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Tag: Consumer products and services

  • Japan’s troubled Toshiba to delist after takeover by Japanese consortium succeeds

    Japan’s troubled Toshiba to delist after takeover by Japanese consortium succeeds

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    TOKYO — A 2 trillion yen ($14 billion) tender offer for troubled electronics and energy giant Toshiba by a Japanese consortium has been completed, clearing the way for it to be delisted, the company said Thursday.

    In the tender offer, announced last month and ended Wednesday, the number of shares purchased exceeded the minimum needed, at 78.65%, it said.

    The switch to Toshiba’s new parent company and largest shareholder, called TBJH Inc. will take place on Sept. 27. The move still needs shareholders’ approval, and a meeting has been set for November, according to Toshiba.

    Toshiba will then delist from the Tokyo Stock Exchange within about a month. That will end its more than seven-decade history as a listed company. The purchase price was at 4,620 yen ($31).

    “Toshiba Group will now take a major step toward a new future with a new shareholder,” said its chief executive, Taro Shimada.

    Even after privatization, the company will “do the right thing” to try boost its value, he added.

    A sprawling accounting scandal, which surfaced in 2015 and involved books being doctored for years added to woes related to Toshiba’s nuclear energy business. It faces the daunting and costly task of decommissioning the nuclear power plant in Fukushima, northern Japan, where a tsunami set off three meltdowns in 2011.

    A leading brand behind rice cookers, TVs, laptops and other products once symbolic of Japan’s technological prowess, Toshiba had billed the takeover led by the consortium of Japanese banks and major companies, known as Japan Industrial Partners, as its last chance for a turnaround. Toshiba’s board accepted the deal in March.

    Toshiba has spun off parts of its operations, including its prized flash-memory business, now known as Kioxia. Toshiba is a major stakeholder in Kioxia.

    Overseas activist investors, who own a significant number of Toshiba’s shares, had initially expressed some dissatisfaction about the bid.

    Analysts say its unclear whether Toshiba can return to profitability, even with the delisting.

    Toshiba’s shares were up 0.2% at 4,604 yen ($31) Thursday in Tokyo.

    The company racked up 25 billion yen ($169 million) of red ink for the April-June quarter on 704 billion yen ($5 billion) in sales, down nearly 5% from the year before.

    The decommissioning effort at the Fukushima Dai-ichi nuclear plant is expected to take decades.

    Toshiba’s U.S. nuclear arm Westinghouse filed for bankruptcy in 2017 after years of deep losses as safety costs soared.

    ___

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • Troubled Toshiba announces buyout offer led by Japan businesses

    Troubled Toshiba announces buyout offer led by Japan businesses

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    TOKYO — Toshiba announced a 2 trillion yen ($14 billion) tender offer on Monday in a move that would take it private, as the scandal-tarnished Japanese electronics and energy giant seeks to turn itself around.

    The tender offer led by a buyout fund of major Japanese banks and companies called Japan Industrial Partners starts Tuesday and is priced at 4,620 yen ($32) a share.

    Chairperson Akihiro Watanabe asked shareholders to back the proposal, saying it is the only option for Toshiba Corp. to return to its former strength.

    “This move for Toshiba is great not only for Japan but also for the world,” he said. “I have faith in the revival of Toshiba.”

    Tokyo-based Toshiba also reported a 25 billion yen ($176 million) loss for the April-June quarter on 704 billion yen ($5 billion) in sales, down nearly 5% from the previous year.

    It did not give a full fiscal year profit projection, citing uncertainties in its computer chip business.

    If the proposal succeeds, it will be a major step in Toshiba’s yearslong turnaround effort, allowing it to delist from the Tokyo Stock Exchange.

    At least two-thirds of shareholders must offer their stakes for the bid to succeed. Overseas activist investors own a significant number of Toshiba’s shares, and some have expressed dissatisfaction about the bid.

    The Toshiba board accepted the deal in March.

    Toshiba closed at 4,584 yen ($32) a share Monday.

    The buyout would keep Toshiba in an alliance with Japanese partners. Japan Industrial Partners, set up in 2002 to restructure Japanese companies, has also invested in other Japanese brands like Sony, Hitachi and Olympus.

    Toshiba, a major manufacturer in Japan’s nuclear industry, was hit by the March 2011 tsunami that sent three reactors into meltdowns at Fukushima in northeastern Japan.

    Toshiba is involved in the decommissioning effort at Fukushima Dai-ichi, which is expected to take decades. Its U.S. nuclear arm Westinghouse filed for bankruptcy in 2017 after years of deep losses as safety costs soared.

    The Toshiba brand, once prized for household appliances, laptops, batteries and computer chips, became the target of overseas activist shareholders.

    Its image was also badly tarnished by a sprawling accounting scandal in 2015 involving books that were doctored for years.

    Toshiba stressed the latest offer was “fair and reasonable” and made management sense, with companies that had longtime deep business relations with Toshiba offering to invest.

    Chief Executive Taro Shimada said it would bring stability to Toshiba, which he noted will mark its 150th anniversary in a couple of years.

    He pleaded with stakeholders to support the offer.

    “The value at our company comes from creating what didn’t exist in the world before,” he told reporters.

    ___

    Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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  • US imposes new sanctions aimed at choking off Russia’s access to battlefield supplies and revenue

    US imposes new sanctions aimed at choking off Russia’s access to battlefield supplies and revenue

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    The U.S. has imposed sanctions on roughly 120 firms and people in an effort to choke off Moscow’s access to products, money and financial channels that support its continued invasion of Ukraine

    ByFATIMA HUSSEIN Associated Press

    In this image provided by the Ukrainian Emergency Service, emergency services work at a scene of a destroyed residential area after a Russian attack in Mykolaiv, Ukraine, Thursday, July 20, 2023. (Ukrainian Emergency Service via AP)

    The Associated Press

    WASHINGTON — The U.S. on Thursday imposed sanctions on roughly 120 firms and people from Russia to the United Arab Emirates to Kyrgyzstan in an effort to choke off Moscow’s access to products, money and financial channels that support its invasion of Ukraine.

    The sanctions imposed by the Treasury and State departments target dozens of Russian mining, technology and munitions firms and commercial banks. In addition, a group of Kyrgyzstan-based electronics firms and its leadership were targeted as exporters of components and other technology to Russia.

    A UAE-based engineering company that sent dozens of shipments of electronics to Russia was also sanctioned.

    The latest sanctions build on those imposed on Russia when the U.S. and other Group of Seven nations rolled out a wave of global actions during a Japan summit in May.

    “Since Russia launched its full scale invasion of Ukraine, the United States, working with our allies and partners, has taken unprecedented steps to impose costs on Russia and promote accountability for the individuals and entities who support its illegal war,” U.S. Secretary of State Antony Blinken said in a statement.

    “We will continue to stand with Ukraine for as long as it takes,” he said.

    After the invasion’s one-year anniversary in February, U.S. officials said Russia’s metals and mining sector would be a focus of future sanctions actions, as well as reducing Russia’s energy revenues through the imposition of a price cap on Russian oil.

    Deputy Secretary of the Treasury Wally Adeyemo said Thursday’s actions represent “another step in our efforts to constrain Russia’s military capabilities, its access to battlefield supplies, and its economic bottom line.”

    “As long as Russia continues to wage its unprovoked and brutal war against Ukraine, we will impose sanctions to deprive Russia of the technology it needs and disrupt the Russian arms industry’s ability to resupply,” Adeyemo said in a statement.

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  • Kimberly Palmer: Creative ways to cut your energy costs this summer

    Kimberly Palmer: Creative ways to cut your energy costs this summer

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    Blasting the air conditioning to counteract stifling heat can provide much-needed relief this summer, but the utility bills that follow might not be as pleasant. According to the Bureau of Labor Statistics, the price of electricity has been steadily climbing over the past two years.

