up to 3,200 employees laid off this week

Goldman Sachs expected to cut 6.5% of employees

Goldman Sachs is laying off fewer employees than feared, but the cut is still a deep one.

The global investment bank is letting go of as many as 3,200 employees starting Wednesday, according to a person with knowledge of the firm’s plans.

That amounts to 6.5% of the 49,100 employees Goldman had in October, which is below the 8% reported last month as the upper end of possible cuts.

The final figure, reported earlier by Bloomberg, is a result of internal discussions between business heads and top management over the last month, said the person, who declined to be identified speaking about personnel decisions.

Goldman CEO David Solomon kicked off Wall Street’s layoff season in September and then opted to enact the industry’s deepest cuts so far. Bank employee levels swelled over the last two years in response to a boom in deals and trading activity, but the good times didn’t last: IPO issuance plunged 94% last year because of suddenly inhospitable markets, according to SIFMA data.

Now, with concerns that the economy will slow further this year, Goldman is pulling back on head count in case stock and bond issuance and mergers don’t rebound. Solomon is also scaling back his ambitions in consumer banking, resulting in part of the layoffs.

Other investment banks are adopting a “wait and see” attitude in the coming weeks. If revenues are tracking below estimates in February and March, the industry could cut more workers, said a person with knowledge of a leading Wall Street firm’s internal processes.

“If things haven’t gotten better in the first quarter, we’ll have more changes,” said compensation consultant Alan Johnson. “You can’t have these expensive people sitting around with nothing to do.”

Goldman’s move follows smaller cuts from Morgan Stanley, Citigroup and Barclays in recent months. Beleaguered Credit Suisse, which is in the midst of a restructuring, has said it would cut 2,700 employees in the last three months of 2022 and aims to remove a total of 9,000 positions by 2025.

Meanwhile, Goldman is still moving forward with plans to hire junior bankers and in other areas as needed, the source said.

Goldman's job cuts likely won't be the last as Wall Street prepares for winter

Tesla, Nvidia, Lululemon and more

Hong Kong, China, 13 Sept 2022, A red Tesla car passes in front of a Tesla dealership in Wanchai. (Photo by Marc Fernandes/NurPhoto via Getty Images)

Nurphoto | Nurphoto | Getty Images

Check out the companies making headlines in midday trading.

Tesla – Shares of Tesla rose 5.93% Monday after CEO Elon Musk’s attorneys on Saturday asked a California court to move a trial over the company stock to Texas, citing local negativity.

Advanced Micro Devices – The chip giant jumped 5.13% as semiconductor stocks led the Monday’s rally. The advanced pushed the stock above its 50-day moving average. Wells Fargo named AMD a top pick in the semi sector Monday.

Nvidia – The chip stock rallied 5.18% in midday trading. Earlier in the day, Nvidia was named a top pick for 2023 by Wells Fargo analysts, who said they see a positive data center product cycle materializing through the end of the year.

Regeneron – Regeneron slipped 7.69% after the pharmaceutical company said that sales of its Eylea drug were negatively impacted in the final quarter of 2022 by a shift to an off-label competitor.

Lululemon – The athleisure stock fell 9.29% after Lululemon’s changed its guidance to show that it expects shrinking gross margins for the fourth quarter. The company did say it expects net revenue to be higher than its previous guidance range.

Zillow — Shares of the real estate marketplace company gained 8% after Bank of America double upgraded the stock to buy and said they could rise 20% from Friday’s close, citing its improved growth outlook despite a challenging macroeconomic environment.

Uber – Uber shares gained 3.79% on an upgrade from Piper Sandler to overweight from a neutral rating. The firm said that rising inflation and car prices should boost desire for ride sharing.

Hologic – Shares gained 2.5% after the women’s diagnostics provider reported fiscal first-quarter revenue of $1.07 billion, topping its most recent guidance of $940 million to $990 million. That revenue also topped Wall Street expectations.

Duck Creek – Duck Creek surged 46.5% after it said that Vista Equity Partners will take the insurance intelligence solutions provider private for $19 a share.

Energy stocks – Rising energy and natural gas prices boosted shares of EQT Corp by 3.9%, as well as Marathon Oil and Halliburton, which gained 1.6% and 0.6%, respectively.

Ceridian HCM — Ceridian HCM shares rose 3.15%. MoffettNathanson initiated coverage of the human resources software provider with a market perform rating, saying shares have 12% upside to the firm’s $68 price target.

