[Fox Business] BlackRock CEO Larry Fink tells a ‘tale of two parts of the economy’

While recognizing many investors tend to live and work in the short term, BlackRock CEO Larry Fink chose a long-term perspective to explain the economy’s “tale of two parts.”

“If you look at the credit markets today, you do not see companies being stretched too much. Now, in some of the private credit areas, you’re seeing more and more small companies, and I think this is a tale of two parts of the economy,” the leader of the world’s largest money management firm told FOX Business’ Liz Claman Wednesday, adding that “the big, large-cap companies that are part of the S&P are doing quite well overall.”

U.S. stocks – including the S&P 500 and Dow Jones Industrial Average – rose to fresh record highs one month ago, while the tech-heavy Nasdaq flirted with its first record close since November 2021.

More recently, the S&P 500 has spiked due to the recent IPO success of social platform Reddit (RDDT) and former President Donald Trump’s media and technology group (DJT). But according to Fink, this doesn’t look like bubble territory.

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“I don’t think it’s a bubble. I think we’re seeing more validation with stock prices, we’re seeing earnings momentum,” the CEO said. “That’s starting to tell you there’s more breadth in the marketplace. Historically, we looked at so much of the gains in seven stocks. But actually, the breadth of the market is expanding. To me, that gives me a good sign.”

“When I talk to CEOs and businesses,” he continued, “probably 80% of the companies that I’m talking to are seeing upward momentum.”

However, turning to predictions around the Federal Reserve rate trajectory, Fink claimed “probably two more” rate hikes are coming amid economic uncertainty and that it won’t have any deleterious impact on markets.

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“Most of the viewers who own homes, they own homes with a 30-year mortgage, they’re not impacted by higher rates. And so the transmission of high rates in America are much more elongated because the average homeowner is not impacted. In most places in the world, homeownership is [an] adjustable mortgage of some sort, and it resets all the time,” Fink explained.

“It brings down the volatility dramatically,” he added. “As I said now for over two years, inflation is going to be stickier. I still believe inflation could be stickier. But I do believe the Federal Reserve will have room to test the economy, to test the markets.”

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FOX Business’ Suzanne O’Halloran contributed to this report.

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[Fox Business] Disgraced crypto king Sam Bankman-Fried sentenced to 25 years for FTX fraud

FTX founder Sam Bankman-Fried was sentenced to 25 years in prison by Judge Lewis A. Kaplan on Thursday. 

Prosecutors sought a 40- to 50-year sentence for the disgraced crypto king. Bankman-Fried’s defense team will appeal the conviction and sentencing.

Kaplan said Bankman-Fried had shown no remorse.

“He knew it was wrong,” Kaplan said of Bankman-Fried before handing down the sentence. “He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.”

His parents, Barbara and Joseph Bankman-Fried, were present in the courtroom.

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Kaplan said he had found that FTX customers lost $8 billion, FTX’s equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion.

“The defendant’s assertion that FTX customers and creditors will be paid in full is misleading, it is logically flawed, it is speculative,” Kaplan said. “A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole.”

Bankman-Fried, 32, was found guilty in November on two counts of wire fraud and five counts of conspiracy following the collapse of his crypto empire FTX in November 2022, which has been compared to Enron. The exchange had merged assets with sister hedge fund Alameda Research amid cash problems, leading waves of customers to withdraw funds. Bankman-Fried was indicted the next month.

Referring to his FTX colleagues, Bankman-Fried told the judge on Thursday, “They put a lot of themselves into it, and I threw that all away. It haunts me every day.”

By comparison, disgraced Theranos founder Elizabeth Holmes is serving an 11-year sentence, but faced as much as 80 years in prison. Bernie Madoff was sentenced to 150 years and died in prison.

Bankman-Fried, who capitalized on a rise in bitcoin and at one point accumulated an estimated $26 billion fortune, is also expected to be ordered to pay restitution.

