In swing-state Pennsylvania, Latino-majority city embraces chance to sway 2024 election

READING, PA — Religion and politics frequently overlap in Reading, an old industrial city in one of the most pivotal swing states of this year’s presidential election.

In Pennsylvania, there is early precedent for this kind of thing. The state began as a haven for Quakers and other European religious minorities fleeing persecution. That includes the parents of Daniel Boone, the national folk hero born just miles from Reading, a town where the Latino population is now the majority.

Today, the Catholic mayor is also a migrant — and the first Latino to hold the office in Reading’s 276-year history. Mayor Eddie Moran is keenly aware of the pivotal role Pennsylvania could play in the high-stakes race, when a few thousand votes in communities like his could decide the future of the United States.

“Right now, with the growing Latino population and the influx of Latinos moving into cities such as Reading, it’s definitely an opportunity for the Latino vote to change the outcome of an election,” Moran says. “It’s not a secret anymore.”

A community of spirituality — and Latinos

In Reading, the sky is dotted with crosses atop church steeples, one after the other. Catholic church pews fill up on Sundays and many stand for the services. Elsewhere, often in nondescript buildings, evangelical and Pentecostal congregations gather to sing, pray and sometimes speak in tongues.

Outside, salsa, merengue and reggaeton music (often sung in Spanglish) blast from cars and houses along city streets first mapped out by William Penn’s sons — and that now serve a thriving downtown packed with restaurants proudly owned by Latinos.

This is a place where, when the mayor is told that his town is 65% Latino, he takes pride in saying: “It’s more like 70%.”

They believe in their political sway. A Pew Research Center survey conducted in 2022 found that eight in 10 Latino registered voters say their vote can affect the country’s direction at least “some.”

On a recent Sunday, Luis Hernandez, 65, born in Puerto Rico, knelt to pray near the altar at St. Peter the Apostle Catholic Church. Later, walking out after Mass, Hernandez said he’ll vote for Trump — even on the very day of the former president’s criminal convictions related to hush money for a porn star.

“Biden is old,” Hernandez says, and then reflects on how Trump is only a few years younger. “Yes, but you look at Trump and you see the difference. … Biden’s a good man. He’s decent. But he’s too old.”

In the weeks after he spoke, many more Americans would join in calls for Biden to withdraw from the race after his debate debacle, which crystallized growing concerns that, at 81, he’s too old.

Immigration is a key topic

It’s not just about Biden’s age or debate performance. It’s also, Hernandez says, about the border crisis. He says too many immigrants are arriving in the United States, including some he considers criminals. And, he adds, so much has changed since his Dominican-born father arrived in the 1960s — when, he says, it was easier to enter and stay in America.

For some, there are other issues as well.

“It’s the economy, immigration and abortion,” says German Vega, 41, a Dominican American who became a U.S. citizen in 2015. Vega, who describes himself as “pro-life,” voted for Trump in 2020 and plans to do so again in November.

“Biden doesn’t know what he’s saying. He doesn’t know what he’s doing, and we have a country divided,” Vega says. Trump is “a person of character. … He looks confident. He never gives up; he’s always fighting for what he believes.”

Of course, there are some here who just don’t favor taking sides — except if it’s for Jesus. Listen to Pastor Alex Lopez, a Puerto Rican who cuts hair in a barber shop on the first floor of his home on Saturdays, and preaches on the second floor on Sundays.

“We’re neutral,” he says. “We just believe in God.”

A city with deep industrial roots resurges

Reading was once synonymous with iron and steel. Those industries cemented the creation of the Reading Railroad (an early stop on the Monopoly gameboard) that helped fuel the Industrial Revolution and became, in the late 19th century, one of the country’s major corporations.

Today, the city of about 95,000 people, 65 miles northwest of Philadelphia, has a fast-increasing population. However, it is one of the state’s poorest cities, with a median household income of about $44,000, compared to about $72,000 in Pennsylvania.

