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Corporate Profits Hit Record High, 0.1% Earnings Skyrocket

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Corporate profits rose to an “all-time high” in 2022, producing an explosion in income for the very wealthy, Jake Johnson reported for Common Dreams in a series of 2022 articles. In August 2022, Johnson explained that non-financial corporate profits in the second quarter of 2022 hit two trillion dollars, an increase of 8.1 percent from the same period in 2021 and their highest level since 1950. In December 2022, Johnson reported on research by the Economic Policy Institute (EPI) that showed the earnings of the wealthiest 0.1 percent in the United States grew by 465 percent between 1979 and 2021 while the income of the bottom 90 percent grew less than 29 percent.

One reason profits are booming is that companies have been using inflation as cover to raise prices and gouge consumers. In late 2022, inflation in the United States was the highest it had been in forty years. According to Rakeen Mabud, chief economist at the Groundwork Collaborative, “Astronomical corporate profits confirm what corporate executives have been telling us on earning calls over and over again: They’re making a lot of money by charging people more, and they don’t plan on bringing prices down anytime soon.”

The fossil fuel industry has enjoyed especially lavish profits. As Jessica Corbett reported for Common Dreams in July 2022, the eight largest oil companies’ profits spiked 235 percent between the second quarter of 2021 and the second quarter of 2022, resulting in a combined $52 billion profit, according to an analysis by Accountable.US. ExxonMobil profited $17.85 billion; Chevron, $11.62 billion; and Shell, $11.47 billion. Notably, in 2021-2022, the oil and gas industry spent more than $200 million lobbying Congress to oppose climate action.

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As Johnson reported in December 2022, the main beneficiaries of big corporations’ windfall profits have been the ultrarich. He cited EPI data showing that the average income of someone in the bottom 90 percent of the workforce in 2021 was $36,571, while the average income of the wealthiest 0.1 percent that same year was $3,312,693, or more than ninety times as much. In 1979, this discrepancy was not nearly so great, with someone in the bottom 90 percent earning $28,415, while the average individual in the top 0.1 percent earned $586,222, or 20.6 times as much. As of 2021, the share of wealth earned by the 0.1 percent had hit a historic high, while the wealth of the bottom 90 percent had sunk to a record low.

The very rich—billionaires and multimillionaires—are getting wealthier at a faster rate than even the merely wealthy. The top 0.1 percent made about 1.6 percent of all annual earnings in 1979, but by 2021, that share had increased to 5.9 percent, more than tripling the slice of the total national income captured by the ultrarich.

Bloated bonuses for Wall Street bankers and stockbrokers added to the enormous sums being raked in by the rich in 2020 and 2021. In March 2022, Johnson reported on an analysis by Inequality.org of New York State Comptroller data that found the average bonus for Wall Street employees rose an astounding 1,743 percent between 1985 and 2021. In 2021 alone, Wall Street bonuses grew 20 percent, far outpacing inflation at 7 percent, and nominal private sector earnings at 4.2 percent. That year Wall Street bonuses, in aggregate, amounted to $45 billion, the highest since 2006 [Note: Wall Street bonuses fell by 26 percent in 2022, partly due to rising interest rates and growing recession fears; see, for example, Jeanne Sahadi, “The Average Wall Street Bonus Fell By 26% Last Year,” CNN, March 30, 2023]. Had the minimum wage increased at the same rate as Wall Street bonuses, it would now be $61.75 per hour.]

The establishment media have reported intermittently on record corporate profits, but this coverage has tended to downplay corporate use of inflation as a pretext for hiking prices. In August 2022, for example, Bloomberg observed that “a measure of US profit margins has reached its widest since 1950,” but its report did not mention the two trillion dollar figure. In June 2022, ABC News aired a rare package examining the debate among economists over whether “elevated corporate profits” might be contributing to inflation. The same month the New York Times published a lengthy article on the disagreement among economists about the relationship of corporate profits to “greedflation.” The Times quoted experts from EPI and Groundwork Collaborative but refused to draw any firm conclusions.

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The EPI study on the accelerating incomes of the ultrarich was virtually ignored by the corporate media, although Insider referenced it in a story about how a coming recession might hurt the wealthy most.

