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Tag: Corporate news

  • Hard-drive maker Seagate Tech faces China sanctions warning

    Hard-drive maker Seagate Tech faces China sanctions warning

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    BEIJING — Seagate Technology said Thursday the U.S. Department of Commerce has warned it may charge the computer hard-drive maker with violating restrictions on exports of high-tech products to China.

    The company said in an SEC filing that it rejected the allegations. It says its hard disc-drives are not subject to U.S. Export Administration regulations, but troubles over the issue could affect its business.

    “Seagate believes it has complied with all relevant export control laws and regulations,” it said.

    Seagate said the allegation is over sales between August 2020 and September 2021 to “a customer and its affiliates.” It did not name the customer, however, Seagate is a major supplier of hard drives to telecoms equipment giant Huawei Technologies, a major target of U.S. export controls.

    The other major supplier, Western Digital, stopped sales to Huawei in 2019, not long after it had signed a strategic partnership with the Chinese company, the biggest maker of network gear for phone and internet carriers.

    Huawei did not immediately respond to a request for comment.

    In reporting lower profit and revenues for its fiscal first quarter, Seagate said it was reducing its headcount by 3,000 people as part of a restructuring. It cited global uncertainties and slower demand.

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  • Ye kicked out of Skechers’ headquarters in California

    Ye kicked out of Skechers’ headquarters in California

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    MANHATTAN BEACH, Calif. — The rapper formerly known as Kanye West was escorted out of the California-based headquarters of athletic shoemaker Skechers after he showed up unannounced Wednesday, a day after Adidas ended its partnership with the artist following his antisemitic remarks.

    The Grammy winner, who legally changed his name to Ye, “arrived unannounced and without invitation” at Skechers corporate headquarters in Manhattan Beach, southwest of Los Angeles, the company said.

    “Considering Ye was engaged in unauthorized filming, two Skechers executives escorted him and his party from the building after a brief conversation,” according to a company statement.

    “Skechers is not considering and has no intention of working with West,” the company said. “We condemn his recent divisive remarks and do not tolerate antisemitism or any other form of hate speech.”

    The rapper’s Instagram account — which had been suspended over antisemitic comments — resumed posting Tuesday night. A new message showing a screen grab of a text message that appeared to be from a contact at a high-profile law firm spelled out when Ye could resume making apparel and new shoe designs.

    Details of the message could not be verified; email messages sent to representatives for Ye weren’t immediately returned.

    For weeks, Ye has made antisemitic comments in interviews and social media, including a Twitter post earlier this month that he would soon go “death con 3 on JEWISH PEOPLE,” an apparent reference to the U.S. defense readiness condition scale known as DEFCON. His posts led to his suspension from both Twitter and Instagram.

    He apologized for the tweet on Monday.

    On Tuesday, sportswear manufacturer Adidas announced that it was ending a partnership with Ye that helped make him a billionaire, saying it doesn’t tolerate antisemitism and hate speech.

    The German sneaker giant said it expected that the decision to immediately stop production of its Yeezy products would cause a hit to its net income of up to 250 million euros ($246 million).

    The company had stuck with Ye through other controversies after he suggested slavery was a choice and called the COVID-19 vaccine the “mark of the beast.”

    Other companies also have announced they were cutting ties with Ye, including Foot Locker, Gap, TJ Maxx, JPMorgan Chase bank and Vogue magazine. An MRC documentary about him was also scrapped.

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  • Kanye West kicked out of Skechers California headquarters

    Kanye West kicked out of Skechers California headquarters

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    MANHATTAN BEACH, Calif. — Kanye West was escorted out of the California-based headquarters of athletic shoemaker Skechers after he showed up unannounced Wednesday, a day after Adidas ended its partnership with the artist following his antisemitic remarks.

    West, who legally changed his name to Ye, “arrived unannounced and without invitation” at Skechers corporate headquarters in Manhattan Beach, southwest of Los Angeles, the company said.

    “Considering Ye was engaged in unauthorized filming, two Skechers executives escorted him and his party from the building after a brief conversation,” according to a company statement.

    “Skechers is not considering and has no intention of working with West,” the company said. “We condemn his recent divisive remarks and do not tolerate antisemitism or any other form of hate speech.”

    Email messages sent to representatives for West weren’t immediately returned.

    For weeks, Ye has made antisemitic comments in interviews and social media, including a Twitter post earlier this month that he would soon go “death con 3 on JEWISH PEOPLE,” an apparent reference to the U.S. defense readiness condition scale known as DEFCON. He was suspended from both Twitter and Instagram.

    He apologized for the tweet on Monday.

    On Tuesday, sportswear manufacturer Adidas announced that it was ending a partnership with West that helped make him a billionaire, saying it doesn’t tolerate antisemitism and hate speech.

    The German sneaker giant said it expected the decision to immediately stop production of its Yeezy products will cause a hit to its net income of up to 250 million euros ($246 million).

    The company had stuck with Ye through other controversies after he suggested slavery was a choice and called the COVID-19 vaccine the “mark of the beast.”

    Other companies also have announced they were cutting ties with West, including Foot Locker, Gap, TJ Maxx, JPMorgan Chase bank and Vogue magazine. An MRC documentary about him was also scrapped.

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  • Park outside: Kia recalls SUVs again for risk of engine fire

    Park outside: Kia recalls SUVs again for risk of engine fire

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    FILE – The company logo shines off the hood of a 2021 K5 sedan on display in the Kia exhibit at the Denver auto show Friday, Sept. 17, 2021, at Elitch’s Gardens in downtown Denver. Kia is telling owners, Wednesday, Oct. 26, 2022, of nearly 72,000 older Sportage small SUVs in the U.S. to park them outdoors and away from structures after getting reports of more engine fires. It’s the second time that Sportages from the 2008 and 2009 model years have been recalled due to fire risks that apparently can start near a hydraulic engine control device. (AP Photo/David Zalubowski, File)

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  • Google’s ad sales slow dramatically, eroding parent’s profit

    Google’s ad sales slow dramatically, eroding parent’s profit

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    SAN FRANCISCO — Summertime revenue growth at Google’s corporate parent slipped to its slowest pace since the pandemic jarred the economy more than two years ago, with advertisers clamping down on spending and bracing for a potential recession.

    Alphabet Inc., which owns an array of smaller technology companies in addition to Google, on Tuesday posted revenue of $69.1 billion for the July-September quarter, a 6% increase from the same time last year.

    It marked the first time Alphabet’s year-over-year quarterly revenue has risen by less than 10% since the April-June period of 2020. At that time, the advertisers that generate most of its revenue pulled in their reins because of the economic uncertainty during the pandemic’s early months.

    Google’s ad sales weakened even more dramatically than Alphabet’s overall revenue. Ad revenue totaled $54.5 billion, up just 2.5% from the same time last year. In another sign of more challenging times, YouTube’s quarterly ad sales decreased 2% from last year, the first time the video site’s revenue has regressed since Google began disclosing its results in 2019.

    The revenue slowdown also created a drag on Alphabet’s profits. The Mountain View, California, company earned $13.9 billion, $1.06 per share, a 27% drop from the same time last year. Both revenue and earnings per share fell below projections of analysts surveyed by FactSet.

    Alphabet’s shares declined nearly 7% in extended trading after the numbers came out. The stock price has plummeted by more than 30% this year, erasing about $600 billion in shareholder wealth.

    “Online ad spending is clearly slowing more than we thought,” said David Heger, an analyst for Edward Jones. “It looks like it is going to be tough sledding for the next few quarters.”

    Alphabet CEO Sundar Pichai described the conditions as “uncertain” and told analysts during a conference call, “it is a moment where you take the time to optimize the company to make sure we are set up for the next decade of growth ahead.”

    Google’s moneymaking machine, propelled by its dominant search engine, roared back as pandemic restrictions loosened last year and government stimulus juiced the economy, helping power Alphabet to a 41% increase in its revenue last year that lifted its stock price to new peaks.

