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Wall Street bonus pot surges to record-high $47.5 billion, but the outlook is dim 

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  • Employment in New York’s securities industry reached the highest level in three decades at more than 200,000 workers, reported state Comptroller Thomas DiNapoli on Wednesday. And along with sky-high employment, the total estimated 2024 bonus pool among New York Stock Exchange member firms is the largest on record since 1987. But looming uncertainty due to federal policy is muddying the industry outlook for 2025.

Wall Street is back and profits are soaring. And according to a new report, so are bonuses.

New York State Comptroller Thomas P. DiNapoli reported on Wednesday that Wall Street’s annual wealth infusion for employees—its bonus pool—notched a new record at $47.5 billion in 2024, an increase of 34% over the year prior. The bonus pot hasn’t veered even close to this level since 2021, when the total swelled to $42.7 billion, before tumbling back down to $33.9 billion in 2022. 

The comptroller’s office publishes a yearly estimate of bonus payouts for those employed in the securities industry based on personal income tax withholding trends and cash bonuses paid. The average bonus deposit, accounting for those at the entry level all the way up to those with panoramic views in corner offices, was $244,700, DiNapoli found. A year earlier, the average payout was $186,100. The 131 New York Stock Exchange member firms’ profits rose 90% in 2024, the comptroller reported

“The record high bonus pool reflects Wall Street’s very strong performance in 2024,” DiNapoli said in a statement. “This financial market strength is good news for New York’s economy and our fiscal position, which relies on the tax revenue it generates. However, increasing uncertainty in the economy amid significant federal policy changes may dampen the outlook for parts of the securities industry in 2025.”

Tariffs have claimed a starring role among the many policy changes implemented by the Trump administration, rocking major market averages with uncertainty and volatility. The S&P 500 is down 3% the past month and 1.5% year to date. One of the cascade effects of those federal policy changes—and the presence of Tesla CEO Elon Musk in Washington, D.C.—has resulted in pressure on DiNapoli. As comptroller, DiNapoli oversees the state’s $270 billion retirement fund, which holds a stake in Tesla valued at more than $800 million. A group of 23 Democratic state senators urged the comptroller this month to divest from the Musk-helmed automaker. 

According to the two dozen state senators who reached out to DiNapoli, the Tesla stake is the fund’s seventh-largest holding, and it is in jeopardy while Musk is the CEO

“Musk’s actions leading President Donald Trump’s Department of Government Efficiency (DOGE) have led to a deterioration of the company’s reputation among its most loyal customers,” states the letter, signed by Senator Patricia Fahy (D.-Albany) and 22 other senators. 

Tesla did not immediately respond to a request for comment. 

Meanwhile, the traders, supervisors, analysts, and portfolio managers in New York have a front-row seat to the volatility. The lucrative industry, with an average annual salary of $471,000, helps make up the beating heart of New York City, with 69% of employees residing in one of the five boroughs. More than a quarter of New York City residents who work in securities and finance make more than $250,000 a year. Similarly, more than half of commuters from Westchester County and 41% of commuters from Long Island who work in securities make more than $250,000 a year, according to New York state labor figures.

DiNapoli reported that one in 11 jobs in New York City is somehow linked to the securities industry, and the state derives 19% of its tax collections from it. The 2024 bonus pot will gin up an extra $600 million in income tax this year, and an additional chunk of change valued at $275 million will go into New York City’s coffers in 2024 compared to 2023. Securities industry employment is the highest it’s been in some 30 years with 201,500 workers in contrast to 198,400 the year before. It’s higher than any other state, the comptroller reported.

Still, while New York City boasts the largest number of securities-industry jobs in the U.S., the figure has tumbled consistently since the ’90s, according to labor data. In 1990, a third of all securities jobs were in NYC, compared to 17.4% in 2024. And while New York state added 15,600 securities industry jobs between 2019 and 2023, Texas outpaced it by adding 19,400 jobs of its own. Florida added 13,300 jobs during the same period. 