Reading is 67% Latino, according to U.S. Census figures, and home to high concentrations of people of Dominican and Puerto Rican heritage — as well as Colombians and Mexicans, who own restaurants and other businesses around town.

Political candidates are taking notice of Reading’s political and economic power. The 2020 presidential election in Pennsylvania was decided by about 82,000 votes, and — according to the Pew Research Center — there are more than 600,000 eligible Latino voters in the state.

It’s true that Reading still leans mostly Democratic — Biden crushed Trump in the city by a margin of about 46 percentage points in 2020. However in that election, voting-age turnout in the city (about 35%) was significantly lower than the rest of the state (about 67%).

But the Trump campaign doesn’t want to miss out on the opportunity to turn it around. It recently teamed up with the Republican National Committee and Pennsylvania GOP to open a “Latino Americans for Trump” office in a red-brick building near the Democratic mayor’s downtown office.

Moran has made a plea to Biden and other Democrats to take notice and visit Reading before the election. It’s crucial, he says.

“I think that it’s still predominantly Democratic,” he says. “But the candidates need to come out and really explain that to the community.”

One development, Moran says, is that religious leaders are now less hesitant to get involved in politics.

“Things change, even for churches,” he says. Clergy “realize the importance that they hold as faith-based leaders and religious leaders and they’re making a call of action through their congregations.”

The message: Get out and vote

A few blocks from St. Peter’s, a crowd gathers inside First Baptist Church, which dates to the late 19th century.

In a sign of Reading’s changing demographics, the aging and shrinking congregation of white Protestants donated the building to Iglesia Jesucristo es el Rey (Church Jesus Christ is the King), a thriving Latino congregation of some 100 worshippers who have shared the building with First Baptist for nearly a decade.

Pastors Carol Pagan and her husband Jose, both from Puerto Rico, recently led prayer. At the end of the service, microphone in hand, the pastors encourage parishioners to vote in the election — irrespective of who they choose as the president.

“The right to vote is,” Carol Pagan says before her husband chimes in: “a civic responsibility.”

After the service, the congregation descends to the basement, where they share a traditional meal of chicken with rice and beans.

“I believe the principle of human rights have to do with both parties — or any party running,” Carol Pagan says. “I always think of the elderly, of the health system, of health insurance, and how it shouldn’t be so much about capitalism but more rights for all of us to be well.”

Both of the Pagans make clear that they won’t vote for Trump. They’re waiting, like others, for circumstances that might lead Biden to withdraw, so they can support another Democratic candidate.

“It’s our duty to shield that person with prayer — it doesn’t matter if that person is a Democrat or a Republican,” Carol Pagan says. “We owe them that.”

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Climate change, population growth may threaten global food security

nairobi, kenya — The combination of climate change and a growing world population may threaten global food security. As the United Nations marks World Population Day, changes in agriculture, especially in Africa, may be the only way forward.

The global population is expected to grow over the next 60 years, from 8.2 billion today to 10.3 billion in the 2080s. Much of that growth will occur in Africa, where many countries still have high fertility rates.

The United Nations Population Fund said climate change is expected to exacerbate global inequalities and trigger national and international migration.

U.N. agencies say 1 billion of the 1.3 billion people living in Africa struggle to afford healthy diets and hunger worsened between 2019 and 2022.

Food needs grow, farmland shrinks

Africa’s farmland has been shrinking because of persistent drought, while the growing population leaves less space to farm.

Chris Ojiewo, principal scientist at the International Maize and Wheat Improvement Center, said African farmers need to produce a lot of food in small spaces to feed the growing population.

“We cannot even think of a human way … or ethical way to stop population growth, so let it grow but let us people able to produce more within a small area,” said Ojiewo. “For example, where we are able to produce only one ton of maize per hectare, why don’t we work and that is what we are doing to improve this productivity to go beyond 1 ton to 2 to 3 to 4 to 5 to 10 tons per hectare, considering developing varieties but also production systems that enable us to produce in the intensified system but also to produce even when there is drought.”

