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Tag: Contracts and orders

  • Anthropic refuses to bend to Pentagon on AI safeguards as dispute nears deadline

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    A public showdown between the Trump administration and Anthropic is hitting an impasse as military officials demand the artificial intelligence company bend its ethical policies by Friday or risk damaging its business.

    Anthropic CEO Dario Amodei drew a sharp red line 24 hours before the deadline, declaring his company “cannot in good conscience accede” to the Pentagon’s final demand to allow unrestricted use of its technology.

    Anthropic, maker of the chatbot Claude, can afford to lose a defense contract. But the ultimatum this week from Defense Secretary Pete Hegseth posed broader risks at the peak of the company’s meteoric rise from a little-known computer science research lab in San Francisco to one of the world’s most valuable startups.

    If Amodei doesn’t budge, military officials have warned they will not just pull Anthropic’s contract but also “deem them a supply chain risk,” a designation typically stamped on foreign adversaries that could derail the company’s critical partnerships with other businesses.

    And if Amodei were to cave, he could lose trust in the booming AI industry, particularly from top talent drawn to the company for its promises of responsibly building better-than-human AI that, without safeguards, could pose catastrophic risks.

    Anthropic said it sought narrow assurances from the Pentagon that Claude won’t be used for mass surveillance of Americans or in fully autonomous weapons. But after months of private talks exploded into public debate, it said in a Thursday statement that new contract language “framed as compromise was paired with legalese that would allow those safeguards to be disregarded at will.”

    That was after Sean Parnell, the Pentagon’s top spokesman, posted on social media that “we will not let ANY company dictate the terms regarding how we make operational decisions” and added the company has “until 5:01 p.m. ET on Friday to decide” if it would meet the demands or face consequences.

    Emil Michael, the defense undersecretary for research and engineering, later lashed out at Amodei, alleging on X that he “has a God-complex” and “wants nothing more than to try to personally control the US Military and is ok putting our nation’s safety at risk.”

    That message hasn’t resonated in much of Silicon Valley, where a growing number of tech workers from Anthropic’s top rivals, OpenAI and Google, voiced support for Amodei’s stand late Thursday in an open letter.

    OpenAI and Google, along with Elon Musk’s xAI, also have contracts to supply their AI models to the military.

    “The Pentagon is negotiating with Google and OpenAI to try to get them to agree to what Anthropic has refused,” the open letter says. “They’re trying to divide each company with fear that the other will give in.”

    Also raising concerns about the Pentagon’s approach were Republican and Democratic lawmakers and a former leader of the Defense Department’s AI initiatives.

    “Painting a bullseye on Anthropic garners spicy headlines, but everyone loses in the end,” wrote retired Air Force Gen. Jack Shanahan in a social media post.

    Shanahan faced a different wave of tech worker opposition during the first Trump administration when he led Maven, a project to use AI technology to analyze drone footage and target weapons. So many Google employees protested its participation in Project Maven at the time that the tech giant declined to renew the contract and then pledged not to use AI in weaponry.

    “Since I was square in the middle of Project Maven & Google, it’s reasonable to assume I would take the Pentagon’s side here,” Shanahan wrote Thursday on social media. “Yet I’m sympathetic to Anthropic’s position. More so than I was to Google’s in 2018.”

    He said Claude is already being widely used across the government, including in classified settings, and Anthropic’s red lines are “reasonable.” He said the AI large language models that power chatbots like Claude are also “not ready for prime time in national security settings,” particularly not for fully autonomous weapons.

    “They’re not trying to play cute here,” he wrote.

    Parnell asserted Thursday that the Pentagon wants to “ use Anthropic’s model for all lawful purposes” and said opening up use of the technology would prevent the company from “jeopardizing critical military operations,” though neither he nor other officials have detailed how they want to use the technology.

    The military “has no interest in using AI to conduct mass surveillance of Americans (which is illegal) nor do we want to use AI to develop autonomous weapons that operate without human involvement,” Parnell wrote.

    When Hegseth and Amodei met Tuesday, military officials warned that they could designate Anthropic as a supply chain risk, cancel its contract or invoke a Cold War-era law called the Defense Production Act to give the military more sweeping authority to use its products, even if the company doesn’t approve.

    Amodei said Thursday that “those latter two threats are inherently contradictory: one labels us a security risk; the other labels Claude as essential to national security.” He said he hopes the Pentagon will reconsider given Claude’s value to the military, but, if not, Anthropic “will work to enable a smooth transition to another provider.”

    —-

    AP reporter Konstantin Toropin contributed to this report.

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  • Falling cocoa prices won’t necessarily mean cheaper Valentine’s Day chocolates

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    Cocoa prices have fallen nearly 70% since last Valentine’s Day, but that won’t make heart-shaped boxes of chocolate or even chocolate Easter bunnies more affordable this year.

    Chocolate prices at U.S. retail stores rose 14% between Jan. 1 and the first week of February compared to the same period last year, according to market research company Datasembly. That’s on top of a 7.8% increase for the same period in 2025.

    Europe has seen even steeper price increases. In Germany, chocolate prices rose 18.9% in 2025, according to government figures.

    Here’s what caused the price of cocoa futures to rise and then fall — and why that may not be reflected in the prices customers are paying.

    Cocoa prices more than doubled in 2024 due to insufficient rainfall and crop diseases in West Africa, which supplies more than 70% of the world’s cocoa. Cocoa, which is made from the dried beans of the cacao tree, is the main ingredient in both dark and white chocolate.

    Weather conditions have improved since then in Ivory Coast and Ghana, and cocoa production is increasing in Ecuador and other countries, according to an analysis by J.P. Morgan. The resulting supply increase is one reason cocoa prices are coming down.

    But they’re also dropping because of lower global demand. Chocolate getting more expensive has turned off consumers, so manufacturers have cut the amount of chocolate they use or shifted to other products like gummy candies to keep prices in check, said Chris Costagli, a food thought leader at the market research company NIQ.

    In the U.S., annual retail sales of chocolate rose 6.7% in 2025 compared to the prior year, largely because of price increases, according to NIQ data. But the number of individual products sold was down 1.3%, as consumers bought less chocolate overall.

    The Trump administration’s tariffs were another reason U.S. chocolate prices increased last year.

    The administration put a tariff averaging 15% on cocoa-producing countries last February, which raised the price of U.S. cocoa imports, according to the U.S. Federal Reserve.

    In November, the administration removed tariffs on cocoa and other commodities that can’t be grown in the U.S., including coffee, spices and tropical fruit.

    But tariffs of 15% or more on products from the European Union, including chocolates, remain in place.

    So far, declining cocoa prices haven’t necessarily let chocolate lovers pay less.

    Costagli compares the situation to gas prices. Even when the cost of oil goes down, prices at the pump don’t immediately follow because companies need to use up the oil they bought at a higher price.

    Chocolate makers like The Hershey Co. have long-term contracts that may require them to pay more than current cocoa prices. The market also is volatile; companies know that another bout of poor weather or a surge in demand could make cocoa prices surge again.

    But Costagli said companies also watch shoppers’ reaction to prices.

    “If the customer is still willing to pay that higher price point, do we really take the price down?” he said.

    Mondelez International, which owns chocolate brands like Oreo, Cadbury and Toblerone, raised its prices by 8% globally in 2025 to counter higher cocoa costs.

    In Europe, the company hiked prices by even more and saw a significant decrease in the amount of its products sold. As a result, Mondelez lowered prices this year in some markets, including the United Kingdom and Germany.

    “We have learned that certain price points are very important, and so we have adjusted already to put our products at the right price point,” Mondelez Chairman and CEO Dirk Van de Put said during a February conference call with investors.

    Van de Put said Mondelez didn’t plan immediate price cuts in North America, where both its price increases and its sales volume losses were more moderate.

    Two segments of the chocolate market grew in the U.S. last year: value brands and super-premium brands, Costagli said.