Also worth noting, major financial firms including Goldman Sachs and Citigroup have announced job cuts and restructurings, which could impact headcount in the state’s securities industry. 

This story was originally featured on Fortune.com



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‘The world as we knew it has gone’ warns U.K. PM as tariffs threaten to upend global trade

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The “world as we knew it” is over, UK Prime Minister Keir Starmer said Sunday, as the world braced for further fallout from the introduction of US tariffs.

US President Donald Trump’s announcement of sweeping tariffs on Wednesday shows that “old assumptions can no longer be taken for granted,” Starmer said in a op-ed for the Sunday Telegraph newspaper.

“The world as we knew it has gone,” he wrote, floating the possibility of the state stepping in to protect British businesses from the tariffs’ fallout.

The new world will be governed less by established rules and “more by deals and alliances”, added the prime minister.

The tariffs have already sent markets into a tailspin, and all eyes will be on Monday’s opening with Trump warning Americans of pain ahead.

“This is an economic revolution, and we will win,” the Republican president wrote on his Truth Social platform on Saturday. “Hang tough, it won’t be easy, but the end result will be historic.”

Trump’s 34 percent tariff on Chinese goods is set to kick in next week, triggering Beijing’s announcement of a 34 percent levy on US products from April 10.

The European Union and Japan are also among around 60 trading partners set to face even higher rates on April 9, raising fears of recessions in some of the world’s leading economies.

Wednesday’s announcement has sent countries scrambling for a response, and Zimbabwe President Emmerson Mnangagwa said Saturday that he would suspend all tariffs on goods imported from the United States after being hit with an 18 percent levy.

State intervention

The UK has so far got off relatively lightly with a 10 percent tariff, and Starmer wrote on Sunday that the country’s response “demands the best of British virtues — cool heads, pragmatism and a clear understanding of our national interest”.

He later spoke with international leaders including European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz.

Starmer told them that “it would be important for the UK to strengthen its trading relationships with others across the globe”, according to a readout of the call released by his Downing Street office.

In his op-ed, the UK leader reiterated his government’s belief that “nobody wins from a trade war” and that the immediate strategy was “to keep calm and fight for the best deal.”

However, he insisted a US trade deal will only be struck “if it is right for British business” and that “all options remain on the table” in responding to the tariffs.

The new levies mark “the most sweeping tariff hike since the Smoot-Hawley Tariff Act, the 1930 law best remembered for triggering a global trade war and deepening the Great Depression”, said the Center for Strategic and International Studies.

In an immediate sign of the fallout, UK luxury car manufacturer Jaguar Land Rover said on Saturday that it will “pause” shipments to the United States in April as it addressed “the new trading terms”.

Recognising the shifting global economic sands, Starmer said that he was now prepared to use direct state intervention to protect certain sectors.

“This week we will turbocharge plans that will improve our domestic competitiveness,” he wrote, ahead of an expected major announcement on industrial strategy.

“We stand ready to use industrial policy to help shelter British business from the storm.

“Some people may feel uncomfortable about this… but we simply cannot cling on to old sentiments when the world is turning this fast,” he added.

This story was originally featured on Fortune.com



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Venezuelan immigrant couple in Miami’s ‘Doralzuela’ warns U.S. citizen daughter they may have to leave if Trump ends Temporary Protected Status

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Wilmer Escaray left Venezuela in 2007 and enrolled at Miami Dade College, opening his first restaurant six years later.

Today he has a dozen businesses that hire Venezuelan migrants like he once was, workers who are now terrified by what could be the end of their legal shield from deportation.

Since the start of February the Trump administration has ended two federal programs that together allowed more 700,000 Venezuelans to live and work legally in the U.S. along with hundreds of thousands of Cubans, Haitians and Nicaraguans.

In the largest Venezuelan community in the United States, people dread what could face them if lawsuits that aim to stop the government fail. It’s all anyone discusses in “Little Venezuela” or “Doralzuela,” a city of 80,000 people surrounded by Miami sprawl, freeways and the Florida Everglades.

