ReportWire

Tag: Corporate management

  • Wayfair, Travelers rise; PPG Industries, iRobot fall, Friday, 1/19/2024

    Wayfair, Travelers rise; PPG Industries, iRobot fall, Friday, 1/19/2024

    [ad_1]

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

    J.B. Hunt Transportation Services Inc., up $1.78 to $198.72.

    The trucking company’s fourth-quarter earnings fell short of analysts’ forecasts, but revenue beat expectations.

    PPG Industries Inc., down $3.56 to $141.39.

    The Pittsburgh-based paint and coatings maker gave investors a weak profit forecast for this quarter.

    Super Micro Computer Inc., up $111.92 to $423.36.

    The server technology company gave investors an encouraging financial update.

    iRobot Corp., down $6.36 to $17.26.

    European regulators reportedly plan to block Amazon’s buyout of the robot vacuum maker.

    Wendy’s Co., down 7 cents to $19.19.

    Wendy’s Co. named a longtime PepsiCo executive as its new CEO on Thursday.

    Spirit Airlines Inc., up 98 cents to $6.68.

    The airline said bookings were strong over the holidays and it expects to report solid fourth-quarter revenue.

    Wayfair Inc., up $5.23 to $56.13.

    The online furniture seller is cutting about 1,650 jobs, or 13% of its global workforce.

    Travelers Cos., up $13.32 to $211.67.

    The insurer beat analysts’ fourth-quarter earnings forecasts.

    [ad_2]

    Source link

  • Following review, Business Insider stands by reports on wife of ex-Harvard president's critic

    Following review, Business Insider stands by reports on wife of ex-Harvard president's critic

    [ad_1]

    NEW YORK — Business Insider’s top executive and parent company said Sunday they were satisfied with the fairness and accuracy of stories that made plagiarism accusations against a former MIT professor who is married to a prominent critic of former Harvard President Claudine Gay.

    “We stand by Business Insider and its newsroom,” said a spokesman for Axel Springer, the German media company that owns the publication.

    The company had said it would look into the stories about Neri Oxman, a prominent designer, following complaints by her husband, Bill Ackman, a Harvard graduate and CEO of the Pershing Square investment firm. He publicly campaigned against Gay, who resigned earlier this month following criticism of her answers at a congressional hearing on antisemitism and charges that her academic writing contained examples of improperly credited work.

    With its stories, Business Insider raised both the idea of hypocrisy and the possibility that academic dishonesty is widespread, even among the nation’s most prominent scholars.

    Ackman’s response, and the pressure that a well-connected person placed on the corporate owners of a journalism outlet, raised questions about the outlet’s independence.

    Business Insider and Axel Springer’s “liability just goes up and up and up,” Ackman said Sunday in a post on X, formerly Twitter. “This is what they consider fair, accurate and well-documented reporting with appropriate timing. Incredible.”

    Business Insider’s first article, on Jan. 4, noted that Ackman had seized on revelations about Gay’s work to back his efforts against her — but that the organization’s journalists “found a similar pattern of plagiarism” by Oxman. A second piece, published the next day, said Oxman had stolen sentences and paragraphs from Wikipedia, fellow scholars and technical documents in a 2010 doctoral dissertation at M.I.T.

    Ackman complained that it was a low blow to attack someone’s family in such a manner and said Business Insider reporters gave him less than two hours to respond to the accusations. He suggested an editor there was an anti-Zionist. Oxman was born in Israel.

    The business leader reached out in protest to board members at both Business Insider and Axel Springer. That led to Axel Springer telling The New York Times that questions had been raised about the motivation behind the articles and the reporting process, and the company promised to conduct a review.

    On Sunday, Business Insider CEO Barbara Peng issued a statement saying “there was no unfair bias or personal, political and/or religious motivation in pursuit of the story.”

    Peng said the stories were newsworthy and that Oxman, with a public profile as a prominent intellectual, was fair game as a subject. The stories were “accurate and the facts well-documented,” Peng said.

    “Business Insider supports and empowers our journalists to share newsworthy, factual stories with our readers, and we do so with editorial independence,” Peng wrote.

    Business Insider would not say who conducted the review of its work.

    Ackman said his wife admitted to four missing quotation marks and one missed footnote in a 330-page dissertation. He said the articles could have “literally killed” his wife if not for the support of her family and friends.

    “She has suffered severe emotional harm,” he wrote on X, “and as an introvert, it has been very, very difficult for her to make it through each day.”

    For her part, Gay wrote in the Times that those who campaigned to have her ousted “often trafficked in lies and ad hominem insults, not reasoned arguments.” Harvard’s first Black president said she was the subject of death threats and had “been called the N-word more times than I care to count.”

    There was no immediate comment Sunday from Nicholas Carlson, Business Insider’s global editor in chief. In a memo to his staff last weekend that was reported by The Washington Post, Carlson said he made the call to publish both of the stories and that he knew the process of preparing them was sound.

    [ad_2]

    Source link

  • Following review, Business Insider stands by reports on wife of ex-Harvard president's critic

    Following review, Business Insider stands by reports on wife of ex-Harvard president's critic

    [ad_1]

    NEW YORK — Business Insider’s top executive and parent company said Sunday they were satisfied with the fairness and accuracy of stories that made plagiarism accusations against a former MIT professor who is married to a prominent critic of former Harvard President Claudine Gay.

    “We stand by Business Insider and its newsroom,” said a spokesman for Axel Springer, the German media company that owns the publication.

    The company had said it would look into the stories about Neri Oxman, a prominent designer, following complaints by her husband, Bill Ackman, a Harvard graduate and CEO of the Pershing Square investment firm. He publicly campaigned against Gay, who resigned earlier this month following criticism of her answers at a congressional hearing on antisemitism and charges that her academic writing contained examples of improperly credited work.

    With its stories, Business Insider raised both the idea of hypocrisy and the possibility that academic dishonesty is widespread, even among the nation’s most prominent scholars.

    Ackman’s response, and the pressure that a well-connected person placed on the corporate owners of a journalism outlet, raised questions about the outlet’s independence.

    Business Insider and Axel Springer’s “liability just goes up and up and up,” Ackman said Sunday in a post on X, formerly Twitter. “This is what they consider fair, accurate and well-documented reporting with appropriate timing. Incredible.”

    Business Insider’s first article, on Jan. 4, noted that Ackman had seized on revelations about Gay’s work to back his efforts against her — but that the organization’s journalists “found a similar pattern of plagiarism” by Oxman. A second piece, published the next day, said Oxman had stolen sentences and paragraphs from Wikipedia, fellow scholars and technical documents in a 2010 doctoral dissertation at M.I.T.

    Ackman complained that it was a low blow to attack someone’s family in such a manner and said Business Insider reporters gave him less than two hours to respond to the accusations. He suggested an editor there was an anti-Zionist. Oxman was born in Israel.

    The business leader reached out in protest to board members at both Business Insider and Axel Springer. That led to Axel Springer telling The New York Times that questions had been raised about the motivation behind the articles and the reporting process, and the company promised to conduct a review.

    On Sunday, Business Insider CEO Barbara Peng issued a statement saying “there was no unfair bias or personal, political and/or religious motivation in pursuit of the story.”

    Peng said the stories were newsworthy and that Oxman, with a public profile as a prominent intellectual, was fair game as a subject. The stories were “accurate and the facts well-documented,” Peng said.

    “Business Insider supports and empowers our journalists to share newsworthy, factual stories with our readers, and we do so with editorial independence,” Peng wrote.

    Business Insider would not say who conducted the review of its work.

    Ackman said his wife admitted to four missing quotation marks and one missed footnote in a 330-page dissertation. He said the articles could have “literally killed” his wife if not for the support of her family and friends.

    “She has suffered severe emotional harm,” he wrote on X, “and as an introvert, it has been very, very difficult for her to make it through each day.”

    For her part, Gay wrote in the Times that those who campaigned to have her ousted “often trafficked in lies and ad hominem insults, not reasoned arguments.” Harvard’s first Black president said she was the subject of death threats and had “been called the N-word more times than I care to count.”

    There was no immediate comment Sunday from Nicholas Carlson, Business Insider’s global editor in chief. In a memo to his staff last weekend that was reported by The Washington Post, Carlson said he made the call to publish both of the stories and that he knew the process of preparing them was sound.

    [ad_2]

    Source link

  • Google lays off hundreds in hardware, voice assistant teams amid cost-cutting drive

    Google lays off hundreds in hardware, voice assistant teams amid cost-cutting drive

    [ad_1]

    Google has laid off hundreds of employees working on its hardware, voice assistance and engineering teams as part of cost-cutting measures.

    The cuts come as Google looks towards “responsibly investing in our company’s biggest priorities and the significant opportunities ahead,” the company said in a statement.

    “Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally,” it said.

    Google earlier said it was eliminating a few hundred roles, with most of the impact on its augmented reality hardware team.

