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    New York’s stockmarkets are thrashing Hong Kong and London

    In 2006 Charles Schumer and Michael Bloomberg took to the pages of the Wall Street Journal to express their concerns about New York. The senator and mayor both feared that the Big Apple was losing its financial edge. It had, after all, captured only one of the previous year’s 24 largest initial public offerings (ipos).New York’s bigwigs have little to worry about these days. In the battle between global financial centres, the city is increasingly a power with no equal. That is especially true when it comes to stockmarkets, where America’s financial hub is extending its already comfortable lead. On March 3rd Arm, a British semiconductor firm owned by SoftBank, a Japanese investment outfit, announced it would list only in New York, rebuffing a campaign by British ministers to encourage a London listing. A day earlier, crh, a London-listed building-materials firm, said it would move its main listing to New York. Other European countries have also lost out. The same week Linde, a chemical firm that was until recently the largest constituent of Germany’s dax index, quit Frankfurt while keeping its American listing. After a pause of almost two years, Chinese firms are also looking westwards. New rules published last month by the country’s securities regulator mean that overseas listings will be vetted more closely, but they also offer an avenue for more firms to list abroad. Last month Hesai Group, a Chinese electronics company, raised $190m on the Nasdaq, the largest Chinese listing in America since 2021. Shein, a fashion firm, is also reportedly looking to float its shares in New York. American regulators may be toughening up on Chinese firms, by employing sanctions and export controls, but the Big Apple seems to have retained its allure. The trend reflects the failures of Hong Kong and London, the only stockmarkets that can really compete with New York. In the past four quarters, during which business was slow, American exchanges won $24bn in overseas ipos, eight times as much as managed together by London and Hong Kong (excluding Chinese stocks), according to Dealogic, a data provider. In 2019, by contrast, New York only took in three times as much business.Hong Kong’s stockmarket once posed some attraction to foreign companies, including Rusal, a Russian aluminium firm; Prada, an Italian fashion house; and Samsonite, an American luggage company. But the city’s current listings pipeline contains few firms from beyond China. Meanwhile, London has its own drawbacks. One common gripe is the lack of a natural base of investors. Britain’s pension funds and insurers invest a notably small proportion of their assets in domestic stocks.Stock exchanges in Shanghai and Shenzhen are enormous, boasting combined total market capitalisations of more than $12trn. But the Chinese Communist Party is an ever-present threat, and Chinese stockmarkets still behave somewhat irrationally. Indeed, shares in firms listed on mainland and Hong Kong bourses are almost 40% more expensive in the mainland. Tokyo’s stockmarket is also big, with a total market capitalisation of nearly $5.4trn, but these days manages to attract little international business.Other places simply cannot match the big three’s heft. Amsterdam and Dubai have grown, but remain regional, murky or both. Singapore, which passed Hong Kong in last year’s Global Financial Centres Index, compiled by Z/Yen, a consultancy, is a growing wealth-management hub, but remains a minnow when it comes to stocks.As Messrs Schumer and Bloomberg can attest, financial competition sometimes changes in unpredictable ways. Right now, though, New York appears to be the listing venue of choice for companies in America, Europe, and—when officials on both sides allow—China, too. It is fast pulling away from the rest of the field. ■ More

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    Stocks making the biggest premarket moves: Meta, Rivian, WW International, KeyCorp and more

    Visitors take photos in front of the Meta (Facebook) sign at its headquarters in Menlo Park, California, on December 29, 2022.
    Tayfun Coskun | Anadolu Agency | Getty Images

    Check out the companies making the biggest moves in premarket trading:
    Meta — Meta shares gained 2% after a Bloomberg report announced that the company is planning another round of layoffs as soon as this week. The company previously cut 13% of its workforce in November as part of CEO Mark Zuckerberg’s efforts to make the company more profitable.