    But the economy has been sputtering in recent months as central bankers steadily lift interest rates to combat the highest inflation rates in more than 40 years, a strategy that is threatening to plunge the economy into a recession. As it is, many households have already tightened their budgets and cut back on some discretionary items — a trend that has prompted advertisers to spend less marketing their products and services.

    “This disappointing quarter for Google signifies hard times ahead,” warned Insider Intelligence analyst Evelyn Mitchell.

    Alphabet has vowed to scale back its hiring, but didn’t show much restraint during the summer months. After adding 17,500 employees to its payroll during the first half of the year, the company’s workforce increased by another 11,765 people in the past quarter. Alphabet ended September with nearly 187,000 employees.

    Ruth Porat, Alphabet’s chief financial officer, predicted during the conference call that the company will hire fewer than 6,380 workers during the final three months of this year, a more measured approach that Pichai said would continue into next year.

    The cautious remarks came after Pichai told Alphabet employees last month to be “a bit more responsible through one of the toughest macroeconomic conditions” of the past decade and urged them not to “equate fun with money.”

    Although the economy is squeezing its finances, Google is faring far better than other internet companies whose fortunes are tied to digital advertising. Facebook suffered its first year-over-year quarterly decline in revenue earlier this year. Another social networking company, Snap, has been so hard hit that its stock price has plunged by more than 80% so far this year.

    Facebook, Snap and a variety of other internet services rely on being able to track users’ whereabouts and online activities to target ads. Apple began blocking that tracking on iPhones 18 months ago unless users consented to the surveillance. Google’s search engine is still able to gather personal information prized by advertisers through its search engine, minimizing the impact of Apple’s tougher privacy controls on its revenue.

    Facebook’s corporate parent, Meta Platforms, is scheduled to report its results for the latest quarter Wednesday afternoon.

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  • Stocks end higher on Wall Street as earnings roll in

    Stocks end higher on Wall Street as earnings roll in

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    NEW YORK — Wall Street notched more gains Tuesday, as major stock indexes rallied for the third day and Treasury yields fell again.

    The S&P 500 rose 1.6%, with roughly 90% of stocks in the index notching gains. The benchmark index hadn’t been able to string together more than two gains in a row since mid-September.

    The Dow Jones Industrial Average rose 1.1% and the Nasdaq closed 2.3% higher. Smaller company stocks outpaced the broader market, lifting the Russell 2000 index 2.7% higher.

    The latest gains came as bond yields fell significantly, reflecting speculation among investors that the Federal Reserve may begin easing up on its aggressive pace of interest rate increases as soon as this year.

    The yield on the 10-year Treasury, which impacts mortgage rates, slipped to 4.09% from 4.23% late Monday. The yield on the two-year Treasury, which tracks Federal Reserve action, fell to 4.45% from 4.50% late Monday.

    “It seems like the market is saying that they think perhaps longer-term yields have peaked, and that’s providing some optimism to the (stock) market,” said Randy Frederick, managing director of trading & derivatives at Charles Schwab.

    The S&P 500 rose 61.77 points to 3,859.11. The Dow added 337.12 points to close at 31,836.74. The Nasdaq gained 246.50 points at 11,199.12. The Russell 2000 picked up 47.76 points, closing at 1,796.16.

    Technology stocks, retailers and communication companies were among the biggest drivers of Tuesday’s rally. Traders were sizing up a heavy round of earnings reports from big U.S. companies.

    General Motors rose 3.6% after delivering solid results. United Parcel Service initially rose, but then slipped 0.3% after the package delivery service beat Wall Street’s third-quarter earnings and revenue forecasts. Paint maker Sherwin-Williams jumped 3.6% after also reporting solid financial results.

    Packaging maker Crown Holdings fell 16.8% after its latest earnings fell short of estimates. Industrial conglomerate General Electric fell 0.5% after reporting weak third-quarter earnings.

    Many other big names are on deck to report earnings throughout the week. Boeing, Ford and Facebook’s parent company will report results on Wednesday. Caterpillar, Apple and Amazon are among the big companies reporting results on Thursday.

    Outside of earnings, barbecue grill maker Weber soared 30.4% after it said BDT Capital Partners is interested in buying the rest of the company. Adidas fell 2.4% after the German sportswear company ended its partnership with the rapper formerly known as Kanye West over his offensive and antisemitic remarks.

    The latest round of earnings reports are particularly important for investors looking for indications of inflation’s impact on various industries. Prices on everything from clothing to food remain at their highest levels in four decades, putting pressure on companies to raise prices and cut costs, while squeezing consumers.

    The Federal Reserve and central banks around the world have been raising interest rates to tame inflation. That has investors concerned about the central bank going too far in trying to slow the economy and instead causing a recession.

    The Fed is expected to raise interest rates another three-quarters of a percentage point at its upcoming meeting in November. But traders have grown more confident that the Fed will dial down to a more modest increase of 0.50 percentage points in December, according to CME Group.

    Markets have been looking for any sign that the central bank is ready to ease up on rate increases. That includes data that the economy is slowing.

    A measure of home prices released on Tuesday showed that the housing market continues to cool. The S&P CoreLogic Case-Shiller Index, which tracks prices in major cities, fell more than expected in August. The Fed’s aggressive interest rate increases have been making borrowing more expensive, in turn driving mortgage rates higher and crimping the broader housing market.

    The U.S. economy is already slowing down and actually contracted during the first half the year. The government will release its third-quarter gross domestic product report on Thursday.

    ———

    Elain Kurtenbach, Matt Ott and Joe McDonald contributed to this report.

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  • Drizly agrees to tighten data security after alleged breach

    Drizly agrees to tighten data security after alleged breach

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    WASHINGTON — Alcohol delivery app Drizly has agreed to tighten its data security and limit data collection to resolve federal regulators’ allegations that its security failures exposed the personal information of some 2.5 million customers.

    The Federal Trade Commission announced the action Monday against Drizly, a Boston-based subsidiary of Uber that delivers beer, wine and spirits in states where it’s legal, and partners with retailers in hundreds of cities around the US. The proposed consent agreement with the FTC also names Drizly CEO James Cory Rellas. The regulators allege that the company and Rellas were alerted to security problems two years before the 2020 breach yet failed to act to protect consumers’ data.

    Drizly agreed to put in a comprehensive data security program and establish security safeguards, and to limit future data collection or storage to that which is necessary for specific purposes. It will also destroy unnecessary data.

    “Our proposed order against Drizly not only restricts what the company can retain and collect going forward but also ensures the CEO faces consequences for the company’s carelessness,” Samuel Levine, director of the FTC’s bureau of consumer protection, said in a statement. “CEOs who take shortcuts on security should take note.”

    Drizly collects and stores on Amazon Web Services cloud-computing service a wide range of personal data from customers such as email and postal addresses, phone numbers, geolocation information and data purchased from third parties, according to the FTC.

    “We take consumer privacy and security very seriously at Drizly, and are happy to put this 2020 event behind us,” the company said in a statement.

    The proposed consent agreement will be opened to public comment for 30 days, after which the FTC will decide whether to make it final.

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  • COP27’s Coke sponsorship leaves bad taste with green groups

    COP27’s Coke sponsorship leaves bad taste with green groups

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    LONDON — This year’s United Nations climate summit is brought to you by Coke.

    Soft drink giant Coca-Cola Co.’s sponsorship of the flagship U.N. climate conference, known as COP27, sparked an online backlash and highlighted broader concerns about corporate lobbying and influence.

    The COP27 negotiations aimed at limiting global temperature increases are set to kick off next month in the Red Sea resort town of Sharm el-Sheikh. The Egyptian organizers cited Coca-Cola’s efforts to reduce greenhouse gas emissions and key focus on climate when they announced the sponsorship deal in September, which triggered immediate outrage on social media.