    The cuts follow pledges by executives of Google and its parent company Alphabet to reduce costs. A year ago, Google said it would lay off 12,000 employees or around 6% of its workforce.

    In a post on X — previously known as Twitter — the Alphabet Workers Union described the job cuts as “another round of needless layoffs.”

    “Our members and teammates work hard every day to build great products for our users, and the company cannot continue to fire our coworkers while making billions every quarter,” the union wrote. “We won’t stop fighting until our jobs are safe!”

    Google is not the only technology company cutting back. In the past year, Meta — the parent company of Facebook — has slashed more than 20,000 jobs to reassure investors. Meta’s stock price gained about 178% in 2023.

    Spotify said in December that it was axing 17% of its global workforce, the music streaming service’s third round of layoffs in 2023 as it moved to slash costs and improve its profitability.

    Earlier this week, Amazon laid off hundreds of employees in its Prime Video and studios units. It also will lay off about 500 employees who work on its livestreaming platform Twitch.

    Amazon has cut thousands of jobs after a hiring surge during the pandemic. In March, Amazon announced that it planned to lay off 9,000 employees, on top of 18,000 employees it said that it would lay off in January 2023.

    Google is currently locked in a fierce rivalry with Microsoft as both firms strive to lead in the artificial intelligence domain.

    Microsoft has stepped up its artificial intelligence offerings to rival Google’s. In September, Microsoft introduced a Copilot feature that incorporates artificial intelligence into products like search engine Bing, browser Edge as well as Windows for its corporate customers.

    [ad_2]

    Source link

  • Chinese property firm Evergrande's EV company says its executive director detained

    Chinese property firm Evergrande's EV company says its executive director detained

    [ad_1]

    BANGKOK — A top executive of China Evergrande’s electric vehicle company has been detained by police in the latest sign of trouble for the world’s most heavily indebted property developer.

    China Evergrande New Energy Vehicle announced the detention of Liu Yongzhuo, its vice chairman and an executive director, in a notice Monday to the Hong Kong Stock Exchange. Its shares plunged nearly 11% after they resumed trading later in the day.

    That followed news over the weekend that Zhongzhi Enterprise Group, a major shadow bank in China that has lent billions in yuan (dollars) to property developers, filed for bankruptcy liquidation after it was unable to pay its debts.

    A crackdown on excessive borrowing that began several years ago has left dozens of Chinese developers out of business or struggling for survival. The industry-wide meltdown has snagged a vital cog in China’s economic engine, reverberating through financial markets.

    Share prices sank Monday in Hong Kong and Shanghai, with the benchmark Hang Seng index down 2.2%. Evergrande Group’s shares lost 1.4%.

    Evergrande has been in crisis since it defaulted on its debt obligations two years ago. It is in the midst of a restructuring that includes selling off assets to avoid defaulting on $340 billion in debt. Evergrande confirmed in late September that its chairman Hui Ka Yan had been subjected to “mandatory measures in accordance with the law due to suspicion of illegal crimes.” His status is unclear.

    Evergrande New Energy Vehicle saw its shares tumble nearly 20% last week after it said a deal to sell shares to Dubai-based NWTN Motors had lapsed. The brief announcement of Liu’s detention on “suspicion of illegal crimes” made no mention of that or other details.

    The company has delayed its plans for beginning manufacturing after running into difficulties in attracting enough funding.

    The Beijing No. 1 Intermediate Court said late Friday that it had approved Zhongzhi Enterprise Group’s application for bankruptcy liquidation.

    It said the company was facing a “severe shortage of working capital and is unable to recover most of its accounts receivable.”

    Zhongzhi, one of China’s largest private asset management companies, said in November that its debts of up to 460 billion yuan ($64 billion) were more than twice its assets of 200 billion yuan. Soon afterward, Beijing police said they were investigating suspected crimes of a Chinese wealth company owned by Zhongzhi.

    According to the Chinese financial magazine Caixin, it manages nearly 1 trillion yuan ($130 billion) in assets, but the company’s finances have suffered as the once thriving property market has languished.

    Shadow banks play an important role in Chinese finance, operating outside traditional banking regulations. Zhongzhi expanded rapidly after it was founded by the late tycoon Xie Zhikun in 1995, and operates in insurance, leasing, trust, and other financial industries.

    [ad_2]

    Source link

  • US companies are picky about investing in China. The exceptions? Burgers, lattes

    US companies are picky about investing in China. The exceptions? Burgers, lattes

    [ad_1]

    WASHINGTON — There’s been no shortage of tough news for China’s economy as some of the world’s biggest brands consider or take action to shift manufacturing to friendlier shores at a time of unease about security controls, protectionism and wobbly relations between Beijing and Washington.

    Count Adidas, Apple and Samsung among those looking elsewhere.

    But as a tumultuous 2023 for the Chinese economy comes to a close, there has been at least one bright spot for Beijing when it comes to foreign investment: American fast-food chains have decided a market of 1.4 billion people is simply too delicious to pass up.

    KFC China’s parent company opened its 10,000th restaurant in China last month and aims to have stores within reach of half of China’s population by 2026. McDonald’s is planning to open 3,500 new stores in China over the next four years. And Starbucks invested $220 million in a manufacturing and distribution facility in eastern China, its biggest project outside the U.S.

    This is surely not what Chinese President Xi Jinping had in mind as he made the case to American CEOs about the upside of China’s “super-large market” last month while he was in San Francisco for a summit of world leaders. The investments in fast food and other consumer goods, while Washington is curbing exports of computer chips and other advanced technology, don’t fit into China’s own blueprint for modernizing its economy.

    “As you try to interpret the signals from McDonald’s and Starbucks” and other chains, says Phil Levy, chief economist at the supply chain management firm Flexport, “note what the industries are: These are not high-tech burgers.’’

    And while some U.S. companies are increasing investments in the world’s second-largest economy, overall foreign investment began falling this year. In the July-September quarter, net foreign direct investment in China sank to a deficit of $11.8 billion, the first quarterly deficit since Beijing began publishing the data in 1998.

    As tensions simmer between China and its Western trading partners, many multinational companies are shifting investments to other places, such as Southeast Asia or India, or repatriating their earnings. That has sapped China of a key engine when its economy has yet to fully recover from the disruptions of the pandemic and a property industry crisis that has been a drag on growth.

    Beijing puts some of the blame on U.S. government policies.

    Commerce Ministry spokesperson Shu Jueting said recently, “The U.S. side has repeatedly politicized economic, trade and technology issues and overstretched the concept of security, abused export control measures, and restricted trade and investment in China by its own enterprises, which is forcing enterprises to give up opportunities in the Chinese market and opportunities for win-win cooperation.”

    A survey released in September by the U.S.-China Business Council, which represents American companies in China, suggested that the uncertainty has taken a toll: 43% of its members said China’s business environment had deteriorated in the past year, and 83% said they were less optimistic about China than they had been three years ago. Twenty-one percent said they were investing fewer resources in China, versus just 10% who were investing more.

    Surveys of European and Japanese companies have shown similar results.

    While China’s market is gigantic, it’s ailing. Unemployment among young Chinese rose to over 20% by June, the last time the government released that data. Housing prices are falling and the stock market is down nearly 15% since the summer. That’s left many Chinese feeling nervous about spending.

    Still, bullishness for China as other industries try to de-risk and detangle from Beijing may be a profit-increasing strategy for the fast-food industry.

    “We believe there is no better time to simplify our structure, given the tremendous opportunity to capture increased demand and further benefit from our fastest-growing market’s long-term potential,” McDonald’s CEO Chris Kempczinski said as the Chicago-based company announced in November it was increasing its minority 20% ownership of its McDonald’s licensed stores in China, Macau and Hong Kong to 48%.

    Burgers and lattes don’t raise the sorts of friction that more high-tech industries have in the complicated U.S.-China relationship. Those strains have persisted under the presidency of Joe Biden, who took office vowing to do more to counter China’s expanding military clout and its menacing of neighbors, to improve the country’s treatment of Uyghur and other ethnic minorities, and to crack down on intellectual property theft.

    Relations hit a low point in February when Biden ordered a Chinese spy balloon that traversed the continental United States to be shot down. Beijing, which claims self-governed Taiwan as its own territory, also protested a stopover in the U.S. by the island’s president, Tsai Ing-wen, earlier this year. China answered fresh U.S. controls on exports of advanced computer chips and the technology to make them with limits of its own on exports of vital commodities like graphite, gallium and germanium, all metals used in making semiconductors, solar panels, missiles and radar.

    The relationship appears to be stabilizing somewhat as 2023 winds down, highlighted by last month’s Biden and Xi meeting outside San Francisco. But since then, Biden’s top advisers have said there are no plans to shift the strategy of tightening regulations and blocking U.S.-based high-tech investments in China, citing the need to safeguard national security.

