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  • Biden administration releases data breaking down student loan relief applications by congressional district | CNN Politics

    Biden administration releases data breaking down student loan relief applications by congressional district | CNN Politics

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    CNN
     — 

    The Department of Education released a breakdown of federal student loan forgiveness applications by congressional district on Friday, providing a new window into the demographics of borrowers seeking relief across both Republican and Democratic-represented districts.

    The new data is being released as the fate of President Joe Biden’s debt relief plan remains in limbo, with the US Supreme Court set to soon hear cases challenging its legality later this month. The initiative would offer up to $20,000 of individual debt forgiveness to millions of low- and middle-income borrowers, but ongoing legal challenges have meant that no one has received relief – including millions of borrowers whose applications have already been approved.

    The White House says the plan is vital in order to provide targeted debt relief to certain federal student-loan borrowers affected by the Covid-19 pandemic. But many Republicans say that the relief will make inflation worse and argue it’s unfair to individuals who didn’t take out student loans or have already paid them off. They’ve also criticized the administration’s legal justification for issuing the relief through executive authority.

    The Department of Education received about 26 million applications for debt relief by the time a federal district court judge blocked the program in November. More than 16 million of those borrowers’ applications were fully approved and more than 40 million borrowers would qualify for the program, according to the administration.

    “Across the country, in every congressional district there is a strong desire for the Biden-Harris Administration’s one-time debt relief program,” a Department of Education official said about the new data. “In every single congressional district, at least half of eligible borrowers either applied or were deemed auto-eligible for debt relief, and that was only in the one month that the application was available before the program got blocked because of lawsuits.”

    In every congressional district, the official said, at least 30% of eligible borrowers were approved to have their debt discharged before the program was blocked. Some 81% of all applications for relief came from the bottom 80% of congressional districts when broken down by average income, the official added.

    A new Politico analysis of additional zip code data from the department obtained though a public records request also shows that borrowers living in lower-income areas applied for relief at a higher rate compared to those who live in wealthier neighborhoods, and most applications came from places where the per-capita income is under $35,000. Non-White majority zip codes accounted for more forgiveness applications per capita than majority-White zip codes.

    Friday’s data build on earlier numbers released by the Department of Education which showed a state-by-state breakdown of student loan forgiveness applications, which were published shortly after independent auditors questioned the estimated cost of the program.

    The the latest release coincides with the Supreme Court planning to hear two cases pertaining to Biden’s student loan forgiveness program later this month, including one from several Republican-led states.

    Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina say that the Department of Education did not have the legal authority to issue such a cancellation. They argue that it violates the separation of powers and that Biden is using the pandemic as a pretext to mask his true goal of fulfilling a campaign promise to erase student-loan debt.

    They put forward several theories that they say allow them to get into court to challenge a program they argue unlawfully invokes Covid “to assert power beyond anything Congress could have conceived.”

    Another case being heard by the high court this month was brought by two individual borrowers – Myra Brown and Alexander Taylor – who are not qualified for full debt relief forgiveness and who say they were denied an opportunity to comment on Education Secretary Miguel Cardona’s decision to provide targeted student loan debt relief to some.

    Earlier this month, 126 House Republicans – led by Education and the Workforce Committee Chairwoman Virginia Foxx of North Carolina and South Carolina Rep. Jeff Duncan – filed an amicus brief opposing the debt forgiveness effort.

    According to the White House data, in Foxx’s district, approximately 61% of borrowers, some 46,300 people, applied or were automatically eligible for relief. In Duncan’s district, about 59% of borrowers, 51,400 people, applied or were automatically eligible for relief.

    A number of members in Republican leadership, including Majority Leader Steve Scalise, Majority Whip Tom Emmer, Conference Chair Elise Stefanik and Policy Committee Chair Gary Palmer also signed onto the brief.

    House Speaker Kevin McCarthy did not sign onto the brief, but he has been critical of the president’s plan.

    McCarthy’s home state of California, the most populous state in the nation, has 2.3 million people who have applied or were automatically eligible for relief – the most out of any state. Approximately 60% of borrowers in the speaker’s district applied or were automatically eligible for relief, with 31,600 borrowers already fully approved for relief out of 49,800 who have applied or were automatically eligible.

    Representatives for Foxx, Duncan, Scalise, Emmer, Stefanik, Palmer and McCarthy did not respond to CNN’s request for comment on the new data.

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  • China’s property crash is prompting banks to offer mortgages to 70-year-olds | CNN Business

    China’s property crash is prompting banks to offer mortgages to 70-year-olds | CNN Business

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    Hong Kong
    CNN
     — 

    The property market in China is so depressed that some banks are resorting to drastic measures, including allowing people to pay off mortgages until they are 95 years old.

    Some banks in the cities of Nanning, Hangzhou, Ningbo and Beijing have extended the upper age limit on mortgages to between 80 and 95, according to a number of state media reports. That means people aged 70 can now take out loans with maturities of between 10 and 25 years.

    China’s property market is in the midst of a historic downturn. New home prices had fallen for 16 straight months through December. Sales by the country’s top 100 developers last year were only 60% of 2021 levels.

    Analysts say the new age limits, which aren’t yet official national policy, aim to breathe life into the country’s moribund property market while taking into consideration China’s rapidly aging population, said Yan Yuejin, a property analyst at E-House China Holdings, a real estate services firm, in a recent research note.

    “Basically, it’s a policy tool to stimulate housing demand, as it can alleviate the debt payment burden and encourage home buying,” he added.

    The new mortgage terms are like a “relay loan.” If the elderly borrower isn’t able to repay, his or her children must carry on with the mortgage, he said.

    Last month, China reported that its population shrank in 2022 for the first time in more than 60 years, a new milestone in the country’s deepening demographic crisis with significant implications for its slowing economy. The number of people aged 60 or above increased to 280 million by the end of last year, or 19.8% of the population.

    The mortgage borrower’s age plus mortgage length should not usually exceed 70 years, according to previous rules published by the banking regulator. China’s average life expectancy is around 78.

    The China Banking and Insurance Regulatory Commission hasn’t commented publicly about the new terms.

    But bank branches across the country are setting their own terms on these multi-generational loans.

    According to the Beijing News, a branch of Bank of Communications in the city said borrowers as old as 70 can take out home loans lasting 25 years, which means the upper age limit on its mortgages has been lifted to 95.

    But there are also prerequisites: The mortgage needs to be guaranteed by the borrower’s children, and their combined monthly income must be at least twice the monthly mortgage payment.

    Separately, a branch of Citic Bank has extended the upper age limit on its mortgages to 80, the paper said, citing a bank client manager.

    Calls to the Beijing branches of Citic Bank and Bank of Communications were not answered.

    Hong Hao, chief economist at Grow Investment Group, said this was a “drastic” measure and “could be a marketing gimmick to attract the elderly to pay [mortgages] for the younger generation.”

    Yan from E-House said the main beneficiary of the move might not be the elderly, but middle-aged borrowers between 40 and 59. Under the extended payment cutoff age, those people could get a mortgage for 30 years — the maximum length allowed in China.

    Compared with previous terms, it means those borrowers could pay less each month.

    “It is obviously a way to alleviate the debt payment burden,” said Hong.

    According to calculations by E-House, if a bank extends the upper age limit to 80, borrowers aged from 40 to 59 can get 10 additional years on their mortgages. Assuming their mortgage is one million yuan ($145,416), then their monthly payment can be reduced by 1,281 yuan ($186), or 21%.

    Chinese households have grown reluctant to purchase new homes in the past year, as the now-defunct Covid curbs, falling home prices and rising unemployment have discouraged would-be buyers. Last summer, protests that erupted in dozens of cities were staged by people refusing to pay mortgages on unfinished homes, dealing a further blow to market sentiment.

    Authorities have rolled out a flurry of stimulus measures to try to revive the housing market, including several cuts to lending rates and measures to ease the liquidity crisis for developers — so that they can resume stalled construction and deliver pre-sold homes to buyers as quickly as possible.

    Other than Beijing, some banks in Nanning, the provincial capital of Guangxi province, have raised the upper age limit on mortgages to 80, according to the city’s official newspaper Nanguo Zaobao.

    In the eastern cities of Ningbo and Hangzhou, several local lenders are advertising age limits of 75 or 80, a relaxation from previous rules, according to reports by government-owned Ningbo Daily and Hangzhou Daily.

    “If the applicant is too old to meet the loan requirement, they can have their children as the guarantor,” a lender was quoted as saying.

    But Wang Yuchen, a real estate lawyer at Beijing Jinsu Law Firm, warned such mortgages were “risky.”

    It’s understandable that many cities are trying to revive their housing markets by reducing the monthly debt payment and enlisting more elderly people into the pool of home buyers, he said in a written commentary on his WeChat account.

    “But the elderly have relatively poor repayment ability. On the one hand, it could affect their quality of life in old age, as they continue carrying the mortgage debt mountain and work for the bank until the last moment of their lives,” he said. “On the other hand, the associated risks may be transferred to their children, increasing their financial pressure.”

    “For some home buyers, choosing this way to purchase a house is probably because of their lack of funds. But it’s risky to do so at this time,” he said, adding that the property market is in a structural downturn and the government is still working to curb speculation.

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  • Inflation pushes up mortgage rates for second week in a row | CNN Business

    Inflation pushes up mortgage rates for second week in a row | CNN Business

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    Washington, DC
    CNN
     — 

    Mortgage rates climbed higher for the second consecutive week, following four weeks of declines. Inflation is running hotter, making rates more volatile, with the expectation that they will move in the 6% to 7% range over the next few weeks.

    The 30-year fixed-rate mortgage averaged 6.32% in the week ending February 16, up from 6.12% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 3.92%.

    After climbing for most of 2022, mortgage rates had been trending downward since November, as various economic indicators indicated inflation may have peaked. But a stronger-than-expected jobs report and a Consumer Price Index report that showed inflation is only moderately easing suggest the Federal Reserve could continue hiking its benchmark lending rate in its battle against inflation.

    Inflation is keeping mortgage rates volatile, said Sam Khater, Freddie Mac’s chief economist.

    “The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing,” said Khater. “Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.”

    The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.

    Investors are digesting the latest economic data, said George Ratiu, Realtor.com manager of economic research.

    The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

    “While the Fed signaled that it will continue to raise rates this year, the moves are expected to come in 25 basis point increments, a less aggressive tightening than what we saw in 2022,” said Ratiu. “The central bank is acknowledging that it sees its monetary actions having a tangible effect on inflation. The CPI data out this week seems to confirm the bank’s views.”

    At the same time, he said, many companies expect the economy will enter a recession as a result of the Fed’s rate hikes, even in the face of data pointing to continued resilience.

    “This expectation is becoming more visible in the growing number of companies resorting to layoffs as a hedge against a potential economic slowdown,” he said. “People who are laid off pull back on spending, and even those who are still employed may begin to do the same due to worries about losing their job, thus potentially sending consumer spending into a downward spiral.”

    For home buyers, the cost of financing a home is expected to go up.

    Already, rates have been climbing in recent weeks, leading to a drop in mortgage applications. Last week, applications fell 7.7% from one week earlier, according to the Mortgage Bankers Association.

    Buyers are proving to be interest rate sensitive, according to MBA.

    “Purchase applications dropped to their lowest level since the beginning of this year and were more than 40% lower than a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Potential buyers remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.”

    Mortgage rates are expected to move in the 6% to 7% range over the next few weeks, said Ratiu.

    For housing markets, he said, “the rebound in rates translates into higher mortgage payments, adding pressure on homebuyers.”

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  • Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN

    Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN

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    Lubbock, Texas
    CNN
     — 

    One of the largest universities in Texas is now reviewing its hiring procedures after one department closely scrutinized candidates over their knowledge of diversity, equity and inclusion, more commonly known as DEI.

    “We could see that this could be viewed as possibly exclusionary,” Texas Tech President Lawrence Schovanec said in an interview with CNN. “And so we wanted to step back and review the whole process.”

