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  • Meta documents show main metaverse is losing users and falling short of goals, report says

    Meta documents show main metaverse is losing users and falling short of goals, report says

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    Horizon Worlds, Meta‘s flagship metaverse for consumers, is failing to meet internal performance expectations, according to The Wall Street Journal, which reviewed internal company documents.

    Meta initially aimed to reach 500,000 monthly active users in Horizon Worlds by the end of the year, but the current figure is less than 200,000, according to the report. Additionally, the documents showed that most users didn’t return to Horizon after the first month on the platform, and the number of users has steadily declined since spring, the Journal said.

    Only 9% of worlds are visited by at least 50 people, and most are never visited at all, according to the report.

    The report comes as the company’s stock falls, user numbers decline and advertisers cut spending. Meta shares are down 62% so far this year.

    Meta rebranded from Facebook last year in order to reflect the company’s ambitions beyond social media. CEO Mark Zuckerberg has specifically been interested in building out the metaverse, which is a virtual world that allows users to work and play together.

    As a result, Meta created Horizon Worlds, which is a network of virtual spaces where users can engage with one another as avatars. Individuals can access Horizon through Meta’s Quest virtual-reality headsets.

    In an effort to drum up some excitement around the metaverse, Zuckerberg unveiled his company’s newest virtual reality headset, dubbed the Meta Quest Pro, at Meta’s Connect conference Tuesday. The device costs $1,500 and contains new technologies, such as an advanced mobile Snapdragon computer chip.

    A Meta spokesman told The Wall Street Journal that the company continues to make improvements to the metaverse, which was always meant to be a multiyear project. Representatives for Meta didn’t immediately respond to CNBC’s request for comment.

    Meta has said it will release a web version of Horizon for mobile devices and computers this year, but the spokesman didn’t have any launch dates to disclose.

    Read the full Journal report here.

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  • Oil protesters appear in court after throwing soup at Van Gogh painting

    Oil protesters appear in court after throwing soup at Van Gogh painting

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    Activists of “Just Stop Oil” glue their hands to the wall after throwing soup at a van Gogh’s painting “Sunflowers” at the National Gallery in London, Britain October 14, 2022. 

    Just Stop Oil | Reuters

    The climate activists who threw soup over Vincent Van Gogh’s famous “Sunflowers” painting on Saturday appeared in a London court on charges of criminal damages, several outlets reported.

    The two women were protesting as part of the campaign group Just Stop Oil, and they pleaded not guilty at the Westminster Magistrates’ Court during two brief hearings.

    After dumping two cans of tomato soup over the Van Gogh oil painting Friday, the protesters also glued themselves to the gallery wall. They were removed by specialists and taken into custody, according to the London Metropolitan Police.

    A spokesperson for the National Gallery confirmed that there was no damage to the painting, which is one of the iconic versions of “Sunflowers” that Van Gogh painted in the late 1880s. It has an estimated value of $80.99 million.

    “There is some minor damage to the frame but the painting is unharmed,” the spokesperson told CNBC. The painting was covered by glass, and it was cleaned and returned to the National Gallery Friday afternoon.

    Just Stop Oil has been protesting in London for the past two weeks, and the group said in a press release that its actions were “in response to the government’s inaction on both the cost of living crisis and the climate crisis.”

    “What is worth more, art or life? Is it worth more than food? Worth more than justice? Are you more concerned about the protection of a painting or the protection of our planet and people?” one activist said in a video of the event.

    Just Stop Oil has received widespread criticism from environmental groups and politicians from the opposition Labour Party following the protest.

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  • Upcoming Russian nuclear exercises a challenge for the West

    Upcoming Russian nuclear exercises a challenge for the West

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    With Russia expected to soon carry out large-scale drills of its nuclear forces as President Vladimir Putin threatens to use them, the United States and its allies will be challenged to ensure they can spot the difference between exercises and the real thing.

    Russia typically holds major annual nuclear exercises around this time of year, and U.S. and Western officials expect them perhaps in just days. They will likely include the test launch of ballistic missiles, U.S. officials say.

    But with Putin having openly threatened to use nuclear weapons to defend Russia in its unraveling invasion of Ukraine, some Western officials are worried Moscow could deliberately try to muddy the waters about its intentions.

    “This is why you don’t want to have extraordinarily overheated rhetoric at the same time you’re going to do a nuclear exercise,” a Western official told Reuters, speaking on condition of anonymity.

    “Because then we do have an additional challenge to really be sure that the actions that we see, the things that are occurring, are actually an exercise and not something else.”

    Still, the official expressed “high confidence” in the West’s ability to make this distinction.

    NATO Secretary-General Jens Stoltenberg assured a news conference in Brussels that the alliance would monitor Russia’s annual nuclear drills very closely, as it has for decades.

    At the White House, National Security Council spokesperson John Kirby said Russia’s so-called “Grom” drills would involve large scale maneuvers of its strategic nuclear forces, including live missile launches. He described them as “routine.”

    “While Russia probably believes this exercise will help it project power, particularly in light of recent events, we know that Russian nuclear units train extensively at this time of year,” Kirby said, adding the United States would “monitor that accordingly.”

    A U.S. defense official, speaking on condition of anonymity, said the Russian drills were expected to be carried out about the same time as NATO’s own annual nuclear preparedness exercise, which is dubbed “Steadfast Noon” and will begin next week.

    “We believe that Russian nuclear rhetoric and its decision to proceed with this exercise while at war with Ukraine is irresponsible,” the official told Reuters.

    “Brandishing nuclear weapons to coerce the United States and its allies is irresponsible.”

    The Russian Defense Ministry did not immediately respond to an emailed request for comment.

    Officials have so far said Putin has not yet taken steps to suggest he’s preparing to launch a nuclear strike, but Moscow’s nuclear rhetoric has intensified following a successful counter-offensive by Ukraine’s military over the past month.

    In recent weeks Putin has proclaimed the annexation of Ukrainian territories and threatened to defend Russian land with nuclear weapons. A senior NATO official said on Wednesday any use of nuclear weapons by Russia might trigger a “physical response” from the alliance.

    U.S. Defense Secretary Lloyd Austin said on Thursday after a meeting of NATO’s nuclear planning group in Brussels that he had not seen any “indications and warnings” that would cause a change to the U.S. nuclear posture.

    Russia last exercised its nuclear forces in February, shortly before its invasion of Ukraine, in a move officials at the time believed was meant to discourage the West from supporting Kyiv.

    The Western official expected drills meant to test “the Kremlin’s ability to provide control over the forces and to issue direction, and of the forces themselves to respond to that direction.”

    The official anticipated that Russia would publicize aspects of the drills, and use them to drive home Moscow’s threats.

    “We should expect that there will be nuclear rhetoric during the exercise, so that they can take advantage, strategic communications advantage, of the exercise itself,” the Western official said.

    NATO’s own annual nuclear exercise was planned before Russia’s invasion of Ukraine, U.S. officials said, adding it has been held regularly at around the same time of the year for over a decade. The bulk of the drills will take place more than 1,000 kilometers (625 miles) from Russia, the U.S. defense official said.

    Fourteen NATO nations are expected to be involved in the alliance’s drills, which include fighter jets capable of carrying nuclear warheads — but does not involve live bombs, the U.S. officials said, adding U.S. military B-52 bombers will participate.

    “While we will continue routine activities to sustain our (nuclear) deterrent, there will be no special messaging around our exercises,” the U.S. defense official said.

    “We think nuclear saber rattling is reckless and irresponsible. Russia may choose to play that game – but we won’t.”

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  • Apple workers in Oklahoma vote for company’s second U.S. union store

    Apple workers in Oklahoma vote for company’s second U.S. union store

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    A shopper looks at a wall fully occupied with iPhone case covers at the American multinational technology company Apple store in Hong Kong. China’s consumer prices rose at a slower-than-expected pace in August amid heatwaves and Covid-19 flare-ups, while producer inflation eased to the lowest since February 2021, official data showed.

    Budrul Chukrut | Lightrocket | Getty Images

    Employees at an Apple store in Oklahoma City voted on Friday to join a union, marking the second unionized Apple store in the U.S.

    The vote is a defeat for Apple, which has opposed unionization efforts around the country. It’s a win for Communications Workers of America, which now represents the workers at an Apple store after separate unionization efforts at stores in Georgia and New York City stalled.

    The tally was 56 votes in favor and 32 opposed. Approximately 94 employees were eligible to join CWA. Voting took place earlier this week.