Establishment press coverage of the massive bonuses awarded to Wall Street employees in 2021 has been scant. Reuters ran a story on it, as did the New York Post. CNN Business noted that “high bonuses are also good news for Gotham’s tax coffers.”

Jake Johnson, “‘All of Us Are Paying the Price’ as Corporate Profits Surge to Record-High $2 Trillion,” Common Dreams, August 26, 2022; republished as “Corporate Profits Surge to an All-Time High of $2 Trillion,” Truthout, August 26, 2022.

Jake Johnson, “Fueling Inequality, Earnings of Top 0.1% in US Have Soared by 465% Since 1979: Analysis,” Common Dreams, December 21, 2022

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Jessica Corbett, “Price Gouging at the Pump Results in 235% Profit Jump for Big Oil: Analysis,” Common Dreams, July 29, 2022.

Jake Johnson, “‘Jaw-Dropping’: Wall Street Bonuses Have Soared 1,743% Since 1985,” Common Dreams, March 23, 2022.

Student Researcher: Annie Koruga (Ohlone College)

Faculty Evaluator: Robin Takahashi (Ohlone College)

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I was slapped with £75 Ryanair charge because i’m a granny while younger & hotter passengers were let off fee-free

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Maxine Haughain was stopped as she waited to board her flight to Spain

A GRANDMA has been left fuming after she was charged £75 for her oversized suitcase but ‘younger and good looking’ passengers were let off.

Maxine Haughian, 63, was stopped in the queue for her flight to Alicante by Ryanair staff at Leeds Bradford Airport.

Maxine Haughain was stopped as she waited to board her flight to Spain

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Maxine Haughain was stopped as she waited to board her flight to SpainCredit: Kennedy News

The mum-of-two claims her luggage fit inside the guidance rack but “stuck out very slightly” by 2cm on one side.

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She was told that her suitcase was too big and she’d need to pay to place the luggage into the hold.

However, Maxine, a retired prison governor, noticed other passengers in the queue being let off for oversized bags.

She described one woman as “young and gorgeous” and even took a sneaky snap of her being let off.

Taking to Facebook, Maxine said she was “disgusted” with Ryanair.

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“I’ve just been held up for 20 minutes because they said my cabin bag was too big and I must pay an EXTRA £75 for it to go in hold,” she wrote.

“It’s funny (not funny) how other bags that are exactly the same were allowed through without comment.

“It’s a good job I took the photo of this (gorgeous) girl pushing her case into the box and being allowed through.

“I’m obviously not young or good looking enough!” she fumed.

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Maxine, who was travelling with her husband Jim, continued: “Eventually (using photographic evidence) I was allowed through. I’m stressed to high-hell and hope I can calm down and get into holiday mode before we land.”

‘Christmas cancelled’ declares Ryanair boss as Dublin Airport passenger cap row rumbles

Despite being pleased that she was let off, Maxine told Oxford Mail: “It was almost like letting me go justified what I was saying. I think it’s definitely a money-making exercise.

“I’m a bit older, perhaps he thought I would be compliant. A lot of people just paid the money.”

She added: “Several people had suitcases that looked exactly the same as mine and they were putting them in the rack and it was sticking out a bit, but they were allowed to go through. It was the inconsistency of it all.

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The Sun has contacted Ryanair for comment.

Her hand luggage didn't quite fit inside the size checker

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Her hand luggage didn’t quite fit inside the size checkerCredit: Kennedy News
A younger woman, who had the same size bag wasn't charged

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A younger woman, who had the same size bag wasn’t chargedCredit: Kennedy News

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Tracking the conflict with Hezbollah and Iran

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Tracking the conflict with Hezbollah and Iran
BBC A relief map of Lebanon showing the mountains to the east of Beirut with a photograph of damaged buildings imposed in the background.BBC

Israel has invaded southern Lebanon in a dramatic escalation of its conflict with Hezbollah.

The Israeli ground operation began on 30 September, days after an air strike killed Hassan Nasrallah, the leader of the Iran-backed armed group.