    The biology department at Texas Tech University – set in deeply conservative West Texas – asked faculty candidates in 2021 to submit statements on their commitment to DEI. Some candidates received negative notes if their answers were deemed insufficient, such as not knowing the difference between “equality” and “equity.”

    The process, which came to light earlier this month, prompted swift conservative backlash against the storied institution, with critics decrying such DEI screenings as litmus tests that discriminate based on ideology. The term DEI has become the latest target among conservative politicians in the recent era of racial reckoning, echoing the heated debates over critical race theory in schools.

    DEI programs have become commonplace in the worlds of business, government, and education to promote multiculturalism and to encourage success for people of all races and backgrounds. But they’ve also become a focal point of those who describe them as another example of extreme political correctness.

    In Florida, Republican Gov. Ron DeSantis said earlier this month he intends to ban state universities from spending money on DEI initiatives. “We want education, not indoctrination,” he said at an event in Jacksonville.

    And in Texas, Republican Gov. Greg Abbott this month issued a memo to state agencies and universities asserting that using DEI as a screening tool is illegal. “When a state agency adjusts its employment practices based on factors other than merit, it is not following the law. Rebranding this employment discrimination as ‘DEI’ does not make the practice any less illegal,” the memo said.

    Schovanec said the school’s lawyers insist the biology department’s actions were not illegal, but the university is ending efforts that use DEI as a screening tool for faculty while it undergoes a review of its hiring practices campuswide.

    A group called the National Association of Scholars first uncovered the situation at Texas Tech by obtaining DEI-specific notes and documents from the biology department’s hiring process through open records requests. The group published the roughly 100 documents online, along with an op-ed for the Wall Street Journal, called “How ‘Diversity’ Policing Fails Science.”

    The DEI portion was just one component of screening candidates in the biology department, according to the university. Each applicant was asked to submit a curriculum vitae, three representative publications, separate statements of research and teaching interests, three potential referees, and “a diversity statement that addresses any past contributions to diversity, equity, and inclusion and outlines plans and actions for advancing DEI” at Texas Tech. Finalists were also interviewed by a DEI committee.

    According to the documents, candidates were flagged for being “reluctant” to answer questions about DEI or not having a “good grasp” of the concept. Under the “weaknesses” for one candidate, it was noted the candidate repeatedly used the pronoun “he” when talking about professors. The same candidate was “red-flagged” and hiring committee members wrote they had “reservations about sending him into a large, diverse undergrad classroom with his current understanding and strategies.”

    Another candidate’s weakness was listed as: “Mentioned that DEI is not an issue because he respects his students and treats them equally.”

    While the names of the candidates in the documents were redacted, Texas Tech University confirmed to CNN that some of the candidates featured in the documents were hired and not all of the positions have been filled yet.

    Steve Balch is a former Texas Tech professor and founder of the National Association of Scholars, which has done considerable research on DEI efforts in universities to illustrate what it sees as an impediment to academic freedom.

    “My quarrel isn’t with people who think diversity, equity and inclusion are good things,” he told CNN. “My argument and the argument of the NAS is turning them into dogma and then using them to vet faculty members, graduate students, undergraduate students – creating aversive environment in which you feel you have to swear fealty to a particular creed. I think that’s wrong.”

    The issue at Texas Tech also came up in a state Senate hearing on February 8. Sen. Joan Huffman questioned Texas Tech’s chancellor Tedd Mitchell, saying she was “concerned and confused” over the incident.

    “I do not believe in litmus tests of any type,” Mitchell said. “It’s no more appropriate to ask somebody about their position on DEI than it is to ask them if they’re a Christian or a Muslim. When we find out something like that has occurred, we stop it.”

    Schovanec recognizes that Tech is in conservative part of a conservative state with many key conservative stakeholders, donors, and legislators involved in school funding.

    “We have to be pragmatic in acknowledging issues that are being raised,” he said. “Our legislators are responding to their constituents. And in this country right now, education has many challenges.”

    He stressed the importance of diversity at the school, which has its own DEI division. According to Texas Tech, 46% of this year’s incoming class are students of color, and 30% of faculty are faculty of color.

    “So we’re totally committed to a diverse campus community, but those hiring practices could present the perception that certain candidates would be excluded based on their ideological views, as opposed to the real excellence related to that discipline and the ability to address the priorities of our mission here,” he said.

    Schovanec said the school needs more diverse faculty, and he acknowledged that some prospective candidates might see the school’s recent move to end DEI screenings and question Tech’s commitment to diversity.

    “Faculty and students have to judge us by our actions. Do we support them? Do we create an environment here where they feel they belong and this is a place where they can thrive? That’s a much bigger issue than certain elements of a hiring process,” he said “But that is a challenge that we have.”

    Paulette Granberry Russell, president of the National Association of Diversity Officers in Higher Education, said the political firestorm over the incident at Texas Tech is simply an “attempt to fuel the base” among those who don’t agree with longstanding efforts to increase diversity.

    She’s concerned that DEI will follow the same path as critical race theory, or CRT, and become a term that’s twisted and misrepresented for political purposes.

    “It’s demonizing efforts, not only within higher education, but I think within this country to create a more equitable, just United States,” she said. “On some levels it’s misappropriating the work that is being done and using it as a basis for saying we’re discriminating against others.”

    Granberry Russell said she wants people to understand the nuance of DEI and that it’s designed to increase opportunities for people who have been historically marginalized or not well represented in higher education or the workforce.

    “My hope would be that as we begin to think more broadly about inclusion, that people will better understand this is not a situation where some are intending to take access away, but to expand access,” she said.

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  • Amazon’s Zoox robotaxi drives on public roads in California for the first time | CNN Business

    Amazon’s Zoox robotaxi drives on public roads in California for the first time | CNN Business

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    London
    CNN
     — 

    Amazon’s Zoox driverless transportation company has started testing its robotaxi on open public roads — with employees on board, for now.

    The company said Monday that it conducted an initial run of its shuttle service for workers at its headquarters in Foster City, California on February 11, a key step in its efforts to make autonomous vehicles widely available.

    “With the announcement of the maiden run of our autonomous employee shuttle, we are adding to the progress this industry has seen over the last year and bringing Zoox one step closer to a commercialized purpose-built robotaxi service for the general public,” Zoox CEO Aicha Evans said in a statement.

    Full-time employees will now be able to travel in the self-driving taxi on the route between Zoox’s two main office buildings. The vehicle can carry as many as four people at a time and drive at speeds of up to 35 miles per hour.

    The startup said its robotaxi — which underwent “rigorous” testing on private roads and has received necessary approvals from the California Department of Motor Vehicles — can handle left- and right-hand turns, traffic lights, pedestrians, vehicles and other potential obstacles on the journey.

    Zoox, which was founded in 2014 and purchased by Amazon in 2020, is unique in its approach to designing electric self-driving vehicles.

    Most autonomous cars under development resemble those currently on the road. But Zoox has ditched the steering wheel and brake pedal, claiming those features are unnecessary when there’s no human driver. Seats are designed to face each other to facilitate conversation between passengers.

    Google, General Motors and other tech and transportation companies have poured billions of dollars into self-driving vehicles for more than a decade with the promise that they would deliver improved safety and convenience for riders. Yet some evangelists have abandoned their efforts in recent months, with high costs and elusive profits becoming harder to stomach as the economy slows.

    In October, Ford and Volkswagen, two of the world’s largest automakers, shut down joint efforts to develop self-driving taxis through a venture called Argo AI.

    Ford CEO Jim Farley said at the time that he’s still “optimistic” about a future for fully self-driving cars, “but profitable, fully autonomous vehicles at scale are a long way off.” The company wouldn’t necessarily have to create the technology itself, he added.

    — Matt McFarland contributed reporting.

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  • You’ve been laid off. Here’s what to post on social media, and what to leave out | CNN Business

    You’ve been laid off. Here’s what to post on social media, and what to leave out | CNN Business

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    New York
    CNN
     — 

    If ever you’ve been swept up in a mass layoff, among the many unwelcome tasks on your new to-do list is how and when to tell people you lost your job.

    Often, the go-to place to alert your professional network has been social media like LinkedIn, Twitter, Instagram, Facebook and others.

    But the way you deliver the message matters if your goal is to set yourself up well for new opportunities.

    Take a little time before posting: You don’t need to go public right away.

    “Take time to digest the fact that you no longer have a job,” said career coach Aneri Desai, who works primarily with immigrants. “Take your time to understand your situation.”

    If you’re upset, tell your partner, your friend or your pillow. Just don’t post your fury or bitterness online.

    Consider a “soft” announcement first: If you’re not sure yet what you’re going to do — or even whether you want to stay in the same career — you can put up an initial “soft” post just to let people know your job was eliminated, Desai noted. It’s okay to say “Not sure yet what my next move will be, but stay tuned. I will reach out when I’m clearer on next steps.”

    This can be an especially useful move if your company’s layoffs are making headlines and you’re being bombarded with messages from friends and colleagues asking if you were affected.

    Keep it short: Whether you’ve worked at a place for five years or 25 years, you could probably write a book about your experiences.

    But please don’t. Shorter is best — a few paragraphs at most. “Don’t use all the characters you can. You want people to read it,” said career coach Marlo Lyons, author of “Wanted: A New Career.”

    Gratitude is good, but also focus on your accomplishments: If genuine, express appreciation for your mentors and colleagues, and the opportunities you had at your job. But don’t spend most of your post thanking people, Desai said.

    “So many people put the spotlight on ‘how lucky I was to work with this team’ but they miss out on giving credit to themselves,” Desai said. “Toot your horn.”

    By that, she means it’s important to note some of the big ways you added value to your company: for example, how you automated and expedited the claims process at your employer, making the experience easier and faster for the 50,000 clients the company served last year.

    Be specific about what you want and your skills: When you are ready to look for a new job and receive help from your network or hear from recruiters, your post should be “very explicit,” Lyons said.

    Detail the hard and soft skills you will bring to a new employer. Specify which field or set of related fields you want to be in ( like sales, account management, business development); what role titles you’re interested in (e.g., vice president-level positions, senior manager); whether you’d prefer to work remotely or hybrid; and any other details that will help people help you.

    Extend the reach of your post: You want as many people to see your post as possible.

    So you might tag it #openforwork, a hashtag often used on LinkedIn, Desai suggested.

    You also might tag people whom you are thanking in your post. But this may not be the right move for everyone. If there’s a risk you’ll leave out someone who has been especially helpful to you — or conversely, if you’re intentionally not tagging your current boss — “that may leave a negative impression,” Lyons said. In that case, better to reach out privately to the individuals you want to thank and instead invite anyone reading your post to “please comment for reach,” she suggested.

    Keep it upbeat: If you’re financially freaked out, don’t say so, Lyons said.

    You don’t want to give the impression that you’ll take the first job that comes alone.

    “Companies want you to want them — not just for you to take the job because you have to,” Lyons said. “It’s okay to say you’d like a job sooner rather than later. But be careful not to appear desperate.”

    Be consistent across platforms: Chances are you may announce your layoff on more than one social platform. So be consistent in your message. You don’t want to put out a very professional post on, say, LinkedIn but then launch an angry tweetstorm on Twitter.

    “[Before] someone goes to hire you,” Lyons said, “they will read your posts.”

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  • Elon Musk donated $1.9 billion of Tesla stock to charity last year | CNN Business

    Elon Musk donated $1.9 billion of Tesla stock to charity last year | CNN Business

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    New York
    CNN
     — 

    Tesla CEO Elon Musk gave 11.5 million shares of his stake in the electric automaker to an undisclosed charity last year, shares worth about $1.9 billion at the time they were donated.

    The donation would make him the second largest charitable donor in 2022, according to a ranking of the Chronicle of Philanthropy, which was compiled before Musk’s filing. The Chronicle’s ranking lists Bill Gates as No. 1 with $5.1 billion in donations, followed by Michael Bloomberg at $1.7 billion.