    “The Penn Square Apple retail workers are an amazing addition to our growing labor movement, and we are thrilled to welcome them as CWA members,” CWA Secretary-Treasurer Sara Steffens said in a statement.

    “We believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams,” Apple said in a statement, adding that since 2018 it has increased its starting wages in the U.S. by 45%.

    The National Labor Relations Board will certify the votes in the coming week. After that, Apple is required to bargain with the union over working conditions.

    Apple has opposed the union, according to a CWA filing earlier this month, which alleged that Apple management held anti-union meetings and threatened to withhold perks from stores that unionized.

    Apple’s first unionized U.S. store, represented by the International Association of Machinists and Aerospace Workers in Maryland, is preparing to begin formal negotiations with Apple. According to Bloomberg News, Apple told staff there that it would not get some perks such as tuition pre-payment or access to online courses, because it would need to be negotiated with the union.

    Apple is one of the most valuable companies in the world, reporting over $365 billion in global sales in 2021. It has about 270 stores in the U.S.

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  • Rupert Murdoch explores reuniting Fox and News Corp.

    Rupert Murdoch explores reuniting Fox and News Corp.

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    President Donald Trump (L) is embraced by Rupert Murdoch, Executive Chairman of News Corp, during a dinner to commemorate the 75th anniversary of the Battle of the Coral Sea during WWII onboard the Intrepid Sea, Air and Space Museum May 4, 2017 in New York.

    Brendan Smialowski | AFP | Getty Images

    Rupert Murdoch is exploring whether to put his media companies News Corp. and Fox Corp. back together, according to News Corp.

    News Corp., which owns Wall Street Journal publisher Dow Jones, said Friday that it had formed a special committee of board members to consider a possible deal. A merger isn’t certain, the company added in its announcement.

    Fox Corp., which was left over from the $71.3 billion Twenty-First Century Fox sale to Disney in 2019, owns right wing networks Fox News and Fox Business, which is a CNBC competitor.

    A combination would allow Murdoch to consolidate leadership in his media empire and cut costs. The discussions come as the audience shrinks for both print media and cable television, as readers and viewers increasingly get their news and entertainment from social media, online news and streaming services.

    The announcement will have no impact on the current operations of News Corp., CEO Robert Thomson told employees in a memo obtained by CNBC.

    “I would like to stress that the special committee has not made any determination at this time, and there can be no certainty that any transaction will result from this evaluation,” he wrote.

    Thomson also asked employees not to speculate about the potential deal or make any formal comments to media, shareholders or customers.

    The news also comes as Fox Corp. and Fox News are facing a $1.6 billion defamation lawsuit from Dominion Voting Systems. Dominion argues that Fox News and Fox Business made false claims that its voting machines rigged the results of the 2020 presidential election between Donald Trump and Joe Biden.

    CNBC has reached out to Fox and News Corp. for comment. “Neither the Company nor the Special Committee intends to comment on or disclose further developments regarding the Special Committee’s work unless and until it deems further disclosure is appropriate or required,” News Corp. said in a statement on Friday.

    Murdoch, 91, split Fox and News Corp. in 2013. He is the chairman of Fox and the executive chairman of News Corp. His son Lachlan Murdoch is CEO of Fox and co-executive chairman of News Corp.

    The Murdoch family has a 42% voting stake in Fox and a 39% voting stake in News Corp., according to the Journal. Fox’s market value is about $17 billion, while News Corp.’s is about $9 billion, as of Friday’s market close. Class A shares of News Corp. rose more than 3% after hours, while Fox’s Class A shares barely moved.

    News Corp. also includes book publisher HarperCollins, scandal sheet the New York Post and news outlets in the U.K. and Murdoch’s native Australia. Fox’s holdings also include the Fox broadcast network, which airs “The Simpsons” and NFL games.

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  • Trump won’t be the Republican nominee in 2024, ex-GOP House Speaker Paul Ryan predicts

    Trump won’t be the Republican nominee in 2024, ex-GOP House Speaker Paul Ryan predicts

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    House Speaks Paul Ryan greets US President Donald Trump as he arrives on stage to speak at the National Republican Congressional Committee March Dinner at the National Building Museum on March 20, 2018 in Washington, DC.

    Mandel Ngan | AFP | Getty Images

    Former President Donald Trump will not be the Republican Party’s White House nominee in the 2024 election, former GOP House Speaker Paul Ryan predicted.

    “Trump’s unelectability will be palpable by then,” Ryan said in an interview with consulting firm Teneo that aired Thursday. Ryan is vice chairman of the firm.

    “We all know that he’s much more likely to lose the White House than anybody else running for president on our side of the aisle, so why would we want to go with that?” the former lawmaker from Wisconsin said.

    “Whether he runs or not, I don’t really know if it matters,” Ryan added. “He’s not going to be the nominee, I don’t think.”

    Ryan, who in 2012 was the presidential running mate of now-Sen. Mitt Romney, R-Utah, and succeeded John Boehner as House speaker in 2015, has worked in the private sector since leaving Congress in 2018.

    Ryan had a tumultuous relationship with Trump before and after his one term in the White House.

    As a presidential candidate in 2016, Trump bombarded Ryan with insults, labeling him weak and disloyal. Ryan had refused to continue campaigning for Trump late in the election, following the release of an Access Hollywood recording from 2005 in which Trump is heard bragging about groping women.

    Since leaving elected office, Ryan has urged the GOP to ditch Trump, who remains the de facto leader of the party and the likeliest candidate to clinch the Republican presidential nomination in 2024.

    Trump has openly floated the possibility of launching another White House bid, though he has yet to make an official announcement. Trump lost to President Joe Biden in 2020, but never conceded the race and continues to falsely claim the election was rigged against him.

    Trump’s conspiracy claims before and after that election spurred thousands of supporters to swarm the Capitol on Jan. 6, 2021, when a joint session of Congress had convened to confirm Biden’s victory. Ryan said he “found himself sobbing” as he watched the Capitol riot unfold, according to a recent book.

    In his interview with Teneo, Ryan said the only reason Trump is still in power is because “everybody’s afraid of him.”

    “He’s going to try to intimidate people out of the race as long as he can,” Ryan said.

    That fear of Trump will cause other GOP presidential contenders to delay their decisions to run, waiting for “somebody else to take the first plunge,” Ryan predicted. After Trump attacks that first person, “they can follow in behind,” Ryan said, likening the situation to a “prisoner’s dilemma.”

    But that ultimately won’t stop would-be candidates from throwing their hats in the ring, he said.

    “The one inexhaustible power in politics is ambition, you can count on that. There’s a handful of people who are going to run because it’s really the only cycle they can run, and they can’t wait until 2028,” Ryan said.

    “They’ve got to go now if they’re ever going to go, and they don’t want to die not ever trying,” he added.

    “As soon as you get sort of the herd mentality going, it’s unstoppable. So I think the fact that he pulls so much poorer than anybody else running for president as a Republican against a Democrat is enough right there,” Ryan said. “He’s gonna know this, and so whether he runs or not, I don’t really know if it matters, he’s not going to be the nominee, I don’t think.”

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  • Omicron BA.5 is declining in the U.S. as emerging variants gain ground, CDC data shows

    Omicron BA.5 is declining in the U.S. as emerging variants gain ground, CDC data shows

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    The U.S. faces at least seven different versions of Covid-19 omicron as the nation heads into winter when health officials are expecting another wave of viral infections.

    Although the omicron BA.5 variant remains dominant in the country, it is starting to lose some ground to other versions of the virus, according to data from the Centers for Disease Control and Prevention published on Friday.

    Omicron BA.5 has splintered into several new but related variants that include BQ.1, BQ.1.1 and BF.7. The U.K. Health Security Agency, in a report earlier this month, said these three variants are demonstrating a growth advantage over BA.5, which was the most contagious version to date.

    In the U.S., omicron BA.5 makes up about 68% of all new infections, down from about 80% at the beginning of October. BQ.1, BQ.1.1 and BF.7 are now causing about 17% of new infections combined, according to the CDC data.

    About 3% of new infections are attributable to BA.2.75. and BA.2.75.2, which are related to the omicron BA.2 variant that caused a bump in cases during the spring but was pushed out.

    Scientists at Peking University in China found that omicron BA.2.75.2 and BQ.1.1 were the most adept at evading immunity from prior BA.5 infection and several antibody drugs. The study, published earlier in October, has not been peer reviewed.

    Dr. Ashish Jha, the White House Covid response coordinator, said earlier this week that U.S. health officials are closely monitoring these variants because they are good at evading prior immunity.

