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Tag: Production facilities

  • Domino’s Pizza, Beyond Meat fall; Chuy’s, Warner Bros. rise; Thursday, 7/18/2024

    Domino’s Pizza, Beyond Meat fall; Chuy’s, Warner Bros. rise; Thursday, 7/18/2024

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    Stocks that traded heavily or had substantial price changes on Thursday:

    Chuy’s Holdings Inc. (CHUY), up $12.07 to $37.34.

    The Tex-Mex chain agreed to be acquired by Darden Restaurants in a deal valuing the company at $605 million.

    Domino’s Pizza Inc. (DPZ), down $64.23 to $409.04.

    The pizza chain suspended a forecast of the number of stores it will open globally over the long term.

    D.R. Horton Inc. (DHI), up $15.91 to $173.42.

    The homebuilder reported stronger profit and revenue for the spring than analysts expected.

    Beyond Meat Inc. (BYND), down 74 cents to $6.43.

    The plant-based food maker is discussing a balance-sheet restructuring with bondholders, according to a Wall Street Journal report.

    Discover Financial Services (DFS), up $1.48 to $142.89.

    The credit card company’s quarterly results easily surpassed analysts’ estimates.

    Warner Bros. Discovery Inc. (WBD), up 20 cents to $8.52.

    The owner of CNN and HBO is drafting a plan to split up, the Financial Times reported.

    Alaska Air Group Inc. (ALK), down $2.78 to $37.25.

    The airline lowered its full-year earnings forecast.

    Leslie’s Inc. (LESL), down $1.25 to $2.83.

    The pool and spa care company predicted results for its current quarter that were far below what the market was expecting.

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  • Demand for rare elements used in clean energy could help clean up abandoned coal mines in Appalachia

    Demand for rare elements used in clean energy could help clean up abandoned coal mines in Appalachia

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    MOUNT STORM, W.Va. — Down a long gravel road, tucked into the hills in West Virginia, is a low-slung building where researchers are extracting essential elements from an old coal mine that they hope will strengthen the nation’s energy future.

    They aren’t mining the coal that powered the steel mills and locomotives that helped industrialize America — and that is blamed for contributing to global warming.

    Rather, researchers are finding that groundwater pouring out of this and other abandoned coal mines contains the rare earth elements and other valuable metals that are vital to making everything from electric vehicle motors to rechargeable batteries to fighter jets smaller, lighter or more powerful.

    The pilot project run by West Virginia University is now part of an intensifying worldwide race to develop a secure supply of the valuable metals and, with more federal funding, it could grow to a commercial scale enterprise.

    “The ultimate irony is that the stuff that has created climate change is now a solution, if we’re smart about it,” said John Quigley, a senior fellow at the Kleinman Center for Energy Policy at the University of Pennsylvania.

    The technology that has been piloted at this facility in West Virginia could also pioneer a way to clean up vast amounts of coal mine drainage that poisons waterways across Appalachia.

    The project is one of the leading efforts by the federal government as it injects more money than ever into recovering rare earth elements to expand renewable energies and fight climate change by reducing planet-warming greenhouse gas emissions.

    For the U.S., which like the rest of the West is beholden to a Chinese-controlled supply of these valuable metals, the pursuit of rare earth elements is also a national security priority.

    Those involved, meanwhile, hope their efforts can bring jobs in clean energy to dying coal towns and clean up entrenched coal pollution that has hung around for decades.

    In Pennsylvania alone, drainage from coal piles and abandoned mines has turned waterways red from iron ore and turquoise from aluminum, killing life in more than 5,000 miles (8,000 km) of streams. Federal statistics also show about 470 square miles (about 1,200 square km) of abandoned and unreclaimed coal mine lands host more than 200 million tons of coal waste.

    The metals that chemists are working to extract from mine drainage here are lightweight, powerfully magnetized and have superior fluorescent and conductive properties.

    One aim of the Department of Energy is to fund research that proves to private companies that the concepts are commercially viable and profitable enough for them to invest their own money.

    Hundreds of millions of dollars from President Joe Biden’s 2021 infrastructure law is accelerating the effort.

    Department officials hope that by the middle of the 2030s this infusion will have spawned full-fledged commercial enterprises.

    The two most advanced projects funded by the department are the one in West Virginia treating mine drainage and another processing coal dug up by lignite mining in North Dakota.