    The expanded interest in higher-end chocolate may seem surprising if consumers balked at paying more for a Snickers bar or a pack of Reese’s Peanut Butter Cups. But the companies behind super-premium lines like Ferrero Rocher, Justin’s and Lindt Excellence were less aggressive about instituting cocoa-related price increases since their products already were more expensive, Costagli said.

    As mainstream chocolate makers like Hershey and Mars raised prices, some customers decided they’d just spend a little more, he said.

    “It’s given the aspirational shopper that little push they need to trade up. If they wanted a better product, if they wanted better experience, better product characteristics, organic, fair trade, whatever it might be,” Costagli said.

    On the flip side, value brands — think Whitman’s or some store-brand chocolates — also sold more products in the U.S. last year as price-conscious shoppers traded down from mainstream brands.

    “The savings you get by trading down is actually greater than it used to be,” Costagli said. “So from an aspirational perspective, it’s easier to trade up, and from a financially insecure perspective, it saves you more to trade down.”

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  • China factory activity picks up in December as orders rebound ahead of holidays

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    BANGKOK — Chinese factory activity expanded for the first time in eight months in December, as orders picked up ahead of holidays and builders rushed to finish projects, according to surveys released Wednesday.

    The official purchasing managers index for manufacturing, a monthly survey of companies, rose to 50.1 this month, the National Bureau of Statistics reported. That was just above the 50 cut off for expansion versus contraction on a scale up to 100. Another, private sector, survey also was at 50.1 for December.

    The better-than-expected readings partly reflect easing pressure due to an extended truce in trade tensions with the U.S. They also suggest manufacturers ramped up production ahead of New Year holidays, when many companies close for days. China’s Lunar New Year falls in mid-February this year.

    In comments to a new year’s gathering carried Wednesday by China’s state media, President Xi Jinping, vowed to promote “high-quality development” and to carry out “more positive macroeconomic policies” while ensuring social harmony and stability.

    The world’s second largest economy is forecast to grow at a pace just below the official target of about 5% this year, supported by strong activity in high-tech industries and exports. The official PMI for high-tech manufacturing stood at 52.5 in December, up 2.4 percentage points from the previous month.

    The report said the PMIs for both equipment manufacturing and the consumer goods industry reached 50.4.

    The separate report by RatingDog, a Chinese credit research and analysis company based in the southern city of Shenzhen, said that despite an increase in overall orders, new export sales fell slightly and hiring weakened.

    “Overall, the manufacturing sector regained growth at the end of 2025,” RatingDog’s founder Yao Yu said in a statement. “However, the improvement was marginal, with the impact of promotions and new products appearing impulse-driven and their sustainability requiring observation.”

    The National Statistic Bureau said the PMI measures for food, textiles, clothing and electronics were above a relatively strong 53.

    However, while large manufacturers increased their output, factory activity for the small and mid-sized enterprises that account for the lion’s share of employment in China remained in contractionary territory. As consumers cut back on spending, conditions for retailers and restaurants also deteriorated, the report said.

    Some economists believe China’s economy is growing more slowly than official figures suggest. Its leaders are grappling with long-term challenges including a yearslong slump in the country’s property sector and excess capacity in many industries, including automaking, that has led to damaging price wars.

    Higher costs for raw materials, especially for metals, has put pressure on company profit margins, the RatingDog report said. It noted that exporters had raised prices for the first time in three months to help offset those higher costs.

    The upturn in activity may be short-lived as it appears to be helped by a slight increase in government spending, Julian Evans-Pritchard of Capital Economics said in a report.

    “The big picture is that the structural headwinds from the property downturn and industrial overcapacity are set to persist in 2026 and there appears to be limited appetite among policymakers for a big increase in demand-side stimulus,” he said.

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  • Telluride Ski Resort in Colorado to close Saturday due to labor dispute

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    FORT COLLINS, Colo. — Telluride, one of the best-known ski resorts in the Western U.S., plans to close in the coming days due to a labor dispute between its owner and the ski patrol union.

    The Telluride Professional Ski Patrol Association voted Tuesday to strike Saturday after contract negotiations since June failed to yield an agreement on pay. With no more talks planned before the weekend, Telluride Ski Resort said it will not open that day.

    “We are concerned that any organization, particularly one that exists to help people, would do something that will have such a devastating effect on our community,” owner Chuck Horning said Wednesday in a statement.

    It was not immediately clear whether the closure will last longer. Resort officials were working on a plan to reopen even if the strike continues, according to the statement.

    The patrollers are seeking to be paid more in line with their counterparts at other resorts in the region.

    The union wants starting pay to rise from $21 to $28 per hour, and for wages for patrollers with more than 30 years of experience to increase from $30-$36 per hour to $39-$48.60 per hour.

    While resort officials sought to lay blame for the impending closure on the union, Andy Dennis, interim safety director and spokesperson for patrollers’ association, said it lies with Horning.

    “He’s being a bully. This is what bullies do, take their toys and run,” Dennis said. “All he has to do is give us a fair contract, and this would all be over.”

    Ski patrollers sometimes argue for more pay on the grounds that the cost of living is high in ski towns and they are responsible for people’s safety. Patrollers’ duties include attending to injured skiers and the controlled release of avalanches with explosives when nobody is in range.

    Even without a strike, Telluride has yet to get going fully this season, with unusually warm weather meaning just 20 of the resort’s 149 trails have been able to open.

    Patrollers around the Rocky Mountain region have been voting on unionizing recently.

    Last year an almost two-week strike closed many runs and caused long lift lines at Utah’s Park City Mountain Resort. That strike ended when Colorado-based Vail Resorts acceded to demands including a $2-an-hour base pay increase and raises for senior ski patrollers.

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  • Kansas tribe ends nearly $30 million deal with ICE

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    A Kansas tribe said it has walked away from a nearly $30 million federal contract to come up with preliminary designs for immigrant detention centers after facing a wave of online criticism.

    The Prairie Band Potawatomi Nation ‘s announcement Wednesday night came just over a week after the economic development leaders who brokered the deal with U.S. Immigration and Customs Enforcement were fired.

    With some Native Americans swept up and detained in recent ICE raids, the deal was derided online as “disgusting” and “cruel.” Many in Indian Country also questioned how a tribe whose own ancestors were uprooted two centuries ago from the Great Lakes region and corralled on a reservation south of Topeka could participate in the Trump administration’s mass deportation efforts.

    Tribal Chairman Joseph “Zeke” Rupnick nodded to the historic issues last week in a video address that called reservations “the government’s first attempts at detention centers.” In an update Wednesday, he announced that he was “happy to share that our Nation has successfully exited all third-party related interests affiliated with ICE.”

    The Prairie Band Potawatomi has a range of businesses that provide health care management staffing, general contracting and even interior design. And Rupnick said in his latest address that tribal officials plan to meet in January about how to ensure “economic interests do not come into conflict with our values in the future.”

    A tribal offshoot hired by ICE — KPB Services LLC — was established in April in Holton, Kansas, by Ernest C. Woodward Jr., a former naval officer who markets himself as a “go-to” adviser for tribes and affiliated companies seeking to land federal contracts.

    The Prairie Band Potawatomi Nation said in 2017 that Woodward’s firm advised it on its acquisition of another government contractor, Mill Creek LLC, which specializes in outfitting federal buildings and the military with office furniture and medical equipment.

    Woodward also is listed as the chief operating officer of the Florida branch of Prairie Band Construction Inc., which was registered in September.

    Attempts to locate Woodward were unsuccessful. A spokesperson for KPB said Woodward is no longer with the LLC but she declined to say whether he was terminated. Woodward did not respond to an email sent to another consulting firm he’s affiliated with, Virginia-based Chinkapin Partners LLC.

    A spokesperson for the Prairie Band Potawatomi Nation said the tribe divested from KPB. While that company still has the contract, “Prairie Band no longer has a stake,” the spokesperson said.

