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Tag: Corporate news

  • Take note: Utah Jazz may have lost their hashtag to Apple

    Take note: Utah Jazz may have lost their hashtag to Apple

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    SALT LAKE CITY — Take note: The Utah Jazz evidently need a new hashtag.

    The team’s long-used hashtag — #TakeNote — was used by Apple CEO Tim Cook in a tweet on Tuesday, accompanied by an Apple logo emoji. It raises questions about how the phrase will be used in the team’s marketing plans going forward.

    “That was weird. I saw that when you all did,” Jazz owner Ryan Smith said Tuesday at a Salt Lake City news conference unrelated to hashtag matters. “Got to look into it.”

    Cook and Smith are friends; Cook has even sat courtside with Smith for at least one Jazz game.

    Apple Inc. unveiled the latest innovations with its iPad and Apple TV products on Tuesday, and Cook’s early morning tweet with the hashtag and a short video that also made use of the “Take Note” phrase was basically the kickoff to his company’s announcements.

    The Jazz have “#TakeNote” on multiple displays in their arena, plus they have used it on merchandise. The team started using the hashtag in 2016, got away from it briefly and began using it again in 2019.

    And just last week, the Jazz announced a partnership with Utah-based company Chatbooks — including a promotion where Chatbooks would “display a collage of fans’ social media photos” on the video boards hanging over center court.

    The plan was to tell fans to post photos on social media with the #TakeNote hashtag to have them considered for those collages.

    ———

    AP NBA: https://apnews.com/hub/nba and https://twitter.com/AP—Sports

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  • US: French cement firm admits Islamic State group payments

    US: French cement firm admits Islamic State group payments

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    NEW YORK — French cement company Lafarge pleaded guilty Tuesday to paying millions of dollars to the Islamic State group in exchange for permission to keep open a plant in Syria, a case the Justice Department described as the first of its kind. The company also agreed to penalties totaling roughly $778 million.

    Prosecutors accused Lafarge of turning a blind eye to the conduct of the militant group, making payments to it in 2013 and 2014 as it occupied a broad swath of Syria and as some of its members were involved in torturing or beheading kidnapped Westerners. The company’s actions occurred before it merged with Swiss company Holcim to form the world’s largest cement maker.

    The payments were designed to ensure the continued operations of a roughly $680 million plant that prosecutors say Lafarge had constructed in 2011 at the start of the Syrian civil war. The money was to be used to protect employees and to keep a competitive edge.

    “The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations — ISIS and al-Nusrah Front in Syria — at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” Assistant Attorney General Matthew Olsen, the Justice Department’s top national security official, said in a statement.

    “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations,” he added.

    The charges were announced by federal prosecutors in New York City and by senior Justice Department leaders from Washington. The Justice Department described it as the first instance in which a company has pleaded guilty to conspiring to provide material support to a foreign terrorist organization.

    The allegations involve conduct that was earlier investigated by authorities in France. Lafarge had previously acknowledged funneling money to Syrian armed organizations in 2013 and 2014 to guarantee safe passage for employees and supply its plant.

    In 2014, the company was handed preliminary charges including financing a terrorist enterprise and complicity in crimes against humanity.

    A French court later quashed the charges involving crimes against humanity but said other charges would be considered over payments made to armed forces in Syria. That ruling was later overturned by France’s supreme court, which ordered a retrial in September 2021.

    The wrongdoing precedes Lafarge’s merger with Holcim in 2015.

    In a statement, Holcim said that when it learned of the allegations from the news media in 2016, it voluntarily conducted an investigation and disclosed the findings publicly. It fired the former Lafarge executives who were involved in the payments.

    “None of the conduct involved Holcim, which has never operated in Syria, or any Lafarge operations or employees in the United States, and it is in stark contrast with everything that Holcim stands for,” the company said. “The DOJ noted that former Lafarge SA and LCS executives involved in the conduct concealed it from Holcim before and after Holcim acquired Lafarge SA, as well as from external auditors.”

    The Islamic State group is abbreviated as IS and has been referred to as the Islamic State of Iraq and Syria, or ISIS.

    ———

    Tucker reported from Washington.

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  • J&J sales grow, but strong dollar tugs at expectations

    J&J sales grow, but strong dollar tugs at expectations

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    Johnson & Johnson topped third-quarter expectations thanks to growth in pharmaceutical sales, but the health care giant continued to tread cautiously with its outlook due to the strong dollar.

    J&J on Tuesday stuck to the midpoint of its 2022 forecast after lowering expectations the previous two quarters due to the impact of currency exchanges. The company now expects adjusted earnings to range between $10.02 and $10.07 per share.

    That’s a narrower forecast than the $10-to-$10.10 range the company predicted in July.

    For the full year, analysts expect, on average, earnings of $10.07 per share, according to FactSet.

    J&J brings in nearly half of its sales from outside the United States. A strong U.S. dollar, which is now worth more than a euro for the first time in 20 years, can affect sales for companies that do a lot of international business.

    They have to convert those sales into dollars when they report earnings. The stronger dollar decreases the value of those sales. It also gives foreign products a price edge in the United States.

    In the third quarter, J&J’s profit climbed 22% to $4.46 billion. Revenue rose 2% to $23.79 billion, and adjusted earnings totaled $2.55 per share.

    Analysts were expecting earnings of $2.48 per share on $23.36 billion in revenue, according to FactSet.

    Revenue from the company’s biggest segment, pharmaceutical, climbed 2.6% — or 9% without the impact of foreign exchange — to $13.2 billion. That business was charged by sales of the blood cancer treatment Darzalex, which soared nearly 30% to $2.06 billion.

    The company recorded no U.S. sales in the quarter from its one-shot COVID-19 vaccine, which brought in $489 million in revenue from international markets.

    J&J’s vaccine was one of three initially authorized by U.S. regulators more than a year ago to protect against COVID-19. But the government has since strictly limited who can receive the shot due to a small risk of rare but serious blood clots.

    The company also has had to trash millions of doses of the shots due to manufacturing trouble at a Baltimore factory operated by a contractor.

    Shares of New Brunswick, New Jersey company rose 2% before the opening bell.

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  • US businesses propose hiding trade data used to trace abuse

    US businesses propose hiding trade data used to trace abuse

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    A group of major U.S. businesses wants the government to hide key import data — a move trade experts say would make it more difficult for Americans to link the products they buy to labor abuse overseas.

    The Commercial Customs Operations Advisory Committee is made up of executives from 20 companies, including Walmart, General Motors and Intel. The committee is authorized by U.S. Customs and Border Protection to advise on ways to streamline trade regulations.

    Last week — ahead of closed-door meetings starting Monday in Washington with senior officials from CBP and other federal agencies — the executives quietly unveiled proposals they said would modernize import and export rules to keep pace with trade volumes that have nearly quintupled in the past three decades. The Associated Press obtained a copy of the proposal from a committee member.

    Among the proposed changes: making data collected from vessel manifests confidential.

    The information is vitally important for researchers and reporters seeking to hold corporations accountable for the mistreatment of workers in their foreign supply chains.

    Here’s how it works: Journalists document a situation where laborers are being forced to work and cannot leave. They then use the shipping manifests to show where the products end up, and sometimes even their brand names and whether they’re on a shelf at a local supermarket or a rack of clothes at a local mall.

    The proposal, if adopted, would shroud in secrecy customs data on ocean-going freight responsible for about half of the $2.7 trillion in goods entering the U.S. every year. Rail, truck and air cargo is already shielded from public disclosure under U.S. trade law.

    “This is outrageous,” said Martina Vandenberg, a human rights lawyer who has filed petitions with CBP seeking to block shipments of goods suspected of being made by forced labor.

