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  • Nikola founder Trevor Milton found guilty of securities fraud over misleading statements

    Nikola founder Trevor Milton found guilty of securities fraud over misleading statements

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    A federal jury in New York convicted Nikola Corp. founder Trevor Milton of securities fraud for what prosecutors said were his repeated lies about the development of the company’s zero-emissions trucks and technology.

    The guilty verdict caps the downfall of Milton, who founded Nikola
    NKLA,
    -1.29%

    in his basement in 2015 and took it public in 2020 at a valuation of $3.3 billion, when the company hadn’t sold a single truck. The company’s market valuation briefly exceeded that of industry giants such as Ford Motor Co.
    F,
    -0.85%

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  • Florida shrimpers race to get battered fleet back to sea

    Florida shrimpers race to get battered fleet back to sea

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    FORT MYERS BEACH, Fla. — The seafood industry in southwest Florida is racing against time and the elements to save what’s left of a major shrimping fleet — and a lifestyle — that was battered by Hurricane Ian.

    The storm’s ferocious wind and powerful surge hurled a couple dozen shrimp boats atop wharves and homes along the harbor on Estero Island. Jesse Clapham, who oversees a dozen trawlers for a large seafood company at Fort Myers Beach, is trying to get boats back to sea as quickly as possible — before their engines, winches and pulleys seize up from being out of the water.

    One of two shrimpers that didn’t sink or get tossed onto land went out Sunday, but the victory was small compared with the task ahead.

    “There’s 300 people who work for us and all of them are out of a job right now. I’m sure they’d rather just mow all this stuff down and build a giant condo here, but we’re not going to give up,” said Clapham, who manages the fishing fleet at Erickson and Jensen Seafood, which he said handles $10 million in shrimp annually.

    The company’s fractured wharves, flooded office and processing house are located on Main Street beside another large seafood company, Trico Shrimp Co. There, a crane lifted the outrigger of grounded shrimper Aces & Eights — the first step toward getting it back in the water. Across the yard, the massive Kayden Nicole and Renee Lynn sat side-by-side in the parking lot, stern to bow.

    Shrimping is the largest piece of Florida’s seafood industry, with a value of almost $52 million in 2016, state statistics show. Gulf of Mexico shrimp from Fort Myers has been shipped all over the United States for generations.

    Now, it’s a matter of when the fishing can resume and whether there will still be experienced crews to operate the boats when that happens.

    Deckhand Michele Bryant didn’t just lose a job when the boat where she works was grounded, she lost her home. Shrimping crews are at sea for as long as two months at a time, she said, so members often don’t have homes on land.

    “I’ve got nowhere to stay,” she said. “I’m living in a tent.”

    Richard Brown’s situation is just as precarious. A citizen of Guyana who was working on a boat out of Miami when Ian hit southwest Florida, Brown rode out the storm on one of four boats that were lashed together along a harbor seawall.

    “We tried to fight the storm. The lines were bursting. We kept replacing them but when the wind turned everybody was on land,” he said.

    There’s no way to catch shrimp on a boat surrounded by dirt, so Brown is staying busy scraping barnacles off the hull of the Gulf Star. “It’s like it’s on dry dock,” he said — but he’s no more sure what to do now than at the height of the storm.

    “It was terrifying – the worst experience,” said Brown, who is more than 2,160 miles (3,480 kilometers) from his home in South America. “I was just thinking, ‘You could abandon the ship.’ But where are you going?”

    Seafood fleets along the Gulf Coast are used to getting wiped out by hurricanes. Katrina pummeled the industry from Louisiana to Alabama in 2005, and the seafood business in southern Louisiana is still recovering from Hurricane Ida’s punch last year. But this part of Florida hasn’t seen a storm like Ian in a century, leaving people to wonder what happens next.

    Dale Kalliainen and his brother followed their father into the shrimping business and owns the trawler Night Wind, which landed amid a mobile home park near a bridge. He said high fuel prices and low-cost imported seafood took a bite out the industry long before Ian did its worst.