Speaking at a conference in Mexico this week, Ann Vaughan, deputy assistant administrator of the U.S. Agency for International Development, said scientific research and technology can help farmers cope with climate change and assist them in cultivating diverse crops.

“To help make sure we are accelerating smart innovations so that farmers are getting access so even in the face of horrific drought, they are still able to produce food for themselves and their families,” said Vaughan. “… what that looks like is making sure we have the right science, the right seeds, the right private sector partners who are pulling and creating a demand for these types of seeds, diversifying so that you are not just growing maize but you are also growing cowpeas and other things which are more resilient to climate change and the brighter type of practices so that you are mixing intercropping and having less tilt.”

Initiative promotes sustainable practices

In 2010, the U.S. government launched Feed the Future, an initiative aimed at addressing the causes of hunger and poverty in developing countries worldwide.

The program improved African agriculture systems by promoting sustainable practices that considered climate challenges. That helped increase economic opportunities, employment and trade.

In some African countries, the dominance of maize crops as the primary source of food has worried experts. The crop relies on rain, and climate change is causing unpredictable rainfall patterns.

African farmers must change when and what they grow to produce enough food, said Ojiewo.

“Ensuring that production and productivity continue, whether in season or off-season, does not necessarily mean relying 100 percent on rain-fed agriculture,” said Ojiewo. “Diversification, as I mentioned here, does not mean overlying on one single crop for population survival. I know many countries are relying on maize in terms of cereals and ignoring some of the other crops that will fit into these systems.”

Due to increasing drought in several African countries, farmers are urged to cultivate crops such as cassava, sorghum, pigeon peas, and pearl millet, which are resilient to unpredictable and harsh conditions.

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Library of Congress awards prize for American fiction to James McBride

NEW YORK — The Library of Congress has awarded a lifetime achievement prize to James McBride, whose acclaimed novels include The Heaven & Earth Grocery Store, Deacon King Kong and The Good Lord Bird. 

Librarian of Congress Carla Hayden announced Thursday that McBride, whose story lines have ranged from the crusades of abolitionist John Brown to a Brooklyn neighborhood in the 1960s, is this year’s winner of the Library of Congress Prize for American Fiction. The award, previously given to Marilynne Robinson and Don DeLillo among others, is given to an American author who excels as a prose stylist and creative thinker. 

“I’m honored to bestow the Library of Congress Prize for American Fiction on a writer as imaginative and knowing as James McBride,” Hayden said in a statement. “McBride knows the American soul deeply, reflecting our struggles and triumphs in his fiction, which so many readers have intimately connected with. I, also, am one of his enthusiastic readers.” 

McBride, 66, said in a statement that he wished his mother were alive to hear of his prize. He then joked, “Does it mean I can use the Library? If so, I’m double thrilled.” 

McBride has been among the country’s most honored authors in recent years, winning a National Book Award for Good Lord Bird, the Kirkus Prize for The Heaven & Earth Grocery Store and the Carnegie Medal for Deacon King Kong, which Oprah Winfrey chose for her book club. In 2016, he was given a National Humanities Medal. 

On August 24, he will discuss The Heaven & Earth Grocery Store at the National Book Festival in Washington, D.C., a gathering hosted by the Library of Congress. 

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Oil tanker held by Iran for over a year heads toward international waters

DUBAI, United Arab Emirates — An oil tanker held by Iran for over a year after being seized amid tensions between Tehran and the United States was sailing Thursday toward international waters, tracking data showed.

The Marshall Islands-flagged tanker Advantage Sweet traveled toward the Strait of Hormuz, where it was seized in April 2023 by Iran’s navy while carrying $50 million worth of oil from Kuwait for Chevron Corporation. That’s according to tracking data analyzed by The Associated Press, which also listed the vessel’s destination at Khor Fakkan in the United Arab Emirates, which has been the first port of call for other vessels leaving Iranian detention.

Iran did not acknowledge the ship’s departure. It came after an Iranian court on Thursday ordered the U.S. government to pay over $6.7 billion in compensation over a Swedish company stopping its supply of special dressings and bandages for those afflicted by a rare skin disorder after Washington imposed sanctions on the Islamic Republic.