    Musk’s net worth at the end of 2022 stood at $137 billion, according to Forbes’ real time billionaire tracker, so the $1.9 billion represented about 1.4% of his net worth at that time.

    Musk’s 2022 donations are down from the estimated value of his donations reported for 2021, when he reported that he had given 5 million Tesla

    (TSLA)
    shares, then worth an estimated $5.7 billion, at the end of that year. A three-for-one stock split in Tesla

    (TSLA)
    shares in August of last year means the number of shares he donated in 2021 was also 30% greater than his 2022 donations, on a split-adjusted basis.

    Musk’s donations in 2021 also were to an undisclosed charity. They came at a time that he had been challenged by David Beasley, the UN food program director, to donate $6 billion to battle global hunger. Beasley had said a donation of that size could feed more than 40 million people across 43 countries that are “on the brink of famine.” Musk responded on Twitter at that time if the World Food Program “can describe on this Twitter thread exactly how $6B will solve world hunger, I will sell Tesla stock right now and do it.”

    Musk’s 2021 donation of Tesla shares came soon after that exchange, but there was never any confirmation as to where the shares went to.

    The most recent donation of shares represented 1.6% of Musk’s stake in the company at the end of last year when considering both shares he held outright and the vested options he holds to purchase additional shares.

    Since the end of the year he had another 25.3 million options vest when the company achieved certain financial goals, a grant the company had already said was probable to take place. So Musk made the donation knowing that he would soon receive options to buy twice a many shares at a nominal price.

    Musk did sell a far larger portion of his Tesla stake in the last 18 months than he has donated. First he sold $16.4 billion worth of Tesla stock in 2021, with most going to to pay a large income tax bill he faced for exercising options in 2021 before they expired. Then in 2022 he sold $22.9 billion worth of Tesla shares as he raised cash for his purchase of Twitter.

    Tesla shares had their worst year on record in 2022, losing 65% of their value. The drop in share price knocked him out of position as the world’s richest person. But after a rough start to this year, they’ve rebounded nicely in 2023, rising 70% year-to-date. Given Tuesday’s closing price, the 11.5 million shares that Musk donated last year are worth $2.4 billion.

    Musk is now the second richest person on the planet, behind Bernard Arnault, the chairman of French luxury goods giant LVMH, according to an estimate by Forbes’ real time billionaire tracker, with a net worth of about $196.5 billion.

    The typical US household has a net worth of about $121,700, according to the most recent estimate from the Federal Reserve. So the $2.4 billion current value of Musk’s donations last year, compared to his current net worth, is the equivalent of that typical family donating $1,500, or just less than $30 a week.

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  • US regulator orders crypto firm to stop minting Binance stablecoin | CNN Business

    US regulator orders crypto firm to stop minting Binance stablecoin | CNN Business

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    Hong Kong
    CNN
     — 

    New York’s top financial regulator has ordered a crypto company to stop minting a major stablecoin, widening a clampdown on the embattled digital assets sector.

    Paxos, a blockchain company, announced Monday that it had been instructed by the New York State Department of Financial Services (NYDFS) to stop issuing BUSD, a Binance-branded stablecoin pegged to the US dollar.

    The firm said in a statement that it would stop issuing the token on February 21. The ones already circulating “have and always will be” backed one-to-one with US dollar reserves, it added.

    Paxos has told customers they will be able to redeem their BUSD through February 2024, with options to redeem funds in US dollars or to convert their tokens to Pax Dollar, another stablecoin issued by the company.

    Paxos also said it would “end its relationship” with Binance, the world’s largest crypto exchange. It did not give detail on why the regulator had ordered it to stop issuing BUSD.

    In a statement, the NYDFS told CNN the order was “a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance.”

    “The department is monitoring Paxos closely to verify that the company can facilitate redemptions in an orderly fashion subject to enhanced, risk-based, compliance protocols,” it said.

    BUSD is one of the world’s most popular stablecoins, with a circulation of 15.8 billion tokens, according to CoinMarketCap.

    Stablecoins are digital currencies that are designed to hold steady. They’re usually pegged to real-world assets such as gold or the US dollar.

    In a statement to CNN, Binance stressed that, although its name appeared on the coin, “BUSD is a stablecoin wholly owned and managed by Paxos.”

    “Binance licenses its brand to Paxos for use with BUSD, which is entirely owned by Paxos and regulated” by New York authorities, the exchange said.

    The BUSD news has unsettled investors. Binance suffered one of its worst-ever days in terms of withdrawals on Monday, with $873 million in net outflows, according to data provider Nansen.

    “Clearly there’s a number of traders and investors moving to take their funds off the exchange,” Andrew Thurman, Nansen’s content lead, told CNN.

    He noted that Binance had seen worse days. In December, a deluge of bad press caused investor jitters, sparking outflows of as much as $3 billion.

    This time, “investors are still trying to digest the news,” Thurman added.

    “We’re seeing some indecision from the market trying to decide if this is a case of agencies going after one bad instance of a stablecoin, or trying to shut stablecoins down entirely.”

    In its statement, Binance warned that the move to stop minting BUSD would hurt users and “only decrease” the token’s market capitalization over time.

    “Stablecoins are a critical safety net for investors seeking refuge from volatile markets, and limiting their access would directly harm millions of people across the globe,” the firm said.

    Martin Lee, a data journalist for Nansen, told CNN that Binance had few options to counter the ban.

    “Over time, the supply will drop as redemptions happen,” he said.

    But “in terms of confidence in the exchange as a whole,” Binance will likely retain users as long as customer deposits continue to be protected and users can still convert BUSD to other stablecoins, Lee added.

    Starting last year, the digital financial assets sector has been weathering a so-called “crypto winter,” sparked by the collapse of TerraUSD, an algorithmic stablecoin, in May.

    Then FTX, one of the world’s biggest crypto exchanges at the time, went bankrupt in November, deepening the crisis in the industry.

    As a result, digital asset companies are facing tighter regulatory scrutiny around the world.

    Last week, the US Securities and Exchange Commission said overseeing crypto assets was a key priority for 2023.

    The SEC also reached a $30 million settlement with cryptocurrency platform Kraken last Thursday. The agreement will force the company to unwind a program offering investment returns to US users who committed their digital assets to the company.

    That practice, known as “staking,” reflected an unregistered offer and sale of securities, the SEC alleged in a complaint.

    Hong Kong has also announced plans for new regulations. The city, which hopes to become a virtual assets hub, announced plans last month to adopt new rules for stablecoins, including licensing requirements for businesses.

    According to crypto advocates, the growing global clampdown could undermine the ecosystem for digital assets.

    — CNN’s Brian Fung contributed to this report.

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  • Japan nominates new central bank leader in possible move away from ultra-easy policy | CNN Business

    Japan nominates new central bank leader in possible move away from ultra-easy policy | CNN Business

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    Hong Kong
    CNN
     — 

    The Japanese government has nominated Kazuo Ueda to lead its central bank, in a surprise move that could pave the way for the country to wind down its ultra-loose monetary policy.

    If appointed, Ueda — a 71-year-old university professor and a former Bank of Japan (BOJ) board member — would succeed Haruhiko Kuroda, the country’s longest serving central bank chief and the architect of its current yield curve control policy (YCC). His term ends on April 8.

    Ueda’s nomination must be approved by both houses of parliament, each is currently controlled by the ruling coalition, before the government of Prime Minister Fumio Kishida can formally appoint him for a five-year term.

    Analysts believe Ueda’s appointment could increase the odds that the BOJ will exit its prolonged ultra-easy monetary policy, which is increasingly difficult to maintain at a time when inflationary pressure is rising and other central banks are hiking rates aggressively.

    “Investors reckoned that the pick of Ueda-san is a signal to pave the way [for BOJ] to exit the ultra-loose policy,” said Ken Cheung, chief Asian foreign exchange strategist at Mizuho Bank.

    “[The] chance for ending the yield curve control policy and negative interest rate[s] has been increasing,” he said, but adding that the BOJ’s monetary policy will likely stay “accommodative.”

    The yield curve control policy is a pillar of the central bank’s effort to keep interest rates low and stimulate the economy.

    Accommodative is a term used to describe monetary policy that adjusts to adverse market conditions and usually involves keeping interest rates low to spur growth and employment.

    The BOJ has implemented an ultra-easy policy since Kuroda took the reins in 2013. In 2016, after years of aggressive bond buying failed to push up prices, it introduced the yield curve control program, where it bought targeted amounts of bonds to push down yields, in order to stoke inflation and stimulate growth.

    As part of that program, the central bank targeted some short-term interest rates at an ultra-dovish minus 0.1% and aimed for 10-year government bond yields around 0%.

    But as prices rose and interest rates elsewhere went up, pressure has grown on the BOJ to wind down YCC.

    In December, the BOJ shocked global markets by allowing the 10-year government bond yield to move 50 basis points on either side of its 0% target, in a move that stoked speculation the central bank may follow the same direction as other major economies by allowing rates to rise further.

    The unexpectedly hawkish decision caused stocks to tumble, while sending the yen and bond yields soaring.

    But Kuroda later dismissed a near-term exit from his ultra-loose monetary policy.

    When local media first reported Friday that Ueda would be nominated as the next BOJ governor, the yen jumped against both the US dollar and the euro.

    “Investors interpreted the news as signaling a hawkish turn,” said Stefan Angrick, senior economist at Moody’s Analytics.

    “But it will take time for the implications to become clear,” he said. “With demand-driven price pressure still preciously scarce and stronger wage gains yet to materialize, it’s hard to see the BOJ rush towards tightening under a new governor.”

    On Friday, Ueda told reporters that he thinks “the current BOJ policy is appropriate” and “monetary easing must carry on given the current state.”

    In an opinion piece published last July in the Nikkei, Ueda warned against prematurely raising rates.

    However, in the same piece, he also noted the BOJ should prepare an exit strategy, saying that a “serious” examination is needed at some point on the unprecedented monetary easing framework, which has continued far longer than most would expect.

    “We don’t think he is expected to immediately change the BOJ’s policy stance based on his previous remarks,” said Min Joo Kang, senior economist at ING Group, in a recent research report.

    “He [Ueda] is likely to shift monetary policy only gradually and the BOJ’s data dependency – inflation and wage growth – will become more important.”

    Japan’s economy remains weak, highlighting the tough task ahead for Ueda.

    According to the latest data from Tuesday, Japan’s economy grew by an annualized 0.6% in the fourth quarter of 2022, reversing a 0.8% contraction in the third quarter. But it was much weaker than the consensus forecast of 2% expansion.

    “We believe that the modest recovery will continue this year, but today’s data support[s] the Bank of Japan’s argument that the recovery is still fragile and that easy monetary policy is needed,” said ING analysts. “The incoming new governor will find it difficult to start any normalization.”

    – CNN’s Junko Ogura contributed reporting

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  • Twitter is stumbling. Some ex-employees are launching rivals | CNN Business

    Twitter is stumbling. Some ex-employees are launching rivals | CNN Business

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    New York
    CNN
     — 

    After Sarah Oh lost her job as a human rights advisor at Twitter late last year in the first round of layoffs following Elon Musk’s chaotic acquisition of the company, she decided to join a friend in building a rival service.

    With Gabor Cselle, who previously worked at Twitter and Google, she launched T2, currently available in beta. Like Twitter, it offers a social feed of posts with 280-character limits. But the key selling point, according to Oh, is its focus on safety.

    “We really do want to create an experience that allows people to share what they want to share without fearing risk of things like abuse and harassment, and we feel like we’re really well positioned to deliver on that,” Oh told CNN.

    In the months since Musk completed his takeover, a small but growing number of services have launched or gained traction by appealing to users who are uncomfortable with the billionaire’s decisions to slash Twitter’s staff, rethink content moderation policies and reinstate numerous incendiary accounts that were previously banned, among other moves.

    The list of newer entrants in the markets includes apps like T2 and Spill created by former Twitter employees, a startup backed by one of Musk’s Twitter investors, and a service from former Twitter CEO Jack Dorsey. While some apps like T2 strongly resemble Twitter, others take a different approach.

