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Meta’s Twitter-rival Threads launches tomorrow: What we know so far
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The U.S.-listed shares of Toyota Motor Corp. TM JP:7203 rose 0.8% in morning trading Wednesday, said U.S. sales in June rose 14.9% from a year ago. The Japan-based automaker’s North America division (TMNA) reported it sold 195,448 vehicles in the U.S. in June, on a volume and daily-selling rate (DSR) versus June 2022, as Toyota-brand sales rose 1.4% to 168,680 vehicles and Lexus-brand sales jumped 18.1% to 26,768 vehicles. Sales of electrified vehicles total 51,535, or 26.4% of total monthly sales. For the first half of 2023, U.S. sales fell 0.7% to 1,038,520 vehicles, with electrified vehicle sales representing 26.0%…
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BEIJING (AP) — The U.S. recommended Americans reconsider traveling to China because of arbitrary law enforcement and exit bans and the risk of wrongful detentions.
No specific cases were cited, but the advisory came after a 78-year-old U.S. citizen was sentenced to life in prison on spying charges in May.
It also followed the passage last week of a sweeping Foreign Relations Law that threatens countermeasures against those seen as harming China’s interests.
China also recently passed a broadly written counterespionage law that has sent a chill through the foreign business community, with offices being raided, as well as a law to sanction foreign critics.
“The People’s Republic of China (PRC) government arbitrarily enforces local laws, including issuing exit bans on U.S. citizens and citizens of other countries, without fair and transparent process under the law,” the U.S. advisory said.
“U.S. citizens traveling or residing in the PRC may be detained without access to U.S. consular services or information about their alleged crime,” it warned.
“ Similar U.S. advisories issued for the semiautonomous Chinese regions of Hong Kong and Macao.”
The advisory also said that Chinese authorities “appear to have broad discretion to deem a wide range of documents, data, statistics, or materials as state secrets and to detain and prosecute foreign nationals for alleged espionage.”
It listed a wide range of potential offenses from taking part in demonstrations to sending electronic messages critical of Chinese policies or even simply conducting research into areas deemed sensitive.
Exit bans could be used to compel individuals to participate in Chinese government investigations, pressure family members to return from abroad, resolve civil disputes in favor of Chinese citizens and “gain bargaining leverage over foreign governments,” the advisory said.
Similar advisories were issued for the semiautonomous Chinese regions of Hong Kong and Macao. They were dated Friday and emailed to journalists on Monday.
The U.S. had issued similar advisories to its citizens in the past, but those in recent years had mainly warned of the dangers of being caught in strict and lengthy lockdowns while China closed its borders for three years under its draconian “zero-COVID” policy.
China generally responds angrily to what it considers U.S. efforts to impugn its authoritarian Communist Party–led system. It has issued its own travel advisories concerning the U.S., warning of the dangers of crime, anti-Asian discrimination and the high cost of emergency medical assistance.
From the archives (June 2020): Hong Kong bans insults to China’s national anthem
Also (August 2021): Biden signs order to allow thousands of Hong Kong residents to stay in the U.S. amid Beijing’s crackdown
China had no immediate response to the travel advisory on Monday.
Details of the accusations against the accused spy John Shing-Wan Leung are not available, given China’s authoritarian political system and the ruling Communist Party’s absolute control over legal matters. Leung, who also holds permanent residency in Hong Kong, was detained in the southeastern city of Suzhou on April 15, 2021 — a time when China had closed its borders and tightly restricted movement of people domestically to control the spread of COVID-19.
The warnings come as U.S.-China relations are at their lowest in years, over trade, technology, Taiwan and human rights, although the sides are taking some steps to improve the situation. U.S. Secretary of State Antony Blinken made a long-delayed visit to Beijing last week and Treasury Secretary Janet Yellen is making a much-anticipated trip to Beijing this week. China also recently appointed a new ambassador to Washington, who presented his credentials in a meeting with President Joe Biden at the White House.
Other incidents, however, have also pointed to the testiness in the relationship. China formally protested last month after Biden called Chinese leader Xi Jinping a “dictator,” days after Blinken’s visit.
