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      After Election Problems in Houston, Republicans Seek to Overturn Results

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      A growing number of contests to elections in Texas’ Harris County are a broad attempt to cast doubt on an Election Day that officials concede had problems.HOUSTON — Jon Rosenthal has seen some close races, but his re-election to the Texas State House in November, in a Houston district redrawn to be a virtual lock for Democrats, was not one of them. Mr. Rosenthal won by 15 points.So it came as a surprise when his Republican challenger in the race contested the results, petitioning the State Legislature to order a new election.Another surprise came late Thursday when the Republican candidate for the top executive position in Harris County, which includes Houston, announced that she, too, would contest her much narrower loss, by about 18,000 votes, to the progressive Democrat who is the county’s incumbent chief executive, Lina Hidalgo. By Friday, more than a dozen losing Republican candidates had filed suits to contest the results of their races.Election Day in Harris County, Texas’ largest county, saw a range of problems at polling places, including some that opened late and others that ran out of paper for printing voted ballots. A court ordered the polls to stay open an extra hour to compensate; then the Texas Supreme Court stepped in and halted the extra voting.Republicans, who have been watching closely for election issues in races around the country, seized on the difficulties in Harris County, which is becoming a Democratic stronghold. Candidates called into question the reliability of the results in a bitter and expensive campaign that failed to dislodge Ms. Hidalgo and a slate of Democratic judges.“It is inexcusable that after two months, the public is no further along in knowing if, and to what extent, votes were suppressed,” said Alexandra del Moral Mealer in explaining her decision to contest her loss to Ms. Hidalgo, adding that her challenge was “fundamentally about protecting the right to vote in free and fair elections.”Candidates called into question the reliability of the results in a bitter campaign that ended with Republicans failing to oust Lina Hidalgo and a slate of Democratic judges. Annie Mulligan for The New York TimesElection contests are not uncommon in Texas, often involving down-ballot races in small counties where the margins are often notably slim. But the challenges in Harris County appeared to be uniquely broad in their attempt to cast doubt on much of the voting process in an election that involved 1.1 million votes. They followed calls from state leaders, including Gov. Greg Abbott, for an investigation into the county’s handling of the election. The local district attorney opened an inquiry in November.The election contests in Harris County have at times resembled the one mounted in Arizona by the Republican candidate for governor, Kari Lake, who has sought to overturn her loss by claiming that election officials in one major county deliberately disenfranchised her voters. A judge dismissed her claims last month for lack of evidence.But the latest contests in Texas have little precedent, said the Harris County attorney, Christian Menefee, a Democrat. “To my knowledge, this is the first election contest filed in Harris County that is wholly focused on these kinds of process failures,” Mr. Menefee said in an interview.The sprawling Texas county has shifted more decisively in the direction of Democrats in the last few election cycles, following in the direction of other major Texas population centers.For a variety of reasons, it has struggled to conduct elections smoothly, drawing repeated scrutiny from Republican lawmakers in the State Capitol. The county’s size has been a challenge, covering an area nearly the size of Delaware with 2.5 million registered voters and more than 700 polling places. It has struggled with newly mandated voting systems and has not had steady leadership at its elections office, with three different administrators since 2020.An audit of the 2020 election, conducted by the secretary of state, highlighted a range of issues, including instances where Harris County did not handle its electronic records properly, though there was no evidence of widespread fraud.Several steps that the county took during the coronavirus pandemic to make it easier to vote in Houston — such as limited 24-hour voting and drive-through polling places — also drew criticism from Republicans, who argued that the changes had made the election less secure. The Republican-dominated State Legislature, in its last session, took steps to curtail many of the measures.Voters waited in line at Damascus Missionary Baptist Church on Election Day in Houston in November.Annie Mulligan for The New York TimesOn Election Day in November, the county experienced problems at a number of polling places, including several that were significantly delayed in opening and others that reported running out of paper ballots.A judge ordered polling places in the county to remain open for an extra hour after the Texas Organizing Project, a nonprofit, filed suit over the issues, claiming that voters were being prevented from casting ballots. The Texas Supreme Court stepped in and stayed the ruling in response to a challenge from the Republican attorney general, Ken Paxton. The court eventually allowed about 2,000 provisional ballots that were cast during the extra voting time to be added to the official count.The county elections administrator, Clifford Tatum, has defended the election process and said the issues that came up reflected small problems in an otherwise well-run election. “Overall, Election Day was a success,” a postelection report from Mr. Tatum’s office concluded.But the report, released last week, also found that the county’s voting system was in “an immediate need of upgrades or replacements” to correct software issues, simplify voting day setup and create a system for the elections administrator to know in the moment whether problems reported at polling places had been resolved.The Harris County Republican Party has focused on a broad range of issues that arose on Election Day, including not only sites that ran out of paper ballots but also others where poll workers incorrectly fed paper ballots into the voting machines.In its report, the election administrator’s office said that officials at 68 voting centers reported running out of the initial allotment of paper on Election Day, and that only 61 of them said they had received deliveries of more paper.But it remained unclear how many voters were turned away because of the paper shortages, in part because, according to the report, some of the election judges “declined to speak after reportedly being advised not to do so by the Harris County Republican Party.”A spokeswoman for the county Republican Party, Genevieve Carter, denied any such instructions. “We encouraged them to provide their firsthand account of any issues that occurred,” she said. “Our goal is to get to the bottom of what went wrong during this election.”The party’s lawyers and leaders have not claimed that they can prove their candidates should have won. Instead, they have argued that the scope of the problems on Election Day were so great — including, they claimed, allowing some voters to cast ballots who were no longer eligible to do so in the county — that the true results in the election cannot be known; they are demanding that new elections be held. (More than two-thirds of the ballots were cast either during early voting or by mail, not on Election Day.)