    “The reason we’re tracking them is because they either have a lot more immune invasiveness or they render many of our treatments ineffective,” Jha said. “Those are the two major things that get our attention.”

    But Jha said the new omicron boosters that the U.S. started rolling out last month should provide better protection than the first-generation vaccines against these emerging variants. The boosters target BA.5 and the emerging variants are all omicron and most descend from BA.5.

    Jha called on all eligible Americans to get the new boosters by Halloween so they will have full protection for Thanksgiving when family holiday gatherings kick into full swing.

    But the scientists at Peking University said the immune evasiveness of variants like BA.2.75.2 and BQ.1.1 could mean that the BA.5 booster shots will not provide sufficiently broad protection.

    It’s unclear how much more effective the boosters will prove in the real world. The Food and Drug Administration authorized the shots without direct human data, relying instead on clinical trials from a similar shot that was developed against the original version of omicron, BA.1.

    Pfizer and BioNTech on Thursday published the first human data from their BA.5 shots. They triggered a significant boost to the immune system against omicron BA.5 in a lab study that looked at blood samples from adults ages 18 and older, the companies said.

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  • Cloud stocks just wrapped up their worst week since January, led by plunge in Five9 and SentinelOne

    Cloud stocks just wrapped up their worst week since January, led by plunge in Five9 and SentinelOne

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    Rowan Trollope, CEO, Five9

    Scott Mlyn | CNBC

    Cloud stocks plummeted 11% this week, the steepest drop since January, as executive departures at Five9 and Zscaler and investors’ continued rotation out of risk combined to send the group to its lowest level since March 2020.

    The WisdomTree Cloud Computing Fund, a basket of 75 cloud software stocks, has lost 53% of its value for the year, more than double the drop in the S&P 500. After soaring in 2020 and 2021, when Wall Street piled into growth at the expense of profit, the sector has fallen out of favor in 2022 on concerns over inflation and rising interest rates.

    Five9 shares suffered the biggest decline in the index, falling 29% for the week, after CEO Rowan Trollope said he was leaving to run a pre-IPO company. While the provider of call center software also pre-announced third-quarter revenue that indicated results would be better than expected, the numbers weren’t good enough to offset the concern caused by a transition in the C-suite.

    Trollope, who’s been CEO since 2018, is being succeeded by Mike Burkland, who resigned as CEO in 2017 after he was diagnosed with cancer. 

    “Interest level in the name remains high, but confidence is shaken following both announcements and the lack of clarification from Five9 until the earnings call next month,” wrote analysts from Piper Sandler in a report on Oct. 13. The firm still has a buy rating on the stock.

    Five9 wasn’t the only company in the group to lose a top executive. Security software vendor Zscaler announced the resignation of its president, Amit Sinha, who is also taking a CEO position at a pre-IPO company. The stock plunged 21% for the week.

    “While it’s never (or rarely) thought of as good news for a C-level executive to leave a company, we believe this change will not impact Zscaler’s near- or long-term prospects, and it appears to be a unique opportunity for Mr. Sinha,” wrote analysts from Guggenheim who recommend buying the stock.

    It was a choppy week for the markets broadly, capped off by a selloff on Friday. A consumer survey from the University of Michigan showed inflation expectations were increasing, a sentiment that the Federal Reserve is likely watching closely. The Nasdaq led declines as growth companies are most sensitive to interest rate hikes.

    The WisdomTree index fell all five days this week, and had its worst day on Friday, dropping 3.6%. SentinelOne, which sells cybersecurity software, dropped 22%, even with no particular news driving the decline. GitLab, a code repository for developers, slid 21%. SentinelOne and GitLab both went public last year in high-profile IPOs. They’ve each lost more than half their value this year.

    WATCH: The efficiencies of the cloud pose a long-term threat to hardware

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  • Viral TikTok Proves No One Wants To Go Back to the Office

    Viral TikTok Proves No One Wants To Go Back to the Office

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    Friday night employee events were bad news even in the best of times. But nearly three years into a pandemic with a workforce that’s gone hybrid, they’re even worse.

    One TikToker said she showed up to work IRL and for drinks — and no one was there, per The Daily Dot — not even virtually.

    “Not even the HR manager who [organized] it came in,” she wrote in the caption.

    The video shows TikToker @kawaiiprincessv looking at an invitation for “Barefoot Fridays I Office Drinks,” from 4:30 p.m. to 5:30 p.m.

    “Come back into the office for the culture,” the TikToker wrote as text on top of the video, implying an employer or leader had said something of the sort.

    @kawaiiprincessv Not even the HR manager who organised it came in #officehumor #backtooffice #officeculture #officelife ♬ Dont Worry Be Hurt – There I Ruined It

    Then, they showed the time, 4:47 p.m. “The culture,” she wrote over the video — with a shot of the empty office.

    The TikTok was posted around 3 a.m. EST. The video showed a call-in with an Australian number, potentially indicating that this is where the creator or company is based. That would put the time of the TikTok’s posting at about 6 p.m. Melbourne time.

    Two people even responded to the event as virtual attendees.

    “Can confirm, the 2 virtuals didn’t show. Must’ve got stuck in traffic or something,” the author joked in the comments.

    “I can drink at 430 at home (and I do) without worrying about my ride home,” another person commented.

    As work has re-arranged itself for the laptop set post-pandemic, companies have debated endlessly about hybrid versus in-person versus fully remote. Some have tried to convince employees to come back to the office with perks or to collaborate more, to the derision or anger of employees.

    Kastle Systems’ return to office data shows a weekly occupancy rate in 10 U.S. cities, based on average swipe-ins, at 47.4%.

    “Office occupancy held steady again this week, ” the security firm wrote.

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    Gabrielle Bienasz

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  • Equifax Fires 24 Workers With Secret Second Jobs

    Equifax Fires 24 Workers With Secret Second Jobs

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    Winter came early for 24 people who were working secret second jobs or prohibited side hustles at .


    Miguel Pereira I Getty Images

    Working from home with baby in Spain in 2020.

    The credit reporting bureau used one of its own products, The Work Number, to find out if employees were working second jobs against policy, as well as chats with managers and things like VPN usage, Insider reported Thursday.

    Then it fired them.

    “We expect our team to be fully dedicated to EFX and have one role …their job at EFX,” the CEO Mark Begor wrote in an email to employees this week.

    The outlet cited conversations with unnamed sources and shared documents. Equifax confirmed some information about the event in a statement to Entrepreneur.

    “Equifax recently conducted an investigation into a number of employees suspected of holding dual, full-time that conflicted with their roles at our company,” a company spokesperson said.

    “As a result, several employees who violated our company code of conduct and outside employment policy, which were in effect at the time of the investigation, were recently terminated,” it added.

    The whole operation reveals a way employers, some dealing with increasingly remote laptop workforces — and others trying to wrangle people back in the office — can use surveillance to regain control in a hybrid environment.

    Equifax had access to a product called The Work Number to produce reports to find out about employee activities. It offers the likes of employers and auto lenders the ability to access employment history. You can also request your own report from TWN.

    Equifax told Insider a potential employer would not be able to see certain information the records have, such as salaries.

    The company says 2.5 million companies have submitted payroll records to TWN. It has work history and pay information on 105 million workers in the U.S. — and expects interest in the product to grow, per the company’s disclosures.

    One author of the Insider piece said their TWN report had every job they had ever worked besides unpaid internships and one job from high school.

    Under the banner of The Work Number, Equifax even targets a specific product aimed at employers who might want to check if their people are working multiple jobs, called Talent Report Employment Monitoring.

    The company made use of the technology and data behind it in its own months-long investigation.

    “I’m not sure how Equifax can be trusted with data when it uses it to spy on its own employees,” one Equifax employee told Insider.

    Equifax also told Insider that some people “may have even dialed into interviews with Equifax, conducted as part of the probe, from another job site, she said, including one who worked as a nurse, and another who claimed he was at home while sitting in what looked like an office cubicle,” the outlet wrote.

    Equifax’s code of conduct has said since 2017 employees have to disclose outside work. The company allows people to work from home two days a week

    One person who worked in cybersecurity at the company and was fired told the outlet they were not aware their non-compete agreement didn’t allow them to have a side hustle in a different industry.

    The WSJ was one of the first outlets, back in August 2021, to report on people having a secret second job while working remotely.

    Equifax also told Entrepreneur it “followed all applicable laws in its handling of this situation.”

