News Wrap: Federal Reserve cuts interest rates for 2nd time this year

Geoff Bennett:

The day's other headlines start at the Federal Reserve.

The Central Bank today cut its top-line interest rate by a quarter-point for the second time this year. Speaking to reporters, Chair Jerome Powell said the long-running risk of higher inflation had to be balanced with signs of weakness in the job market. He said another cut this winter is not a guarantee.

Jerome Powell, Federal Reserve Chairman:

With downside risks to employment having increased in recent months, the balance of risks has shifted. A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it.

Geoff Bennett:

Adding to the uncertainty over the Fed's next meeting is a lack of economic data, with many reports affected by the ongoing government shutdown.

President Trump is due to meet Chinese President Xi Jinping in South Korea in the coming hours on the last leg of his tour through the region. Before that, though, Mr. Trump attended the APEC Summit today, where he touted progress on a framework trade deal with South Korea. South Korean companies are set to invest $350 billion in the American economy in exchange for U.S. tariff relief.

The deal hasn't been signed yet, but Mr. Trump told leaders it's all but done.

Donald Trump, President of the United States: A lot was determined, very much determined. And we made our deal, pretty much finalized a trade deal.

Geoff Bennett:

South Korean officials said the potential deal involves both cash, investments and cooperation on shipbuilding. There was also pageantry amid the trade politics, including the president being presented with this replica crown from one of Korea's ancient dynasties.

In Eastern Europe, the U.S. military has confirmed it's reducing its presence along NATO's border with Ukraine. The news was first announced by NATO member Romania, which signaled that about 700 U.S. troops would be pulled from Romania as part of Washington's broader shift toward the Indo-Pacific region.

The U.S. Army Command in Europe insisted this is a positive sign of increased European capability and responsibility. But the Republican chairs of the House and Senate Armed Services committees say they strongly oppose the decision, which, as they put it, sends the wrong signal to Russia.

In the Middle East, the Israeli military carried out a targeted strike on Northern Gaza today, even as Israel says its cease-fire with Hamas is still in place. The attack near Beit Lahia targeted areas where Israel says Hamas was storing weapons. Palestinian officials say at least two people were killed.

It comes after Israel carried out heavy airstrikes overnight across Gaza, killing more than 100 people, including 46 children. Some were struck at a central hospital, as seen in this footage from our producer in Gaza, Shams Odeh.

One man described how he lost loved ones in the strike.

Hamid Habib, Displaced Palestinian (through translator):

The women were killed while sleeping. They couldn't wait to go from sleeping on the dirt in tents to sleeping in some form of shelter. To the negotiating parties, I wish you could see our tragedy here and how dire our situation is.

Geoff Bennett:

Israel says the strikes were in retaliation for the killing of an Israeli soldier in Southern Gaza, as well as a violation by Hamas related to the return of hostage remains. They were the deadliest attacks since the cease-fire started earlier this month.

In Brazil, officials say the death toll from a massive raid on a drug gang in Rio de Janeiro has jumped to at least 119. That includes four policemen. Dozens of bodies were laid side by side on a city street, as residents looked for missing relatives. Yesterday, some 2,500 officers carried out what officials are calling the largest such anti-drug raid in the city's history.

The U.N. today called for an end to the so-called cycle of extreme brutality in Brazil's policing methods. Rio's state government says those who were killed had resisted police.

A jury in Illinois convicted a former sheriff's deputy today of second-degree murder for killing Sonya Massey, who had called 911 for help. The jury did not convict Sean Grayson of first-degree murder, which could have meant life in prison. Instead, the 31-year-old faces up to 20 years or possibly probation.

Grayson and another deputy responded to Massey's home last year after she reported a possible intruder. Grayson shot Massey as she held a pot of boiling water. His lawyers argued he feared that she would throw it at him.

Antonio Romanucci, Attorney for Family of Sonya Massey: This second-degree murder charge, make no mistake. Sean Grayson is convicted of murder. He is a murderer now.

Geoff Bennett:

Outside the court, lawyers from Massey's family said the lesser charge still amounts to justice.

A.I. giant Nvidia became the world's first $5 trillion company today. The chipmaker's market value has surged amid an A.I. boom that is reshaping the world's economy. But it's also raised concerns about a potential A.I. bubble. Nvidia's shares jumped nearly 3 percent today.

Elsewhere, on Wall Street, stocks closed mixed after that Fed rate cut. The Dow Jones industrial average slipped about 75 points on the day. The Nasdaq rose 130 points. The S&P 500 ended virtually flat.

And letters from a pair of World War I soldiers have been found in a bottle on a beach in Western Australia. The men wrote them just days after departing for Europe back in 1916. Their words are still legible more than a century later.

In one, Private Malcolm Neville tells his mother that: "The food is real good so far, with the exception of one meal which we buried at sea."

Another from Private William Harley wishes that the finder of his message — quote — "be as well as we are at present." A local family came across the bottle as they were cleaning up the beach earlier this month. One of the soldiers' granddaughters called the discovery a miracle.