    “Every year we continue to import and sell millions of dollars in goods tainted by forced labor,” said Vandenberg, president of the Washington-based Human Trafficking Legal Center. “Corporate America should be ashamed that their answer to this abuse is to end transparency. It’s time they get on the right side of history.”

    CBP said it would not comment on ideas that have not been formally submitted by its advisory committee but said that the group’s proposals are developed with input gathered in public meetings.

    But one of CBP’s stated goals in creating what it has dubbed a “21st Century Customs Framework” is to boost visibility into global supply chains, support ethical sourcing practices and level the playing field for domestic U.S. manufacturers.

    Reports by the AP and other media have documented how large quantities of clothing, electronics and seafood make their way onto U.S. shelves every year as a result of illegal forced labor that engages 28 million people globally, according to the International Labor Organization. Much of that investigative work — whether into clothing made by Uyghurs at internment camps in China’s Xinjiang region, cocoa harvested by children in the Ivory Coast or seafood caught by Philippine fishermen toiling in slave-like conditions — starts with shipping manifests.

    “Curtailing access to this information will make it harder for the public to monitor a shipping industry that already functions largely in the shadows,” said Peter Klein, a professor at University of British Columbia, where he runs the Hidden Costs of Global Supply Chains project, an international collaborative between researchers and journalists.

    “If anything, CBP should be prioritizing more transparency, opening up records of shipments by air, road and rail as well.”

    In its 34-page presentation, the business advisory panel said its goal in further restricting access to customs data is to protect confidential business information from “data breaches” that it says “have become more commonplace, severe and consequential.”

    The group also wants CBP for the first time to provide importers with advance notice whenever it suspects forced labor is being used. Activists say such a move puts whistleblowers overseas at risk of retaliation.

    GM declined to comment, referring all inquiries to the Customs Operations Advisory Committee. Neither Intel nor Walmart responded to AP requests for comment.

    In August alone, CBP targeted shipments valued at more than $266 million for inspection due to suspected use of forced labor, including goods subject to the recently passed Uyghur Forced Labor Prevention Act. Additionally, last month the U.S. Department of Labor added 32 products — among them acai berries from Brazil, gold from Zimbabwe and tea from India — to its list of goods possibly made with child or forced labor, making them targets for future enforcement actions.

    The proposal to make vessel data confidential comes as American companies are under increasing pressure from consumers to provide greater transparency regarding their sourcing practices, something reflected in the ambitious language found in many corporate social responsibility statements.

    But Vandenberg said the proposed restrictions are in line with less-touted litigation and lobby efforts by major companies to water down enforcement of the U.S. ban on forced labor.

    She cited a brief filed last week by the American Chamber of Commerce, the world’s largest business federation, in a case now before a federal appeals panel in Washington. At issue is whether tech companies can be held responsible for the death and injury of children in the Democratic Republic of Congo forced to mine cobalt that ends up in products sold in the U.S.

    The lawsuit was brought by families of dead and maimed children against tech giants Alphabet (the parent company of Google), Apple, Dell Technologies, Microsoft and Tesla under what’s known as the U.S. Trafficking Act, which allows victims to sue ventures that benefit financially from forced labor. The case was dismissed last year after a district judge found the companies lacked sufficient ties to the tragic working conditions in the DRC.

    The Chamber of Commerce, in asking the appeals panel to uphold that decision, said the serious global problem of forced labor is best addressed by private industry initiatives, Congress and the executive branch — not U.S. courts.

    Such suits “often last a decade or more, imposing substantial legal and reputational costs on U.S. companies that transact business overseas,” the Chamber of Commerce wrote in a friend-of-the-court filing.

    The mismatch in rules governing disclosure of trade data for different forms of transportation goes back to 1996, when lobbying by the airline industry reversed a law passed by Congress that same year that for the first time required air freight manifests be made public.

    In 2017, Scottsdale, Arizona-based ImportGenius — a platform used to search shipping data — was among companies that unsuccessfully sued the federal government seeking to obtain aircraft manifests.

    “Suppressing information about goods coming into our country is breathtakingly stupid,” said Michael Kanko, CEO of ImportGenius. “From discovering imports of human hair linked to forced labor, to understanding the flow of PPE during the pandemic, to tracking importers of tainted, deadly dog treats, public access to this data has empowered journalism and kept consumers safe. We need more transparency in trade, not less.”

    ———

    AP Writer Martha Mendoza contributed to this report.

    Follow Goodman on Twitter: @APJoshGoodman

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  • US businesses propose hiding trade data used to trace abuse

    US businesses propose hiding trade data used to trace abuse

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    A group of major U.S. businesses wants the government to hide key import data — a move trade experts say would make it more difficult for Americans to link the products they buy to labor abuse overseas.

    The Commercial Customs Operations Advisory Committee is made up of executives from 20 companies, including Walmart, General Motors and Intel. The committee is authorized by U.S. Customs and Border Protection to advise on ways to streamline trade regulations.

    Last week — ahead of closed-door meetings starting Monday in Washington with senior officials from CBP and other federal agencies — the executives quietly unveiled proposals they said would modernize import and export rules to keep pace with trade volumes that have nearly quintupled in the past three decades. The Associated Press obtained a copy of the proposal from a committee member.

    Among the proposed changes: making data collected from vessel manifests confidential.

    The information is vitally important for researchers and reporters seeking to hold corporations accountable for the mistreatment of workers in their foreign supply chains.

    Here’s how it works: Journalists document a situation where laborers are being forced to work and cannot leave. They then use the shipping manifests to show where the products end up, and sometimes even their brand names and whether they’re on a shelf at a local supermarket or a rack of clothes at a local mall.

    The proposal, if adopted, would shroud in secrecy customs data on ocean-going freight responsible for about half of the $2.7 trillion in goods entering the U.S. every year. Rail, truck and air cargo is already shielded from public disclosure under U.S. trade law.

    “This is outrageous,” said Martina Vandenberg, a human rights lawyer who has filed petitions with CBP seeking to block shipments of goods suspected of being made by forced labor.

    “Every year we continue to import and sell millions of dollars in goods tainted by forced labor,” said Vandenberg, president of the Washington-based Human Trafficking Legal Center. “Corporate America should be ashamed that their answer to this abuse is to end transparency. It’s time they get on the right side of history.”

    CBP said it would not comment on ideas that have not been formally submitted by its advisory committee but said that the group’s proposals are developed with input gathered in public meetings.

    But one of CBP’s stated goals in creating what it has dubbed a “21st Century Customs Framework” is to boost visibility into global supply chains, support ethical sourcing practices and level the playing field for domestic U.S. manufacturers.

    Reports by the AP and other media have documented how large quantities of clothing, electronics and seafood make their way onto U.S. shelves every year as a result of illegal forced labor that engages 28 million people globally, according to the International Labor Organization. Much of that investigative work — whether into clothing made by Uyghurs at internment camps in China’s Xinjiang region, cocoa harvested by children in the Ivory Coast or seafood caught by Philippine fishermen toiling in slave-like conditions — starts with shipping manifests.

    “Curtailing access to this information will make it harder for the public to monitor a shipping industry that already functions largely in the shadows,” said Peter Klein, a professor at University of British Columbia, where he runs the Hidden Costs of Global Supply Chains project, an international collaborative between researchers and journalists.

    “If anything, CBP should be prioritizing more transparency, opening up records of shipments by air, road and rail as well.”

    In its 34-page presentation, the business advisory panel said its goal in further restricting access to customs data is to protect confidential business information from “data breaches” that it says “have become more commonplace, severe and consequential.”

    The group also wants CBP for the first time to provide importers with advance notice whenever it suspects forced labor is being used. Activists say such a move puts whistleblowers overseas at risk of retaliation.

    GM declined to comment, referring all inquiries to the Customs Operations Advisory Committee. Neither Intel nor Walmart responded to AP requests for comment.