    The first could be an important source of a number of critical metals, such as yttrium, neodymium and gadolinium, used in catalysts and magnets. The latter could be a major source of germanium and gallium, used in semiconductors, LEDs, electrical transmission components, solar panels and electric vehicle motors.

    Researchers at each site are designing a commercial-scale operation, based on their pilot projects, in hopes of landing a massive federal grant to build it out.

    The alternative would be to develop new mines, disturb more land, get permits, hire workers, build roads and connect power supplies, tasks that take years.

    “With acid mind drainage, that’s already done for you,” said Paul Ziemkiewicz, director of the Water Research Institute at West Virginia University.

    Ziemkiewicz began the mine drainage project almost a decade ago, helped by federal subsidies. He had envisioned it as a way to treat runoff, recover critical minerals and raise money for more mine cleanups in West Virginia.

    But the Biden administration’s ambitious funding for clean energy and a domestic supply of critical minerals broadened that goal.

    At the facility, drainage from a one-time coal mine — now closed and covered by a grassy slope — emerges from two pipes, and dumps about 800 gallons per minute into a retention pond.

    From there the water is routed through massive indoor pools and a series of large tanks that, with the help of lime to lower the acidity, separate out most of the silicate, iron and aluminum. That produces a pale powdery concentrate that is about 95% rare earth oxides, plus water clean enough to return to a nearby creek.

    The Department of Energy is funding research on coal wastes in various states.

    “There are literally billions of tons of coal ash and coal waste lying around, across the country. And so if we can go back in and remine those, there’s decades worth of materials there,” said Grant Bromhal, the acting director of the Department of Energy’s Division of Minerals Sustainability.

    Not only coal, but old copper and phosphate mines also hold potential, Bromhal said.

    The country won’t be able to recover metals from all of them right away, but technologies the department is helping develop can satisfy a substantial part of demand in the next 20 to 30 years, Bromhal said.

    “So if we get into the tens of percents or 50%, I think that’s in the realm of possibility,” he said.

    Other solutions to obtain more of these metals are retrieving them from discarded devices and shifting sourcing to friendly nations and away from geopolitical rivals or unstable countries, analysts say. For now, there is only a handful of critical or rare earth mineral mines in the United States, although many more are being proposed.

    One final subsidy will be required from the federal government: buy the reclaimed metals at a price that guarantees a commercially viable operation, Ziemkiewicz said.

    That way China can’t simply buy up the product or use its market dominance to drive down prices and scare away private investors, he said.

    Quigley, a former environmental protection secretary of Pennsylvania and a one-time small-city mayor in coal country, hopes to see a facility like Ziemkiewicz’s come to the Jeddo mine tunnel system in northeastern Pennsylvania.

    The Jeddo has defied decades of efforts to treat its flow, which drains a vast network of abandoned underground mines.

    It is a massive source of pollution in the Chesapeake Bay watershed, producing an estimated 30,000 to 40,000 gallons per minute.

    Bringing the Little Nescopeck Creek back to life could put people to work cleaning up the stream and creating recreational opportunities from a newly revived waterway, Quigley said.

    “This could mean a lot to coal communities, to a lot of people in the coal region,” Quigley said. “And to the country.”

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    Read more of AP’s climate coverage at http://www.apnews.com/climate-and-environment

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    Follow Marc Levy at twitter.com/timelywriter

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    The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • Parent company of Saks Fifth Avenue to buy rival Neiman Marcus

    Parent company of Saks Fifth Avenue to buy rival Neiman Marcus

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    NEW YORK — The parent company of Saks Fifth Avenue has signed a deal to buy upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion, with online behemoth Amazon holding a minority stake.

    The new entity would be called Saks Global, which will comprise the Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus and Bergdorf Goodman, as well as the real estate assets of Neiman Marcus Group and HBC, a holding company that purchased Saks in 2013.

    HBC has secured $1.15 billion in financing from investment funds and accounts managed by affiliates of Apollo, and a $2 billion fully committed revolving asset based loan facility from Bank of America, which is the lead underwriter, Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo.

    The deal comes after months of rumors that the department store chains had been negotiating a deal. But the twist is Amazon’s minority stake, which adds “a bit of spice” to an otherwise anticipated pact, according to Neil Saunders, managing director of GlobalData, a research firm. Salesforce, a cloud-based software powerhouse, will also become an investor at closing.

    The pact was announced Thursday after months of rumors that the department store chains had been negotiating a deal.