    Both former President Donald Trump, the 2024 GOP presidential front-runner, and Biden have worried about depending on China, a potential adversary, for supplies of critical materials used in many high-tech products. Both have sought to reduce America’s reliance on Chinese factories and have encouraged companies to shift away from China to other countries — so-called “friend-shoring.”

    Still, Biden administration officials have said they don’t want to see a total decoupling of the world’s two biggest economies.

    “De-risking, yes. Decoupling, no,” Nicholas Burns, the U.S. ambassador to China, said at a recent event in Washington. “We want to continue a major trade and investment relationship with China, just not … in the realm that might help them leapfrog over us sometime in the next 10 years in military technology.”

    Rosemary Coates, executive director of the nonprofit Reshoring Institute, noted that decisions to expand or retrench are relatively easy for a company like McDonald’s or its fast-food rivals.

    Franchises “can be opened or closed,” Coates said. “It’s not like you’re investing in an auto plant or some kind of machine shop.”

    China’s vast market is vital for many foreign companies: At their annual investors day gathering this month, McDonald’s executives noted that 70 million of the 150 million customers active in its customer loyalty program are in China.

    KFC China says growth in its new outlets has averaged more than 22% over the last five years. The chain Popeyes Louisiana Kitchen relaunched its brand in China in August with a flagship restaurant in Shanghai and plans to open 1,700 stores over the next 10 years.

    But for all the promise of China’s huge market, U.S. businesses have other reasons to think twice about expanding in China.

    In July, the U.S. recommended Americans reconsider traveling to China because of arbitrary law enforcement and exit bans and the risk of wrongful detentions. Commerce Secretary Gina Raimondo has warned Chinese leaders that U.S. businesses might stop investing in their country if they do not address complaints about worsening conditions due to raids on firms, unexplained fines and unpredictable official behavior.

    While insisting that China is keen to have foreign investment, Beijing has given no indication it might change trade, market access and other policies that irk Washington and its other trading partners.

    “Where do you draw the line?’’ asked Levy, a former White House economic adviser in George W. Bush’s administration. “Someone might say: For sourcing sensitive computer chips, this has to be done in a place I really trust. … The other extreme is: We’re OK selling them lattes and burgers. But where do you draw the line for the stuff in between — say, automotive parts? What about ball bearings?’’

    ___

    Kurtenbach reported from Bangkok. AP writer Ken Moritsugu contributed to this report from Beijing.

    [ad_2]

    Source link

  • Book Review: Ralph Nader profiles corporate leaders he sees as role models in 'The Rebellious CEO'

    Book Review: Ralph Nader profiles corporate leaders he sees as role models in 'The Rebellious CEO'

    [ad_1]

    Consumer advocate Ralph Nader has built his life’s reputation on his fights with corporate America. But it turns out there are some CEOs he actually likes.

    At least that’s the premise of “The Rebellious CEO: 12 Leaders Who Did It Right,” Nader’s look at executives who he says “stood against the gray crowd” by putting a premium on social responsibility as much as they did on profits. The dozen leaders he profiles are presented as models for businesses on how to balance both those needs.

    The brief biographies of the CEOs give Nader a chance to highlight what he sees as the shortcomings of today’s corporations. But, surprisingly, he commends the CEOs profiled for not forgetting the bottom line and notes that all of them insisted “nothing would be possible if they didn’t pay attention to profits.”

    The chapters are sprinkled with Nader’s anecdotes from his interactions with the CEOs profiled, and leans on their own writings as well. The CEOs highlighted include Ray Anderson, the carpet-tile manufacturing executive who was spurred to set sustainability goals for his company, and Patagonia founder Yvon Chouinard’s support for conservation efforts.

    Nader also praises CEOs for their work at the consumer level, including Southwest Airlines — though also noting its cancellation of more than 16,000 flights last year over the holidays that eventually led to a multi-million settlement.

    Nader strays into adulation at times, but the book offers an interesting perspective on business leadership from one of the most well known antagonists of corporations.

    ___

    AP book reviews: https://apnews.com/hub/book-reviews

    [ad_2]

    Source link

  • China's Alibaba names CEO Eddie Wu to head its e-commerce business as its growth falters

    China's Alibaba names CEO Eddie Wu to head its e-commerce business as its growth falters

    [ad_1]

    HONG KONG — China’s Alibaba Group says its CEO Eddie Wu will head its core e-commerce business, as the company seeks to drive growth and fend off fast-growing online shopping rivals like Pinduoduo.

    Wu is replacing Trudy Dai, a longtime Alibaba executive who was one of the founding employees of the company.

    Alibaba’s chairman Joe Tsai said in an internal letter dated Wednesday that Dai will help set up an asset management company aimed at improving returns on capital and “enhance shareholder value.”

    The reshuffle came after PDD Holdings Inc., which operates online shopping platform Pinduoduo and U.S.-focused e-commerce site Temu, surpassed Alibaba in market value in the past month.

    As of Tuesday, PDD’s market capitalization of its U.S.-listed stock was $199.41 billion. Alibaba’s was $191.75 billion.

    Alibaba founder Jack Ma earlier this month praised PDD for having managed to grow bigger than his Hangzhou-based company, which had for years been China’s biggest e-commerce player.

    Alibaba needs a “brand-new strategy” and a change in the firm’s organizational principles and systems to a “brand new environment,” Tsai said in his letter.

    Alibaba’s Hong Kong-listed stock rose 3.5% in trading Wednesday following the announcement.

    The company restructured its businesses in March, splitting them into six units that would eventually raise their own capital and go public. Its cloud unit had been expected to be among the first to hold an initial public offering, but Alibaba later scrapped plans to spin-off the business, citing uncertainties over U.S. export curbs on advanced chips used for artificial intelligence.

    [ad_2]

    Source link

  • Storied US Steel to be acquired for more than $14 billion by Nippon Steel

    Storied US Steel to be acquired for more than $14 billion by Nippon Steel

    [ad_1]

    U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion.

    The transaction is worth about $14.9 billion when including the assumption of debt. The combined company will be among the top three steel-producing companies in the world, according to 2022 figures from the World Steel Association.

    The price tag for U.S. Steel is nearly double what was offered just four months ago by rival Cleveland Cliffs. U.S. Steel, which rejected that offer, confirmed the offering price from Nippon early Monday.

    That tie-up would have created one of the top four outside of China, which dominates global steel production. U.S. Steel executives were asked about a potential pushback from U.S. regulators over security concerns on Monday.

    “This is going to increase competition here in the United States with a great ally to the United States,” answered U.S. Steel CEO David Burritt. “It’s a great fit and we do not see that as a high level risk factor. We’d say low level of risk.”

    U.S. Steel will keep its name and its headquarters in Pittsburgh, where it was founded in 1901 by J.P. Morgan, Andrew Carnegie. It will become a subsidiary of Nippon.

    China and Chinese companies have come to dominate global steel production. Of the nearly 2 billion metric tons of steel produced annually across the globe, about 54% comes from China, according to the World Steel Association.

    China’s Baowu Group, a state-owned iron company based in Shanghai, churned out nearly 120 million metric tons of steel in 2021. The combined Nippon and U.S. Steel companies will produce less than 90 million metric tons of steel combined, with most of that coming from Nippon.

    In 2022, U.S. Steel produced about 14.5 million tons.

    The U.S. currently ranks No. 4 behind China, India and Japan, and the blast furnace steel plants operated by U.S. Steel are among the more costly to operate, compared with more modern facilities that melt down scrap using arc furnaces.

    But U.S. Steel plants with blast furnaces remain integral to U.S. manufacturing, particularly automakers.

    Earlier this year U.S. Steel idled one of its blast furnaces in Granite City, Illinois, in anticipation of a lower demand for steel, citing a strike against the big three automakers in Detroit.

    Soaring prices have fueled consolidation in the steel industry this decade. Steel prices more than quadrupled near the start of the pandemic to near $2,000 per metric ton by the summer of 2021 as supply chains experienced gridlock, a symptom of surging demand for goods and the lack of anticipation of that demand.

    Nippon, which will pay $55 per share for U.S. Steel, said Monday that the deal will bolster its manufacturing and technology capabilities. It will also expand Nippon’s production in the U.S. and add to its positions in Japan, India and the ASEAN region.

    Nippon said the acquisition is anticipated to bring its total annual crude steel capacity to 86 million tons and help it capitalize on growing demand for high-grade steel, automotive and electrical steel.

    “The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel’s existing union contracts,” Nippon President Eiji Hashimoto said in a prepared statement.

    U.S. Steel CEO David Burritt said that the sale is beneficial to the United States, “ensuring a competitive, domestic steel industry, while strengthening our presence globally.” The company will continue to run its mining and steel operations in the U.S. for its domestic customers, he said during a conference call Monday.