    In August alone, CBP targeted shipments valued at more than $266 million for inspection due to suspected use of forced labor, including goods subject to the recently passed Uyghur Forced Labor Prevention Act. Additionally, last month the U.S. Department of Labor added 32 products — among them acai berries from Brazil, gold from Zimbabwe and tea from India — to its list of goods possibly made with child or forced labor, making them targets for future enforcement actions.

    The proposal to make vessel data confidential comes as American companies are under increasing pressure from consumers to provide greater transparency regarding their sourcing practices, something reflected in the ambitious language found in many corporate social responsibility statements.

    But Vandenberg said the proposed restrictions are in line with less-touted litigation and lobby efforts by major companies to water down enforcement of the U.S. ban on forced labor.

    She cited a brief filed last week by the American Chamber of Commerce, the world’s largest business federation, in a case now before a federal appeals panel in Washington. At issue is whether tech companies can be held responsible for the death and injury of children in the Democratic Republic of Congo forced to mine cobalt that ends up in products sold in the U.S.

    The lawsuit was brought by families of dead and maimed children against tech giants Alphabet (the parent company of Google), Apple, Dell Technologies, Microsoft and Tesla under what’s known as the U.S. Trafficking Act, which allows victims to sue ventures that benefit financially from forced labor. The case was dismissed last year after a district judge found the companies lacked sufficient ties to the tragic working conditions in the DRC.

    The Chamber of Commerce, in asking the appeals panel to uphold that decision, said the serious global problem of forced labor is best addressed by private industry initiatives, Congress and the executive branch — not U.S. courts.

    Such suits “often last a decade or more, imposing substantial legal and reputational costs on U.S. companies that transact business overseas,” the Chamber of Commerce wrote in a friend-of-the-court filing.

    The mismatch in rules governing disclosure of trade data for different forms of transportation goes back to 1996, when lobbying by the airline industry reversed a law passed by Congress that same year that for the first time required air freight manifests be made public.

    In 2017, Scottsdale, Arizona-based ImportGenius — a platform used to search shipping data — was among companies that unsuccessfully sued the federal government seeking to obtain aircraft manifests.

    “Suppressing information about goods coming into our country is breathtakingly stupid,” said Michael Kanko, CEO of ImportGenius. “From discovering imports of human hair linked to forced labor, to understanding the flow of PPE during the pandemic, to tracking importers of tainted, deadly dog treats, public access to this data has empowered journalism and kept consumers safe. We need more transparency in trade, not less.”

    ———

    AP Writer Martha Mendoza contributed to this report.

    Follow Goodman on Twitter: @APJoshGoodman

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  • Today in History: October 15, Senate confirms Thomas

    Today in History: October 15, Senate confirms Thomas

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    Today in History

    Today is Saturday, Oct. 15, the 288th day of 2022. There are 77 days left in the year.

    Today’s Highlight in History:

    On Oct. 15, 1966, President Lyndon B. Johnson signed a bill creating the U.S. Department of Transportation.

    On this date:

    In 1815, Napoleon Bonaparte, the deposed Emperor of the French, arrived on the British-ruled South Atlantic island of St. Helena, where he spent the last 5 1/2 years of his life in exile.

    In 1945, the former premier of Vichy France, Pierre Laval, was executed for treason.

    In 1946, Nazi war criminal Hermann Goering (GEH’-reeng) fatally poisoned himself hours before he was to have been executed.

    In 1954, Hurricane Hazel made landfall on the Carolina coast as a Category 4 storm; Hazel was blamed for some 1,000 deaths in the Caribbean, 95 in the U.S. and 81 in Canada.

    In 1966, the revolutionary Black Panther Party was founded by Huey Newton and Bobby Seale in Oakland, California.

    In 1976, in the first debate of its kind between vice-presidential nominees, Democrat Walter F. Mondale and Republican Bob Dole faced off in Houston.

    In 1989, South African officials released eight prominent political prisoners, including Walter Sisulu (sih-SOO’-loo).

    In 1991, despite sexual harassment allegations by Anita Hill, the Senate narrowly confirmed the nomination of Clarence Thomas to the U.S. Supreme Court, 52-48.

    In 1997, British Royal Air Force pilot Andy Green twice drove a jet-powered car in the Nevada desert faster than the speed of sound, officially shattering the world’s land-speed record.

    In 2001, Bethlehem Steel Corp. filed for Chapter 11 bankruptcy.

    In 2003, eleven people were killed when a Staten Island ferry slammed into a maintenance pier. (The ferry’s pilot, who’d blacked out at the controls, later pleaded guilty to eleven counts of manslaughter.)

    In 2015, President Barack Obama abandoned his pledge to end America’s longest war, announcing plans to keep at least 5,500 U.S. troops in Afghanistan at the end of his term in 2017 and hand the conflict off to his successor.

    Ten years ago: Former pro wrestler Hulk Hogan sued the news and gossip website Gawker for posting a sex tape of him online. (Hogan won a $140 million verdict against Gawker, which ended up settling for $31 million in a legal fight that led to the media company’s bankruptcy.)

    Five years ago: Actress and activist Alyssa Milano tweeted that women who had been sexually harassed or assaulted should write “Me too” as a status; within hours, tens of thousands had taken up the #MeToo hashtag (using a phrase that had been introduced 10 years earlier by social activist Tarana Burke.) Former San Francisco 49ers quarterback Colin Kaepernick filed a grievance against the NFL, alleging that he was still unsigned because of collusion by owners resulting from his protests during the national anthem.

    One year ago: British Conservative lawmaker David Amess was stabbed to death as he met with constituents at a church hall; the assailant, an Islamic State supporter who said he targeted Amess because of his past support for airstrikes on Syria, was convicted and sentenced to life in prison. A suicide bombing targeting a Shiite mosque in southern Afghanistan killed at least 47 people and wounded scores of others; the Islamic State group claimed responsibility. The lawyers for accused Florida school shooter Nikolas Cruz said he would plead guilty to the 2018 massacre at a Parkland high school that killed 14 students and three staff members.

    Today’s Birthdays: Singer Barry McGuire is 87. Actor Linda Lavin is 85. Rock musician Don Stevenson (Moby Grape) is 80. Baseball Hall of Famer Jim Palmer is 77. Singer-musician Richard Carpenter is 76. Actor Victor Banerjee is 76. Former tennis player Roscoe Tanner is 71. Singer Tito Jackson is 69. Actor-comedian Larry Miller is 69. Actor Jere Burns is 68. Movie director Mira Nair is 65. Britain’s Duchess of York, Sarah Ferguson, is 63. Chef Emeril Lagasse (EM’-ur-ul leh-GAH’-see) is 63. Rock musician Mark Reznicek (REHZ’-nih-chehk) is 60. Singer Eric Benet (beh-NAY’) is 56. Actor Vanessa Marcil is 54. Singer-actor-TV host Paige Davis is 53. Country singer Kimberly Schlapman (Little Big Town) is 53. Actor Dominic West is 53. R&B singer Ginuwine (JIHN’-yoo-wyn) is 52. Christian singer-actor Jaci (JAK’-ee) Velasquez is 43. Actor Brandon Jay McLaren is 42. R&B singer Keyshia Cole is 41. Actor Vincent Martella is 30. Actor Bailee Madison is 23.

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  • Head of zero-emission truck venture found guilty of fraud

    Head of zero-emission truck venture found guilty of fraud

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    NEW YORK — The wealthy founder of Nikola Corp. was convicted Friday of charges he deceived investors with exaggerated claims about his company’s progress in producing zero-emission 18-wheel trucks fueled by electricity or hydrogen.

    A jury reached the verdict against Trevor Milton after deliberating for about five hours in federal court in Manhattan.