FTX AND SAM BANKMAN-FRIED’S TRIAL: THE PLAYERS

Bitcoin, which accounted for much of Bankman-Fried’s net worth, fell as low as $15,000 and has since rebounded to the $70,000-plus level, following the approval of a bitcoin ETF by the Securities and Exchange Commission earlier this year.

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It’s unclear how the rebound in crypto, if at all, will play out in providing restitution to his victims.

Reuters contributed to this report.

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[Fox Business] Carnival Freedom passenger onboard during fire recounts ‘dangerous, terrifying’ experience

A passenger who was onboard the Carnival Freedom during the cruise ship’s second fire in less than two years over the weekend recounted a frightening experience at sea.

The blaze, which occurred Saturday, ignited on the port side of the ship’s exhaust funnel, casually known as the “whale tail.” Initial information from Carnival about the fire came on X, confirming that the fire broke out at 3:15 p.m. ET while the ship was 20 miles off Eleuthera Island in the Bahamas. 

“A fire in the middle of the ocean is one of the most dangerous things that I can possibly think of,” Tambra Jones of Virginia told Fox Business. “It was terrifying.” Jones recalled that her eyes and chest were burning as a result of the fire, and that smoke was “everywhere.”

Carnival noted that the port side of the funnel fell onto one of the ship’s decks during the incident.

CRUISES CANCELED FOLLOWING CARNIVAL FREEDOM FIRE DURING BUSY SPRING BREAK SEASON

Jones considers herself a veteran cruiser and has been sailing with Carnival since 2009. She said she did not know that the Freedom had been involved in another fire in May 2022 before she booked her March 21-26 voyage.

“Had I had that information prior, I would have done more research,” she said. “I wouldn’t have put myself in that type of situation had I known. All information should be divulged.” 

Jones also alleged that the ship was not well-equipped to handle fires, and she provided video of crew members attempting to spray the fire with hoses.

“Stepping on the Freedom with hoses that can’t reach every aspect of that boat in the event there’s a fire is putting your life on the line,” she said. 

When asked about the hoses, Carnival spokesman Matt Lupoli noted that “the fire was put out somehow,” although he did mention that the ship turned into a storm in order to get an assist from the rain.

Jones claimed she was considering legal action against Carnival, but she has not brought any action against the cruise line yet. Lupoli did not address potential litigation.

CARNIVAL FREEDOM CRUISE SHIP CATCHES FIRE FOR SECOND TIME IN LESS THAN 2 YEARS

The cause of the fire remains unclear. Carnival acknowledged that some witnesses reported a lightning strike, and said they were investigating. Jones is skeptical of this theory.

“Lightning did not hit that boat,” Jones insisted. “I was sitting there watching it.” Both she and the Carnival spokesman say the Freedom turned into a storm during the fire on March 23 to assist in fighting the flames. Jones said she was observing the situation from her cabin on the ship’s live video feed, and claims that she saw smoke before any lightning. She also said that she never saw lightning strike the ship.

Jones provided her own videos of the onboard experience, where the Freedom’s captain and cruise director can be heard over the ship’s intercom asking people to stay indoors and “keep clear of the open decks,” in particular decks 9 and 10. Jones said some people were blocked out of their rooms during the fire.

Two cruises this week were canceled as a result of the damage, Lupoli said. The ship was sent to the Freeport shipyard so work could be done to stabilize the funnel. It will be put back into service once repairs are completed, Lupoli said Wednesday. 

CARNIVAL FREEDOM CRUISE SHIP SEEN ON FIRE AT GRAND TURK

Carnival provided a refund and a 100% future cruise credit to those impacted by the March 25 and March 29 cancelations from Port Canaveral. However, Jones said, guests who experienced the fire first hand have not been given anything. Lupoli said it was because their cruise “went as planned,” and that the “crew worked very hard to give them a good time.” 

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“We greatly appreciate our terrific guests for their outstanding cooperation and support,” Lupoli said.

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