    “There used to be 300 boats in this harbor and now there’s maybe 50,” he said. “It’s going to be probably years before this business is even close to being back to what it was.”

    Clapham, the 47-year-old fleet manager, has spent his entire life on shrimp boats. The industry already operates on a thin margin and needs help recovering from Ian, he said.

    “These boats go out and catch $60,000, $70,000 worth of shrimp a month, but it costs $30,000 to $50,000 to put fuel on them and groceries and supplies, and then you’ve got to pay the crew. And sometimes these boats’ (catches) don’t even pay for everything,” he said. “We take money from one boat and get another boat going and send ’em back fishing just to keep going.”

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  • Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

    Ford stock is now a ‘sell’ at UBS as an oversupply problem looms

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    Shares of Ford Motor Co. were hit hard Monday by UBS analyst Patrick Hummel’s recommendation that investors sell, as the auto industry is facing a worrisome U-turn from undersupply to oversupply.

    Hummel also cut his ratings on several other global auto makers, including General Motors Co.
    GM,
    -5.59%
    ,
    saying that as a recession concerns grow, “demand destruction is no longer a vague risk.”

    In addition to all of the data suggesting the economy is slowing, Hummel said growing U.S. dealer inventories, weak used-car pricing, used-car dealer profit warnings and signs indicating deteriorating orders and shorter delivery times make him more cautious on the overall auto industry.

    Don’t miss: CarMax stock suffered biggest selloff since the year 2000, as inflation, low consumer confidence lead to big profit miss.

    “We think it will only take 3-6 months for the auto industry to end up in oversupply, which will put an abrupt end to a 3-year phase of unprecedented OEM [original equipment manufacturer] pricing power and margins,” Hummel wrote in a note to clients.

    As part of his negative industry outlook, he cut his rating on Ford
    F,
    -7.38%

    to sell from neutral and his stock price target to $10 from $13, with the new target implying about 11% downside from current levels.

    Ford’s stock sank 7.6% in morning trading. It was trading up just 0.6% month to date, after plunging 26.5% in September to suffer its worst monthly performance since it plummeted 30.6% during pandemic-stricken March 2020.

    Hummel noted that Ford has already warned about having more vehicles in inventory than expected, and above payments to suppliers running about $1 billion higher than projected, so he sees little margin left for negative surprises in terms of fourth-quarter deliveries and supply costs.

    Hummel cut his 2023 adjusted earnings-per-share estimate by 61% to 52 cents a share, to reflect a $6.5 billion drop in price and sales mix. The compares with the current 2023 FactSet EPS consensus of $1.87.

    “This sounds very negative, but Ford gains $19 billion in price alone since the beginning of 2020,” Hummel wrote.

    Also read: Ford again raises price of F-150 Lightning electric pickup.

    Read more: Ford September sales fall as drop in trucks offsets near tripling in EVs.

    Meanwhile, GM’s stock dove 6.9% in morning trading toward a three-month low, and shares have shed 2.5% so far this month after tumbling 16% last month.

    Hummel downgraded GM to neutral from buy, and dropped his price target by 32%, to $38 from $56.

    The rating remains above Ford’s, because unlike its rival, Hummel noted that GM has had “no hiccups” in its third-quarter production schedule and therefore a “solid” quarterly report is expected. However, the downgrade reflects the fact that GM is “not immune” to a downturn in the industry.

    Separately, Hummel also cut his stock-price target on Tesla Inc.
    TSLA,
    -0.16%

    to $350 from $367, saying that following a third-quarter volume report that was below expectations, it will be “more challenging” for the electric-vehicle maker to meet its 2022 delivery growth target.

    However, Hummel reiterated his buy rating on Tesla, as he believes the EV maker is best positioned to use pricing as the tool to fill its factories.

    “Overall, the recession outlook should result in moderately lower margins for Tesla than previously expected, but we’re highly confident that by keeping the top line [revenue] momentum, Tesla will even widen the gap vs. competitors in terms of profitability,” Hummel wrote.