“We have a systematic cancer that has invaded our election process,” said the chair of the county Republican Party, Cindy Siegel.Democrats have not raised public challenges, but have privately complained that the repeated issues in the election process in Houston were not being adequately addressed, giving Republicans fuel for their efforts to pass new restrictive laws and, now, election contests.Jon Rosenthal said he believed the challenge to his election was frivolous, and that allowing it to go forward in the State House could cause future headaches for lawmakers. Kevin Dietsch/Getty ImagesOnly the candidates themselves can initiate the contests, and so far at least 14 have done so, including Ms. Mealer, a first-time candidate who received millions in campaign contributions from top Houston-area donors; Mr. Rosenthal’s challenger, Michael May; a candidate for county district clerk; and nine Republican judicial candidates.One of the earliest challenges came from a judicial candidate, Erin Lunceford, who lost by 2,743 votes, and filed suit late last year. Ms. Lunceford’s suit includes 19 separate claims of issues with the way votes were handled or counted during the November election and asks the court to void the judicial election and “declare that the true outcome of the election cannot be ascertained.” Ms. Lunceford is represented by Andy Taylor, an election lawyer for the county Republican Party.Ryan MacLeod, a lawyer for the Democrat who won the race, Tamika Craft, described the suit in court papers as a “stunt to make headlines” after an election was lost, and said that “no allegations are supported by facts” and that no evidence had been provided.In the latest challenge on Thursday to the outcome of the race for Harris County judge — effectively the county’s chief executive — Ms. Mealer’s lawyers focused primarily on the paper ballot issues, arguing that they had been concentrated in high-turnout Republican areas and that county officials had “suppressed the voting rights” of residents in those places.Ms. Hidalgo’s office referred questions to the county attorney, Mr. Menefee, who described the challenges as “frivolous attempts to overturn the votes of more than a million residents.”Unlike the other challenges, Mr. May’s contest to his loss against Mr. Rosenthal does not go before a judge, because it involved a State House race. Instead, under Texas law, it will be considered by state legislators, who reconvene this month. The House could decide that the challenge is frivolous and reject it quickly, or choose to investigate the allegations by gathering testimony and evidence before deciding whether the result should be voided and a new election held.Mr. May, in his petition, cited the paper ballot issues and argued that eligible voters were turned away and unable to cast ballots. He has not provided evidence and did not respond to a request for comment.Mr. Rosenthal said he believed the challenge was frivolous and that allowing it to go forward could cause future headaches for lawmakers.“If there is life given to this, and there is no consequence for bringing something this frivolous, you’re setting up for election challenges across the state,” he said. “You could have dozens of challenges per cycle.” More

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      Just What Do McCarthy’s Antagonists Want, and Why Won’t They Budge?

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      The Republican holdouts are showing that party leaders’ usual methods of arm-twisting no longer work. “It’s not about policies, it’s about the fight,” said one former operative.As the Republicans’ drama over Representative Kevin McCarthy’s bid to become House speaker persists for round after round of negotiations and roll-call votes, one puzzling question is just what, exactly, the rebels want.To the endless frustration of McCarthy and his allies, the insurgents’ demands have been heavy on two factors: internal procedural rules meant to expand the power of the far right within the House, and the insurgents’ desire to present themselves as uncompromising foes of Democrats’ agenda. But more than anything else, McCarthy’s most die-hard opponents just seem intent on taking him down.“It’s not about policies, it’s about the fight,” said Doug Heye, a former aide to Representative Eric Cantor, the onetime majority leader who lost his seat in a stunning 2014 upset by a far-right challenger, David Brat. “The more you hear the word ‘fight’ or ‘fighter,’ the less you hear about a strategy for winning that fight.”The longer the speaker battle has dragged on, the more McCarthy’s supporters have expressed exasperation at this state of affairs. Representative Dan Crenshaw of Texas accused the holdouts of mouthing “stupid platitudes that some consultant told you to say on the campaign trail.” Representative Don Bacon, who holds a swing seat in Nebraska, has taken to calling them “the chaos caucus” and the “Taliban 20.”Such strident language isn’t new: Representative John Boehner, who was hounded out of the speakership in 2015 by the ultraconservative Freedom Caucus, later lashed out at one of its co-founders, Representative Jim Jordan of Ohio, as a “political terrorist” and a “jerk.” (Jordan is now backing McCarthy, and is set to run the powerful Judiciary Committee if and when the speaker fight is resolved.)Fueled by the grass-roots rightOne of the peculiarities of this speaker vote has been watching McCarthy’s team try to marshal the conservative-industrial media complex, which helped power the rise of political outsiders like Donald Trump and has steadily weakened the ability of party leaders to keep backbenchers in line.“We’ll see what happens when Tucker and Sean Hannity and Ben Shapiro start beating up on those guys,” Representative Guy Reschenthaler of Pennsylvania wistfully told reporters at the Capitol this week. “Maybe that’ll move it.”But Tucker Carlson did not beat up on those guys, instead celebrating the speakership debate as “pretty refreshing.” Nor is it clear that Fox News can command the exclusive loyalties of the right. Witness how, during the Republican primary for Senate last year in Pennsylvania, a network of conservative blogs and podcasts fueled the sudden rise of Kathy Barnette, a little-known conservative media personality who was able to throw a last-minute fright into Trump and Hannity’s preferred candidate, Mehmet Oz.“Is this a game show?” a frustrated Hannity pressed one of the House holdouts, Representative Lauren Boebert of Colorado, on his Fox News show on Wednesday night. She didn’t back down.Chris Stirewalt, a former editor at Fox News, said that “what happens online, on talk radio and on Fox prime time has been and will continue to be the harbinger of what House Republicans will do.” He added that the representatives and congressional aides he was speaking with were “all talking about how their positions were playing with the different hosts and sites.”F.A.Q.: The Speakership Deadlock in the HouseCard 1 of 7A historic impasse. More