From the archives (February 2021): Biden says China faces ‘extreme competition’ from U.S. under his administration
Also see (June 2020): Bolton book adds urgency to Trump bid to depict himself as a China hawk and to paint Biden as a Beijing apologist
Capitol Report (June 2020): Trump asked China’s Xi to buy U.S. farm products to help him win re-election, Bolton book says
Biden brushed off the protest, saying his words would have no negative impact on U.S.-China relations and that he still expects to meet with Xi sometime soon. Biden has also drawn rebukes from Beijing by explicitly saying the U.S. would defend self-governing Taiwan if China, which claims the island as its own territory, were to attack it.
Biden said his blunt statements regarding China are “just not something I’m going to change very much.”
See: Biden says he plans to meet with China’s Xi even after calling him a dictator
Also: ‘Extremely absurd and irresponsible’: China fires back after Biden labels Xi a dictator
From the archives (March 2023): Xi says U.S. is trying to hinder China in its quest for global influence
The administration is also under pressure from both parties to take a tough line on China, making it one of the few issues on which most Democrats and Republicans agree.
Along with several detained Americans, two Chinese-Australians, Cheng Lei, who formerly worked for China’s state broadcaster, and writer Yang Jun, have been held since 2020 and 2019, respectively, without word on their sentencing.
Perhaps the most notorious case of arbitrary detention involved two Canadians, Michael Kovrig and Michael Spavor, who were detained in China in 2018, shortly after Canada arrested Meng Wanzhou, Huawei Technologies’ chief financial officer and the daughter of the tech powerhouse’s founder, on a U.S. extradition request.
They were charged with national-security crimes that were never explained and released three years later after the U.S. settled fraud charges against Meng. Many countries labeled China’s action “hostage politics.”
Read on (May 2023): Biden national-security adviser tells Chinese diplomat that U.S. seeks to move beyond spy-balloon episode
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J. Sainsbury sees same-store sales rise 9.8% in first quarter, backs 2024 view
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A street was blocked for road work in my San Francisco neighborhood this month, with a worker holding a large STOP sign to direct traffic.
A white car did as instructed, stopping in the middle of the intersection and blocking traffic at the four way intersection. No one was in the driver’s seat and there were no passengers, nor any training drivers — it was a Cruise driverless car, one of many that have flooded streets in the city in the last two years.
The public works employee holding the sign was flummoxed as how to get the car to move away. After several minutes, the car slowly backed its way out and crossed the street, but ended up on the wrong side. After another 10 minutes, it managed to pull itself together, get in the right lane and drive down the hill.
Most San Francisco residents can tell a similar story. The growing driverless car fleets in San Francisco are both a fascinating glimpse of science fiction come to life and a scary example of how Big Tech and auto companies have run roughshod over a congested city, with technology that really isn’t ready yet and little regulation to keep it at bay.
Now, the problem is coming to a head. San Francisco public officials have had enough, and are speaking out about safety threats ahead of a hearing next month that could let companies expand into larger fleets of fare-generating robotaxis.
“They are not ready for prime time,” San Francisco Fire Chief Jeanine Nicholson told MarketWatch in an interview.
“They have run over our hoses, they have blocked our fire engines from going on calls, they have just blocked our vehicles from getting down streets where there is a possible fire. They have just done a multitude of things. We had to break the window of one once because we could not get its attention,” Nicholson said.
While the average citizen can laugh at the stalled cars in city streets, the vehicles represent a major impediment for first responders. The San Francisco fire chief believes they put the city’s firefighters and residents at risk.
“Response time matters — a fire can double in size in a minute,” she said.
Aaron Peskin, president of the city’s Board of Supervisors, said there have been 66 incidents in which driverless cars interfered with first responders this year. But the city has little control over the cars operated by Cruise, a unit of General Motors Co.
GM,
and Waymo LLC, a subsidiary of Google parent Alphabet Inc.
GOOG,
GOOGL,
Both companies already have Department of Motor Vehicle permits to deploy a driverless passenger taxi service, a process Peskin described as “Kafka-esque.”
“You have this thing where the DMV colluded with the industry to redact information that otherwise was public,” he said, referring to the result of a lawsuit Waymo filed last year against the DMV to keep its crash data private, arguing that it held trade secrets. “The funny thing is it’s not like San Francisco is trying to say ‘let’s put the genie back in the bottle.’ We are trying to ensure that our streets are safe. They have become too congested.”