    Nippon said Monday that it will honor all collective bargaining agreements in place with the United Steelworkers and other employees, and is committed to maintaining its relationship with workers. Nippon has had a presence in the U.S. for almost 40 years, starting with a joint venture with Wheeling-Pittsburgh Steel in 1984 that later became a wholly owned subsidiary.

    The United Steelworkers International, however, pushed back immediately against the deal.

    The union “remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company,” said David McCall, president of United Steelworkers, in a statement.

    McCall said U.S. Steel and Nippon didn’t reach out to the union regarding the deal, and that the union plans to exercise all the measures of its agreements to protect jobs.

    “We also will strongly urge government regulators to carefully scrutinize this acquisition and determine if the proposed transaction serves the national security interests of the United States and benefits workers,” he added.

    U.S. Steel has been a symbol of industrialization since it was founded in the early 20th century and the domestic steel industry dominated globally before Japan, then China, became the preeminent steelmakers over the past 40 years.

    The company survived the Great Depression and became an integral part of U.S. efforts in World War I and II, supplying hundreds of millions of tons of steel for planes, ships, tanks and other military gear, in addition to steel for automobiles and appliances.

    During the late 1970s and early 80s — amid an energy crisis and multiple recessions — U.S. Steel cut production and spun off many of its other businesses. With oversupply and an influx of lower-priced steel imports dragging down prices into the new century, the company reorganized in 2001 and separated its energy business, which became Marathon Oil Corp.

    The 64-story U.S. Steel Tower still looms over the Pittsburgh skyline, but U.S. Steel is no longer its biggest tenant. That would be UPMC, a local health system, and its name is now at the top of the tower.

    The acquisition has been approved by the boards of both companies and is targeted to close in the second or third quarter of 2024. It still needs approval from U.S. Steel shareholders.

    Shares of United States Steel Corp. soared more than 27% Monday.

    _______________

    Business Writer Matt Ott contributed to this report from Washington, D.C.

    [ad_2]

    Source link

  • The Republican leading the probe of Hunter Biden has his own shell company and complicated friends

    The Republican leading the probe of Hunter Biden has his own shell company and complicated friends

    [ad_1]

    TOMPKINSVILLE, Ky. — Rep. James Comer, a multimillionaire farmer, boasts of being one of the largest landholders near his rural Kentucky hometown, and he has meticulously documented nearly all of his landholdings on congressional financial disclosure documents – roughly 1,600 acres in all.

    But there are six acres that he bought in 2015 and co-owns with a longtime campaign contributor that he has treated differently, transferring his ownership to Farm Team Properties, a shell company he co-owns with his wife.

    Interviews and records reviewed by The Associated Press provide new insights into the financial deal, which risks undercutting the force of some of Comer’s central arguments in his impeachment inquiry of President Joe Biden. For months, the chairman of the House Oversight committee and his Republican colleagues have been pounding Biden for how his relatives traded on their famous name to secure business deals.

    In particular, Comer has attacked some Biden family members, including the president’s son Hunter, over their use of “shell companies” that appear designed to obscure millions of dollars in earnings they received from shadowy middlemen and foreign interests.

    Such companies typically exist only on paper and are formed to hold an asset, like real estate. Their opaque structures are often designed to help hide ownership of property and other assets.

    The companies used by the Bidens are already playing a central role in the impeachment investigation, which is expected to gain velocity after House Republicans voted Wednesday to formally authorize the probe. The vote follows the federal indictment last week of Biden’s son Hunter on charges he engaged in a scheme to avoid paying taxes on his earnings through the companies.

    But as Comer works to “deliver the transparency and accountability that the American people demand” through the GOP’s investigation, his own finances and relationships have begun to draw notice, too, including his ties to prominent local figures who have complicated pasts not all that dissimilar to some of those caught up in his Biden probe.

    Comer declined to comment through a spokesman, but has aggressively denied any wrongdoing in establishing a shell company.

    After Democrats blasted him for being a hypocrite following the Daily Beast ’s disclosure of the company last month, Comer countered by calling a Democratic lawmaker a “smurf” and saying that the criticism was the kind of thing “only dumb, financially illiterate people pick up on.”

    The AP found that Farm Team Properties functions in a similarly opaque way as the companies used by the Bidens, masking his stake in the land that he co-owns with the donor from being revealed on his financial disclosure forms. Those records describe Farm Team Properties as his wife’s “land management and real estate speculation” company without providing further details.

    It’s not clear why Comer decided to put those six acres in a shell company, or what other assets Farm Team Properties may hold. On his most recent financial disclosure forms, Comer lists its value as being as much as $1 million, a substantial sum but a fraction of his overall wealth.

    Ethics experts say House rules require members of Congress to disclose all assets held by such companies that are worth more than $1,000.

    “It seems pretty clear to me that he should be disclosing the individual land assets that are held by” the shell company, said Delaney Marsco, a senior attorney who specializes in congressional ethics at the nonpartisan Campaign Legal Center in Washington.

    Marsco and other experts were perplexed as to why Comer would place such assets in a shell company, especially since he disclosed his other holdings and does not appear to have taken other efforts to hide his wealth.

    “This is actually a real problem that anti-corruption activists would love to get legislative reform on,” said Kathleen Clark, a law professor at Washington University in St. Louis who specializes in government ethics. “It is hard to trace assets held in shell companies. His is a good example.”

    Comer created the company in 2017 to hold his stake in the six acres that he purchased two years earlier in a joint venture with Darren Cleary, a major campaign contributor and construction contractor from Monroe County, Kentucky, where the congressman was born and raised.

    It’s not clear how Comer came to invest with Cleary, who did not respond to an interview request. They have offered mutual praise for each other over the years, including Comer having called Cleary “my friend” and “the epitome of a successful businessperson” from the House floor.

    Cleary, his businesses and family have donated roughly $70,000 to Comer’s various campaigns, records show. He has also lauded Comer on social media for “For Fighting For Us Everyday” and has posted photos of the two on a golf course together.

    At the time he and Comer entered their venture, Cleary was selling an acre of his family’s land to Kentucky so it could build a highway bypass near Tompkinsville, which was completed in 2020. He sold Comer a 50% stake for $128,000 in six acres he owned that would end up being adjacent to the highway.

    Comer, a powerful political figure in this rural part of Kentucky, announced his bid for Congress days after purchasing the land.

    Marketing materials described the land as “choice” property and play up its proximity to the bypass. The partnership sold off about an acre last year for $150,000, a substantial increase over its value when purchased, property records show.

    Farm Team Properties has also become more valuable. On Comer’s financial disclosure forms, it has risen in value from between $50,000 and $100,000 in 2016 to between $500,001 and $1 million in 2022, records show.

    As House Oversight Committee chairman, Comer has presented himself as a bipartisan ethics crusader only interested in uncovering the truth. As evidence, he has pointed to a long career as a state legislator and official who sought to build bridges with Democrats and to “clean up scandal, restore confidence, and crack down on waste, fraud, and abuse.”

    Interviews with allies, critics and constituents, however, reveal a fierce partisan who has ignored wrongdoing by friends and supporters if they can help him advance in business and politics.

    “The Jamie Comer I knew was light and sunshine and looking for common ground. Now he’s Nixonian,” said Adam Edelen, a former Democratic state auditor and friend, comparing the lawmaker to a disgraced former president who resigned from office amid the Watergate scandal.

    In Comer’s telling, he is a man of self-made wealth who founded his first farm while still enrolled at Western Kentucky University and shrewdly invested in land.

    After graduating in 1993, Comer got into the insurance business with Billy D. Poston, a family friend.

    The two later had a falling out. When poor health prevented Polston from running for reelection as a state representative in 2000, Comer, then 27, took on Polston’s wife in the GOP primary, winning that race and the general election. For years, Comer took credit in interviews for defeating the ‘incumbent.”

    Comer cut his teeth in the bare-knuckled machine politics of Monroe County, Kentucky, and knew how to win allies, according to those who knew him.

    When he was barely out of high school, Comer was writing campaign checks to state politicians, including a $4,000 contribution to a Republican candidate for governor in 1990, followed by another check in 1991 for $1,050, according to campaign finance disclosures published in local news stories. Both contributions listed Comer’s occupation as “student.”

    Comer followed in the footsteps of his paternal grandfather, Harlin Comer, who was a leading figure in local Republican politics, as well as a construction contractor and bank officer.

    When Harlin Comer died in 1993, the 21-year-old Comer took over as chairman of the Monroe County GOP. A wave of indictments against local Republican office holders, some of whom helped launch Comer’s political career and became close friends, soon followed.

    Mitchell Page and Larry Pitcock were among those charged in the sweep. Page, then the county’s chief executive, and Pitcock, the former county clerk, were sentenced in 1996 to 18 months in prison for tampering with a state computer database so that they and their families could avoid paying vehicle taxes.

    Rather than turning on Pitcock and Page, Comer has remained close to the men. He praised Page on the House floor in 2020 for his “principled leadership.”

    Page did not respond to a request for comment. Pitcock could not be reached at phone numbers listed to him.