    “Most U.S. households will continue to pay high costs for energy throughout the summer because of high energy prices and the anticipated hot temperatures,” says Courtney Klosterman, home insights expert at insurer Hippo.

    The good news is you might have more control over your energy usage than you think. Paula Glover, president of the Alliance to Save Energy, a nonprofit that advocates for energy efficiency policy, estimates that based on numbers from the Energy Department, consumers could save 10% to 20% a year on energy bills just by shifting habits and making some energy-efficient investments. But, she adds, “You have to be diligent.”

    Here are five steps you can follow to lower your energy bill this summer:

    TAKE A BASELINE

    Before making any changes, it’s helpful to examine how much energy you currently use, says Angie Hicks, co-founder of Angi, a website that provides information on home services. Hiring a professional to give your home an energy audit typically costs between $200 and $700 and gives you helpful information about where your home might be leaking, she adds. You can find one through local home service provider listings, and some utilities offer the service for free.

    In certain cases, electronics themselves might be leaking, says Ethan O’Donnell, digital editor of FamilyHandyman.com, a website about home improvement projects. Televisions, appliances and all kinds of other electronics can use energy even when they are turned off, he says. A tool called an electricity usage monitor, which can be found for under $15, helps determine exactly how much.

    O’Donnell discovered that his lamp, appliances and phone chargers were using more electricity than he realized even when powered off, so he made an effort to unplug them when possible and estimates he saves at least $50 a month from those changes.

    ESTABLISH EFFICIENT HABITS

    Simple changes like adjusting your thermostat, turning lights off when you leave the room and keeping windows and doors shut when the air conditioning is on can go a long way, Glover says. Installing a smart thermostat, which automatically adjusts the temperature based on time, your habits and the season, can also help, she adds.

    Hicks suggests leaving window coverings closed during the day to help keep the sun’s heat out of your home and getting a seasonal tuneup to your air-conditioning system to make sure it’s working efficiently. Changing your air filter monthly or quarterly also helps it run better, she adds.

    MAKE SMALL UPGRADES

    Small home improvement projects, such as adding or replacing weather stripping that seals leaks around doors and windows, can significantly reduce your energy consumption, Hicks says. “Walk around your house with a lit candle and if the flame flickers, that’s where drafts are coming in. That’s a good candidate for weather stripping,” she says.

    Another simple job involves swapping out incandescent bulbs for LED light bulbs, which use at least 75% less energy, according to the Energy Department. “It seems like nothing but has an enormous impact when we do it collectively,” Glover says.

    UPDATE YOUR APPLIANCES

    While purchasing new appliances can be expensive, the investment can pay off in energy savings, especially when you select products with the Energy Star certification, a program run by the Environmental Protection Agency. “If you have an old appliance and you can afford to upgrade to something energy-efficient, do that,” Glover says, but notes that you should also prioritize other home updates such as better insulation.

    TACKLE HOME IMPROVEMENT PROJECTS

    According to Angi’s State of Home Spending in 2022 survey, 29% of homeowners say they plan to add solar panels to their home within the next five years. Updating the heating, ventilating and air conditioning system, or HVAC, was another popular choice (23%). Those kinds of big investments can pay off over the long run, says Hicks, who adds that federal income tax credits are available to help offset some of those costs.

    Installing doors as a barrier to different zones in the house can help improve efficiency by letting you control what gets warm and what stays cool, says Jonathan Flynn, a senior building analyst with Home Energy Consultants in Pleasant Valley, New York, and a certified Home Energy Rating System rater. “One of the big flaws in most two-story homes is that there is a stairway that leads up and no door at the top or bottom,” he says.

    To prevent that energy leakage, Flynn installed a sliding door at the bottom of the stairs in his own home, but he recognizes that doing so might not be practical or desired by all homeowners with open floor plans. Still, he encourages homeowners to at least consider making these kinds of changes, even if they aren’t currently popular.

    After all, he adds: “Energy efficiency work in your home is one of the few investments you can make that will actually pay you back.”

    _________________________________

    This column was provided to The Associated Press by the personal finance website NerdWallet. Kimberly Palmer is a personal finance expert at NerdWallet and the author of “Smart Mom, Rich Mom.” Email: kpalmer@nerdwallet.com. Twitter: @KimberlyPalmer.

    RELATED LINK:

    NerdWallet: How to Lower Your Bills: 38 Ways to Save https://bit.ly/nerdwallet-how-to-lower-your-bills

    METHODOLOGY

    The State of Home Spending in 2022 survey was conducted by Angi on Oct. 21, 2021. It surveyed 5,000 consumers representative of the general population.

    Angi The State of Home Spending in 2022 https://research.angi.com/research/reports/spending/

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  • Amazon, Snap fall; Intel, Mondelez rise

    Amazon, Snap fall; Intel, Mondelez rise

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    Stocks that traded heavily or had substantial price changes Friday: Amazon, Snap fall; Intel, Mondelez rise

    NEW YORK — Stocks that traded heavily or had substantial price changes Friday:

    Amazon.com Inc., down $4.37 to $105.45.

    The retail giant reported strong financial results, but growth for its cloud computing unit continued to slow.

    T-Mobile US Inc., down $6.04 to $143.90.

    The wireless carrier’s first-quarter revenue fell short of Wall Street forecasts.

    Intel Corp., up $1.20 to $31.06.

    The world’s largest chipmaker beat analysts’ first-quarter financial forecasts.

    Mondelez International Inc., up $2.90 to $76.72.

    The maker of Oreo cookies, Cadbury chocolate and Trident reported strong first-quarter earnings.

    First Solar Inc., down $18.25 to $182.58.

    The solar technology company reported disappointing first-quarter financial results.

    Snap Inc., down $1.79 to $8.71.

    The company behind Snapchat reported weak first-quarter revenue.

    Colgate-Palmolive Co., up $1.87 to $79.80.

    The maker of Colgate toothpaste and other consumer products reported strong first-quarter earnings.

    Skechers USA Inc., up $3.32 to $53.19.

    The shoe company raised its profit and revenue forecasts for the year.

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  • Stock market today: Stocks close quiet week with small gains

    Stock market today: Stocks close quiet week with small gains

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    Stocks capped a listless day of trading Friday with slight gains for the major stock indexes, closing out a quiet week on Wall Street highlighted by a batch of mostly mixed corporate earnings reports.

    The S&P 500, Dow Jones Industrial Average and Nasdaq composite all gained 0.1% after drifting between small gains and losses for most of the day. The indexes each posted a slight loss for the week.

    Health care companies and a range of consumer product makers gained ground, tempering losses in banks, technology stocks and elsewhere. Truist Financial and KeyCorp, two of the larger regional banks, were among the biggest decliners in the S&P 500. Truist fell 6% and KeyCorp ended 3.7% lower.

    Bond yields held relatively steady. The yield on the 10-year Treasury, which influences mortgage rates and other loans, rose to 3.56% from 3.54% late Thursday.

    Trading was muted as investors focused on the latest corporate earnings reports and forecasts in a bid to get a better sense of how companies are handling high inflation, a slowing economy and fears about a recession.

    “You have a market that’s in waiting mode,” said Quincy Krosby, chief global strategist for LPL Financial. “It’s waiting for a sense of what we’re going to hear from companies.”

    Investors reviewed a handful of earnings reports Friday. Hospital operator HCA Healthcare rose 3.9% after the company topped estimates for the first quarter and raised its full-year profit forecast. Procter & Gamble, the maker of Charmin toilet paper and other iconic consumer products, rose 3.5% after beating estimates thanks to price increases.