Monolithic Power Systems – Shares of Monolithic Power Systems gained 4.36% amid the semiconductor rally, following shares of Nvidia and Advanced Micro Devices.

Baxter International – Health care company Baxter International slipped 7.74%, hitting a 52-week low, after it announced it will restructure and spin off its kidney care business.

Oracle – Oracle advanced 1.27% after Piper Sandler upgraded the stock to overweight from neutral, noting a years-long period of low growth could be ending.

Goldman Sachs – Shares gained 1.41% following reports that the banking giant is laying off 3,200 employees, or 6.5% of the workforce it had in October. That is fewer than the 8% reported last month.

Teladoc – Shares of Teladoc jumped 4.13% after the company announced that its revenue in the fourth quarter of 2022 exceeded analyst expectations – it’s slated to report in a narrower range of $633 million to $640 million above consensus of $631 million.

— CNBC’s Samantha Subin, Alex Harring, Sarah Min, Jesse Pound, Yun Li, Michelle Fox and Tanaya Macheel contributed reporting

The Earth’s ozone layer is slowly recovering, UN report finds

In this NASA false-color image, the blue and purple shows the hole in Earth’s protective ozone layer over Antarctica on Oct. 5, 2022. Earth’s protective ozone layer is slowly but noticeably healing at a pace that would fully mend the hole over Antarctica in about 43 years, a new United Nations report says.


The Earth’s protective ozone layer is on track to recover within four decades, closing an ozone hole that was first noticed in the 1980s, a United Nations-backed panel of experts announced on Monday.

The findings of the scientific assessment, which is published every four years, follow the landmark Montreal Protocol in 1987, which banned the production and consumption of chemicals that eat away at the planet’s ozone layer.

The ozone layer in the upper atmosphere protects the Earth from the sun’s ultraviolet radiation, which is linked to skin cancer, eye cataracts, compromised immune systems and agricultural land damage.

Scientists said the recovery is gradual and will take many years. If current policies remain in place, the ozone layer is expected to recover to 1980 levels — before the appearance of the ozone hole — by 2040, the report said, and will return to normal in the Arctic by 2045. Additionally, Antarctica could experience normal levels by 2066.

Scientists and environmental groups have long lauded the global ban of ozone-depleting chemicals as one of the most critical environmental achievements to date, and it could set a precedent for broader regulation of climate-warming emissions.

“Ozone action sets a precedent for climate action,” World Meteorological Organization Secretary-General Prof. Petteri Taalas said in a statement. “Our success in phasing out ozone-eating chemicals shows us what can and must be done — as a matter of urgency — to transition away from fossil fuels, reduce greenhouse gases and so limit temperature increase.”

Scientists said that global emissions of the banned chemical chlorofluorocarbon-11, or CFC-11, which was used as a refrigerant and in insulating foams, have declined since 2018 after increasing unexpectedly for several years. A large portion of the unexpected CFC-11 emissions originated from eastern China, the report said.

The report also found that the ozone-depleting chemical chlorine declined 11.5% in the stratosphere since it peaked in 1993, while bromine declined 14.5% in the stratosphere since it peaked in 1999.

Scientists also warned that efforts to artificially cool the Earth by injecting aerosols into the upper atmosphere to reflect sunlight could thin the ozone layer, and cautioned that further research into emerging technologies like geoengineering is necessary.

Researchers with the World Meteorological Organization, the United Nations Environment Program, the National Oceanic and Atmospheric Administration, the National Aeronautics and Space Administration and the European Commission contributed to the assessment.

Why air pollution costs the U.S. $600 billion every year

House GOP to investigate Big Tech’s communications with Biden admin

U.S. House Minority Leader Kevin McCarthy (R-CA) (R) talks to Rep. Jim Jordan (R-OH) as Representatives cast their votes for Speaker of the House on the first day of the 118th Congress in the House Chamber of the U.S. Capitol Building on January 03, 2023 in Washington, DC.

Win Mcnamee | Getty Images

House Republicans are planning to launch a new subcommittee this week that will investigate communications between Big Tech companies and the Biden administration, a source familiar with the matter confirmed to CNBC.

The anticipated launch of the Select Subcommittee on the Weaponization of the Federal Government, reported earlier on Monday by Axios, represents one of the many nods newly elected Speaker Kevin McCarthy, R-Calif., gave to the conservative faction of the GOP caucus in his long fight to win the gavel. The Wall Street Journal’s opinion section previously reported plans for the panel.