    Pitcock and his family members have donated about $9,000 to Comer’s political campaigns and held one of Comer’s first fundraisers when he ran to become state agriculture commissioner, records show. Comer dismissed questions about the propriety of having Pitcock sponsor a fundraiser for him, noting to CN2 News that it helped him raise nearly $60,000.

    Comer eventually hired Pitcock’s son to work for him in the agriculture commissioner’s office, records show. Members of the Pitcock family have since attended a House Republican fundraiser with Comer in Washington and posed for photographs with him inside the U.S. Capitol.

    In 2011, a voter fraud case roiled local politics and swept up Billy Proffitt, Comer’s longtime friend and former college roommate. Proffitt pleaded guilty in December 2011 and was sentenced to probation.

    A few years later, Proffitt came to Comer’s defense from allegations that nearly derailed the future congressman’s political career. During the 2015 Republican primary for governor, a local blogger began posting about accusations that Comer had abused a college girlfriend.

    Comer vehemently denied the allegations. And in the hopes of discrediting the stories, he leaked emails to a local paper that suggested a rival campaign had been coordinating the coverage with the blogger, according to The New York Times. The leak allegation may have discredited the other candidate, Hal Heiner, but ended up hurting Comer’s campaign.

    The coverage angered the former girlfriend, who wrote a letter to the Louisville Courier-Journal in which she asserted that Comer had hit her and that their relationship had been “toxic.” She also told the newspaper that Comer became “enraged” in 1991 after he learned she had used his name on a form she submitted before receiving an abortion at a Louisville clinic.

    Proffitt, however, told the newspaper that he had never seen Comer be abusive toward Thomas.

    “That doesn’t sound like Jamie at all,” said Proffitt, using Comer’s nickname, adding that he had never heard about the allegations of Thomas getting an abortion.

    Comer ended up losing the primary by 83 votes to Matt Bevin, who went on to win the general election. It was the only campaign that Comer has lost.

    The lawmaker and Proffitt remain close friends and business associates.

    Profitt’s family’s real estate company is spearheading the efforts to sell the land held by Farm Team Properties.

    In a brief interview, Proffitt called the focus on Comer’s shell company “much ado about nothing,” adding that the lawmaker “is a loyal friend and a good man who comes from a really, really good family.”

    [ad_2]

    Source link

  • Why Fed rate hikes take so long to affect the economy, and why that effect may last a decade or more

    Why Fed rate hikes take so long to affect the economy, and why that effect may last a decade or more

    [ad_1]

    The U.S. economy continues to grow despite the 5.5% benchmark federal funds interest rate set by the Federal Reserve in 2023.

    The Fed’s leaders expect their interest rate decisions to eventually slow that growth.

    The increase in borrowing costs that stems from Fed decisions does not affect all consumers immediately. It typically affects people who need to take new loans — first-time homebuyers, for example. Other dynamics, such as the use of contracts in business, can slow the ripple of Fed decisions through an economy.

    “It might not all hit at once, but the longer rates stay elevated, the more you’re going to feel those effects,” said Sarah House, managing director and senior economist at Wells Fargo.

    “Consumers did have additional savings that we wouldn’t have expected if they had continued to save at the same pre-Covid rate. And so that’s giving some more insulation in terms of their need to borrow,” said House. “That’s an example of why this cycle might be different in terms of when those lags hit, versus compared to prior cycles.”

    A 1% interest rate increase can reduce gross domestic product by 5% for 12 years after an unexpected hike, according to a research paper from the Federal Reserve Bank of San Francisco.

    “It’s bad in the short term because we worry about unemployment, we worry about recessions,” said Douglas Holtz-Eakin, president of the American Action Forum, referring to the paper’s implications for central bank policymakers. “It’s bad in the long term because that’s where increases in your wages come from; we want to be more productive.”

    Some economists say that financial markets may be responding to Federal Reserve policy more quickly, if not instantaneously. “Policy tightening occurs with the announcement of policy tightening, not when the rate change actually happens,” said Federal Reserve Governor Christopher Waller in remarks July 13 at an event in New York.

    “We’ve seen this cycle where the stock market moved more quickly in some cases, more slowly in other cases,” said Roger Ferguson, former vice chair of the Federal Reserve. “So, you know, this question of variability comes into play, as in how long it’s going to take. We think it’s a long time, but sometimes it can be faster.”

    Watch the video above to see why the Fed’s interest rate hikes take time to affect the economy.

    [ad_2]

    Source link

  • Walmart latest big advertiser to pull out of Musk's X amid widening concerns over hate speech, reach

    Walmart latest big advertiser to pull out of Musk's X amid widening concerns over hate speech, reach

    [ad_1]

    Walmart is the latest company to publicly join the growing flock of major advertisers to pull spending from X, Elon Musk’s beleaguered social media company, amid concerns about hate speech — as well as reaching a sizeable audience on the platform.

    “We aren’t advertising on X as we’ve found some other platforms better reach our customers,” Walmart said in a statement.

    The announcement comes two days after Musk went on an expletive-ridden rant in an on-stage interview with journalist Andrew Ross Sorkin about companies halting spending on X, formerly known as Twitter, in response to antisemitic and other hateful material. Musk said advertisers pulling out are engaging in “blackmail” and, using a profanity, essentially told them to go away.

    “Don’t advertise,” Musk said.

    Joe Benarroch, head of operations at X, said Friday that Walmart has not advertised on the platform since October. The company, he added, “has just been organically connecting with its community of more than one million people on X.”

    Besides Walmart, the Walt Disney Co., IBM, NBCUniversal and its parent company Comcast have also decided to stop spending on X. Many pulled out earlier this month after the liberal advocacy group Media Matters issued a report showing their ads were appearing alongside material praising Nazis. X has sued the group, saying it “manufactured” the report in order to “drive advertisers from the platform and destroy X Corp.”

    X’s CEO, Linda Yaccarino, is a former NBCUniversal executive who was hired by Musk to rebuild ties with advertisers who fled after he took over, concerned that his easing of content restrictions was allowing hateful and toxic speech to flourish and that would harm their brands. But X’s relations with advertisers don’t appear to be improving.

    “Walmart has a wonderful community of more than a million people on X, and with a half a billion people on X, every year the platform experiences 15 billion impressions about the holidays alone with more than 50% of X users doing most or all of their shopping online,” Benarroch said in a statement.

    [ad_2]

    Source link

  • Walmart latest big advertiser to pull out of X amid growing concerns over hate speech

    Walmart latest big advertiser to pull out of X amid growing concerns over hate speech

    [ad_1]

    Walmart is the latest company to join the glowing flock of major advertisers to pull spending from X, Elon Musk’s beleaguered social media company, amid concerns about hate speech — as well as reaching a sizeable audience on the platform

    ByThe Associated Press

    December 1, 2023, 3:20 PM

    FILE – A sign encouraging customers to order grocery items online and pick them up at a store is displayed at a WalMart Neighborhood Market in Bentonville, Ark., Thursday, June 4, 2015. Walmart is the latest company to join the growing flock of major advertisers to pull spending from X, Elon Musk’s beleaguered social media company, amid concerns about hate speech — as well as reaching a sizeable audience on the platform. (AP Photo/Danny Johnston, File)

    The Associated Press

    SAN FRANCISCO — Walmart is the latest company to join the growing flock of major advertisers to pull spending from X, Elon Musk’s beleaguered social media company, amid concerns about hate speech — as well as reaching a sizeable audience on the platform.

    “We aren’t advertising on X as we’ve found some other platforms better reach our customers,” Walmart said in a statement.

    The announcement comes two days after Musk went on an expletive-ridden rant in an on-stage interview with journalist Andrew Ross Sorkin about companies halting spending on X, formerly known as Twitter, in response to antisemitic and other hateful material. Musk said advertisers pulling out are engaging in “blackmail” and, using a profanity, essentially told them to go away.

    “Don’t advertise,” Musk said.

    Walmart is joining the Walt Disney Co., IBM, NBCUniversal and its parent company Comcast and other companies who have decided to stop spending on X.

    X’s CEO, Linda Yaccarino, is a former NBCUniversal executive who was hired by Musk to rebuild ties with advertisers who fled after he took over, concerned that his easing of content restrictions was allowing hateful and toxic speech to flourish and that would harm their brands. But X’s relations with advertisers don’t appear to be improving.

    “Walmart has a wonderful community of more than a million people on X, and with a half a billion people on X, every year the platform experiences 15 billion impressions about the holidays alone with more than 50% of X users doing most or all of their shopping online,” said Joe Benarroch, head of operations at X, in a statement.

    [ad_2]

    Source link

  • What you need to know about Emmett Shear, OpenAI’s new interim CEO

    What you need to know about Emmett Shear, OpenAI’s new interim CEO

    [ad_1]

    OpenAI is bringing in the former head of Twitch as interim CEO just days after the company pushed out its well-known leader Sam Altman, sparking upheaval in the AI world.