    Information technology services company PC Connection fell 4.9% after giving investors a disappointing financial update. Regional bank Regions Financial fell 2.8% after reporting discouraging earnings.

    Companies have so far been beating Wall Street forecasts this earnings period. Analysts had forecast this would mark the sharpest drop in S&P 500 earnings per share since the pandemic stunned the economy in 2020. Analysts polled by FactSet expect profits to contract by 6.3% for companies in the S&P 500.

    Several big companies are on deck to report earnings next week, giving investors another heavy few days of corporate updates. Coca-Cola reports its latest results on Monday, followed by McDonald’s and Google’s parent company, Alphabet, on Tuesday.

    Airplane maker Boeing and Meta Platforms, Facebook’s parent, will report results on Wednesday. Investors will get more details on the health of the airline industry when American Airlines and Southwest Airlines report financial results on Thursday, along with internet retail giant Amazon.

    The busy week of earnings reports could help provide more direction for investors as recession worries linger, Krosby said.

    “There’s a tug of war between what the economic data is saying and the message from equity markets,” she said.

    The latest earnings come as investors worry about the potential for a recession amid the Federal Reserve’s fight against inflation. The central bank aggressively raised interest rates through 2022 and into 2023. The rate hikes have weighed on economic growth and while inflation has eased it remains high and is still squeezing consumers.

    The Fed will meet again in early May and is expected to raise its benchmark interest rate by another quarter point. Wall Street is betting that the Fed will take a break from raising interest rates after that meeting.

    The yield on the two-year Treasury, which more closely tracks expectations for the Fed, rose to 4.17% from 4.16% late Thursday.

    Wall Street is anticipating more economic data next week that could provide greater insight into inflation’s impact and the economy’s path. The reports will included consumer confidence for April, first-quarter gross domestic product and another government update on prices and inflation.

    All told, the S&P 500 rose 3.73 points to 4,133.52. The Dow added 22.34 points to close at 33,808.96. The Nasdaq rose 12.90 points to 12,072.46. Decliners held a slight edge over gainers on the New York Stock Exchange.

    Markets in Europe also ended with small gains Friday, while exchanges in Asia declined overnight.

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  • Ben & Jerry’s supports Vermont workers’ unionization drive

    Ben & Jerry’s supports Vermont workers’ unionization drive

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    BURLINGTON, Vt. — Global ice cream maker Ben & Jerry’s said Tuesday it supports a plan to unionize by the workers at a retail shop in the same city where the brand, known as much for its social activism as its products, was founded.

    Ben & Jerry’s said, in a statement, it shares “the goal of advancing justice, both inside and outside our company.” The ice cream manufacturer was founded in a former gas station a short distance from its retail shop in downtown Burlington, Vermont.

    “That’s why we recognize and support the rights of all workers to unionize and collectively bargain,” the company said. “Ben & Jerry’s is committed to the goal of operating our company in a way that is fair, inclusive, and equitable, while being a dynamic and fun place for all workers.”

    About 40 employees at the Burlington shop said Monday they had formed an organizing committee and petitioned the National Labor Relations Board for an election. They said they have the support of the upstate New York & Vermont chapter of Workers United , the union that started the Starbucks unionization campaign in Buffalo, New York.

    “I think the statement is a great sign,” Workers United organizing director Jaz Brisack, who covers upstate New York and Vermont, said Tuesday after seeing Ben & Jerry’s statement.

    Brisack said they were hopeful Ben & Jerry’s would partner with the workers in forming the union.

    A union organizer who works at the Ben & Jerry’s store in downtown Burlington, Vermont, said most of the workers are local college or high school students and don’t know how to advocate for themselves and she felt they didn’t realize they were being exploited.

    “I wouldn’t say that was necessarily (the) intention of management by any means, but it’s definitely a consequence of just working with a younger staff and not knowing how to advocate for them appropriately,” said Rebeka Mendelsohn, 22, a senior at the University of Vermont.

    The Acton, Massachusetts, native likes working at the ice cream shop near where Ben & Jerry’s was founded. One issue she wants addressed is training to help the staff cope with customers’ mental health crises and respond to other critical incidents when managers aren’t around.

    The so-called scoopers submitted the petition needed to hold a union election to the National Labor Relations Board on Monday. Brisack hoped the election would be held soon.

    Mendelsohn said she would support union efforts at other Ben & Jerry’s locations, especially the factory and retail shop in Waterbury, Vermont.

    “I would love to see all Vermont Ben and Jerry’s unionized, if not far beyond that,” she said. “I definitely hope that this can be a catalyst event because I think it’s a really logical next step and being like a socially conscious company.”

    The company says its products are distributed in 35 countries.

    Founded in 1978, but currently owned by consumer goods conglomerate Unilever, Ben & Jerry’s has not shied away from social causes. While many businesses tread lightly in politics for fear of alienating customers, the ice cream maker, which sells its products across the world, has taken the opposite approach, often espousing progressive causes.

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  • Holiday sales up 7.6% despite the squeeze of inflation

    Holiday sales up 7.6% despite the squeeze of inflation

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    NEW YORK — Holiday sales rose this year as American spending remained resilient during the critical shopping season despite surging prices on everything from food to rent, according to one measure.

    Holiday sales rose 7.6, a slower pace than the 8.5% increase from a year earlier when shoppers began spending the money they had saved during the early part of the pandemic, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards.

    Mastercard SpendingPulse had expected a 7.1% increase. The data released Monday excludes the automotive industry and is not adjusted for inflation, which has eased somewhat but remains painfully high.

    U.S. sales between Nov. 1 and Dec. 24, a period that is critical for retailers, were fueled by spending at restaurants and on clothing.

    By category, clothing rose 4.4%, while jewelry and electronics dipped roughly 5%. Online sales jumped 10.6% from a year ago and in-person spending rose 6.8%. Department stores registered a modest 1% increase over 2021.

    “This holiday retail season looked different than years past,” Steve Sadove, the former CEO and chairman at Saks and a senior advisor for Mastercard, said in a prepared statement. “Retailers discounted heavily, but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic.”

    Some of the increase reflected the impact of higher prices across the board.

    Consumer spending accounts for nearly 70% of U.S. economic activity, and Americans have remained resilient ever since inflation first spiked almost 18 months ago. Cracks have begun to show, however, as higher prices for basic necessities take up an increasingly large share of everyone’s take-home pay.

    Inflation has retreated from the four-decade high it reached this summer, but it’s still sapping the spending power of consumers. Prices rose 7.1% in November from a year ago, down from a peak of 9.1% in June.

    Overall spending has slowed from the pandemic-infused splurges and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded. Many shoppers been trading down to private label goods, which are typically less expensive than national brands. They’ve been going to cheaper stores like dollar chains and big box stores like Walmart.

    Consumers also waited for deals. Stores expected more procrastinators to hit stores in the last few days before Christmas compared with a year ago when people began shopping earlier due to a global disruption of the supply chain that created thousands of product shortages.

    “Consumers are trying to spread out their budget, and they are evaluating and shopping at different stores,” said Katie Thompson, the lead of consultancy Kearney’s Consumer Institute.

    In November, shoppers cut back sharply on retail spending compared with the previous month. Retail sales fell 0.6% from October to November after a sharp 1.3% rise the previous month, the government said in mid-December. Sales fell at furniture, electronics, and home and garden stores.

    A broader picture of how Americans spent their money arrives next month when the National Retail Federation, the nation’s largest retail trade group, comes out with its combined two-month results based on November-December sales figures from the Commerce Department.

    The trade group expects holiday sales growth will slow to a range of 6% to 8%, compared with the blistering 13.5% growth of a year ago.

    Analysts will also be dissecting fourth-quarter financial results from major retailers in February.