Both companies are seeking to expand their operations into fare-generating robotaxis in San Francisco, leading to a crucial meeting of California’s Public Utility Commission now slated for July. Waymo is seeking to begin passenger robo-taxi service in the city, while Cruise is seeking to expand its passenger robo-taxi service to the entire city, 24 hours a day, and remove exclusions of steep hills and roundabouts, deploying 100 vehicles. Helpfully for the companies, one PUC commissioner appointed by Gov. Gavin Newsom in 2021 is John Reynolds, who was managing counsel of Cruise until 2019.
Resistance is building locally and nationally. Cathy Chase, president of Advocates for Highway and Auto Safety, a nonprofit in Washington seeking more regulation and data transparency on autonomous vehicles as part of its mission for more highway and road safety, said it was “illogical and irresponsible at best, and dangerous and deadly at worst, to go forward with any expansion until the significant problems have been resolved.”
The San Francisco Municipal Transportation Authority (SFMTA) wrote letters of protest to both company’s applications. In May, the SFMTA said that since it wrote its first letter in January, “new hazards from driverless AV operations in San Francisco have been reported, and general public complaints about driverless AV operations have increased significantly.”
In May, a Waymo vehicle hit and killed a small dog that was off leash, while a test driver was at the wheel, in what the company said was an unavoidable accident. In June, a Cruise vehicle with no driver started to enter a mass shooting scene in the Mission District, and a video on Twitter showed a police officer yelling to get the car removed. Cruise said a lane was open for emergency vehicles and that its car did a U-turn and pulled over. In April, five Waymo cars stopped and blocked traffic in the Balboa Terrace area, in dense fog, a big problem for the vision systems.
The letters note that both Waymo and Cruise have “committed numerous violations that would preclude any teenager from getting a California’s Driver’s License.” The SFMTA also calls out the PUC for relying on the DMV for approvals, saying that its draft resolution to approve expansions of both companies is an attempt to “deflect rather than exercise the Commission’s duty to protect public safety.”
Waymo said it has been working with public safety officials and provides them a phone number to reach Waymo directly in the event that one of its cars stop. Cruise said it is proud of its safety record “which is publicly reported and includes millions of miles driven in an extremely complex urban environment.” Both companies have over 30 letters of support for their plans, from a range of groups including many representing the disabled, such as the National Federation of the Blind of California.
“It’s because of the donations,” Peskin said.
But the city’s fire chief Nicholson said there needs to be more from the companies than PR statements and lessons on how to stop their vehicles.
“They really need to sit down with us and figure out a solution,” she said, adding that when the fire department is in the middle of putting out a fire or rescuing victims or dealing with a health emergency, “to have to handle one of their vehicles, it’s just ridiculous.”
As is the case with many new technologies, history does tend to repeat itself.
Chris Gerdes, a professor of mechanical engineering at Stanford University and co-director of the Center for Automotive Research at Stanford (CARS) said that as part of work he has been doing with Ford Motor Co.
F,
he has been researching ethical and legal issues associated with automated vehicles. These same issues came up when the first automobiles started to arrive on public streets at the turn of the 20th century, clashing with horses and buggies.
“You go back and look at the debates when the car came out,” Gerdes said, and “there were a lot of debates around should these things be allowed on the road, should they be allowed everywhere? These questions that are coming now were asked about cars back in the day. They can block the road, they can scare horses. Is this something we want to have on the roads? Is it even legal for them to be on the roads?”
But there is a need to demonstrate that driverless cars are compatible with existing laws and the uses of the roads, he said. “The question becomes at what point do these isolated incidents add to up to danger, to what extent do these compromise the city’s priorities or mobility and traffic flow.” He said they need to compare the autonomous-vehicle data with that from human drivers.
The SFMTA provided comparison data in its letters of protest. According to the SFMTA, based on data filed with the NHTSA, Cruise’s injury crash rate is estimated to have been 506 injury crashes per 100 million vehicle miles traveled (VMT) between June and November, 2022—approximately 6.3 times the 2021 national average, which is 80 injury crashes per 100 million VMT. Waymo’s injury crash rate is estimated to be 104 injuries per 100 million VMT, approximately 1.3 times the national average, the SFMTA said, when looking at the same period.