Deportation fears in Doralzuela

People who lose their protections would have to remain illegally at the risk of being deported or return home, an unlikely route given the political and economic turmoil in Venezuela.

“It’s really quite unfortunate to lose that human capital because there are people who do work here that other people won’t do,” Escaray, 37, said at one of his “Sabor Venezolano” restaurants.

Spanish is more common than English in shopping centers along Doral’s wide avenues, and Venezuelans feel like they’re back home but with more security and comfort.

A sweet scent wafts from round, flat cornmeal arepas sold at many establishments. Stores at gas stations sell flour and white cheese used to make arepas and T-shirts and hats with the yellow, blue and red stripes of the Venezuelan flag.

New lives at risk

John came from Venezuela nine years ago and bought a growing construction company with a partner. He and his wife are on Temporary Protected Status, or TPS, which Congress created in 1990 for people in the United States whose homelands are considered unsafe to return due to natural disaster or civil strife. Beneficiaries can live and work while it lasts but TPS carries no path to citizenship.

Born in the U.S., their 5-year-old daughter is a citizen. John, 37, asked to be identified by first name only for fear of being deported.

His wife helps with administration at their construction business while working as a real-estate broker. The couple told their daughter that they may have to leave the United States. Venezuela is not an option.

“It hurts us that the government is turning its back on us,” John said. “We aren’t people who came to commit crimes; we came to work, to build.”

A federal judge ordered on March 31 that temporary protected statuswould stand until a legal challenge’s next stage in court and at least 350,000 Venezuelans were temporarily spared becoming illegal. Escaray, the owner of the restaurants, said nearly all of his 150 employees are Venezuelan and more than 100 are on TPS.

The federal immigration program that allowed more than 500,000 Cubans, Venezuelans, Haitians and Nicaraguans to work and live legally in the U.S. — humanitarian parole — expires April 24 absent court intervention.

Politics of migration

Venezuelans were one of the main beneficiaries when former President Joe Biden sharply expanded TPS and other temporary protections. Trump tried to end them in his first term and now his second.

The end of the temporary protections has generated little political reaction among Republicans except for three Cuban-American representatives from Florida who called for avoiding the deportations of affected Venezuelans. Mario Díaz Ballart, Carlos Gimenez and Maria Elvira Salazar have urged the government to spare Venezuelans without criminal records from deportation and review TPS beneficiaries on a case-by-case basis.

The mayor of Doral, home to a Trump golf club since 2012, wrote a letter to the president asking him to find a legal pathway for Venezuelans who haven’t committed crimes.

“These families do not want handouts,” said Christi Fraga, a daughter of Cuban exiles. “They want an opportunity to continue working, building, and investing in the United States.”

A country’s elite, followed by the working class

About 8 million people have fled Venezuela since 2014, settling first in neighboring countries in Latin America and the Caribbean. After the COVID-19 pandemic, they increasingly set their sights on the United States, walking through the notorious jungle in Colombia and Panama or flying to the United States on humanitarian parole with a financial sponsor.

In Doral, upper-middle-class professionals and entrepreneurs came to invest in property and businesses when socialist Hugo Chávez won the presidency in the late 1990s. They were followed by political opponents and entrepreneurs who set up small businesses. In recent years, more lower-income Venezuelans have come for work in service industries.

They are doctors, lawyers, beauticians, construction workers and house cleaners. Some are naturalized U.S. citizens or live in the country illegally with U.S.-born children. Others overstay tourist visas, seek asylum or have some form of temporary status.

Thousands went to Doral as Miami International Airport facilitated decades of growth.

Frank Carreño, president of the Venezuelan American Chamber of Commerce and a Doral resident for 18 years, said there is an air of uncertainty.

“What is going to happen? People don’t want to return or can’t return to Venezuela,” he said.