Hezbollah has fired rockets into northern Israel as Lebanon has endured three weeks of aerial bombardment that Lebanese authorities say has killed more than 1,000 people and forced up to a million to flee their homes.

Israel has a decades-long history of conflict with Hezbollah but the war in Gaza has sparked a year of deadly cross-border fighting between them.

We will be continually updating maps in this page to help explain the conflict.

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Map: Where is Lebanon?

Lebanon is a small country with a population of about 5.5 million people, which borders Syria to the north and east, Israel to the south, and the Mediterranean Sea to the west. It is about 170km (105 miles) away from Cyprus.

A map showing Lebanon is located in the Middle East, on the eastern shore of the Mediterranean Sea. The capital, Beirut, is on the coast and is roughly in the middle of the country.

Where is the Israeli advance?

Israeli troops and tanks that had gathered close to the border crossed into Lebanon on 1 October.

The Israel Defense Forces (IDF) has said it is carrying out “limited, localised, and targeted ground raids” in southern Lebanon to dismantle what it calls Hezbollah’s “terrorist infrastructure”.

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Reuters Columns of Israeli tanks in an undisclosed location in northern Israel, close to the border with Lebanon - 27 September 2024Reuters

Israeli tanks at an undisclosed location in northern Israel last week

Israeli troops are fighting directly with Hezbollah fighters on the ground.

Several Israeli soldiers have been killed in mortar attacks and ambushes by Hezbollah during operations in southern Lebanon aimed at “eliminating terrorists”, according to the IDF.

Hezbollah said its fighters had clashed with Israeli forces in Adaisseh, Kafr Kila, Maroun al-Ras and Yaroun – all Lebanese villages close to the border with Israel.

A ground operation in southern Lebanon comes with many risks for Israeli forces. Unlike the flat coastal plains of Gaza, southern Lebanon has rolling hills and some mountainous terrain that makes it difficult for tanks to move easily without fear of being ambushed.

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Hezbollah is also thought to have a network of tunnels in the region, with the group having been preparing for another full-scale conflict with Israel since the 34-day war in 2006.

A map showing southern Lebanon, labelling Adaisseh, Kafr Kila, Yaroun and Maroun al-Ras, two Lebanese villages close to the border with Israel, and showing the Litani River just north of Tyre and the Awali River just north of Sidon.

As part of its invasion of southern Lebanon, the IDF has ordered people living in some villages to evacuate, telling those remaining to leave their homes and “immediately head to the north of the Awali River” – which meets the coast about 50km (30 miles) from the border with Israel.

At first the evacuation orders were concentrated in the south east of Lebanon, but in recent days more have been been issued for villages in the south west, perhaps indicating that Israeli operations are about to extend to that part of the border.

Lebanese civilians have also been warned by the IDF not to use vehicles to travel south across the Litani River, located about 30km (20 miles) north of the border.

About a million people lived in southern Lebanon before the conflict escalated almost a year ago.

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Tens of thousands have been fleeing north since Israeli air strikes in the region intensified in late September. The main route for civilians trying to leave the south is the coastal road that runs the length of the country – but areas along that route have been hit by air strikes.

Map shows southern Lebanon with the Mediterranean Sea to the west and Israel and the Golan Heights to the south. Towns which the Israeli military says should be evacuated are highlighted by dots - orange for the latest orders and grey for previous orders. People have been told to move north of the Awali River, which cuts inland east from the sea, about half way between Beirut at the top of the map and the Israeli border to the south.

What have Israel’s air strikes targeted?

Israel’s invasion of southern Lebanon came after nearly two weeks of intense air strikes that Israel’s military says target Hezbollah in the south of the country, the eastern Bekaa Valley and the southern suburbs of Beirut.

Israel says it is hitting Hezbollah sites, including weapons stores and ammunition dumps, but Lebanese officials say more than 100 women and children have been killed.

The majority of the rockets recently fired by Hezbollah have targeted northern areas of Israel. But some rockets have reached further south and damaged homes near the coastal city of Haifa.