    Besides the TWN reports, Equifax used other tools for the investigation, including speaking with managers, locating people who seemed to drop out at certain points during the day, and whether people were not using the company VPN for at least 13 hours a week, or if people being investigated seemed to lie about their locations.

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    Gabrielle Bienasz

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  • Meta Says Zuckerberg’s Avatar Legs Were Animated ‘Preview’

    Meta Says Zuckerberg’s Avatar Legs Were Animated ‘Preview’

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    The legs may have been a lie.


    Meta

    Mark Zuckerberg’s avatar shows off its legs at Meta Connect 2022.

    In perhaps one of the larger meme reveals in recent memory, said in a statement to UploadVR Thursday that the highly-anticipated legs on CEO ‘s avatar were not actually a result of its VR or headsets.

    “To enable this preview of what’s to come, the segment featured animations created from motion capture,” the company said.

    This implies that the headsets were not rendering the legs but that they were animations of some kind.

    Zuckerberg did say at the event that it was a “preview of our next generation of avatars.”

    The legs and the avatar in general became the focus of internet attention after Zuckerberg posted a picture on of his billion-dollar avatar, which some compared to graphics from 90s video games.

    At Meta Connect 2022 on Tuesday, he joked in the presentation about the criticism, saying that “everybody has,” been waiting for his digital legs. He also said that legs are hard for VR to render in avatar form because it is hard for the device to know where they are.

    It looks like that ability is potentially still out of reach for Meta’s technology — even for a demonstration.

    Catch up on what else happened at Meta Connect here.

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    Gabrielle Bienasz

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  • UK PM Liz Truss announces another huge U-turn and names Jeremy Hunt as finance minister

    UK PM Liz Truss announces another huge U-turn and names Jeremy Hunt as finance minister

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    LONDON, ENGLAND – OCTOBER 14: Britain’s Prime Minister Liz Truss attends a press conference in the Downing Street Briefing Room on October 14, 2022 in London, England. After just five weeks in the job, Prime Minister Liz Truss has sacked Chancellor of The Exchequer Kwasi Kwarteng after he delivered a mini-budget that plunged the UK economy into crisis. (Photo by Daniel Leal-WPA Pool/Getty Images)

    Danioel Lee | Getty Images News | Getty Images

    LONDON — British Prime Minister Liz Truss on Friday scrapped another key tax-cutting policy after firing her finance minister, in a bid to placate markets after the government’s controversial “mini-budget.”

    “It is clear that parts of our mini-budget went further and faster than markets were expecting,” Truss said in a brief press conference.

    Truss scrapped the pledge to reverse predecessor Boris Johnson’s hike of corporation tax from 19% to 25%, a decision estimated to restore around £18 billion ($20.1 billion) to the U.K. Treasury’s coffers by 2026.

    Finance Minister Kwasi Kwarteng was fired earlier on Friday after less than six weeks in the job, amid mounting political pressure and market chaos.

    Jeremy Hunt — a former health secretary and foreign secretary — was announced as Kwarteng’s successor. Chris Philp, chief secretary to the U.K. Treasury, was also replaced by Edward Argar.

    Market reaction

    U.K. government bonds — known as gilts — rallied sharply ahead of Truss’ news conference. The long-dated 30-year yield briefly touched 4.261% during morning trade. Yields move inversely to prices.

    However, bond prices gave back gains after the conference, with the 30-year yield returning to around 4.58% by around 3 p.m. U.K. time.

    Sterling whipsawed during a volatile session and fell around 1.4% against the dollar after Truss’ speech, trading at around $1.1165.

    In her press conference, Truss said she wanted to reassure markets of the government’s fiscal discipline, and that Hunt shared her “convictions and ambitions” for the country.

    Jeremy Hunt is interviewed for Sophie Raworth’s ‘Sunday Morning’ at BBC Broadcasting House in London.

    Tejas Sandhu | Lightrocket | Getty Images

    The government earlier this month abolished its plan to scrap the top rate of income tax after a substantial public backlash, but which failed to quell market turbulence.

    Although gilt yields rallied in the run up to Truss’ U-turn, Matthew Amis, investment director at Abrdn, said Friday that “the pressure is still for gilt yields to edge higher from here, albeit with less volatility.”

    “The Bank of England will still need to hike aggressively in the next few months and the gilt market will still need to absorb extremely high levels of gilt supply (let’s not forget the energy cap measures),” Amis said.

    “However with Trussonomics filed away under the heading ‘disaster’, we can hopefully get back to a functioning gilt market.”

    So far, roughly half of the original tax-cutting policies set out in Kwarteng’s “mini-budget” have been scrapped. However, the government still plans to go ahead with its medium-term fiscal plan announcement and accompanying independent forecasts from the Office for Budget Responsibility (OBR), which Hunt will now be tasked with delivering.

    Truss characterized the roughly £18 billion saved through the corporation tax U-turn as a “down payment” on that plan and said it would ensure public spending can “grow less rapidly” than previously outlined.

    “Market reaction reflected the underwhelming message and delivery. We saw the selloff in sterling intensify and gilt yields retrace their optimistic moves from yesterday and this morning. In short, the announcement, coupled with the withdrawal of support from the BofE has not calmed markets,” said Oliver Faizallah, head of fixed income research at U.K. investment house Charles Stanley.

    “The U.K. still has a credibility issue, which has not been helped with today’s events. The pressure is on new chancellor Jeremey Hunt to try and bring some confidence back to the market.”

    Kwarteng letter

    Kwarteng cut short a visit to Washington on Thursday to fly back to London as government ministers scrambled to address the market chaos unleashed in recent weeks.

    This included a sell-off of long-dated government bonds that led the Bank of England to intervene in order to save pension funds from collapse, and a spike in mortgage rates for prospective homeowners.

    Truss had been under immense pressure to rethink her economic policies, with opinion polls showing support for the ruling Conservative Party collapsing and lawmakers from within her own party reportedly plotting to oust her after a tumultuous first five weeks in office.

    Despite this, both she and Kwarteng had remained publicly resolute in recent days, accusing critics of the government’s radical fiscal plans of being part of an “anti-growth coalition.”

    “The economic environment has changed rapidly since we set out the Growth Plan on 23 September. In response, together with the Bank of England and excellent officials at the Treasury we have responded to those events, and I commend my officials for their dedication,” Kwarteng said in his resignation letter Friday to Truss after being asked to step down.

    “As I have said many times in the past few weeks, following the status quo was simply not an option. For too long this country has been dogged by low growth rates and high taxation — and that must still change if this country is to succeed,” Kwarteng added in his letter.

    “We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. I believe your vision is the right one. It has been an honour to serve as your first Chancellor.”

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  • Consumer spending was flat in September and below expectations as inflation takes toll

    Consumer spending was flat in September and below expectations as inflation takes toll

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    Customers shop at the GU Co. store in the SoHo neighborhood of New York, US, on Friday, Oct. 7, 2022.

    Gabby Jones | Bloomberg | Getty Images

    Consumer spending was flat in September as prices moved sharply higher and the Federal Reserve implemented higher interest rates to slow the economy, according to government figures released Thursday.

    Retail and food services sales were little changed for the month after rising 0.4% in August, according to the advance estimate from the Commerce Department. That was below the Dow Jones estimate for a 0.3% gain. Excluding autos, sales rose 0.1%, against an estimate for no change.

    Considering that the retail sales numbers are not adjusted for inflation, the report shows that real spending across the range of sectors the report covers retreated for the month.

    A Bureau of Labor Statistics report Thursday indicated that consumer prices rose 0.4% including all goods and services, and 0.6% when excluding food and energy.

    Miscellaneous store retailers saw a decline of 2.5% for the month, while gasoline stations were off 1.4% as energy prices declined.

    A slew of other sectors also posted drops, including sporting goods, hobby, books and music stores as well as furniture and home furnishing stores, both of which posted a -0.7% drop, while electronics and appliances were off 0.8% and motor vehicle and parts dealers fell 0.4%.

    General merchandise store sales rose 0.7%. Gainers also included online stores, bars and restaurants, clothing retailers and health and personal care stores, all of which saw 0.5% increases.

    While the gains for the month were muted, retail sales rose 8.2% from a year ago, matching the rise in the consumer price index. Shoppers remain generally flush with cash though there are indications of late that they are dipping into savings to make ends meet.

    The Fed has enacted multiple interest rate hikes aimed at reducing inflation and bringing the economy back into balance. Markets expect the central bank to raise rates up to 1.5 percentage points more through the end of the year.