    Last month, for example, the founders of Instagram announced Artifact, “a personalized news feed” powered by artificial intelligence, a description that quickly earned it comparisons to Twitter. In CNN’s recent test of the app, however, it resembled news reader applications like Apple News or the defunct Google Reader. Artifact displayed popular articles from large media organizations and smaller bloggers in a main feed, tailored to users based on their activity and selected interests.

    But all of these apps appear to be vying for the opportunity to scratch the itch users may feel for a news feed that isn’t Twitter — at least for as long as that itch lasts.

    “Something that we’ve heard a lot from people who are moving over from Twitter, either partially or fully, is that it is just for them a nicer experience overall,” said Jae Kaplan, co-founder of Anti Software Software club, the group that develops Cohost, a text-based social media feed similar to Twitter. The service launched publicly in June of last year, after Musk offered to buy Twitter. In November, after Musk completed the takeover, the platform saw a surge in activity, adding 80,000 users within 48 hours.

    “People have been referring to us when they do as a Twitter alternative, which I think is an important distinction from a Twitter replacement,” Kaplan said.

    Replacing Twitter, with its robust network of journalists, politicians and entertainers and sizable audience of users obsessed with real-time news, may be a challenge. While apps like Cohost have seen renewed momentum, their audiences remain a small fraction of the size of Twitter, which had more than 200 million daily active users as of last year.

    Cohost currently has 130,000 users, only 20,000 of which are what Cohost considers active users, according to Kaplan. T2 has a waitlist in the five digits, according to Oh, who says that number continues to grow. Mastodon, the most high-profile recent Twitter rival, hit 2.5 million users in November, but it has since declined to 1.4 million users, in a possible cautionary tale to other services.

    “The incumbent has the advantage of scale, and even in a situation where you have kind of a polarizing figure like Musk take over Twitter, people are realizing that the newer platforms are not nearly as effective from a one-to-many, getting your message out there,” said Tom Forte, a senior research analyst at D.A. Davidson. “Despite the fact that there may be disgruntled consumers, they’re still tweeting.”

    In November, shortly after taking over the company, Musk repeatedly claimed Twitter continued to hit “all-time high” user numbers despite the initial wave of users calling to abandon the social network. (As part of the acquisition, Musk took Twitter private and the company no longer reports user numbers in quarterly securities filings.)

    “If people leave, where do they go? By all accounts, there is no platform right now that is able to take on the function of Twitter, and nothing is really prepared for it,” said Karen North, a clinical professor at the USC Annenberg School for Communication and Journalism. “No platform has the global user base, representing people from all walks of life the way that Twitter does.”

    To complicate matters for rivals, some of the initial fury and media attention about Twitter under Musk has arguably faded in the months since the deal closed. Though controversy remains, many Twitter users may feel less urgency to jump ship today than in late October.

    Still, Mastodon founder Eugen Rochko is not worried.

    “A platform cannot continue to go viral perpetually,” Rochko recently told CNN about Mastodon’s sagging user numbers. “The cycle of media news and attention on social media just simply goes away after awhile, but behind it leaves organic growth which is what we had before November and which we still have now.”

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  • McCarthy leans on ‘five families’ as House GOP plots debt-limit tactics | CNN Politics

    McCarthy leans on ‘five families’ as House GOP plots debt-limit tactics | CNN Politics

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    CNN
     — 

    The White House and Senate Democrats have calculated that Speaker Kevin McCarthy won’t have enough votes to raise the national borrowing limit and will end up caving to their demands to avoid a first-ever debt default – with no strings attached or any conditions whatsoever.

    House Republicans are trying to prove them wrong.

    Behind the scenes, McCarthy is beginning to chart out a new strategy to ensure the House GOP can muster 218 votes to raise the national debt ceiling and tie that to an array of cuts to federal spending, as the standoff with the White House shows no signs of easing.

    In the speaker’s office last week, leaders of the so-called “five families” of the House GOP – representing the various ideological wings of the conference – met for the first time to discuss the range of possibilities and to kick around ideas about raising the debt limit, according to multiple attendees. McCarthy didn’t attend the session but enlisted a close confidant, Louisiana Rep. Garret Graves, to lead the discussions, with top committee chairmen and other members of leadership also participating. Talks are expected to pick up when the House returns from a two-week recess after the Presidents Day holiday.

    The goal, according to multiple Republicans, is to begin to develop a consensus about a proposal that can pass the House with GOP votes and strengthen their conference’s negotiating position as Washington stares into a looming debt default this summer. The belief among Republicans is such a plan would force the White House and Senate Democrats to back off their insistence that they will only accept a “clean” debt ceiling increase without any spending cuts attached.

    The move gives a window into McCarthy’s management of his razor-thin majority, allowing his most conservative members to try to find consensus with more moderate lawmakers – replicating a dynamic that ultimately allowed him to win the speakership after a messy, 15-ballot fight. But it also is a break to how one of his predecessors, John Boehner, dealt with the debt limit the last-time the country nearly defaulted – in 2011 when many of the decisions were made by the leadership, prompting a revolt among the rank-and-file.

    The private GOP talks have been positive so far, attendees said, even as they acknowledged they are in the very early stages, weighing a range of potential budget cuts and not nearing any agreement yet.

    Rep. Patrick McHenry, the North Carolina Republican who chairs the House Financial Services Committee, said the meeting amounted to a “healthy discussion” that showed “goodwill” in an effort “to come up with an approach that unifies Republicans and enables us to unlock the rest of the legislative year.”

    “That’s the purpose of the conversation: How do you move the debt limit out of the House of Representatives?” McHenry told CNN.

    The discussions are expected to run parallel to talks between McCarthy and President Joe Biden, with the speaker making clear he believes the next step will be to continue discussions with Biden. The group could potentially help McCarthy present a GOP proposal to the president in future conversations and help vet any White House offer.

    But despite both Biden and McCarthy sounding positive after their first face-to-face encounter earlier this month, there’s been little tangible progress toward finding a deal as Democrats continue to hold firm to their demands to raise the borrowing limit with no horse-trading with Republicans.

    Republicans believe that the White House is slow-rolling Biden’s discussions with the speaker in order to ratchet up pressure to pass a clean debt ceiling increase, something McCarthy has publicly and privately rejected.

    “They say they don’t want to put the economy in jeopardy,” McCarthy told CNN when asked about the lack of progress with Biden since the last White House meeting. “I think that would be the wrong approach.”

    Behind the scenes, McCarthy has been proactive in ensuring regular communication between the five families, a nickname from the “The Godfather” of warring New York mob families who tried to maintain the peace.

    “There’s a level of trust and engagement within the five families that I have not seen in the previous four years,” said South Dakota Rep. Dusty Johnson, chairman of the Main Street Caucus, a center-right group. “We’re working really well together.”

    Rep. Dave Joyce of Ohio, who leads the pragmatic-minded Republican Governance Group, said the group meeting with Graves was “very productive, and we will continue to have those until we come up with something.”

    Another reason Republicans are eager to outline their vision: Democrats have hammered them for not having a plan – and have tried to speak for them. Indeed, perhaps the most memorable moment of Biden’s State of the Union address was when the president suggested Republicans want to cut Social Security and Medicare, eliciting jeers and boos from GOP lawmakers in the audience.

    “It’s intellectually dishonest,” Joyce said, noting that McCarthy has said repeatedly that Medicare and Social Security cuts are off the table.

    Some Democrats have speculated that they could peel off at least six House Republicans to back a so-called discharge petition – a lengthy process that forces a bill to the floor if 218 lawmakers sign on – once they get closer to a debt default and still don’t have a resolution.

    But moderate Republicans are ruling out using the discharge petition for a clean debt ceiling hike and are insisting on extracting spending cuts in exchange for raising the nation’s borrowing limit – a sign that the conference is in lockstep with McCarthy’s negotiating strategy.

    “If it’s tied to a clean debt ceiling, I wouldn’t do that,” said Rep. Don Bacon, who represents a Biden-won district in Nebraska. “The President’s got to give us some compromise.”

    The hardline House Freedom Caucus, which ended up forcing McCarthy to make key concessions to win the speakership, is one of the five groups taking part in the debt ceiling talks.

    Rep. Scott Perry, a Pennsylvania Republican who chairs the group and attended the five families meeting, said there’s a consensus on this point: “We’re not going to accept ‘no negotiation,’” a reference to the White House’s position. “And there’s not going to be a clean debt ceiling, alright?”

    South Carolina Rep. Ralph Norman, also a member of the hardline group, agreed.

    “We got to get 218,” he said of the early talks. “We’re trying to get the framework. We want all buy in.”

    Norman argued that it didn’t make sense for the groups to publicly float competing proposals, even though one of the so-called families, the Republican Study Committee, has outlined its preferred approach, although the group did not lay out specific cuts or spending proposals.

    “There’s no sense in us, one group putting something out, another group puts something out,” Norman said.

    Norman, who initially opposed McCarthy’s speakership bid but ultimately backed him, said the California Republican’s effort to build consensus has helped his standing within the conference.

    “To his credit, Kevin has done a good job of getting us all together and getting us on the same page,” Norman said.

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  • Super Bowl LVII: Who scored and who fumbled on TV’s biggest stage | CNN

    Super Bowl LVII: Who scored and who fumbled on TV’s biggest stage | CNN

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    CNN
     — 

    Big celebrities, but often, not-so-great ads.

    The Super Bowl presents a formidable challenge to advertisers, trying to justify the giant price tag for 30-second spots (as much as $7 million each, per Variety, for ads between kickoff and the final gun) by coming up with campaigns that feel as big as the game.

    This year, the scales tipped heavily toward celebrity talent – in several cases, thrown together in incongruous bunches – in commercials that were loud but frequently didn’t make a whole lot of sense.

    For starters, it helps when the talent has some kind of logical connection to the product, or at least figures into the creative in a way that advances that message. Being cute for its own sake can be fine, but it’s seldom particularly memorable.

    Using that logic, bravo to Rakuten, a shopping site, for enlisting Alicia Silverstone to reprise her “Clueless” role as the shopping-obsessed Cher, which she slid into like an old private-school uniform; and thumbs down to a celebrity-studded spot for Michelob Ultra featuring Serena Williams, Brian Cox and a host of others in an odd tribute to “Caddyshack.”

    Then again, this year’s crop of beer ads were mostly flat, especially given the high bar that Budweiser has customarily set for Super Bowls past. The main exception would be the Miller-Coors-Blue Moon spot, which was fun, if a little confusing.

    As was noted before the game, crypto ads that sought to make a splash at Super Bowl LVI sat out this year’s showcase, a reminder that newer product categories brave entering the Super Bowl derby at their own peril.

    Where were the other highlights, which were outnumbered (as usual) by the middling or low ones? Here’s a snap-decision breakdown of who scored and who fumbled on TV’s biggest stage. While this doesn’t include every spot that aired, if an ad featured four or more celebrities, assume it leaned toward the “loser” column.

    Movies: The movie business hasn’t rebounded to pre-pandemic levels, but the number of ads for upcoming blockbusters (and hoped-for blockbusters) felt like a collective vote of confidence in theatrical movie-going. Hollywood will likely never completely bounce back in the streaming age, but the studios appeared to serve notice that they’re not giving up without a fight.

    Of that roster of titles, give the nod to “The Flash,” which should stoke enormous interest in that Warner Bros. title (like CNN, a unit of Warner Bros. Discovery), and put the focus on the film instead of star Ezra Miller’s off-screen issues. Give honorable mention to “Indiana Jones” and “Creed” among the sequels, which also included pregame spots for “Transformers” and “Guardians of the Galaxy.” Also featured: “Air,” based on Michael Jordan’s Nike deal.

    Ram: There were again several electric-car ads, but give Ram the gold medal for its cheeky double-entendre about “premature electrification.”

    Rakuten: Would Silverstone waste this kind of opportunity to bask in a little of that “Clueless” nostalgia? As if.