    Emmett Shear announced his new role Monday morning in a post on X, formerly known as Twitter, while also acknowledging “the process and communications” around Altman’s firing on Friday was “handled very badly” and damaged trust in the artificial intelligence company.

    When it abruptly fired Altman, OpenAI said an internal review found the 38-year-old was “not consistently candid in his communications” with the board of directors. The company did not provide more details, leaving industry analysts and tech watchers reading tea leaves in an effort to figure out what happened.

    Meanwhile, Microsoft, which has invested billions in the AI company, said Monday it’s bringing in Altman and former OpenAI President Greg Brockman – who quit in protest following Altman’s ouster – to lead the tech giant’s new advanced AI research team.

    At OpenAI, Shear has promised to shed some light into Altman’s departure. In his X post, he pledged to hire an independent investigator to look into what led up to Altman’s ouster and write a report within 30 days.

    Shear, 40, is the co-founder of the Amazon-owned streaming platform Twitch, a social media site that’s mostly known for gaming.

    Twitch was originally part of the streaming video site Justin.tv, which was founded by Shear and three other tech entrepreneurs in 2006. The focus shifted toward gaming in 2011, a move that turned the platform into a growing phenomenon and birthed a plethora of well-known streamers. Three years later, Amazon purchased the company for approximately $970 million in cash.

    Twitch doesn’t garner as much media attention as other social media companies, but it’s been the subject of scrutiny during two instances in the past few years when mass shootings in Buffalo, N.Y., and Germany were livestreamed on its platform.

    Shear left the company in March. He said that was due to the birth of his now 9-month-old son.

    After leaving Twitch, Shear became a visiting partner at Y Combinator, a startup incubator that launched Airbnb, DoorDash and Dropbox. Both Altman and Shear know each other as the original batchmates at Y Combinator, where Altman previously served as president.

    In his LinkedIn profile, Shear says he’s been “starting, growing, and running companies since college” and doesn’t “plan to turn back any time soon.” He graduated from Yale University in 2005 with a bachelor’s degree in computer science.

    OpenAI had initially named its chief technology officer, Mira Murati, as interim CEO on Friday. But she appeared to be one of the signatories on a letter that began circulating early Monday – and signed by hundreds of other OpenAI employees – calling for the board’s resignation and Altman’s return.

    The AP was not able to independently confirm that all of the signatures were from OpenAI employees. A spokesperson at OpenAI confirmed that the board has received the letter, which also said the board had replaced Murati against the best interest of the company.

    In his post on X, Shear wrote he received a call offering him a “once-in-a-lifetime opportunity” to become interim CEO at OpenAI. He said the company’s board “shared the situation” with him and asked him to the role. He quickly agreed.

    “I took this job because I believe that OpenAI is one of the most important companies currently in existence,” he wrote.

    Shear said he spent most of Sunday “drinking from the firehose as much as possible,” speaking to the board, employees and a small number of OpenAI’s partners.

    Investors, for their part, are trying to stabilize the situation. Microsoft CEO Satya Nadella weighed in a post on X early Monday morning, saying he was looking “forward to getting to know” the new management team at OpenAI and was “extremely excited” to bring on Altman and Brockman.

    In his post on X, Shear said he checked the reasoning behind the changes at OpenAI before he took the job.

    “The board did (asterisk)not(asterisk) remove Sam over any specific disagreement on safety, their reasoning was completely different from that,” he wrote.

    “I’m not crazy enough to take this job without board support for commercializing our awesome models,” he said, referring to the company’s popular AI tools like ChatGPT and the image generator DALL-E.

    “I have nothing but respect for what Sam and the entire OpenAI team have built,” he said. “It’s not just an incredible research project and software product, but an incredible company. I’m here because I know that, and I want to do everything in my power to protect it and grow it further.”

    Shear said he wants to accomplish three things within the next 30 days.

    In addition to hiring an independent investigator who will “generate a full report” about what happened, Shear said he wants to continue talking to stakeholders and reform the company’s management and leadership teams in light of recent departures.

    After that, he said he “will drive changes in the organization — up to and including pushing strongly for significant governance changes if necessary.”

    ″OpenAI’s stability and success are too important to allow turmoil to disrupt them like this,” he said.

    On a podcast in June, Shear said he’s generally optimistic about technology but has serious concerns about the path of artificial intelligence toward building something “a lot smarter than us” that sets itself on a goal that endangers humans. As an engineer, he said his approach would be to build AI systems at a small and gradual scale.

    “If there is a world where we survive … where we build an AI that’s smarter than humans and survive it, it’s going to be because we built smaller AIs than that, and we actually had as many smart people as we can working on that, and taking the problem seriously,” Shear said in June.

    Asked by an X user on Monday what his stance was on AI safety, Shear replied: “It’s important.”

    __

    AP reporter Matt O’Brien contributed to this report from Providence, Rhode Island.

    [ad_2]

    Source link

  • A Chinese man is extradited from Morocco to face embezzlement charges in Shanghai

    A Chinese man is extradited from Morocco to face embezzlement charges in Shanghai

    [ad_1]

    A Chinese man wanted for allegedly embezzling millions of yuan (hundreds of thousands of dollars) from his company and then fleeing to Morocco has been extradited back to China, State broadcaster CCTV showed the man being handcuffed and led to a police…

    ByThe Associated Press

    November 18, 2023, 10:24 AM

    BEIJING — A Chinese man wanted for allegedly embezzling millions of yuan (hundreds of thousands of dollars) from his company and then fleeing to Morocco was extradited back to China on Saturday, the Ministry of Public Security said.

    The man, a financial executive at the company, used passwords for its bank accounts to transfer money to his personal account, the ministry said in a statement. It didn’t name the company but said that Shanghai police filed a case against the man in February 2020.

    Moroccan police arrested him in April of this year and a court approved his extradition in late October. Chinese officials brought him back to Shanghai on Saturday.

    State broadcaster CCTV showed the man, identified only by his surname Luo, signing an arrest warrant after getting off the plane and then being handcuffed. Police officers led him from the jetway to the tarmac and to a waiting police car.

    The Public Security Ministry said it was the first extradition from Morocco to China since an extradition treaty between the two countries took effect in 2021.

    [ad_2]

    Source link

  • Washington Post names veteran media executive Will Lewis as its new publisher and CEO

    Washington Post names veteran media executive Will Lewis as its new publisher and CEO

    [ad_1]

    NEW YORK — The Washington Post has named veteran media executive Will Lewis to serve as its new CEO and publisher, hoping to turn around a recent slump that has seen job cuts and a declining audience.

    Lewis is the former top executive at the Wall Street Journal and lately founder of a start-up that tries to deliver news to young people. Post owner Jeff Bezos announced the appointment in an email to staff shortly before 8:30 Saturday night, after The New York Times published the news.

    Lewis, 54 and British born, began as a reporter and moved into management, first at the Daily Telegraph in England. He worked for Rupert Murdoch at News Corp. for a decade.

    The Post exploded in popularity during the Trump administration but recently has faced the same economic troubles as much of the news industry. It has gone through rounds of layoffs, shuttered its Sunday magazine and last month said it would offer 240 voluntary buyouts to its staff.

    Outgoing interim CEO Patty Stonesifer said that during a recent period of growth, the newspaper spent more than it could afford because financial projections were too optimistic.

    The Post has 2.5 million digital subscribers, a drop of more than 15% since news magnet Trump left office in 2021. By contrast, The New York Times counted 9.2 million digital subscribers in the middle of this year. In July, The Times reported that The Post is on track to lose about $100 million this year.

    Lewis said in a news release that he was “thrilled and humbled to be at its helm as both a media executive and former reporter.” He was not made available for comment on Sunday.

    “As I’ve gotten to know Will, I’ve been drawn to his love for journalism and passion for driving financial success,” Amazon founder Bezos, who has owned the Post since 2013, said in the memo to staff members.

    “Will embodies the tenacity, energy and vision needed for this role,” Bezos said. “He believes that together we will build the right future for the Post. I agree.”

    Lewis will assume the role at the Post effective Jan. 2, succeeding Stonesifer, who came on when Fred Ryan stepped down earlier this year after nearly a decade in the job. Stonesifer was formerly chief executive of the Gates Foundation and a member of the Amazon board.

    The Post newsroom is led by Sally Buzbee, its executive editor.

    “The Post needs to figure out what it can do to make it uniquely indispensable,” said Tom Rosenstiel, a journalism professor at the University of Maryland. The Times has expanded digitally with new areas of focus in recent years, including the popular Wirecutter consumer feature and a variety of games. It doesn’t make sense for The Post to compete in areas that The Times effectively owns, he said.

    The Post wisely brought back its Style brand recently and would be smart to emphasize its strength in investigative reporting, Rosenstiel said.