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  • Holiday sales up 7.6% despite the squeeze of inflation

    Holiday sales up 7.6% despite the squeeze of inflation

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    NEW YORK — Holiday sales rose this year as American spending remained resilient during the critical shopping season despite surging prices on everything from food to rent, according to one measure.

    Holiday sales rose 7.6, a slower pace than the 8.5% increase from a year earlier when shoppers began spending the money they had saved during the early part of the pandemic, according to Mastercard SpendingPulse, which tracks all kinds of payments including cash and debit cards.

    Mastercard SpendingPulse had expected a 7.1% increase. The data released Monday excludes the automotive industry and is not adjusted for inflation, which has eased somewhat but remains painfully high.

    U.S. sales between Nov. 1 and Dec. 24, a period that is critical for retailers, were fueled by spending at restaurants and on clothing.

    By category, clothing rose 4.4%, while jewelry and electronics dipped roughly 5%. Online sales jumped 10.6% from a year ago and in-person spending rose 6.8%. Department stores registered a modest 1% increase over 2021.

    “This holiday retail season looked different than years past,” Steve Sadove, the former CEO and chairman at Saks and a senior advisor for Mastercard, said in a prepared statement. “Retailers discounted heavily, but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic.”

    Some of the increase reflected the impact of higher prices across the board.

    Consumer spending accounts for nearly 70% of U.S. economic activity, and Americans have remained resilient ever since inflation first spiked almost 18 months ago. Cracks have begun to show, however, as higher prices for basic necessities take up an increasingly large share of everyone’s take-home pay.

    Inflation has retreated from the four-decade high it reached this summer, but it’s still sapping the spending power of consumers. Prices rose 7.1% in November from a year ago, down from a peak of 9.1% in June.

    Overall spending has slowed from the pandemic-infused splurges and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded. Many shoppers been trading down to private label goods, which are typically less expensive than national brands. They’ve been going to cheaper stores like dollar chains and big box stores like Walmart.

    Consumers also waited for deals. Stores expected more procrastinators to hit stores in the last few days before Christmas compared with a year ago when people began shopping earlier due to a global disruption of the supply chain that created thousands of product shortages.

    “Consumers are trying to spread out their budget, and they are evaluating and shopping at different stores,” said Katie Thompson, the lead of consultancy Kearney’s Consumer Institute.

    In November, shoppers cut back sharply on retail spending compared with the previous month. Retail sales fell 0.6% from October to November after a sharp 1.3% rise the previous month, the government said in mid-December. Sales fell at furniture, electronics, and home and garden stores.

    A broader picture of how Americans spent their money arrives next month when the National Retail Federation, the nation’s largest retail trade group, comes out with its combined two-month results based on November-December sales figures from the Commerce Department.

    The trade group expects holiday sales growth will slow to a range of 6% to 8%, compared with the blistering 13.5% growth of a year ago.

    Analysts will also be dissecting fourth-quarter financial results from major retailers in February.

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  • Microsoft strikes 10-year deal with Nintendo on Call of Duty

    Microsoft strikes 10-year deal with Nintendo on Call of Duty

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    FILE – The Activision Blizzard Booth during the Electronic Entertainment Expo in Los Angeles, June 13, 2013. The European Union has on Tuesday, Nov. 8, 2022 launched an investigation into Microsoft’s planned takeover of video game giant Activision Blizzard, fearing the $69 billion deal would distort fair competition in the market. Microsoft, maker of the Xbox gaming system, first announced the agreement to buy the California-based game publisher in January. (AP Photo/Jae C. Hong, File)

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  • California lawmakers to meet, eye big oil’s high gas prices

    California lawmakers to meet, eye big oil’s high gas prices

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    SACRAMENTO, Calif. — Furious about oil companies’ supersized profits after a summer of record-high gas prices, California Gov. Gavin Newsom on Monday will formally start his campaign to punish big producers by asking the Legislature to fine them and give the money back to drivers.

    State lawmakers will briefly return to the state Capitol on Monday to swear in new members and elect leaders for the 2023 legislative session. But this year, Newsom also has called lawmakers into a special session for the purpose of approving a penalty for oil companies when their profits pass a certain threshold.

    It’s bound to be a popular proposal with voters, who have been paying more than $6 per gallon of gasoline for much of the year. But the big question is how the measure will be received by California lawmakers, especially since the oil industry is one of the state’s top lobbyists and campaign donors.

    Adding to the uncertainty is an unusually high number of new members who will take seats in the Legislature for the first time. More than a quarter of the Legislature’s 120 members could be new, depending on the outcome of a few close races where county officials are still counting votes.

    “It’s kind of like the first day of school and you get this big ethics test about a job that you’ve never had,” said Jamie Court, president of Consumer Watchdog, an advocacy group that has partnered with the Newsom administration to back the gas proposal.

    Among the state Senate’s new members is Angelique Ashby, a Democrat who narrowly won her seat following an intense campaign. The oil industry spent hundreds of thousands of dollars on radio and TV ads supporting Ashby’s campaign, a trend noticed by critics who tried to use it against her.

    In an interview, Ashby said she hasn’t been approached lobbyists or others from the oil industry asking how she would vote on a potential penalty for oil companies. She noted the oil industry spent the money as “independent expenditures,” meaning she had no control over that spending during the campaign.

    “Campaigns are not legislation, and the campaign slogans and strategies of my opponent are a thing of the past,” said Ashby, whose district includes Sacramento. “I’m fixated on the people of Senate District 8 and I will make my decision based on what is in their best interest.”

    As of Sunday night, Newsom had not yet revealed his legislation and legislative leaders said they likely won’t begin deliberations on any proposal until January.

    But the battle has already begun. Last week, the California Energy Commission held a public hearing about why the state’s gas prices are so high. California prices spiked over the summer, but so did the rest of the country — mostly in response to a crude oil price surge after Russia’s invasion of Ukraine.

    California’s prices spiked again in October, even while the price of crude oil dropped. In the first week of October, the average price of a gallon of gas in California was $2.61 higher than the national average — the biggest gap ever. Since then, oil companies reported billions of dollars in profits.

    Regulators had hoped to question the state’s five big oil refineries: Marathon, Valero, Phillips 66, PBF Energy and Chevron. But no company officials attended the hearing, with most saying that sharing information could violate anti-trust laws.

    Newsom sought to shame those companies publicly, posting a video to his Twitter account of their empty seats during Thursday’s hearing.

    “Big oil is ripping Californians off, and the deafening silence from the industry (at the public hearing) is the latest proof that a price gouging penalty is needed to hold them accountable for profiteering at the expense of California families,” Newsom said in a news release announcing the special session.

    Catherine Reheis-Boyd, president of the Western States Petroleum Association, said the oil industry is volatile, pointing to billions of dollars in losses during the pandemic when demand for gasoline dropped sharply as many people worked from home and canceled travel plans.

    During Thursday’s hearing, she blamed the state’s taxes and regulations for driving up gas prices.

    “The governor and the Legislature should focus efforts on removing policy hurdles being imposed on the energy industry so we can focus on providing affordable, reliable and lower carbon energy to all Californians,” Reheis-Boyd said.

    Severin Borenstein, a University of California-Berkeley professor, said the problem isn’t at the oil refinery level, but at the retail level where gasoline is sold to drivers.

    California’s gasoline market is dominated by name-brand gasoline, which is more expensive, and the state’s gas prices have been consistently higher than the rest of the country since 2015, Borenstein said.

    “We just don’t have the competition and discipline from those off-brand stations,” he said.