Iran’s government initially said it seized the Advantage Sweet because it hit another vessel, a claim not supported by any evidence. Then Iranian officials linked the Advantage Sweet’s seizure to the court case that was decided Thursday.

A report by the state-run IRNA news agency described the $6.7 billion order as being filed on behalf of 300 plaintiffs, including family members of victims and those physically and emotionally damaged. IRNA said about 20 patients died after the Swedish company’s decision.

Epidermolysis bullosa is a rare genetic condition that causes blisters all over the body and eyes. It can be incredibly painful and kill those afflicted. The young who suffer from the disease are known as “butterfly children” as their skin can appear as fragile as a butterfly’s wing.

The order comes as U.S. judges have issued rulings that call for billions of dollars to be paid by Iran over attacks linked to Tehran, as well as those detained by Iran and used as pawns in negotiations between the countries — something Iran has responded to with competing lawsuits accusing the U.S. of involvement in a 2017 Islamic State group attack. The United Nations’ highest court also last year rejected Tehran’s legal bid to free up some $2 billion in Iranian Central Bank assets frozen by U.S. authorities.

In 2018, then-President Donald Trump unilaterally withdrew the U.S. from Iran’s 2015 nuclear deal with world powers, apparently sparking the Swedish company to withdraw from the Iranian market. Iran now says it locally produces the bandages.

Chevron, based in San Ramon, California, has maintained that the Advantage Sweet was “seized under false pretenses.” It has since written off the cargo as a loss.

The U.S. Navy has blamed Iran for a series of limpet mine attacks on vessels that damaged tankers in 2019, as well as for a fatal drone attack on an Israeli-linked oil tanker that killed two European crew members in 2021.

Tehran denies carrying out the attacks, but a wider shadow war between Iran and the West has played out in the region’s volatile waters. Iranian tanker seizures have been a part of it since 2019. The last major seizure came when Iran took two Greek tankers in May 2022 and held them until November of that year.

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Ukraine, China front and center of NATO 75th anniversary summit

NATO allies on Wednesday pledged to support Ukraine on an “irreversible” path to integration while calling on China to cease all support for Russia’s war effort against Kyiv. This as new fighter jets are set to patrol the skies of Ukraine. VOA Pentagon correspondent Carla Babb has the details.

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Judge may end Giuliani’s bankruptcy, exposing him to lawsuits

new york — A U.S. judge on Wednesday said he would likely end bankruptcy for Rudy Giuliani, a onetime lawyer for former President Donald Trump. The move would enable lawsuits against Giuliani for defamation, sexual harassment and other claims to proceed in other courts.  

U.S. Bankruptcy Judge Sean Lane said at a court hearing in White Plains, New York, that he would rule Friday on competing requests from Giuliani – who was New York City’s mayor from 1994 through 2001 – and his creditors about the future of his bankruptcy.  

Giuliani, 80, filed for bankruptcy protection in December after a Washington, D.C., court ordered him to pay $148 million to two Georgia election workers that he falsely accused of rigging votes in the 2020 presidential election, which Democrat Joe Biden won.  

The bankruptcy prevented the election workers from collecting on that judgment, while freezing other lawsuits stemming from Giuliani’s work for Trump, as he sought to overturn his loss in the 2020 election. 

Last week, Giuliani asked to convert his personal bankruptcy case into a straightforward liquidation, which would force him to sell nearly all of his assets. One group of creditors asked Lane to appoint a trustee to take over Giuliani’s finances and businesses, which could lead to a lengthy and contested bankruptcy liquidation, while another group said Giuliani should be kicked out of bankruptcy altogether.  

All three options pose significant risks for Giuliani. 

Lane said dismissal was likely the best option, given the difficulties the court has had in getting straight answers from Giuliani about his finances. A trustee would likely face the same problems getting Giuliani’s cooperation, while incurring additional expenses that would reduce Giuliani’s ability to pay creditors, Lane said.  