    The spokesperson said Woodward is no longer with the tribe’s limited liability corporation, but she declined to say whether he was terminated.

    The ICE contract initially was awarded in October for $19 million for unspecified “due diligence and concept designs” for processing centers and detention centers throughout the U.S., according to a one-sentence description of the work on the federal government’s real-time contracting database. It was modified a month later to increase the payout ceiling to $29.9 million.

    Sole-source contracts above $30 million require additional justification under federal contracting rules.

    Tribal leaders and the U.S. Department of Homeland Security haven’t responded to detailed questions about why the firm was selected for such a big contract without having to compete for the work as federal contracting normally requires. It’s also unclear what the Tribal Council knew about the contract.

    “That process of internal auditing is really just beginning,” the tribal spokesperson said.

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    Hollingsworth reported from Mission, Kansas, and Goodman from Miami.

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  • Postal service plans to open last-mile delivery network to more shippers in money-raising move

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    The U.S. Postal Service said Wednesday it intends to open its “last-mile” delivery network, the most expensive part of the shipping process, to large and small shippers, expanding beyond current arrangements with giants such as Amazon and UPS.

    The goal is to diversify and boost revenue through the postal carriers’ final leg of delivery to millions of individual homes and businesses.

    The postal service expects to accept bids in late January or early February from other shippers, which will propose their own mix of volume, price and delivery timing. The agency will award contracts later in 2026, based on where it can provide same- and next-day delivery service at a profit.

    “As part of our universal service obligation, we deliver to more than 170 million addresses at least six days a week, so we are the natural leader in last-mile delivery,” said David Steiner, the postmaster general and CEO. “We want to make this valuable service available to a wide range of customers that see the worth of last mile access -other logistics companies and retailers large and small.”

    Steiner has said the 250-year-old postal service should expand its revenue base by capitalizing on its long-standing legal obligation to deliver to every address, as well as recent modernization investments in package processing and delivery capacity.

    The agency reported net losses of $9 billion this budget year, a slight improvement from the previous year’s $9.5 billion. The postal service is an independent and mostly self-supporting federal agency.

    Under the new plan, shippers would have access to more than 18,000 postal service “delivery distribution units,” entry points throughout the network where mail and packages are sorted for delivery to a local area.

    Steiner called the concept a “compelling value proposition for many shippers who we know are wrestling with the need to deliver to their customer as quickly and reliably as possible,” predicting it will ultimately help lower their costs.

    The postal service said it still plans to gauge interest in the concept and fine-tune the details.

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  • iRobot files for bankruptcy protection; will be private under restructuring

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    Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process

    Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process.

    IRobot, which became well known for its robotic vacuums, has struggled of late, dealing with increased competition, layoffs and a declining stock price. In 2022 Amazon announced that it had agreed to buy iRobot for about $1.7 billion, but that deal was called off last year. Amazon blamed “undue and disproportionate regulatory hurdles” after the European Union signaled its objection to the transaction.

    Amazon said at the time that it would pay iRobot a previously agreed termination fee of $94 million and iRobot said that it would undergo a restructuring to help stabilize the company.

    iRobot said Sunday that it is now being acquired by Picea through a court-supervised process. Picea, or Shenzhen PICEA Robotics Co., Ltd., is iRobot’s primary contract manufacturer.. With facilities in China and Vietnam, Picea has built and sold more than 20 million robotic vacuum cleaners.

    “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners,” iRobot CEO Gary Cohen said in a statement.

    iRobot said it will continue to operate as normal during the Chapter 11 process and doesn’t expect any disruption to its app functionality, customer programs, global partners, supply chain relationships, or ongoing product support.

    The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.

    In premarket trading, iRobot shares slid nearly 70% to $1.31.

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  • Broadway musicians reach labor deal, averting a strike

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    NEW YORK — NEW YORK (AP) — The union representing Broadway’s musicians reached a tentative labor agreement with commercial producers on Thursday, averting a potentially crippling strike that would have silenced nearly two dozen musicals.

    The American Federation of Musicians Local 802 — which represents 1,200 musicians — had threatened to strike if they didn’t have a new contract by the morning, after going into mediation Wednesday.

    Early Thursday, the union said it had struck a tentative deal that includes wage increases and contribution increases to the health fund.

    “This three-year agreement provides meaningful wage and health benefit increases that will preserve crucial access to healthcare for our musicians while maintaining the strong contract protections that empower musicians to build a steady career on Broadway,” AFM Local 802 President Bob Suttmann said in a statement.

    The 23 shows that could have gone silent ranged from megahits like “Hamilton” and “The Lion King” to newcomers like “Queen of Versailles” and “Chess,” which are still in previews. Plays would not have been automatically impacted.

    It was the second Broadway labor deal in less than a week. Labor tensions had already seemed cool after Actors’ Equity Association — which represents over 51,000 members, including singers, actors, dancers and stage managers — announced a new three-year agreement with producers over the weekend.

    Members of both unions had been working under expired contracts. The musicians’ contract expired on Aug. 31, and the Equity contract expired Sept. 28.

    The health of Broadway — once very much in doubt due to the coronavirus pandemic that shut down theaters for some 18 months — is now very good, at least in terms of box office. It has been a long road back from the days when theaters were shuttered and the future looked bleak, but the 2024-2025 season took in $1.9 billion — the highest-grossing season in recorded history, overtaking the pre-pandemic previous high of $1.8 billion during the 2018-2019 season.

    The unions pointed to the financial health of Broadway to argue that producers could afford to up pay and benefits for musicians and actors. Producers, represented by The Broadway League, had countered that the restored health of Broadway could be endangered by potential ticket price increases to accommodate the demands.

    The most recent major strike on Broadway was in late 2007, when a 19-day walkout by stagehands dimmed the lights on more than two dozen shows and cost producers and the city millions of dollars in lost revenue.

    On Wednesday, three U.S. senators from New York and New Jersey — Democrats Kirsten Gillibrand, Cory Booker and Andy Kim — wrote to both sides, urging them to “participate in good faith negotiations and continued communication.” The senators noted that Broadway supports nearly 100,000 jobs and is “an essential cornerstone in the economic well-being of surrounding businesses and sectors, including hospitality, retail and transportation.”

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  • Newsom signs bill giving 800K Uber, Lyft drivers in California the right to unionize

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    SACRAMENTO, Calif. (AP) — More than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure signed Friday by Gov. Gavin Newsom.

    Supporters said the new law will open a path for the largest expansion of private sector collective bargaining rights in the state’s history. The legislation is a significant compromise in the yearslong battle between labor unions and tech companies.

    California is the second state where Uber and Lyft drivers can unionize as independent contractors. Massachusetts voters passed a ballot referendum in November allowing unionization, while drivers in Illinois and Minnesota are pushing for similar rights.

    Newsom announced the signing at an unrelated news conference at University of California, Berkeley. The new law will give drivers “dignity and a say about their future,” he said.

    The new law is part of an agreement made in September between Newsom, state lawmakers and the Service Employees International Union, along with rideshare companies Uber and Lyft. In exchange, Newsom also signed a measure supported by Uber and Lyft to significantly cut the companies’ insurance requirements for accidents caused by underinsured drivers.

    Lyft CEO David Risher said in September that the new insurance rates are expected to save the company $200 million and could help reduce fares.

    Uber and Lyft fares in California are consistently higher than in other parts of the U.S. because of insurance requirements, the companies say. Uber has said that nearly one-third of every ride fare in the state goes toward paying for state-mandated insurance.

    Labor unions and tech companies have fought for years over drivers’ rights. In July of last year, the California Supreme Court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. A 2019 law mandated that Uber and Lyft provide drivers with benefits, but voters reversed it at the ballot in 2020.

    The collective bargaining measure now allows rideshare workers in California to join a union while still being classified as independent contractors and requires gig companies to bargain in good faith. The new law doesn’t apply to drivers for delivery apps like DoorDash.

