Wall Street bonuses jump 32% as total surges to record, NY comptroller says
Deals have slowed this quarter as companies navigate changing policies from President Donald Trump's administration, including tariffs and personnel changes atop regulatory agencies.
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"This financial market strength is good news for New York's economy and our fiscal position, which relies on the tax revenue it generates," DiNapoli said in a statement. "However, increasing uncertainty in the economy amid significant federal policy changes may dampen the outlook."
The changes come after a bumper year in which the bonus pool for employees in New York City's securities industry surged to a record $47.5 billion for 2024, the highest in records dating back to 1987, the estimates showed.
As the world's top financial center, one in every 11 jobs in the city is either directly or indirectly associated with the securities industry, the comptroller estimated.
Wall Street's biggest banks reported rising investment banking fees last year, fueled by more deals and corporate debt issuance. After profits rose 90% in 2024, the latest bonus data reflected the first major increase since banks reaped a windfall in the wake of the COVID-19 pandemic.
Employment in the securities industry in 2024 reached its highest level in at least three decades, to 201,500 employees, up from 198,400 a year earlier.
The 2024 bonuses will generate $600 million more in state income tax revenue and $275 million more for the city compared with 2023, according to estimates from DiNapoli.
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How SpaceX's rocket diplomacy backfired in the Bahamas
NASSAU, Bahamas, July 29 (Reuters) - When SpaceX was negotiating a deal with the Bahamas last year to allow its Falcon 9 rocket boosters to land within the island nation's territory, Elon Musk's company offered a sweetener: complimentary Starlink internet terminals for the country's defense vessels, according to three people familiar with the matter. The rocket landing deal, unlocking a more efficient path to space for SpaceX's reusable Falcon 9, was then signed in February last year by Deputy Prime Minister Chester Cooper, who bypassed consultation with several other key government ministers, one of the sources and another person familiar with the talks said. Reuters could not determine the dollar value of the Starlink arrangement or the number of vessels outfitted with Starlink terminals. The Bahamian military, mostly a sea-faring force with a fleet of roughly a dozen vessels, did not respond to a request for comment. Reuters found no evidence that Cooper broke any laws or regulations in striking the deal with SpaceX, but the people said the quick approval created tension within the Bahamian government. By this April, two months after the first and only Falcon 9 booster landed off the nation's Exuma coast, the Bahamas announced it had put the landing agreement on hold. The government said publicly it wanted a post-launch investigation after the explosion in March of a different SpaceX rocket, Starship, whose mid-flight failure sent hundreds of pieces of debris washing ashore on Bahamian islands. But the suspension was the result of the blindsided officials' frustration as well, two of the people said. "While no toxic materials were detected and no significant environmental impact was reported, the incident prompted a reevaluation of our engagement with SpaceX," Cooper, also the country's tourism chief, told Reuters through a spokesperson. SpaceX did not respond to questions for comment. Cooper and the prime minister's office did not respond to questions about how the rocket landing deal was arranged. SpaceX's setbacks in the Bahamas – detailed in this story for the first time – offer a rare glimpse into its fragile diplomacy with foreign governments. As the company races to expand its dominant space business, it must navigate the geopolitical complexities of a high-stakes, global operation involving advanced satellites and orbital-class rockets – some prone to explosive failure – flying over or near sovereign territories. These political risks were laid bare last month when Mexican President Claudia Sheinbaum said her government was considering taking legal action against SpaceX over 'contamination' related to Starship launches from Starbase, the company's rocket site in Texas, 2 miles north of the Mexican border. Her comments came after a Starship rocket exploded into a giant fireball earlier this month on a test stand at Starbase. Responding to Sheinbaum on X, SpaceX said its teams have been hindered from recovering Starship debris that landed in Mexican territory. SpaceX is pursuing aggressive global expansion as Musk, its CEO, has become a polarizing figure on the world stage, especially following high-profile clashes with several governments during his time advising President Donald Trump. More recently he has fallen out with Trump himself. Starlink, SpaceX's fast-growing satellite internet venture, is a central source of revenue funding Musk's vision to send human missions to Mars aboard Starship. But to scale globally, SpaceX must continue to win the trust of foreign governments with which it wishes to operate the service, as rivals from China and companies like Jeff Bezos' Amazon ramp up competing satellite networks. The company's talks with Bahamian officials show how Starlink is also seen as a key negotiating tool for SpaceX that can help advance other parts of its business. According to SpaceX's orbital calculations, the Falcon 9 rocket can carry heavier payloads and more satellites to space if its booster is allowed to land in Bahamian territory. Meanwhile, Starship's trajectory from Texas to orbit requires it to pass over Caribbean airspaces, exposing the region to potential debris if the rocket fails, as it has in all three of its test flights this year. SpaceX's deal with the Bahamas, the government said, also included a $1 million donation to the University of Bahamas, where the company pledged to conduct quarterly seminars on space and engineering topics. The company must pay a $100,000 fee per landing, pursuant to the country's space regulations it enacted in preparation for the SpaceX activities. While SpaceX made steep investments for an agreement prone to political entanglement, the Falcon 9 booster landings could resume later this summer, two Bahamian officials said. 