“I’m concerned that the difficulties we’ve encountered on transparency will continue,” Lane said.  

A dismissal of his bankruptcy would allow Giuliani’s creditors to resume lawsuits against him, but it would also give him more freedom to appeal the $148 million defamation judgment that forced him to seek bankruptcy protection.  

“We believe that the debtor’s best chance of getting an appellate determination would be dismissal,” Giuliani attorney Gary Fischoff said during Wednesday’s court hearing. 

Lane previously stopped Giuliani from spending money on the appeal while he was bankrupt, saying his Chapter 11 filing had paused litigation on both sides.  

Rachel Strickland, representing the former Georgia election workers, Wandrea “Shaye” Moss and her mother, Ruby Freeman, said Giuliani should be kicked out of bankruptcy so her clients can try to collect on their judgment against him.  

Giuliani “regards this court as a pause button on his woes while he continues to live his life unbothered,” Strickland told Lane.  

Moss and Freeman, who are Black, faced a deluge of racist and sexist messages, including threats of lynching, after Trump and his allies spread false claims that they were engaged in vote fraud. 

A committee representing Giuliani’s other creditors asked Lane to instead appoint a trustee to take over Giuliani’s finances and businesses, like his podcasting engagements and coffee promotions. Committee attorney Phil Dublin said ending the bankruptcy now would create a “race to the courthouse” among the many people who have sued Giuliani.  

Giuliani’s other creditors include former employee Noelle Dunphy, who has accused Giuliani of sexual assault and wage theft, and the voting machine companies Dominion and Smartmatic, who have also sued Giuliani for defamation. Giuliani has denied the allegations. 

In addition to the civil lawsuits, Giuliani is facing criminal charges in Georgia and Arizona for aiding Trump’s efforts to subvert the 2020 election results, and his false claims about the election have caused him to lose his license to practice law in New York. 

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Handbook prepared for Trump to take direct control of government bureaucracy

If former U.S. president Donald Trump wins the November presidential election, he may seek to place the entire federal bureaucracy under direct presidential control. That move is outlined in a playbook crafted by more than 100 conservative organizations for a prospective second Trump term. VOA’s chief national correspondent Steve Herman reports. VOA footage by Adam Greenbaum.

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In ‘Rust’ trial, Alec Baldwin accused of breaking gun rules; defense blames experts

SANTA FE, New Mexico — A New Mexico prosecutor on Wednesday said Alec Baldwin broke “cardinal rules” of gun safety in the 2021 killing of “Rust” cinematographer Halyna Hutchins while his lawyer said he was failed by firearms experts. 

The 66-year-old Baldwin, on trial in Hollywood’s first on-set shooting fatality in three decades, took notes at the defense table and listened calmly to opening statements in his involuntary manslaughter trial. The trial is largely unprecedented in U.S. history, holding an actor criminally responsible for a gun death during filming. 

A New Mexico jury of 12 and four alternates — 11 women and five men — heard prosecutor Erlinda Johnson outline arguments that Baldwin disregarded safety during filming of the low-budget movie before pointing a gun at Hutchins during a rehearsal, cocking it and pulling the trigger as they set up a camera shot on a set southwest of Santa Fe. 

“The evidence will show that someone who played make believe with a real gun and violated the cardinal rules of firearm safety is the defendant, Alexander Baldwin,” Johnson said. 

Baldwin’s wife Hilaria Baldwin sat in the second row of the public gallery, his brother Stephen Baldwin in front of her. 

His lawyer Alex Spiro pointed to “Rust” armorer Hannah Gutierrez — head of gun safety — and first assistant director Dave Halls — responsible for overall set safety. Both have been convicted in the shooting, and Spiro said they did not check the rounds in the gun to ensure it was safe for Baldwin to use.  

“There were people responsible for firearms safety but actor Alec Baldwin committed no crime,” said Spiro. 

Hutchins was killed, and director Joel Souza wounded when Baldwin’s reproduction 1873 Single Action Army revolver fired a live round, inadvertently loaded by Gutierrez. 