    Rivian — The electric-vehicle maker dropped nearly 7% after announcing Monday it plans to sell $1.3 billion worth of bonds. The capital will help facilitate the launch of Rivian’s R2 vehicles, a spokesperson told Reuters.
    WW International — Shares of company formerly known as Weight Watchers jumped as much as 17.6% in premarket trading after announcing a deal to acquire telehealth firm Sequence. The move could help WW push into the anti-obesity drug market. WW also released fourth-quarter results, showing shrinking revenue year over year and a net loss of $32.5 million. The stock is still trading below $5 a share, however, with a small market cap.
    Joby Aviation — The electric-aircraft maker fell more than 4% after being downgraded to sell from hold by Deutsche Bank. The Wall Street firm said the aircraft’s weight has raised questions and led him to wonder if the design is “overly aggressive.”
    Dick’s Sporting Goods — The sporting-good retailer rallied more than 6% after its fourth-quarter results topped Wall Street’s expectations. Same-store sales increased 5.3%, more than double analysts’ estimates of 2.1%, according to StreetAccount.
    KeyCorp — The bank shed 2.3% after issuing full-year net interest income guidance that was lower than prior guidance, according to an 8-K filing on Monday.

    Juniper Networks — The network hardware company added more than 1% after Goldman Sachs initiatived coverage of the stock with a buy rating. Its price target of $39 implies 24.5% upside from Monday’s close.
    Mineralys Therapeutics — The health-care company gained about 3% after Credit Suisse initiated coverage of the stock with an outperform rating and $40 price target, which suggests upside of more than 100%. The Wall Street firm said there is a large unmet need for resistant hypertension treatment and said Mineralys has “potential best-in-class” data.
    Hesai Group — The stock gained 1.4% in light premarket trading after Morgan Stanley initiated coverage of the stock with an overweight rating and $26.50 price target, which implies nearly 40% upside. The Wall Street firm said Hensai “outshines peers, with its superior scale and margin, and its strong project pipeline.”
    — CNBC’s Jesse Pound, Hakyung Kim and Alex Harring contributed reporting.

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    Dick’s Sporting Goods smashes same-store sales expectations for holiday quarter

    Dick’s Sporting Goods on Tuesday beat analyst’s expectations on their fourth-quarter earnings and revenue.
    Same-store sales increased 5.3%, more than double analyst’s estimates of 2.1%, according to StreetAccount.
    The company posted full-year guidance for 2023 that was also above what analysts had anticipated.

    A Dick’s Sporting Goods store stands in Staten Island on March 09, 2022 in New York City.
    Spencer Platt | Getty Images

    Dick’s Sporting Goods on Tuesday reported holiday quarter results that beat Wall Street’s expectations, citing a sales boost from the gift-giving season even with inflation-weary consumers.
    Same-store sales increased 5.3% during the fourth quarter, more than double analysts’ estimates of 2.1%, according to StreetAccount. That metric measures sales online and in stores open for 14 months or more.

    The sporting good retailer’s performance has stayed resilient in the face of an inflationary macroenvironment and industry-wide inventory struggles. It said Tuesday that even amid shaky consumer demand across the sector, its shoppers continued buying.
    Dick’s is going into its next fiscal year with continued confidence. It anticipates full-year earnings per share between of $12.90 and $13.80, up from $10.78 per share for fiscal 2022. Analysts polled by Refinitiv had expected fiscal 2023 EPS of $12.
    It expects same-store sales growth for the fiscal year to be flat to up 2%.
    Here’s how the company did in the quarter ended Jan. 28 compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

    Earnings per share: $2.93, adjusted, vs. $2.88 cents expected
    Revenue: $3.60 billion vs. $3.45 billion expected

    The company posted net income of $236 million, about 32% lower than the $346 million it reported a year earlier.

    Dick’s has not been completely immune to the industry-wide retail pains like inventory headwinds. Supply chain disruptions led Dick’s to stock up on products to meet pandemic-era demand, only for those products to be out of season by the time they arrived.
    But the company feels confident it has resolved its supply chain dilemma as it heads into the 2023 fiscal year.
    “As planned, we continued to address targeted inventory overages, and as a result our inventory is in great shape as we start 2023,” said CEO Lauren Hobart.
    The company will host a conference call at 10 a.m. ET on Tuesday.
    This is breaking news. Please check back for updates.

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    BlackRock says European companies are showing ‘surprise resilience’ — and better value than the U.S.