    At trial, the government had portrayed Milton as a con man while his lawyer called him an inspiring visionary who was being railroaded by overzealous prosecutors.

    Those prosecutors alleged that Nikola — founded by Milton in a Utah basement six years ago — falsely claimed to have built its own revolutionary truck that was actually a General Motors Corp. product with Nikola’s logo stamped onto it. There also was evidence that the company produced videos of its trucks that were doctored to hide their flaws.

    Called as a government witness, Nikola’s CEO testified that Milton “was prone to exaggeration” in pitching his venture to investors.

    “The lies — that is what this case is about,” prosecutor Matthew Podolsky told the jury in closing arguments Thursday.

    Defense attorney Marc Mukasey urged acquittal, saying there was “a stunning lack of evidence” that his client ever intended to cheat investors.

    Milton, 40, had pleaded not guilty to securities and wire fraud. He resigned in 2020 amid reports of fraud that sent Nikola’s stock prices into a tailspin.

    At one point, the trial was delayed for more than a week after Milton’s lawyer tested positive for the coronavirus.

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  • Closing prices for crude oil, gold and other commodities

    Closing prices for crude oil, gold and other commodities

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    Benchmark U.S. crude oil for November delivery fell $3.50 to $85.61 a barrel Friday. Brent crude for December delivery fell $2.94 to $91.63 a barrel.

    Wholesale gasoline for November delivery fell 7 cents to $2.63 a gallon. November heating oil fell 11 cents to $3.98 a gallon. November natural gas fell 29 cents to $6.45 per 1,000 cubic feet.

    Gold for December delivery fell $28.10 to $1,648.90 an ounce. Silver for December delivery fell 85 cents to $18.07 an ounce and December copper fell 2 cents to $3.42 a pound.

    The dollar rose to 148.68 Japanese yen from 147.17 yen. The euro fell to 97.25 cents from 97.85 cents.

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  • Utility begins loading fuel at new Georgia nuclear plant

    Utility begins loading fuel at new Georgia nuclear plant

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    ATLANTA — Workers have begun loading radioactive fuel into a new nuclear reactor in Georgia, utilities said Friday, putting the first new American nuclear reactor built in decades on a path to begin generating electricity in coming months.

    Georgia Power says workers will transfer 157 fuel assemblies into the reactor core at Plant Vogtle, southeast of Augusta, in the next few days. There are already two reactors operating at the plant, with fuel being loaded into a third unit and a fourth unit still under construction.

    Chris Womack, chairman and CEO of Georgia Power, the largest unit of Atlanta-based Southern Co., said in a statement that fuel loading shows “steady and evident progress” at Vogtle.

    “We’re making history here in Georgia and the U.S. as we approach bringing online the first new nuclear unit to be built in the country in over 30 years,” Womack said. “These units are important to building the future of energy and will serve as clean, emission-free sources of energy for Georgians for the next 60 to 80 years.”

    After the 90 tons (82 metric tonnes) of uranium oxide is loaded by a crane into the reactor, operating company Southern Nuclear will test whether the plant’s cooling and steam supply system work while fuel is inside the reactor at the super-high temperatures and pressures created by splitting atoms. Operators will then start generating electricity and link the plant to the transmission grid, with the reactor planned to reach commercial operation by the end of March.

    The Georgia Public Service Commission approved the new reactors in 2012, and the third reactor was supposed to start generating power in 2016. The cost of the third and fourth reactors has climbed from an original estimate of $14 billion to more than $30 billion.

    The Nuclear Regulatory Commission approved plans to load the fuel in August. Approval was delayed because much of the third reactor’s wiring had to be redone after federal regulators found major flaws. Southern Co. also fell behind on inspection documents that had to be completed before the NRC could sign off.

    Georgia Power’s 2.7 million customers are already paying part of the financing cost and state regulators have approved a monthly rate increase of at least $3.78 a month as soon as the third unit begins generating power. But the elected five-member Public Service Commission will decide later who pays for the remainder of the costs. The utility has other unrelated rate increases awaiting a decision.

    The fourth unit is supposed to be completed in late 2023. The two new units combined are projected to produce enough power for more than 500,000 homes and businesses.

    Vogtle is the only nuclear plant under construction in the United States. Its costs and delays could deter other utilities from building such plants, even though they generate electricity without releasing climate-changing carbon emissions.

    Georgia Power owns 45.7% of the two reactors, while Oglethorpe Power Corp. owns 30% on behalf of 38 power cooperatives. The Municipal Electric Authority of Georgia owns 22.3% on behalf of 49 city-owned utilities, while the city of Dalton’s utility owns 1.6%. MEAG has contracts to sell electricity from Vogtle to the city-owned utility in Jacksonville, Florida, and to some electric cooperatives and city utilities in Alabama and the Florida Panhandle.

    The other owners of Vogtle are trying to shift costs onto Georgia Power. Oglethorpe, MEAG and Dalton all sued Georgia Power earlier this year, claiming the company was trying to bilk them out of nearly $700 million by unilaterally changing a contract.

    Under a 2018 deal, Georgia Power agreed to assume all cost overruns above a certain level. In exchange, the co-owners would sell part of their ownership shares to Georgia Power. Oglethorpe and MEAG say projected overruns have reached that level, but Georgia Power said the threshold is $1.3 billion higher than the level claimed by the co-owners.

    Georgia Power is settling MEAG’s lawsuit in exchange for making at least $76 million in payments to MEAG.

    ———

    Follow Jeff Amy at http://twitter.com/jeffamy.

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  • Retail sales flat in September as inflation takes a bite

    Retail sales flat in September as inflation takes a bite

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    NEW YORK — The pace of sales at U.S. retailers was unchanged in September from August as rising prices for rent and food chipped away at money available for other things.

    Retail sales were flat last month, down from a revised. 0.4% growth in August, the Commerce Department reported Friday. Retail sales fell 0.4% in July.

    Excluding sales of automobiles and at gas stations, retail sales rose 0.3%. Excluding gas sales, spending was up 0.1%

    While the report showed the resilience of the American consumer, the figures are not adjusted for inflation unlike many other government reports. In fact, sales at grocery stores rose 0.4%, helped by rising prices in food.

    Evidence that the Fed’s fight to cool the economy may be taking hold can also be seen, particularly with big-ticket items. Sales at auto dealers fell 0.4% last month, and shoppers continued to pull back on appliances, electronics and furniture, all categories that did well during the early part of the pandemic. Business at consumer electronics and appliance stores fell 0.8%.

    Sales at clothing stores rose 0.5%, while business at department stores rose 1.3% That indicates a solid back-to-school season but adjusted for inflation, spending was modest, analysts said. Business at restaurants rose 0.5%, while online sales ticked up at the same pace.

    Neil Saunders, managing director of GlobalData Retail said the report was “representative of an economy that is tightening and of a shopper that is becoming more discerning and cautious about what they buy.”

    Consumer spending accounts for nearly 70% of U.S. economic activity and Americans have remained mostly resilient even with inflation near four-decade highs. Yet surging prices for everything from mortgages to rent have upped the anxiety level. Overall spending has slowed and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded.

    “Even if people are employed and on paper look reasonably comfortable they are not feeling comfortable, and they are very concerned about what’s to come next,” said Joel Rampoldt, a managing director in the retail practice at AlixPartners.

    Inflation in the United States accelerated in September, with the cost of housing and other necessities putting more pressure on households, eliminating pay gains and almost guaranteeing that the Federal Reserve will keep raising interest rates aggressively.

    Consumer prices, excluding volatile food and energy costs, jumped 6.6% in September from a year ago — the fastest such pace in four decades. And on a month-to-month basis, core prices surged 0.6% for a second straight time, defying expectations for a slowdown and signaling that the Fed’s multiple rate hikes have yet to ease inflation pressures. Core prices typically provide a better picture of underlying price trends.