    The insurance measure will reduce the coverage requirement for accidents caused by uninsured or underinsured drivers from $1 million to $60,000 per individual and $300,000 per accident.

    The two measures “together represent a compromise that lowers costs for riders while creating stronger voices for drivers —demonstrating how industry, labor, and lawmakers can work together to deliver real solutions,” Ramona Prieto, head of public policy for California at Uber, said in a statement.

    Rideshare Drivers United, a Los Angeles-based advocacy group of 20,000 drivers, said the collective bargaining law isn’t strong enough to give workers a fair contract. The group wanted to require the companies to report its data on pay to the state.

    New York City drivers’ pay increased after the city started requiring the companies to report how much an average driver earns, the group said.

    “Drivers really need the backing of the state to ensure that not only is a wage proposal actually going to help drivers, but that there is progress in drivers’ pay over the years,” said Nicole Moore, president of Rideshare Drivers United.

    Other drivers said the legislation will provide more job safety and benefits.

    Many who support unionization said they have faced a slew of issues, including being “deactivated” from their apps without an explanation or fair appeals process when a passenger complains.

    “Drivers have had no way to fight back against the gig companies taking more and more of the passenger fare, or to challenge unfair deactivations that cost us our livelihoods,” Ana Barragan, a gig driver from Los Angeles, said in a statement. “We’ve worked long hours, faced disrespect, and had no voice, just silence on the other end of the app. But now, with the right to organize a strong, democratic union, I feel hope.”

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  • CSX railroad replaces CEO after investor pressure and poor performance as Union Pacific merger looms

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    CSX railroad announced Monday that it had replaced its CEO less than two months after an investment fund urged it to either find another railroad to merge with to better compete with the proposed transcontinental Union Pacific railroad or fire outgoing CEO Joe Hinrichs.

    The outgoing CEO, who came to the railroad in 2022 after a long career with Ford, focused on repairing CSX’s relationship with its workers and labor unions and unifying the team after a bitter contract fight. But Ancora Holdings, which helped spur major changes at Norfolk Southern, said CSX’s operating performance deteriorated significantly under Hinrichs’ leadership. Hinrichs resigned to clear the way for Steve Angel to become CEO effective Sunday.

    Angel, 70, also comes from outside the rail industry although earlier in his career he oversaw GE’s locomotive building unit, so he does have that experience. CSX said he has 45 years experience leading large public companies, including most recently as CEO of Linde and Praxair that provide industrial gasses to other companies.

    “We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation,” the railroad’s board Chairman John Zillmer said.

    CSX has been under pressure from Ancora and other investors since Union Pacific announced its $85 billion deal to acquire Norfolk Southern, which is CSX’s rival in the eastern United States. But both BNSF and CPKC railroads said they aren’t interested in a merger right now.

    Ancora said CSX has delivered disappointing shareholder returns and poor financial performance during Hinrichs’ tenure. But over the past year, CSX was working on two major construction projects — repairs from Hurricane Helene and a major tunnel renovation in Baltimore — that disrupted the railroad. Both those projects were just completed this month, so CSX’s performance was expected to improve in the fourth quarter.

    Even though he’s not a railroader, Ancora praised Angel’s hiring because of his experience with mergers and acquisitions. The top executives at Ancora, Frederick D. DiSanto and James Chadwick, said in their statement that they believe Hinrichs “botched the opportunity” to merge with another railroad and may have even fought the idea. They said Angel is expected to be more aggressive at pursuing a deal and that he will re-evaluate the railroad’s leadership team.

    “With President Donald Trump and other policymakers recently expressing enthusiasm for the benefits of a transcontinental railroad, CSX and other Class I railroads have no choice but to embrace the industry’s new realities,” the Ancora executives said. “Although Steve Angel is not a railroader by trade, his M&A pedigree and value creation record indicate his appointment is an initial step in the right direction for CSX.”

    Angel promised to make improvements at the Jacksonville, Florida-based company, which is one of the six largest railroads in North America.

    “My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders,” Angel said in a statement.

    Ancora said it continues to buy more CSX shares and hopes to develop a better relationship with the railroad. Ancora holds three seats on Norfolk Southern’s board after running a proxy campaign there to oust the previous CEO at that railroad, so the investment fund had input on the Union Pacific-Norfolk Southern merger.

    CSX shares gained more than 3% Monday after the new CEO was announced.

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  • Mystery surrounds $1.2B Army contract to build huge detention tent camp in Texas

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    WASHINGTON — When President Donald Trump’s administration last month awarded a contract worth up to $1.2 billion to build and operate what it says will become the nation’s largest immigration detention complex, it didn’t turn to a large government contractor or even a firm that specializes in private prisons.

    Instead, it handed the project on a military base to Acquisition Logistics LLC, a small business that has no listed experience running a correction facility and had never won a federal contract worth more than $16 million. The company also lacks a functioning website and lists as its address a modest home in suburban Virginia owned by a 77-year-old retired Navy flight officer.

    The mystery over the award only deepened last week as the new facility began to accept its first detainees. The Pentagon has refused to release the contract or explain why it selected Acquisition Logistics over a dozen other bidders to build the massive tent camp at Fort Bliss in west Texas. At least one competitor has filed a complaint.

    The secretive — and brisk — contracting process is emblematic, experts said, of the government’s broader rush to fulfill the Republican president’s pledge to arrest and deport an estimated 10 million migrants living in the U.S. without permanent legal status. As part of that push, the government is turning increasingly to the military to handle tasks that had traditionally been left to civilian agencies.

    A member of Congress who recently toured the camp said she was concerned that such a small and inexperienced firm had been entrusted to build and run a facility expected to house up to 5,000 migrants.

    “It’s far too easy for standards to slip,” said Rep. Veronica Escobar, a Democrat whose district includes Fort Bliss. “Private facilities far too frequently operate with a profit margin in mind as opposed to a governmental facility.”

    Attorney Joshua Schnell, who specializes in federal contracting law, said he was troubled that the Trump administration has provided so little information about the facility.

    “The lack of transparency about this contract leads to legitimate questions about why the Army would award such a large contract to a company without a website or any other publicly available information demonstrating its ability to perform such a complicated project,” he said.

    Ken A. Wagner, the president and CEO of Acquisition Logistics, did not respond to phone messages or emails. No one answered the door at his three-bedroom house listed as his company’s headquarters. Virginia records list Wagner as an owner of the business, though it’s unclear whether he might have partners.

    Defense Secretary Pete Hegseth approved using Fort Bliss for the new detention center, and the administration has hopes to build more at other bases. A spokesperson for the Army declined to discuss its deal with Acquisition Logistics or reveal details about the camp’s construction, citing the litigation over the company’s qualifications.

    The Department of Homeland Security, which includes U.S. Immigration and Customs Enforcement, declined to answer questions about the detention camp it oversees.

    Named Camp East Montana for the closest road, the facility is being built in the sand and scrub Chihuahuan Desert, where summertime temperatures can exceed 100 degrees Fahrenheit and heat-related deaths are common. The 60-acre (24-hectare) site is near the U.S.-Mexico border and the El Paso International Airport, a key hub for deportation flights.

    The camp has drawn comparisons to “Alligator Alcatraz,” a $245 million tent complex erected to hold ICE detainees in the Florida Everglades. That facility has been the subject of complaints about unsanitary conditions and lawsuits. A federal judge recently ordered that facility to be shut down.

    The vast majority of the roughly 57,000 migrants detained by ICE are housed at private prisons operated by companies like Florida’s Geo Group and Tennessee-based CoreCivic. As those facilities fill up, ICE is also exploring temporary options at military bases in California, New York and Utah.

    At Fort Bliss, construction began within days of the Army issuing the contract on July 18. Site work began months earlier, before Congress had passed Trump’s big tax and spending cuts bill, which includes a record $45 billion for immigration enforcement. The Defense Department announcement specified only that the Army was financing the initial $232 million for the first 1,000 beds at the complex.