    Activists slammed the company for its outsized role contributing to plastic pollution and pointed to the deal as an example of corporate “greenwash” — exaggerating climate credentials to mask polluting behaviors. An online petition calling for Coke to be removed as a sponsor has garnered more than 228,000 signatures, while hundreds of civil society groups signed an open letter demanding polluting companies be banned from bankrolling or being involved in climate talks.

    Coca-Cola said its participation underscores its ambitious plans to cut its emissions and clean up plastic ocean trash.

    Critics say corporate involvement goes against the spirit of the meetings, where tens of thousands of delegates from around the world gather to hammer out global agreements on combating climate change to stop the earth from warming to dangerous levels. This year, the focus is on how to implement promises made at previous conferences, according to the Egyptian presidency.

    At COP meetings, “the corporate presence is huge, of course, and it’s a slick marketing campaign for them,” said Bobby Banerjee, a management professor at City University of London’s Bayes Business School, who has attended three times since 2011.

    Over the years, the meetings have evolved to resemble trade fairs, with big corporations, startups and industry groups setting up stalls and pavilions on the sidelines to lobby and schmooze — underscoring how a growing number of companies want to engage with the event, sensing commercial opportunities as climate change becomes a bigger global priority.

    IBM, Microsoft, Boston Consulting Group and Vodafone also have signed up as sponsors or partners but have drawn less flak for their participation than Coca-Cola.

    The United Nations Climate Change press office referred media inquiries to the organizers, saying it was a matter between Egypt and the company. The Egyptian presidency didn’t respond to email requests for comment. U.N. Climate Change’s website says it “seeks to engage in mutually beneficial partnerships with non-Party stakeholders.”

    Georgia Elliott-Smith, a sustainability consultant and environmental activist who set up the online petition, said she’s calling on the U.N. “to stop accepting corporate sponsorship for these events, which simply isn’t necessary, and stop enabling these major polluters to greenwash their brands, piggybacking on these really critical climate talks.”

    Environmental groups slammed the decision to let Coca-Cola be a sponsor, saying it’s one of the world’s biggest plastic producers and top polluters. They say manufacturing plastic with petroleum emits carbon dioxide and many of the single-use bottles are sold in countries with low recycling rates, where they either end up littering oceans or are incinerated, adding more carbon emissions to the atmosphere.

    In a statement, Coca-Cola said it shares “the goal of eliminating waste from the ocean” and appreciates “efforts to raise awareness about this challenge.” Packaging accounts for about a third of Coke’s carbon footprint, and the company said it has “ambitious goals,” including helping collect a bottle or can for every one it sells, regardless of maker, by 2030.

    Coca-Cola said it will partner with other businesses, civil society organizations and governments “to support cooperative action” on plastic waste and noted that it signed joint statements in 2020 and 2022 urging U.N. member states to adopt a global treaty to tackle the problem “through a holistic, circular economy approach.”

    “Our support for COP27 is in line with our science-based target to reduce absolute carbon emissions 25% by 2030, and our ambition for net zero carbon emissions by 2050,” the company said by email.

    Experts say sponsorships overshadow a bigger problem behind the scenes: fossil fuel companies lobbying and influencing the talks in backroom negotiations.

    “The real deals are handled indoors, you know, in closed rooms,” said Banerjee, the management professor. At the first one he attended — COP17 in Durban, South Africa, in 2011 — he tried to get into a session on carbon emissions in the mining industry, a topic he was researching.

    “But guess what? They turned me away, and who walks into the room to discuss, to develop global climate policy? CEOs of Rio Tinto, Shell, BP, followed by the ministers,” Banerjee said, adding that a Greenpeace member behind him was also blocked. “This group of people — mining companies and politicians — are deciding on carbon emissions.”

    Elliott-Smith, the environmental activist, attended last year’s COP26 in Glasgow, Scotland, as a legal observer to the negotiations. While she’s not naive about corporate-political lobbying, she was “really shocked at the amount of corporates attending the conference, (and) of the open participation between CEOs and climate negotiating delegations in these conversations.”

    In Glasgow, retailers, tech companies and consumer goods brands were signed up as partners, but fossil fuel companies were reportedly banned by the British organizers. Still, more than 500 lobbyists linked to the industry attended, according to researchers from a group of NGOs who combed through the official accreditation list.

    This year, oil and gas companies might feel more welcome because Egypt is expected to spotlight the region and attract a big contingent from Middle Eastern and North African countries, whose economies and government revenue depend on pumping oil and gas.

    Egypt historically sided with developing countries resisting pressure to cut emissions further, which say they shouldn’t have to pay the price for rich countries’ historical carbon dioxide emissions.

    Ahead of the meeting, U.N. human rights experts and international rights groups criticized the Egyptian government’s human rights track record, accusing authorities of covering up a decade of violations, including a clampdown on dissent, mass incarcerations and rollback of personal freedoms, in an attempt to burnish its international image. The country’s foreign minister told The Associated Press earlier this year that there would be space for protests.

    Against this backdrop, “it will be that much easier to censor, prohibit or silence attempts by civil society seeking to hold the process accountable to delivering the needed outcomes,” said Rachel Rose Jackson, director of climate research and policy at watchdog group Corporate Accountability. “It will also make the polluter PR and greenwashing surrounding the talks that much more effective.”

    ———

    Follow all AP stories on climate change at https://apnews.com/hub/climate-and-environment

    ———

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Boeing crashes: Passengers’ families deemed crime victims

    Boeing crashes: Passengers’ families deemed crime victims

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    FORT WORTH, Texas — A federal judge ruled Friday that relatives of people killed in the crashes of two Boeing 737 Max planes are crime victims under federal law and should have been told about private negotiations over a settlement that spared Boeing from criminal prosecution.

    The full impact of the ruling is not yet clear, however. The judge said the next step is to decide what remedies the families should get for not being told of the talks with Boeing.

    Some relatives are pushing to scrap the government’s January 2021 settlement with Boeing, and they have expressed anger that no one in the company has been held criminally responsible.

    Boeing Co., which is based in Arlington, Virginia, did not immediately respond to a request for comment.

    Boeing, which misled safety regulators who approved the Max, agreed to pay $2.5 billion including a $243.6 million fine. The Justice Department agreed not to prosecute the company for conspiracy to defraud the government.

    The Justice Department, in explaining why it didn’t tell families about the negotiations, argued that the relatives are not crime victims. However, U.S. District Judge Reed O’Connor in Fort Worth, Texas, said the crashes were a foreseeable consequence of Boeing’s conspiracy, making the relatives representatives of crime victims.

    “In sum, but for Boeing’s criminal conspiracy to defraud the FAA, 346 people would not have lost their lives in the crashes,” he wrote.

    Naoise Connolly Ryan, whose husband died in the second Max crash, in Ethiopia, said Boeing is responsible for his death.

    “Families like mine are the true victims of Boeing’s criminal misconduct, and our views should have been considered before the government gave them a sweetheart deal,” she said in a statement issued by a lawyer for the families.

    The first Max crashed Indonesia in October 2018, killing 189, and another crashed five months later in Ethiopia, killing 157. All Max jets were grounded worldwide for nearly two years. They were cleared to fly again after Boeing overhauled an automated flight-control system that activated erroneously in both crashes.

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  • Advanced recycling: Plastic crisis solution or distraction?

    Advanced recycling: Plastic crisis solution or distraction?

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    PROVIDENCE, R.I. — The plastics industry says there is a way to help solve the crisis of plastic waste plaguing the planet’s oceans, beaches and lands— recycle it, chemically.

    Chemical recycling typically uses heat or chemical solvents to break down plastics into liquid and gas to produce an oil-like mixture or basic chemicals. Industry leaders say that mixture can be made back into plastic pellets to make new products.

    “What we are trying to do is really create a circular economy for plastics because we think it is the most viable option for keeping plastic out of the environment,” said Joshua Baca, vice president of the plastics division at the American Chemistry Council, the industry trade association for American chemical companies.