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  • Reformers take 6 of 14 UAW board seats, could win majority

    Reformers take 6 of 14 UAW board seats, could win majority

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    DETROIT — Reform-minded candidates won several races as members of the United Auto Workers union voted on their leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    In unofficial results posted early Sunday on a federal court-appointed monitor’s website, challengers took six of 14 seats on the union’s International Executive Board. They could win as many as eight, including the presidency, and control a majority, depending on the outcome of three runoff elections.

    The reform candidates, most part of a slate called UAW Members United, campaigned on taking a more confrontational stance in bargaining with Detroit’s three automakers. They want to rescind concessions made to companies in previous contract talks, restoring cost-of-living pay raises and eliminating a two-tier wage and benefit system.

    The adversarial stance is likely to raise costs for General Motors, Ford and Stellantis, which almost certainly would be passed on to consumers. Even without the election, costs likely would have gone up as workers seek a bigger share of billions of dollars in profits.

    In the race for president, incumbent Ray Curry defeated challenger Shawn Fain by 614 votes. Curry had 38.2% of the vote to Fain’s 37.6%. But neither got a majority in the five-candidate field, so there will be a runoff election in January.

    Mike Booth and Rich Boyer, both from Members United, took two of three vice president slots. Two vice president candidates from Curry’s Solidarity Team slate, incumbent Chuck Browning and Tim Bressler, will compete in a runoff for the third vice president slot.

    Members United candidate Margaret Mock ousted current Secretary-Treasurer Frank Stuglin. Reform-minded candidates took three regional director slots, with another headed for a runoff.

    Winners will be sworn in on Dec. 12. Ballots for the runoff elections will be mailed Jan. 12 with a Feb. 28 deadline to return them. Votes will be counted starting March 1, according to the website of Monitor Neil Barofsky.

    In an interview, Fain said the election puts the companies on notice “to get ready. We’re coming for you.” He said companies are making billions of dollars and have closed or spun off plants and failed to give the Stellantis plant in Belvidere, Illinois, a new vehicle to build after it stops making its current model.

    “It’s just a fact that over the years our leadership has become way too close to management,” he said.

    Curry’s slate said in a statement that it is fighting for all active and retired members. “Our member expectations are high, and our team has the experience and proven track record to both build coalitions for the fight and deliver results,” it said.

    Curry, elected by a vote of the International Executive Board in 2021 to replace retiring Rory Gamble, said at a September candidates’ forum that he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

    Turnout in the election for the 372,000-member union was low. Of about 1 million ballots mailed to active members and retirees, only 10.5% were returned.

    The 2023 contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison. The first criminal charges in the probe were filed in 2017.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee the UAW and elections of the executive board.

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  • GM venture to invest additional $275M at Tennessee plant

    GM venture to invest additional $275M at Tennessee plant

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    NASHVILLE, Tenn. — A joint venture between General Motors and South Korean battery company LG Energy Solution announced Friday that it will invest an additional $275 million to expand a Tennessee battery cell factory for electric vehicles.

    Officials with the companies had already pledged to spend $2.3 billion to build a battery plant in Spring Hill, Tennessee. The additional investment is anticipated to result in 40% more battery cell output when the plant is fully operational. Production at the 2.8-million-square-foot facility is expected to begin in late 2023.

    The Tennessee plant is one of three lithium-ion battery factories being built by the joint venture, Ultium Cells LLC. The other two are in Michigan and Ohio. A fourth is also expected, but the site has not yet been named.

    “We’re here because we know we can be successful with your partnership,” said Tom Gallagher, Ultium Cells vice president for operations, noting that GM already has employees training in Poland to start at the plant. “It’s an exciting journey that we’re on.”

    Overall the three plants are expected to create up to 6,000 construction jobs and 5,100 operations jobs when completed.

    U.S. Energy Secretary Jennifer Granholm has said the plants will help strengthen the nation’s energy independence and support President Joe Biden’s goal of having electric vehicles make up half of all vehicle sales in the United States by 2030. The Department of Energy has also made a conditional commitment to lend $2.5 billion to Ultium Cells to help build the plants.

    Last year Toyota announced it would build a $1.3 billion battery plant in North Carolina. Stellantis, formerly Fiat Chrysler, has said it will build two battery plants in North America. Ford is currently building three plants in Kentucky and Tennessee.

    Tennessee officials announced plans last month to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.

    The manufacturing facility will be built in Clarksville and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem.

    Republican Gov. Bill Lee touted the investments in Tennessee, saying, “We are now a state that’s the center of future of the automotive industry.”

    GM has set a goal of selling only electric passenger vehicles by 2035. The company plans to roll out 30 electric vehicles globally by 2025 and has pledged to invest $35 billion in electric and autonomous vehicles through that same year.

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  • GM venture to invest additional $275M at Tennessee plant

    GM venture to invest additional $275M at Tennessee plant

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    NASHVILLE, Tenn. — A joint venture between General Motors and South Korean battery company LG Energy Solution announced Friday that it will invest an additional $275 million to expand a Tennessee battery cell factory for electric vehicles.

    Officials with the companies had already pledged to spend $2.3 billion to build a battery plant in Spring Hill, Tennessee. The additional investment is anticipated to result in 40% more battery cell output when the plant is fully operational. Production at the 2.8-million-square-foot facility is expected to begin in late 2023.

    The Tennessee plant is one of three lithium-ion battery factories being built by the joint venture, Ultium Cells LLC. The other two are in Michigan and Ohio. A fourth is also expected, but the site has not yet been named.

    “We’re here because we know we can be successful with your partnership,” said Tom Gallagher, Ultium Cells vice president for operations, noting that GM already has employees training in Poland to start at the plant. “It’s an exciting journey that we’re on.”

    Overall the three plants are expected to create up to 6,000 construction jobs and 5,100 operations jobs when completed.

    U.S. Energy Secretary Jennifer Granholm has said the plants will help strengthen the nation’s energy independence and support President Joe Biden’s goal of having electric vehicles make up half of all vehicle sales in the United States by 2030. The Department of Energy has also made a conditional commitment to lend $2.5 billion to Ultium Cells to help build the plants.

    Last year Toyota announced it would build a $1.3 billion battery plant in North Carolina. Stellantis, formerly Fiat Chrysler, has said it will build two battery plants in North America. Ford is currently building three plants in Kentucky and Tennessee.

    Tennessee officials announced plans last month to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.

    The manufacturing facility will be built in Clarksville and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem.

    Republican Gov. Bill Lee touted the investments in Tennessee, saying, “We are now a state that’s the center of future of the automotive industry.”

    GM has set a goal of selling only electric passenger vehicles by 2035. The company plans to roll out 30 electric vehicles globally by 2025 and has pledged to invest $35 billion in electric and autonomous vehicles through that same year.

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  • LGBTQ chorus in Colorado Springs unifies community with song

    LGBTQ chorus in Colorado Springs unifies community with song

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    COLORADO SPRINGS, Colo. — Below the vaulted dome and dark wood beams of a church in Colorado Springs, a gay men’s choir rehearsed for a concert that’s taken on new meaning after a LGBTQ night club became the site of a gruesome shooting that killed five and wounded 17.

    “There is no peace on earth, I said,” the chorus sang. “For hate is strong and mocks the song of peace on earth.”

    The old lyrics that rang through the halls of the First Congregational Church were haunted by new memories of the Nov. 21 violence at Club Q — the sound of screams over club music, the sight of bullet wounds plugged by napkins and people pleading with their friends to keep breathing.

    In the 13 days since the shooting, Colorado Springs’ LGBTQ community has worked to collect itself and forge ahead. Patrons of Club Q — those who survived the rampage as well as regulars who weren’t there last Saturday — have organized donation drives for victims’ families, leaned on queer-affirming clergy and renewed their commitments to LGBTQ spaces and organizations, including Out Loud Colorado Springs Men’s Chorus.

