer to $300, given the fact it defies our doctrine. Nvidia is the one I am most concerned about. What if the federal government decides its most complex chips can’t be sold anywhere outside the U.S. because they could end up in the hands of the Chinese? This one keeps me up at night and I sleep so little I can’t have that happen. Most of the rest of the portfolio fits the doctrinal analysis laid out earlier. Yes, Bausch (BHC) must be dealt with. I know it has options, but I am still waiting for a call back, something that better happen in 2023 although I think the ability to continue to bill for Xifaxin, it’s most important drug, may make it a mistake to sell down here. I don’t think we have enough aerospace, which is in secular growth mode because of a lack of new aircraft. I fear Boeing (BA) and its management team and prefer Raytheon Technologies (RTX), which also has a great defense portfolio. I don’t think we have enough agricultural names, which is still too in bull market mode as 13% of the world’s grain has been taken off the market because of the Russians. Deere, which also has infrastructure, can change that. In light of what I said, we need more infrastructure, which draws me to the 4 times earnings Nucor. I’m confident that’s a pretty ridiculous P/E. How do we get there, how do we buy these new stocks if we don’t want to put that much more money to work? By selling tech, which is still too big in the portfolio. Lots of people ask me where the markets will finish at the end of the year. That’s a parlor game not worth playing. Suffice it to say, we just don’t know until we see the whites of the Fed’s eyes. That involves the layoffs I described as commodity inflation is already going in the right direction. If we know when wages would fall then we know that we can be more aggressive now. We don’t, so why do so? I will save commentary about individual stocks for our next Club meeting this month. Sorry for going on too long, but I always used to go long for my hedge fund — at least when I had my best performances. Let’s hope the same for the new year! (See here for a full list of the stocks in Jim Cramer’s Charitable Trust is long.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

A woman poses for pictures in front of the giant, seven-foot-tall numerals for “2023”, as it arrives for the December 31 Times New Year’s Eve celebrations, at Times Square in New York City, U.S., December 20, 2022. 
Eduardo Munoz | Reuters

Where did 2022 go so wrong and how can 2023 go right?

I am constantly trying to show you how money managers work because — unlike almost everyone in “the business” — you can cherry-pick the parts that best suit your investing strategy. My goal for the Club has been simple and true: to replicate what I did as a successful money manager so you can do the same.

Read More 

[World] North Korea: What we can expect from Kim Jong-un in 2023

BBC News world 

Image source, Getty Images

Image caption,

North Koreans celebrating New Year’s Eve in the capital Pyongyang

North Korea had a record-busting 2022.

It fired more missiles than ever before in a single year. In fact, a quarter of all missiles North Korea has ever launched hit the skies in 2022. It was also the year that Kim Jong-un declared that North Korea had become a nuclear weapons state and that its weapons were here to stay.

This has raised tensions on the Korean peninsula to their highest since 2017, when then US President Donald Trump threatened North Korea with “fire and fury”.

So, what comes next?

Nuclear weapons development

In 2022, North Korea made significant progress on its weapons. It began the year by testing short-range missiles designed to hit South Korea, followed by mid-range ones that can target Japan.

By the end of the year it had successfully tested its most powerful intercontinental ballistic missile to date – the Hwasong 17, which in theory is capable of reaching anywhere on the US mainland.

Mr Kim also lowered his threshold for using nuclear weapons. After announcing in September that North Korea had become an irreversible nuclear weapons state, he revealed that these weapons were no longer designed just to prevent war, but that they could be used pre-emptively and offensively, to win a war.

As the year drew to a close, he gathered the members of his ruling Workers’ Party, to set out his goals for 2023.

Top of his list is to “exponentially increase” the production of nuclear weapons. This must include, he said, the mass production of smaller, tactical nuclear weapons, which could be used to fight a war against South Korea.

This is the most serious development, according to Ankit Panda, a nuclear weapons expert at the Carnegie Endowment for International Peace.

Image source, KCNA

Image caption,

North Korea launched its most powerful ICBM to date in late 2022

To make tactical nuclear weapons, North Korea first must produce a miniaturised nuclear bomb, which can be loaded onto a small missile. The world is yet to see proof that Pyongyang has been able to do this. The intelligence community spent most of 2022 waiting for it to test such a device, but the test never came – 2023 may well be the year.

Other items on Mr Kim’s new year list are a spy satellite, which he claims will be launched into orbit this spring, and a sturdier solid-fuelled ICBM, which could be fired at the US with less warning than his current model.

We can therefore assume 2023 will have a distinctly 2022 feel, with Pyongyang continuing to aggressively test, refine and expand its nuclear arsenal, in defiance of UN sanctions.