    ExxonMobil, New Hope Energy, Nexus Circular, Eastman, Encina and other companies are planning to build large plastics recycling plants. Seven smaller facilities across the United States already recycle plastic into new plastic, according to the ACC. A handful of others convert hard-to-recycle used plastics into alternative transportation fuels for aviation, marine and auto uses.

    But environmental groups say advanced recycling is a distraction from real solutions like producing and using less plastic. They suspect the idea of recyclable plastics will enable the steep ramp up in plastic production to continue. And while the amount produced globally grows, recycling rates for plastic waste are abysmally low, especially in the United States.

    Plastic packaging, multi-layered films, bags, polystyrene foam and other hard-to-recycle plastic products are piling up in landfills and in the environment, or going to incinerators.

    Judith Enck, the founder and president of Beyond Plastics, says plastics recycling doesn’t work and never will. Chemical additives and colorants used to give plastic different properties mean that there are thousands of types, she said. That’s why they can’t be mixed together and recycled in the conventional, mechanical way. Nor is there much of a market for recycled plastic, because virgin plastic is cheap, she said.

    So what is more likely to happen than actual recycling, said Enck, a former regional administrator at the U.S. Environmental Protection Agency, is the industry will shift to burning plastics as waste or as fuel.

    Lee Bell, a policy advisor for the International Pollutants Elimination Network, thinks chemical recycling is a public relations exercise by the petrochemical industry. The purpose is to dissuade regulators from capping plastics production. Making plastic could become even more important to the fossil fuel industry as climate change puts pressure on their transportation fuels, Bell said.

    The industry has made roughly 11 billion metric tons of plastic since 1950, with half of that produced since 2006, according to industrial ecologist Roland Geyer. Global plastic production is expected to more than quadruple by 2050, according to the United Nations Environment Programme and GRID-Arendal in Norway.

    The international Organisation for Economic Co-operation and Development says the share of plastic waste that is successfully recycled is projected to rise to 17% in 2060 from 9% in 2019 if no additional policies are enacted to restrain plastic demand and enhance recycling, but that wouldn’t begin to keep up with the projected growth in plastic waste. With more ambitious policies, the amount of plastic waste that is recycled could rise to 40% to 60%, according to OECD.

    Two groups working to reduce plastic pollution, the Last Beach Clean Up and Beyond Plastics, estimated that the U.S. rate for recycling plastic waste in 2021 was even lower — 5% to 6%, after China stopped accepting other countries’ waste in 2018.

    The U.S. national recycling strategy says no option, including chemical recycling, should be ruled out. The way to think of these new plants, the industry says, is as manufacturing plants. They should be legally defined that way, and not as waste management. About 20 states have adopted laws in the past five years consistent with that wish. Opponents say it’s a way to skirt the more stringent environmental regulations that apply to waste management facilities.

    EXISTING PLANTS

    The U.S. facilities currently recycling plastic into new plastic are small — the largest is a 60-ton-per-day plant in Akron, Ohio, Alterra Energy, according to the ACC.

    Alterra Energy says it takes in the hard-to-recycle plastics, like flexible pouches, multi-layered films and rigid plastics from automobiles — everything except plastic water bottles since those are recycled mechanically, or plastics marked with a “3” since they contain polyvinyl chloride, or PVC.

    “Our mission is to solve plastic pollution,” said Jeremy DeBenedictis, company president. “That is not just a tag line. We all truly want to solve plastic pollution.”

    The Ohio facility typically takes in 40 tons to 50 tons per day, heating and liquifying the plastic to turn it back into an oil or hydrocarbon liquid, about 10,000 gallons to 12,000 gallons daily. About 75% of what comes into the facility can be liquified like that. Another 15% is turned into a synthetic natural gas to heat the process, while the remainder — paper, metals, dyes, inks and colorants — exit the reactor as a byproduct, or carbon char, DeBenedictis said. The char is disposed of as nonhazardous waste, though in the future some hope to sell it to the asphalt industry.

    The process doesn’t involve oxygen so there’s no combustion or incineration of plastics, DeBenedictis said, and their product is trucked as a synthetic oil to petrochemical companies, essentially the “building blocks on a molecular level for new plastic production.”

    The materials they take in, that haven’t been able to be recycled until now, should not be sent to landfills, dumped in the ocean or incinerated, DeBenedictis said.

    “That next level has to be a new technology, what you call chemical recycling or advanced recycling. That’s the next frontier,” he said.

    “Let’s not kid ourselves here. This is the right time to do it,” added company CEO Fred Schmuck. “There is absolutely no way we can meet our climate goals without addressing plastic waste.”

    DeBenedictis said he’s licensing the technology to try to grow the industry because that’s the “best way to make the quickest impact to the world.” A Finnish oil and gas company, Neste, is currently working to commercialize Alterra’s technology in Europe.

    The main chemical recycling technologies use pyrolysis, gasification or depolymerization. Neil Tangri, the science and policy director at the Global Alliance for Incinerator Alternatives, is skeptical. He says he has been hearing that pyrolysis is going to change everything since the 1990s, but it hasn’t happened. Instead, plastic production keeps climbing.

    GAIA views chemical recycling as a false solution that will facilitate greater production of virgin plastic — a high-energy process with high-carbon emissions that releases hazardous air pollutants, Tangri said. Instead, GAIA wants plastic production to be dramatically scaled back and only recyclable plastics to be produced.

    “Nobody needs more plastic,” Tangri said. “We keep trying to solve these production problems with recycling when really we need to change how much we make and what we make. That’s where the solution lies.”

    EQUITY ISSUES IN SITING PLANTS

    In Rhode Island, state lawmakers considered a bill this year to exempt such facilities from solid waste licensing requirements. It was vigorously opposed by environmental activists and residents near the port of Providence who feared it would lead to a new plant in their neighborhood. State environmental officials sided with them.

    Monica Huertas, executive director of The People’s Port Authority, helped lead the opposition. The neighborhood is already overburdened by industry, she said, so much so that she sometimes has asthma attacks after walking around.

    Dwayne Keys said it’s unfair that he and his neighbors always have to be on guard for proposals like these, unlike residents in some of the state’s wealthy, white neighborhoods. The port area has enough environmental hazards that residents don’t benefit from economically, he added. Keys calls it environmental racism.

    “The assessment is, we’re the path of least resistance,” he said. “Not that there’s no resistance, but the least. We’re a coalition of individuals volunteering our time. We don’t have wealth or access to resources or the legal means, as opposed to our white counterparts in higher income, higher net worth communities.”

    The chemistry council’s Baca said the facilities operate at the highest standards, the industry believes everyone deserves clear air and water, and he would invite any detractors to one of the facilities so they can see that firsthand.

    U.S. plastics producers have said they will recycle or recover all plastic packaging used in the United States by 2040, and have already announced more than $7 billion in investments in both mechanical and chemical recycling.

    “I think we are on the cusp of a sustainability revolution where circularity will be the centerpiece of that,” Baca said. “And innovative technologies like advanced recycling will be what makes this possible.”

    Kate O’Neill wrote the book on waste, called “Waste.” A professor in the Department of Environmental Science, Policy and Management at the University of California, Berkeley, she has thought a lot about whether chemical recycling should be part of the solution to the plastic crisis. She said she has concluded yes, even though she knows saying so would “piss off the environmentalists.”

    “With some of these big problems,” she said, “we can’t rule anything out.”

    ———

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Boston Beer, Schlumberger rise; Snap, Twitter fall

    Boston Beer, Schlumberger rise; Snap, Twitter fall

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    Stocks that traded heavily or had substantial price changes Friday: Boston Beer, Schlumberger rise; Snap, Twitter fall

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

    Snap Inc., down $3.03 to $7.76.

    The owner of Snapchat gave a lackluster forecast for the fourth quarter.

    Twitter Inc., down $2.55 to $49.89.

    Elon Musk could cut almost 75% of the social media company’s workforce, according to a report.

    CSX Corp., up 46 cents to $27.54.

    The railroad’s third-quarter earnings and revenue beat analysts’ forecasts.