    A separate report Thursday showed that import prices fell 1.2% in September, slightly more than the 1.1% estimate. Exports declined 0.8%.

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  • British finance minister races back to London as pressure builds for another policy U-turn

    British finance minister races back to London as pressure builds for another policy U-turn

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    Kwarteng on Monday sought to assuage lingering concerns by bringing forward the date of his plan to balance the government’s finances to Oct. 31.

    Ian Forsyth | Getty Images News | Getty Images

    LONDON — U.K. Finance Minister Kwasi Kwarteng cut short his visit to the International Monetary Fund this week, dashing back to London amid reports Prime Minister Liz Truss is considering a U-turn on parts of her government’s market-rocking tax cuts.

    Kwarteng told reporters Thursday that he was returning from the U.S. ahead of schedule, without providing further details. Reuters reported, citing unnamed sources, that the finance minister planned to meet with colleagues to work on the government’s medium-term budget plan.

    Earlier, Kwarteng insisted that he is “not going anywhere” and that he and Truss would “100%” still be in their jobs next month.

    Kwarteng’s abrupt departure from a series of international finance meetings in Washington, D.C. comes amid a growing political backlash against the Conservative government’s proposed tax cuts.

    The debt-funded measures, announced on Sept. 23 and estimated to total £43 billion ($48.7 billion), sent financial markets into a tailspin. The British pound plummeted to an all-time low against the U.S. dollar, borrowing costs rose sharply and the Bank of England was forced to intervene.

    Sky News reported Thursday that discussions were underway in Downing Street over whether to reconsider some of the tax cuts that Kwarteng announced in the government’s so-called “mini-budget.” It is thought changes to corporation tax and dividend tax could be in the cards.

    Sterling popped on the news.

    The British pound rose by 2% to trade at $1.1319 on Thursday, shrugging off stronger-than-expected U.S. inflation data. Sterling was last seen trading down 0.3% at $1.129.

    Meanwhile, long-dated U.K. government bonds — known as gilts — rallied on Friday morning, with 30-year yields trading at 4.38%.

    Truss is under immense pressure to rethink her economic policies as opinion polls show support for her government has collapsed.

    Jacob King | Pa Images | Getty Images

    Truss and Kwarteng have repeatedly defended the government’s radical spending plan, insisting the proposals are necessary to stimulate economic growth.

    Last week, Kwarteng reversed a plan to scrap the top 45% rate of income tax paid on earnings above £150,000 ($167,646) a year.

    Speaking from the U.S. on Thursday, Kwarteng responded to questions about a possible U-turn by saying he is “totally focused on delivering the growth plan.”

    However, Truss is under immense pressure to rethink the policies as opinion polls show support for her government has collapsed and investors continue to fret about the potential impact on public finances.

    Truss’s official spokesperson told CNBC on Thursday that the government’s position had not changed when asked about reports of a possible U-turn.

    ‘Let’s wait and see’

    The Bank of England on Tuesday warned that “the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability.”

    Bloomberg | Bloomberg | Getty Images

    The intervention marked the second expansion of the Bank’s rescue package in as many days after it increased the limit for its daily gilt purchases on Monday ahead of the planned end of the purchase scheme on Friday.

    By the middle of the week, Truss told lawmakers in the House of Commons that she would not be making cuts to public spending to help pay for the government’s tax cuts.

    — CNBC’s Elliot Smith contributed to this report.

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  • UK’s Royal Mail reveals plans to cut up to 6,000 jobs by next summer

    UK’s Royal Mail reveals plans to cut up to 6,000 jobs by next summer

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    A Royal Mail Group postal worker on his delivery round in Manchester, U.K.

    Paul Thomas | Bloomberg | Getty Images

    Royal Mail revealed plans Friday to cut up to 6,000 jobs by next summer following a summer of strikes by postal workers in the U.K. 

    “We will be starting the process of consulting on rightsizing the business in response to the impact of industrial action, delays in delivering agreed productivity improvements and lower parcel volumes,” Royal Mail’s parent group, recently renamed International Distributions Services, said in a release.

    “Based on current estimates, c.5,000-6,000 redundancies may be required by end of August 2023.”

    The group on Friday reported a half-year adjusted operating loss of £219 million ($247.2 million), citing around £70 million of direct negative impact from three days of postal worker strikes.

    CNBC reported last week that leaders of the CWU (Communication Workers’ Union) were in talks with Royal Mail bosses, including CEO Simon Thompson, as the company looks to avert a further 16 days of industrial action threatened by the union.

    Royal Mail said its financial position had deteriorated due to a “combination of the impact of the industrial dispute, an inability to deliver the joint productivity improvements agreed with the CWU under the Pathway to Change agreement, and ongoing macroeconomic headwinds.”

    It now expects to make a full-year operating loss of around £350 million, including the “direct, immediate impact of eight days of industrial action which have taken place or been notified to Royal Mail.”

    In a statement Friday, the CWU said Royal Mail’s financial problems were the result of “gross mismanagement and a failed business agenda of ending daily deliveries, a wholesale levelling-down of the terms, pay and conditions of postal workers, and turning Royal Mail into a gig economy style courier.”

    CWU General Secretary Dave Ward urged the company to overhaul its business plan and utilize its “competitive edge” in delivering to 32 million addresses across the U.K.

    “This announcement is holding postal workers to ransom for taking legal industrial action against a business approach that is not in the interests of workers, customers or the future of Royal Mail. This is no way to build a company,” Ward said.

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  • White House is pushing ahead research to cool Earth by reflecting back sunlight

    White House is pushing ahead research to cool Earth by reflecting back sunlight

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    Full frame sun, Climate change, Heatwave hot sun, Global warming from the sun and burning

    Chuchart Duangdaw | Moment | Getty Images

    The White House is coordinating a five-year research plan to study ways of modifying the amount of sunlight that reaches the earth to temper the effects of global warming, a process sometimes called solar geoengineering or sunlight reflection.

    The research plan will assess climate interventions, including spraying aerosols into the stratosphere to reflect sunlight back into space, and should include goals for research, what’s necessary to analyze the atmosphere, and what impact these kinds of climate interventions may have on Earth, according to the White House‘s Office of Science and Technology Policy. Congress directed the research plan be produced in its spending plan for 2022, which President Joe Biden signed in March.

    Some of the techniques, such as spraying sulfur dioxide into the atmosphere, are known to have harmful effects on the environment and human health. But scientists and climate leaders who are concerned that humanity will overshoot its emissions targets say research is important to figure out how best to balance these risks against a possibly catastrophic rise in the Earth’s temperature.

    Getting ready to research a topic is a very preliminary step, but it’s notable the White House is formally engaging with what has largely been seen as the stuff of dystopian fantasy. In Kim Stanley Robinson’s science fiction novel, “The Ministry for the Future,” a heat wave in India kills 20 million people and out of desperation, India decides to implement its own strategy of limiting the sunlight that gets to Earth.

    Chris Sacca, the founder of climate tech investment fund Lowercarbon Capital, said it’s prudent for the White House to be spearheading the research effort.

    “Sunlight reflection has the potential to safeguard the livelihoods of billions of people, and it’s a sign of the White House’s leadership that they’re advancing the research so that any future decisions can be rooted in science not geopolitical brinkmanship,” Sacca told CNBC. (Sacca has donated money to support research in the area, but said he has “zero financial interests beyond philanthropy” in the idea and does not think there should be private business models in the space, he told CNBC.)

    Harvard professor David Keith, who first worked on the topic in 1989, said it’s being taken much more seriously now. He points to formal statements of support for researching sunlight reflection from the Environmental Defense Fund, the Union of Concerned Scientists, and the Natural Resources Defense Council, and the creation of a new group he advises called the Climate Overshoot Commission, an international group of scientists and lawmakers that’s evaluating climate interventions in preparation for a world that warms beyond what the Paris Climate Accord recommended.

    To be clear, nobody is saying sunlight-reflection modification is the solution to climate change. Reducing emissions remains the priority.

    “You cannot judge what the country does on solar-radiation modification without looking at what it is doing in emission reductions, because the priority is emission reductions,” said Janos Pasztor, executive director of the Carnegie Climate Governance Initiative. “Solar-radiation modification will never be a solution to the climate crisis.”

    Three ways to reduce sunlight

    The idea of sunlight reflection first appeared prominently in a 1965 report to President Lyndon B. Johnson, entitled “Restoring the Quality of Our Environment,” Keith told CNBC. The report floated the idea of spreading particles over the ocean at a cost of $100 per square mile. A one percent change in the reflectivity of the Earth would cost $500 million per year, which does “not seem excessive,” the report said, “considering the extraordinary economic and human importance of climate.”