    T-Mobile: Bradley Cooper and his mother were pretty adorable, especially when she told him that while he’s been nominated for stuff, he hasn’t won anything. Much better, alas, than its John Travolta “Grease” homage.

    Pepsi Zero Sugar: Steve Martin and Ben Stiller gave mini-classes on acting. So, do they really drink this stuff? Probably not, but it was fun to watch them pretend, and enhanced by the one-two punch of it.

    PopCorners: Just the idea of a “Breaking Bad” reunion gets high marks (plus the line “We don’t eat our own supply”), even if the snack-food product might not have been the ideal vehicle for it.

    Farmer’s Dog and Amazon: Two winners about our canine companions: Watching a dog’s life unfold, and thinking about losing one, served as one of the few genuine tearjerkers of the day; and on a lighter note, getting a destructive pooch a pal, via Amazon.

    CrowdStrike: If only the cyber-security company had been around during the Trojan War. A great visual idea.

    Google: Another spot that brought together unlikely celebrities – Amy Schumer, Doja Cat and NBA star Giannis Antetokounmpo – but in a clever demonstration of how its pixel product can “fix” old photos.

    Kia. If you forget your baby’s binky, this is definitely the car for you.

    Disney: Marking its 100th anniversary, the studio ran a spot to demonstrate the sweeping depth of its content, and its intricate hold on childhood memories.

    Kevin Burkhardt and Greg Olsen: After the histrionics of Fox’s pregame show (never mind the issues with the sound being off), the announcers – handling their first Super Bowl – rose to the occasion, with a solid call that identified the problems with the field, debated a “game-altering penalty” at the end; didn’t get in the way of the action and reminded everyone this was, after all, a football game.

    General Motors and Netflix: GM teamed with Netflix shows to push its EV cars, with Will Ferrell as the guide through shows like “Bridgerton” and “Stranger Things.” Not great, but at least it felt big and inventive.

    Dunkin’: Ben Affleck (mostly) and Jennifer Lopez brought some celebrity sizzle to the idea of a star moonlighting at a donut store.

    Paramount+: The advantage of featuring Sylvester Stallone in a streaming show, apparently, is one more star to help promote “Paramount Mountain.”

    Alicia Silverstone (left) reprised her

    HeGetsUs.com. The ads for this evangelical campaign were certainly arresting in reminding people, say, that Jesus was a refugee, and to love everyone. Yet despite being one of the few ads about something that played Sunday, the goal of its message seemed muddled, a perception reinforced by details about the group behind it.

    Workday: Rock stars differentiate between calling someone a rock star and actually being one. A fun idea, indifferently executed.

    Etrade: Nobody ever went wrong with talking babies, but that said, talking babies is a pretty tired gimmick.

    Weather Tech: A solid “Made in America” pitch.

    Beer ads: Miles and Keleigh Sperry Teller seem like a cute couple to have a beer with. What the ad didn’t do is make a case for that being a Bud Light. Ditto for Budweiser connecting a six-pack of Bud to “Six Degrees of Separation” (or Kevin Bacon), which had the right vibe to it but felt like a bit of a stretch.

    Booking.com: Hey, who couldn’t use a vacation? But why are we watching Melissa McCarthy sing about it?

    Doritos: Jack Harlow, Missy Elliott and Elton John pushing triangles? Another case of trying to be too hip and just looking square.

    Downy Unstoppables: Danny McBride likes it so much he’d change his name. But the whole thing was pretty McSilly.

    DraftKings: Kevin Hart and a host of celebrities appeared, but will it be remembered as a great Super Bowl ad? Don’t bet on it.

    Hellmann’s: Jon Hamm and Brie Larson in a refrigerator? Yes, mayonnaise goes with ham and Brie, but as Hamm said at the end, “That’s weird.”

    Remy Martin: Serena Williams’ speech was stirring, but the product was a complete afterthought.

    Planters: A Friars Club-style celebrity roast of Mr. Peanut felt like a weak attempt to butter up consumers.

    Jeep: The “Freedom is electric” tag line worked. The CGI dancing animals, not so much.

    Pringles: Another version of the hand stuck in the can campaign? That just feels like their creative is stuck in the ’90s.

    Squarespace: Adam Driver is already pretty overexposed, but that commercial – featuring dozens of him – made him really overexposed.

    Tubi: Someone should have talked the ad agency and marketing team out of going down that bizarre rabbit hole.

    M&Ms: The only real comment to that Maya Rudolph spot was “???”

    Limit/Break: Yes, saw the bar code. No, did not scan now.

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  • Super Bowl ad slams Tesla’s ‘Full Self-Driving’ tech | CNN Business

    Super Bowl ad slams Tesla’s ‘Full Self-Driving’ tech | CNN Business

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    New York
    CNN
     — 

    Electric carmaker Tesla will face a hit on Super Bowl Sunday, when an ad will play showing the alleged dangers of its Full Self-Driving technology.

    The commercial, which will be aired in Washington, DC, Austin, Tallahassee, Albany, Atlanta and Sacramento does not paint Tesla in the best light. The ad is part of a multimillion dollar advertising campaign by The Dawn Project. Its founder, Dan O’Dowd, is a California tech CEO who has dedicated millions of his own money (and a failed US Senate race) to the cause.

    The ad cost $598,000, a Dawn Project spokesperson told CNN.

    It shows a Tesla Model 3, which allegedly has the Full Self-Driving mode turned on, running over a child-sized dummy on a school crosswalk, and then a fake baby in a stroller, in a series of tests by the Dawn Project. In the ad, the car swerves into oncoming traffic, zooms past stopped school buses, and cruises through “do not enter” signs.

    “Tesla’s Full Self-Driving is endangering the public,” the ad said. “With deceptive marketing and woefully inept engineering.”

    The Dawn Project says it wants to make computer-controlled systems safer for humanity, shooting its own videos as tests of Tesla’s alleged design flaws. In August, O’Dowd published a video showing a Tesla plowing into child-sized mannequins. Some Tesla fans posted their own videos in defense, using their own dummies or even their own children – YouTube has taken down several test videos involving actual children, citing safety risks.

    O’Dowd received a cease and desist letter from Tesla over the video, claiming he and the Dawn Project were “disparaging Tesla’s commercial interests and disseminating defamatory information to the public.”

    O’Dowd responded to the cease-and-desist with a 1,736-word post in which he pushed back at the suggestion his posts were defamatory, defended his tests and returned barbs from Musk and some Tesla supporters.

    O’Dowd, who sold software to the military, is undertaking a campaign of millions of dollars to ban Tesla’s Full Self-Driving feature. He is running national ads and posting online videos displaying the possible dangers of Musk’s technology. He also ran an unsuccessful one-issue campaign for the US Senate on the same message.

    Though officially in beta mode, Full Self-Driving is available to any user in North America who wants to purchase the $15,000 feature.

    Tesla did not immediately respond to CNN’s request for comment. Tesla’s “Full Self-Driving” system is intended to someday work on city streets, but despite its wide rollout, is still officially in a developmental “beta” program. No car for sale on the market is yet able to drive itself.

    Autopilot is a suite of driver-assist features, while Full Self-Driving steers the car on city streets, but could also stop for traffic signals and make turns.

    Tesla contends it is not aware of any ongoing government investigation that has concluded any wrongdoing occurred, and said its Autopilot, with its automated steering designed to keep a car within a lane, is safer than normal driving.

    “Tesla’s reckless deployment of Full Self-Driving software on public roads is a major threat to public safety. Elon Musk has released software that will run down children in school crosswalks, swerve into oncoming traffic and hit a baby in a stroller to all Tesla owners in North America,” O’Dowd said in a statement.

    Tesla said it “has received requests from the Department of Justice for documents related to Tesla’s Autopilot and FSD features” in a January 31 public filing.

    Federal investigators are looking into a Musk tweet about disabling driver alerts on Tesla’s “Full Self Driving” driver assist system, joining several other National Highway Traffic Safety Administration probes.

    On December 31, Musk replied to a tweet by @WholeMarsBlog which said “users with more than 10,000 miles on FSD Beta should be given the option to turn off the steering wheel nag.”

    “Agreed, update coming in Jan,” Musk replied.

    The National Highway Traffic Safety Administration announced last summer it was escalating its Tesla probe to an “engineering analysis,” a step toward seeking a recall. NHTSA first investigated Tesla’s driver-assist technology after reports Autopilot-engaged vehicles were crashing into emergency vehicles stopped at the scene of earlier crashes.

    O’Dowd is the founder and CEO of Green Hills Software. Some of Musk’s defenders claim O’Dowd has a conflict of interest as one of its customers is Intel-owned Mobileye, which makes a computer chip to run driver-assisted software, the Washington Post reported.

    O’Dowd told the Washington Post Mobileye is one of his hundreds of customers and that his main motivation is safety.

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  • In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

    In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.


    New York
    CNN
     — 

    Many people don’t have the time or inclination to do deep research on stocks.

    It’s often easier to buy an exchange-traded fund that owns a basket of the top blue chips, like Apple

    (AAPL)
    , Microsoft

    (MSFT)
    and Amazon

    (AMZN)
    . Other investors like to bet on themes and memes instead of poring over a company’s financial statements and regulatory filings. Hence the recent craze for momentum stocks like GameStop

    (GME)
    and AMC

    (AMC)
    .

    But for old-fashioned investors with a little gray in their hair (and veteran business journalists like yours truly) there are other ways to find winning stocks for the long haul.

    I’ve been running stock screens using market data software, first from FactSet and now from Refinitiv, on and off during the more than 20 years I’ve worked at CNN Business. (It was CNNMoney when I first started.)

    I’ve typically done this stock picking feature in early to mid February as a Stocks We Love type of story, pegging it to Valentine’s Day. (Here’s the first one I did in 2002!) So they’ve often been littered with cheesy references to how romantic it is to find a reliable company you can count on for a long-term relationship.

    Well, investing trends have changed a bit in the past two decades. Some would argue that active investing (actually choosing individual companies) is no longer in vogue thanks to the rise of passively run index funds.

    And to be fair, the experts are right, mostly. Investors usually are better off owning an index ETF. If the goal is saving for retirement in particular, a diversified mix of companies is safer than trying the riskier strategy of identifying individual winners and losers.

    But you know what they say about not being able to teach an old dog new tricks? I still believe there’s value in looking for quality stocks at bargain prices. Legendary investors like Warren Buffett and Peter Lynch of Fidelity fame would likely agree.

    With that in mind, I ran one final stock screen for this Valentine’s Day. Like my past screens, I tried to find companies with strong fundamentals (solid sales and earnings growth), low levels of debt and high returns on equity. And perhaps most importantly, I screened for companies trading at a reasonable price based on their estimated earnings.

    This screen wound up identifying 33 companies that could make sense as a buy-and-hold investment. All of them generated double-digit sales growth annually over the past five years and they are all expected to report profit growth of at least 10% a year for the next few years.

    Some of the more prominent companies on the list? IT services/consulting giant Accenture

    (ACN)
    made the cut. So did software leader Adobe

    (ADBE)
    , semiconductor manufacturer Analog Devices

    (ADI)
    , chip equipment juggernaut Applied Materials

    (AMAT)
    and Venmo owner PayPal

    (PYPL)
    .

    That’s a fair amount of exposure to the tech sector. But several other non-techs made my list too.

    Auto insurer Progressive

    (PGR)
    (hi Flo!), health insurer Humana

    (HUM)
    , cosmetics retailer Ulta Beauty

    (ULTA)
    , UGG boots and Hoka sneakers maker Deckers Outdoor

    (DECK)
    and trucker JB Hunt

    (JBHT)
    met my criteria.

    As did financial services firm Raymond James

    (RJF)
    , perhaps most famous for having its name on the Tampa Bay Buccaneers stadium Tom Brady briefly called home.

    None of these stocks are likely to be moonshots that will surge because of comments that someone makes on Reddit. But they might offer a little more in the way of security and dependability. And after all, isn’t that what we all want from a long-term partner on Valentine’s Day?