    The Wall Street Journal first reported the impending deal Wednesday.

    “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” said Richard Baker, HBC executive chairman and CEO in a statement. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”

    Both Saks and Neiman Marcus have struggled as shoppers have been pulling back on buying high-end goods and shifting their spending toward experiences, like travel and upscale restaurants. The two iconic luxury purveyors have also faced stiffer competition from luxury brands, which are increasingly opening their own stores. The deal should help reduce operating costs and create more negotiating power with vendors.

    Saks Fifth Avenue currently operates 39 stores in the U.S., including its Manhattan flagship. In early 2021, Saks spun off its website into a separate company, with the hopes of expanding that business at a time when more people were shopping online.

    Current Saks.com CEO Marc Metrick will become CEO of Saks Global, leading Saks Global’s retail and consumer businesses and driving the strategy to improve the luxury shopping experience.

    Neiman Marcus filed for bankruptcy protection in May 2020 during the first months of the coronavirus pandemic but emerged in September of that year. Like many of its peers, the privately held department store chain was forced to temporarily close its stores for several months.

    Meanwhile, other department stores are under pressure to keep increasing sales.

    Storied Lord & Taylor announced in late August 2020 it was closing all its stores after filing for bankruptcy earlier that month. It’s operating online. Macy’s announced in February of this year that it will close 150 unproductive namesake stores over the next three years including 50 by year-end.

    Consumers have proven resilient and willing to shop even after a bout of inflation, though behaviors have shifted, with some Americans trading down to lower-priced goods.

    A deal between the two luxury retailers does not resolve all the issues, especially when high-end shoppers are looking to buy luxury goods online or at luxury brands’ own stores, Saunders said.

    “As a larger entity, negotiating power will be a little better with the brands, but even a combined chain would not match the heft and power of the global luxury conglomerates, which would still hold most of the cards,” Saunders said. “As such, there is a risk that the deal might end up creating an even bigger headache for Saks.”

    Saunders noted that Amazon’s stake in the business makes sense, as it has ambitions to play more heavily in the luxury arena. The release noted that Amazon will work with Saks Global in innovating the shopping experience. Saunders said Amazon could use its ability to streamline logistics and e-commerce and create an advantage for the new entity in a market where online shopping has become more important to shoppers — especially younger ones, which both chains need to do more to attract, he said.

    Saks Global will also include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of retail real estate assets in top-tier luxury shopping destinations. Ian Putnam, currently president and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage the company’s portfolio of assets.

    Both Metrick and Putnam will report to Mr. Baker, who will serve as executive chairman of Saks Global.

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  • China is expected to announce new measures to fix its property crisis, spur growth

    China is expected to announce new measures to fix its property crisis, spur growth

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    China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year.

    Among other things, the central bank said it would reduce the minimum down payment for mortgages and remove the floor on interest rates for first and second homes.

    China’s housing market has slumped after a crackdown on excessive borrowing by property developers several years ago, dragging along a wide range of other businesses — such as home furnishing, appliances and construction — and slowing growth in the world’s No. 2 economy.

    Dozens of developers, whose legions of high-rise apartments have transformed urban landscapes across China, have defaulted on their debts. Many projects have just stalled, unfinished.

    He Lifeng, a vice premier, said officials would roll out policies to suit each city and “fight the tough battle of dealing with the risk of unfinished commercial housing.”

    “We will solidly advance key tasks such as guaranteed housing delivery and absorption of existing commercial housing,” the official Xinhua News Agency cited He as telling a top level teleconference on property policies.

    The effort to entice more families to buy homes has gained momentum after earlier moves such as interest rate cuts and government-backed financing failed to lure buyers into the market at a time when developers are struggling to deliver housing already promised and paid for.

    Housing is a mainstay of investment for Chinese, given the low level of interest rates paid by banks, and many potential buyers might be waiting for the market to bottom out before considering new purchases. Also, layoffs and other disruptions from the pandemic have left many people wary of spending.

    The announcement by the People’s Bank of China said that effective Saturday, the interest rate for first-time housing provident fund loans for under 5 years will be cut by 0.25 percentage point to 2.35%. The rate for loans over 5 years was reduced by 0.25 percentage point to 2.85%.

    Minimum down payments for loans for first homes will be 15% of the purchasing price. For second homes, it will be 25%, it said.

