Hello. It's Friday, 21th Feb, and we're covering Tesla recalled Vehicles, home sales drop, UnitedHealth's Fraud Investigation & much more.

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Russia Considers Allocating $300 Billion in Frozen Assets for Ukraine Reconstruction

Russia is reportedly considering the allocation of up to $300 billion in frozen sovereign assets held in Europe to aid in Ukraine's reconstruction efforts as part of a potential peace agreement. Sources indicate that Russia would require a portion of these funds to be directed toward regions currently under its control.

This proposal emerges amid preliminary discussions between Russian and U.S. officials aimed at resolving the ongoing conflict, with an initial face-to-face meeting occurring on February 18 in Saudi Arabia. The frozen assets, primarily comprising European, U.S., and British government bonds, were immobilized following Russia's 2022 incursion into Ukraine.

Utilizing these funds presents significant legal and political challenges, as debates persist over financial responsibility for reconstruction and the allocation of resources between Ukrainian and Russian-occupied territories. The negotiations are in early stages, and the involvement of Russia's central bank remains uncertain.

The handling of these assets could have profound implications for international banking and the principles governing reserve currencies.

U.S. Existing Home Sales Decline Sharply in January

In January, U.S. existing home sales experienced a significant decline of 4.9%, reaching an annual rate of 4.08 million units, as reported by the National Association of Realtors. This downturn follows three consecutive months of increases and surpasses economists' expectations of a decrease to 4.12 million units.

The decline is attributed to elevated mortgage rates and home prices, which have dampened demand. Contracts signed in November and December influenced January's sales figures, with the average 30-year fixed mortgage rate rising from 6.72% at October's end to 6.85% by late December.

Despite the monthly drop, home resales saw a 2.0% year-over-year increase in January. The housing market continues to face affordability challenges, exacerbated by persistent inflation and economic resilience, even as the Federal Reserve has implemented interest rate cuts.

Inventory levels increased by 3.5% to 1.18 million units, while the median home price rose by 4.8% to $396,900. Homes remained on the market longer, averaging 41 days, with first-time buyers accounting for 28% of sales.

Justice Department Investigates UnitedHealth's Medicare Billing Practices

The U.S. Department of Justice has initiated a civil fraud investigation into UnitedHealth Group's Medicare billing practices, leading to a nearly 12% drop in the company's shares.

The probe centers on whether UnitedHealth recorded diagnoses that resulted in increased payments to its Medicare Advantage plans. UnitedHealth has refuted the allegations, stating that the report contains "misinformation" about its Medicare Advantage operations and emphasizing regular governmental reviews to ensure compliance.

The company also noted it was unaware of any new regulatory actions. This investigation adds to the existing scrutiny of the health insurance sector, with shares of other insurers like Humana and CVS Health also experiencing declines.

Investors express concern over the potential impact of the investigation on UnitedHealth's profitability, especially amid rising medical costs and other operational challenges.

Sports & Entertainement

• Tony Award’s Dog: For nearly five decades, Bill Berloni has transformed shelter dogs into stars of stage and screen. Beginning with the original Sandy in "Annie," Berloni pioneered the use of rescue animals in major productions, earning a Tony Award for his contributions. His work not only entertains audiences but also highlights the potential of overlooked animals.

• Collier Shares Winnings: Napheesa Collier, co-founder of Unrivaled, won the league's inaugural 1-on-1 tournament, securing a $200,000 prize. Demonstrating generosity, she is distributing half of her winnings among league staffers, acknowledging their essential contributions. This gesture underscores Collier's commitment to supporting those behind the scenes in women's basketball.

Business & Economy

• SEC Drops Lawsuit: The U.S. Securities and Exchange Commission plans to withdraw its lawsuit against Coinbase, ending a prolonged legal battle that posed significant challenges for the cryptocurrency exchange and the broader industry. This move reflects a shift in the SEC's approach to crypto regulation under the current administration.

• Tesla Recalls Vehicles: Tesla is recalling nearly 380,000 vehicles in the United States due to a power steering assist failure that could increase steering effort, especially at low speeds, potentially raising the risk of a crash. The recall affects certain 2023 Model 3 sedans and Model Y crossovers. Tesla has released an over-the-air software update to address the issue.

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