    The broader market has continued to rally, in large part due to hopes that inflation pressures (and more Federal Reserve rate hikes) will soon be things of the past. But consumers are still skittish when it comes to buying more costly items.

    Meat processing giant Tyson Foods

    (TSN)
    reported disappointing results last week, largely due to a pullback in consumer demand for pricier beef. Luxury apparel retailer Capri Holdings

    (CPRI)
    , which owns the Versace, Jimmy Choo and Michael Kors brands, also posted lousy numbers.

    But shoppers still seem to be spending on more affordable goods. Pepsi

    (PEP)
    reported sales and earnings last week that topped Wall Street’s targets. Fast food giant Yum! Brands

    (YUM)
    , the owner of Taco Bell, KFC and Pizza Hut, issued solid results too.

    That could bode well for several leading consumer companies that are on tap to report earnings this week, including Pepsi competitor Coca-Cola

    (KO)
    as well as Restaurant Brands

    (QSR)
    , the parent company of Burger King, Popeyes, Tim Horton and Firehouse Subs.

    Kraft Heinz

    (KHC)
    , restaurant owner Bloomin’ Brands

    (BLMN)
    , Sam Adams brewer Boston Beer

    (SAM)
    and food delivery service DoorDash are also scheduled to release their latest results this week.

    The restaurant stocks in particular could do well.

    “Consumers continue to trade goods for services,” said Jharonne Martis, director of consumer research for Refinitiv, in a report. Martis noted that the restaurant and broader leisure sector has continued to outperform other consumer-related industries this year.

    Inflation is obviously still a concern for big consumer brands. Companies have to deal with the challenge of trying to pass on higher costs to customers without driving them away.

    That could become less of a problem though.

    The US government will report both its Consumer Price Index and Producer Price Index for January this week and economists are hoping for a further slowdown in year-over-year prices. Consumer prices rose 6.5% over the past 12 months through December, down from a 7.1% pace in November.

    “There are positive signs. Inflation has passed the peak so there is a little bit of a respite,” said Kathryn Kaminski. chief research strategist with AlphaSimplex.

    Higher prices were a problem for retailers during the holidays. Retail sales fell 1.1% in December from November, according to figures from the US government, following a 0.6% drop in November.

    But retail sales are expected to bounce back as inflation becomes less of an issue. Economists are forecasting a 0.9% increase in retail sales for January when those numbers come out later this week.

    Monday: Earnings from TreeHouse Foods

    (THS)
    , Avis Budget

    (CAR)
    , FirstEnergy

    (FE)
    , IAC

    (IAC)
    and Palantir

    Tuesday: US CPI; Japan GDP; UK employment report; earnings from Coca-Cola, Asahi Group, Marriott

    (MAR)
    . Cleveland-Cliffs

    (CLF)
    , Restaurant Brands, Suncor Energy

    (SU)
    , Airbnb, Herbalife

    (HLF)
    , GoDaddy

    (GDDY)
    and TripAdvisor

    (TRIP)

    Wednesday: US retail sales; UK inflation; weekly crude oil inventories; annual meeting of Charlie Munger’s Daily Journal Co

    (DJCO)
    ; earnings from Kraft Heinz, Lithia Motors

    (LAD)
    , Sunoco

    (SUN)
    , Sonic Automotive

    (SAH)
    , Ryder

    (R)
    , Barrick Gold

    (GOLD)
    , Biogen

    (BIIB)
    , Owens Corning

    (OC)
    , Krispy Kreme, Cisco

    (CSCO)
    , AIG

    (AIG)
    , Shopify

    (SHOP)
    and Boston Beer

    Thursday: US PPI; US weekly jobless claims: US housing starts and building permits; China housing prices; earnings from US Foods

    (USFD)
    , Lenovo

    (LNVGF)
    , Nestle

    (NSRGF)
    , Paramount Global, Southern

    (SO)
    , Hasbro

    (HAS)
    , Hyatt

    (H)
    , Bloomin’ Brands, WeWork, Applied Materials

    (AMAT)
    , DoorDash, DraftKings and Redfin

    (RDFN)

    Friday: Earnings from Deere

    (DE)
    , AutoNation

    (AN)
    , Sands China

    (SCHYF)
    and AMC Networks

    (AMCX)

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  • Hogwarts Legacy breaks record before official release, despite controversy | CNN Business

    Hogwarts Legacy breaks record before official release, despite controversy | CNN Business

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    New York
    CNN
     — 

    The world of Harry Potter is getting new life.

    Hogwarts Legacy – the new open-world video game by Avalanche and Warner Bros. Discovery, CNN’s parent company, will be released Friday, to much anticipation.

    The single-player game has been five years in the making — experts put its budget at $150 million. The game already broke a record on Twitch for being the most-watched single-player game, played by streamers who got the game early. And it’s the No. 1 pre-sale this week on gaming platform Steam.

    “Open world style games are a really a big deal in the games industry,” said Joost van Dreunen, an adjunct professor at New York University’s Stern School of Business who was formerly CEO of games market research firm Super Data Research. “The expectations are quite high not just from the consumers, but also from the game makers themselves.”

    Warner Bros. has had 20 years of experience putting out Harry Potter video games — but those were based on the movies. Not every game was a blockbuster hit, despite the fandom around the Harry Potter franchise.

    Hogwarts Legacy is based on Harry Potter but is set in the late 1800s, well before the action in the Harry Potter books take place, and opens the Harry Potter World beyond Hogwarts Castle. Players are witch or wizard avatars that complete missions to gain skills such as flying on a broom.

    “They definitely put out some big titles and worked with some big franchises, but their games have been hit and miss,” Dan Martin, general manager at videogamesnewyork says of the Warner Bros. games.

    The game’s release has been delayed twice — building excitement from Potter fans but then fizzling. Videogamesnewyork, a New York City store that sells modern and retro video games, is ordering just enough games to their store based on pre-orders.

    “We’re not over-ordering or under ordering. Only because we don’t know what to expect,” said Martin.

    Part of the game’s expectation is based on controversy surrounding Harry Potter’s creator — J.K. Rowling. The author has repeatedly made anti-trans comments, and some of the movies’ actors have spoken out against them. Some gamers also are boycotting Hogwarts Legacy over the controversy.

    “It’s not a commercial risk so much as is a cultural one,” van Dreunen said of the game’s release.

    The game features a trans character, a first for the franchise. Though the Hogwarts Legacy character Sirona Ryan does not explicitly say she is trans, dialogue in a scene suggests it: “[It] took them a second to realize I was actually a witch, not a wizard,” the character said.

    Warner Bros. Discovery said creating diverse characters was a high priority in order to encompass all people who play the games including the LGBTQIA+ community.

    The company says J.K. Rowling is not involved in the Hogwarts Legacy game. But she does stand to make licensing royalties. Some fans have been turned off to the franchise because of Rowling’s comments, others say they won’t let that get in the way of experiencing a new world of Harry Potter.

    “There was a time when I thought it was going to impact my view on the whole Harry Potter world, but I am able to separate the situation with JK Rowling with the Harry Potter world,” said Camila Rodrigues, a Harry Potter fan who says she plans to buy the game.

    Despite the controversy, gaming experts anticipate a blockbuster release — easily selling 10 million copies, according to some estimates. In some ways, the game is a re-branding opportunity for the franchise.

    “It perhaps has room to develop something new, to iterate on the existing relationship with its fan base,” said van Dreunen. “Perhaps making it into this big production video game allows the franchise to kind of save itself a little bit from the drag it’s been experiencing culturally.”

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  • ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

    ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

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    CNN
     — 

    Since the night Tyre Nichols was kicked, pepper-sprayed, punched and struck with a baton by Memphis police officers, six cops have been fired and five of them charged with murder. Seven others face internal disciplinary charges.

    Nichols died three days after the January 7 traffic stop and subsequent fatal encounter captured on video and principally involving five officers with two to six years on the job.

    The death of the 29-year-old Black man comes at a critical juncture in American law enforcement, as departments across the country – including the Memphis PD – struggle to recruit qualified officers and fill shifts, lure candidates with signing bonuses worth thousands of dollars, and at times curtail standards and training in a desperate bid to strengthen patrols amid rising gun violence, according to law enforcement experts.

    “That is a recipe for disaster,” said Kenneth Corey, a retired NYPD chief who once ran the training division. “We’ve seen it happen before. You couldn’t fill seats. You lowered standards. And now you’ve got scandal and use of force. And when you look at the individuals involved you say, we never would have hired this guy once upon a time.”

    In the weeks since authorities released video of Nichols’ brutal beating, little information has come out about the recruitment and training of the five former officers facing murder charges – Tadarrius Bean, Demetrius Haley, Justin Smith, Emmitt Martin III and Desmond Mills Jr.

    The five men were part of a now disbanded specialized street crime unit formed just over a year ago as part of the city’s strategy to combat rising violence. The SCORPION unit focused on homicides, robberies, assaults and other felonies.

    Chuck Wexler, the executive director of the Police Executive Research Forum, said Nichols’ killing raises questions about “how those officers were trained and supervised and selected.”

    “Over time you always want to look at the backgrounds of those officers – that will be important. The hiring process – that will be important,” he said. “In this case we don’t know enough yet.”

    Bean, 24, was commissioned as an officer in January 2021, personnel records show. His attorney has not responded to CNN’s requests for comment.

    Haley, 30, was commissioned as an officer in January 2021, the records show. He is a former correctional officer. His attorney has not respond to requests for comment.

    Martin, 30, joined the department in 2018, according to the records. He will plead not guilty, according to his attorney, William Massey, who said: “No one out there that night intended for Tyre Nichols to die.”

    Mills, 32, a former jailer in Mississippi and Tennessee, joined the department as a recruit in March 2017, the records show. He, too, plans to plea not guilty, said Blake Ballin, his attorney, who described Mills as “devastated” and “remorseful.”

    Memphis Police Chief Cerelyn “CJ” Davis told CNN last month that Nichols’ death was indicative of “a gap somewhere” in the specialized street crime unit.

    “We train and we retrain these officers, just like specialized units around the country,” she said. “These officers working in specialized units, you always need to make sure that the supervision is there and present.”

    On January 28, one day after the release of the video, Memphis PD announced that it had permanently disbanded the unit.

    Davis said the department was unaware of any evidence the unit had previously engaged in misconduct but added that an investigation is ongoing.

    The five former Memphis officers charged in Nichols’ death also are accused of assaulting another young Black man just three days before the fatal police encounter, according to a federal lawsuit filed Tuesday.

    The suit accuses the city of failing to prevent or address an alleged pattern of policing abuses by the SCORPION unit, which it claims operated like a “gang of vigilantes” without adequate training or supervision. Police declined to comment on the lawsuit, citing ongoing litigation.

    The Shelby County District Attorney’s office in Memphis said it will review all cases involving the five officers charged with Nichols’ death.

    Davis, speaking at a Memphis city council meeting Tuesday, said training was not an issue with the unit. Instead, she said, “egos” and a “wolf pack mentality” contributed to the killing.

    “Culture is not something that changes overnight. You know, there is a saying in law enforcement that ‘culture eats policy for lunch.’ We don’t want to just have good policies because policies can be navigated around,” she said. “We want to ensure that we have the right people in place to ensure our culture is evolving.”

    Memphis Police Chief Cerelyn

    In this still from video released by the City of Memphis, officers from the Memphis Police Department beat Tyre Nichols on a street corner.

    These are the moments that led to Tyre Nichols’ death

    Nichols’ death comes as many police departments in the US have been reeling from an exodus of officers due to resignations and retirements and scrambling to attract new recruits. The staffing crisis has been exacerbated by high-profile cases such as the 2020 murder of George Floyd that have put policing under scrutiny and made it a frequent target of protests and moves to decrease funding.

    “The pandemic impacted recruiting and then George Floyd’s murder really was a moment in time that made prospective police applicants think twice – Is this a job for me?” Wexler said.

    “And now, unfortunately, with the Tyre Nichols killing you simply compounded what was already arguably a challenging environment to hire a police officer.”