    Three white tents, each about 810 feet (250 meters) long, have been erected, according to satellite imagery examined by The Associated Press. A half dozen smaller buildings surround them.

    Setareh Ghandehari, a spokesperson for the advocacy group Detention Watch, said the use of military bases hearkens back to World War II, when Japanese Americans were imprisoned at Army camps including Fort Bliss. She said military facilities are especially prone to abuse and neglect because families and loved ones have difficulty accessing them.

    “Conditions at all detention facilities are inherently awful,” Ghandehari said. “But when there’s less access and oversight, it creates the potential for even more abuse.”

    A June 9 solicitation notice for the Fort Bliss project specified the contractor will be responsible for building and operating the detention center, including providing security and medical care. The document also requires strict secrecy, ordering the contractor inform ICE to respond to any calls from members of Congress or the news media.

    The bidding was open only to small firms such as Acquisition Logistics, which receives preferential status because it’s classified as a veteran and Hispanic-owned small disadvantaged business.

    Though Trump’s administration has fought to ban diversity, equity and inclusion programs, federal contracting rules include set-asides for small businesses owned by women or minorities. For a firm to compete for such contracts, at least 51% of it must be owned by people belonging to a federally designated disadvantaged racial or ethnic group.

    One of the losing bidders, Texas-based Gemini Tech Services, filed a protest challenging the award and the Army’s rushed construction timeline with the U.S. Government Accountability Office, Congress’ independent oversight arm that resolves such disputes.

    Gemini alleges Acquisition Logistics lacks the experience, staffing and resources to perform the work, according to a person familiar with the complaint who wasn’t authorized to discuss the matter and spoke on the condition of anonymity. Acquisition Logistics’ past jobs include repairing small boats for the Air Force, providing information technology support to the Defense Department and building temporary offices to aid with immigration enforcement, federal records show.

    Gemini and its lawyer didn’t respond to messages seeking comment.

    A ruling by the GAO on whether to sustain, dismiss or require corrective action is not expected before November. A legal appeal is also pending with a U.S. federal court in Washington.

    Schnell, the contracting lawyer, said Acquisitions Logistics may be working with a larger company. Geo Group Inc. and CoreCivic Corp., the nation’s biggest for-profit prison operators, have expressed interest in contracting with the Pentagon to house migrants.

    In an earnings call this month, Geo Group CEO George Zoley said his company had teamed up with an established Pentagon contractor. Zoley didn’t name the company, and Geo Group didn’t respond to repeated requests asking with whom it had partnered.

    A spokesperson for CoreCivic said it wasn’t partnering with Acquisition Logistics or Gemini.

    ___

    Goodman reported from Miami. Associated Press writer Alan Suderman in Richmond, Va., and Morgan Lee in Santa Fe, N.M., contributed to this report.

    ___

    Contact the AP’s global investigative team at Investigative@ap.org or https://www.ap.org/tips/.

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  • Mystery surrounds $1.2 billion Army contract to build huge detention tent camp in Texas desert

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    WASHINGTON — When President Donald Trump’s administration last month awarded a contract worth up to $1.2 billion to build and operate what it says will become the nation’s largest immigration detention complex, it didn’t turn to a large government contractor or even a firm that specializes in private prisons.

    Instead, it handed the project on a military base to Acquisition Logistics LLC, a small business that has no listed experience running a correction facility and had never won a federal contract worth more than $16 million. The company also lacks a functioning website and lists as its address a modest home in suburban Virginia owned by a 77-year-old retired Navy flight officer.

    The mystery over the award only deepened last week as the new facility began to accept its first detainees. The Pentagon has refused to release the contract or explain why it selected Acquisition Logistics over a dozen other bidders to build the massive tent camp at Fort Bliss in west Texas. At least one competitor has filed a complaint.

    The secretive — and brisk — contracting process is emblematic, experts said, of the government’s broader rush to fulfill the Republican president’s pledge to arrest and deport an estimated 10 million migrants living in the U.S. without permanent legal status. As part of that push, the government is turning increasingly to the military to handle tasks that had traditionally been left to civilian agencies.

    A member of Congress who recently toured the camp said she was concerned that such a small and inexperienced firm had been entrusted to build and run a facility expected to house up to 5,000 migrants.

    “It’s far too easy for standards to slip,” said Rep. Veronica Escobar, a Democrat whose district includes Fort Bliss. “Private facilities far too frequently operate with a profit margin in mind as opposed to a governmental facility.”

    Attorney Joshua Schnell, who specializes in federal contracting law, said he was troubled that the Trump administration has provided so little information about the facility.

    “The lack of transparency about this contract leads to legitimate questions about why the Army would award such a large contract to a company without a website or any other publicly available information demonstrating its ability to perform such a complicated project,” he said.

    Ken A. Wagner, the president and CEO of Acquisition Logistics, did not respond to phone messages or emails. No one answered the door at his three-bedroom house listed as his company’s headquarters. Virginia records list Wagner as an owner of the business, though it’s unclear whether he might have partners.

    Defense Secretary Pete Hegseth approved using Fort Bliss for the new detention center, and the administration has hopes to build more at other bases. A spokesperson for the Army declined to discuss its deal with Acquisition Logistics or reveal details about the camp’s construction, citing the litigation over the company’s qualifications.

    The Department of Homeland Security, which includes U.S. Immigration and Customs Enforcement, declined to answer questions about the detention camp it oversees.

    Named Camp East Montana for the closest road, the facility is being built in the sand and scrub Chihuahuan Desert, where summertime temperatures can exceed 100 degrees Fahrenheit and heat-related deaths are common. The 60-acre (24-hectare) site is near the U.S.-Mexico border and the El Paso International Airport, a key hub for deportation flights.

    The camp has drawn comparisons to “Alligator Alcatraz,” a $245 million tent complex erected to hold ICE detainees in the Florida Everglades. That facility has been the subject of complaints about unsanitary conditions and lawsuits. A federal judge recently ordered that facility to be shut down.

    The vast majority of the roughly 57,000 migrants detained by ICE are housed at private prisons operated by companies like Florida’s Geo Group and Tennessee-based CoreCivic. As those facilities fill up, ICE is also exploring temporary options at military bases in California, New York and Utah.

    At Fort Bliss, construction began within days of the Army issuing the contract on July 18. Site work began months earlier, before Congress had passed Trump’s big tax and spending cuts bill, which includes a record $45 billion for immigration enforcement. The Defense Department announcement specified only that the Army was financing the initial $232 million for the first 1,000 beds at the complex.

    Three white tents, each about 810 feet (250 meters) long, have been erected, according to satellite imagery examined by The Associated Press. A half dozen smaller buildings surround them.

    Setareh Ghandehari, a spokesperson for the advocacy group Detention Watch, said the use of military bases harkens back to World War II, when Japanese Americans were imprisoned at Army camps including Fort Bliss. She said military facilities are especially prone to abuse and neglect because families and loved ones have difficulty accessing them.

    “Conditions at all detention facilities are inherently awful,” Ghandehari said. “But when there’s less access and oversight, it creates the potential for even more abuse.”

    A June 9 solicitation notice for the Fort Bliss project specified the contractor will be responsible for building and operating the detention center, including providing security and medical care. The document also requires strict secrecy, ordering the contractor inform ICE to respond to any calls from members of Congress or the news media.

    The bidding was open only to small firms such as Acquisition Logistics, which receives preferential status because it’s classified as a veteran and Hispanic-owned small disadvantaged business.

    Though Trump’s administration has fought to ban diversity, equity and inclusion programs, federal contracting rules include set-asides for small businesses owned by women or minorities. For a firm to compete for such contracts, at least 51% of it must be owned by people belonging to a federally designated disadvantaged racial or ethnic group.

    One of the losing bidders, Texas-based Gemini Tech Services, filed a protest challenging the award and the Army’s rushed construction timeline with the U.S. Government Accountability Office, Congress’ independent oversight arm that resolves such disputes.