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Starship exploded about nine and a half minutes into flight on March 6 after launching from Texas, in what the company said was likely the result of an automatic self-destruct command triggered by an issue in its engine section. It was the second consecutive test failure after a similar mid-flight explosion in January rained debris on the Turks and Caicos Islands, a nearby British overseas territory. Matthew Bastian, a retired engineer from Canada, was anchored in his sailboat on vacation near Ragged Island, a remote island chain in southern Bahamas, just after sunset when he witnessed Starship's explosion. What he initially thought was a rising moon quickly became an expanding fireball that turned into a "large array of streaking comets." "My initial reaction was 'wow that is so cool,' then reality hit me – I could have a huge chunk of rocket debris crash down on me and sink my boat!" he said. "Fortunately that didn't happen, but one day it could happen to someone." 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Reuters
an hour ago
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BAB BERRED, Morocco, July 29 (Reuters) - Beneath the blazing summer sun, Abderrahman Talbi surveyed the neat rows of flourishing cannabis blooms in compact fields, reflecting on how his life has changed since he joined Morocco's burgeoning legal cannabis industry two years ago. Like many farmers in the northern Rif mountains who have long grown the crop illegally, Talbi is relieved that raids and seizures by the authorities are no longer a worry. "I can now say I am a cannabis farmer without fear," Talbi told Reuters. "Peace of mind has no price." Talbi's pivot to legal farming is an example of what Morocco, one of the world's biggest cannabis producers, hoped to achieve when it legalised cultivation for medical and industrial use, but not for recreational purposes, in 2022. Regulating cannabis farming brought with it hopes for fresh revenue and economic revitalisation in the impoverished Rif region. The step made Morocco a forerunner among major producing countries and the first in the Middle East and North Africa to join a global trend that has seen countries like Canada, Germany and Uruguay legalise production and use. It also hoped to lure farmers away from the illegal economy in the restive Rif mountains, where cannabis production has long been tolerated to facilitate social peace. Al Hoceima, a major city in Rif, saw the largest protests in Morocco in 2016-17 over economic and social conditions. Legalisation efforts have gained traction, with about 5,000 farmers joining the industry this year, from just 430 in 2023, says Morocco's cannabis regulator, or ANRAC. And legal production surged to nearly 4,200 tonnes last year, a 14-fold increase over the first harvest in 2023. Still, the black market remains dominant and lucrative due to demand for recreational use from Europe and regionally in Africa, potentially undermining efforts to fully regulate the sector. Morocco has 5,800 hectares (14,300 acres) of legally planted land, according to ANRAC. That's dwarfed by illegal cultivation spanning over 27,100 hectares, Interior Ministry data shows. While many farmers still choose illicit cultivation, they face the risk of increased crackdowns by authorities, which led to the seizure of 249 tonnes of cannabis resin by September last year, up 48% from all of 2023, according to the Interior Ministry. Mohammed Azzouzi, 52, spent three years in hiding for cannabis-related charges before receiving a royal pardon along with over 4,800 others last year. Now, he is preparing for his first legal harvest and hopes to earn more than the 10,000 dirhams ($1,100) he used to make in the illegal economy each year. The country's prohibition on growing cannabis for leisure use, along with bureaucratic red tape, limit legal farming, with every stage of the supply chain requiring a specific license from ANRAC, discouraging many a farmer from making the switch. A grower who wants to cultivate legally needs to join a licensed cooperative, which buys the farmer's product and processes it into derivatives or sells the resin to other licensed manufacturers. Talbi's cooperative, Biocannat, near the town of Bab Berred, 300 km (186 miles) north of Rabat, bought about 200 tonnes of cannabis last year from some 200 farmers, processing it into resin, supplements, capsules, oils and powders for medical and cosmetic purposes. About 60 km east of Biocannat, in the main producing area of Issaguen, farmer Mohamed El Mourabit was initially hopeful about the legalisation plan in 2021, but is less so now. "The process is too complicated," he said. And money talks, as well, for many farmers, who are lured by the higher rewards of the black market, despite its risks. While cooperatives take months to pay farmers about 50 dirhams per kilogram for the raw plant, on the illicit market, processed cannabis resin can fetch up to 2,500 dirhams per kilogram, farmers and activists say. To close that gap, legalisation advocates say growing for recreational use should be allowed, too. But it's not clear whether that will happen soon. Mohamed Guerrouj, head of ANRAC, said legalising recreational use would only be considered within a medical framework. "The goal is to develop Morocco's pharmaceutical industry ... not coffee shops," he said.