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A map showing aerial attacks launched on Lebanon and Israeli between 18:00 GMT on 2 October and 18:00 GMT on 3 October. Most of the Israeli strikes have been on locations in southern Lebanon, while Hezbollah attacks have mostly been on northern Israel.

There has been almost a year of cross-border hostilities between Israel’s forces and Hezbollah, sparked by the war in Gaza.

Hezbollah has fired thousands of rockets at northern Israel during that time, forcing some Israelis living there to flee south, while the IDF has launched air strikes and artillery fire against Hezbollah positions in Lebanon.

As the chart below shows, the number of weekly Israeli attacks on Lebanon more than tripled in the week before the IDF launched its ground invasion. The number of Hezbollah attacks, while small in comparison, also increased in the same week.

The bar chart shows weekly reported attacks in Lebanon and Israel since October 2023. Every week has two columns: Israeli attacks on Lebanon (in red) and Hezbollah attacks on Israel (in purple). Reported attacks peaked in the last week of September, with 823 Israeli attacks and 112 Hezbollah attacks.

Israel has intensified strikes on Beirut, the capital of Lebanon, in recent days.

The majority of the strikes have hit the southern suburbs of the city, densely populated areas that are home to thousands of civilians.

These areas, close to the international airport, also have a strong Hezbollah presence and a series of Israeli strikes on buildings there killed Hezbollah’s leader Hassan Nasrallah on 27 September.

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There have also been Israeli aerial attacks on locations closer to the centre of the city. A strike on an apartment block close to the Lebanese parliament building on 2 October killed several people, including rescue officers and paramedics, according to Beirut’s civil defence.

A map showing the population density of Beirut and highlighting the locations of some Israeli strikes on the Lebanese capital. Most strikes have been on suburbs in the south, some of the most densely populated areas of the city.

The map below – using analysis of satellite data by Corey Scher of CUNY Graduate Center and Jamon Van Den Hoek of Oregon State University – shows which areas have sustained concentrated damage – including Dahieh in Beirut and areas along the border with Israel.

Map of Lebanon showing areas where buildings have been damaged in the conflict since 5 April 2024. Lebanon is a long country with Syria to the east and the Mediterranean to the west. The damage areas are shown as small hexagons. Most damage has been on the southern border with Israel and in Beirut which is on the coast about half way up the map.

What will Israel do next?

Israel is now engaged in hostilities with armed forces and non-state armed groups in several countries in the Middle East, including Iran, Syria and Iran-backed groups operating in Lebanon, Gaza, Iraq, Syria and Yemen.

Iran’s ballistic missile attack against Israel on Tuesday was the latest major escalation.

What happens next is unclear, but Israel has vowed to respond, with Prime Minister Benjamin Netanyahu describing the attack as “a big mistake” that Iran “will pay for”.

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Map showing Israel is fighting on multiple fronts in the Middle East - Hamas in Gaza, Hezbollah in Lebanon, Syrian forces and Shia militia in Syria, Shia militia in Iraq, Iran, and Houthis in Yemen.

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TikTok sued for ‘wreaking havoc’ on teen mental health

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TikTok sued for 'wreaking havoc' on teen mental health
Getty Images A 12-year-old boy looks at a iPhone screen on January 26, 2024 Getty Images

More than a dozen states in the US have sued TikTok, accusing the social media platform of helping to drive a mental health crisis among teenagers.

A bipartisan group of 14 attorneys general from across the country allege that the company uses addictive features to hook children to the app and that it has intentionally misled the public about the safety of prolonged use.

TikTok did not immediately respond to a request for comment. It adds to the legal woes facing the wildly popular app, which more than half of US teenagers are estimated to use multiple times a day.

TikTok is already battling a law passed by Congress in April that would ban it from the US, unless Chinese parent company Bytedance agreed to a sale.

“TikTok knows that compulsive use of and other harmful effects of its platform are wreaking havoc on the mental health of millions of American children and teenagers,” said the lawsuit filed in New York on Tuesday.

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“Despite such documented knowledge, TikTok continually misrepresents its platform as ‘safe’ [and] ‘appropriate for children and teenagers’.”