    Overall prices rose 8.2% in September compared with a year earlier, down slightly from August, the government said Thursday in its monthly inflation report.

    It is a crucial period for retailers as they prepare for the holiday shopping season, which accounts on average for 20% of the industry’s annual sales. Inflation is already changing shopper habits, causing them to trade down to cheaper stores like Walmart and dollar stores and within aisles, switching to cheaper brands.

    Walmart and Target are among others that are pushing deals earlier while others are offering new financing for customers.

    Conn’s HomePlus, a Texas furniture and mattress chain that caters to households at the lower end of the economic scale, launched a new layaway program that caters to the 20% to 25% of the chain’s applicants not eligible to qualify for other financing.

    “(Shoppers’) ability to spend on discretionary is more limited than it was before, ” said CEO Chandra Holt. Sales on things like deluxe coffee makers other consumer electronics have faded, she said. .

    A slew of holiday forecasts from various research and consulting firms point to a sales slowdown from last year, but adjusted for inflation, retailers could actually see a decline. AlixPartners predicts holiday sales to be up anywhere from 4% to 7% from last year, which was up 16%, according to its calculations. The National Retail Federation, the nation’s largest retail trade group, hasn’t released its holiday forecast.

    Janet Barnes, a 42-year-old College Park, Maryland resident, says she’s trading down and going to cheaper stores for groceries as prices spike. Instead of Wegmans or Whole Foods, she now heads to the discount chain Lidl and said she saves about 40% in groceries. Thrift stores have replaced Nordstrom, she said.

    “We are creatures of habit, said Barnes. “But it is not a bad deal to see what else is going on — and test something else.”

    —————-

    Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

    AP Economics Writer Chris Rugaber in Washington contributed to this report.

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  • Kroger seeks to create grocery giant in $20B Albertsons bid

    Kroger seeks to create grocery giant in $20B Albertsons bid

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    Two of the nation’s largest grocers have agreed to merge in a deal they say would help them better compete with Walmart, Amazon and other major companies that have stepped into the grocery business.

    Kroger on Friday bid $20 billion for Albertsons Companies Inc., or $34.10 per share. Kroger will also assume $4.7 billion of Albertsons’ debt.

    Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith’s and Harris Teeter. Alberstons, based in Boise, Idaho, operates 2,220 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 710,000 people.

    The deal will likely get heavy scrutiny from U.S. antitrust regulators, especially at a time of high food price inflation. If approved, the deal is expected to close in early 2024.

    Together, the stores would control around 13% of the U.S. grocery market, assuming the sale or closure of around 400 stores for antitrust reasons, according to J.P. Morgan analyst Ken Goldman.

    Still, that is a distant second to Walmart’s 22% share. Amazon, which bought Whole Foods in 2017, is also a growing player in the space, with 3% share. Warehouse store Costco controls 6%.

    Goldman said a stronger combined company could possibly help tame food price inflation, since it would have more power to reject food producers’ price increases.

    Kroger said would reinvest approximately $500 million into price reductions, and spend $1.3 billion updating Albertsons stores and $1 billion on higher employee wages and improved benefits.

    But critics questioned a merger at a time of high food price inflation. Food prices rose 13% in September compared with last year, according to U.S. data released Thursday.

    “A Kroger-Albertsons deal would squeeze consumers already struggling to afford food, crush workers fighting for fair wages and destroy independent, community stores,” said Sarah Miller, executive director of the American Economic Liberties Project, a nonprofit that supports stronger corporate accountability and antitrust measures.

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  • Meet the judge who tamed the Musk-Twitter trial

    Meet the judge who tamed the Musk-Twitter trial

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    DOVER, Del. — A lawyer for billionaire Elon Musk had barely begun speaking during a recent hearing when the Delaware judge presiding over Twitter’s lawsuit against Musk abruptly cut her off.

    “Skip the rhetoric and go to the meat,” Chancellor Kathaleen St. Jude McCormick said bluntly.

    The judge’s tone that day illuminates the no-nonsense approach she brings as the first woman to lead Delaware’s 230-year-old Court of Chancery. The court is America’s go-to venue for high-stakes disputes involving some of the world’s biggest companies, many of which call Delaware their legal home.

    This court fight between the world’s richest man and the influential social platform could easily have become a circus, particularly given Musk’s penchant for chaos. That hasn’t happened largely thanks to McCormick, who’s been a judge for only four years. She has set firm deadlines, reined in over-the-top attorney requests and kept the case moving briskly.

    Musk has been battling Twitter since he announced in July that he wanted to scuttle an agreement to acquire the social media giant for $44 billion. Twitter sued Musk, seeking a court order of “specific performance” directing him to consummate the deal.

    McCormick recently ordered a temporary halt in the case after Musk indicated that he would go ahead with the transaction, but she also warned that she will schedule a November trial if Musk doesn’t close the deal by Oct. 28.

    The judge, whose humble demeanor belies her professional confidence, does not like the spotlight. After joining the court, McCormick admitted that she didn’t fully appreciate how everything she wrote or said would receive intense scrutiny.

    McCormick now seems unfazed that court observers and legal pundits are not only watching her every move, but sometimes pretending to know what she is going to do and why.

    “The world will have to wait for the post-trial decision,” she wrote in a September ruling, indirectly acknowledging the public spotlight on the case.

    From an early age, McCormick, 43, has demonstrated that she can adapt and persevere when faced with challenges.

    She was born in Dover, Delaware’s capital city, and raised with her two older brothers a few miles north in the town of Smyrna. Her mother taught English; her father taught history and coached Smyrna High School’s football team.

    “Katie” McCormick thought she, too, would become a teacher, even serving as president of the Delaware Future Educators of America, among other student organizations

    McCormick also was a tough athlete who played fastpitch softball and ran track despite having extreme scoliosis, an abnormal curvature of the spine that was apparent from birth and which required her to wear a brace at times. In 1995, when she was 15, McCormick underwent spinal fusion surgery.

    Two years later, as a 17-year-old senior, McCormick was the recipient of a scholarship awarded each year to a downstate athlete who had overcome a physical disability. A photograph from the awards banquet that night shows a smiling McCormick, in a white dress with paisley trim, standing between then-U.S. Sen. Joe Biden and former NFL quarterback Joe Theisman.

    “Some days were just a little harder than others, but I had faith it would all work out for the best,” McCormick said at the time, noting that other children she would meet during her hospital trips faced more severe problems.

    McCormick became the first Smyrna High student to attend Harvard University, where she majored in philosophy.

    McCormick, with a deep and eclectic interest in music, played in an Irish folk band while at college. She also became involved in a student-run legal aid program that helps low-income people in the Boston area. That experience helped pique her interest in the law, leading her to the University of Notre Dame law school.

    McCormick, who has long viewed the law as a path to serve others, spent her summers working in Northern Ireland for firms specializing in human rights work and international conflict resolution. After graduation, she looked homeward, taking a job with the Community Legal Aid Society, where she worked on housing issues.

    “Her academic record stood out. She was a Delaware native,” said CLASI executive director Dan Atkins, who recruited McCormick. “That was not typical for us, so that was cool.”

    After two years at CLASI, financial considerations involving the birth of her second child propelled McCormick into private practice. She later admitted that she felt “defeated” by the move because she had wanted to pursue a service-oriented path. Still, she developed a passion for business litigation, as well as for expedited proceedings like the fast-track schedule she ordered in the Twitter lawsuit.

    “Her return to public service with the court makes sense. She’s come full circle,” said Atkins, who noted that, in addition to corporate litigation, the Court of Chancery also handles equally important matters such as trusts and estates, guardianships and real estate disputes.

    “I bet you she gives those cases every bit of her attention that she gives the Twitter case,” he said. “I guarantee it.”