    Gemini alleges Acquisition Logistics lacks the experience, staffing and resources to perform the work, according to a person familiar with the complaint who wasn’t authorized to discuss the matter and spoke on the condition of anonymity. Acquisition Logistics’ past jobs include repairing small boats for the Air Force, providing information technology support to the Defense Department and building temporary offices to aid with immigration enforcement, federal records show.

    Gemini and its lawyer didn’t respond to messages seeking comment.

    A ruling by the GAO on whether to sustain, dismiss or require corrective action is not expected before November. A legal appeal is also pending with a U.S. federal court in Washington.

    Schnell, the contracting lawyer, said Acquisitions Logistics may be working with a larger company. Geo Group Inc. and CoreCivic Corp., the nation’s biggest for-profit prison operators, have expressed interest in contracting with the Pentagon to house migrants.

    In an earnings call this month, Geo Group CEO George Zoley said his company had teamed up with an established Pentagon contractor. Zoley didn’t name the company, and Geo Group didn’t respond to repeated requests asking with whom it had partnered.

    A spokesperson for CoreCivic said it wasn’t partnering with Acquisition Logistics or Gemini.

    ___

    Goodman reported from Miami. AP reporter Alan Suderman in Richmond, Va., contributed to this report.

    ___

    Contact the AP’s global investigative team at Investigative@ap.org or https://www.ap.org/tips/.

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  • China factory indicator falls in May, suggesting growth has faltered

    China factory indicator falls in May, suggesting growth has faltered

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    Factory activity in China slowed more than expected in May, suggesting further pressure on an economy already burdened by a prolonged crisis in the property industry, according to an official survey released Friday.

    The manufacturing purchasing managers index from the China Federation of Logistics and Purchasing fell to 49.5 from 50.4 in April on a scale up to 100 where 50 marks the break between expansion and contraction.

    The main reason for the slowdown was a drop in output. Weaker new orders and export orders suggests slack demand.

    Analysts’ forecasts had put the manufacturing PMI at just above 50, or still in expansionary territory after the economy grew at a quicker than forecast annual pace of 5.3% in the first quarter of the year.

    But uncertainties over access to the U.S. market have been growing as President Joe Biden and his rival for re-election, former President Donald Trump, both double down on their support for keeping or raising stiff tariffs on imports from China.

    “The latter (new orders and export orders) may point to near-term declines in exports, but it is more likely to reflect sentiment effects due to Biden’s new tariffs,” Zichun Huang of Capital Economics said in a report.

    China recently relaxed down-payment requirements and cut minimum interest rates on some home loans as part of its effort to stabilize the housing market. Housing prices have been falling, construction has stalled and dozens of developers have defaulted on their debts after the government cracked down several years ago on excess borrowing.

    Friday’s survey showed construction slowing slightly.

    Chinese families keep much of their personal wealth in property and the prolonged downturn has gutted the market. Job losses due to the pandemic and other factors, such as a tightening of controls on technology-related businesses have also hit spending.

    Many economists say longer term reforms are needed to raise consume confidence and sustain long-term growth. Earlier this week, the International Monetary Fund raised its forecast for China’s economic growth this year to 5%, but warned that more needs to be done to shift the economy away from a reliance on exports and investment in construction as the country’s population ages.

    “We think a step-up in fiscal support and new property stimulus will spur a renewed pick-up over the coming months. But this may not be sustained for long given the structural challenges facing the economy,” Huang said.

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  • Stock market today: Asian shares gain despite Wall Street’s tech-led retreat

    Stock market today: Asian shares gain despite Wall Street’s tech-led retreat

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    Asian shares advanced on Thursday even after sinking technology stocks sent Wall Street lower in the S&P 500’s worse losing streak since the start of the year.

    U.S. futures were lower, while oil prices gained.

    Tokyo’s Nikkei 225 climbed 0.3% to 38,079.70 and the Hang Seng in Hong Kong gained 1.3% to 16,468.07.

    The Shanghai Composite index added 0.6% to 3,089.02.

    South Korea’s Kospi led the region’s gains, surging 2.2% to 2,642.02.

    In Australia, the S&P/ASX 500 rose 0.4% to 7,638.10.

    On Wednesday, the S&P 500 lost 0.6%, to 5,022.21. It’s down 4.4% since setting a record late last month.

    The Dow Jones Industrial Average slipped 0.1% to 37,753.31, and the Nasdaq composite sank 1.1% to 15,683.37.

    Tech stocks slumped after ASML, a Dutch company that’s a major supplier to the semiconductor industry, reported weaker orders for the start of 2024 than analysts expected. Its stock trading in the United States slumped 7.1%.

    Nvidia dropped 3.9%, and Broadcom sank 3.5% to serve as the two heaviest weights on the S&P 500.

    The weakness for tech overshadowed stronger-than-expected profit reports from some big companies, including United Airlines. It soared 17.4% after reporting stronger results for the start of the year than analysts expected, lifted by strong demand from business fliers.

    Sharp tumbles for oil prices lessened investors’ worries about inflation, which in turn helped Treasury yields ease.

    The 10-year Treasury yield sank to 4.58% from 4.67% late Tuesday. The two-year yield, which moves more closely with expectations for the Fed, fell to 4.92% from 4.99%.

    Yields on Tuesday had returned to where they were in November after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while. It wants to get more confidence that inflation is sustainably heading toward its target of 2%. Its main interest rate has been sitting at its highest level since 2001.

    High interest rates hurt prices for investments and increase the risk of a recession, but Fed officials are concerned after a string of reports this year has shown inflation remaining hotter than forecast.

    Traders are now mostly expecting just one or two cuts to interest rates from the Federal Reserve this year, according to data from CME Group. That’s down from forecasts for six or more at the start of the year.

    With little near-term help expected from an easing of interest rates, companies will need to deliver fatter profits to justify their big runs in stock price since autumn.

    Travelers slumped 7.4% after the insurer’s quarterly results fell short of forecasts. It had to contend with more losses from catastrophes.

    J.B. Hunt Transport Services fell 8.1% after reporting weaker revenue and results than expected. It was hurt in part by competition in the eastern part of the country and by higher wages for workers and other costs.

    On the winning side of Wall Street was Omnicom Group. It rose 1.6% after reporting stronger profit for the latest quarter than analysts expected. The marketing and communications company highlighted growth trends in most markets around the world, outside the Middle East and Africa.

    The stock of Donald Trump’s social media company also continued to swing sharply, this time jumping 15.6%. That followed two straight losses of more than 14%. Experts say the stock is caught up in frenzied trading driven more by public sentiment around the former president than by the business prospects of the company.

    In oil trading, U.S. benchmark crude picked up 8 cents to $82.77 per barrel. It had lost $2.67 on Wednesday.

    Brent crude, the international standard, gained 16 cents to $87.45 per barrel.

    The U.S. dollar slipped to 154.12 Japanese yen from 154.38 yen. The euro rose to $1.0689 from $1.0673.

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  • US online retailer Zulily says it will go into liquidation, surprising customers

    US online retailer Zulily says it will go into liquidation, surprising customers

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    The U.S. ecommerce company Zulily says it is closing down, surprising customers, after efforts to salvage the business failed

    SEATTLE — The U.S. online retailer Zulily is closing down, surprising customers and laying off hundreds of workers after efforts to salvage the business failed.

    The Seattle-based company said in a notice on its website that it had tried to fill all pending orders and expected to manage that within the coming two weeks. Zulily said it was trying to ensure that orders that could not be filled were cancelled and refunded and offered a contact for customers who did not get their orders or refunds.

    “This decision was not easy nor was it entered into lightly. However, given the challenging business environment in which Zulily operated, and the corresponding financial instability, Zulily decided to take immediate and swift action,” said the notice, signed by Ryan C. Baker, vice president at management consultant Douglas Wilson Companies, which is handling the receivership for the company.