    Gay and lesbian choruses like Out Loud were borne out of the 1978 assassination of San Francisco Supervisor Harvey Milk and have remained steadfast pillars of the LGBTQ community from the AIDS crisis through mass shootings such as Orlando’s Pulse nightclub in 2016.

    In Colorado Springs, members of Out Loud prepared for three sold-out concerts, their first performances since the COVID-19 pandemic forced them to cancel shows. The rehearsals brought laughter, and at times damp eyes, chins raised and heads defiantly held forward. They’re sending a clear message: “We are saying we are still here,” said Marius Nielsen, a transgender man who sung from the front row at a Wednesday night rehearsal.

    In one practice session, Nielsen broke down while singing. He said he felt the swelling strength of those around him through the music.

    “Everyone has you, even if you falter,” he said.

    The concert’s solemn notes punctuated a largely joyful event where talented singers belted out Christmas carol medleys, some more campy than others. Members of the chorus dressed as the robed three kings — but in feathery, neon scarves — and struck go-go dancer poses. Another performer wearing Claus-style short shorts swooned over Santa.

    “We will grieve, we will feel anger and sadness, and in the midst of that we will feel joy and hope,” said Bill Loper, the concert’s artistic director.

    Standing three rows back from Nielsen, Rod Gilmore said the choir was keeping him going. With the violent memories still fresh, Club Q shooting survivor Gilmore said he would have reentered the closet he left last year at age 55 if it wasn’t for those standing next to him in the church.

    “It’s given me solace and a comfortable feeling that relaxes me and makes me feel like I’m a whole of something, not just a part,” Gilmore said.

    Colorado Springs residents are working to spread that feeling of togetherness throughout their city. Matthew Haynes, Club Q’s co-owner, is looking to remodel and install a garden and memorial to celebrate the lives lost. A friend cooked a vegan casserole for the owners. A Las Vegas resident drove to Colorado Springs to play a piano fastened to the bed of his red Toyota pickup.

    “There’s no playbook for this,” said Haynes, who has started a GoFundMe page committed to “bringing Club Q back as the safe space for Colorado Springs.” His first goal is to ensure survivors and those mourning are supported.

    At a memorial on Wednesday, Colorado Gov. Jared Polis paid his respects in front of a heaping row of flowers and gazed at photos of those lost. In 2018, Polis became the first openly gay man elected governor in the U.S.

    A retired teacher who worked near Columbine High School during the 1999 mass shooting there dropped off flowers next to a stuffed pink flamingo and said he worried these tragedies have become so commonplace that people have become desensitized.

    Amidst vigils, marches and outpourings of support on social media, Aaron Cornelius is among those in Colorado Springs demanding the tragedy be mourned and remembered.

    “We are not going away,” Cornelius told a large audience Tuesday night at Lulu’s Downstairs, a bar just west of Colorado Springs that held a silent auction where poets, speakers and musicians performed. “This community is a lot stronger than they think. They think we are vulnerable; they think we are weak.”

    On stage, they oscillated between fiery calls to action to fight the status quo and gentler messages advocating love over hate.

    The faces of audience members were illuminated by candles as they chanted: “I am valid. I deserve to be safe. I may be afraid, but bravery is going out and living in the face of fear. I am brave. I am brave.”

    During the auction, a self-described “later-in-life lesbian” pastor perused bespoke wine bottles labeled with Club Q and the date of the massacre, as well as gift cards for haircuts and a dog bandana reading, “I heart my Dads.”

    Wyatt Kent, a drag queen who performed at Club Q the night of the shooting, read poems and anecdotes penned by their partner, Daniel Aston, who was killed while working behind the bar.

    In one anecdote, Aston, who was a transgender man, wrote of moving to Colorado Springs from Tulsa, Oklahoma, and how he had grown into himself: “I’m less of a doormat, I’m more assertive, I have a job as a bartender that I love. I no longer want to die.”

    Kent then read one of Aston’s poems, which Kent described as Aston helping the community move forward: “Some things never make any sense, like salmon downstream, like sweat rolling down your sleeve. That’s just the way these things go.”

    “All of that is part of healing: the laughing, the crying, all of it. And then just being together. After something like this, you just naturally want a human to be with,” event organizer Kittie Kilner said.

    That mixture of pride and rage, laughter and tears, is what Out Loud aims for in their upcoming holiday concerts.

    “Music is magical,” chorus member Josh Campbell said. “We aren’t talking to each other, but … we connect on an emotional level.”

    The small audience sensed that magic at rehearsal as the chorus progressed through “I Heard the Bells on Christmas Day,” a carol based on a Civil War-era poem by Henry Wadsworth Longfellow about his wounded son.

    Their despair lifted as the music pulled toward resolution: “Then pealed the bells more loud and deep: God is not dead, nor doth he sleep. The wrong shall fail … the right prevail with peace on earth.”

    ———

    AP writer Sam Metz contributed from Salt Lake City. Jesse Bedayn is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

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  • Reform candidates lead in UAW races with 68% of vote counted

    Reform candidates lead in UAW races with 68% of vote counted

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    DETROIT — Members of the United Auto Workers union appeared on Thursday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    Reform-minded candidates, many part of the UAW Members United slate, are leading or close in multiple key races with about 68% of the vote counted. Many challengers campaigned on rescinding concessions made to companies in previous contract talks, including cost-of-living pay raises, elimination of a two-tier wage and benefit system, and other items.

    That could raise costs for Detroit’s three automakers — General Motors, Ford and Stellantis — and almost inevitably will drive up already expensive auto prices.

    With tallies from six of nine UAW regions counted, incumbent President Ray Curry had a slim lead over Shawn Fain, an international union official who started at a Stellantis plant in Kokomo, Indiana, in a five-candidate race.

    Curry had 38.6% of the vote, while Fain was second with 38%. There likely will be a runoff election early next year between Fain and Curry since neither had a majority of the votes.

    In the race for three vice presidents, Rich Boyer and Mike Booth, both Members United candidates, are first and second in an eight-candidate field, followed by incumbent Vice President Chuck Browning. A runoff could happen there, too.

    Margaret Mock, the Members United candidate for secretary-treasurer, had 62.6% of the vote to lead incumbent Frank Stuglin at 37.4%. Where tallies have been completed, candidates who campaigned on reforming the union also won three of nine regional director positions, with another heading to a runoff.

    It wasn’t clear when the vote count would be finished. The ballots are being counted by a company hired by a court-appointed monitor who is overseeing the election and the union.

    Fain led the Members United ticket, which campaigned on reforming the 372,000-member UAW after the scandal. The election also has broad implications for contract talks with the Detroit auto companies that start next year.

    Fain has advocated for more of a confrontational stance and has accused union leadership of complacency. He has said the UAW has had a philosophy for 40 years of viewing automakers as partners rather than adversaries.

    He said it’s too early to declare a winner but said in an interview Thursday that the early vote totals are “a loud and clear message to the companies and the businesses to get ready, we’re coming for you.”

    The automakers, he said, are making making the best profits in their history, yet are closing factories and costing union jobs. He gave General Motors’ 2019 closure of its Lordstown, Ohio, assembly plant as an example, plus a lack of new vehicles for Stellantis’ Belvidere, Illinois, plant, which he said has lost 3,000 workers.

    At a candidates’ forum in September, Fain said union leaders should have reversed concessions made starting in 2007 and should have won job security guarantees.

    “We’ve had at least 10 years with perfect conditions for regaining and improving what was lost during the Great Recession,” he said.

    The contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    A company hired by Monitor Neil Barofsky mailed out about 1 million ballots to active and retired union members. But only 106,790, roughly 10.7%, were returned.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe since 2017, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee elections of the 14-member executive board.