    Wexler’s group, in a 2021 survey, found that retirements had risen 45% that year since 2019. Resignations had jumped 18% in that two-year period.

    The number of officers on the Memphis Police Department dropped by more than 22% since 2011 – from 2,449 in September 2011 to a low of 1,895 officers last December, according to the Memphis Data Hub website.

    The department was budgeted for 2,300 officers last year, CNN affiliate WMC reported. In 2015, nearly 200 Memphis police officers resigned over changes to pension and benefit plans, according to WMC.

    “It had gotten to the point that we were having sergeants as acting lieutenants,” said Alvin Davis, a former Memphis police lieutenant and recruiter who retired last year. “Hundreds of people did it over a period of time because we didn’t have enough supervisors. So many people were running out the door.”

    In this still from video released by the City of Memphis, officers stand around as Tyre Nichols leans up against a car after being detained and beaten on January 7.

    Like other departments around the country, the Memphis PD in 2021 began offering $15,000 signing bonuses and $10,000 in relocation assistance. Additionally, requirements on college credits, military experience and employment history have been loosened, WMC reported.

    “Departments around the country … are offering between $25,000 and $30,000 signing bonuses,” Wexler said. “You’ve got a national shortage of applicants which has forced police departments to do unprecedented things like offering signing bonuses and, in some cases, modifying the standards for hiring.”

    Greg Umbach, associate professor at John Jay College of Criminal Justice, said there is a direct correlation between higher standards for new recruits and lower incidents of bad behavior.

    “We know from decades of research that the number of cops meeting higher qualifications, most notably a college degree, matters far more than anything else, for the number of civilian complaints a department gets,” Umbach said.

    And if the pipeline of good officers is low, Umbach said, then so is the quality of supervision – a reality that has plagued the Memphis Police Department and other agencies nationwide.

    “Any police sergeant watching that video, their first thought is, ‘My God, where was the supervision and why did they think this was okay,’” Umbach said.

    The Memphis Police Department urges recruits to

    Davis, the former lieutenant and recruiter, asked a similar question about supervision.

    “If you pepper-spray someone or you tase someone, you’re supposed to call a supervisor,” said Davis, who spent 22 years on the job. “That’s just policy. Why they didn’t, I can’t say.”

    But, Davis said, the behavior of the former officers who beat Nichols did not entirely surprise him – given the curtailed training and standards, shortage of skilled supervisors and growing number of officers lured by monetary incentives and without the requisite experience being deployed on the city’s streets.

    “The standards kept dropping and dropping to bring people in,” said Davis, who was in charge of recruiting. “And then they start throwing money out to lure people in and this is what you got.”

    He added, “Just about everybody who came, the first thing they asked us was about was the money. How long did they have to stay on the job? Do I have to do a year? Two years? Nobody is trying to make a career out of it. It was the money.”

    The Memphis PD did not immediately respond to a request for comment on training, recruitment and staffing issues.

    “It’s not the job that it used to be, when you felt like you’re the ‘best in blue’ and you have your head up because you really feel like you accomplished something,” said Davis, referring to the Memphis Police Department’s longtime “Join the best in blue” recruitment campaign. “It’s not that kind of job anymore.”

    It’s too early to tell exactly what factors contributed to the behavior of the former officers who beat Nichols to death on January 7, law enforcement experts said.

    Wexler and others pointed to previous policing scandals that were preceded by periods of hiring under lax standards and curtailed training.

    In the late 1980s, nearly 10% of the officers in the Miami Police Department were suspended or fired after a corruption scandal involving rogue officers who became known as the “River Cops.” Nearly 20 former officers were convicted on various state and federal charges, including using their police powers as a racketeering enterprise to commit murder.

    Atlanta police officers keep an eye on marchers during a rally on January 28 protesting the fatal police assault of Tyre Nichols.

    In 1990, an investigation into the hiring and training of police officers in Washington, DC by the General Accounting Office found that a hiring rush during the previous decade – prompted by a wave of drug and gun violence – led to cutting corners on recruiting, background checks and training.

    Eight years later, another report by the GOA, the investigative arm of Congress, examined drug-related police corruption and said “rapid recruitment initiatives” coupled with loosening education requirements and inadequate training and supervision “might have permitted the hiring of recruits who might not otherwise have been hired.”

    “These are all lessons of history,” said Corey, the former NYPD chief. “You have to make the profession attractive to the type of people you want to recruit. It’s not that people have lost interest in policing. They just don’t see it as a viable occupation.”

    He added, “What we ask of our cops is that they think like lawyers, speak like psychologists, and perform like athletes but we pay them as common laborers. A starting officer in New York City makes $42,000 a year, which means about $20 dollars an hour. It also means that at McDonald’s they could be making $15 dollars an hour with none of the stress, trauma or risk.”

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  • The week that tech became exciting again | CNN Business

    The week that tech became exciting again | CNN Business

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    CNN Business
     — 

    Let’s be honest: For much of the past decade, tech events have been pretty boring.

    Executives in business casual wear trot up on stage and pretend a few tweaks to the camera and processor make this year’s phone profoundly different than last year’s phone or adding a touchscreen onto yet another product is bleeding edge.

    But that changed radically this week. Some of the world’s biggest companies teased significant upgrades to their services, some of which are central to our everyday lives and how we experience the internet. In each case, the changes were powered by new AI technology that allows for more conversational and complex responses.

    On Tuesday, Microsoft announced a revamped Bing search engine using the capabilities of ChatGPT, the viral AI tool created by OpenAI, a company in which Microsoft recently invested billions of dollars. Bing will not only provide a list of search results, but will also answer questions, chat with users and generate content in response to user queries. And there are already rumors of another event next month for Microsoft to demo similar features in its Office products, including Word, PowerPoint and Outlook.

    On Wednesday, Google held an event to detail how it plans to use similar AI technology to allow its search engine to offer more complex and conversational responses to queries. Chinese tech giants Alibaba and Baidu also said this week that they would be launching their own ChatGPT-style services. And other companies are sure to follow suit soon.

    After years of incremental updates to smartphones, the promise of 5G that still hasn’t taken off and social networks copycatting each others’ features until they all the look the same, the flurry of AI-related announcements this week feels like a breath of fresh air.

    Yes, there are very real concerns about the potential of this technology to spread biases and inaccurate information, as happened in a Google demo this week. And it’s certainly likely numerous companies will introduce AI chatbots that simply do not need one. But these features are fun, have the potential to give us back hours in the day and, perhaps most importantly, some are here right now to try out.

    Need to write a real estate listing or an annual review for an employee? Plug a few keywords into a ChatGPT query bar and your first draft is done in three seconds. Want to come up with a quick meal plan and grocery list based on your dietary sensitivities? Bing, apparently, has you covered.

    If the introduction of smartphones defined the 2000s, much of the 2010s in Silicon Valley was defined by the ambitious technologies that didn’t fully arrive: self-driving cars tested on roads but not quite ready for everyday use; virtual reality products that got better and cheaper but still didn’t find mass adoption; and the promise of 5G to power advanced experiences that didn’t quite come to pass, at least not yet.

    But technological change, like Ernest Hemingway’s idea of bankruptcy, has a way of coming gradually, then suddenly. The iPhone, for example, was in development for years before Steve Jobs wowed people on stage with it in 2007. Likewise, OpenAi, the company behind ChatGPT, was founded seven years ago and launched an earlier version of its AI system called GPT3 back in 2020.

    “ChatGPT exploded onto the market and people’s awareness,” said Bern Elliot, an analyst at Gartner, “but this has been a long time in the making.”

    More than that, artificial intelligence systems have for years underpinned many of the functions people may now take for granted, from content recommendations on social media platforms and auto-complete tools in e-mail to voice assistants and facial recognition tools. But when ChatGPT was released publicly in November, it put the power of AI systems on full display for millions in an entertaining and immediately graspable way. ChatGPT simultaneously made it much easier to see how far the technology has progressed in recent years and to imagine the vast potential for the impact it could have across industries.

    “When new generations of technologies come along, they’re often not particularly visible because they haven’t matured enough to the point where you can do something with them,” Elliott said. “When they are more mature, you start to see them over time — whether it’s in an industrial setting or behind the scenes — but when it’s directly accessible to people, like with ChatGPT, that’s when there is more public interest, fast.”

    Now that ChatGPT has gained traction and prompted larger companies to deploy similar features, there are concerns not just about its accuracy but its impact on real people.

    Some people worry it could disrupt industries, potentially putting artists, tutors, coders, writers and journalists out of work. Others are more optimistic, postulating it will allow employees to tackle to-do lists with greater efficiency or focus on higher-level tasks. Either way, it will likely force industries to evolve and change, but that’s not? necessarily a bad thing.

    “New technologies always come with new risks and we as a society will have to address them, such as implementing acceptable use policies and educating the general public about how to use them properly. Guidelines will be needed,” Elliott said.

    Many experts I’ve spoken with in the past few weeks have likened the AI shift to the early days of the calculator and how educators and scientists once feared how it could inhibit our basic knowledge of math. The same fear existed with spell check and grammar tools.

    While AI tools are still in their infancy, this week may represent the start of a new way of doing tasks, similar to how the iPhone changed computing and communication in June 2007. But this time, it could be in the form of a Bing browser.

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  • Bad news: Consumer prices actually climbed in December | CNN Business

    Bad news: Consumer prices actually climbed in December | CNN Business

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    Minneapolis
    CNN
     — 

    December consumer prices rose from the month before and did not fall as previously thought, according to revised data from the Bureau of Labor Statistics released Friday.

    The newly calibrated Consumer Price Index shows that prices rose 0.1% on a seasonally adjusted basis in December from November versus a previously estimated decline of 0.1%.

    Every year, the BLS recalculates seasonal adjustment factors for CPI going back five years. (However, the year-over-year data, which is not seasonally adjusted, is not revised.)

    The latest annual adjustments show slight shifts in the month-on-month inflation trend for 2022 — with November and October revised up by 0.1 percentage points.

    Core CPI, which excludes the more volatile categories of food and energy, saw upward revisions of 0.1 percentage points in December and November to 0.4% and 0.3%, respectively.

    “Whether you’re talking about inflation, labor markets, GDP, these things all go through seasonal adjustment procedures and do get revised over time,” said Andrew Patterson, senior economist in Vanguard’s investment strategy group.

    “There’s not usually a whole lot of focus on it, but given the magnitude of inflation and the volatility of macro fundamentals these days, it’s probably gotten a little bit more attention than typical,” he added.

    The latest BLS tweaks show the importance of not reading into any one data point but instead reviewing a variety of different metrics over a longer-term period, he said, a point that has been repeatedly stressed by officials such as Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen as they measure the path of inflation.

    But the revisions don’t change the overall storyline, Patterson noted.

    “We continue to believe that inflation is going to grind down over the course of the year,” he said.

    The annual revisions also come just days before the release of the January CPI report, which will debut some modifications of its own: changing its weighting methodology from consumption patterns collected every two years to a single year of spending data.

    “This means that this 2023 CPI report will be based on consumer spending patterns that took place in 2021, as opposed to 2022’s CPI data, which was based on spending data over 2019-2020,” William Blair analyst Richard de Chazal wrote in a note Friday. “From the BLS’s perspective, this makes the data more timely and relevant, and a better reflection of actual spending patterns.”

    The adjustments could help better gauge economic activity during what’s been a very unpredictable time, noted Diane Swonk, KPMG chief economist, in a Twitter thread this week.

    “The U.S. statistical agencies work extremely hard to measure and seasonally adjust the data accurately to reflect what where once considered normal season variations — everything from the surge in extreme weather events we are enduring to the unusual dynamics of an economy that is still emerging from a pandemic have distorted normal seasonal patterns,” she wrote.

    “Those shifts, coupled with the rapid pace at which the economy is currently shifting has made measuring current economic conditions more difficult. It is hard to tell where we are, let alone where the economy is headed,” she said.