Since a police interview on Oct. 21, 2021, the day of the shooting, Baldwin has argued the gun just “went off.”  

In an ABC News interview two months later, Baldwin told George Stephanopoulos he did not pull the trigger. A 2022 FBI test found the gun was in normal working condition and would not fire from full cock without the trigger being pulled. 

Spiro said during his opening arguments that no one saw Baldwin “intentionally pull the trigger,” but that it was the responsibility of firearms safety experts to ensure a firearm was safe for an actor “to wave it, to point it, to pull the trigger, like actors do.”  

State prosecutors charged Baldwin with involuntary manslaughter in January 2022. They dropped charges three months later after Baldwin’s lawyers presented photographic evidence the gun was modified, arguing it would fire more easily, bolstering the actor’s accidental discharge argument. 

Prosecutors called a grand jury to reinstate the charge in January after an independent firearms expert confirmed the 2022 FBI study. 

FBI testing broke the gun, and Baldwin’s lawyers will tell jurors that destruction of the weapon prevented them from proving the gun was modified. 

Armorer Gutierrez, whose job on the set of “Rust” included managing firearms safely, was convicted of involuntary manslaughter in March for loading the live round.

Prosecutors will have to persuade jurors Baldwin is also guilty of willful and reckless criminal negligence.

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Astronauts confident Boeing space capsule can safely return to Earth

CAPE CANAVERAL, Florida — Two astronauts who should have been back on Earth weeks ago said Wednesday that they’re confident that Boeing’s space capsule can return them safely, despite breakdowns.

NASA test pilots Butch Wilmore and Suni Williams launched aboard Boeing’s new Starliner capsule early last month, the first people to ride it. Leaks and thruster failures almost derailed their arrival at the International Space Station and have kept them there much longer than planned.

In their first news conference from orbit, they said they expect to return once thruster testing is complete on Earth. They said they’re not complaining about getting extra time in orbit and are enjoying helping the station crew.

“I have a real good feeling in my heart that the spacecraft will bring us home, no problem,” Williams told reporters.

The two rocketed into orbit on June 5 on the test flight, which was originally supposed to last eight days.

NASA ordered the Starliner and SpaceX Dragon capsules a decade ago for astronaut flights to and from the space station, paying each company billions of dollars. SpaceX’s first taxi flight with astronauts was in 2020. Boeing’s first crew flight was repeatedly delayed because of software and other issues.

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US-built pier will be put back in Gaza for several days to move aid, then permanently removed

WASHINGTON — The pier built by the U.S. military to bring humanitarian aid to Gaza will be reinstalled Wednesday to be used for several days, but then the plan is to pull it out permanently, several U.S. officials said. It would deal the final blow to a project long plagued by bad weather, security uncertainties and difficulties getting food into the hands of starving Palestinians.

The officials said the goal is to clear whatever aid has piled up in Cyprus and on the floating dock offshore and get it to the secure area on the beach in Gaza. Once that has been done, the Army will dismantle the pier and depart. The officials spoke on condition of anonymity because final details are still being worked out.

Officials had hoped the pier would provide a critical flow of aid to starving residents in Gaza as the nine-month-long war drags on. But while more than 8.6 million kilograms of food has gotten into Gaza via the pier, the project has been hampered by persistent heavy seas and stalled deliveries due to ongoing security threats as Israeli troops continue their offensive against Hamas in Gaza.

The decision comes as Israeli troops make another push deeper into Gaza City, which Hamas says could threaten long-running negotiations over a cease-fire and hostage release, after the two sides had appeared to have narrowed the gaps in recent days.

U.S. troops removed the pier on June 28 because of bad weather and moved it to the port of Ashdod in Israel. But distribution of the aid had already stopped due to security concerns.

The United Nations suspended deliveries from the pier on June 9, a day after the Israeli military used the area around it for airlifts after a hostage rescue that killed more than 270 Palestinians. U.S. and Israeli officials said no part of the pier itself was used in the raid, but U.N. officials said any perception in Gaza that the project was used may endanger their aid work.