House Judiciary Chair Jim Jordan, R-Ohio, who supported McCarthy in his bid for the speakership, is expected to lead the new subcommittee. The panel will investigate communications between the tech companies and the executive branch and search for signs of pressure leading to conservative censorship online.

Jordan hinted at these plans last month in a series of letters to the CEOs of Apple, Amazon, Alphabet, Meta and Microsoft demanding information on what he called “the nature and extent of your companies’ collusion with the Biden Administration.” Jordan told the companies they should preserve any existing or future records related to his request for communications with the executive branch about “moderation, deletion, suppression, restricting or reduced circulation of content.”

Facebook parent Meta and Microsoft previously declined to comment on Jordan’s letters. The three other companies did not respond to previous requests for comment.

The decision to create the panel comes after Twitter owner Elon Musk’s release of the “Twitter Files” — reporting from a select group of journalists he allowed access to internal files after he took over the company — renewed fervor around the platform’s past content moderation decisions under its previous ownership.

The most scrutinized of those choices was Twitter’s decision to block links to a New York Post article ahead of the 2020 election claiming to find “smoking gun” emails related to then-Democratic presidential nominee Joe Biden and his son Hunter. At the time, Twitter said it believed the story violated its hacked materials policy. Twitter later reversed the decision and its then-CEO said the actions the platform took were “wrong,” changing its policies to prevent a recurrence.

The new subcommittee is also expected to look into other areas of potential influence and politicization in the government, including in the intelligence community and public health agencies.

The White House did not immediately respond to a request for comment. But in response to a Politico article last month describing negotiations to create the subcommittee, White House spokesperson Ian Sams wrote on Twitter, “House Republicans continue to make clear that they’re focused on pointless political stunts to get themselves booked on Tucker Carlson, instead of working with @POTUS or congressional Dems to take on the issues Americans care about like tackling inflation and lowering costs.”

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What’s ahead in wake of bankruptcy warning

A pedestrian walks by a Bed Bath and Beyond store in San Francisco, California.

Justin Sullivan | Getty Images

When Bed Bath & Beyond leaders speak to investors Tuesday morning, they won’t simply report sales and earnings results. They will have to address a stark reality: The cash-strapped home goods retailer is running out of time.

On Thursday, Bed Bath warned it may have to file for bankruptcy, saying it could soon be unable to cover costs as sales lag and store traffic dwindles. It also said it’s struggling to keep items in stock, as it runs low on cash and works to remedy strained relationships with suppliers.

The nationwide chain, known for its 20% coupons and sky-high piles of towels and housewares, is increasingly at risk of joining the list of retailers that have shuttered stores and faded away. Think, Sears. Circuit City. RadioShack. Pier 1. Linens ‘n Things.

What’s more, the attempted turnaround comes at the same time that inflation weighs on consumers’ wallets and as the housing market gets hit by higher interest rates. Plus, after spending the earlier years of the Covid pandemic at home, more people are choosing to spend money on dining out or booking trips rather than buying cookware, a duvet or throw pillows.

“When you have a shift in how consumers are allocating their spending, and a recession looming potentially on the horizon, it makes it much more of an uphill battle,” said Justin Kleber, senior research analyst at Baird Equity Research.

The company’s stock performance reflects its tough path forward, too. Shares of the company touched a 52-week low on Friday. As of early Monday, they were trading around $1.74 for a market value of less than $151 million.

Chasing a comeback

Bed Bath laid out its latest turnaround strategy in August. The plan called for drastic cost cuts in the way of closing about 150 of its namesake stores and reducing its head count by about 20% across its corporate and supply chain workforce.

Those efforts have brought its operating costs down, as it tries to drive up sales: For the third quarter, Bed Bath expects operating expenses to be about $583.6 million, compared with about $698 million in the year-ago period, it said Thursday.

The company’s turnaround strategy also involved phasing out some of its private labels and bringing back more well-recognized national brands. It pledged in August to work with those national brands to develop exclusive items and to add items from direct-to-consumer brands — merchandise aimed at setting it apart and giving shoppers a reason to come back to its stores.

Come Tuesday, investors will want to hear if the company has improved its inventory levels, if they managed to secure any exclusive items for the holiday season and how willing vendors have been to work with the retailer. If Bed Bath has made significant inroads in improving inventory, it could offer a glimmer of hope for the quarters ahead.