    McCormick is no humorless legal robot, however. In the introduction to her article in a law school journal, she poked fun at the supposed “misspelling” of her first name, Kathaleen, which she shares with her mother and grandmother. She explained that the unusual spelling was attributable to her great-grandmother, not the journal’s staff.

    On the Chancery Court, where judges sometimes cite historic, literary and even pop-culture references in their rulings, McCormick’s opinions tend to be comparatively prosaic and direct. Presented with the opportunity, however, she, too, can turn a phrase. A ruling last year in a lawsuit involving the cannabis industry opened with a reference to a Grateful Dead song.

    In another ruling last year, McCormick noted that, “Julia Child is rumored to have once said: ‘A party without a cake is just a meeting.’” In that case, she ordered a private equity firm to acquire a cake decorating company even though the buyers had “lost their appetite” for the deal after signing it. Such an order of specific performance is the same type of relief sought by Twitter against Musk.

    The icing on that particular cake? One week after that ruling, McCormick, who was appointed a vice chancellor in 2018 when the court expanded from five judges to seven, was promoted to chancellor.

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  • Meta hits back in fight with FTC over VR company acquisition

    Meta hits back in fight with FTC over VR company acquisition

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    WASHINGTON — Federal regulators and Facebook parent Meta are battling over Meta’s proposed acquisition of virtual-reality company Within Unlimited and its fitness app Supernatural.

    In a landmark legal challenge to a Big Tech merger, the Federal Trade Commission is suing to block the deal, asserting it would hurt competition and violate antitrust laws.

    Meta struck back Thursday, asking a federal court in San Jose, California, to dismiss the FTC’s July request for an injunction against the acquisition.

    The tech giant said in its court filing that the government failed to establish that the virtual-reality market is concentrated with high barriers to entry. The claims in the agency’s lawsuit “are nothing more than the FTC’s speculation about what Meta might have done,” the company says. It asserts that the FTC failed to meet two key legal standards set in previous cases.

    In a statement Thursday, the FTC noted that it revised its complaint last week in a way that narrowed the focus of its allegations. In its new form, the statement said, “We are confident that the District Court complaint will not be dismissed and this case will be heard.”

    Meta, in its own statement, said “The FTC’s attempt to fix its ill-conceived complaint still ignores the facts and the law, and relies on pure speculation of a hypothetical future state.”

    It added that it believes the complaint should be dismissed because there is “vibrant competition in the fitness space and across (virtual reality), and our acquisition of Within will be good for people, developers and the VR space.”

    The FTC’s vote last summer to seek to block the Within acquisition was 3-2, with Chair Lina Khan and the other two Democratic commissioners approving it and the two Republicans opposed.

    The FTC’s original suit named CEO Mark Zuckerberg as a defendant as well as Meta, but he was dropped in August.

    Under Zuckerberg’s leadership, Meta began a campaign to conquer virtual reality in 2014 with its acquisition of headset maker Oculus VR. Since then, Meta’s VR headsets have become the cornerstone of its growth in the virtual reality space, the FTC noted in its suit. Fueled by the popularity of its top-selling Quest headsets, Meta’s Quest Store has become a leading U.S. app platform with more than 400 apps available to download, according to the agency.

    Meta bought seven of the most successful virtual-reality development studios, and now has one of the largest virtual-reality content catalogs in the world, the FTC says. Its acquisition of the Beat Games studio gave Meta control of the popular app Beat Saber.

    In its suit against the Within acquisition, the FTC cited a 2015 email from Zuckerberg to key Facebook executives saying that his vision for “the next wave of computing” was control of apps as well as the platform on which those apps are distributed. The email says a key part of this strategy is for the company to be “completely ubiquitous in killer apps,” which are apps that prove the value of the technology.

    Zuckerberg announced ambitious plans a year ago to build the “metaverse” — a virtual-reality construct intended to supplant the internet, merge virtual life with real life and create endless new playgrounds for everyone.

    On Tuesday, the company based in Menlo Park, California, unveiled a $1,500 virtual reality headset in the hope that people will soon be using it to work and play in the metaverse.

    The action marked a new FTC salvo against Meta — the owner of Instagram, Messenger and WhatsApp in addition to Facebook — in the agency’s drive against what it views as anticompetitive conduct in the tech industry.

    The FTC filed an antitrust lawsuit against Facebook in late 2020. With that action, the agency is seeking remedies that could include a forced spinoff of Instagram and WhatsApp, or a restructuring of the company.

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  • Nikola founder’s trial ready for jury after final arguments

    Nikola founder’s trial ready for jury after final arguments

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    NEW YORK — The fate of Nikola Corp ’s founder will be in the hands of a jury after he was portrayed Thursday in closing arguments by a prosecutor as a habitual liar, and by his lawyer as an inspiring visionary being unjustly prosecuted.

    Trevor Milton, 40, has pleaded not guilty to securities and wire fraud. In 2020, he resigned from the company he founded in a Utah basement six years ago.

    Deliberations will begin Friday in the Manhattan federal criminal trial, after it was delayed for over a week after Milton’s lawyer tested positive for the coronavirus.

    In closings Thursday, defense attorney Marc Mukasey urged acquittal, saying there was “a stunning lack of evidence” that his client ever intended to cheat investors.

    “The government never proved fraud,” Mukasey said. “There were no crimes here and Trevor Milton is not guilty.”

    In 2020, Nikola’s stock price plunged and investors suffered heavy losses as reports questioned Milton’s claims that the company had already produced zero-emission 18-wheel trucks.

    The company paid $125 million last year to settle a civil case against it by the Securities and Exchange Commission. Nikola, which continues to operate from an Arizona headquarters, didn’t admit any wrongdoing.

    In his closing rebuttal argument, Assistant U.S. Attorney Matthew Podolsky insisted the evidence was overwhelming that Milton lied repeatedly to make it seem Nikola had produced operable trucks fueled by hydrogen gas and that the company had billions of dollars in contracts when they didn’t exist.

    Podolsky said Milton wanted to get rich and learned that he could dupe investors into supporting Nikola through lies, like when he claimed Nikola had built its own revolutionary truck that was actually a General Motors Corp. product with Nikola’s logo stamped onto it.

    Another example was when he sped up the video of a truck rolling down a hill to make it seem like the company had developed a fully functioning truck when it had not, the prosecutor said.

    “The lies. That is what this case is about,” Podolsky said.

    He said Milton went on television news programs to tell his lies and tweeted them as well.

    Podolsky told jurors not to accept Mukasey’s explanations for his client’s behavior, including arguments that Milton had the support of the company’s board of directors and was not warned by anyone to stop conveying his enthusiasm for Nikola publicly.

    “This is the robber blaming the guard for not stopping him,” he said.

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  • Amazon’s holiday sales event sees lower sales, group says

    Amazon’s holiday sales event sees lower sales, group says

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    NEW YORK — Amazon said Thursday its Prime members ordered more than 100 million items during a sales event this week that analysts are expecting to be a bellwether for the holiday shopping season.

    As expected, the Seattle-based e-commerce company did not share sales figures. Still, some third-party estimates offer clues on how consumers spent during the two-day discount event that ran on Tuesday and Wednesday.

    According to the data group Numerator, which tracked roughly 44,670 orders during the sale, the average order size clocked in at $46.68, $13 less than what it was during Amazon’s Prime Day sales event in July. Inflation also had an impact – 26% of shoppers passed on a deal because it wasn’t a necessity, Numerator said.

    Major retailers have been offering more holiday discounts this year and doing it much earlier than usual, aiming to offload excess goods and offer cash-strapped Americans better deals amid high inflation.