    Founded in 2010 by Darrell Cavens and Mark Vadon, Zulily made a splash with products catering to families with young children and staged a successful IPO on the Nasdaq in 2013. But it was taken private after it was acquired in 2015 for $2.4 billion by QVC parent company Qurate, formerly known as Liberty Interactive. Zulily’s CEO Terry Boyle left the company at the end of October as financial troubles mounted following its acquisition by private equity firm Regent from Qurate in May.

    The company’s liquidation followed several rounds of layoffs as Zulily struggled to compete with Amazon.

    Instead of declaring bankruptcy, Zulily is using an alternative for winding down the business known as an Assignment for the Benefit of Creditors, or ABC. The company has transferred all its assets and business in trust to Zulily ABC, LLC, to pay creditors out of proceeds from selling them.

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  • Panama’s Assembly looks to revoke contract for Canadian mining company after public outcry

    Panama’s Assembly looks to revoke contract for Canadian mining company after public outcry

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    PANAMA CITY — Facing a second week of impassioned, nationwide protests, Panama’s National Assembly has nearly passed a new law revoking a controversial mining contract in an environmentally vulnerable part of country.

    The bill passed a second debate late on Wednesday and now faces a final vote Thursday in which no changes can be made.

    Panama’s legislature first agreed a contract extension with Canadian mining company First Quantum and it’s local subsidiary, Minera Panama, in March. The resulting protests — the largest since a cost of living crisis last July — have sparked a series of backtracks from President Laurentino Cortizo.

    The new bill not only repeals that contract but extends a moratorium on all concessions for mining activities until the country’s Code of Mineral Resources is reformed.

    Before legislators debated the extraordinary measure, Cortizo first proposed a national referendum on the contract. Eight lawsuits were also filed with Panama’s Supreme Court arguing it was unconstitutional.

    Initially it was unclear how persuasive environmental objections would prove against the mine’s demonstrated economic promise. It is the largest private investment in Panama’s history and already creates roughly 3% of the country’s gross domestic product.

    Now, however, popular protests have materialized into serious legislative and legal challenges, which pushed First Quantum’s shares into a 47% freefall since markets opened on the Toronto Stock Exchange at the start of this week.

    Critics warned using a new law to revoke the contract could leave the government liable to legal action from Minera Panama. If, however, the Supreme Court declared the contract unconstitutional, lawyers said it would be annulled without the risk of possible multi-million dollar lawsuits.

    While legislators argued, anti-riot police dispersed demonstrators around the Assembly building with rubber-bullet and tear gas. Earlier in the day nurses marched to the Supreme Court building to demand judges prioritize the constitutionality lawsuits.

    The contract would allow 20-40 more years of open pit copper mining across 13,000 hectares of forested land just 75 miles (120 kilometers) west of the capital, in the state of Colon. Environmentalists argue continued mining would imperil drinking water and destroy more forest.

    The mine is “in the middle of a jungle,” according to Minera Panama’s own contractor, Jan De Nu Group. In particular, it lies in Panama’s share of the Mesoamerican biological corridor, an important migratory route which studies estimate contains up to 10% of all known species.

    In the last two decades, Panama has already lost roughly 8.5% of its total tree cover, mostly to agriculture, according to satellite image analysis by Global Forest Watch. Almost the same amount again has been disturbed by industrial activity.

    While local protestors are concerned about drinking water, other advocates say the mine could threaten the Panama Canal, already driven by El Nino to its driest October since 1950.

    While Minera Panama’s manager insisted in a September open letter that four rivers lie between the mine and the canal, the canal’s administrator expressed concern earlier this year that their water sources might conflict.

    ____

    Follow AP’s climate coverage at: https://apnews.com/hub/climate-and-environment

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  • Takeaways of AP report on DEA probe of drug distributor accused of fueling opioid epidemic

    Takeaways of AP report on DEA probe of drug distributor accused of fueling opioid epidemic

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    SHREVEPORT, La. — The U.S. Drug Enforcement Administration has allowed one of the nation’s largest wholesale drug distributors to keep shipping addictive painkillers for nearly four years despite a judge’s recommendation to strip its license for turning a blind eye to thousands of suspicious opioid orders.

    The case has drawn attention to the involvement of a high-profile consultant the company had hired to stave off punishment and who is now DEA Administrator Anne Milgram’s top deputy.

    Here are the key takeaways:

    WHAT’S AT STAKE?

    A federal administrative law judge in August 2019 found that Morris & Dickson failed to flag thousands of suspicious, high-volume orders from pharmacies and recommended that it lose its license.

    Failure to follow DEA rules by Morris & Dickson and other major distributors has been blamed for leading to more than 700,000 American overdose deaths in the past two decades..

    The company said it overhauled its compliance system, canceled suspicious orders and sent daily emails to the DEA spelling out its actions. But Judge Charles W. Dorman said it was too little, too late, and issued a ruling to deter similar actions by other companies.

    “Acceptance of responsibility and evidence of remediation are not get-out-of-jail-free cards that erase the harm caused by years of cavalier disregard,” Dorman wrote in a 159-page ruling obtained by The Associated Press.

    WHO IS MORRIS & DICKSON?

    Shreveport, Louisiana-based Morris & Dickson is the U.S.’ fourth-largest drug distributor, with annual sales of more than $4 billion. But it trails a trio of pharmaceutical distributors known as the Big Three, all of whom agreed to pay the federal government more than $1 billion in fines and penalties for similar violations.

    Morris & Dickson officials have repeatedly said in court filings that the loss of its license would be a “virtual death sentence.”

    Among the more than 12,000 suspicious orders that Dorman said Morris & Dickson should have reported to the DEA were several placed by the Wilkinson Family Pharmacy in suburban New Orleans.

    In one month, March 2014, 42% of all prescriptions filled by Wilkinson were for controlled substances such as painkillers and 38% of those were paid for in cash.

    “Anybody with half a brain could’ve seen something wasn’t right,” said Dan Schneider, a retired pharmacist whose fight to hold drug companies accountable for the opioid crisis was featured in a Netflix documentary series.

    WHO IS LOUIS MILIONE?

    Louis Milione was named DEA’s principal deputy administrator in 2021. He had previously retired from the agency in 2017 after a storied 21-year career that included two years leading the division that controls the sale of highly addictive narcotics. Among his earlier achievements was running the overseas sting that in 2008 nabbed Russia’s notorious arms trafficker Viktor Bout.

    Morris & Dickson brought Milione as part of a $3 million contract after the DEA accused the company in 2018 of failing to flag thousands of suspicious, high-volume orders.

    Testifying in 2019 before federal Administrative Law Judge Charles W. Dorman, Milione argued that Morris & Dickson deserved to keep its license because it “spared no expense” to overhaul its compliance systems.

    WHAT DOES DEA SAY?

    The DEA did not respond to repeated requests to explain its handling of the case and whether Milione recused himself from any involvement in the matter.

    But neither Milgram nor two DEA administrators who preceded her have taken any regulatory action since Dorman’s 2019 recommendation. Former DEA officials told the AP that a nearly four-year delay is highly unusual, and that most such cases are resolved in half the time.

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  • Takeaways of AP report on DEA probe of drug distributor accused of fueling opioid epidemic

    Takeaways of AP report on DEA probe of drug distributor accused of fueling opioid epidemic

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    SHREVEPORT, La. — The U.S. Drug Enforcement Administration has allowed one of the nation’s largest wholesale drug distributors to keep shipping addictive painkillers for nearly four years despite a judge’s recommendation to strip its license for turning a blind eye to thousands of suspicious opioid orders.

    The case has drawn attention to the involvement of a high-profile consultant the company had hired to stave off punishment and who is now DEA Administrator Anne Milgram’s top deputy.

    Here are the key takeaways:

    WHAT’S AT STAKE?

    A federal administrative law judge in August 2019 found that Morris & Dickson failed to flag thousands of suspicious, high-volume orders from pharmacies and recommended that it lose its license.