Indeed, less than three hours into the new year it had already conducted its first missile test.

But, Mr Panda says, “most missile launches in the coming year may not be tests, but training exercises, as North Korea now prepares to use its missiles in a possible conflict”.

Any talking?

With such an extensive list of goals to work through, it is unlikely the North Korean leader will choose this year to return to talks with the US. The last round of denuclearisation negotiations collapsed in 2019, and ever since Mr Kim has shown no sign of wanting to talk.

One line of thinking is that he is waiting until he has maximum leverage. Not until he has proven beyond doubt that North Korea is capable of inflicting destruction on the US and South Korea, will he return to the table, to negotiate on his terms.

Instead, over the past year, North Korea has drawn closer to China and Russia. It could well be in the process of fundamentally changing its foreign policy, said Rachel Minyoung Lee, who worked as a North Korea analyst for the US government for 20 years, and is now with the Open Nuclear Network.

“If North Korea no longer views the US as necessary for its security and survival, it will profoundly impact the shape and form of future nuclear negotiations,” she said.

Tensions on the peninsula

In the meantime, a volatile situation is developing on the Korean peninsula.

For every perceived “provocation” by the North, South Korea – and sometimes the United States – retaliates.

This began in May 2022, with the arrival of a new South Korean president, who promised to be tougher on North Korea. President Yoon Suk-yeol is guided by the belief that the best way to stop the North is to respond with military strength.

He re-started large-scale joint military exercises with the United States, against which the North protested and launched more missiles. This set off a tit-for-tat cycle of military action, which has involved both sides flying warplanes near to their border, and firing artillery into the sea.

Image source, KCNA

Image caption,

In his new year address Mr Kim vowed to exponentially increase the production of nuclear weapons

Last week, the situation escalated, when the North unexpectedly flew five drones into South Korean airspace. The South failed to shoot them down, exposing a weak spot in its defences and triggering concern among ordinary South Koreans, who are usually unfazed by the North’s activities.

The president vowed the South would retaliate and punish the North for every provocation.

Chad O’Carroll, CEO of Korea Risk Group, an analysis service which monitors North Korea, predicts that in 2023, this could likely lead to a direct confrontation between the two Koreas, which could even result in deaths.

“Responses by either the North or South could escalate to the point where we see the exchange of actual fire, intentional or otherwise,” he said.

One mistake or miscalculation and the situation could spiral.

Inside North Korea

Just as pressing a question is what does 2023 hold for the people of North Korea?

They have been subjected to three years of strict pandemic-related border closures. Even trade was suspended in an attempt to keep the coronavirus out, which humanitarian organisations believe has led to severe shortages of food and medicine. Last year, in a rare admission, Mr Kim spoke of a “food crisis”.

Then in May 2022, North Korea admitted its first outbreak of the virus, but mere months later claimed to have defeated it.

So will 2023 be the year it finally reopens its border with China, and allows people and supplies back in?

Image source, KCNA

Image caption,

In November 2022 Mr Kim publicly revealed his daughter for the first time

China’s reopening brings hope. North Korea is reportedly vaccinating people living along the border in preparation, but given its precarious healthcare, Ms Lee is cautious.

“Barring an emergency, such as its economy on the brink of collapse, it is unlikely North Korea will fully reopen its borders until the pandemic can be considered over globally, particularly in neighbouring China,” she said.

One more development to watch for is clues about who will lead North Korea after Mr Kim. His succession plan is unknown, but last year he publicly revealed one of his children for the first time – a girl, thought to be his daughter Kim Chu-ae.

She has been pictured now at three military events, with more photos released on New Year’s Day, leading some to speculate whether she is the chosen one.

Of course, North Korea is anything but predictable, and 2023 looks set to be as unpredictable and unstable a year as the last.

 

Read More 

Idaho murder suspect’s former student says behavior changed after slayings: ‘He seemed preoccupied’

Latest & Breaking News on Fox News 

Bryan Kohberger was on the tail end of his first semester as a PhD student in Washington State University’s criminal justice program when he allegedly broke into a house in Moscow, Idaho, and stabbed four college students to death on Nov. 13. 

The brutal slayings reportedly didn’t stop Kohberger from attending class at WSU’s Pullman campus, where he worked as a TA and was described as a tough grader whose disposition and teaching style changed in recent weeks. 

“Definitely around then, he started grading everybody just 100s. Pretty much if you turned something in, you were getting high marks. He stopped leaving notes. He seemed preoccupied,” Hayden Stinchfield, a student in one of Kohberger’s classes, told CNN. 