    SVB Financial Group, down $72.43 to $230.03.

    The financial services firm gave investors a disappointing financial forecast.

    Boston Beer Co., up $66.12 to $402.28.

    The brewer of Samuel Adams beer beat Wall Street’s third-quarter revenue forecasts.

    Schlumberger NV, up $4.72 to $50.41.

    The world’s largest oilfield services company beat analysts’ third-quarter financial forecasts.

    American Express Co., down $2.38 to $140.04.

    The credit card giant said it is setting aside hundreds of millions of dollars to cover potential losses as the economy continues to deteriorate.

    Robert Half International Inc., down $6.83 to $73.01.

    The staffing firm’s third-quarter earnings and revenue fell short of analysts’ forecasts.

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  • Advanced recycling: Plastic crisis solution or distraction?

    Advanced recycling: Plastic crisis solution or distraction?

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    PROVIDENCE, R.I. — The plastics industry says there is a way to help solve the crisis of plastic waste plaguing the planet’s oceans, beaches and lands— recycle it, chemically.

    Chemical recycling typically uses heat or chemical solvents to break down plastics into liquid and gas to produce an oil-like mixture or basic chemicals. Industry leaders say that mixture can be made back into plastic pellets to make new products.

    “What we are trying to do is really create a circular economy for plastics because we think it is the most viable option for keeping plastic out of the environment,” said Joshua Baca, vice president of the plastics division at the American Chemistry Council, the industry trade association for American chemical companies.

    ExxonMobil, New Hope Energy, Nexus Circular, Eastman, Encina and other companies are planning to build large plastics recycling plants. Seven smaller facilities across the United States already recycle plastic into new plastic, according to the ACC. A handful of others convert hard-to-recycle used plastics into alternative transportation fuels for aviation, marine and auto uses.

    But environmental groups say advanced recycling is a distraction from real solutions like producing and using less plastic. They suspect the idea of recyclable plastics will enable the steep ramp up in plastic production to continue. And while the amount produced globally grows, recycling rates for plastic waste are abysmally low, especially in the United States.

    Plastic packaging, multi-layered films, bags, polystyrene foam and other hard-to-recycle plastic products are piling up in landfills and in the environment, or going to incinerators.

    Judith Enck, the founder and president of Beyond Plastics, says plastics recycling doesn’t work and never will. Chemical additives and colorants used to give plastic different properties mean that there are thousands of types, she said. That’s why they can’t be mixed together and recycled in the conventional, mechanical way. Nor is there much of a market for recycled plastic, because virgin plastic is cheap, she said.

    So what is more likely to happen than actual recycling, said Enck, a former regional administrator at the U.S. Environmental Protection Agency, is the industry will shift to burning plastics as waste or as fuel.

    Lee Bell, a policy advisor for the International Pollutants Elimination Network, thinks chemical recycling is a public relations exercise by the petrochemical industry. The purpose is to dissuade regulators from capping plastics production. Making plastic could become even more important to the fossil fuel industry as climate change puts pressure on their transportation fuels, Bell said.

    The industry has made roughly 11 billion metric tons of plastic since 1950, with half of that produced since 2006, according to industrial ecologist Roland Geyer. Global plastic production is expected to more than quadruple by 2050, according to the United Nations Environment Programme and GRID-Arendal in Norway.

    The international Organisation for Economic Co-operation and Development says the share of plastic waste that is successfully recycled is projected to rise to 17% in 2060 from 9% in 2019 if no additional policies are enacted to restrain plastic demand and enhance recycling, but that wouldn’t begin to keep up with the projected growth in plastic waste. With more ambitious policies, the amount of plastic waste that is recycled could rise to 40% to 60%, according to OECD.

    Two groups working to reduce plastic pollution, the Last Beach Clean Up and Beyond Plastics, estimated that the U.S. rate for recycling plastic waste in 2021 was even lower — 5% to 6%, after China stopped accepting other countries’ waste in 2018.

    The U.S. national recycling strategy says no option, including chemical recycling, should be ruled out. The way to think of these new plants, the industry says, is as manufacturing plants. They should be legally defined that way, and not as waste management. About 20 states have adopted laws in the past five years consistent with that wish. Opponents say it’s a way to skirt the more stringent environmental regulations that apply to waste management facilities.

    EXISTING PLANTS

    The U.S. facilities currently recycling plastic into new plastic are small — the largest is a 60-ton-per-day plant in Akron, Ohio, Alterra Energy, according to the ACC.

    Alterra Energy says it takes in the hard-to-recycle plastics, like flexible pouches, multi-layered films and rigid plastics from automobiles — everything except plastic water bottles since those are recycled mechanically, or plastics marked with a “3” since they contain polyvinyl chloride, or PVC.

    “Our mission is to solve plastic pollution,” said Jeremy DeBenedictis, company president. “That is not just a tag line. We all truly want to solve plastic pollution.”

    The Ohio facility typically takes in 40 tons to 50 tons per day, heating and liquifying the plastic to turn it back into an oil or hydrocarbon liquid, about 10,000 gallons to 12,000 gallons daily. About 75% of what comes into the facility can be liquified like that. Another 15% is turned into a synthetic natural gas to heat the process, while the remainder — paper, metals, dyes, inks and colorants — exit the reactor as a byproduct, or carbon char, DeBenedictis said. The char is disposed of as nonhazardous waste, though in the future some hope to sell it to the asphalt industry.

    The process doesn’t involve oxygen so there’s no combustion or incineration of plastics, DeBenedictis said, and their product is trucked as a synthetic oil to petrochemical companies, essentially the “building blocks on a molecular level for new plastic production.”

    The materials they take in, that haven’t been able to be recycled until now, should not be sent to landfills, dumped in the ocean or incinerated, DeBenedictis said.

    “That next level has to be a new technology, what you call chemical recycling or advanced recycling. That’s the next frontier,” he said.

    “Let’s not kid ourselves here. This is the right time to do it,” added company CEO Fred Schmuck. “There is absolutely no way we can meet our climate goals without addressing plastic waste.”

    DeBenedictis said he’s licensing the technology to try to grow the industry because that’s the “best way to make the quickest impact to the world.” A Finnish oil and gas company, Neste, is currently working to commercialize Alterra’s technology in Europe.

    The main chemical recycling technologies use pyrolysis, gasification or depolymerization. Neil Tangri, the science and policy director at the Global Alliance for Incinerator Alternatives, is skeptical. He says he has been hearing that pyrolysis is going to change everything since the 1990s, but it hasn’t happened. Instead, plastic production keeps climbing.

    GAIA views chemical recycling as a false solution that will facilitate greater production of virgin plastic — a high-energy process with high-carbon emissions that releases hazardous air pollutants, Tangri said. Instead, GAIA wants plastic production to be dramatically scaled back and only recyclable plastics to be produced.

    “Nobody needs more plastic,” Tangri said. “We keep trying to solve these production problems with recycling when really we need to change how much we make and what we make. That’s where the solution lies.”

    EQUITY ISSUES IN CITING PLANTS

    In Rhode Island, state lawmakers considered a bill this year to exempt such facilities from solid waste licensing requirements. It was vigorously opposed by environmental activists and residents near the port of Providence who feared it would lead to a new plant in their neighborhood. State environmental officials sided with them.

    Monica Huertas, executive director of The People’s Port Authority, helped lead the opposition. The neighborhood is already overburdened by industry, she said, so much so that she sometimes has asthma attacks after walking around.

    Dwayne Keys said it’s unfair that he and his neighbors always have to be on guard for proposals like these, unlike residents in some of the state’s wealthy, white neighborhoods. The port area has enough environmental hazards that residents don’t benefit from economically, he added. Keys calls it environmental racism.

    “The assessment is, we’re the path of least resistance,” he said. “Not that there’s no resistance, but the least. We’re a coalition of individuals volunteering our time. We don’t have wealth or access to resources or the legal means, as opposed to our white counterparts in higher income, higher net worth communities.”