    Amazon’s discount event this week was the first time the company offered major sales to its Prime members twice in one year. Walmart has also been offering sales this week and has expanded its window for gift returns to between Oct. 1 and Jan. 31, compared with last year’s return window of Nov. 1 to Jan. 24. Meanwhile, Target began offering holiday deals last week during a two-day discount event. The company declined to share its revenue from those sales.

    According to Salesforce, which analyzes online shopping data, the average online discount rate on Tuesday and Wednesday was roughly 21%, the deepest discount rate since the beginning of the pandemic outside of Cyber Week, the time between Thanksgiving and Cyber Monday.

    But despite the deep discounts, consumers are still generally paying more than they did in the past two years due to high inflation. The average online selling price on Tuesday and Wednesday, for example, was up 8% compared to last year, and 17% compared to 2020, Salesforce said.

    Online spending in November and December is expected to hit $209.7 billion, a 2.5% jump from 2021, according to Adobe Analytics. That’s sluggish growth compared to last year’s gain of 8.6%.

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  • Taiwan chipmaker TSMC says quarterly profit $8.8 billion

    Taiwan chipmaker TSMC says quarterly profit $8.8 billion

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    TAIPEI, Taiwan — Taiwan Semiconductor Manufacturing Co., the biggest contract manufacturer of processor chips for smartphones and other products, said Thursday that its quarterly profit rose 79.7% over a year earlier to $8.8 billion amid surging demand.

    Quarterly revenue rose 47.9% over a year ago to $19.2 billion, the company reported.

    TSMC, headquartered in Hsinchu, Taiwan, makes processor chips for brands including Apple Inc. and Qualcomm Inc. Many of their products are assembled by factories in China, which has exposed TSMC to the possible impact of U.S.-Chinese tension over technology and security.

    TSMC’s U.S.-traded shares fell 14% in value after Washington on Friday tightened restrictions on Chinese access to advanced computer chips. Those controls are based on limiting the ability of TSMC and other suppliers to use U.S. chip or manufacturing technology for Chinese customers.

    The American Embassy in Beijing didn’t immediately respond to a question about whether TSMC had received an exemption that might allow normal supplies to Chinese factories to continue.

    TSMC’s chip supplies to China already were restricted under a 2020 order by then-President Donald Trump that prohibits vendors from using U.S. technology to manufacture for Huawei Technologies Ltd., a maker of network switching gear and smartphones. Washington says Huawei is a security risk and might facilitate Chinese spying, which the company denies.

    Chipmakers are benefiting for demand for next-generation telecoms, high-performance computing and chips for use in products from cars to medical devices.

    TSMC announced plans last year to invest $100 billion over the next three years in manufacturing and research and development.

    Most semiconductors used in smartphones, medical equipment, computers and other products are made in Taiwan, South Korea and China.

    That has prompted concern among American officials about reliance on supplies that might be disrupted by conflict between China and Taiwan. They are lobbying TSMC and other chipmakers to set up factories in the United States.

    TSMC announced plans last year to build its first chip factory in Japan. The company and Sony Corp. later said they would jointly invest $7 billion in the facility.

    TSMC operates a semiconductor wafer fabrication facility in Camas, Washington, and design centers in San Jose, California, and Austin, Texas.

    The company has announced plans for a second U.S. production site in Arizona.

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  • Japan’s Sony, Honda jointly making EVs for 2026 US delivery

    Japan’s Sony, Honda jointly making EVs for 2026 US delivery

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    TOKYO — A new electric car company that brings together two big names in Japanese business, Honda and Sony, officially kicked off Thursday, with both sides stressing their common values of taking up challenges and serving people’s needs.

    The electric vehicle from Sony Honda Mobility Inc. will go on sale in 2025, with deliveries coming first in the U.S. in early 2026, and in Japan later that year, Chief Executive Yasuhide Mizuno told reporters. Pre-orders start 2025.

    In March, Sony Group Corp. and Honda agreed to set up the 50-50 joint venture, with the idea of bringing together Honda’s expertise in autos, mobility technology and sales with Sony’s imaging, network, sensor and entertainment expertise.

    Production will take place at a Honda plant in the U.S., but details such as pricing, platform and the kind of battery to be used were not disclosed. Production volume was also not given, but officials said this was a special model and not intended for massive sales.

    Mizuno, who is from Honda Motor Co., said the collaboration brings together hardware and software to deliver an emotionally satisfying experience on the move.

    “It was necessary to take a totally new approach,” Mizuno told reporters in Tokyo. “We want to make this completely new.”

    The U.S. was chosen for the launch because electric vehicles were already popular there, Japan came second as Honda’s home market, and other markets, including Europe, will follow, but no dates were set, he said.

    Izumi Kawanishi, the Sony executive who became Chief Operating Officer at Sony Mobility, said partners will be added to the project.

    Demand for “zero-emissions” vehicles is expected to grow worldwide amid concerns about climate change and sustainability.

    Sony, which makes the PlayStation video-game console and has movie and music businesses, showed an electric car concept at the CES gadget show in Las Vegas two years ago, and has been eager to find an auto partner.

    Honda has electric vehicles in its lineup, although not as plentiful as do some rivals, like Ford Motor Co. or Nissan Motor Co. Tokyo-based Honda has teamed up with General Motors to share platforms for EVs in North America, but the products are not yet on sale.

    ———

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

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  • TikTok going big on US e-commerce? Job listings offer clues

    TikTok going big on US e-commerce? Job listings offer clues

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    NEW YORK — TikTok appears to be deepening its foray into e-commerce with plans to operate its own U.S. warehouses, the kind of packing and shipping facilities more associated with Amazon or Walmart than the social media platform best known for addictive short videos.

    In the past two weeks, TikTok has posted several job listings on LinkedIn looking for candidates to help it develop and grow its “Fulfillment by TikTok Shop” in the U.S. to accommodate sellers using the app. According to the listings, TikTok plans to provide warehousing, delivery and item return options to sellers.

    A company spokesperson declined to comment on TikTok’s e-commerce plans in the U.S.

    But the U.S. job listings offer a window into a possible U.S. e-commerce expansion. In some listings, TikTok says it is looking for a candidate who can manage a free return program, plan how to move inventory from one warehouse or business to another, and develop its fulfillment service in the U.S. In another listing for a position in Seattle, the company refers to a global e-commerce team and a team member who will be responsible for building a global warehousing network, signaling its plans could be much larger.

    “The e-commerce industry has seen tremendous growth in recent years and has become a hotly contested space amongst leading Internet companies, and its future growth cannot be underestimated,” the company wrote in the job listings. “With millions of loyal users globally, we believe TikTok is an ideal platform to deliver a brand new and better e-commerce experience to our users.”

    Axios first reported on the job postings.

    Shopping on social media sites, known as social commerce, is a $37 billion market in the U.S., led by Meta, which owns Facebook and Instagram, according to Insider Intelligence. ByteDance, the Beijing-based company that owns TikTok, already runs a thriving social media marketplace on Douyin, its twin video app for the Chinese market. The TikTok spokesperson said the company is focused on “providing merchants with a range of product features and delivery options” in places it currently has e-commerce programs, such as Southeast Asia and the United Kingdom.

    Insider Intelligence projects about 23.7 million U.S. shoppers are expected to make at least one purchase through TikTok this year by using affiliated links or conducting a transaction on the platform itself.

    Some of those sales are already having an effect. Communities such as #BookTok, a corner of TikTok devoted to literature and reading, has been credited with driving a spike in the sales of print romance books this year. To accommodate more purchases on its app, TikTok said last summer it would partner with the Canadian e-commerce company Shopify to allow users to buy items directly on the app.

    TikTok has been intensifying competition with Meta and other rivals, luring younger users — as well as popular influencers — from YouTube, Facebook and Instagram. The site’s bite-sized, entertaining clips are served up by an algorithm that often seems to know what people want before they do.