    The estimated price tag has gone up since then. The current estimate is that it would cost $10 billion per year to run a program that cools the Earth by 1 degree Celsius, said Edward A. Parson, a professor of environmental law at UCLA’s law school. But that figure is seen to be remarkably cheap compared to other climate change mitigation initiatives.

    A landmark report released in March 2021 from the National Academies of Sciences, Engineering, and Medicine addressed three kinds of solar geoengineering: stratospheric aerosol injection, marine cloud brightening, and cirrus cloud thinning.

    Stratospheric aerosol injection would involve flying aircraft into the stratosphere, or between 10 miles and 30 miles skyward, and spraying a fine mist that would hang in the air, reflecting some of the sun’s radiation back into space.

    “The stratosphere is calm, and things stay up there for a long time,” Parson told CNBC. “The atmospheric life of stuff that’s injected in the stratosphere is between six months and two years.”

    Stratospheric aerosol injection “would immediately take the high end off hot extremes,” Parson said. And also it would “pretty much immediately” slow extreme precipitation events, he said.

    “The top-line slogan about stratospheric aerosol injection, which I wrote in a paper more than 10 years ago — but it’s still apt — is fast, cheap and imperfect. Fast is crucial. Nothing else that we do for climate change is fast. Cheap, it’s so cheap,” Parson told CNBC.

    “And it’s not imperfect because we haven’t got it right yet. It’s imperfect because the imperfection is embedded in the way it works. The same reason it’s fast is the reason that it’s imperfect, and there’s no way to get around that.”

    One option for an aerosol is sulfur dioxide, the cooling effects of which are well known from volcanic eruptions. The 1991 eruption of Mount Pinatubo, for instance, spewed thousands of tons of sulfur dioxide into the stratosphere, causing global temperatures to drop temporarily by about 1 degree Fahrenheit, according to the U.S. Geological Survey.

    A giant volcanic mushroom cloud explodes some 20 kilometers high from Mount Pinatubo above almost deserted US Clark Air Base, on June 12, 1991 followed by another more powerful explosion. The eruption of Mount Pinatubo on June 15, 1991 was the second largest volcanic eruption of the twentieth century.

    Arlan Naeg | Afp | Getty Images

    There’s also a precedent in factories that burn fossil fuels, especially coal. Coal has some sulfur that oxidizes when burned, creating sulfur dioxide. That sulfur dioxide goes through other chemical reactions and eventually falls to the earth as sulfuric acid in rain. But during the time that the sulfur pollution sits in the air, it does serve as a kind of insulation from the heat of the sun.

    Ironically, as the world reduces coal burning to curb the carbon dioxide emissions that cause global warming, we’ll also be eliminating the sulfur dioxide emissions that mask some of that warming.

    “Sulfur pollution that’s coming out of smokestacks right now is masking between a third and a half of the heating signal from the greenhouse gases humans have already emitted into the atmosphere,” Parson said.

    In other words, we’ve been doing one form of sunlight reflection for decades already, but in an uncontrolled fashion, explained Kelly Wanser, the executive director of SilverLining, an organization promoting research and governance of climate interventions.

    “This isn’t something totally new and Frankenstein — we’re already doing it; we’re doing it in the most dirty, unplanned way you could possibly do it, and we don’t understand what we’re doing,” Wanser told CNBC. 

    Spraying sulfur in the stratosphere is not the only way of manipulating the amount of sunlight that gets to the Earth, and some say it’s not the best option.

    “Sulfur dioxide is likely not the best aerosol and is by no means the only technique for this. Cloud brightening is a very promising technique as well, for example,” Sacca told CNBC.

    Marine cloud brightening involves increasing the reflectivity of clouds that are relatively close to the surface of the ocean with techniques like spraying sea salt crystals into the air. Marine cloud brightening generally gets less attention than stratospheric aerosol injection because it affects a half dozen to a few dozen miles and would potentially only last hours to days, Parson told CNBC.

    Cirrus cloud thinning, the third category addressed in the 2021 report from the National Academies, involves thinning mid-level clouds, between 3.7 and 8.1 miles high, to allow heat to escape from the Earth’s surface. It is not technically part of the “solar geoengineering” umbrella category because it does not involve reflecting sunlight, but instead involves increasing the release of thermal radiation.

    Known risks to people and the environment

    There are significant and well-known risks to some of these techniques — sulfur dioxide aerosol injection, in particular.

    First, spraying sulfur into the atmosphere will “mess with the ozone chemistry in a way that might delay the recovery of the ozone layer,” Parson told CNBC.

    The Montreal Protocol adopted in 1987 regulates and phases out the use of ozone depleting substances, such as hydrochlorofluorocarbons (HCFCs) which were commonly used in refrigeration and air conditioners, but that healing process is still going on.

    Also, sulfates injected into the atmosphere eventually come down as acid rain, which affects soil, water reservoirs, and local ecosystems.

    Third, the sulfur in the atmosphere forms very fine particulates that can cause respiratory illness.

    The question, then, is whether these known effects are more or less harmful than the warming they would offset.

    “Yes, damaging the ozone is bad, acid deposition is bad, respiratory illness is bad, absolutely. And spraying sulfur in the stratosphere would contribute in the bad direction to all of those effects,” Parson told CNBC. “But you also have to ask, how much and relative to what?”

    The sulfur already being emitted from the burning of fossil fuels is causing environmental damage and is already killing between 10 million to 20 million people a year due to respiratory illness, said Parson. “So that’s the way we live already,” he said.

    Meanwhile, “the world is getting hotter, and there will be catastrophic impacts for many people in the world,” said Pasztor.

    “There’s already too much carbon out there. And even if you stop all emissions today, the global temperature will still be high and will remain high for hundreds of years. So, that’s why scientists are saying maybe we need something else, in addition — not instead of — but maybe in addition to everything else that is being done,” he said. “The current action/nonaction of countries collectively — we are committing millions of people to death. That’s what we’re doing.”

    For sunlight-reflection technology to become a tool in the climate change mitigation toolbox, awareness among the public and lawmakers has to grow slowly and steadily, according to Tyler Felgenhauer, a researcher at Duke University who studies public policy and risk.

    “If it is to rise on to the agenda, it’ll be kind of an evolutionary development where more and more environmental groups are willing to state publicly that they’re for research,” Felgenhauer told CNBC. “We’re arguing it’s not going to be some sort of one big, bad climate event that makes us all suddenly adopt or be open to solar geoengineering — there will be more of a gradual process.”

    A man waits for customers displaying fans at his store amid rising temperatures in New Delhi on May 27, 2020. – India is wilting under a heatwave, with the temperature in places reaching 50 degrees Celsius (122 degrees Fahrenheit) and the capital enduring its hottest May day in nearly two decades.

    Jewel Samad | Afp | Getty Images

    Research it now or be caught off guard later?

    Some environmentalists consider sunlight relfection a “moral hazard,” because it offers a relatively easy and inexpensive alternative to doing the work of reducing emissions.

    One experiment to study stratospheric aerosols by the Keutsch Group at Harvard was called off in 2021 due to opposition. The experiment would “threaten the reputation and credibility of the climate leadership Sweden wants and must pursue as the only way to deal effectively with the climate crisis: powerful measures for a rapid and just transition to zero emission societies, 100% renewable energy and shutdown of the fossil fuel industry,” an open letter from opponents said.

    But proponents insist that researching sunlight-modification technologies should not preclude emissions-reduction work.

    “Even the people like me who think it’s very important to do research on these things and to develop the capabilities all agree that the urgent top priority for managing climate change is cutting emissions,” Parson told CNBC.

    Keith of Harvard agreed, saying that “we learn more and develop better mechanism[s] for governance.”

    Doing research is also important because many onlookers expect that some country, facing an unprecedented climate disaster, will act unilaterally to will try some version of sunlight modification anyway — even if it hasn’t been carefully studied.

    “In my opinion, it’s more than 90 percent likely that within the next 20 years, some major nation wants to do this,” Parson said.

    Sacca put the odds even higher.

    “The odds are 100 percent that some country pursues sunlight reflection, particularly in the wake of seeing millions of their citizens die from extreme weather,” Sacca told CNBC. “The world will not stand idly by and leaders will feel compelled to take action. Our only hope is that by doing the research now, and in public, the world can collaboratively understand the upsides and best methods for any future project.”  