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      Who Is Cheryl L. Johnson? The House Clerk In Charge Without a Speaker

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      Cheryl L. Johnson is no stranger to the arcane and sometimes repetitive elements of parliamentary procedure in Congress. Before she took the position, she worked for nearly 20 years in the House, with stints on the Subcommittee on Libraries and Memorials and the House Committee on Education and Labor, where she served as a principal policy adviser and spokeswoman.But infighting among Republicans has put Ms. Johnson in the unusual position of keeping the House running through her own rulings in the absence of a speaker. The speaker of the House is responsible for setting House rules. Without one in place, enforcing smooth and peaceful operations has fallen to Ms. Johnson until a vote succeeds.As acrimony grew among lawmakers struggling to settle on a speaker for a third day, even Ms. Johnson appeared exasperated.In her opening on Thursday, she implored lawmakers to be polite and halt the grandstanding that has consumed previous votes.“Before proceeding further, the chair would like to clarify that as part of the clerk’s role during the organization of the house, the clerk has the responsibility to preserve order and decorum in the chamber,” she said, before lecturing lawmakers to follow etiquette on the House floor.“Members-elect should refrain from engaging in personalities toward other members-elect,” she said. “The chair appreciates the cooperation of members-elect in respecting and upholding order and decorum in the House — thank you.”So far, members have largely respected Ms. Johnson’s authority, not speaking out of turn and keeping their nomination speeches and votes within a respectful length and tone. But with frustration growing in the chamber, some lawmakers began to express disdain for the process both on and off the House floor.Ms. Johnson is no stranger to discontent in the House. Sworn in twice, in 2019 and 2021, she presided over two impeachment proceedings against former President Donald J. Trump and witnessed the attack on the Capitol by a pro-Trump mob on Jan. 6, 2021.A native of New Orleans, Ms. Johnson, who is in her early 60s, earned a degree in journalism and mass communication from the University of Iowa and a law degree from Howard University in Washington. More

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      Josh Shapiro to Nominate Al Schmidt as Pennsylvania’s Elections Chief

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      Josh Shapiro, who will take office as governor this month, says he will nominate Al Schmidt, a longtime Republican official from Philadelphia, to be secretary of the commonwealth.Pennsylvania’s incoming Democratic governor, Josh Shapiro, will nominate a Philadelphia Republican who resisted Donald J. Trump’s efforts to overturn the 2020 presidential election results to serve as the state’s chief election official, Mr. Shapiro said Thursday.For Mr. Shapiro, who will be sworn into office on Jan. 17, his choice for secretary of the commonwealth represents both an olive branch to moderate Republicans and a public affirmation of belief in the state’s election systems. Al Schmidt, Mr. Shapiro’s pick for the job, is a former Philadelphia city commissioner and longtime political figure.“Al Schmidt has a proven track record of defending our democracy, protecting voting rights and standing up to extremism — even in the face of grave threats,” Mr. Shapiro said in a statement released by his office. “I know he is ready to continue the hard work of preserving and strengthening our democracy.”For a decade, Mr. Schmidt, 51, held the Republican-designated seat on Philadelphia’s three-member city commission, which oversees municipal elections. He also served as executive director of the Philadelphia G.O.P. and as a senior adviser to the Republican Party of Pennsylvania.Still, Mr. Schmidt was relatively unknown outside Philadelphia until Mr. Trump, after the 2020 election, applied public pressure on him to stop counting absentee ballots. In 2021, Mr. Schmidt testified to the Senate that Mr. Trump’s comments had led to death threats that he said were intended to “intimidate and coerce us into not counting every valid vote.”“After the president tweeted about me, my wife and I received threats that named our children, included my home address and images of my home, and threated to put their ‘heads on spikes,’” Mr. Schmidt said. “What was once a fairly obscure administrative job is now one where lunatics are threatening to murder your children.”Last summer, Mr. Schmidt appeared before the House committee investigating the Jan. 6 attack on the Capitol and revealed written threats received by members of his family from Mr. Trump’s supporters, including one that read “Heads on spikes. Treasonous Schmidts.”Mr. Schmidt said in the statement released by Mr. Shapiro’s office that he would work to ensure that elections “remain free and fair here in Pennsylvania, and that we do more to ensure every eligible voter can make their voice heard.”Mr. Schmidt, whose nomination will need to be confirmed by the Republican-controlled State Senate, is the first cabinet appointment announced by Mr. Shapiro since November, when he defeated Doug Mastriano, a Republican and prominent election denier. Mr. Mastriano, a retired Army colonel, chartered buses to Washington for the Jan. 6, 2021, rally that led to the attack on the Capitol; he campaigned on a platform of restricting ballot access in Pennsylvania.In an interview last month, Mr. Shapiro said he hoped that Republicans in the Pennsylvania legislature would agree to change the state’s law that forbids the processing of absentee ballots and early votes before Election Day. The ballot procedures, which can drag out the counting, helped fuel the Trump-inspired threats against Mr. Schmidt.He also described the role for which he eventually nominated Mr. Schmidt.“I’m going to appoint a pro-democracy secretary of state,” he said in the interview. “We will respect the will of the people, certify the winners, whether we agree with the pick or not. That’s going to be my charge to my secretary of state.” More