    Ford’s stock has fallen 3% over the past three months, while GM shares have lost 3.1% and Tesla’s stock has dropped 11.8%. In comparison, the S&P 500 index
    SPX,
    -1.08%

    has declined 7.5% the past three months.

    Among other auto makers, he also downgraded both Renault SA
    RNO,
    +2.41%

    RNLSY,
    +1.17%

    and Volkswagen AG
    VOW,
    -3.29%

    to neutral from buy. He also downgraded auto parts makers Continental AG
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    +0.10%

    and Faurecia SE
    EO,
    -3.77%

    FURCF,
    -3.67%

    to neutral from buy.

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  • F Stock Price | Ford Motor Co. Stock Quote (U.S.: NYSE) | MarketWatch

    F Stock Price | Ford Motor Co. Stock Quote (U.S.: NYSE) | MarketWatch

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    Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following segments: Automotive, Mobility, Ford Credit, Corporate Other, Interest on Debt, and Special Items. The Automotive segment develops, manufactures, markets, and services Ford and Lincoln vehicles, service parts, and accessories. The Mobility segment includes the development of autonomous vehicles, equity ownership in Argo AI which is a developer of autonomous driving systems, and related businesses. The Ford Credit segment consists of vehicle-related financing and leasing activities. The Corporate Other segment covers corporate governance expenses, interest income, gains and losses from cash, cash equivalents, and marketable securities, and losses associated with intercompany lending. The Interest on Debt segment is composed of interest expense on company debt excluding Ford Credit. The Special Items segment deals with pension and employment benefit remeasurement gains and losses, gains and losses on investments in equity securities, significant personnel expenses, and other items that are not considered to be indicative of earnings from ongoing operating activities. The company was founded by Henry Ford on June 16, 1903, and is headquartered in Dearborn, MI.

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  • US shift away from coal hits tribal community in New Mexico

    US shift away from coal hits tribal community in New Mexico

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    KIRTLAND, N.M. — The clamor of second graders breaking away from lessons to form lunch lines has gotten quieter in a rural New Mexico community, where families losing coal jobs have been forced to pack up and leave in search of work.

    At Judy Nelson Elementary, 1 in 4 students have left in an exodus spurred by decisions made five years ago to shutter a coal-fired power plant and mine that sit just up the road from the school in a largely Navajo community. The plant and mine had provided electricity to millions of people across the southwestern U.S. for nearly a half-century.

    The San Juan Generating Station burned its last bit of coal Thursday. The remaining workers will spend the coming weeks draining water from the plant, removing chemicals and preparing to tear down what has long been fixture on the high-desert horizon.

    It’s part of the latest wave of coal-burning units to be retired as New Mexico and other states try to fight climate change by requiring more carbon-free sources of electricity. President Joe Biden also has pledged to cut greenhouse gas emissions in half by 2030.

    Just weeks ago, Hawaii’s last coal-fired power plant closed after 30 years, and more retirements are scheduled around the U.S. over the next decade.

    Realities of shuttering the San Juan plant are setting in for surrounding communities, including the Navajo Nation, where poverty and joblessness already are exponentially higher than national averages. Hundreds of jobs are evaporating along with tens of millions of dollars in annual tax revenue used to fund schools and a community college.

    “A lot of the Native American families have multi-generations living in the home so it doesn’t just affect the husband and wife. It affects their children and their grandchildren,” said Arleen Franklin, who teaches second grade at Judy Nelson. Her husband purchases equipment for a coal mine that feeds another power plant scheduled to close in 2031.

    Denise Pierro, a reading teacher at Judy Nelson, said it’s stressful for parents to see a steady income erased. Pierro’s husband, who served as the general manager of the mine for the San Juan plant, is among those forced into early retirement.

    “They’ve taken the rug out from underneath our feet,” she said.

    Area power plants, mines and associated businesses represent 80% of property tax revenues that fund the Central Consolidated School District, which spans an area the size of Delaware and Rhode Island combined. Almost 93% of the students are Navajo.