    The Wall Street giant highlighted in a note Tuesday that European fourth-quarter earnings showed corporate health extended beyond the region’s bedrock sectors of banking and energy.
    “Regional stock markets have been on a good run year-to-date, but remain at a discount both on a historical basis and versus U.S. peers,” said Helen Jewell, EMEA deputy chief investment officer at BlackRock Fundamental Equities.

    A trader works as a screen displays the trading information for BlackRock on the floor of the New York Stock Exchange (NYSE) in New York City, October 14, 2022.
    Brendan McDermid | Reuters

    LONDON — European corporate earnings were surprisingly resilient in the fourth quarter of 2022, and the continent’s stock outperformance of the U.S. looks set to continue, according to BlackRock.
    With earnings season winding down, the Wall Street giant highlighted in a note Tuesday that European fourth-quarter earnings showed corporate health extended beyond the region’s bedrock sectors of banking and energy.

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    “Companies in Europe surprised analysts with their recent earnings performance. Regional stock markets have been on a good run year-to-date but remain at a discount both on a historical basis and versus U.S. peers,” said Helen Jewell, EMEA deputy chief investment officer at BlackRock Fundamental Equities.
    Banks and energy enjoyed a bumper fourth-quarter, BlackRock noted that earnings on the pan-European Stoxx 600 index were up by around 8% annually by the end of February, even without the energy sector.
    “Europe is the only region globally where 2024 earnings revisions are just back in positive territory,” Jewell said.
    “Earnings in the U.K. have also been a positive surprise, even when adjusted for the size of the financial and energy sectors.”

    Jewell suggested that the momentum for European banks, which have been buoyed by positive interest rates, is likely to continue, as valuations remain attractive.

    The Euro Stoxx Banks index was up almost 24% year-to-date as of Tuesday morning, but Jewell noted that earnings strength means price-to-earnings ratios remain below long-term averages for the sector.
    Price-to-earnings ratio determines whether a company is overvalued or undervalued by measuring its current share price relative to its earnings per share.
    “We turned favourable on financials in the middle of last year, and believe the sector is capable of further outperformance in 2023 as the European Central Bank remains committed to inflation control and higher rates may put more banks in a position to return cash to shareholders,” Jewell said.
    Energy majors in the U.K. and Europe posted record earnings in the fourth quarter on the back of soaring oil and gas prices, but a warmer winter has since led to lower-than-expected physical demand.
    Over the medium term, BlackRock still anticipates supply tightness and sees European oil majors continuing to generate massive cash flows.

    “These companies trade at a discount to U.S. peers and continue to allocate substantial investment toward renewable forms of energy,” Jewell added.
    Despite the resilience thus far, she highlighted the importance of profit margins in 2023, as central banks continue to tighten monetary policy and bring to an end an era of cheap money.
    Around 60% of European companies beat fourth-quarter sales expectations, while only around 50% beat on profits, according to MSCI data compiled at the end of February. A similar picture is emerging in the U.K.
    “This tallies with what companies across sectors have told us about the growing impact of wage inflation at a time when slowing economic growth has made it harder to pass on costs. We believe that companies with a higher exposure to wage costs may continue to struggle in 2023,” Jewell said.
    “We see many opportunities for investors in the region, although it’s important to be selective as profit-margin pressure may bring dispersion across sectors and within industries.”

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    Best Buy will set up in-home hospital care through a new deal with Atrium Health

    Best Buy has struck a deal to sell devices and handle installation for a program that allows patients to get hospital care at home.
    The consumer electronics retailer is expanding its health-care business as sales of other consumer electronics slow.
    CEO Corie Barry said on an earnings call that Best Buy expects sales in its health division will grow faster than the rest of the business this fiscal year.

    Best Buy’s Geek Squad will install health-care devices that power a hospital at home program for Atrium Health, a North Carolina-based nonprofit.

    Best Buy is best known for installing TVs and home theater systems. Now, its Geek Squad is helping to set up virtual hospital rooms.
    The consumer electronics retailer said Tuesday it has struck a three-year deal with Atrium Health, a North Carolina-based health-care system, to help enable a hospital-at-home program. Atrium Health is part of Advocate Health, one of the country’s largest health-care nonprofits.