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      Kevin McCarthy’s Business Ties Complicate His Rise to Power

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      To land the House speaker position, the California Republican will have to win over opponents who question his ties to Silicon Valley and his commitment to right wing causes.The House, divided.Michael Reynolds/EPA, via ShutterstockKevin McCarthy, Inc.Representative Kevin McCarthy, Republican of California, is still working on landing the House speaker gig after six failed attempts. It’s the first such House floor showdown in a century, and business is at the heart of his woes.Mr. McCarthy’s critics say he’s too friendly with Big Tech. The ultraconservatives who have stymied his rise to power list a number of big objections with Mr. McCarthy. They say that he isn’t sufficiently committed to right-wing causes and that he hasn’t pushed back enough against perceived anti-conservative bias on social media. Yet the would-be speaker published a policy proposal over the summer to “Stop the Bias and Check Big Tech” if Republicans took control of the House.Mr. McCarthy’s messaging has not convinced hard-line party members. His hot-and-cold ties to Silicon Valley haven’t helped his standing either. Jeff Miller, a political adviser to Mr. McCarthy, also represents Apple and Amazon, and two former staff members are now Big Tech lobbyists. Meanwhile, Mr. McCarthy has benefited from tens of thousands of dollars in donations from tech companies and executives.The Republican leader has also alienated onetime corporate allies. Lobbyists once bet big on Mr. McCarthy, but relations have soured somewhat after he embraced former President Donald Trump’s antagonistic approach to corporations with perceived ties to the left.The Chamber of Commerce endorsed 23 Democrats for the House in 2020 and 15 won. That put the speakership out of reach for Mr. McCarthy at that time and he’s reportedly been sore since. The Republican pushed for Suzanne Clark, the Chamber’s C.E.O., to be removed but the organization was unmoved, and issued a statement in support of her.Even before Mr. McCarthy’s failure this week, lobbyists were giving up on him and Washington insiders — including Paul Ryan, the former Republican House speaker now at the executive advisory firm Teneo — were telling executives to stay out of the political fray.Meanwhile, the business of the government is stuck. Until Republicans resolve their internal conflicts, the House is at a standstill. Members have not been sworn in, administrative tasks and constituent services have been delayed and legislative work is on the back burner. Mr. McCarthy and his allies held talks with the holdouts last night to find a resolution. Democrats could step in to help (members of both parties have apparently discussed it), but that doesn’t appear to be on the table right now.Mr. McCarthy has vowed to continue for as long as it takes. In 1923, it took nine ballots to elect a speaker. The House is scheduled to meet again at noon.HERE’S WHAT’S HAPPENING The Justice Department moves to seize Robinhood stock tied to Sam Bankman-Fried. Federal prosecutors argued on Wednesday that the $465 million worth of shares in the online brokerage weren’t part of the FTX bankruptcy estate. Bankman-Fried bought the shares through an investment vehicle with money borrowed from Alameda Research, FTX’s trading affiliate.Walgreens will sell abortion pills. The pharmacy giant said it would dispense mifepristone, becoming the first national chain to do so after the F.D.A. announced new rules for dispensing the drug. CVS and Rite Aid said they were still reviewing the agency’s new policy.China defends its handling of the Covid outbreak. Facing criticism from the World Health Organization and President Biden over the accuracy of its coronavirus tally, Beijing fired back on Thursday, saying the situation was “controllable.” It also plans to reopen its border with Hong Kong on Sunday after a three-year closure.The man behind the college admissions scandal is sentenced. Rick Singer, whom prosecutors accused of orchestrating a $25 million cheating scheme that involved actors, business executives, doctors and more, must serve three and a half years in prison. Singer, who had become an informant, received the longest sentence of anyone tied to the scandal.CES kicks off today. Enormous crowds are expected to return to the tech trade show in Las Vegas this year, after the pandemic clamped down on in-person attendance. Expect plenty of announcements about new televisions, smart-home gadgets, electric cars and more.The bleeding continues at Big Tech Amazon said on Wednesday that it would drastically expand its planned layoffs to a staggering 18,000 jobs as it seeks to rein in costs. Coupled with Salesforce’s plans to lay off about 8,000 employees, it’s the latest sign that tech giants are still grappling with the consequences of overhiring during the pandemic boom.Amazon’s cuts amount to around 6 percent of its corporate work force and will be focused on human resources and what the e-commerce giant calls its Stores division: its main online site, its field operations and warehouses, its physical stores and other consumer teams. (Hourly warehouse workers aren’t part of the tally.) That’s up from the roughly 10,000 the company had been weighing earlier.Salesforce is also laying off 10 percent of its employees and cutting back on office space. The move comes after a series of shake-ups at the business software giant, including the announced departures of Bret Taylor, its co-C.E.O. (reportedly after strains in his relationship with Marc Benioff, the company’s co-founder) and Stewart Butterfield, the C.E.O. of Slack, the messaging app Salesforce bought for nearly $28 billion.It’s a notable retrenchment for Salesforce, whose reputation over the past decade has become one of ever-growing ambition: The company is the largest private employer in San Francisco, and its flagship office tower is the city’s tallest.Both rounds of layoffs arose out of overexpansion. Amazon more than doubled its work force during the pandemic, to 1.5 million, as it became an indispensable seller to locked-down households. Salesforce nearly doubled its head count over the past three years, to 80,000 in October.Those hiring sprees have since run into a slowing global economy, with Amazon having warned in the fall that it could see its worst growth rate since 2001. “We hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” Benioff wrote in a letter to employees.Amazon and Salesforce aren’t alone: Meta recently laid off 13 percent of its work force, while Snap and Twitter have also resorted to huge job cuts. Overall, the tech industry laid off over 153,000 workers last year, according to Layoffs.fyi. Things may not get better this year, with analysts cautioning that tech companies’ customers may further clamp down on spending, potentially leading to yet more cost cuts.