“Being the first to bring new brands and products to our customer has always been one of our roles as a retailer,” Executive Vice President Mara Sirhal told investors during an Aug. 31 business update. “In the home market, there’re many D2C brands which bring their own compelling brand marketing and followers who know and want them but aren’t widely available to shop.”

Emerging direct-to-consumer brands have an incentive to partner with brick-and-mortar shops like Bed Bath and Target, as they offer a way to reach more customers and a reprieve from the e-commerce cooldown, steep marketing costs and consumer habit shifts that have cut into profitability since the pandemic began to wane. 

But brands and vendors have been hesitant to extend credit to Bed Bath as its mounting debt cast doubt over its ability to pay back bills. 

And sales trends overall have remained weak.

The company said Thursday it expects net sales for the third quarter, which ended Nov. 26, to be about $1.26 billion — a nearly 33% drop from $1.88 billion it reported for the year-ago period. Bed Bath anticipates a net loss of about $385.8 million for the quarter, an approximately 40% jump in losses year over year. Those quarterly losses include an approximately $100 million impairment charge, which was not specified.

CEO Sue Gove urged patience on Thursday, saying the turnaround will take time. She took the helm after former CEO Mark Tritton was pushed out in June.

“Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” she said in a news release.

Baird’s Kleber said investors will want to hear if there’s been a change in sales trends during the Christmas season — key weeks that would be reflected in fourth-quarter results, but could be previewed sooner.

‘Kiss of death’?

Before Bed Bath can address moving product off shelves, though, it needs to tackle an even more fundamental problem: having enough merchandise to fill them.

Gove said low inventory was partially to blame for the company’s anticipated third-quarter losses.

The company is using dollars it earned during the holiday season to bulk up the shelves with help from its key vendors, Gove said. As in-stock levels have improved, so have sales trends, she said.

But it’s not clear if that will be enough.

“At the end of the day, all of the yabba dabba doo about their newly minted strategy that they were touting over the last six months. It’s all just a lot of talk,” said Mark Cohen, a professor and director of retail studies at Columbia Business School.

Cohen said he sees the going-concern warning as the “kiss of death” for Bed Bath, solidifying bankruptcy as the retailer’s only remaining option — beyond a savior swooping in with an infusion of cash or to buy a stake of the company.

“Without a defining event of that sort, this company is toast,” said Cohen, the former CEO of Sears Canada. 

Jim Cramer’s Investing Club meeting Monday: Consumer prices, tech

Watchdog group accuses George Santos of campaign finance violations in FEC complaint

Newly elected Republican Representative from New York George Santos attends the US House of Representatives voting for new speaker at the US Capitol in Washington, DC, January 4, 2023.

Olivier Douliery | AFP | Getty Images

A national watchdog group has filed a complaint with the Federal Election Commission against Republican U.S. Rep. George Santos for allegedly violating numerous campaign finance laws during his successful run for Congress.

The Campaign Legal Center, a nonpartisan campaign watchdog organization, filed the complaint with the FEC on Monday. The group accuses the Santos campaign of allegedly violating three counts of campaign finance laws, including one tied to a $705,000 loan the lawmaker made to his campaign.

“It is far more likely, instead, that after failing to win his 2020 bid for Congress, Santos and other unknown persons worked out a scheme to surreptitiously — and illegally — funnel money into his 2022 campaign,” the complaint reads. “The concealed true source behind $705,000 in contributions to Santos’s campaign could be a corporation or foreign national — both of which are categorically barred from contributing to federal candidates.”

The FEC didn’t immediately return a request for comment. A Santos spokeswoman referred CNBC to the congressman’s attorneys. A Santos attorney did not return a request for comment.

Santos is under scrutiny by congressional lawmakers and federal authorities for lying and embellishing key elements of his resume during his 2022 campaign for Congress. Prosecutors from the Eastern District of New York are examining Santos’ finances, including potential irregularities involving financial disclosures and loans Santos made to his campaign while he was running for Congress, according to NBC News.

Santos has admitted in an interview with City & State New York that he embellished his resume. While he’s apologized to anyone “disappointed by resume embellishments,” he vehemently denies committing any crimes.

The Campaign Legal Center claims that the loan he made to his campaign may have come from a straw donor. Santos’ latest financial disclosure says he made $750,000 from 2021 through 2022 from his company, the Devolder Organization. Santos told WABC radio host John Catsimatidis, who also donated to Santos, that the loan came from “money I paid myself through the Devolder Organization.”