New York Attorney General Letitia James said young people across the country had died or been injured doing TikTok “challenges” and many others were feeling “more sad, anxious and depressed because of TikTok’s addictive features”.

She cited a 15-year-old boy, who died in Manhattan while “subway surfing” – riding on top of a moving subway car. His mother later found TikTok videos of such activity on his phone, she said.

“TikTok claims that their platform is safe for young people, but that is far from true,” Ms James said in a statement announcing the action.

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The lawsuit singles out certain features as problematic: alerts that disrupt sleep; videos that vanish, driving users to check the platform frequently; and beauty filters that allow users to augment their appearance.

Though TikTok has promoted tools aimed at helping people limit their screen-time or resetting what content they are served, it has misrepresented their effectiveness, according to the lawsuit.

The lawsuits were filed by 13 states separately and in the District of Columbia, where the attorney general also accused the company of running an unlicensed money transmission business via its “virtual currency” offering.

The lawsuit asks the court to bar TikTok from such conduct and seeks financial penalties.

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Regulators have launched similar cases against Facebook and Instagram for their impact on young people’s mental health.

States such as Texas and Utah have also previously filed similar suits against TikTok focused on child safety.

The Federal Trade Commission, a national watchdog, also accused TikTok of violating child privacy laws in August.

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FOS and FCA should work together on simplified advice

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FOS and FCA should work together on simplified advice

Simplified advice can only be achieved if the Financial Ombudsman Service (FOS) and the Financial Conduct Authority (FCA) work together, according to an industry expert.

Ian McKenna, founder of Financial Technology Research Centre, made the statement today (8 October) at Money Marketing Interactive in London.

The FCA announced proposals to launch a simplified advice model last December to make it easier for firms to provide affordable personal recommendations to those with simpler needs and smaller sums to invest.

McKenna, who was part of a panel discussing the future of advice, said for simplified advice to work, the Ombudsman needs to be part of the process.

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However, he queried whether the regulator would be willing to make that decision.

He said: “The reality for simplified advice is the regulator would never bring the Ombudsman along. The argument was always do less, charge more or charge less, but still have the same responsibility at the end.

“This why I’m saying, and you could argue with my response, we don’t need the movement of the [advice/guidance] boundary.”

McKenna added that attempts were made in the past to address the issue of advice gap without much success.

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“There’s no example of that happening in the past 20-30 years. Why would it be different now? What worries me is a huge amount of effort will be expended on something that just isn’t economically viable,” he said.

McKenna said the sector needs to tread with caution on the advice/guidance boundary review to avoid the equivalent of PPI in the long-term savings market.

“I think if we just remove the boundary, that’s what we will end up with and that will be devastating to people for long-term confidence.”

Tom Selby, director of policy at AJ Bell, said the advice/guidance boundary review is a test for the Consumer Duty and an opportunity for the regulator to assess how the financial services sector is abiding by the core terms of it.

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He said the regulator now has access to huge amounts of data on firms to hold them accountable on their Consumer Duty commitments.

“It’s on them to make sure that firms do ultimately understand their shareholders.

“When they look at the cost benefit analysis of ‘am I going to throw people into an inappropriate product or am I going to follow the Consumer Duty?’

“Besides, if I don’t follow the Consumer Duty, I’m going to end up with a huge fine and a bad reputation.”

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Mum & lover ‘wheeled toddler’s body around in buggy for THREE days after she died from regime of escalating brutality’

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Mum & lover 'wheeled toddler's body around in buggy for THREE days after she died from regime of escalating brutality'

A MUM and her lover wheeled a toddler’s body around for three days in her buggy after she died from a “regime of escalating brutality”, a court heard.

Isabella Rose Wheildon suffered horror injuries after she was allegedly kicked or stomped on by 24-year-old Scott Jeff.

Chelsea Gleason-Mitchell is accused of murdering her two-year-old daughter

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Chelsea Gleason-Mitchell is accused of murdering her two-year-old daughter
Isabella Wheildon was discovered dead in a bathroom

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Isabella Wheildon was discovered dead in a bathroom

Jurors heard how the two-year-old is believed to have died on June 26 last year in a temporary housing unit in Ipswich.