“The parallels with Russia and Ukraine are hard to ignore. We must not make the same mistakes with Xi Jinping that we did with Vladimir Putin.” — Anders Fogh Rasmussen, a former secretary general of NATO, urged a robust and unified response to deter China from attacking Taiwan. His comments, made during a visit to Taipei, highlighted worries in Europe over China’s growing assertiveness in Asia.The Fed’s big challenge: exuberant marketsInvestors got the post-Christmas “Santa Claus rally” they were hoping for, a buying spree that was fueled in part by slumping energy prices. But the big cloud hanging over markets remains: the prospect that central banks will be emboldened to tame inflation with more interest rate increases.Fed officials gave investors an unambiguous warning on Wednesday: Don’t start pricing in a dovish pivot anytime soon. Many on Wall Street are banking on the U.S. central bank to end its policy of jumbo rate increases in the first half of 2023, and to begin cutting by year-end.But the Fed sees any pivot prediction as misguided, warning that such thinking could complicate its efforts to bring prices under control. Minutes from a December Fed meeting released on Wednesday, did not mince its words. “No participants anticipated that it would be appropriate” to cut rates.As the Times’s Jeanna Smialek reported, policymakers are concerned that markets might misinterpret any decision to slow the pace of rate moves in the near term as a sign that the Fed believed it was making enough progress in bringing inflation closer to its 2 percent target. (The I.M.F. has also weighed in, saying that it doesn’t believe the U.S. has “turned the corner on inflation yet” and that the Fed should “stay the course.”)The markets still don’t seem to be getting the message. “Right now data signals are mixed — like an ink blot, investors can see what they want,” Elsa Lignos, RBC Capital Market’s global head of FX Strategy, said in a note to clients this morning. She pointed out that manufacturing prices were in decline, but that job vacancies remained elevated, suggesting wages could continue creeping higher.A late-afternoon surge on Wednesday helped the S&P 500 and Nasdaq close higher. Between the Dec. 27 open and Wednesday’s close, the S&P 500 rose 0.8 percent, capping off the seventh consecutive annual Santa rally, measured by the stock market’s performance over the seven trading days that follow Christmas. The most bullish on Wall Street see such rallies as a sign that investors will keep buying well into the new year.Investors and Fed officials will be closely watching Friday’s jobs report. The Fed is concerned that the labor market is still too tight, belying the recent headline-grabbing layoffs at tech giants. A jobs report showing big gains in wages and hiring could force the Fed to remain locked in to its “higher for longer” rates policy, adding to additional market volatility.THE SPEED READ DealsShares in GE HealthCare Technologies rose 8 percent in their debut on Wednesday, after being spun off from General Electric. (Bloomberg)Western Digital has reportedly resumed talks to buy Kioxia, a Japanese memory chip maker. (Bloomberg)A unit of Tokyo Gas is said to be in advanced talks to buy the U.S. natural gas producer Rockcliff Energy for about $4.6 billion. (Reuters)Fanatics reportedly plans to divest its 60 percent stake in Candy Digital, a sports N.F.T. company. (CNBC)PolicyEuropean regulators fined Meta 390 million euros after finding it had illegally forced users to effectively accept personalized ads. (NYT)The S.E.C. has objected to Binance.US’s $1 billion bid to purchase the bankrupt crypto lender Voyager Digital. (Reuters)Silvergate, a bank, was forced to sell assets at a steep loss to cover $8.1 billion in customer withdrawals after the collapse in November of FTX. (WSJ)Best of the restA self-described Tesla fan filed a Tesla trademark for a boat and jet without the company’s knowledge. (Bloomberg)Amazon, SiriusXM and Spotify are cutting back on their spending on new podcasts. (Bloomberg)The stars of the 1968 film “Romeo and Juliet” sued the movie’s distributor, Paramount, for $500 million over being made to film a nude scene while they were teens. (NYT)A Princeton student said he had created a program to detect whether an essay was written by the A.I. chatbot ChatGPT. Meanwhile, New York City’s education department banned the use of ChatGPT on some city devices and internet networks. (Insider, Chalkbeat New York)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Surprise in Pennsylvania: Republicans Back a (Former?) Democrat for Speaker

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      Representative Mark Rozzi, long a moderate Democrat, pledged not to caucus with either party as speaker of the closely divided state House of Representatives. Many questions remain.HARRISBURG, Pa. — The new legislative session began at noon on Tuesday, and despite the cheery bouquets and wide-eyed family members, the statehouse was humming with nervous anticipation. For weeks, it had been unclear which party could claim a majority in the state House of Representatives: the Democrats won more seats in November, but because of a death and two resignations, the Republicans had more members for now.The election of a speaker, the new House’s first piece of business, was going to put this fiercely debated question to the test.After a long afternoon of suspense, and to the surprise of nearly everyone in the House, the choice was made: a moderate Democrat from the Reading area, nominated by two Republicans, who was on almost no one’s radar and who pledged in his first speech to be “the commonwealth’s first independent speaker.”“I’m sure a lot of you didn’t see this coming today,” the new speaker, Representative Mark Rozzi, said at the rostrum.Harrisburg is not the only capital where the mere act of deciding who is in charge has proved fraught in the early days of the new year. Before the session in Pennsylvania began, the repeated botched attempts by Republicans in Washington, D.C., on Tuesday to elect a speaker in the U.S. House of Representatives were playing out on televisions in the Pennsylvania statehouse. Meanwhile, Democratic state representatives next door in Ohio helped elect a Republican House speaker there who is not as conservative as the candidate backed by most Republicans in their supermajority.The fights in Washington and Ohio were ideological, but the maneuvering in Pennsylvania was largely about strategy, given the bizarre circumstances leading up to Tuesday’s vote. Democrats outperformed expectations on Election Day in Pennsylvania, winning a U.S. Senate seat, the governor’s office and, perhaps most surprising of all, control of the state House, where they had been out of power for more than a decade.It was only a one-seat majority, though, and one of the winning candidates had died a few weeks before the November