    Curry, appointed in 2021 to replace retiring Rory Gamble to lead the union, said he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said at the candidates’ forum that the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

    ————

    This story has been corrected to show that 68% of the vote has been counted, not 73%.

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  • Reform candidates lead in UAW races with 73% of vote counted

    Reform candidates lead in UAW races with 73% of vote counted

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    DETROIT — Members of the United Auto Workers union appeared on Thursday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    Reform-minded candidates, many part of the UAW Members United slate, are leading or close in multiple key races with about 73% of the vote in. Many challengers campaigned on rescinding concessions made to companies in previous contract talks, including cost-of-living pay raises, elimination of a two-tier wage and benefit system, and other items.

    That could raise costs for Detroit’s three automakers — General Motors, Ford and Stellantis — and almost inevitably will drive up already expensive auto prices.

    With tallies from six of nine UAW regions counted, incumbent President Ray Curry had a slim lead over Shawn Fain, an international union official who started at a Stellantis plant in Kokomo, Indiana, in a five-candidate race.

    Curry had 38.6% of the vote, while Fain was second with 38%. There likely will be a runoff election early next year between Fain and Curry since neither had a majority of the votes.

    In the race for three vice presidents, Rich Boyer and Mike Booth, both Members United candidates, are first and second in an eight-candidate field, followed by incumbent Vice President Chuck Browning. A runoff could happen there, too.

    Margaret Mock, the Members United candidate for secretary-treasurer, had 62.6% of the vote to lead incumbent Frank Stuglin at 37.4%. Where tallies have been completed, candidates who campaigned on reforming the union also won three of nine regional director positions, with another heading to a runoff.

    It wasn’t clear when the vote count would be finished. The ballots are being counted by a company hired by a court-appointed monitor who is overseeing the election and the union.

    Fain led the Members United ticket, which campaigned on reforming the 372,000-member UAW after the scandal. The election also has broad implications for contract talks with the Detroit auto companies that start next year.

    Fain has advocated for more of a confrontational stance and has accused union leadership of complacency. He has said the UAW has had a philosophy for 40 years of viewing automakers as partners rather than adversaries.

    He hasn’t declared victory but said in an interview Thursday that the early vote totals are “a loud and clear message to the companies and the businesses to get ready, we’re coming for you.”

    The automakers, he said, are making making the best profits in their history, yet are closing factories and costing union jobs. He gave General Motors’ 2019 closure of its Lordstown, Ohio, assembly plant as an example, plus a lack of new vehicles for Stellantis’ Belvidere, Illinois, plant, which he said has lost 3,000 workers.

    At a candidates’ forum in September, Fain said union leaders should have reversed concessions made starting in 2007 and should have won job security guarantees.

    “We’ve had at least 10 years with perfect conditions for regaining and improving what was lost during the Great Recession,” he said.

    The contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    A company hired by Monitor Neil Barofsky mailed out about 1 million ballots to active and retired union members. But only 106,790, roughly 10.7%, were returned.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe since 2017, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee elections of the 14-member executive board.

    Curry, appointed in 2021 to replace retiring Rory Gamble to lead the union, said he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said at the candidates’ forum that the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

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  • EPA seeks to mandate more use of ethanol and other biofuels

    EPA seeks to mandate more use of ethanol and other biofuels

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    MINNEAPOLIS — The Environmental Protection Agency on Thursday proposed increasing the amount of ethanol and other biofuels that must be blended into the nation’s fuel supplies over the next three years, a move welcomed by renewable fuel and farm groups but condemned by environmentalists and oil industry groups.

    “This proposal supports low-carbon renewable fuels and seeks public input on ways to strengthen the program,” EPA Administrator Michael S. Regan said in a statement. “With this proposal, EPA seeks to provide consumers with more options while diversifying our nation’s energy mix.”

    The proposal also includes new incentives to encourage the use of biogas from farms and landfills, and renewable biomass such as wood, to generate electricity to charge electric vehicles. It’s the first time the EPA has set biofuel targets on its own instead of using numbers from Congress. The agency opened a public comment period and will hold a hearing in January.

    The goal of the existing Renewable Fuel Standard is to reduce carbon emissions that contribute to climate change, expand the country’s fuel supply, strengthen energy security and reduce fuel prices for consumers. Ethanol is a key part of the economy in many Midwest states, consuming about 40% of the nation’s corn supply.

    But environmentalists argue that it’s a net ecological and climate detriment because growing all that corn fosters unsustainable farming practices, while the oil industry says ethanol mandates constrain free market forces and limit consumer choice, and that higher blends can damage older vehicles.

    Geoff Cooper, president and CEO of the Renewable Fuels Association, told reporters on a conference call that the EPA’s plan creates a “clear pathway for sustainable growth for our industry when it comes to the production and use of low-carbon fuels like ethanol.” He said it also bolsters the industry’s push for year-round sales of gasoline with a 15% ethanol blend, as well as sales of the 85% ethanol blend E85.

    “As the administration is working to address climate change, we’ve long known that biofuels will play an important role in reducing greenhouse gases while having the added benefit of providing expanded opportunities for farmers,” National Farmers Union President Rob Larew said in a statement.

    But environmental groups said the plan offers false solutions to climate change.

    “This is a toxic plan directly at odds with the Biden Administration’s commitment to Environmental Justice,” Sarah Lutz, climate campaigner at Friends of the Earth, said in a statement. “Charging electric vehicles with forests and factory farms should be a non-starter.”

    Geoff Moody, senior vice president of the American Fuel & Petrochemical Manufacturers said the Renewable Fuel Standard was meant to be a liquid fuels program, not an electric vehicle program. He urged the EPA to go back as it develops the final rule and reject “yet another massive regulatory subsidy for electric vehicle manufacturers.”

    The EPA proposes to set the total target for all kinds of renewable fuels at 20.82 billion gallons for 2023, including 15 billion gallons from corn ethanol. The target would grow to 22.68 billion gallons for 2025, including 15.25 billion gallons of corn ethanol. The plan also calls for growth in cellulosic biofuels — which are made from fibrous plant materials — biomass-based diesel and other advanced biofuels.

    Republican U.S. Sen. Chuck Grassley, of Iowa, the country’s top corn and ethanol producing state, said in a statement that the EPA should have gone further to require even more use of advanced biofuels to move freight, which he said would help lower prices for consumer goods.

    Cooper said there’s probably no way to meet the proposed higher targets without more use of E15 and E85 instead of the conventional 10% ethanol mix. That makes it important to eliminate regulations that block summertime sales of E15, he said.

    So, he predicted, the EPA’s proposal should bolster prospects for legislation introduced this week by Democratic U.S. Sen. Amy Klobuchar, of Minnesota, and GOP Sen. Deb Fischer, of Nebraska, to allow year-round sales of E15 nationwide. E15 sales are usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures.

    Eight Midwest governors asked the EPA in April to allow year-round sales of E15 in their states. But Cooper said the new bill would provide a “nationwide fix” that even the American Petroleum Institute considers preferable to the current patchwork of temporary waivers and ad hoc solutions.

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  • EU warns Musk to beef up Twitter controls ahead of new rules

    EU warns Musk to beef up Twitter controls ahead of new rules

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    LONDON — A top European Union official warned Elon Musk on Wednesday that Twitter needs to beef up measures to protect users from hate speech, misinformation and other harmful content to avoid violating new rules that threaten tech giants with big fines or even a ban in the 27-nation bloc.

    Thierry Breton, the EU’s commissioner for digital policy, told the billionaire Tesla CEO that the social media platform will have to significantly increase efforts to comply with the new rules, known as the Digital Services Act, set to take effect next year.