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The watchdog accuses Santos of possibly concealing the true source of the money that his campaign labeled as a loan.

The group also accuses Santos’ campaign of falsifying its reported disbursements and using campaign funds to pay for personal expenses.

“George Santos has lied to voters about a lot of things, but while lying about your background might not be illegal, deceiving voters about your campaign’s funding and spending is a serious violation of federal law,” Adav Noti, legal director at the Campaign Legal Center, said in a statement. “That is what we are asking the Federal Election Commission to investigate. As the agency responsible for enforcing America’s campaign finance laws, the FEC owes it to the public to find out the truth about how George Santos raised and spent the money he used to run for public office, and to ensure accountability for Santos’s illegal conduct.” 

Swiss National Bank posts record $143 billion loss

The Swiss national flag hangs from the Federal Palace, Switzerland’s parliament building, in Bern, Switzerland, on Thursday, Dec. 13, 2018. The Swiss National Bank cut its inflation forecast and showed no inclination of moving off its crisis-era settings, citing the francs strength and mounting global risks. Photographer: Stefan Wermuth/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

The Swiss National Bank on Monday reported a loss of 132 billion Swiss francs ($143 billion) for the 2022 financial year, citing preliminary figures.

It represents the biggest loss in the central bank’s 116-year history and equates to roughly 18% of Switzerland’s projected gross domestic product of 744.5 billion Swiss francs. Its previous record loss was 23 billion francs in 2015.

As a result it will not make its usual payouts to the Swiss government and member states, it said, with payments to its shareholders also set to be affected. In 2021, the bank reported a 26 billion franc profit.

Of the losses, 131 billion francs came from its foreign currency positions and 1 billion from its Swiss franc positions amid strong gains made by the franc as investors flocked to the perceived safe haven amid European volatility.

Since June 2022, the Swiss franc has been trading above one euro, a level it had previously only briefly touched in 2015 after scrapping its 1.20 peg to the EU’s single currency. Switzerland has historically attempted to rein in the strength of the franc because of its export-heavy economy, though analysts have argued Swiss businesses have been able to remain competitive despite the rising franc due to euro zone inflation.

SNB raises interest rates by 50 basis points

In December, the Swiss National Bank raised interest rates for the third time in 2022, to 1%. That was to counter inflation of 3% — well below the euro zone’s inflation rate, which remains above 10%.

The SNB was also impacted last year by losses in its stock and bond portfolio amid the wider market downturn. However, it gained 400 million francs through its gold holdings.

Karsten Junius, chief economist at Swiss bank J.Safra Sarasin, told CNBC that the central bank’s losses would not alter its monetary policy and he expected another 100 basis points of hikes, to 2%, this year.

“While the SNB will also need some time to rebuild its valuation reserves it will take less time to show profits than in the case of the European Central Bank,” he said, also noting that inflation in Switzerland was closer to its 2% target than in the euro zone.

“While both central banks are structurally profitable as they can renumerate their liabilities at a lower rate than the market, the SNB will earn higher market interest this year already while the ECB is stuck with its low yielding bonds in its book and will be unprofitable for many years.”

Duck Creek Tech surges more than 30% after agreeing to Vista take over

A person walks through the Wall Street subway station near the New York Stock Exchange (NYSE) in New York on May 27, 2022.

Angela Weiss | AFP | Getty Images

Insurance tech company Duck Creek Technologies has reached a takeover deal with Vista Equity Partners, CNBC’s David Faber reports.

Terms of the deal call for Vista to pay $19 per share in cash, or about $2.6 billion, according to Faber. Shares of Duck Creek surged more than 38% to about $18 per share on the news before trading was halted.

The deal is at a 68% premium to Friday’s close of $11.28.

Duck Creek, a provider of intelligence solutions for the insurance industry, saw its stock price fall about 60% in 2022.

Duck Creek will be part of a wider portfolio of technology companies at Vista.

Over 400 arrested after Bolsonaro supporters storm Brazil’s Congress

Supporters of Brazilian former President Jair Bolsonaro invade Planalto Presidential Palace while clashing with security forces in Brasilia on January 8, 2023.

Sergio Lima | Afp | Getty Images

World leaders condemned what they described as a “cowardly and vile” attack after thousands of supporters of former Brazilian President Jair Bolsonaro invaded the country’s Congress, the Supreme Court and the presidential palace.