    The chemistry council’s Baca said the facilities operate at the highest standards, the industry believes everyone deserves clear air and water, and he would invite any detractors to one of the facilities so they can see that firsthand.

    U.S. plastics producers have said they will recycle or recover all plastic packaging used in the United States by 2040, and have already announced more than $7 billion in investments in both mechanical and chemical recycling.

    “I think we are on the cusp of a sustainability revolution where circularity will be the centerpiece of that,” Baca said. “And innovative technologies like advanced recycling will be what makes this possible.”

    Kate O’Neill wrote the book on waste, called “Waste.” A professor in the Department of Environmental Science, Policy and Management at the University of California, Berkeley, she has thought a lot about whether chemical recycling should be part of the solution to the plastic crisis. She said she has concluded yes, even though she knows saying so would “piss off the environmentalists.”

    “With some of these big problems,” she said, “we can’t rule anything out.”

    ———

    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Social media stocks slip amid Musk, Snap news

    Social media stocks slip amid Musk, Snap news

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    Shares of social media companies are tumbling before the market open on Friday after a slew of news in the sector that concerned investors, including a report that Elon Musk may cut almost 75% of Twitter‘s workforce and Snap’s muted fourth-quarter outlook.

    Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75% of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to a Thursday report by The Washington Post.

    Wedbush’s Dan Ives said in a client note that Twitter Inc. is due for some job cuts, but that the reported figure may not be the best approach.

    “Musk cannot cut his way to growth with Twitter and a number in the 75% zip code would be way too aggressive in our opinion out of the gates,” he wrote.

    A Delaware judge has given Musk and Twitter until Oct. 28 to work out details of the proposed $44 billion deal. Otherwise, there will be a trial in November.

    Shares of Twitter dropped more than 4% in premarket trading.

    Elsewhere in the sector, Snap Inc.’ stock slid more than 28% after the company behind Snapchat gave a lackluster forecast for the fourth quarter and its third-quarter revenue missed Wall Street’s view.

    Snap reported third-quarter revenue of $1.13 billion, below the $1.15 billion that analysts polled by Zacks Investment Research expected.

    While the Santa Monica, California-based company said in a letter to investors that it wasn’t giving a formal fourth-quarter outlook, it did say that it’s highly likely that year-over-year revenue growth will slow during the period. Snap said its internal forecasts are for year-over-year revenue growth to be about flat.

    A JPMorgan analyst note said that Snap is experiencing weaker demand due to macro pressures, platform policy changes and competition.

    “We appreciate management’s efforts to control what they can—cutting costs & doubling down on more resilient performance-based ads—but trends remain choppy, and the macro backdrop is likely even tougher into 2023,” the note said.

    Adding to the mix are concerns about the way social media platforms are being used as the mid-term elections near. While platforms like Twitter, TikTok, Facebook and YouTube say they’ve expanded their work to detect and stop harmful claims that could suppress the vote or even lead to violent confrontations, a review of some of the sites shows they’re still playing catchup with 2020, when then-President Donald Trump’s lies about the election he lost to Joe Biden helped fuel an insurrection at the U.S. Capitol.

    Shares of Meta Platforms Inc., parent company of Facebook, declined 4.4% before the opening bell.

    The flurry of news weighed on others in the sector as well, including Google parent Alphabet Inc., off 2%, and Pinterest Inc., down 8%.

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  • Thai regulator approves $7.3 billion telecoms carrier merger

    Thai regulator approves $7.3 billion telecoms carrier merger

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    BANGKOK — Thailand’s telecoms regulator has agreed to allow a merger between the country’s two main phone carriers in a decision that raises worries over whether reduced competition will harm consumer interests.

    The $7.3 billion deal will merge True Corp. and smaller DTAC, a subsidiary of Norway’s Telenor Group. The new entity, to be called NewCo, will have about 51 million subscribers. The next largest telecoms carrier, AIS, or Advanced Info Service, has 44 million subscribers.

    True is owned by Charoen Pokphand (CP) Holding, one of the country’s biggest family-controlled conglomerates. It has 32 million subscribers to DTAC’s 19 million.

    Shareholders of True and DTAC, or Total Access Communication Plc., approved the merger plan in April.

    The regulatory go-ahead by the National Broadcasting and Telecommunications Commission came late Thursday in a 3-2 vote in favor, with the chair casting a deciding vote after more than 10 hours of discussions.

    The commission imposed conditions that included price controls, keeping current service agreements in place and requiring the expansion of 5G coverage to at least 90% of the population within five years. It said it could cancel or add further conditions if it observes monopolistic behavior due to the merger.

    “The merger will create a long and lasting impact and make it impossible to turn back the clock,” Pirongrong Ramasoota, one of the two commissioners who voted against letting the merger go ahead, said in a Facebook post. She said the deal could result in unfair competition and prevent other companies from trying to enter the market.

    “The development of our country depends on the competitiveness of the mobile service industry, which also is a key to boosting the economy,” she said.

    The approval reflects the sway of the huge family-run conglomerates that own big chunks of Thailand’s economy, critics said.

    “Despite massive protest, comments, reports, analysis and plain common sense, it is no surprise that the NBTC ended up allowing the merger,” Yozzo, a telecoms, media and technology consulting firm, said in a report.

    “Big conglomerates in Thailand have long enjoyed market power in a regime that many perceive to be friendly towards the big family companies,” it said, adding that consumers and businesses will pay the price of having two companies be the virtual gatekeepers of going digital.

    True and DTAC have said they are merging to better invest in next-generation telecommunications to advance Thailand’s adoption of digital technology.

    The companies have said they plan to list the newly merged company on Thailand’s stock exchange as soon as November.

    ———

    Associated Press journalist Tassanee Vejpongsa contributed.

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  • American Airlines posts $483 million profit for late summer

    American Airlines posts $483 million profit for late summer

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    DALLAS — The three biggest U.S. airlines enjoyed a boffo summer, reaping a combined profit of more than $2 billion as Americans jammed on to planes despite fares that were sharply higher than a year ago.

    What pandemic?

    American Airlines said Thursday that it earned $483 million on record-breaking revenue that more than offset higher fuel costs in the third quarter. American predicted that profit will continue to exceed Wall Street expectations during the holiday-packed remainder of 2022.

    The results from American, however, weren’t quite as grand as figures from its more prosperous rivals. United Airlines reported a $942 million profit on Tuesday, and Delta Air Lines posted third-quarter earnings of $695 million last week.

    Clearly, many people are eager to travel after most were grounded during the early part of the pandemic. Executives at all three big U.S. airlines said they see no indication that consumer concerns about inflation and the economy are hurting ticket sales.

    “American’s third-quarter results, including our record revenue performance, are significant considering the macroeconomic uncertainty facing so many people,” CEO Robert Isom said on a call with analysts and reporters. “Demand remains strong.”

    American, which is based in Fort Worth, Texas, predicted that fourth-quarter profit will be between 50 cents and 70 cents per share, which would beat Wall Street’s forecast of 19 cents per share.

    U.S. air travel has roared back from pandemic lows in early 2020. Last Sunday, the Transportation Security Administration screened nearly 2.5 million travelers on a single day, the busiest day at the nation’s airports since February 2020.

    Travel is booming despite a 43% leap in airfares in the past year, according to government figures.

    One reason fares are high is that the number of flights has not returned to pre-pandemic levels, leaving consumers vying for fewer seats. American, for example, did nearly 10% less flying in the third quarter than in the same period of 2019.

    American said it plans to run at 95% to 100% of 2019 levels next year. That is in line with Delta, which expects to restore its full schedule by next summer. United recently announced it will expand European flying next summer.

    Isom said American could add more flights next year but will take a cautious approach. American, Delta and others canceled flights earlier this year when they didn’t have enough staff, particularly pilots.

    “We are going to make sure that we don’t outpace what we have, either in terms of aircraft deliveries if that’s the constraint, or if it’s pilots at a regional level or our ability to train pilots” at American, he said.