election. Then, in early December, two Democrats who had been re-elected to the House and at the same time had been elected to higher offices resigned their House seats.At issue in the weeks that followed was whether “majority” meant the party that the voters in the most districts had chosen, or the party that had the most members at the moment the session began. The Democrats argued for the former, the Republicans the latter. The question was put to the courts, even as Republicans and Democrats held dueling swearing-in ceremonies last month for House majority leader.Democrats are heavily favored to win the special elections to fill the three vacant seats, but the first of those votes won’t take place until at least Feb. 7. So the looming question as the session opened Tuesday was which party would control the House for now, while Republicans have a 101-99 advantage.Few lawmakers, it seemed, began the day Tuesday thinking of Mr. Rozzi as a candidate for speaker. Members recited the Pledge of Allegiance at a swearing-in ceremony.Matt Smith/Associated PressThe significance was not just symbolic, even in a state where power was already divided, with a Republican-controlled State Senate and a Democratic governor. Republicans hoped to vote on several constitutional amendments that would not require Gov. Josh Shapiro’s signature; one would require voters to show identification at the polls and another would give the legislature the power to reject regulations put in place by the executive branch. Democrats were worried that the Republicans would also change the rules of the House if they briefly won control, making it hard to elect a new speaker after the Democrats retook the majority.Caucuses and party leaders gathered all morning on Tuesday to discuss strategy, talks that continued in the afternoon in smaller huddles on the House floor. A vote to adjourn without picking a speaker deadlocked at 100-100, with one Republican voting with the Democrats.Then the clerk called for nominations for speaker. What came next were a series of surprises. First, Representative Jim Gregory, a Republican representing a district outside Altoona, stood and named Mr. Rozzi, a Democrat.“As we are gathered in this chamber today, we must look at our razor-thin majorities,” Mr. Gregory said, urging the members to put “people over politics.” Then another lawmaker, the Republican House whip, seconded the nomination.All eyes turned toward the Democrats, and specifically toward Representative Joanna McClinton, the Democratic leader, who had been expected to become the first Black woman to serve as speaker of the Pennsylvania House. Ms. McClinton announced that she supported the nomination of Mr. Rozzi.With 16 Republicans, including party leaders, joining all of the Democrats, Mr. Rozzi won the speakership, defeating a traditionally conservative Republican who only minutes earlier had been the presumptive Republican choice.Virtually no one in the House other than Mr. Gregory and Mr. Rozzi, it seemed, had recognized Mr. Rozzi as a candidate when the day began. Mr. Gregory said afterward that he raised the idea with Republican leaders shortly before nominating him on the floor. Mr. Gregory had developed a good working relationship with Mr. Rozzi, but he also saw nominating him as a way to outflank an almost assured Democratic majority.“Here in Pennsylvania, we play two different games: Some people play checkers, and some people play chess,” Mr. Gregory said after the vote. “And I think what you just witnessed is a Democrat member who was in the majority leave the majority to go independent.”As the Republicans saw it, Mr. Rozzi’s move would mean that the Democrats could not achieve a majority even after the special elections. In the halls of the capitol afterward, Republicans mulled how such an evenly split House would operate: who would control committees, for example, and how they would be divvied up.But it had all happened so quickly that on Wednesday, there were far more questions than answers. Mr. Rozzi, who has been a reliable moderate Democrat during his tenure in the House, is best known for his efforts on behalf of victims of childhood sexual abuse. Having spoken openly of being raped by a priest as a child, Mr. Rozzi sponsored, along with Mr. Gregory, a constitutional amendment allowing victims to sue their abusers long after criminal statutes had expired. Mr. Rozzi pushed for a bill to extend the statute of limitations for sexual abuse cases, an issue he discussed in 2016 with the governor at the time, Tom Wolf.Nicole Bengiveno/The New York TimesIf the House and Senate vote on it early in the new session, that amendment could be on the ballot as soon as this May. Mr. Gregory said that making sure the House moved quickly on the amendment was the main reason that he and Mr. Rozzi had begun discussing their plan for the speakership.While Mr. Rozzi did emphasize in his initial remarks before the House that he aimed to be an independent speaker, pledging not to caucus with either party, it remained unclear what that would mean in practice.In a private meeting with Democrats after the vote on Tuesday, Mr. Rozzi assured them that he still considered himself a Democrat, comments first reported by SpotlightPA, a state news outlet, and confirmed by a Democratic House member.In response, the House Republican leader, Representative Bryan Cutler, said in a statement that Republicans “continue to believe what he committed to publicly in his address and what he promised to our leaders privately about fully becoming an Independent has not changed.”On Tuesday evening, after hours of hushed meetings, Mr. Rozzi briefly addressed a crowd of reporters in the capitol rotunda who were hungry for any information that would make sense of the day’s events.“I look forward to talking to you more about my plans as speaker, but such a heavy discussion deserves considered forethought,” the new House speaker of the fifth-largest state said, standing in the glare of spotlights at a hastily assembled lectern. “And as this was unexpected, I will be making no further comments tonight. Thank you.”Many of the lingering questions may not be answered until the House reconvenes, at a time to be set by the speaker. As of Wednesday afternoon, no date had been announced. More

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      Trump Calls on Republicans to Embrace McCarthy for Speaker