    Failure to follow DEA rules by Morris & Dickson and other major distributors has been blamed for leading to more than 700,000 American overdose deaths in the past two decades..

    The company said it overhauled its compliance system, canceled suspicious orders and sent daily emails to the DEA spelling out its actions. But Judge Charles W. Dorman said it was too little, too late, and issued a ruling to deter similar actions by other companies.

    “Acceptance of responsibility and evidence of remediation are not get-out-of-jail-free cards that erase the harm caused by years of cavalier disregard,” Dorman wrote in a 159-page ruling obtained by The Associated Press.

    WHO IS MORRIS & DICKSON?

    Shreveport, Louisiana-based Morris & Dickson is the U.S.’ fourth-largest drug distributor, with annual sales of more than $4 billion. But it trails a trio of pharmaceutical distributors known as the Big Three, all of whom agreed to pay the federal government more than $1 billion in fines and penalties for similar violations.

    Morris & Dickson officials have repeatedly said in court filings that the loss of its license would be a “virtual death sentence.”

    Among the more than 12,000 suspicious orders that Dorman said Morris & Dickson should have reported to the DEA were several placed by the Wilkinson Family Pharmacy in suburban New Orleans.

    In one month, March 2014, 42% of all prescriptions filled by Wilkinson were for controlled substances such as painkillers and 38% of those were paid for in cash.

    “Anybody with half a brain could’ve seen something wasn’t right,” said Dan Schneider, a retired pharmacist whose fight to hold drug companies accountable for the opioid crisis was featured in a Netflix documentary series.

    WHO IS LOUIS MILIONE?

    Louis Milione was named DEA’s principal deputy administrator in 2021. He had previously retired from the agency in 2017 after a storied 21-year career that included two years leading the division that controls the sale of highly addictive narcotics. Among his earlier achievements was running the overseas sting that in 2008 nabbed Russia’s notorious arms trafficker Viktor Bout.

    Morris & Dickson brought Milione as part of a $3 million contract after the DEA accused the company in 2018 of failing to flag thousands of suspicious, high-volume orders.

    Testifying in 2019 before federal Administrative Law Judge Charles W. Dorman, Milione argued that Morris & Dickson deserved to keep its license because it “spared no expense” to overhaul its compliance systems.

    WHAT DOES DEA SAY?

    The DEA did not respond to repeated requests to explain its handling of the case and whether Milione recused himself from any involvement in the matter.

    But neither Milgram nor two DEA administrators who preceded her have taken any regulatory action since Dorman’s 2019 recommendation. Former DEA officials told the AP that a nearly four-year delay is highly unusual, and that most such cases are resolved in half the time.

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  • Blizzard, NetEase gaming partnership in China to end

    Blizzard, NetEase gaming partnership in China to end

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    HONG KONG — American game developer Blizzard Entertainment said Thursday that it will suspend most of its game services in mainland China after current licensing agreements with Chinese games company NetEase end, sending NetEase’s shares tumbling.

    Blizzard, which partnered with NetEase in 2008 to offer popular games like World of Warcraft, Overwatch and Diablo in mainland China, said in a statement the two companies did not reach a deal to renew the agreements “that is consistent with Blizzard’s operating principles and commitments to players and employees.”

    The partnership is set to expire in January next year. Blizzard said that new sales will be “suspended in the coming days.”

    NetEase shares plunged as much as 15% in Hong Kong following the news.

    In a statement, NetEase said that the expiration of its licenses with Blizzard would have “no material impact” on the company’s financial results.

    The company said revenues and income from the licensed Blizzard games represented “low single digits” as a total percentage of NetEase’s total revenues and income last year, and in the first three quarters of 2022.

    “We have put in a great deal of effort and tried with our utmost sincerity to negotiate with Activision Blizzard so that we could continue our collaboration and serve the many dedicated players in China,” William Ding, CEO of NetEase, said in the statement. “However, there were material differences on key terms and we could not reach an agreement.”

    Blizzard Entertainment CEO Mike Ybarra said that the firm is looking for alternatives to bring the games back to Chinese players in the future.

    “We’re immensely grateful for the passion our Chinese community has shown throughout the nearly 20 years we’ve been bringing our games to China through NetEase and other partners,” Ybarra said.

    The games affected by the suspension are World of Warcraft, the StarCraft series, Hearthstone, Heroes of the Storm, Overwatch and Diablo III.

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  • Officials probe India bridge collapse as divers comb river

    Officials probe India bridge collapse as divers comb river

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    MORBI, India — Scuba divers combed through a river in western India on Wednesday to make certain no bodies were left behind after the collapse of a newly repaired suspension bridge, as officials investigate what led to the tragedy that killed at least 135 people.

    The 143-year-old pedestrian bridge collapsed Sunday evening, sending hundreds plunging into the waters of the Machchu River in Gujarat state’s Morbi town. As rescuers continue to search through the deep and muddy waters, questions have swirled over why the bridge collapsed and who might be responsible. The bridge, built during British colonialism and touted by the state’s tourism website as an “artistic and technological marvel,” had reopened just four days earlier.

    As of Tuesday night, 196 people were rescued and all 10 of the injured were in stable condition. Officials said no one was missing according to their tally, but emergency responders and divers continued search efforts.

    “We want to be on the side of caution,” Police Inspector-General Ashok Yadav had said.

    Prime Minister Narendra Modi arrived at the site Tuesday to inspect the collapsed bridge and visit injured people at a hospital. He also chaired a meeting with officials and urged for a detailed investigation into what went wrong.

    Police have so far arrested nine people — including managers of the bridge’s operator, Oreva Group — and have begun a probe into the incident. State authorities also have a case against Oreva for suspected culpable homicide, attempted culpable homicide and other violations.

    As families mourn the dead, attention has shifted to the quality of the renovation and repair work carried out by Oreva, a group of companies known mainly for making clocks, mosquito zappers and electric bikes.

    On Tuesday evening, prosecutors told a local court that the contractors who oversaw the repair work were not qualified, Press Trust of India news agency reported.

    Citing a forensic report, the prosecution said that while the bridge’s flooring was replaced, its cable was not and so it could not bear the weight of the new flooring, causing the cable to snap.

    In March, the Morbi town government awarded a 15-year contract to to Oreva to maintain and manage the bridge. The same month, Oreva closed the bridge for seven months for repairs.

    The bridge, which spans a wide section of the Machchu river, has been repaired several times in the past and many of its original parts have been replaced over the years. It was reopened Oct. 26, the first day of the Gujarati New Year, which coincides with the Hindu festival season. The attraction drew hundreds of sightseers.

    Sandeepsinh Zala, a Morbi official, told the Indian Express newspaper the company reopened the bridge without first obtaining a “fitness certificate.” That could not be independently verified, but officials said they were investigating.

    A security video of the disaster showed it shaking violently and people trying to hold on to its cables and metal fencing before the aluminum walkway gave out and crashed into the river. The bridge split in the middle with its walkway hanging down and its cables snapped.

    It was unclear how many people were on the bridge when it collapsed. Survivors said it was so densely packed that people were unable to quickly escape when cables began to snap.

    Modi was the top elected official of Gujarat for 12 years before becoming India’s prime minister in 2014. A Gujarat state government election is expected in coming months and opposition parties have demanded a thorough investigation of the accident.

    India’s infrastructure has long been marred by safety problems, and Morbi has suffered other major disasters. In 1979, an upstream dam on the Machchu river burst, sending walls of water into the city and killing hundreds of people in one of India’s biggest dam failures.

    In 2001, thousands of people died in an earthquake in Gujarat. Morbi, 150 kilometers (90 miles) from the quake’s epicenter in Bhuj, suffered widespread damage. According to a report in the Times of India newspaper, the bridge that collapsed Sunday was also severely damaged in that earthquake.

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    Associated Press journalist Ajit Solanki contributed.

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