    Before going to the Journal, Lewis was chief creative officer of Murdoch’s News Corp., and group general manager for the company in the United Kingdom. He’s also known to be close to former British prime minister Boris Johnson.

    “He’s clearly going to have to prove to people at The Washington Post that he’s a journalist first and a political person second,” Rosenstiel said.

    Lewis is currently the founder, CEO and publisher of The News Movement, a social-first media business targeting a Gen Z audience. The Associated Press has worked with The News Movement, and Lewis is currently vice chair of the AP’s board of directors.

    The Post has cited Lewis’ success in building up digital subscriptions at the Journal, much like CNN recently pointed to former New York Times executive Mark Thompson’s work in the same area when it named Thompson as its chief executive. Lewis’ work trying to build young audiences is a plus when it’s important to the news industry in general, Rosenstiel said.

    [ad_2]

    Source link

  • Amazon used an algorithm to essentially raise prices on other sites, the FTC says

    Amazon used an algorithm to essentially raise prices on other sites, the FTC says

    [ad_1]

    Amazon used a secret algorithm to essentially help raise prices on other online sites and also “destroyed” internal communications as the Federal Trade Commission undertook an antitrust investigation against it, according to newly unredacted portions of the agency’s lawsuit.

    The new excerpts unveiled Thursday allege executives at the e-commerce giant intentionally deleted communication by using a feature on the popular app Signal that makes messages disappear. By doing this, the FTC said Amazon “destroyed more than two years” worth of communications from June 2019 to “at least early 2022” despite instructions it gave Amazon not to do so.

    In a prepared statement Amazon spokesperson Tim Doyle called the FTC’s claim “baseless and irresponsible.”

    “Amazon voluntarily disclosed employee Signal use to the FTC, painstakingly collected Signal conversations from its employees’ phones, and allowed agency staff to inspect those conversations even when they had nothing to do with the FTC’s investigation,” Doyle said.

    The FTC and 17 states sued Amazon in September alleging the company was abusing its position in the marketplace to inflate prices on and off its platform, overcharge sellers and stifle competition. Amazon is accused of violating federal and state antitrust laws, but the company has responded with a full-throated defense of its business practices.

    The antitrust case is the most aggressive move the government has taken to tame the market power of Seattle-based Amazon and comes as the FTC has been taking big swings against tech companies.

    The unredacted excerpts of the lawsuit disclosed on Thursday provided more details on a talked-about algorithm, which was previously reported by The Wall Street Journal and former Vox reporter Jason Del Ray.

    The FTC’s excerpts say the tool — codenamed “Project Nessie” — has been used by Amazon to pinpoint products that will allow it to rake in more cash. The company used it to predict where it can raise prices and have other shopping sites follow suit. Amazon activated the algorithm to raise prices on some products, and when others followed its lead, it kept the elevated prices in place, the agency said. Using Nessie has generated more than $1 billion in excess profits for Amazon, according to the FTC.

    The agency said Amazon deployed Project Nessie in 2014 and has turned it on and off at least eight times between 2015 and 2019.

    Regulators said though Amazon claims the algorithm is “currently paused,” the company has thought about running experiments in 2020 and 2021 to improve its effectiveness.

    Doyle, of Amazon, called Nessie an “old” pricing algorithm that’s being “grossly” mischaracterized by the agency. He said Nessie was used to stop Amazon’s “price matching from resulting in unusual outcomes where prices became so low that they were unsustainable.” And that Amazon scrapped it several years ago because it didn’t work as intended.

    The unredacted portions of the lawsuit also shed more light on Amazon’s advertising business.

    The agency claimed then-CEO Jeff Bezos instructed executives to accept more junk ads — internally called “defects” — because the company could earn more money through increased advertising despite their presence being a headache for consumers. Amazon called the claims “grossly misleading and taken out of context.”

    Meanwhile, another unredacted portion of the lawsuit provided more details on the government’s allegations that Amazon is essentially compelling sellers to use its logistics service called Fulfillment by Amazon, or FBA.

    The agency said in early 2019, the company turned against a program that allows sellers to display a Prime badge on their listings without using FBA when it learned other fulfillment providers were advertising their services to sellers. Amazon suspended enrollment in the program a few years ago, saying it wasn’t delivering the same high-quality experience customers expect from Prime. But the agency said in 2018, sellers enrolled in the program had met a “delivery estimate” requirement set by Amazon more than 95% of the time.

    NetChoice, an industry group backed by Amazon, said Thursday the FTC was being misleading and the delivery estimates noted in the complaint were set by sellers, not Amazon. Doyle, of Amazon, also said in 2018, sellers using the program were “promising deliveries within two days less than 16% of the time—far worse than the performance of sellers using Fulfillment by Amazon.”

    The company reopened enrollment into the program a few months ago, while under the glare of regulators.

    [ad_2]

    Source link

  • Amazon used an algorithm to essentially raise prices on other sites, the FTC says

    Amazon used an algorithm to essentially raise prices on other sites, the FTC says

    [ad_1]

    Amazon used a secret algorithm to essentially help raise prices on other online sites and also “destroyed” internal communications as the Federal Trade Commission undertook an antitrust investigation against it, according to newly unredacted portions of the agency’s lawsuit.

    The new excerpts unveiled Thursday allege executives at the e-commerce giant intentionally deleted communication by using a feature on the popular app Signal that makes messages disappear. By doing this, the FTC said Amazon “destroyed more than two years” worth of communications from June 2019 to “at least early 2022” despite instructions it gave Amazon not to do so.

    In a prepared statement Amazon spokesperson Tim Doyle called the FTC’s claim “baseless and irresponsible.”

    “Amazon voluntarily disclosed employee Signal use to the FTC, painstakingly collected Signal conversations from its employees’ phones, and allowed agency staff to inspect those conversations even when they had nothing to do with the FTC’s investigation,” Doyle said.

    The FTC and 17 states sued Amazon in September alleging the company was abusing its position in the marketplace to inflate prices on and off its platform, overcharge sellers and stifle competition. Amazon is accused of violating federal and state antitrust laws, but the company has responded with a full-throated defense of its business practices.

    The antitrust case is the most aggressive move the government has taken to tame the market power of Seattle-based Amazon and comes as the FTC has been taking big swings against tech companies.

    The unredacted excerpts of the lawsuit disclosed on Thursday provided more details on a talked-about algorithm, which was previously reported by The Wall Street Journal and former Vox reporter Jason Del Ray.

    The FTC’s excerpts say the tool — codenamed “Project Nessie” — has been used by Amazon to pinpoint products that will allow it to rake in more cash. The company used it to predict where it can raise prices and have other shopping sites follow suit. Amazon activated the algorithm to raise prices on some products, and when others followed its lead, it kept the elevated prices in place, the agency said. Using Nessie has generated more than $1 billion in excess profits for Amazon, according to the FTC.

    The agency said Amazon deployed Project Nessie in 2014 and has turned it on and off at least eight times between 2015 and 2019.

    Regulators said though Amazon claims the algorithm is “currently paused,” the company has thought about running experiments in 2020 and 2021 to improve its effectiveness.

    Doyle, of Amazon, called Nessie an “old” pricing algorithm that’s being “grossly” mischaracterized by the agency. He said Nessie was used to stop Amazon’s “price matching from resulting in unusual outcomes where prices became so low that they were unsustainable.” And that Amazon scrapped it several years ago because it didn’t work as intended.

    The unredacted portions of the lawsuit also shed more light on Amazon’s advertising business.

    The agency claimed then-CEO Jeff Bezos instructed executives to accept more junk ads — internally called “defects” — because the company could earn more money through increased advertising despite their presence being a headache for consumers. Amazon called the claims “grossly misleading and taken out of context.”

    Meanwhile, another unredacted portion of the lawsuit provided more details on the government’s allegations that Amazon is essentially compelling sellers to use its logistics service called Fulfillment by Amazon, or FBA.

    The agency said in early 2019, the company turned against a program that allows sellers to display a Prime badge on their listings without using FBA when it learned other fulfillment providers were advertising their services to sellers. Amazon suspended enrollment in the program a few years ago, saying it wasn’t delivering the same high-quality experience customers expect from Prime. But the agency said in 2018, sellers enrolled in the program had met a “delivery estimate” requirement set by Amazon more than 95% of the time.

    NetChoice, an industry group backed by Amazon, said Thursday the FTC was being misleading and the delivery estimates noted in the complaint were set by sellers, not Amazon. Doyle, of Amazon, also said in 2018, sellers using the program were “promising deliveries within two days less than 16% of the time—far worse than the performance of sellers using Fulfillment by Amazon.”

    The company reopened enrollment into the program a few months ago, while under the glare of regulators.

    [ad_2]

    Source link

  • Donald Trump’s sons Don Jr. and Eric set to testify at fraud trial that threatens family’s empire

    Donald Trump’s sons Don Jr. and Eric set to testify at fraud trial that threatens family’s empire

    [ad_1]

    NEW YORK — When Donald Trump became president in 2017, he handed day-to-day management of his real estate empire to his eldest sons, Donald Jr. and Eric.