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    Best Buy’s Geek Squad will go to patients’ homes, set up technology that remotely monitors their heart rate, blood oxygen level or other vitals and train the patient or others in the home how to use the devices. The data would then be shared securely with doctors and nurses through the telemedicine hub from Current Health.
    Best Buy began setting up virtual-care systems in mid-February for 10 hospitals in and around Charlotte, North Carolina. The company said it aims to have about 100 patients in the program each day — roughly equivalent to a midsized hospital but without a building.
    Best Buy and Atrium did not disclose specific financial terms, but said Atrium will buy the devices from Best Buy and use Geek Squad services for installation and retrieval when the patient is cleared from care. Patients will pay Atrium through their insurance, including Medicare or Medicaid.
    Best Buy Health’s President Deborah Di Sanzo said with the Geek Squad doing the setup, it leaves the doctors and nurses free to focus on the health of patients.
    “This smooths out that connection between technology and care,” she said.

    For Best Buy, the hospital-at-home program represents the latest push to turn health care into a more meaningful revenue driver. Its health-care expansion comes as sales of other consumer electronics slow.
    Best Buy, like retailers including Walmart and Target, has seen consumers buy fewer big-ticket and discretionary items as they pay more for food and housing. Many consumers also bought or upgraded their laptops, smartphones, kitchen appliances and other similar products during the early years of the pandemic.
    The retailer expects a same-store sales decline of between 3% and 6% in the fiscal year, with most of that drop coming in the first six months.
    Over the past five years, Best Buy has acquired three health-care companies: GreatCall, which makes easy-to-use cell phones and connected health devices and provides emergency response services for aging adults; Critical Signal Technologies, another senior-focused company; and Current Health, a tech concern based in the United Kingdom that helps with remote patient monitoring and telehealth. Best Buy also sells health and wellness devices, including hearing aids and fitness trackers.
    On an earnings call last week, CEO Corie Barry said Best Buy expects sales in its health division to grow faster than the rest of its business this fiscal year.
    Di Sanzo, however, noted the at-home-care side of Best Buy’s health business is “still very nascent” and the revenue from it is “still very small.”
    “We want to do this thoughtfully,” she said. “We want to do this well. We want to create pathways that enable care at home in a more seamless manner. We want to tie technology and empathy together and really help change how health care is delivered to people in their homes.”
    Atrium Health began its hospital-at-home program out of necessity early in the pandemic, when patients sick with Covid crowded its hospitals and filled its intensive care units, said Dr. Rasu Shrestha, chief innovation and commercialization officer at Atrium.
    He said the health-care system saw the program had lasting benefits and could work for patients with other kinds of conditions, such as people recovering from a heart condition, an infection or surgery. It costs less than hospital care and allows patients to recover while surrounded by loved ones and the comforts of home, he said.
    Patients in the program are medically stable, Shrestha said. Some are discharged from the hospital or go straight into the hospital-at-home program after visiting the emergency room.
    So far, Atrium Health has served over 6,300 patients through the hospital-at-home program, he said.

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    Lego sales leap 17% as fans buy bigger, more complicated sets

    Lego’s revenue jumped 17% in 2022, reaching 64.6 billion Danish krone, or about $9.28 billion.
    The toymaker wasn’t immune to macroeconomic pressures during the year including the war in Ukraine and increased costs.
    However, Lego was able to offset those costs due to strong demand for its eclectic selection of building sets.

    A customer reaches for a box from the Lego Dots range at the Lego A/S store in London, U.K., on Monday, March 7, 2022.
    Bloomberg | Getty Images

    Lego sales are building on pandemic-era growth, boosted by a diverse slate of products that cater to kids and adults alike.
    On Tuesday, the privately held Danish toymaker said revenue in 2022 jumped 17%, reaching 64.6 billion Danish krone, or about $9.28 billion.