    For the third quarter, American said its adjusted profit, which excludes certain items, was 69 cents per share, compared with a forecast of 54 cents per share by analysts surveyed by FactSet.

    Revenue rose to $13.46 billion, slightly higher than the $13.36 billion predicted by analysts. American, which has a major hub operation in Miami and operates many flights to the Caribbean, said it lost about $40 million in revenue because of hurricanes Fiona and Ian in September.

    Also Thursday, the parent of Alaska Airlines reported a $40 million third-quarter profit on record revenue of $2.8 billion. The Seattle-based airline said, however, that non-fuel costs in the fourth quarter will be higher than expected because of three new contracts with union labor groups including pilots.

    Shares of American Airlines Group Inc. closed down 4% and Alaska Air Group Inc. dropped 5%, while shares of Delta, United and Southwest dipped by smaller percentages.

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  • Global stocks lower amid British political turmoil

    Global stocks lower amid British political turmoil

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    BANGKOK — Global stock markets declined Thursday as the British prime minister faced demands to quit and Japan reported its 14th straight monthly trade deficit.

    London and Frankfurt opened lower and Shanghai, Tokyo and Hong Kong declined. Oil rose more than $1 per barrel.

    British Prime Minister Liz Truss faced demands to resign following chaotic scenes in Parliament during a vote on a fracking ban. Truss has been defiant despite financial market turmoil caused by multiple policy U-turns.

    Truss “precipitated this political crisis by triggering the market crisis,” said Michael Every of Rabobank in a report. Britain is “deep in an emerging-market rut.”

    In early trading, the FTSE 100 in London was off 0.2% at 6,914.12 and the DAX in Frankfurt fell 0.7% to 12,655.08. The CAC 40 in Paris was little-changed at 6,041.18.

    On Wall Street, the future for the benchmark S&P 500 index was off 0.3%. That for the Dow Jones Industrial Average was up less than 0.1%.

    On Wednesday, the S&P fell 0.7%, breaking two days of gains. The Dow slipped 0.3% and the Nasdaq composite sank 0.9%.

    In Asia, the Nikkei 225 in Tokyo tumbled 0.9% to 27,006.96 after September imports ballooned 46% over a year earlier due to a surging oil prices and a weak yen. The Japanese currency is trading at a 32-year low against the dollar.

    The yen weakened to 149.82 to the dollar from Wednesday’s 149.81 yen.

    The dollar has gained against other currencies following repeated interest rate hikes by the Federal Reserve, which increases the return on assets valued in dollars. Investors also see the U.S. currency as a stable haven amid global uncertainty.

    “Rising U.S. yields and the strong U.S. dollar are the sledgehammers pounding global equities lower,” said Stephen Innes of SPI Asset Management in a report.

    The Shanghai Composite Index lost 0.3% to 3,035.05 and the Hang Seng in Hong Kong fell 1.4% to 16,280.22.

    The Kospi in Seoul retreated 0.9% to 2,218.09 and Sydney’s S&P-ASX 200 sank 1% to 6,730.70.

    On Wednesday, Wall Street pulled back as investors reviewed earnings and Treasury yields climbed to multiyear highs.

    Netflix soared 13% and United Airlines rose 5% after releasing quarterly results. Abbott Laboratories, M&T Bank and others sank.

    The yield on the 10-year Treasury, which influences mortgage rates, climbed to 4.13%, its highest level since June 2008. It was at 4.02% late Tuesday.

    The yield on the two-year Treasury, which responds to expectations of future Fed action, rose to 4.54% from 4.43%.

    The Fed and central banks in Europe and Asia have been raising interest rates to cool inflation that is at multi-decade highs. Investors worry they might tip the global economy into recession.

    Inflation in Britain hit a 40-year high of 10.1% over a year earlier in September.

    In energy markets, benchmark U.S. crude rose $1.56 to $86.08 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price basis for international oil trading, advanced $1.34 to $93.75 per barrel in London.

    The euro gained to 97.83 cents from Wednesday’s 97.68 cents.

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  • Co-CEO of SKorean chat app steps down over service outage

    Co-CEO of SKorean chat app steps down over service outage

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    SEOUL, South Korea — A top executive of South Korea’s largest mobile chat app, Kakao, stepped down on Wednesday over a widespread service outage that triggered an outpouring of complaints in a country that is heavily reliant on such technology.

    Namkoong Whon, who became Kakao’s co-CEO in March, said he will resign to focus on his role as the leader of the company’s emergency task force for solving the technical problems exposed by the outage, which was caused by a fire at a data center near Seoul on Saturday.

    The fire initially paralyzed most of Kakao’s services, causing huge disruption in a country where millions of people rely on the apps to chat with friends, wire money, and hail taxis. Critics say the severity of the outage and Kakao’s slow recovery efforts highlighted the company’s poor backup systems and its overreliance on outsourced servers.

    Kakao said most of its services were operating normally as of Wednesday morning. SK C&C, which hosts Kakao’s servers at its data center in Pangyo, reportedly resumed providing full levels of electricity to those servers earlier on Wednesday after restoring the damaged systems.

    “Because of the data center fire, I feel more miserable than ever and take to heart my grave responsibility. I will step down to demonstrate Kakao’s willingness for renovation and change,” Namkoong said in a news conference.

    Kakao’s sole CEO is now Hong Eun-taek. He said the company is investing 460 billion won ($322 million) to build its own data center in the city of Ansan, which it plans to complete within a year. The company also plans to establish another data center in nearby Siheung by 2024.

    “We have learned our lesson from the fire, and our own data centers will be built as facilities that will be safe from fires and natural disasters like earthquakes, tidal waves and typhoons,” Hong said during the news conference.

    According to market analysis firm WiseApp, Kakao’s free chat app had around 45 million active users as of April, a huge presence in a country with a population of around 51 million. The company has used the popularity of the app to branch out to banking, online shopping and Uber-like taxi services in recent years. Its app also has been part of the country’s COVID-19 response, including reservations for vaccines and use of QR codes for infection tracing.

    Kakao’s chat users had dropped to around 39 million during the outage in the weekend as people began using other alternatives such as Facebook’s Messenger, Telegram and Naver’s Line, WiseApp said.

    South Korean President Yoon Suk Yeol said Kakao’s service outage also exposed the problems of its dominant market presence and added that the country’s antitrust watchdog was examining competition issues.

    “If a market becomes distorted by a monopoly or a severe oligopoly, especially to the extent where the (services) begin to function like a national infrastructure, the government should of course respond with necessary measures to protect the interests of people,” Yoon said Monday.

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  • Sponsorships questioned by leading Australian athletes

    Sponsorships questioned by leading Australian athletes

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    BRISBANE, Australia — Athletes in two of Australia’s most popular sports — cricket and netball — are criticizing millions of dollars of sponsorship money from mining and energy companies.

    Much of it involves environmental concerns. In another case of athletes speaking out, an Indigenous netball player has questioned sponsorship by a mining company because of racist remarks in the 1980s by its founder about Aboriginal people in Australia.

    Athletes have openly called out injustices and sportswashing by some governments and regimes.

    This week national cricket captain Pat Cummins had no hesitation in calling for more climate-conscious corporate partners for his sport. A recent pay agreement between the players’ union and Cricket Australia allows players to decline to endorse certain brands on “reasonable personal or reasonable professional grounds.”

    “Not just us players, but every organization has a responsibility to do what is right for the sport but also what they think is the right thing for the organization,” Cummins said. “I hope society when it moves forward, it’s a balance where you make decisions about who you’re going to welcome into the cricket family.”

    Cummins had previously raised concerns with CA’s chief executive Nick Hockley over the fact that Cricket Australia sponsor Alinta Energy’s parent company, Pioneer Sail Holdings, has been listed as one of Australia’s highest carbon emitters.

    Cricket Australia acknowledged that it had agreed to end a deal worth almost 40 million Australian dollars ($25 million), but said it was because of “a change in its brand strategy” by the energy company.