As a result, aid brought through the pier into the secure area on the beach piled up for days while talks continued between the U.N. and Israel. More recently, the World Food Program hired a contractor to move the aid from the beach to prevent the food and other supplies from spoiling.

The Pentagon said all along that the pier was only a temporary project, designed to prod Israel into opening and allowing aid to flow better through land routes — which are far more productive than the U.S.-led sea route.

And the weather now is projected only to get worse.

The pier was damaged by high winds and heavy seas on May 25, just a bit more than a week after it began operating, and was removed for repairs. It was reconnected on June 7, but removed again due to bad weather on June 14. It was put back days later, but heavy seas again forced its removal on June 28.

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Biden launches NATO summit with sober warning about global threats

U.S. President Joe Biden on Tuesday welcomed NATO leaders and heralded the alliance’s 75th anniversary while making the case for peace through strength amid the largest challenge to peace Europe has faced in decades. Other administration officials made similar arguments for bolstering defense to fight global threats. VOA White House correspondent Anita Powell reports from Washington

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New York City targets hundreds of illegal marijuana stores

New York City officials are contending with a surge of illegal marijuana shops that have appeared on nearly every corner of the Big Apple due to cannabis legalization. Aron Ranen reports.

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Federal Reserve’s Powell says US making ‘modest’ progress on inflation

Washington — The U.S. Federal Reserve is making “modest” progress in its inflation fight, the head of the U.S. central bank told lawmakers Tuesday, on the first of two days of testimony in Congress.

When prices surged in the wake of the COVID-19 pandemic, the Fed responded by hiking interest rates to a two-decade high as it attempts to cool down the U.S. economy and return inflation to its long-term target of two percent.

Inflation has eased significantly since it peaked in 2022, but progress stalled in the first quarter of this year, effectively putting the Fed’s fight on pause.

The data in the second quarter has been more encouraging, prompting some cautious optimism from some policymakers in recent weeks.

Speaking in Washington on Tuesday, Fed Chair Jerome Powell told lawmakers on the Senate Banking Committee that the most recent readings “have shown some modest further progress” since the first quarter of the year.

“More good data would strengthen our confidence that inflation is moving sustainably toward two percent,” he added, according to prepared remarks.

The Fed is widely expected to hold interest rates again when it meets to set interest rates later this month, but could begin cutting rates in September.

Futures traders have assigned a probability of more than 75% that the Fed will make its first rate cut by September.

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NATO alliance meets under cloud over President Biden’s future

President Joe Biden welcomes members of the newly enlarged NATO alliance this week for a summit aimed at planning for Ukraine’s future defense — and, some observers say, “Trump-proofing” it if Biden loses the November poll amid growing doubts over his future. VOA White House correspondent Anita Powell reports from the White House.

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Paramount, Skydance merge, ending Redstone family reign

NEW YORK — The entertainment giant Paramount will merge with Skydance, closing out a decades-long run by the Redstone family in Hollywood and injecting desperately needed cash into a legacy studio that has struggled to adapt to a shifting entertainment landscape. 

It also signals the rise of a new power player, David Ellison, the founder of Skydance and son of billionaire Larry Ellison, the founder of the software company Oracle. 

Shari Redstone’s National Amusements has owned more than three-quarters of Paramount’s Class A voting shares through the estate of her late father, Sumner Redstone. She had battled to maintain control of the company that owns CBS, which is behind blockbuster films such as “Top Gun” and “The Godfather.” 

Just weeks after turning down a similar agreement with Skydance, however, Redstone agreed to a deal on terms that had not changed much. 

“Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king,” said Redstone, who is chair of Paramount Global.

The new combined company is valued at around $28 billion. In connection with the proposed transaction, which is expected to close in September 2025 pending regulatory approval, a consortium led by the Ellison family and RedBird Capital will be investing $8 billion. 