“The collision rate from that small fraction of Cruise driverless operations appears to exceed the collision rate for human drivers,” the SFMTA said in its Cruise letter. For Waymo, the agency said it recommends the commission expand on the findings with a more thorough analysis. “Within the complex driving environment of San Francisco city streets, we must conclude that the technology is still under development and has not reached this goal,” the SFMTA said in its Waymo letter.
Some in San Francisco are hopeful the delay of the PUC meeting to July 13 is a good sign that the commission is listening to more input from city officials. In its letters, the SFMTA and the San Francisco City Attorney hint at the next step they could take, noting that the PUC “must conduct an environmental review” of Cruise’s and Waymo’s expansion plans, because its actions could cause environmental impacts. What goes unsaid is that the city could seek to compel such a review with a lawsuit.
Peskin said he has received letters from former employees of the companies saying that autonomous robotaxis are, as the fire chief said, “not ready for prime time.” The workers said they had signed nondisclosure agreements that kept them from saying so publicly. Peskin suggested it could end up like the tobacco industry’s whistleblower case.
“We would rather work with them than waste taxpayers’ money on lawsuits,” Peskin said, adding that the companies could continue to test their cars with test drivers — an option that is not likely to be acceptable by the companies seeking to make money from their big investment.
“San Francisco is the perfect place to test them,” he said. “But they still haven’t worked these kinks out.”
The city of San Francisco is beaten down at the moment, thanks in part to its past close relationship with tech. As the downtown core suffers from the departure of the tech workers that defined it for the past decade, city officials are doing what they can to ensure that the technology some of them created does not become the next hated addition to the city.
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Tesla Inc. delivered a record number of vehicles in the second quarter, beating market estimates after the electric carmaker increased discounts and incentives, the company reported on Sunday.
The Elon Musk-led electric vehicle manufacturer delivered 466,140 vehicles in the three months ended June 30 and produced 479,700 vehicles. The second quarter of 2023 marked the fifth period in a row when Tesla reported a higher level of vehicles produced compared to deliveries.
Analysts on average had expected Tesla to deliver 445,000 cars, according to analysts polled by Refinitiv.
Tesla delivered 254,695 vehicles in the year-ago quarter.
Deliveries are a carefully watched number by Tesla shareholders and are the closest approximation of sales disclosed by the company.
Tesla said total production rose 85.5% to nearly 480,000 vehicles in the three months ended June 30, from a year earlier.
The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.
Tesla increased discounts for vehicles to a $1,600-to-$7,500 range and made all of its Model 3s eligible for full federal credits of $7,500 starting in June in the United States.
Earlier this year, Tesla cut prices globally by as much as 20% after missing Wall Street delivery estimates for 2022.
Tesla is expected to achieve record sales yet again in China, its second-largest market after North America, despite competition from market leader BYD.
The company said it will post financial results for the second quarter after the market close on Wednesday, July 19, 2023.
Earlier this year Ford Motor
F,
and General Motors
GM,
as well as fast-charging equipment makers agreeing to adopt Tesla’s North American Charging Standard (NACS).
Tesla
TSLA,
shares closed at $261.77 on Friday ahead of the second-quarter deliveries report.
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Deliveries in June from Chinese electric-vehicle producers
Li Auto
XPeng
and
NIO
were great but uneven. The results hold a couple of lessons for investors ahead of
Tesla
‘s closely watched delivery report due Sunday.
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General Mills the megamanufacturer behind your morning Cheerios, reported a drop in earnings that might make it question whether continuing to raise prices is worth it.
General Mills
GIS,
CEO Jeff Harmening acknowledged during the company’s fourth-fiscal-quarter earnings call this week that consumers responded to higher prices by making fewer purchases. “As you look at the last 12 weeks, it’s pretty clear that elasticity — volume elasticities have increased,” which may suggest consumer demand is more sensitive to price increases than it had been previously.
In business and economics, price elasticity refers to the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.