    “CA confirms that at no point did any conversation between men’s team captain Pat Cummins and CA CEO Nick Hockley influence Alinta’s decision to finish its sponsorship with Cricket Australia in June 2023,” Cricket Australia said in a statement.

    The issue was five years in the making. A clause was added to the current memorandum of understanding between the players and Cricket Australia, signed in 2017, after objections first raised by Usman Khawaja and Fawad Ahmed almost a decade ago about wearing uniforms emblazoned with alcohol logos on the basis of their Muslim faith. At the center of the controversy was a beer company logo on a uniform when Fawad made his debut for Australia.

    “I think it’s always been a balance,” Cummins told Australian media when he confirmed he wouldn’t be appearing in future TV advertising for the energy company. “We’ve seen certain players make decisions based on religion, or maybe certain foods they eat, they won’t partner with specific partners, but we really thank all our partners for everything they do.”

    Netball is the most popular team sport for women and girls across Australia, played on a similar court to basketball but with seven players on each team and more restrictive rules.

    The sport’s national governing body is working to reach a compromise with Indigenous player Donnell Wallam after re-affirming its sponsorship deal with mining company Hancock Prospecting.

    Wallam, a Noongar woman from Western Australia state who now plays for the Queensland-based Firebirds in the top-flight national league, raised concerns about Netball Australia’s four-year, 15 million Australian dollar ($9.5 million) sponsorship with billionaire Gina Rinehart’s company.

    Wallam took issue with Hancock Prospecting’s record on Indigenous matters, which date to Rinehart’s late father Lang Hancock. He proposed in a 1984 television interview that some Indigenous people be given contaminated water so they could be sterilized and “breed themselves out.”

    Wallam, who later this month is expected to become the first Indigenous player to represent the Australian Diamonds in more than 20 years, was reluctant to wear the new sponsor’s logo. She was considering seeking an exemption, as other athletes have done when a sponsor doesn’t align with their beliefs or religion, however the issue raised national attention when her teammates opted to stand with her.

    Both Netball Australia and national team captain Liz Watson have voiced their support for Hancock Prospecting, with the deal securing the future of the sports organization which sustained heavy losses over two years during the COVID-19 pandemic.

    “As players we do know that Hancock is such a great investment for our program,” Watson told Australian Associated Press.

    But Watson said they also wanted to show support for their teammate.

    “We’re supporting her cultural sensitivities around the program, around the partnership, and we want her to be herself and feel comfortable and strong,” Watson said.

    Newly-elected Independent senator and former Australian rugby captain David Pocock, who has partnered with Cummins on climate change initiatives, backed the cricket captain’s stance.

    “Sport is already feeling the impact of climate change with extreme heat, bushfire smoke and flooding leading to cancellations and delays of matches as well as player and spectator welfare issues,” Pocock said.

    And the movement is growing. A group of high-profile fans from the Fremantle Dockers Australian Football League team as well as former Fremantle star Dale Kickett have called on the club to dump oil and gas giant Woodside Energy as its major sponsor.

    In an open letter to the Dockers board and president Dale Alcock, the signatories said it was no longer appropriate for a fossil fuel company to sponsor the club as the world fought climate change.

    “We should not allow our club’s good name to be used by a corporation to enhance its reputation when its core activities are so clearly threatening our planet,” they said.

    ———

    More AP sports: https://apnews.com/hub/sports and https://twitter.com/AP—Sports

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  • Worker admits dumping raw waste into Jackson water system

    Worker admits dumping raw waste into Jackson water system

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    JACKSON, Miss — An employee of a Mississippi wastewater hauling company pleaded guilty in federal court Tuesday for his part in illegally discharging industrial waste into the capital city’s sewer system.

    William Roberts, an employee of Partridge-Sibley Industrial Services, admitted to supervising the improper disposal of industrial waste at a commercial entity in Jackson. As a result of Roberts’s negligence, the waste was trucked and hauled to a facility that was not a legal discharge point designated to receive the waste, federal prosecutors said.

    “The defendant’s negligent conduct contributed to the discharge of millions of gallons of untreated industrial waste into the Jackson water system,” said Chuck Carfagno, a special agent for the Environmental Protection Agency’s criminal investigations division.

    Jackson’s water and sewer system has been beset by troubles dating back years. The water system was recently engulfed in a crisis that forced people in the city of 150,000 to go days without running water in late August and early September.

    In addition to the EPA and local law enforcement officials, the case was also investigated by the Federal Bureau of Investigation.

    An attorney for Roberts did not immediately respond to a request for comment. He will be sentenced on December 14, 2022.

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  • Netflix rebounds from recent subscriber losses with 3Q gain

    Netflix rebounds from recent subscriber losses with 3Q gain

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    SAN FRANCISCO — Netflix reversed its recent subscriber losses with a summertime gain that management is hoping to build upon with the upcoming launch of a cheaper version of the video streaming service that will include ads for the first time.

    The Los Gatos, California, company disclosed Tuesday that it picked up 2.4 million subscribers during the July-September period, a comeback from a loss of 1.2 million customers during the first half of the year amid stiffer competition and soaring inflation that’s squeezing household budgets.

    Netflix now boasts 223 million subscribers, enabling the company to at least temporarily reclaim the mantle as the world’s largest video streaming service. Walt Disney Co. eclipsed Netflix in August when it reported its service had 221 million subscribers, a number that will be updated Nov. 8 when Disney is scheduled to report its summertime results.

    “After a challenging first half, we believe we’re on a path to reaccelerate growth,” Netflix predicted in a shareholder letter accompanying the third-quarter results.

    The uptick in subscribers also helped Netflix earn $1.4 billion, or $3.10 per share, a 4% dip from the same time last year. Revenue climbed 6% from last year to $7.93 billion. The subscriber gains, earnings per share and revenue all topped analyst projections compiled by FactSet.

    Netflix’s shares surged nearly 13% after the latest numbers came out. Even so, the stock has still lost more than half its value so far this year, reflecting worries that Netflix’s best days have passed.

    Now that Netflix is growing again, it will be aiming to accelerate the momentum with its first ad-supported plan that debuts in the U.S. and 11 other markets in early November. The new option will cost $7 per month in the U.S., less than half the price for Netflix’s most popular $15.50-per-month plan without commercial interruptions.

    “Netflix still has a lot of room to grow and capture the share in a price-sensitive market,” Investing.com analyst Haris Anwar said in a sign of renewed optimism about the company’s prospects.

    In a possible sign Netflix isn’t expecting the ad-backed plan to be an immediate hit, management is forecasting it will add 4.5 million subscribers during the October-December period. Although that would be Netflix’s biggest quarterly gain this year, it would still be down from the 8.3 million subscribers added during the same holiday-season period last year.

    Netflix is apparently hoping to de-emphasize Wall Street’s long-running focus on its subscriber growth by stopping to provide forecasts about how many customers it expects to add from one quarter to the next. Management disclosed Tuesday that its subscriber projection for the current quarter will be its last, but that it will continue to predict earnings and revenue in hopes investors will pay more attention to those figures.

    Although investors have generally been enthusiastic about Netflix’s expansion into the advertising market, one major concern is whether the additional revenue generated from selling commercials will be enough to offset the losses from current subscribers who switch to the cheaper option from higher prices they are currently paying.

    Netflix is projecting revenue of nearly $7.8 billion for the quarter covering the holiday season that traditionally spurs more advertisers, slightly below what analysts had been anticipating, according to FactSet. If Netflix delivers on its revenue forecast, it will translate into a 4% increase from the same time last year. By comparison, Netflix’s posted a year-over-year revenue gain of 16% in its 2021 holiday-season quarter.

    But an analysis by the research firm Insider Intelligence foresees advertising contributing a significant chunk of Netflix’s revenue. Next year, Netflix should bring in more than $830 million from advertisers in the U.S. alone, followed by more than $1 billion in the U.S. in 2024, according to Insider Intelligence.

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