“The couple times that he did come after, or around that time period, he had a little more facial hair, stubble, less well-kept. He was a little quieter.” 

UNIVERSITY OF IDAHO MURDERS TIMELINE: WHAT WE KNOW ABOUT THE SLAUGHTER OF FOUR STUDENTS

Another criminology student in one of Kohberger’s classes, Joey Famularo, told the Spokesman-Review that Kohberger “always seemed a little bit on edge.”

“We just assumed he was kind of shy,” Famularo told the local newspaper. 

Kohberger received a bachelor’s degree in 2020 and a Master of Arts in Criminal Justice in 2022 from DeSales University, which is located in eastern Pennsylvania

The FBI and local police arrested him around 1:30 a.m. on Friday at his parents’ home in Albrightsville, Pennsylvania. He had driven home with his dad in mid-December and was pulled over twice along the way, according to his public defender. 

Kohberger’s office and home are on WSU’s campus in Pullman, which is about eight miles away from the home in Moscow, Idaho, where Kaylee Goncalves, 21, Madison Mogen, 21, Ethan Chapin, 20, and Xana Kernodle, 20, were stabbed to death between 3 a.m. and 4 a.m. on Nov. 13.

Authorities in Idaho charged him with four counts of first-degree murder and felony burglary. He is expected to waive extradition during a court hearing on Tuesday afternoon. 

Fox News’ Michael Ruiz contributed to this report. 

 

Read More 

 

[World] Russia’s war drains Ukraine’s rich list of power

BBC News world 

Image source, Getty Images

Image caption,

Shakhtar Donetsk FC owner Rinat Akhmetov carried by the players

For decades, Ukraine’s super-rich businessmen have wielded enormous economic and political power within their home country. However, since the Russian invasion, Ukraine’s most infamous oligarchs have lost billions in revenue.

Has the reign of the Ukrainian oligarchs finally come to an end?

Ukraine’s richest man – 56-year-old Rinat Akhmetov – is for many the epitome of an oligarch.

The son of a coal miner turned self-made billionaire, he is known across Ukraine as “the King of Donbas.”

As well as owning huge swathes of the steel and coal industry in the east, including the Azovstal steelworks which now lies in ruins, he also owns Shakhtar Donetsk FC, one of the country’s best football teams, and until recently one of the country’s main TV channels.

But beyond their extraordinary wealth, Ukraine’s oligarchs are also renowned for wielding political power.

In 2017, London-based think tank Chatham House said they posed “the greatest danger to Ukraine”.

Through a vast network of allies and loyal MPs, Ukraine’s oligarchs have repeatedly influenced the passing of laws for the benefit of their own business empires.

President Volodymyr Zelensky called them “a group of people who think they are more important than lawmakers, government officials or judges”.

But like so many ordinary civilians, since the beginning of the Russian invasion in the east of Ukraine back in 2014, they have had their businesses blown apart by missiles and their properties lost to the Russian occupation.

Many felt that as Ukraine’s richest man Mr Akhmetov should have done more from the very beginning to stamp out separatism fuelled by Russia in his home region.

As Russia’s influence backed by military power spread in Donbas, he told his factories to sound their sirens in protest. He also issued statements critical of the separatists.

Image source, Getty Images

Image caption,

A Russian serviceman patrols near Mr Akhmetov’s Azovstal steel plant in Mariupol

But as far as funding and supporting the resistance, he was criticised for taking too little action. Especially when compared to another Ukrainian tycoon, billionaire Ihor Kolomoisky.

In March 2014, he was appointed governor of Dnipropetrovsk Region, south-east Ukraine.

As the conflict escalated, Mr Kolomoisky pumped millions into Ukraine’s volunteer battalions. He offered bounties for capturing Russian-backed militants and supplied the Ukrainian army with fuel.

But then, in 2019, he found himself at loggerheads with President Zelensky’s predecessor, Petro Poroshenko.

Parliament had recently passed a law which resulted in Mr Kolomoisky losing control over an oil company. His response? Turning up at the oil company’s headquarters with men allegedly wielding machine guns.

But as the war ground on in the east, and with the loss of yet more factories, mines and fertile farmland, the demise of Ukraine’s oligarchs was well under way.

The next blow came in late 2021, when Ukraine passed what was known as the “de-oligarchisation bill”.

President Zelensky’s new law defined an oligarch as someone who met three of the following four conditions:

Holding influence over the media or politicsOwning a monopolyMaking millions of dollars a year.

All those who qualified were exposed to extra checks and banned from funding political parties.

To avoid being put on the Zelensky list, Rinat Akhmetov immediately sold all his media assets.