    Earlier Friday, officials of the National Bureau of Statistics acknowledged that domestic demand — spending by consumers and businesses — remained “insufficient” and said the government was considering further ways to revitalize the property industry after housing prices sank 9.8% in January-April from a year earlier.

    “The complexity, severity, and uncertainty of the current external environment are significantly increasing. There is insufficient effective domestic demand, high business pressure, and many risks and hidden dangers,” said Liu Aihua, a spokesperson for the bureau.

    “The foundation for recovery needs to be strengthened,” Liu said.

    The State Council, China’s Cabinet, was due to hold a news conference later Friday focusing on the property industry.

    One of the key strategies being rolled out involves local governments buying apartments that have going unsold due to weak demand, to be rented out as affordable housing in trial programs that appear to have become national policy.

    The financial news outlet Caixin reported that the housing ministry, the central bank, other government agencies and state-owned banks were setting up a joint task force to brainstorm ways to revitalize the industry.

    China’s economy grew at a robust 5.3% rate in the first quarter of this year, but that is relatively slow for a developing economy, and signs of weakness have persisted.

    The report Friday by the National Bureau of Statistics showed factory output was up 6.7% in April from a year earlier and investment in fixed assets such as factory equipment climbed 4.2%.

    But housing starts fell almost 25% year-on-year and sales as measured by floor area were down 20%. Financing for property projects fell 25%.

    Retail sales rose only 2.3% in April.

    Officials said they expected demand to rebound as the government carries out policies aimed at getting households to sell off old cars and appliances and buy new ones.

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    Associated Press researchers Yu Bing and Wanqing Chen in Beijing contributed to this report.

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  • Taiwan is selling more to the US than China in major shift away from Beijing

    Taiwan is selling more to the US than China in major shift away from Beijing

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    WASHINGTON — Whether it’s tapioca balls or computer chips, Taiwan is stretching toward the United States and away from China — the world’s No. 2 economy that threatens to take the democratically ruled island by force if necessary.

    That has translated to the world’s biggest maker of computer chips — which power everything from medical equipment to cellphones — announcing bigger investments in the U.S. last month after a boost from the Biden administration. Soon afterward, a Taiwanese semiconductor company said it was ending its two-decade-long run in mainland China amid a global race to gain the edge in the high-tech industry.

    These changes at a time of an intensifying China-U.S. rivalry reflect Taiwan’s efforts to reduce its reliance on Beijing and insulate itself from Chinese pressure while forging closer economic and trade ties with the United States, its strongest ally. The shift also is taking place as China’s economic growth has been weak and global businesses are looking to diversify following supply chain disruptions during the pandemic.

    In a stark illustration of the shift, the U.S. displaced mainland China as the top destination for Taiwan’s exports in the first quarter of the year for the first time since the start of 2016, when comparable data became available. The island exported $24.6 billion worth of goods to the U.S. in the first three months, compared with $22.4 billion to mainland China, according to Taiwan’s official data.

    Meanwhile, the island’s investments in mainland China have fallen to the lowest level in more than 20 years, dropping nearly 40% to $3 billion last year from a year earlier, according to Taiwan’s Ministry of Economic Affairs. Yet, Taiwan’s investments in the U.S. surged ninefold to $9.6 billion in 2023.

    Washington and Taipei signed a trade agreement last year, and they’re now negotiating the next phase. U.S. lawmakers also have introduced a bill to end double taxes for Taiwanese businesses and workers in the U.S.

    “Everything is motivated by … a desire to build Taiwan’s deterrent capability and their resilience, all in support of maintaining the status quo and deterring China from being tempted to take … action against Taiwan,” Assistant Secretary of State Daniel Kritenbrink said.

    The world’s biggest computer chip maker, TSMC, announced last month that it would expand its U.S. investments to $65 billion. That came after the Biden administration pledged up to $6.6 billion in incentives that would put the company’s facilities in Arizona on track to produce about one-fifth of the world’s most advanced chips by 2030.

    Apart from its U.S. investments, TSMC is putting money into Japan, a staunch U.S. supporter in the region. Foxconn, a Taiwanese conglomerate known for being Apple’s main contractor, is building manufacturing capacity in India, while Pegatron, another Taiwan business that makes parts of iPhones and computers, is investing in Vietnam.

    King Yuan Electronics Corp., a Taiwanese company specializing in semiconductor testing and packaging, said last month that it would sell off its $670 million stake in a venture in the eastern Chinese city of Suzhou. KYEC cited geopolitics, the U.S. export ban on advanced chips to China and Beijing’s policy of seeking self-sufficiency in the technology.