On an extraordinary day of political violence, rioters on Sunday ransacked Brazil’s three branches of power as part of a failed attempt to overthrow President Luiz Inácio Lula da Silva’s week-old government.

Observers of the attack swiftly drew comparisons between the chaos in Brasilia and the Jan. 6 invasion of the U.S. Capitol by supporters of former President Donald Trump two years ago.

Brazil’s security forces have regained control of the country’s political institutions and Brasilia governor Ibaneis Rocha said more than 400 people had been arrested as of Sunday evening. Rocha — an ally of Bolsonaro — was later suspended from his post for security failings.

Lula sealed a remarkable return to Brazil’s presidency late last year, securing 50.9% of the runoff vote to defeat far-right incumbent Bolsonaro.

Many of Bolsonaro’s supporters refused to accept the result, however, and political analysts have long feared a U.S.-style attack on the country’s prominent government buildings.

Lula blamed Bolsonaro for “encouraging” the riots, saying there were several speeches by the former president to incite Sunday’s attack.

Bolsnaro rejected the accusation and said what happened on Sunday went beyond peaceful democratic protest.

Political analysts said Lula’s victory marked the most symbolic shift in a political movement that has seen the region’s right-wing governments replaced by leftist leaders.

View Press | Corbis News | Getty Images

World leaders, including some of Brazil’s regional neighbors, condemned Sunday’s attack on Brazil’s Congress, the Supreme Court and the presidential palace and reaffirmed their support for Lula’s administration.

“I condemn the assault on democracy and on the peaceful transfer of power in Brazil,” U.S. President Joe Biden said via Twitter. “Brazil’s democratic institutions have our full support and the will of the Brazilian people must not be undermined. I look forward to continuing to work with @LulaOficial.”

Chilean President Gabriel Boric described the attack on Brazil’s institutions as a “cowardly and vile attack on democracy.”

Lula’s response to attack on Brazil's Congress will be crucial, political analyst says

Meanwhile, Colombian President Gustavo Petro offered solidarity to Lula and the people of Brazil, saying “fascism decides to strike.”

Petro called for an urgent meeting of the Organization of American States, “if it wants to continue to live as an institution and apply the democratic charter.”

Canadian President Justin Trudeau said, “Canada strongly condemns the violent behaviour on display there today, and we reaffirm our support for President @LulaOficial and Brazil’s democratic institutions.”

A ‘stark difference’ to U.S. Capitol attack

Jimena Blanco, head of Americas at Verisk Maplecroft, said there were many similarities between the attack on strategic sites in Brazil’s capital and the Jan. 6 invasion of the U.S. Capitol in 2021 — “and the movements of former President Donald Trump and former President Bolsonaro.”

“But there is a stark difference here,” Blanco told CNBC’s “Street Signs Europe” on Monday. “And that is the events in the United States happened before the new government took office whereas, in Brazil, we have a new government that was sworn in over a week ago and so it is institutionally a very different situation.”

“Now, we do have a very fractured country,” she continued. “The question now is whether President Lula da Silva is able to deliver on his promise upon taking office that he would be able to unify Brazil.”

Blanco said Lula’s response in the coming days “will be crucial in that respect.”

Lula was jailed in 2017 in a sweeping graft investigation following a two-term 2003-2010 presidency. The 77-year-old former metalworker was released in 2019 and his criminal convictions were later annulled, paving the way for him to seek a return to office.

Brazilian President Jair Bolsonaro challenged the election he lost in October to leftist rival Luiz Inacio Lula da Silva, and is arguing that votes from some machines should be “invalidated” in a complaint that election authorities met with initial skepticism.

Evaristo Sa | AFP | Getty Images

In the U.S., some Democratic lawmakers called for Bolsonaro’s extradition back to Brazil. Bolsonaro flew out of Brazil shortly before Lula’s inauguration and has been residing in Florida.

Texas Democratic Rep. Joaquin Castro said, “Bolsonaro must not be given refuge in Florida, where he’s been hiding from accountability for his crimes.”

Castro said he stood in support of Lula’s democratically elected government, adding that “domestic terrorists and fascists cannot be allowed to use Trump’s playbook to undermine democracy.”

“Nearly 2 years to the day the US Capitol was attacked by fascists, we see fascist movements abroad attempt to do the same in Brazil,” Alexandria Ocasio-Cortez, D-N.Y., said via Twitter.

“We must stand in solidarity with @LulaOficial’s democratically elected government. The US must cease granting refuge to Bolsonaro in Florida.”