    It’s rural and remote. Some students ride a school bus for three hours round trip, arriving home well after sunset. Internet service is spotty or nonexistent, and many homes don’t have electricity or indoor plumbing. The poverty rate within the district is four times the national level. The median annual household income is about $20,000, and the unemployment rate hovers around 70%.

    New Mexico’s Democratic leaders have celebrated the plant’s closure while touting a landmark 2019 law that pushes for a renewable energy economy. Gov. Michelle Lujan Grisham, who is running for reelection, has said the law represented a promise to future generations for a cleaner environment and new job opportunities.

    Environmentalists have said the closure will reduce air and water pollution in a region that some have described as an industrial sacrifice zone. They argue that power plant emissions and methane from the oilfields have caused health problems for residents.

    Joe Ramone, a 69-year-old pipe welder who worked at San Juan, lives in a Navajo community not far from the Four Corners plant. When the wind blows just right, he said his community is hit with ash and coal dust.

    Still, he said his priority is making sure Navajos have work.

    “I don’t want to see anybody unemployed and I am in no way in favor of these companies being shut down. But there’s room for improvement,” he said, suggesting more investments could have been made.

    The loss of the San Juan plant and the mine ripple through every facet of life, from fewer lunch orders at Kirtland’s café to a dwindling ash supply for concrete manufacturers. Meanwhile, prices have skyrocketed for everything from the Navajo staple of mutton to the woven baskets and other materials needed for healing ceremonies.

    Public Service Co. of New Mexico, which runs the plant, is providing $11 million in severance packages to help about 200 displaced workers. About 240 mine workers are getting severance payments worth $9 million. Another $3 million went to job training.

    A state fund established by the energy law also includes $12 million for affected workers.

    Solar and battery storage projects are meant to eventually replace the capacity lost with San Juan’s shutdown and provide jobs during construction. But some of those projects have been delayed due to supply chain problems, and others are on hold indefinitely amid historic inflation and other economic constraints.

    Fresh off a night shift as an electrician at the mine for the neighboring Four Corners Power Plant, Christine Aspaas, a Central Consolidated School Board member, said even if those “green” jobs existed now, they would be temporary. And to make up for lost property tax revenue, she said, some families will have to pay up to seven times more.

    It’s been heartbreaking for so many Navajos to consider leaving home, Aspaas said.

    “That’s what others don’t understand,” she said. “There’s culture, there’s traditions, and so it’s not easy.”

    Sharon Clahchischilliage, once a teacher and a former New Mexico lawmaker, said people in her Navajo community near Shiprock are angry.

    “One of them told me, ‘I don’t know who to be angry at for us having to do this. We don’t have a family anymore,’” she said, referring to bonds broken as Navajos search for jobs elsewhere.

    In the final days, the plant’s spinning turbine sent vibrations through layers of concrete and passing work boots. Heat emanated from the boilers below.

    In the dim control room, workers monitored screens displaying temperatures, pressure, turbine speeds and pollution control systems. Allen Palmer, 70, spent over half his life working his way up the ranks.

    “I hate to see it close,” he said.

    Workers knew for years that the plant would be shuttered. It became more real as coal piles shrank each day — until there was nothing left. As the finish line approached, the company served workers green chile cheeseburgers as a morale booster alongside a big projection screen that read: “Thank you to all employees at San Juan for your years of dedicated service!”

    The last few dozen employees will be laid off over the coming weeks. Some were ready to retire; in June, there were voluntary layoffs when the first of the last two generating units closed.

    “There’s lots of us who have worked 20-plus years and we all know each other and it’s our family,” said plant director Rodney Warner, who will oversee the decommissioning. “It’s who we are.”

    December would have marked 10 years at the plant for Steven Sorrow, 32. He and his coworkers know there’s a good chance they will have to uproot and possibly enter other fields. Some will head to Wyoming, Colorado or Utah, where there are other plants and mines.

    “It’s going to be an adjustment for sure,” he said. “I feel like I’ve tried to prepare over the five years when they told us what we had left. Hopefully I’ve prepared well enough.”

    Aspaas said officials need to find ways to keep the workforce in New Mexico. She said the foundation of economic development is education but without economic development, education suffers.