    Correction: The Climate Overshoot Commission has not issued a formal statement of support for sunlight reflection.

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  • China is no longer just any emerging market — it has become its own beast

    China is no longer just any emerging market — it has become its own beast

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    A worker disinfects the Sanlitun shopping complex in Beijing in June as stores in the area were closed for three days after a Covid outbreak. There’s greater caution on China this year, as stringent Covid controls drag on and as growth takes a backseat. Analysts note longer-term trends of China’s reduced dependency on foreign investment and intellectual property.

    Kevin Frayer | Getty Images News | Getty Images

    BEIJING — China is no longer just another emerging market play. Now, the country is becoming its own beast — with all the risks and rewards that come with being a world power.

    There’s greater caution on China this year, as stringent Covid controls drag on and as growth takes a backseat. Analysts note longer-term trends of China’s reduced dependency on foreign investment and intellectual property.

    That’s all on top of Beijing’s crackdown on the internet tech sector and real estate developers in the last two years.

    Foreign investors are reacting. The share of Chinese stocks in the benchmark MSCI emerging markets index fell from a peak of 43.2% in October 2020 to 32% in July 2022, Morgan Stanley analysts pointed out.

    In the meantime, exchange-traded funds tracking emerging markets — but not China — saw assets under management surge from $247 million at the end of 2020 to $2.85 billion as of July 2022, the report said.

    WisdomTree last month became the latest firm to launch an emerging markets ex-China fund, following Goldman Sachs earlier in the year.

    This mood has shifted from China being one of the most attractive places to invest in the world … to the fact that the rivalry [with the U.S.] has introduced an uncertainty element and quite a substantial risk element

    Ketan Patel

    co-founder and CEO of Greater Pacific Capital

    “We definitely hear clients [saying], maybe given the current political environment, maybe dial[ing] down China could be a better strategy,” said Liqian Ren, leader of quantitative investment at WisdomTree.

    So far, she said, the number of clients excluding China isn’t “overwhelming,” and by metrics such as per capita GDP the country remains an emerging market.

    The category includes Brazil and South Korea and refers to economies with generally faster growth than developed economies such as the U.S. — and more risk.

    Rivalry with the U.S.

    But what Ren and others say is different for China now is that the U.S. has named it a strategic competitor. Most recently, the Biden administration further restricted China’s ability to use U.S. tech for developing advanced semiconductors.

    “This mood has shifted from China being one of the most attractive places to invest in the world and how much certainty there was perceived to be in policy, to the fact that the rivalry [with the U.S.] has introduced an uncertainty element and quite a substantial risk element,” Ketan Patel, co-founder and CEO of Greater Pacific Capital, said last month.

    People aren’t going to ignore China, “but the level of excitement has changed,” said Patel, former head of Goldman Sachs’ Strategic Group.

    And rather than seeing China as a developing country — which it is especially in rural areas — foreign investors would see it more “as a great power opportunity,” Patel said. He also chairs the Force for Good initiative, which promotes investment as a way to achieve sustainable development worldwide.

    Beijing is also presenting itself as a great power.

    Chinese President Xi Jinping has pushed the country not only to be self-sufficient in tech and energy, but lead other nations with alternative — if not competing — systems for finance, navigation and international relations. Those include a Global Development Initiative and Global Security Initiative.

    Within China, the government under Xi has increased its role in the economy.

    The share of state-owned enterprises in the top 10 Chinese companies rose by 3.6 percentage points between 2020 and 2021, despite an overall decline of 10 percentage points over the last decade, Rhodium Group said. In all, the report said those state businesses account for more than 40% of the top 10 — well above the open-economy average of 2%.

    “We also cannot accurately measure informal barriers to market competition—for example, informal discrimination against foreign and private companies, industrial policies, or the presence of Communist Party committees,” the report said.

    New party office rules

    The growing role of the Chinese Communist Party under Xi is now a greater concern for finance — an industry in which China has recently allowed more foreign ownership.

    Chinese law has long required internal party committees — for companies with at least three party members. However, enforcement began to pick up only after 2012, according to the Center for Strategic and International Studies.

    An internal party committee, or office, gathers together a company’s employees who are members of the Communist Party of China. They may then hold events such as studying “Xi thought.”

    New rules from the China Securities Regulatory Commission that took effect in June say securities investment funds in China need to set up an internal party office.

    When asked about the new rules, the securities regulator said they are in line with corporate governance principles and Chinese law, and there’s “no need to worry at all” about data security, according to a CNBC translation of the Chinese.

    Read more about China from CNBC Pro

    It’s unclear what role such party offices play in business operations, said Daniel Celeghin earlier this year, when he was managing partner at consulting firm Indefi.

    But before the pandemic, he said, at least one large Western asset manager decided not to set up a subsidiary in China because once they learned establishing a party cell would be required, “that overcame all of the potential commercial gains.”

    China’s appeal

    Funds such as a few from WisdomTree offer ways to invest in emerging markets without putting investors’ money into state-owned enterprises.

    In China, the market capitalization of non-state-owned companies has grown to about 47%, up from 35% a decade ago, according to Louis Luo, investment director of multi-asset at Abrdn.

    The upcoming Chinese Communist Party congress will be more of a “confirmation of what’s been in place,” Luo said, adding that he expects a return of some policies that are more market-friendly. Sectors he’s betting on for the long term include consumption, green tech and wealth management.

    Even with slower growth, China’s future attractiveness may lie in just offering an alternative to investing in other countries.

    Global markets have been roiled this year by the U.S. Federal Reserve and other central banks’ attempts to curb inflation by aggressively hiking interest rates. But the People’s Bank of China has been going in the opposite direction.

    A fundamental difference between emerging markets and developed ones is how independently they can make their monetary policy from the United States, Luo said. “From that point of view, I think China stands up.”

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  • Nick Clegg, Meta Execs Outed As ‘John Doe’ in OnlyFans Lawsuit

    Nick Clegg, Meta Execs Outed As ‘John Doe’ in OnlyFans Lawsuit

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    In a motion ‘inadvertently’ filed on Tuesday, it was revealed that Nick Clegg — Meta’s president of global affairs and former deputy prime minister of the UK — is one of the executives named in an ongoing lawsuit that contends Meta and OnlyFans were conspiring to de-platform competing creators.


    PATRICK T. FALLON I Getty Images

    Nick Clegg speaking in Los Angeles, California in June 2022.

    Lawyers for OnlyFan’s parent company, Fenix International, were the ones who had filed the motion by accident in California’s Northern District Court. Gizmodo first reported the news.

    Previously “names of certain third parties who have legitimate privacy interests” were accidentally not redacted, Fenix’s attorneys said.

    They quickly moved to file a (successful) motion to re-seal it, according to Law360.

    Fenix’s motion was to dismiss an ongoing lawsuit between three adult content creators against Meta and OnlyFans.

    Three women, Dawn Dangaard, Kelly Gilbert, and Jennifer Allbaugh, claim the companies conspired to make their content less visible — as well as a heap of other online creators who work with paid platforms besides OnlyFans.

    The women claimed people “with high positions at Meta” took bribes from OnlyFans to lower engagement on posts from creators using platforms of OnlyFans competitors.

    The accidentally-filed motion revealed those people to be: Clegg, Nicola Mendelsohn, the VP of Global Business Group at Meta, and Cristian Perrella. Perrella appears to be “Cristian P,” a safety director for Meta based in London on LinkedIn, per Law360.

    Previously, the named Meta executives had been referred to as John Doe.

    Instagram, Facebook, Meta, Fenix, and Fenix’s owner are named as defendants in the suit, but Clegg, Mendelsohn, and Perrella are not.

    Often, adult entertainers and content creators of all stripes garner large audiences through mainstream social media platforms like TikTok or Instagram. Then, they funnel as many fans as they can into platforms that pay creators directly (and more lucratively), like Patreon or OnlyFans.

    The women have claimed the companies flagged their accounts as containing terrorist-related content, resulting in a decline in engagement, also known as “shadowbanning,” a concept people claim happens when a social media company doesn’t outright ban or suspend your account but makes your content less visible.

    The women have cited anonymous sources as evidence for this claim.

    They first sued in February but had to re-file in September after the judge said the lawsuit was not detailed enough, per Law360.

    Last week, attorneys for the women introduced new evidence, claiming an anonymous tip showed the Meta employees received payments via wire transfer from a representative of OnlyFans, according to Gizmodo. Those documents are still sealed.