    The results are difficult to ignore. In July, Meta posted its first revenue decline in history, due in part to competition from TikTok. YouTube, meanwhile, recently said it would make the creators of short-form videos eligible to join its revenue-sharing program. Previously, YouTube only allowed revenue sharing for longer videos.

    Compared to digital advertising, ecommerce is a tiny source of revenue for Meta, and will likely be for TikTok for the foreseeable future. At the same time, TikTok executives are likely looking to broaden the company’s revenue sources beyond ads — a market dominated in the U.S. by Meta and Alphabet, which owns YouTube and Google.

    Neil Saunders, managing director for GlobalData Retail, said TikTok’s reach and influence are helping it become a powerful force in advertising and sales and building out that capability with warehouses and other facilities would enable it to offer a complete service.

    “This would both be an additional revenue stream and would improve the quality of the shopping experience for consumers,” Saunders said. But a serious move into warehousing would be an expensive undertaking, and TikTok would face established competitors in the likes of Amazon and Walmart.

    “However, TikTok has a massive audience and a massive customer base, so it has more than enough demand for this to make sense,” Saunders said. “Provided TikTok maintains its popularity it could pose a threat to incumbents and prove to be a highly disruptive force.”

    Others are taking a different tone.

    “It’s idiotic,” said Wedbush analyst Michael Pachter. “They have no chance of competing and it is a complete waste of money and time.”

    ——————

    Associated Press writer Barbara Ortutay in San Francisco contributed to this report.

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  • Families of crash victims rain wrath on Airbus, Air France

    Families of crash victims rain wrath on Airbus, Air France

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    PARIS — Distraught families whose loved ones died in Air France‘s worst-ever crash on Monday shouted down the CEOs of the airline and of planemaker Airbus as the two companies went on trial on manslaughter charges for the 2009 accident over the Atlantic Ocean.

    Cries of “Shame!” erupted in the courtroom after the executives took the stand.

    The crash of storm-tossed Flight 447 en route from Rio de Janeiro to Paris killed all 228 people aboard and had lasting impact on the industry, leading to changes in regulations for airspeed sensors and in how pilots are trained.

    The victims came from 33 countries, and families from around the world are among the plaintiffs in the case, fighting for more than a decade to see it come to trial.

    “It’s very important that we made it to the trial stage. … Thirteen years of waiting, it is almost inhuman,” said German Bernd Gans, who lost his daughter Ines in the crash. Another man came to the trial with a sign reading: “French Justice. 13 Years Too Late.”

    The official investigation found that multiple factors contributed to the crash, and the companies deny criminal wrongdoing. The two-month trial is expected to focus on pilot error and the icing over of external sensors called pitot tubes.

    An Associated Press investigation at the time found that Airbus had known since at least 2002 about problems with the type of pitots used on the jet that crashed, but failed to replace them until after the crash.

    Airbus CEO Guillaume Faury took the stand on the opening day to say: “I wanted to be present today, first of all to speak of my deep respect and deepest consideration for the victims; loved ones.”

    “Shame on you!” family members retorted.

    “For 13 years you have shown contempt for us!” one shouted.

    Air France CEO Anne Rigail met similar emotions when she told the court she was aware of the families’ pain.

    “Don’t talk to us about pain!” rose an angry voice.

    The presiding judge called for calm and the proceedings resumed.

    Air France has already compensated families of those killed. If convicted, each company faces potential fines of up to 225,000 euros ($219,000) — a fraction of their annual revenues. No one risks prison, as only the companies are on trial.

    Still, the victims’ families see the trial itself as important after their long quest for justice, and aviation industry experts see it as significant for learning lessons that could prevent future crashes.

    The A330-200 plane disappeared from radar over the Atlantic Ocean between Brazil and Senegal with 216 passengers and 12 crew members aboard.

    As a storm buffeted the plane, ice disabled the plane’s pitot tubes, blocking speed and altitude information. The autopilot disconnected. The crew resumed manual piloting, but with erroneous navigation data. The plane went into an aerodynamic stall, its nose pitched upward and then it plunged into the sea on June 1, 2009.

    It took two years to find the plane and its black box recorders on the ocean floor, at depths of more than 13,000 feet (around 4,000 meters).

    Air France is accused of not having implemented training in the event of icing of the pitot probes despite the risks. It has since changed its training manuals and simulations. The company said it would demonstrate in court “that it has not committed a criminal fault at the origin of the accident” and plead for acquittal.

    Airbus is accused of having known that the model of pitot tubes on Flight 447 was faulty, and not doing enough to urgently inform airlines and their crews about it and to ensure training to mitigate the risk. The model in question — a Thales AA pitot — was subsequently banned and replaced.

    Airbus blames pilot error, and told investigators that icing over is a problem inherent to all such sensors.

    The companies’ “image, their reputation” is at stake, said Philippe Linguet, who lost his brother on Flight 447. He expressed hope the trial would expose the failings of Airbus and Air France — two major players in the industry and in the French economy — to the world.

    Daniele Lamy, who heads an association of victims’ families, said they are bracing for a difficult trial.

    “We are going to have to unfortunately relive particularly painful moments,” she said. But she called the trial a welcome opportunity after prosecutors initially sought to close the case.

    “This will allow the family to express themselves, to express their suffering over 13 years,” she said.

    ———

    Angela Charlton and Masha Macpherson contributed to this report.

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  • Century-old nonprofit Goodwill on taking thrifting online

    Century-old nonprofit Goodwill on taking thrifting online

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    NEW YORK — Goodwill is expanding its online presence, promising high tech features from digitized receipts to personalized alerts.

    The 120-year-old Maryland-based nonprofit organization this month launched GoodwillFinds, a shopping venture that is making roughly 100,000 donated items available for purchase online and expanding Goodwill’s internet presence that until now had been limited to auction sites like ShopGoodwill.com or individual stores selling donations online via eBay and Amazon. GoodwillFinds aims to offer 1 million items online in the next year or two.

    Spearheading the venture is Matthew Kaness, newly appointed CEO of the online shopping arm who has 20 years of retail experience. GoodwillFinds is a separate entity from Goodwill Industries International Inc., but will support the larger organization by helping fund its community-based programs across the U.S., provide professional training, job placement and youth mentorship. It should also increase donations, while also helping to expand its base of customers.

    The Associated Press spoke to Kaness about the online experience and why the venture’s timing is right. The interview has been edited for clarity and length.

    Q: What makes this venture different from the existing Goodwill online experience?

    A: Access to shopping and thrifting on Goodwill will be unparalleled for the first time online compared to going to your one store location or trying to go through a sea of items on Amazon and eBay. The second thing is that because of technology, we’re going to be able to personalize the discovery, the recommendations, the notification, the email alerts, everything that you’re accustomed to when shopping at other brands.

    Q: How will a greater presence online amplify Goodwill’s mission?

    A: We are going to be elevating the global story around the impact that Goodwill has. Last year, Goodwill provided social services to 2 million individuals across the country. And then last year, all the Goodwills diverted 3 billion pounds of goods away from landfill based on the donations received and sold.

    Q: Why is the timing right?

    A: There’s a reason why secondhand is growing eight times faster than the overall industry. Consumers, in particular, younger consumers, Gen Z, generally love thrifting from a fashion perspective and from a retail store shopping perspective. They really care about the impact that their dollars have on the environment. That, coupled with the incredible value that all families of households for 100 years have found, especially at this time of economic hardship.

    Q: Will this increased shift to online hurt the Goodwill physical stores?

    A: When you are a store-based company and you’re only selling a little bit online through marketplaces, you don’t know who your customer is. You have to reacquire that customer over and over again. There are so many online competitors that are keeping your customers from getting to your store because they’re making it so convenient for shopping secondhand online. This is is going to massively expand the audience and the customer base for each one of our Goodwill members.

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