Skydance, based in Santa Monica, California, has helped produce some major  

Paramount hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and installments of the “Mission Impossible” series. 

Skydance was founded in 2010 by David Ellison and it quickly formed a production partnership with Paramount that same year. If the deal is approved, Ellison will become chairman and chief executive officer of what’s being called New Paramount. 

Ellison outlined the vision for New Paramount on a conference call about the transaction Monday. In addition to doubling down on core competencies, notably with a “creative first” approach, he stressed that the company needs to transition into a “tech hybrid” to stay competitive in today’s evolving media landscape. 

“You’ve watched some incredibly powerful technology companies move into the … media space and do so very successfully,” Ellison said. He added that it was “essential” for New Paramount to chart a similar course going forward. 

That includes plans to “rebuild” the Paramount+ streaming service, Ellison noted — pointing to wider goals to expand direct-to-consumer business, such as increasing engagement time on the platform and reducing user churn. He also said that the company aims to transition to more cloud-based production and continue the use of generative artificial intelligence to boost efficiency. 

Executives also outlined further restructuring plans for New Paramount on Monday’s conference call, with chairman of RedBird Sports and Media Jeff Shell noting that they had identified some $2 billion in cost efficiencies and synergies that they’ll “attempt to deliver pretty rapidly.” 

Shell and others addressed the declining growth of linear TV. Flagship linear brands will continue to represent a big chunk of the company’s operations, but learning how to run this portion of business differently will be key, he said. 

Paramount’s struggles

The on-again, off-again merger arrives at a tumultuous time for Paramount, which has struggled to find its footing for years and its cable business has been hemorrhaging. In an annual shareholder meeting in early June, the company also laid out a restructuring plan that included major cost cuts. 

Leadership at Paramount was also volatile earlier this year after its CEO Bob Bakish, following several disputes with Redstone, was replaced with an “office of the C.E.O,” run by three executives. Four company directors were also replaced. 

Paramount is one of Hollywood’s oldest studios, dating back its founding in 1914 as a  distributor. Throughout its rich history, Paramount has had a hand in releasing films — from “Sunset Boulevard” and “The Godfather,” to “Raiders of the Lost Ark” and “Titanic.” 

The studio also distributed several early Marvel Cinematic Universe films, including “Iron Man” and “Thor,” before the Disney acquisition. In addition to “Mission: Impossible” and “Top Gun,” Paramount’s current franchises include “Transformers,” “Star Trek” and “Jackass.” 

While Paramount has not topped the annual domestic box office charts for over a decade, the wild box office success of “Top Gun: Maverick” in 2022 (nearly $1.5 billion worldwide) was an important boon to both movie theaters and the industry’s pandemic recovery. 

Still, its theatrical output has declined somewhat in recent years. Last year it released only eight new movies and came in fifth place for overall box office at around $2 billion — behind Universal (24 films), Disney (17 films), Warner Bros. and Sony. 

Movie plans

This year the release calendar is similarly modest, especially with the absence of “Mission: Impossible 8,” which was pushed to 2025 amid the strikes. The studio has had some successes, with “Bob Marley: One Love” and “A Quiet Place: Day One,” and still to come is Ridley Scott’s “Gladiator” sequel. 

The National Association of Theatre Owners, a trade organization that represents over 35,000 screens in the U.S., said in a statement Monday that it plans to look closely at the details of the merger with an eye toward whether it will produce more or less theatrical releases. 

“We are encouraged by the commitment that David Ellison and the Skydance Media team have shown to theatrical exhibition in the past,” said Michael O’Leary, president and CEO of the National Association of Theatre Owners. “A merger that results in fewer movies being produced will not only hurt consumers and result in less revenue, but negatively impact people who work in all sectors of this great industry — creative, distribution and exhibition.” 

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US voters mixed on Biden staying in race 

U.S. President Joe Biden says he is staying in the race for reelection against former President Donald Trump after Biden struggled in their first debate. VOA correspondent Scott Stearns looks at what U.S. voters think about the president’s continuing candidacy.

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