This story was originally featured on Fortune.com



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Kentucky 9-year-old boy caught by a flood on the way to his school bus is one of 18 dead in South after days of unrelenting rain

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Days of unrelenting heavy rain and storms that killed at least 18 people worsened flooding as some rivers rose to near-record levels and inundated towns across an already saturated U.S. South and parts of the Midwest.

Cities ordered evacuations and rescue crews in inflatable boats checked on residents in Kentucky and Tennessee, while utilities shut off power and gas in a region stretching from Texas to Ohio.

“As long as I’ve been alive — and I’m 52 — this is the worst I’ve ever seen it,” said Wendy Quire, the general manager at the Brown Barrel restaurant in downtown Frankfort, Kentucky, the state capital built around the swollen Kentucky River.

“The rain just won’t stop,” Quire said Sunday. “It’s been nonstop for days and days.”

Officials diverted traffic and turned off utilities to businesses in the city as the river was expected to crest above 49 feet Monday to a record-setting level, said Frankfort Mayor Layne Wilkerson. The city’s flood wall system is designed to withstand 51 feet of water.

For many, there was a sense of dread that the worst was still to come.

“This flooding is an act of God,” said Kevin Gordon, a front desk clerk at the Ashbrook Hotel in downtown Frankfort. The hotel was offering discounted stays to affected locals.

Storms leaving devastating impact

The 18 reported deaths since the storms began on Wednesday included 10 in Tennessee. A 9-year-old boy in Kentucky was caught up in floodwaters while walking to catch his school bus. A 5-year-old boy in Arkansas died after a tree fell on his family’s home, police said. A 16-year-old volunteer Missouri firefighter died in a crash while seeking to rescue people caught in the storm.

The National Weather Service warned Sunday that dozens of locations in multiple states were expected to reach a “major flood stage,” with extensive flooding of structures, roads, bridges and other critical infrastructure possible.

In north-central Kentucky, emergency officials ordered a mandatory evacuation for Falmouth and Butler, towns near the bend of the rising Licking River. Thirty years ago, the river reached a record 50 feet (15 meters), resulting in five deaths and 1,000 homes destroyed.

The storms come after the Trump administration cut jobs at NWS forecast offices, leaving half of them with vacancy rates of about 20%, or double the level of a decade ago.

Why so much nasty weather?

Forecasters attributed the violent weather to warm temperatures, an unstable atmosphere, strong winds and abundant moisture streaming from the Gulf.

The NWS said 5.06 inches (nearly 13 centimeters) of rain fell Saturday in Jonesboro, Arkansas — making it the wettest day ever recorded in April in the city. Memphis, Tennessee, received 14 inches (35 centimeters) of rain from Wednesday to Sunday, the NWS said.

Rives, a northwestern Tennessee town of about 200 people, was almost entirely underwater after the Obion River overflowed.

Domanic Scott went to check on his father in Rives after not hearing from him in a house where water reached the doorstep.

“It’s the first house we’ve ever paid off. The insurance companies around here won’t give flood insurance to anyone who lives in Rives because we’re too close to the river and the levees. So if we lose it, we’re kind of screwed without a house,” Scott said.

In Dyersburg, Tennessee, dozens of people arrived over the weekend at a storm shelter near a public school clutching blankets, pillows and other necessities. Just days earlier the city was hit by a tornado that caused millions of dollars in damage.

Among them was George Manns, 77, who said he was in his apartment when he heard a tornado warning and decided to head to the shelter. Just days earlier the city was hit by a tornado that caused millions of dollars in damage.

“I grabbed all my stuff and came here,” said Mann, who brought a folding chair, two bags of toiletries, laptops, iPads and medications: “I don’t leave them in my apartment in case my apartment is destroyed.”

For others, grabbing the essentials also meant taking a closer look at the liquor cabinet.

In Frankfort, with water rising up to his window sills, resident Bill Jones fled his home in a boat, which he loaded with several boxes of bottles of bourbon.

This story was originally featured on Fortune.com



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