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      Former President Donald J. Trump on Wednesday made a direct appeal to House Republicans to support Representative Kevin McCarthy of California for speaker, after Mr. McCarthy lost three successive votes for the post amid a hard-right rebellion led by some of Mr. Trump’s most loyal allies in Congress.“Some really good conversations took place last night, and it’s now time for all of our GREAT Republican House Members to VOTE FOR KEVIN, CLOSE THE DEAL, TAKE THE VICTORY,” Mr. Trump, who is running for president, wrote on his website, Truth Social.On Tuesday, as the California Republican suffered defeat after humiliating defeat on the House floor, Mr. Trump had refused to reiterate his endorsement for Mr. McCarthy, telling NBC News’ Garrett Haake, simply, “We’ll see what happens.”Mr. Trump and Mr. McCarthy then spoke Tuesday night, after the embarrassing once-in-a-century debacle on the House floor and after Mr. Trump made his tepid comment on NBC.After the conversation, Mr. Trump arrived at a more full-throated statement reiterating his backing for Mr. McCarthy, though he still tempered his praise.“REPUBLICANS, DO NOT TURN A GREAT TRIUMPH INTO A GIANT & EMBARRASSING DEFEAT,” he wrote. “IT’S TIME TO CELEBRATE, YOU DESERVE IT. Kevin McCarthy will do a good job, and maybe even a GREAT JOB — JUST WATCH!”Whether Mr. Trump can sway enough of the holdouts who are opposing Mr. McCarthy is an open question, and one that will test Mr. Trump’s ongoing influence over the House Republican conference, a wing of which has crafted itself in his image, as he mounts his third presidential campaign.Despite Mr. Trump’s earlier endorsement of Mr. McCarthy and his effort to whip votes for him ahead of the speaker vote, 20 Republicans still voted against Mr. McCarthy. The most aggressive McCarthy detractor, Representative Matt Gaetz, Republican of Florida, is also one of Mr. Trump’s most loyal allies in Congress. Mr. Trump’s support for Mr. McCarthy has done nothing to temper his opposition. More

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      ¿Trump o DeSantis? Los evangélicos hispanos entre dos opciones

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      Aunque Donald Trump es el único republicano que ha anunciado su candidatura a la presidencia, el gobernador de Florida también es un contendiente posible. Un enfrentamiento entre los dos podría hacer que los evangélicos latinos emitan un voto determinante.MIAMI — El gobernador de Florida, Ron DeSantis, todavía no ha anunciado que contenderá a la presidencia. Pero entre los bloques de electores de derecha que lo apoyan para que participe en las elecciones primarias de 2024 se encuentran algunos de sus más grandes seguidores: los cristianos evangélicos hispanos.No es que se opongan al expresidente Donald Trump, el único republicano que ya se ha declarado candidato. Pero un enfrentamiento entre los dos titanes de la derecha podría hacer que los evangélicos latinos emitan un voto pendular determinante en Florida, lo cual potenciaría su influencia y centraría una enorme atención nacional en sus iglesias, su política y sus valores.“Si hay elecciones primarias, no hay duda de que habrá fragmentación en el movimiento conservador y de que eso será cierto también para los evangélicos hispanos”, dijo el reverendo Samuel Rodriguez, pastor en Sacramento, California, y presidente de la Conferencia Nacional de Liderazgo Cristiano Hispano. “Conocemos los valores que mantenemos y las políticas que queremos. La pregunta que surge es: ¿quién los reflejará de verdad?”.El grupo de Rodriguez celebró una reunión el mes pasado en Tampa, Florida, con cientos de pastores de todo Estados Unidos, donde los asistentes dijeron que entre cada sesión se hablaba más de política que de las Escrituras.La conversación se resumía a una elección: ¿Trump o DeSantis?Son pocos quienes ya tienen una respuesta, lo que no es sorprendente, dado que falta más de un año para las primeras votaciones de la campaña de 2024. Pero hablar de 2024 (de Trump, quien pasó años cortejando a los evangélicos, y de DeSantis, quien se ha inclinado por las batallas culturales que atraen a muchos cristianos conservadores) mostró tanto las mayores expectativas entre los líderes evangélicos hispanos en Florida como su deseo de demostrar la fuerza de su cristianismo, ahora abiertamente politizado.“Tiene que ver con la moral y hay un partido en este momento que refleja nuestra moral”, dijo Dionny Báez, un pastor de Miami que encabeza una red de iglesias. “No podemos tener miedo de recordarle a la gente que tenemos valores por los que los republicanos están dispuestos a luchar. Tengo la responsabilidad de dejar claro en qué creemos. No podemos seguir haciendo de eso un tabú”.Desde hace mucho tiempo, los evangélicos hispanos han tenido una influencia enorme en Florida, donde los latinos conforman casi un 27 por ciento de la población y el 21 por ciento de los ciudadanos que pueden votar. Aunque los superan los hispanos que son católicos romanos, los evangélicos son mucho más proclives a votar por republicanos. En general, los votantes hispanos en el estado favorecieron a los republicanos por primera vez en décadas en las elecciones de medio mandato de noviembre.DeSantis se fue acercando a los evangélicos hispanos a medida que aumentaba su perfil a nivel nacional.Cuando el año pasado promulgó una ley que prohíbe los abortos después de las 15 semanas de gestación, lo hizo en Nación de Fe, una enorme iglesia evangélica hispana en el condado de Osceola. Declaró el 7 de noviembre, un día antes de las elecciones de medio mandato, como el “Día de las Víctimas del Comunismo”, lo cual hacía referencia no solo a los cubanos en el estado, sino a los inmigrantes venezolanos y nicaragüenses, que han contribuido a llenar los bancos de las iglesias evangélicas de Florida. Sus asesores de campaña hablaron en varias ocasiones con pastores hispanos, para cultivar un apoyo que muchos esperan que DeSantis intente capitalizar en una campaña presidencial.Claro que Trump también puede recurrir a sus leales: Rodriguez habló en su toma de posesión en 2017 y otros líderes evangélicos hispanos lo respaldaron.Simpatizantes latinos de Trump en un mitin en Miami en noviembre. Desde el ascenso político del expresidente en 2016, los republicanos han ganado terreno entre los votantes latinos en Florida.Scott McIntyre para The New York TimesPero DeSantis podría complicar la ecuación en las futuras elecciones primarias republicanas en 2024 debido a la concentración y considerable influencia de los evangélicos hispanos en Florida. Muchos ven a DeSantis como un héroe de la pandemia, ya que lo elogian porque no exigió el cierre de las iglesias ni hizo obligatoria la vacunación.Una batalla por las lealtades evangélicas hispanas solo consolidaría aún más su importancia en Florida y más allá, a medida que se organicen y traten de ejercer el poder con mayor eficacia.En Miami y otros lugares, las iglesias evangélicas hispanas abarcan desde pequeños establecimientos comerciales hasta megaiglesias con bandas de seis músicos y cafeterías con todos los servicios. Ciudadanos estadounidenses de segunda y tercera generación rezan junto a inmigrantes recién llegados de Puerto Rico, Venezuela, Cuba y la República Dominicana. Las misas suelen celebrarse en español, aunque muchos fieles son bilingües y desean que sus hijos hablen inglés y español.Muchos no votaron sino hasta la última década y su primer voto fue por Trump en 2016 o 2020. Su estilo político ha servido de modelo para algunos pastores evangélicos latinos que han avivado la ira por las restricciones del coronavirus. Según los pastores, la asistencia a las iglesias aumentó durante la pandemia.En Segadores de Vida, una iglesia evangélica en Southwest Ranches, al oeste de Fort Lauderdale, donde más de 6000 fieles asisten a los servicios dominicales, el reverendo Ruddy Gracia ha subido al púlpito para criticar las restricciones de la pandemia que cerraron iglesias en otros estados y para menospreciar las vacunas contra la COVID-19, exhortando a los congregantes a confiar en la inmunidad divina.En una entrevista, Gracia dijo que sus prédicas sobre política habían atraído a más miembros, muchos de los cuales, añadió, compartían sus dudas sobre el rumbo económico, político y espiritual de Estados Unidos.