    The two held a video call to discuss Twitter’s preparedness for the law, which will require tech companies to better police their platforms for material that, for instance, promotes terrorism, child sexual abuse, hate speech and commercial scams.

    It’s part of a new digital rulebook that has made Europe the global leader in the push to rein in the power of social media companies, potentially setting up a clash with Musk’s vision for a more unfettered Twitter. U.S. Treasury Secretary Janet Yellen also said Wednesday that an investigation into Musk’s $44 billion purchase was not off the table.

    Breton said he was pleased to hear that Musk considers the EU rules “a sensible approach to implement on a worldwide basis.”

    “But let’s also be clear that there is still huge work ahead,” Musk said, according to a readout of the call released by Breton’s office. “Twitter will have to implement transparent user policies, significantly reinforce content moderation and protect freedom of speech, tackle disinformation with resolve, and limit targeted advertising.”

    After Musk, a self-described “free speech absolutist,” bought Twitter a month ago, groups that monitor the platform for racist, antisemitic and other toxic speech, such the Cyber Civil Rights Initiative, say it’s been on the rise on the world’s de facto digital public square.

    Musk has signaled an interest in rolling back many of Twitter’s previous rules meant to combat misinformation, most recently by abandoning enforcement of its COVID-19 misinformation policy. He already reinstated some high-profile accounts that had violated Twitter’s content rules and had promised a “general amnesty” restoring most suspended accounts starting this week.

    Twitter didn’t respond to an email request for comment. In a separate blog post Wednesday, the company said “human safety” is its top priority and that its trust and safety team “continues its diligent work to keep the platform safe from hateful conduct, abusive behavior, and any violation of Twitter’s rules.”

    Musk, however, has laid off half the company’s 7,500-person workforce, along with an untold number of contractors responsible for content moderation. Many others have resigned, including the company’s head of trust and safety.

    In the call Wednesday, Musk agreed to let the EU’s executive Commission carry out a “stress test” at Twitter’s headquarters early next year to help the platform comply with the new rules ahead of schedule, the readout said.

    That will also help the company prepare for an “extensive independent audit” as required by the new law, which is aimed at protecting internet users from illegal content and reducing the spread of harmful but legal material.

    Violations could result in huge fines of up to 6% of a company’s annual global revenue or even a ban on operating in the European Union’s single market.

    Along with European regulators, Musk risks running afoul of Apple and Google, which power most of the world’s smartphones. Both have stringent policies against misinformation, hate speech and other misconduct, previously enforced to boot apps like the social media platform Parler from their devices. Apps must also meet certain data security, privacy and performance standards.

    Musk tweeted without providing evidence this week that Apple “threatened to withhold Twitter from its App Store, but won’t tell us why.” Apple hasn’t commented.

    Meanwhile, U.S. Treasury Secretary Janet Yellen walked back her statements about whether Musk’s purchase of Twitter warrants government review.

    “I misspoke,” she said at The New York Times’ DealBook Summit on Wednesday, referring to a CBS interview this month where she said there was “no basis” to review the Twitter purchase.

    The Treasury secretary oversees the Committee on Foreign Investment in the United States, an interagency committee that investigates the national security risks from foreign investments in American firms.

    “If there are such risks, it would be appropriate for the Treasury to have a look,” Yellen told The New York Times.

    She declined to confirm whether CFIUS is currently investigating Musk’s Twitter purchase.

    Billionaire Saudi Prince Alwaleed bin Talal is, through his investment company, Twitter’s biggest shareholder after Musk.

    ———

    Associated Press writers Fatima Hussein in Washington and Matt O’Brien in Providence, Rhode Island, contributed.

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  • EU warns Musk to beef up Twitter controls ahead of new rules

    EU warns Musk to beef up Twitter controls ahead of new rules

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    LONDON — A top European Union official warned Elon Musk on Wednesday that Twitter needs to beef up measures to protect users from hate speech, misinformation and other harmful content to avoid violating new rules that threaten tech giants with big fines or even a ban in the 27-nation bloc.

    Thierry Breton, the EU’s commissioner for digital policy, told the billionaire Tesla CEO that the social media platform will have to significantly increase efforts to comply with the new rules, known as the Digital Services Act, set to take effect next year.

    The two held a video call to discuss Twitter’s preparedness for the law, which will require tech companies to better police their platforms for material that, for instance, promotes terrorism, child sexual abuse, hate speech and commercial scams.

    It’s part of a new digital rulebook that has made Europe the global leader in the push to rein in the power of social media companies, potentially setting up a clash with Musk’s vision for a more unfettered Twitter. U.S. Treasury Secretary Janet Yellen also said Wednesday that an investigation into Musk’s $44 billion purchase was not off the table.

    Breton said he was pleased to hear that Musk considers the EU rules “a sensible approach to implement on a worldwide basis.”

    “But let’s also be clear that there is still huge work ahead,” Musk said, according to a readout of the call released by Breton’s office. “Twitter will have to implement transparent user policies, significantly reinforce content moderation and protect freedom of speech, tackle disinformation with resolve, and limit targeted advertising.”

    After Musk, a self-described “free speech absolutist,” bought Twitter a month ago, groups that monitor the platform for racist, antisemitic and other toxic speech, such the Cyber Civil Rights Initiative, say it’s been on the rise on the world’s de facto digital public square.

    Musk has signaled an interest in rolling back many of Twitter’s previous rules meant to combat misinformation, most recently by abandoning enforcement of its COVID-19 misinformation policy. He already reinstated some high-profile accounts that had violated Twitter’s content rules and had promised a “general amnesty” restoring most suspended accounts starting this week.

    Twitter didn’t respond to an email request for comment. In a separate blog post Wednesday, the company said “human safety” is its top priority and that its trust and safety team “continues its diligent work to keep the platform safe from hateful conduct, abusive behavior, and any violation of Twitter’s rules.”

    Musk, however, has laid off half the company’s 7,500-person workforce, along with an untold number of contractors responsible for content moderation. Many others have resigned, including the company’s head of trust and safety.

    In the call Wednesday, Musk agreed to let the EU’s executive Commission carry out a “stress test” at Twitter’s headquarters early next year to help the platform comply with the new rules ahead of schedule, the readout said.

    That will also help the company prepare for an “extensive independent audit” as required by the new law, which is aimed at protecting internet users from illegal content and reducing the spread of harmful but legal material.

    Violations could result in huge fines of up to 6% of a company’s annual global revenue or even a ban on operating in the European Union’s single market.

    Along with European regulators, Musk risks running afoul of Apple and Google, which power most of the world’s smartphones. Both have stringent policies against misinformation, hate speech and other misconduct, previously enforced to boot apps like the social media platform Parler from their devices. Apps must also meet certain data security, privacy and performance standards.

    Musk tweeted without providing evidence this week that Apple “threatened to withhold Twitter from its App Store, but won’t tell us why.” Apple hasn’t commented.

    Meanwhile, U.S. Treasury Secretary Janet Yellen walked back her statements about whether Musk’s purchase of Twitter warrants government review.

    “I misspoke,” she said at The New York Times’ DealBook Summit on Wednesday, referring to a CBS interview this month where she said there was “no basis” to review the Twitter purchase.

    The Treasury secretary oversees the Committee on Foreign Investment in the United States, an interagency committee that investigates the national security risks from foreign investments in American firms.

    “If there are such risks, it would be appropriate for the Treasury to have a look,” Yellen told The New York Times.

    She declined to confirm whether CFIUS is currently investigating Musk’s Twitter purchase.

    Billionaire Saudi Prince Alwaleed bin Talal is, through his investment company, Twitter’s biggest shareholder after Musk.

    ———

    Associated Press writers Fatima Hussein in Washington and Matt O’Brien in Providence, Rhode Island contributed.

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