    Lego was among the toy companies that saw massive gains during the pandemic and continues to outperform the industry and zap up market share.
    The company wasn’t immune to macroeconomic pressures during the year including the war in Ukraine, Covid restrictions and increased material, shipping and energy costs.
    Lego has offset some of those shipping costs by placing manufacturing plants near key markets. For example, the U.S. currently gets its product from a factory in Mexico. That supply chain will shorten in the next two years as Lego opens a new plant in Virginia.
    Another factor in offsetting those costs was strong demand for Lego’s eclectic selection of building sets, CEO Niels Christiansen told CNBC.
    “People are buying more,” Christiansen said. “It’s not price increases driving it, if anything it’s people buying some of the bigger and more complicated sets. It’s a combination of volume and value.”

    Net profit for the full year reached 13.7 billion Danish krone, or about $2 billion, up around 4% from 2021.
    Christiansen pointed to the strength of Lego’s brand and its diverse product line that hits on a variety of “passion points” for its strong performance in 2022. These products range from themed sets of Star Wars and Harry Potter to botanical flower arrangements and muscle car replicas.
    Around 48% of Lego’s 2022 portfolio was in the new product category, he said. That’s on par with previous years and is part of the company’s strategy for having fresh and relevant sets for all consumers. Sometimes that means tapping into a popular film or television show like “Stranger Things” or expanding its catalog to include buildable wall art.
    Christiansen also noted that Lego worked to diversify its price points, as inflation and uncertainty negatively affected consumers over the past year. He said the company looked for ways to offer a wide swath of sets for all budgets.
    The company also has been reaping the benefits of opening stores in new markets, particularly in China. In 2022, the company opened 155 shops worldwide, around half of them were in that region. Lego looks to add 145 additional locations in 2023.
    Christiansen said store traffic has begun to exceed 2019 levels and noted that in-store experiences remain a high priority for the brand. Lego has always used its brick-and-mortar locations as a place for consumers to explore new products and to get their hands on physical bricks.
    Employees are also trained not to upsell guests, but rather to give them an experience. The strategy is based on a belief that customers will leave feeling positive about the brand — an impression that will be uppermost in their mind when they are looking to make future toy purchases.
    This has become a key strategy for customers in China, because they have only recently been introduced to Lego bricks.
    Online sales also remain important for the company. While it doesn’t share the percentage breakdown between digital and in-store sales, Christiansen said Lego is seeing “good traction” online and its brick and mortar sales continue to fuel its confidence in opening new stores.
    Heading into the new year, Lego is looking to continue to snap up market share and to add to its 2022 revenue gains. Christiansen said the company expects growth for the full year to reach high single digits.

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    Prosecutors in Alec Baldwin ‘Rust’ shooting case are getting heat over apparent missteps

    Alec Baldwin’s lawyers say the special prosecutor, Andrea Reeb, isn’t permitted by New Mexico’s Constitution to try the “Rust” set shooting case.
    Reeb is already under intense scrutiny for how she and her office have handled the case, both in court and in the media.
    Prosecutors already admitted to mistakenly overcharging Baldwin and “Rust” armorer Hannah Gutierrez-Reed in the death of cinematographer Halyna Hutchins.

    Actor Alec Baldwin departs his home, as he will be charged with involuntary manslaughter for the fatal shooting of cinematographer Halyna Hutchins on the set of the movie “Rust”, in New York, January 31, 2023.
    David Dee Delgado | Reuters

    It’s been just over a month since New Mexico authorities charged Alec Baldwin with manslaughter for the fatal shooting of a crew member on the set of the film “Rust,” and already the prosecution has come under harsh criticism and scrutiny.
    First, there’s the question of whether the case’s main prosecutor is even eligible to try the case. The state’s constitution prohibits a member of one branch of government from exercising the power of another branch. Andrea Reeb, the special prosecutor, also serves as a Republican state legislator. Baldwin’s attorneys filed a motion on Feb. 7 to disqualify Reeb from the case.

    Reeb and New Mexico’s First Judicial District Attorney’s office rejected that disqualification motion, calling the defense’s argument a “misconception” and saying it is “based on a novel theory that has no support in New Mexico statutes or case law,” according to court documents filed Monday.
    “Accepting Defendant’s theory would require the Court to create new law, which would have state-wide implications, based on nothing more than creative, legally unsupported argument,” prosecutors wrote in the court filing.