“Los principios de los liberales en Estados Unidos son malos según las normas bíblicas, no según mis normas —la Biblia—, y eso antes no era así”, dijo Gracia. “Somos ultraconservadores. Así que cada vez que subimos al púlpito o hablamos, en realidad estamos hablando de política”.Gracia, quien emigró de la República Dominicana cuando era joven y ahora tiene 57 años, se describe a sí mismo como “anticuado” en sus ideas sobre el liderazgo, y pasa tiempo leyendo sobre emperadores y generales famosos. Eso influyó en sus opiniones sobre DeSantis y Trump, dijo.“Siempre he sido un gran admirador de las agallas y de ser agresivo, y ambos tienen ese comportamiento de verdadero líder”, dijo, reflexionando en voz alta sobre si los dos rivales republicanos podrían presentarse en una candidatura conjunta. “Veo en estos dos hombres un empuje y una tensión que son extremadamente necesarios en el tipo de mundo en el que vivimos hoy”.Daniel Garza, director ejecutivo de Libre, un grupo conservador centrado en los hispanos, dijo que había asistido a iglesias evangélicas de todo el país y se había dado cuenta de que los pastores hablaban de manera más abierta de política desde el púlpito. “Siempre hemos tenido una familiaridad, pero lo que vemos ahora es una especie de intimidad que no se había visto en el pasado”, dijo.Los evangélicos siguen siendo una minoría entre el electorado latino, pero las encuestas muestran que son mucho más propensos a votar por republicanos que los católicos o aquellos que no tienen una afiliación religiosa, aunque no son un bloque monolítico de votantes.A menudo están más abiertos a relajar algunas normas migratorias que los líderes republicanos e incluso algunos de los que apoyaron a Trump se desanimaron por sus mensajes antiinmigrantes.Báez celebró un bullicioso servicio en la iglesia H2O de Miami. “Tiene que ver con la moral y hay un partido en este momento que refleja nuestra moral”, dijo en una entrevista.Saul Martinez para The New York TimesCuando Trump comenzó su acercamiento a los evangélicos en su campaña de reelección de 2020, lo hizo en el Ministerio Internacional el Rey Jesús, una enorme congregación hispana de Miami. El pastor de la iglesia, Guillermo Maldonado, aseguró a sus miembros, entre los que hay un gran número de inmigrantes indocumentados de Centroamérica y el Caribe, que no tenían que ser ciudadanos estadounidenses para asistir al mitin.Algunos líderes evangélicos hispanos sienten escalofríos ante la idea de que el grupo represente un bloque de voto unificado que favorezca automáticamente a los republicanos. Los evangélicos hispanos son más proclives a elegir a los demócratas que los evangélicos blancos, señalan. Aun así, incluso esos líderes se muestran entusiastas a la hora de describir al grupo como un voto indeciso por excelencia que no está totalmente comprometido con ninguno de los dos partidos.“Ser evangélico no es una denominación política”, dijo Gabriel Salguero, pastor en Orlando que dirige la Coalición Nacional Evangélica Latina y mantiene sus preferencias políticas en privado por una cuestión de principios. “Se trata de nuestra fe en Cristo y nuestro compromiso con el Evangelio. Así que no ponemos nuestra confianza en la política, pero deberíamos participar”.En todo el país, muchos líderes evangélicos hispanos han adoptado hablar más explícitamente de política en sus sermones.Báez, pastor de la red de iglesias, evitó durante años cualquier mención a la política cuando su púlpito estaba en Filadelfia. Consideraba que su papel en aquel momento estaba por encima de la política. Incluso, rara vez votaba.Pero desde que se mudó a Florida en 2019 y comenzó una nueva congregación que se reúne en un antiguo club nocturno en el centro de Miami, casi nunca duda en hablar sobre temas políticos.Báez bautizando a una integrante de la iglesia durante un servicio en H20 Miami. Después de evitar la política durante muchos años, dijo, ahora rara vez duda en hablar del tema.Saul Martinez para The New York TimesBáez ha contado a los feligreses su decisión de dejar de permitir que sus hijos pequeños vean películas de Disney. Dijo que la compañía había ido demasiado lejos en su apoyo a los derechos de las personas trans, y aplaudió la ley aprobada el año pasado por DeSantis y los republicanos del estado que restringe la instrucción en las aulas sobre orientación sexual e identidad de género.Báez también se ha opuesto abiertamente a las escuelas que educan a los niños sobre la identidad de género.“Ningún profesor debería hablar a los niños pequeños sobre la sexualidad; déjame a mí como padre hacer eso”, dijo, y agregó que se dio cuenta por primera vez de la cuestión durante los debates de la llamada ley de los baños hace años. “Nos hemos pasado a las opiniones extremas al respecto. Tenemos que respetar a los padres, no imponer un punto de vista”.Cada domingo, Báez celebra un bullicioso servicio en H2O Miami, como se conoce a la iglesia, con cientos de personas reunidas alrededor de mesas para cantar junto a una banda de rock cristiano, levantando las manos en señal de alabanza. Cuando terminan los servicios, de dos horas de duración, los feligreses se abrazan y se reúnen al borde del escenario para pedir a Báez y a su esposa que pongan sus manos sobre ellos en oración.Al igual que otros líderes evangélicos hispanos, Báez cuenta con un gran número de fieles simpatizantes tanto en Estados Unidos como en América Latina y casi un millón de seguidores en las redes sociales. Aparece con frecuencia en la televisión en español, por lo general centrándose en mensajes optimistas de esperanza en lugar de menciones explícitas a Jesús o a los valores conservadores.“Hay una razón por la que la mayoría de los latinos son liberales: es lo que ven en la televisión”, dijo mientras desayunaba en el jardín de su casa en Miramar, un suburbio a media hora al norte de Miami. “Queremos dar una visión alternativa a eso”.Jennifer Medina es una reportera de política estadounidense y cubre las actitudes políticas y el poder con énfasis en el oeste de Estados Unidos. Originaria del sur de California, ha pasado varios años cubriendo la región para la sección Nacional. @jennymedina More