    Meta told Gizmodo the accusations are “baseless” and “lack facts, merit, or anything that would make them plausible.”

    In an exchange on September 8, Judge on the case William Alsup asked an OnlyFans lawyer to deny the women’s allegations, which he did not.

    Currently, OnlyFans and Meta are trying to get the complaint dismissed.

    Lawyers for Meta have also argued that even if they were true, the company would not be liable because the employees were not acting on behalf of the company, Gizmodo noted.

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  • Tether, world’s biggest stablecoin, cuts its commercial paper holdings to zero

    Tether, world’s biggest stablecoin, cuts its commercial paper holdings to zero

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    Tether, the world’s largest stablecoin, has slashed back its commercial paper holdings to zero, replacing them with U.S. Treasury bills instead, according to a blog post. The popular U.S.-dollar-pegged cryptocurrency said the move is part of tether’s “ongoing efforts to increase transparency” and back its tokens with “the most secure reserves in the market” — in the ultimate hope of ensuring investor protection.

    There are now about 68.4 billion tether tokens in circulation, according to data from CoinMarketCapup from 2 billion three years ago. The cryptocurrency has a market capitalization of $68.4 billion.

    “Tether has led the industry in transparency releasing attestations every three months, constantly reviewing the make up of its reserves,” continued the statement.

    Commercial paper is a form of short-term, unsecured debt issued by companies, and it is considered to be less reliable than Treasury bills. In October, Tether’s Chief Technology Officer, Paolo Ardoino, tweeted that 58.1% of its assets were in T-bills, up from 43.5% in June. It is unclear where that percentage currently stands, but Ardoino did write in a post on Thursday that Tether was able to pay $7 billion, or 10% of its reserves, in 48 hours.

    “Ask your bank or other stablecoins if they can do that, in same time frame of course,” he wrote.

    Thursday’s statement went on to note that zeroing out the balance of its commercial paper holdings was also meant to be a step toward “greater transparency and trust, not only for tether but for the entire stablecoin industry.”

    The stablecoin corner of the crypto market has certainly had trust issues in the last year.

    Last year, tether had to pay a multimillion dollar fine following a legal battle with the New York attorney general’s office over concerns related to the viability of its reserves, and in May, the collapse of terraUSD (UST), which was once one of the most popular stablecoin projects, cost investors tens of billions of dollars.

    The fall of UST resulted in a falling domino effect across the wider crypto ecosystem. Part of the fallout involved tether temporarily losing its dollar peg and dipping as low as 95 cents.

    But well before UST’s dramatic implosion, Tether — the company behind the stablecoin of the same name — was facing serious regulatory backlash over its reserves.

    Most stablecoins are backed by fiat reserves, the idea being that they have enough collateral in case users decide to withdraw their funds. (UST was among a new breed of “algorithmic” stablecoins that attempt to base their dollar peg on code.)

    Previously, Tether claimed all its tokens were backed one-to-one by dollars stored in a bank. However, after a settlement with the New York attorney general, the company revealed it relied on a range of other assets, including commercial paper, to support its token.

    In April, Ardoino told CNBC that the company was well equipped to deal with mass redemptions, but New York Attorney General Letitia James’ office previously alleged that Tether sometimes held no reserves to back its cryptocurrency’s dollar peg. It said that, from mid-2017, the company had no access to banking and misled clients about liquidity issues.

    “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie,” she added. Tether said in a statement on its website that contrary to speculation, “after two and half years there was no finding that Tether ever issued tethers without backing, or to manipulate crypto prices.”

    Critics have also raised fears that tether tokens were used to manipulate bitcoin prices, a claim Tether has repeatedly denied.

    While not yet large enough to cause disruption in U.S. money markets, tether could eventually reach a size where its owning of U.S. Treasuries becomes “really scary,” Carol Alexander, a professor of finance at Sussex University, said.

    “Suppose you go down the line and, instead of $80 billion, we’ve got $200 billion, and most of that is in liquid U.S. government securities,” she said. “Then a crash in tether would have a substantial impact on U.S. money markets and would just tip the whole world into recession.”

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  • Biden administration asked Saudi Arabia to postpone OPEC decision by a month, Saudis say

    Biden administration asked Saudi Arabia to postpone OPEC decision by a month, Saudis say

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    US President Joe Biden being welcomed by Saudi Arabian Crown Prince Mohammed bin Salman at Alsalam Royal Palace in Jeddah, Saudi Arabia on July 15, 2022.

    Anadolu Agency | Anadolu Agency | Getty Images

    DUBAI, United Arab Emirates — The Biden administration asked Saudi Arabia, the de-facto leader of oil producer group OPEC, to delay its decision on oil output by a month, the kingdom said in a statement.

    The Saudis declined, and in early October OPEC+ — which includes non-OPEC oil exporters like Russia — announced its largest supply cut since 2020, to the tune of 2 million barrels per day starting from November. That means tighter supplies and higher prices at a time of already high inflation and worries of a global recession, which angered U.S. lawmakers who are now calling for a “reevaluation” of relations with the Saudi kingdom.

    Notably, the White House’s request would have delayed the decision until after the U.S. midterm elections.

    In a statement dated Wednesday, the Saudi government defended its move and said all OPEC decisions are based on economic forecasts and needs.

    “The Government of the Kingdom clarified through its continuous consultation with the US Administration that all economic analyses indicate that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences,” the statement read.

    Responding to the Saudi claims, Pentagon spokesman John Kirby reframed the exchange and accused the kingdom of aiding Russia’s revenues and hampering the impact of Western sanctions on Moscow for its war in Ukraine.

    “In recent weeks, the Saudis conveyed to us – privately and publicly – their intention to reduce oil production, which they knew would increase Russian revenues and blunt the effectiveness of sanctions. That is the wrong direction,” Kirby said. “We presented Saudi Arabia with analysis to show that there was no market basis to cut production targets, and that they could easily wait for the next OPEC meeting to see how things developed.”

    Kirby said, without giving examples, that other OPEC members opposed Saudi Arabia’s move, and reiterated the Biden administration’s vow to reexamine its relationship with Riyadh.

    “Other OPEC nations communicated to us privately that they also disagreed with the Saudi decision, but felt coerced to support Saudi’s direction,” he said. “As the President has said, we are reevaluating our relationship with Saudi Arabia in light of these actions, and will continue to look for signs about where they stand in combatting Russian aggression.”

    On Tuesday, President Joe Biden said that there would be “consequences” for Saudi Arabia’s oil production cut, which the kingdom is carrying out in coordination with other OPEC members and non-OPEC allies like Russia. Many in Washington saw this as a snub and a blatant display of siding with Moscow.

    U.S. lawmakers have urged the cutting of military sales to Saudi Arabia, America’s top weapons buyer, and are encouraging the passing of anti-trust legislation that would go after OPEC.

    Riyadh rejected the accusations of making any politically-motivated moves.

    “The Government of the Kingdom of Saudi Arabia would first like to express its total rejection of these statements that are not based on facts, and which are based on portraying the OPEC+ decision out of its purely economic context. This decision was taken unanimously by all member states of the OPEC+ group,” the Saudi government statement said.

    “The Kingdom affirms that the outcomes of the OPEC+ meetings are adopted through consensus among member states, and that they are not based on the unilateral decision by a single country. These outcomes are based purely on economic considerations that take into account maintaining balance of supply and demand in the oil markets.”

    U.S. senator calls OPEC+ plans to cut oil production a 'mistake'

    The developments spotlight the growing tensions in the nearly 80-year-old U.S.-Saudi relationship, as both parties suggest the other is failing to uphold their end of the bargain in a friendship broadly based on the principle of energy for security.

    They also highlight how little control Washington has on Saudi and OPEC energy policy.

    “The relationship between Saudi Arabia and the US has soured after OPEC+ opted to cut oil quotas – Saudi Arabia is clearly leaning away from the US orbit,” James Swanston, Middle East and North Africa economist at London-based consultancy Capital Economics, said in a client note Thursday.

    Still, the Saudi government stressed the continued importance of its relationship with the U.S.

    “The Kingdom affirms that it [views] its relationship with the United States of America as a strategic one that serves the common interests of both countries,” it said in its statement.

    “The Kingdom also stresses the importance of building on the solid pillars upon which the Saudi-US relationship had stood over the past eight decades. These pillars include mutual respect, enhancing common interests, actively contributing to preserve regional and international peace and security, countering terrorism and extremism, and achieving prosperity for the peoples of the region.”

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