“ ‘Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside.’ ”
The manufacturer of the Häagen-Dazs, Pillsbury and Betty Crocker product lineups, as well as its famed breakfast cereals, felt the impact of this phenomenon as it reported a decline in profits and sales volume for its fourth quarter.
Read: General Mills’ stock slides 5% as sales fall short. North American retailers are reducing inventory.
Richard Moody, chief economist at Regions Financial Corp., said higher prices are posing an issue for companies more broadly. “Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside. Sellers of goods just don’t have as much pricing power as they had for most of last year and the prior year,” Moody told MarketWatch.
This could be music to the ears of Federal Reserve officials, who are trying to get inflation back down to their 2% target.
St. Louis Fed President James Bullard, during the early days of the fight against inflation in 2022, said inflation would return to the Fed’s target once companies find out that raising prices is harmful to their bottom lines.
In an interview last May with Fox Business Network he observed that “a lot of CEOs have come on TV and said, ‘Oh, I have lots of pricing power, and I can do whatever I want and make a lot of money … but I think some of them are going to get punched in the face here with the fact that consumers have to react.”
Also see: U.S. consumer sentiment climbs to 4-month high on slower inflation and end of debt-ceiling fight
Though General Mills’ drop in earnings might not be the punch in the face Bullard warned of, its recent quarterly update could be a sign that continuing to raise prices is now looking harmful to financial results.
A statement from the company attributed the drop in earnings to a trend among retailers toward lower inventory levels. During the pandemic, grocery stores stocked up on Nature Valley snack bars and CoCo Puffs due to concerns about supply-chain complications. General Mills says retailers are holding less inventory now, so there is less on the shelves for consumers to purchase.
CEO Harmening said the majority of General Mills’ price increases are in the marketplace already. Though conditions can change, “we feel good about what we see right now with our pricing and the inflationary environment that we see,” he said, a possible indication that the company might back off of flexing price muscle.
Other economists were uncertain about reading too much into lower earnings for companies like General Mills.
Will Compernolle, macro strategist at FHN Financial, said he detected a bit of a culture change due to grocery-store inflation over the past two years. “People are buying less stuff to eat at home. And that is, you know, a kind of mysterious trend in the sense that this is always considered a necessity,” he said.
As pandemic-era stay-at-home recommendations and other public health measures were eased, there’s been “a temporary surge in food-services spending” as people have chosen to go out to restaurants rather than cook at home, he said.
He said it is unclear how companies like General Mills will respond to consumer spending. In order to determine demand, they will have to see what “the new normal looks like when the dust settles” and ask whether “people going to go back to their old composition of food at home versus food away.”
Read: Shopping at Kroger can be up to four times cheaper than eating out, CEO says
Robert Frick, corporate economist with Navy Federal Credit Union, said he has observed “consumers are saving more and spending less, perhaps out of caution, as most believe a recession is either here or imminent.”
Lower-income Americans have become particularly sensitive to price increases, Frick said. He shared his “hunch” that there is “kind of a drag on spending because lower-income Americans are being hurt so badly.”
“It seems likely most of the effects of spending plateauing overall has to do with that lower third of Americans [having] really started to, you know, pinch their pennies and run up their debt, and they don’t want to run it up any more,” Frick said.
Income and spending data released by the government on Friday showed people may have more money to spend but are not spending quite as much.
U.S. consumer spending slowed in May, rising just 0.1%, compared with 0.6% growth in consumer spending in the prior month. Consumers saved 4.3% of their disposable income, an increase from April’s 3.4% savings rate.
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Goldman Sachs Group Inc.
GS,
is weighing whether to leave its partnership with Apple Inc.
AAPL,
amid a broader retreat from consumer banking, the Wall Street Journal reported on Friday. The Journal, citing people familiar with the matter, said Goldman was seeking ways to hand off its Apple credit card and other initiatives from the partnership to American Express Co.
AXP,
Goldman has also considered offloading its card partnership with General Motors Co.
GM,
to American Express or another card issuer, the Journal reported. But any deal isn’t guaranteed, and would require Apple’s approval, the Journal said. Shares of Goldman Sachs were down 0.2% after hours. Shares of Apple, which ended Friday trading with a $3 trillion valuation, inched 0.1% lower after hours.
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