But Jeff and Isabella’s mum Chelsea Gleason-Mitchell, also 24, allegedly kept the girl’s death a secret.

Ipswich Crown Court was told they carried on pushing her body around in a pushchair with the hood pulled up to shield her face.

The couple also allegedly took her corpse on a shopping trip to buy computer gaming equipment.

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She was finally discovered on June 30 under blankets in a shower at the housing unit.

The court was told police officers had been greeted by a “very strong smell” when the bathroom was unlocked.

One pulled back the blankets to see the “face of a young child who was not moving”.

Prosecutor Sally Howes KC said: “He was aware of severe bruising on her face. She was cold to the touch.”

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The discovery was made when a woman reported to police on June 30 that she had received a Facebook message from a “friend of hers”.

Ms Howes said: “That message disclosed that her friend’s daughter had died in her sleep three days before and was in her pushchair in the bathroom.

“That friend was the first defendant, Chelsea Gleason-Mitchell, and her daughter was Isabella.”

Gleason-Mitchell is accused of allowed her daughter’s death to happen as she “stood back, watched and did nothing”.

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A post mortem found she had “extensive external traumatic injuries to the soft tissues of the body including head, neck, torso, limbs” and other areas.

She had also suffered fractures to both wrists and a “complex pelvic fracture involving several bones”.

Her cause of death was given as “bone marrow embolism caused by skeletal trauma”.

‘Regime of escalating brutality’

The court heard this “severe” damage to her pelvis was likely caused by “either kicking or stamping or both”.

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Ms Howes said: “It’s the prosecution case that Isabella Wheildon was a healthy, contented, well-cared for little girl until Scott Jeff came into her young life.

“Towards the end of May 2023, he entered a relationship with Chelsea Gleason-Mitchell.

“From that time up to her death, Isabella was subjected to a regime of escalating brutality which was callous, cruel and ultimately fatal.”

Gleason-Mitchell and Jeff lived together in hotels in Great Yarmouth, a caravan park and “camping in a very small tent on Caister beach” in Norfolk before they ended up in Ipswich.

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The mum told Great Yarmouth Borough Council she and her daughter were “homeless” and escaping domestic abuse from her ex.

She also falsely claimed Jeff was Isabella’s biological dad and refused a home by Bedfordshire Council for her and the youngster as she wanted to stay with her partner.

After moving into the unit, CCTV showed the toddler being pushed around in her chair, wearing sunglasses with the hood up, concealing her head, it was said.

The court heard the couple went with Isabella out on June 26, visiting a barber shop so Jeff could get a haircut.

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They returned at 3.15pm with CCTV showing the youngster’s legs and feet moving in her pushchair – suggesting she was still alive.

The court was told this is believed to the last image of Isabella and that she had died later that day.

Jeff has denied causing or allowing Isabella’s death and murder.

Gleason-Mitchell has pleaded guilty to causing or allowing the death of a child but denies murder.

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The trial continues.

Scott Jeff is accused of inflicting a regime of 'escalating brutality' on Isabella

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Scott Jeff is accused of inflicting a regime of ‘escalating brutality’ on Isabella
The two-year-old suffered horror injuries

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The two-year-old suffered horror injuries

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Kamala Harris’s worldview comes into frame

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This is an on-site version of the US Election Countdown newsletter. You can read the previous edition here. Sign up for free here to get it on Tuesdays and Thursdays. Email us at electioncountdown@ft.com

Good morning and welcome to US Election Countdown! Today let’s dig into:

If Kamala Harris wins the White House, she will enter the Oval Office with one of the least articulated foreign policy visions of any incoming president in modern US history.

But a sketch of her philosophy has started to appear [free to read]. The vice-president is a “realist” or “pragmatist”, according to people familiar with her thinking, though she doesn’t like being pigeonholed.

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As tensions in the Middle East escalate, Donald Trump has claimed that Harris would be unprepared to lead the country. Her allies, however, are excited about Harris’s potential to bring in the perspective of a younger generation.