    “The ecological environment of semiconductor manufacturing in China has changed, and the market competition has become increasingly severe,” KYEC said in a statement.

    Exports of semiconductors, electronic components and computer equipment from Taiwan to the U.S. more than tripled from 2018 to reach nearly $37 billion last year. It’s not just tech: The island more than tripled exports of tapioca and its substitute, key ingredients in boba milk tea, to the U.S. between 2018 and 2023 and is shipping more fruits, tree nuts and farmed fish.

    The recent trade data reflect “the strategy from both Taiwan and the U.S. to reorient that trade in an effort to de-risk from China,” said Hung Tran, a nonresident senior fellow with the Atlantic Council’s GeoEconomics Center.

    The share of Taiwan’s exports to mainland China and Hong Kong fell from about 44% in 2020 to less than one-third in the first quarter of 2024. That was “a very big movement,” Tran said. “And I think that the share (of exports to mainland China and Hong Kong) will probably continue to decline.”

    Since the 1990s, Beijing has tried to balance its claim over the island with favorable economic and trade policies, aiming to foster closer ties that could make it harder for Taiwan to break away.

    When the independent-leaning Democratic Progressive Party gained power in Taiwan in 2016, the new government put forward a policy to distance the island from the mainland and boost economic ties with other countries in the region, especially in Southeast Asia. Unhappy Beijing turned to its economic leverage to try to bring Taiwan to heel.

    It has restricted travel by mainland tourists to the island and suspended imports of Taiwanese seafood, fruits and snacks. In 2021, China banned Taiwan-grown pineapples over biosecurity concerns, devastating Taiwanese farmers whose exported fruit nearly all went to the mainland.

    Ralph Cossa, president emeritus of the Honolulu-based foreign policy research institute Pacific Forum, said Beijing’s actions have helped push the island away.

    Chinese President “Xi Jinping is tactically clever but strategically foolish in many of the decisions he has made; his loyalty tests on Taiwan businessmen and other heavy-handed business practices and decisions have been a major contributor to the success of Taiwan’s” policy to distance itself from China, he said.

    And that policy will continue with Lai Ching-te, the island’s new president, Cossa said.

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    AP data reporter Aaron Kessler in Washington and videojournalist Johnson Lai in Taipei contributed.

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  • US and China plan talks on economics, including manufacturing issue, Yellen says

    US and China plan talks on economics, including manufacturing issue, Yellen says

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    GUANGZHOU, China — The U.S. and China agreed to hold talks that will address a key American complaint about China’s economic model, Treasury Secretary Janet Yellen said Saturday on the second day of an official visit to China.

    The two sides will hold “intensive exchanges” on more balanced economic growth, according to a U.S. statement issued after Yellen and Chinese Vice Premier He Lifeng held extended meetings over two days in the southern city of Guangzhou.

    They also agreed to start exchanges on combating money laundering, the U.S. statement said.

    Yellen, who headed to Beijing after starting her five-day visit in one of China’s major industrial and export hubs, said the exchange on balanced growth would create a structure to hear each other’s views and try to address American concerns about manufacturing overcapacity in China.

    “I think the Chinese realize how concerned we are about the implications of their industrial strategy for the United States, for the potential to flood our markets with exports that make it difficult for American firms to compete,” Yellen told reporters after the announcement.

    “It’s not going to be solved in an afternoon or a month, but I think they have heard that this is an important issue to us.”

    China’s official Xinhua News Agency said that the two sides had agreed to discuss a range of issues including balanced growth of the United States, China and the global economy as well as financial stability, sustainable finance and cooperation in countering money-laundering.

    It added in an initial dispatch that China had responded fully on the issue of production capacity, but did not provide details. China also expressed grave concern over American trade and economic measures that restrict China, Xinhua said.

    Chinese government subsidies and other policy support have encouraged solar panel and EV makers in China to invest in factories, building far more production capacity than the domestic market can absorb.

    The massive scale of production has driven down costs and ignited price wars for green technologies, a boon for consumers and efforts to reduce global dependence on fossil fuels. But Western governments fear that that capacity will flood their markets with low-priced exports, threatening American and European jobs.

    “It’s going to be critical to our bilateral relationship going forward and to China’s relationship with other countries that are important, and this provides a structured way in which we can continue to listen to one another and see if we can find a way forward that will avoid conflict,” Yellen told reporters.