    Legal experts have also criticized Reeb’s overcharging of Baldwin based on a law that did not apply at the time of the fatal shooting. She backed down and downgraded the charges, which could result in a shorter jail sentence for Baldwin, if he’s convicted.
    Lawyers also found incendiary press statements and media appearances by the district attorney’s office odd since prosecutors are typically advised to reserve their comments for the courtroom.
    “From the outset, there have been some unusual facts surrounding the DA’s prosecution,” said John Day, a Santa Fe-based attorney who has practiced law in New Mexico since 1996.

    The charges stem from the October 2021 shooting death of cinematographer Halyna Hutchins during the filming of independent film “Rust.” Baldwin, who also starred in “The Departed” and “Beetlejuice,” held the gun, which was loaded with live ammunition.
    Baldwin, who is also a producer of “Rust,” and the movie’s armorer at the time, Hannah Gutierrez-Reed, were both charged in January with two different types of involuntary manslaughter by New Mexico First Judicial District Attorney Mary Carmack-Altwies. A jury, by law, can only convict them of one of those counts, each of which has a maximum possible sentence of 18 months in prison.
    David Halls, the film’s first assistant director, signed an agreement to plead to the misdemeanor charge of negligent use of a deadly weapon and receive a suspended sentence and six months of probation.
    Baldwin and Gutierrez-Reed are set to appear virtually for a status hearing on Thursday.

    The special prosecutor

    Carmack-Altwies appointed Reeb to be special prosecutor in August. Reeb previously was the Ninth Judicial District Attorney, but retired a year ago, shortly after launching her legislative campaign. She won the race in November but stayed on the “Rust” case.
    Reeb’s dual role as legislator and prosecutor raised eyebrows in the local legal community. George Heidke, a former attorney in the First Judicial District Attorney’s Office, told CNBC this was the first time in his 25 years of practicing law in New Mexico he has seen a sitting legislator simultaneously serve as a prosecutor.
    Baldwin’s lawyers argue Reeb should be removed from the case. “A prosecutor who also serves as a legislator could face pressure to make prosecutorial decisions that serve her legislative interests,” Baldwin’s lawyers wrote in a motion. Baldwin is an outspoken supporter of Democratic and progressive issues, making him a target of Reeb’s fellow Republicans.
    The DA’s office responded to this argument Monday, saying that such claims are “purely hypothetical and demonstrate the limb Defendant must climb out on in order to allege some sort of ‘encroachment or interference.'”
    There are other complications, as well.

    An aerial view of the film set on Bonanza Creek Ranch where Hollywood actor Alec Baldwin fatally shot cinematographer Halyna Hutchins and wounded a director when he discharged a prop gun on the movie set of the film “Rust” in Santa Fe, New Mexico, U.S., in this frame grab taken from October 21, 2021 television footage. Footage taken October 21, 2021.
    KOB TV NEWS | Reuters

    “I think everyone agrees that she’s inappropriately placed in two different branches of government at the same time,” Lisa Torraco, the New Mexico attorney representing Halls, told CNBC. “This is a good reason why: I donate to her campaign as a legislator and now she’s the special prosecutor on my case.”
    In September, Torraco donated $250 to Reeb’s campaign, assuming that if Reeb won the legislative race, she would automatically recuse herself from the “Rust” case. That didn’t happen.
    “If I knew, I probably wouldn’t have given her money,” Torraco said.
    Along with Torraco, Carmack-Altwies, a registered Democrat, and Dennis Maez, the private investigator for Halls, also contributed to Reeb’s campaign.
    Torraco said there is no connection between her small campaign donation and Halls’ plea deal. But, according to Santa Fe lawyer Day, “It’s the appearance that’s important.”
    “If you’re donating money to legislators, you’ve got to understand that people are going to have access to that and going to be wondering, ‘What’s going on here?'” he said. “This is exactly why you don’t want to …have a legislator who’s also acting as a prosecutor.”
    Heather Brewer, the DA’s spokesperson hired specifically for the “Rust” case, confirmed Torraco’s donation. She added that Reeb’s “integrity could never be compromised by a $250 contribution – or a contribution of any amount. Her only focus is serving the public honorably, and she will continue to do so in pursuing justice for Halyna Hutchins.”
    Gutierrez-Reed’s lawyers co-signed Baldwin’s motion to disqualify Reeb. The DA’s office declined to comment on the motion before filing its response.