    Here’s how the adjusted data looks for 2022:

    Month: Original data vs. Revised

    January: 0.6% vs. 0.6%

    February: 0.8% vs. 0.7%

    March: 1.2% vs. 1%

    April: 0.3% vs. 0.4%

    May: 1% vs. 0.9%

    June: 1.3% vs. 1.2%

    July: 0.1% vs. 0%

    August: 0.1% vs. 0.2%

    September: 0.4% vs. 0.4%

    October: 0.4% vs. 0.5%

    November: 0.1% vs. 0.2%

    December: -0.1% vs. 0.1%

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  • More than half of Twitter’s top 1,000 advertisers stopped spending on platform, data show | CNN Business

    More than half of Twitter’s top 1,000 advertisers stopped spending on platform, data show | CNN Business

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    New York
    CNN
     — 

    More than half of Twitter’s top 1,000 advertisers in September were no longer spending on the platform in the first weeks of January, according to data provided to CNN by digital marketing analysis firm Pathmatics, in a striking sign of how far reaching the advertiser exodus has been following Elon Musk’s acquisition of the company.

    Some 625 of the top 1,000 Twitter advertisers, including major brands such as Coca-Cola, Unilever, Jeep, Wells Fargo and Merck, had pulled their ad dollars as of January, according to estimates from Pathmatics, based on data running through January 25.

    Wells Fargo said it “paused our paid advertising on Twitter” but continues to use it as a social channel to engage with customers. The other brands did not immediately respond to a request for comment.

    As a result of the pullback, monthly revenue from Twitter’s top 1,000 advertisers plummeted by more than 60% from October through January 25, from around $127 million to just over $48 million, according to the data.

    The data demonstrate the sharp decline of what was once a $4.5 billion advertising business for Twitter. After Musk completed his takeover of the company in late October, advertisers began to worry about the safety and stability of the platform given his plans to cut staff and relax content moderation policies. In early November, Musk said Twitter had seen a “massive revenue drop.”

    Although Twitter’s ad business was always much smaller than that of competitors Facebook and Google, it was still responsible for the vast majority of the company’s revenue. Musk must now fill in that gap as he stares down interest payments for the debt he took on to buy Twitter for $44 billion.

    Twitter, which eliminated much of its media relations team during last year’s layoffs, did not immediately respond to a request for comment.

    After initially clashing with advertisers, Musk now appears to be trying to woo them back to the platform. The company reportedly offered a Super Bowl “fire sale” deal for advertisers in an attempt to win them back for one of Twitter’s biggest audience days of the year. Twitter has also partnered with a third-party “brand safety” firm that says it can show advertisers if their ads appear alongside inappropriate or unsafe content on Twitter.

    But the pushback continues. A coalition of civil society and civil rights groups renewed calls on Thursday for companies to join what they say is more than 500 advertisers who have stopped advertising on Twitter. The latest effort came after a research report from the Center for Countering Digital Hate, a member of the coalition, raised concerns about ads “appearing next to toxic content” from previously banned accounts.

    In his first months in charge, Musk rolled back bans on users who had previously violated Twitter’s rules, including former President Donald Trump. He also dissolved a third-party content oversight group and halted enforcement of its Covid-19 misinformation policy.

    Some advertisers also complained that the Twitter employees they previously worked with had been terminated by Musk, causing confusion. In November, Musk complained that Twitter had seen a “massive drop in revenue.”

    But Musk has stood by those policy changes, and has since been scrambling to reduce costs and find new revenue streams for the company. Those efforts include dramatically cutting staff, revamping its paid subscription service and, more recently, announcing the controversial move to charge researchers and developers reliant on Twitter’s API, which allows third parties to tap into Twitter’s systems.

    For now, however, Twitter remains reliant on advertising revenue as it reportedly struggles to grow its paid subscriber base.

    Even among the top advertisers that remain, many have dramatically reduced their ad spending on the platform, according to Pathmatics data. HBO, for example, was Twitter’s top advertiser in September, spending nearly $12 million on ads that month, but for the month of January (as of January 25), it spent just over $54,000. (HBO, which is owned by CNN parent company Warner Bros. Discovery, did not immediately respond to a request for comment.)

    A small number of Twitter’s top advertisers spent more on the platform in January than they did the month prior to Musk’s takeover, including ESPN, Salesforce and Apple, the latter of which Musk briefly and publicly feuded with for allegedly threatening to block Twitter from its app store. ESPN, Salesforce and Apple did not immediately respond to a request for comment.

    Musk said in a

    tweet
    earlier this month that the previous three months had been “extremely tough, as had to save Twitter from bankruptcy,” but that the company “is now trending to breakeven if we keep at it.”

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  • The dark side of the sports betting boom | CNN Business

    The dark side of the sports betting boom | CNN Business

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    New York
    CNN
     — 

    The sports gambling gold rush is coming at a high cost.

    In 2018, the Supreme Court struck down a federal ban on commercial sports betting in most of the country. Thirty-three states have made sports gambling legal in the wake of the decision. Now, on Super Bowl Sunday, a record 50.4 million US adults are expected to bet on the game.

    The booming sports betting industry, lawmakers and even the professional sports leagues themselves are making it easier, faster and more tempting for people to bet on games — and develop gambling problems, say gambling researchers and addiction specialists.

    A flood of advertising, technology that allows for one-click betting at home, and nearly unlimited betting options during games have collided. There’s been a spike in inquiries to state gambling-addiction hotlines, states say.

    In the past five years, there has been an explosion of online sports betting apps from companies like DraftKings, FanDuel and Caesars. These apps are often replacing illegal betting venues. At the same time, they also attract an influx of new gamblers who had never set foot in a casino or would have known how to place a bet with a bookie.

    During the Super Bowl, there will be an onslaught of advertisements — most starring celebrity sponsors and athletes — meant to encourage new sign-ups and grab market share. DraftKings will air a commercial featuring Kevin Hart and David Ortiz, while Rob Gronkowski will attempt a field goal kick live in a FanDuel ad. (Any customer who places a Super Bowl bet of five dollars or more on FanDuel will win a share of $10 million in “free bets” if Gronkowski makes it.)

    Hear why FanDuel CEO thinks this Super Bowl will be biggest day in company’s history

    Sports teams and leagues were once fiercely opposed to gambling on the games. Now, they’ve partnered with sportsbooks.

    These days, gamblers can also do much more than wager on the outcome of a game. There are options to bet in-game on every quarter, player, and event.

    Resources for gambling addiction programs have long been thin in the United States and have been stretched further by the current wave of sports betting. In 2020, there were 5.7 million Americans with a gambling disorder, according to a nationwide survey by the National Association of Administrators for Disordered Gambling Services.

    Focus on gambling disorders has historically been minimal in the United States, said Timothy Fong, a psychiatrist and the co-director of the UCLA Gambling Studies Program.

    This is in part because people with gambling disorders have been viewed as foolish or lacking willpower, he said. “We equate the ability to hold onto money and win money with success and equate losing with greed.”

    There is also sparse federal oversight of the gambling industry, and there are currently no federal funds designated for problem gambling treatment or research, unlike federal funding for alcohol, tobacco and drug addiction programs.

    DraftKings is one of the most popular sports betting apps.

    A patchwork of state legislation, lack of robust consumer protections in many states, and limited advertising restrictions are adding to the problems.

    “Many states naively or some other way went about legalizing sports betting without adequately estimating the costs on problem gambling resources,” said John Holden, an associate professor of management at Oklahoma State University who studies sports gambling regulation.

    “There is more that state lawmakers can do within the confines of commercial speech restrictions,” including authorizing extra funding to go after false and misleading advertising, Holden said.

    Betting on sports can be a way for some people to develop, maintain or accelerate gambling disorders.

    There are several features of sports betting that make it different from other forms of gambling and can lead to addictive behavior.

    Many sports bettors tend to perceive their wages on games are safer and more informed by their own expertise and skills than luck, researchers say. This may give them a false illusion of control.

    Additionally, live betting within games reduces the delay between risk and reward, and it’s increasing the speed and frequency of wagers, experts say.

    “I got caught up in a lot of the live betting,” said one 24-year-old man with a gambling disorder who spoke to CNN on the condition of anonymity. He started betting on sports seven years ago through a bookie, but upped his wagers once he started using apps.

    During football games, he would bet on the outcome of drives and which team would score the next touchdown. As he lost more during a game, he would try again to to win it back on the next play.

    “You see the way the game is going and you think you know,” he said. “It’s not like back in the day with a bookie betting on who wins.”

    He said he lost $100,000 on sports gambling, including money from student loans. He’s currently in recovery at Beit T’Shuvah, in Los Angeles, which provides inpatient and outpatient services for people struggling with gambling disorders.

    Casey Clark, the senior vice president at the American Gaming Association, a trade group for the gambling industry, said that the legalization of sports betting has moved the black market of sports gambling into regulated marketplaces, benefiting states.

    The gambling industry and sports betting operators work with regulators, professional sports leagues, media companies and advocates to set standards, provide gambling education for consumers and fund recovery efforts for people seeking treatment, Clark said.

    “We’ve had a really fast escalation and movement towards giving American consumers access to the legal market that they clearly want. And so we have to continue to evolve that marketplace,” he said.

    Advocates for people with gambling disorders say demand for help and treatment services has grown alongside the rapid expansion of legalized sports betting.

    Inquires to the Council on Compulsive Gambling of New Jersey’s help hotline about sports gambling have increased 60% since it became legal in the state in 2018, said Felicia Grondin, the organization’s executive director.

    Grondin feels helpless against the constant barrage of advertising encouraging betting on games.

    An advertisement for DraftKings is shown on the scoreboard during the game between the Boston Red Sox and the Detroit Tigers at Comerica Park on July 7, 2019 in Detroit, Michigan.

    “We consider it to be predatory advertising because it’s incessant and it glamorizes gambling,” she said.

    Clark from the American Gaming Association said the group has created a responsible marketing code to set industry-wide advertising standards.

    But self-enforcement by the industry cannot make up for robust oversight from regulators, said Keith Whyte, the executive director of the National Council on Problem Gambling.

    “Self-regulation tends to dumb itself down to the lowest common denominator, not the highest,” he said. “Some operators are definitely taking advantage of weak regulatory environments in some states.”

    Every state where gambling is legal has a regulatory body that oversees it.

    But few have “really done more than the minimal amount to increase funding of problem gambling treatment,” said Holden. The sports gambling industry is most similar to financial markets, he said, but financial markets are much more regulated than banks.

    Most states require that sports betting ads disclose the minimum legal age to gamble and responsible gambling messages, such as problem gambling hotlines. Those messages are brief and usually run at the very end.

    DraftKings' Super Bowl ad with Kevin Hart, David Ortiz and Emmitt Smith.

    Regulators are wary of how tightly they can curtail messages in gambling advertising without running afoul of First Amendment protections on commercial speech.

    “A lot of state regulators have big First Amendment fears,” Holden said. “No one wants to fund litigation or lose a Supreme Court case over gambling.”

    In most states, the legal age for sports betting is 21 years old. But ads during games, in stadiums, and with star athlete sponsors normalizes sports betting for kids and teenagers, critics say. The United Kingdom last year banned top athletes and celebrities from appearing in ads endorsing or promoting gambling to try to curb underage gambling. That’s unlikely to happen in the United States.

    Additionally, researchers are troubled by the incentives and promotions some sports betting apps often provide to users, such as sign-up and referral bonuses, promo codes and bonus bets. One 2017 study of people with gambling addictions found that messages with an offer of risk-free kind of bonuses had a high impact.

    The Ohio Casino Control Commission in January fined DraftKings, Caesars and BetMGM $150,000 each for advertising promotions or bonuses as “free” or “risk-free” when, in fact, users were required to lose money or risk their own money to obtain the promotion.

    “I got more incentive to gamble with these apps that give you free play and match your deposit,” said the former sports bettor in Los Angeles currently in recovery. He enlisted friends to sign up to get referral fees, and looked at these enticements as free money. “I’d have to be an idiot to pass this up.”

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