    Now, as the Trumps fight to keep the family business intact, the brothers are set to testify in the New York civil fraud case that threatens their Trump Organization’s future.

    Donald Trump Jr. is expected to testify Wednesday and Eric Trump on Thursday, kicking off a blockbuster stretch as the trial in New York Attorney General Letitia James’ lawsuit enters its second month.

    James, a Democrat, alleges that Donald Trump, his company and top executives, including Eric and Donald Trump Jr., conspired to exaggerate his wealth by billions of dollars on financial statements that were given to banks, insurers and others to secure loans and make deals.

    Donald Trump — the former president, family patriarch and 2024 Republican front-runner — is slated to testify Monday, followed by his eldest daughter, ex-Trump Organization executive and White House adviser Ivanka Trump, on Nov. 8. State lawyers are expected to rest their case after that, giving Trump’s lawyers a chance to call their own witnesses.

    Donald Trump Jr. and Eric Trump are both executive vice presidents at the Trump Organization and defendants in James’ lawsuit. Eric has oversight over the company’s operations while Donald Trump Jr. has been involved in running the company’s property development. He and longtime company finance chief Allen Weisselberg were also trustees of the revocable trust Trump set up to hold the company’s assets when he became president.

    Before the trial, Judge Arthur Engoron ruled that Trump’s financial statements were fraudulent. He ordered that a court-appointed receiver seize control of some of his companies — potentially stripping him and his family of such marquee properties as Trump Tower — though an appeals court has halted enforcement for now.

    Like their father, both brothers have denied wrongdoing.

    Eric Trump has spent several days at the trial, often on the days his dad has been there. He’s commented sporadically, mostly on social media. On Oct. 5, he posted a video montage to Truth Social of James criticizing his father. With it, he wrote: “this is the corruption my father and our family is fighting! The system is weaponized, broken and disgusting!”

    Donald Trump Jr. hasn’t been to court, but since testimony began Oct. 2, he’s repeatedly denounced the case and Engoron as a “kangaroo court.” State law doesn’t allow for juries in this type of lawsuit, so Engoron will decide the case.

    “It doesn’t matter what the rules are, it doesn’t matter what the Constitution says, it doesn’t matter what general practices and business would be,” Donald Trump Jr. said Monday on Newsmax. “It doesn’t matter. They have a narrative, they have an end goal, and they’ll do whatever it takes to get there.”

    Building to Donald Trump Jr. and Eric Trump’s testimony, state lawyers have asked other witnesses about their role leading the Trump Organization and their involvement, over the years, in valuing their father’s properties and preparing his financial statements. Their names have also appeared on various emails and documents entered into evidence.

    David McArdle, an appraiser at commercial real estate firm Cushman & Wakefield, testified that Eric Trump had substantial input on valuing planned-but-never-built townhomes at a Trump-owned golf course in the New York City suburbs. McArdle said Eric Trump arrived at a “more lofty value” than him for the project but that going with the scion’s higher number wouldn’t have been credible.

    Donald Trump Jr. and Eric Trump have already been heard from at the trial, albeit in snippets of prior testimony. During opening statements on Oct. 2, state lawyers showed about a minute each from sworn depositions the brothers gave in the case.

    In his July 2022 clip, Donald Trump Jr. testified about his scant knowledge of the accounting standards known as Generally Accepted Accounting Principles — which state lawyers say were used at times and disregarded at others in preparing Donald Trump’s financial statements.

    Trump Jr., who’s never been an accountant, said he couldn’t recall having to use the GAAP standards in his work. He got a laugh out of a state lawyer when he said he’d learned about them “probably in Accounting 101 at Wharton” but didn’t remember much other than that they were “generally accepted.”

    In his March 2023 deposition, Eric Trump testified, “I don’t think I’ve had any involvement in the Statement of Financial Condition, to the best of my knowledge.” He appeared to minimize his role as a top company executive, testifying that he tried to remain “siloed into the things I care and are passionate about” while sharing management responsibilities with his brother.

    “I’m a construction, concrete and on-the-ground operations guy,” Eric Trump said, according to a deposition transcript posted on the case docket.

    Questioned at another point about decision-making earlier in his career, Eric Trump said: “I pour concrete. I operate properties. I don’t focus on appraisals between a law firm and Cushman. This is just not what I do in my day-to-day responsibilities.”

    Donald Trump attended the trial’s first three days in early October and showed up again for four days in the past two weeks, but his campaign schedule suggests it’s unlikely he’ll return to see his sons testify.

    In his past appearances, Trump groused to TV cameras outside court, calling the case a “sham,” a “scam,” and “a continuation of the single greatest witch hunt of all time.” He also angered the judge twice, incurring $15,000 in fines for violating a limited gag order with comments about a member of the court staff.

    ___

    Associated Press writer Jennifer Peltz contributed to this report.

    ___

    Follow Sisak at x.com/mikesisak and send confidential tips by visiting https://www.ap.org/tips

    [ad_2]

    Source link

  • US regulators sue SolarWinds and its security chief for alleged cyber neglect ahead of Russian hack

    US regulators sue SolarWinds and its security chief for alleged cyber neglect ahead of Russian hack

    [ad_1]

    U.S. regulators on Monday sued SolarWinds, a Texas-based technology company whose software was breached in a massive 2020 Russian cyberespionage campaign, for fraud for failing to disclose security deficiencies ahead of the stunning hack.

    The company’s top security executive was also named in the complaint filed by the Securities and Exchange Commission seeking unspecified civil penalties, reimbursement of “ill-gotten gains” and the executive’s removal.

    Detected in December 2020, the SolarWinds hack penetrated U.S. government agencies including the Justice and Homeland Security departments, and more than 100 private companies and think tanks. It was a rude wake-up call that raised awareness in Washington about the urgency of stepping up efforts to better guard against intrusions.

    In the 68-page complaint filed in New York federal court, the SEC says SolarWinds and its then vice president of security, Tim Brown, defrauded investors and customers “through misstatements, omissions and schemes” that concealed both the company’s “poor cybersecurity practices and its heightened — and increasing — cybersecurity risks.”

    In a statement, SolarWinds called the SEC charges unfounded and said it is “deeply concerned this action will put our national security at risk.”

    Brown performed his responsibilities “with diligence, integrity, and distinction,” his lawyer, Alec Koch, said in a statement. Koch added that “we look forward to defending his reputation and correcting the inaccuracies in the SEC’s complaint.” Brown’s current title at SolarWinds is chief information security officer.

    The SEC’s enforcement division director, Gurbir S. Grewal, said in a statement that SolarWinds and Brown ignored “repeated red flags” for years, painting “a false picture of the company’s cyber controls environment, thereby depriving investors of accurate material information.”

    The very month that SolarWinds registered for an initial public offering, October 2018, Brown wrote in an internal presentation that the company’s “current state of security leaves us in a very vulnerable state,” the complaint says.

    Among the SEC’s damning allegations: An internal SolarWinds presentation shared that year said the company’s network was “not very secure,” meaning it was vulnerable to hacking that could lead to “major reputation and financial loss.” Throughout 2019 and 2020, the SEC alleged, multiple communications among SolarWinds employees, including Brown, “questioned the company’s ability to protect its critical assets from cyberattacks.”

    SolarWinds, which is based in Austin, Texas, provides network-monitoring and other technical services to hundreds of thousands of organizations around the world, including most Fortune 500 companies and government agencies in North America, Europe, Asia and the Middle East.

    The nearly two-year espionage campaign involved the infection of thousands of customers by seeding malware in the update channel of the company’s network management software. Capitalizing on the supply-chain hack, the Russian cyber operators then stealthily penetrated select targets including at least nine U.S. government agencies and prominent software and telecommunications providers.

    In its statement, SolarWinds called the SEC action an “example of the agency’s overreach (that) should alarm all public companies and committed cybersecurity professionals across the country.”

    It did not explain how the SEC’s action could put national security at risk, though some in the cybersecurity community have argued that holding corporate information security officers personally responsible for identified vulnerabilities could make them less diligent about uncovering and/or disclosing them — and discourage qualified people from aspiring to such positions.

    Under the Biden administration, the SEC has been aggressive about holding publicly traded companies to account for cybersecurity lapses and failures to disclose vulnerabilities. In July, it adopted rules requiring them to disclose within four days all cybersecurity breaches that could affect their bottom lines. Delays would be permitted if immediate disclosure poses serious national-security or public-safety risks.

    Victims of the SolarWinds hack whose Microsoft email accounts were violated included the New York federal prosecutors’ office, then-acting Homeland Security Secretary Chad Wolf and members of the department’s cybersecurity staff, whose jobs included hunting threats from foreign countries.

    [ad_2]

    Source link