But then came Russia’s dramatic escalation of the conflict – the invasion of Ukraine in February 2022.

The war has only intensified the loss of earnings for Ukraine’s super-rich. But will their demise strengthen Ukraine’s democracy?

“Absolutely,” says Sevgil Musayeva, editor-in-chief of popular news website Ukrainska Pravda. “This war is the beginning of the end for oligarchs in Ukraine.”

“The de-oligarchisation law was one of the first major triggers of their demise,” says Serhiy Leshchenko, formerly one of Ukraine’s most prominent investigative journalists and now adviser to President Zelensky’s chief-of-staff.

“But as the war escalated, it made the oligarchs’ life even more difficult,” he tells the BBC. “They have been forced to focus on survival rather than domestic politics.”

Now, says Ms Musayeva, it is up to Ukraine’s civil society and anti-corruption institutions to prevent the emergence of new oligarchs. And, of course, the very survival of democracy in Ukraine depends on the outcome of the war with Russia.

Produced by Claire Jude Press.

 

Read More 

Former Pope Benedict XVI lies in state in St. Peter's Basilica ahead of funeral


Rome
CNN
 — 

The lying-in-state of former Pope Benedict XVI, who died Saturday at the age of 95, began Monday in St. Peter’s Basilica in Vatican City ahead of his funeral later this week.

Benedict, who was the first pontiff in almost 600 years to resign his position, rather than hold office for life, passed away on December 31 at a monastery in Vatican City, according to a statement from the Vatican.

He was elected Pope in April 2005, following John Paul II’s death.

The former Pope’s body was moved from the monastery to St. Peter’s Basilica on Monday morning, where it was laid out for the faithful to bid farewell, the Vatican said. Nearly 40,000 people have paid homage to former pontiff as of 2 p.m. local time (8 a.m. ET) Monday, according to Vatican police.

Italian Prime Minister Giorgia Meloni and President Sergio Mattarella were among those to pay their respects as Benedict lay in state.

VATICAN CITY - APRIL 24:  Pope Benedict XVI leads his inaugural mass in Saint Peter's Square on April 24, 2005 in Vatican City. Thousands of pilgrims attended the mass led by the 265th Pope of the Roman Catholic Church. (Photo by Franco Origlia/Getty Images)

Watch Pope Benedict’s most memorable moments

Mourners waiting in line in St. Peter’s Square told CNN they wanted to pay tribute to the former Pope.

“We’re just here to pray, to give thanks to God for the life of Pope Benedict,” said Paul, a student from Scotland.

“Apart from his theology, which was very important for the Church, I think all the time that he spent in his retirement praying for the Church has been a very big testimony for all of us.”

Benedict’s funeral will be held at 9:30 a.m. local time on Thursday in St. Peter’s Square in Vatican City, according to the director of the press office of the Holy See, Matteo Bruni. The funeral will be led by Pope Francis. In line with Benedict’s wishes, his funeral will be “simple,” Bruni said.

Francis paid tribute to his predecessor while leading the Angelus prayer on Sunday.

People wait in line to pay their respects to former Pope Benedict in Vatican City on January 2, 2023, ahead of his funeral on Thursday.

Benedict's lying-in-state started Monday in St. Peter's Basilica.

“In particular, this salute is to the Pope Emeritus Benedict XVI, who yesterday morning passed away. We salute him as a faithful servant of the gospel,” he said.

Benedict was known to be more conservative than his successor, Pope Francis, who has made moves to soften the Vatican’s position on abortion and homosexuality, as well as doing more to deal with the sexual abuse crisis that has engulfed the church in recent years and clouded Benedict’s legacy.

He stunned the Catholic faithful and religious experts around the world in 2013 when he announced plans to step down from his position as Pope, citing his “advanced age.”

In his farewell address, the outgoing Pope promised to stay “hidden” from the world, but he continued to speak out on religious matters in the years following his retirement, contributing to tensions within the Catholic Church.

His death prompted tributes from political and religious leaders including US President Joe Biden, British Prime Minister Rishi Sunak and the Dalai Lama.

(FILES) This file picture taken on December 29, 2012, in St.Peter's square at the Vatican shows Pope Benedict XVI saluting as he arrives to the ecumenical christian community of Taize during their European meeting. Pope Benedict XVI on February 11, 2013 announced he will resign on February 28, a Vatican spokesman told AFP, which will make him the first pope to do so in centuries. AFP PHOTO / FILES / ALBERTO PIZZOLI        (Photo credit should read ALBERTO PIZZOLI/AFP via Getty Images)

Pope Benedict XVI did something no Pope had done in 600 years

source