    ‘A first-year law student mistake’

    Reeb’s role in the legislature aside, local lawyers found it strange that Carmack-Altwies appointed a special prosecutor in the first place. Historically, if the DA’s office does not have the resources to handle a case, it has called on the state attorney general for help.
    Instead, Carmack-Altwies requested $635,000 from New Mexico’s Board of Finance, claiming that her office needed an additional attorney, media contact person and other personnel specifically dedicated to the “Rust” case, according to a letter she sent to the finance board on Aug. 30.
    When a member of the finance board asked Carmack-Altwies whether she had approached the attorney general for assistance, she said that she had not “specifically reached out about this case in particular,” according to minutes of a hearing on her funding request. Reeb was the better option, said Carmack-Altwies, because she has “25+ years of experience, and this will be her only case for the next 12 to 18 months, which is by design.”
    The state granted the DA’s office $317,750, about half of the original request.
    Torraco said the charges that Baldwin and Gutierrez-Reed face are among the lowest-level felonies in New Mexico.
    “And they’re asking for hundreds of thousands of dollars from the legislature to prosecute it? It’s just absurd,” said Torraco. “They prosecute fourth-degree felonies every single day … why all the hype?”
    The legal risk that Baldwin faced was much higher until last month, when his lawyers challenged another decision by the prosecution.
    When Reeb first filed criminal charges, she included a so-called firearm enhancement charge, which carries a potential five-year prison sentence. Baldwin’s lawyers filed a motion on Feb. 10 to eliminate that enhancement since it became a law seven months after the fatal shooting occurred, violating the legal concept known as “ex post facto,” or after the fact.
    It was a “first-year law student mistake,” said Day. “If you’re a prosecutor, it’s your obligation to make sure you’re charging the correct law. And it’s embarrassing for that to happen because it shows they’re not paying attention to detail.”
    Reeb, in a Feb. 12 email to Baldwin’s lawyers, pointed to her legislative duties after they raised their objection to the enhancement. She wrote that she had been “busy in session all week,” and that she now was only able to take a look at the specifics of the firearm enhancement more closely.
    Reeb soon after admitted she had incorrectly applied the enhancement and dropped it from the case.

    Media circus

    The case has received significant media attention, which has persisted due to Baldwin and the prosecutors’ press communication. Baldwin gave an interview to ABC’s George Stephanopoulos in December 2021. Carmack-Altwies and Reeb have in turn made their own appearances on CNN and Fox News.
    Beyond that, Brewer, the spokesperson specifically hired for the “Rust” case, has made several heated statements about Baldwin and his attorneys on behalf of the DA’s office.

    Cinematographer Halyna Hutchins is seen in this undated handout photo received by Reuters on October 23, 2021.
    Swen Studios | via Reuters

    After the Feb. 10 motion to reduce the firearm enhancement, Brewer told CNBC that the DA’s office is dedicated to holding everyone, “even celebrities with fancy attorneys,” accountable under the law. Nearly two weeks later, when Reeb dropped the enhancement, Brewer said in a statement that the withdrawal of the charge was “in order to avoid further litigious distractions by Mr. Baldwin and his attorneys.”
    “The prosecution’s priority is securing justice, not securing billable hours for big-city attorneys,” Brewer added.
    Brewer also has suggested that Baldwin’s attempts to remove Reeb from the case are designed to take the focus off Baldwin’s alleged criminal conduct. “Mr. Baldwin and his attorneys can use whatever tactics they want to distract from the fact that Halyna Hutchins died because of gross negligence and a reckless disregard for safety on the ‘Rust’ film set,” Brewer said in a public statement.
    The American Bar Association advises against attorneys making public statements that could prejudice a jury in a criminal case, particularly as it relates to the “character” or “reputation” of defendants.
    “Prosecutors have to walk a very fine line between what you can say publicly,” said Day, the local lawyer. “You don’t want to be accused of poisoning the jury pool ahead of time. And that certainly could be an issue here.”

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