“I don’t think there’s any president that implements the prior president’s foreign policy wholesale,” Democratic senator Chris Murphy told the FT’s Alec Russell and Felicia Schwartz. “It’s likely she has departures from [Joe] Biden’s foreign policy in the Middle East.”

Yesterday, on the first anniversary of Hamas’s October 7 attack, Harris reiterated her staunch support for Israel and its right to defend itself, as she did following Iran’s ballistic missile strike on the country last week. But her remarks on the scale of civilian deaths in Gaza have led to speculation that she could be tougher on Israel than Biden.

It’s considered unlikely that Harris would do something such as withhold loan guarantees to Israel, as the then president George HW Bush did in 1991. But one lawmaker said she could turn up the pressure on Israeli Prime Minister Benjamin Netanyahu or consider sanctioning some of his far-right cabinet members.

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If there is a ceasefire in Gaza, Harris’s advisers have suggested she might push to restart talks on a two-state solution — something the Biden administration had largely given up on.

There would be one key continuation of Biden’s worldview, though, according to lawmakers who have worked with Harris: she sees the Israeli-Palestinian conflict as part of a larger regional puzzle that encompasses Arab states — especially Saudi Arabia. “It’s not a two-state solution, it’s a 23-state solution,” said Democratic US senator Chris Coons.

Campaign clips: the latest election headlines

Behind the scenes

Donald Trump with Howard Lutnick, co-chair of the Republican presidential candidate’s transition team, in New York last month
Donald Trump, left, with Howard Lutnick, co-chair of the Republican presidential candidate’s transition team © AFP via Getty Images

As co-chair of Trump’s transition team, billionaire investor and Republican megadonor Howard Lutnick has put potential administration officials on notice, saying appointees must prove their “loyalty”.

Lutnick, who is the chief executive of investment company Cantor Fitzgerald, is one of two people in charge of finding candidates to fill the roles in a second Trump administration, including key posts such as defence and Treasury secretaries. He is also drafting policy.

The investor told the FT’s Alex Rogers of any future hires:

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They’re all going to be on the same side, and they’re all going to understand the policies, and we’re going to give people the role based on their capacity — and their fidelity and loyalty to the policy, as well as to the man.

Trump’s first term was plagued by infighting and staff turnover, including senior advisers who quit and in some cases spoke out against their former boss, but Lutnick said “those people were not pure to his vision”.

Lutnick compared his transition job with overseeing Cantor Fitzgerald’s hiring spree in the aftermath of the September 11 2001 terrorist attacks, which killed 658 Cantor Fitzgerald employees.

The billionaire, who has raised $75mn for the campaign, including more than $10mn to elect Trump and $500,000 for the transition effort, also called the Heritage Foundation’s Project 2025 “radioactive”. Harris has made the radical conservative agenda a central part of her attacks against Trump.

Datapoint

Map showing cumulative rainfall along the path of Hurricane Helene between September 26 and 28

Getting swing state voters to turn out on election day is a top priority for both the Harris and Trump campaigns. The issue has come into sharp focus in North Carolina, as it reels from Hurricane Helene. In 2020, Trump took the state by fewer than 75,000 votes.

Voting patterns and turnout in the western part of the state are in question following the devastation wrought in more than two dozen counties. “Communities were wiped off the map,” North Carolina governor Roy Cooper said last week.

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Voter relocation, as well as broader perceptions of recovery efforts, could factor into ballot choices — or whether some North Carolina residents vote at all.

Late last month, Biden declared a federal disaster in 25 North Carolina counties. In 2020, Trump won 23 of these counties, suggesting that Republican turnout could take a hit in November. On the other hand, Harris risks being lumped into anger over the Biden administration’s response, especially as misinformation swirls — at times fanned by Trump himself. 

The state received 43,448 requests for absentee ballots from those 25 counties, and only 2,023 have been returned, according to yesterday’s tally from the state board of elections — with so much destruction, it’s possible many of those ballots won’t get filled out.

Plus, the deadline to register to vote in the state is coming up this Friday, though in-person registration is still possible during the early voting period that runs from October 17 to November 2.

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Trump is leading Harris in North Carolina by 1.3 percentage points, according to the FT’s poll tracker.

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