    “This whole transition, everything that’s happening, the closures, that’s what is threatening our ability to keep funding education,” she said. “When you go down to what it impacts, it is the education of our people, of the Navajo people, our students.”

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  • Burkina Faso junta urges calm after French Embassy attack

    Burkina Faso junta urges calm after French Embassy attack

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    OUAGADOUGOU, Burkina Faso — Burkina Faso’s new junta leadership called for an end to the unrest Sunday, a day after angry protesters attacked the French Embassy and other buildings following the West African nation’s second coup this year.

    In a statement broadcast on state television, junta spokesman Capt. Kiswendsida Farouk Azaria Sorgho called on people to “desist from any act of violence and vandalism to prevent the efforts made since (Friday) night, especially those that could be perpetrated against the French Embassy or the French military base.”

    Saturday’s violence has been condemned by the French Foreign Ministry, which denied any involvement in the events unfolding in Ouagadougou, the capital.

    “We condemn in the strongest terms the violence against our diplomatic presence in Burkina Faso,” the French Foreign Ministry said late Saturday. “Any attack on our diplomatic facilities is unacceptable.”

    Anti-French sentiment rose sharply after an earlier junta announcement alleged that ousted interim president Lt. Col. Paul Henri Sandaogo Damiba was sheltering at a French military base. France vehemently denied the allegation, but soon protesters with torches thronged the perimeter of the French Embassy in Ouagadougou.

    Damiba’s whereabouts were still unknown Sunday though a statement attributed to him was posted on the Burkina Faso presidency’s Facebook page late Saturday. In it, he called on the new coup leaders “to come to their senses to avoid a fratricidal war that Burkina Faso does not need.”

    Unlike other ousted West African leaders, Damiba has yet to issue a resignation though the junta said he has been removed from power in their announcement Friday night on state television.

    The events unfolding in Burkina Faso have deepened fears that the political chaos will divert attention from the country’s unabated Islamic insurgency, a crisis that has forced 2 million people from their homes and left thousands dead in recent years.

    Damiba came to power in January promising to secure the country from jihadi violence. However, the situation only deteriorated as jihadis imposed blockades on towns and have intensified attacks. Last week, at least 11 soldiers were killed and 50 civilians went missing after a supply convoy was attacked by gunmen in Gaskinde commune in the Sahel. The group of officers led by Capt. Ibrahim Traore said Friday that Damiba had failed and was being removed.

    Conflict analysts say Damiba was probably too optimistic about what he could achieve in the short term, which raised expectations, but that a change at the top didn’t mean that the country’s security situation would improve.

    “The problems are too profound and the crisis is deeply rooted,” said Heni Nsaibia, a senior researcher at the Armed Conflict Location & Event Data Project. “It is hard to imagine that this disunity among the armed forces and the ongoing turmoil will help resolve an already extremely volatile situation.”

    He expected that “militant groups will most likely continue to exploit” the country’s political disarray.

    As uncertainty prevailed, the international community widely condemned the ouster of Damiba, who himself overthrew the country’s democratically elected president in January.

    U.S. State Department spokesman Ned Price said the United States “is deeply concerned by events in Burkina Faso.”

    “We call on those responsible to de-escalate the situation, prevent harm to citizens and soldiers, and return to a constitutional order,” he said.

    The African Union and the West African region bloc known as ECOWAS also sharply criticized the developments.

    “ECOWAS finds this new power grab inappropriate at a time when progress has been made,” the bloc said, citing Damiba’s recent agreement to return to constitutional order by July 2024.

    Still, to some in Burkina Faso’s military, Damiba was seen as too cozy with former colonizer France, which maintains a military presence in Africa’s Sahel region to help countries fight Islamic extremists. Some who support the new coup leader, Traore, have called on Burkina Faso’s government to seek Russian support instead.

    In neighboring Mali, the coup leader has invited Russian mercenaries from the Wagner Group to help with security, a move than has drawn global condemnation and accusations of human rights abuses.

    ——— Associated Press writer Krista Larson in Dakar, Senegal contributed.

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