    The exchanges on balanced growth and money laundering will be held under the framework of existing economic and financial working groups that were set up after Yellen met He in July.

    Yellen struck a positive note on joint efforts to address U.S. concerns about Chinese companies selling goods to Russia following its invasion of Ukraine.

    “We think there’s more to do, but I do see it as an area where we’ve agreed to cooperate and we’ve already seen some meaningful progress,” she said.

    Earlier state media coverage of her trip had characterized U.S. concerns about overcapacity as a possible pretext for tariffs. In a commentary published Friday night, Xinhua wrote that while Yellen’s trip is a good sign that the world’s two largest economies are maintaining communication, “talking up ‘Chinese overcapacity’ in the clean energy sector also smacks of creating a pretext for rolling out more protectionist policies to shield U.S. companies.”

    Yellen told reporters during an Alaska refueling stop en route to China that the U.S. “won’t rule out” tariffs to respond to China’s heavily subsidized manufacturing of green energy products.

    The U.S. has made efforts through legislation and executive orders to wean itself off certain Chinese technologies in order to build out its domestic manufacturing capabilities. Many members of the White House and Congress view the actions as important to maintaining national security.

    The $280 billion CHIPS and Science Act passed in 2022 aims to boost the semiconductor industry and scientific research in a bid to create more high-tech jobs in the United States and help it better compete with China. Additionally, last August, U.S. President Joe Biden signed an executive order to block and regulate high-tech U.S.-based investments going toward China.

    Yellen will hold meetings in Beijing with more senior officials and economists on Sunday and Monday.

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    Moritsugu reported from Beijing.

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  • China’s latest EV is a ‘connected’ car from smart phone and electronics maker Xiaomi

    China’s latest EV is a ‘connected’ car from smart phone and electronics maker Xiaomi

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    BEIJING — Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country’s booming but crowded market for electric cars with a sporty high-tech sedan.

    The tech company said it would begin accepting orders in China via an app on Thursday night, after founder Lei Jun wrapped up a more than two-hour presentation on the SU7 car by announcing the much-awaited price range: 215,900 yuan to 299,900 yuan (about $30,000 to $40,000).

    Government subsides have helped make China the world’s largest market for electric vehicles, and a bevy of new makers are locked in fierce competition. Most of the industry’s sales have been domestic, but Chinese makers are pushing into overseas markets with lower-priced models, posing a potential challenge to European, Japanese and American auto giants.

    Lei was not bashful about that challenge, saying that Beijing-based Xiaomi aims to become one of the world’s top five automakers in the next 15 to 20 years. It’s hard to make cars, he told an audience in a live-streamed presentation at a convention center, but added that it’s cool to succeed.

    The combined share of EVs and hybrids in China’s auto sales is likely to reach 42% to 45% this year, up from 36% in 2023, according to Fitch Ratings. But the agency said in a December report that the competition could put pressure on automakers’ short-term market share and profitability.

    Lei said Xiaomi would lose money on the basic model at 215,900 yuan, a price that undercuts the Tesla Model 3 in China. He claimed the SU7 outperformed the Tesla in most categories, though the top-line version falls short of the Porsche Taycan.

    “There’s still a long way to go for our car to become a Porsche,” he said, but that if Xiaomi keeps striving for five to 10 years, “we will eventually surpass Porsche one day.”

    Known for its affordable smartphones, smart TVs and other devices, Xiaomi aims to capitalize on that technology by connecting its cars with its phones and home appliances in what it calls a “Human x Car x Home” ecosystem.

    Lei presented the SU7 as a high-performance vehicle with a long range before highlighting its smart features, such as talking to a delivery person from the car when the doorbell rings at home. In a nod to the popularity of the iPhone, he said the system would be compatible with Apple as well as Xiaomi phones.

    Tu Le, the founder of the Sino Auto Insights consultancy, said that Xiaomi is trying to close the loop by adding transportation to a product mix already integrated into its customers’ personal and professional lives.

    “The ability to seamlessly be a continuous part of someone’s life is the holy grail for tech companies,” he said in an emailed response. “You probably don’t know anyone in Beijing that doesn’t have at least one Xiaomi product, be it a mobile phone, computer, TV, (air) purifier, or tablet.”

    As a newcomer to automaking, the company is making an educated guess that it can design and develop a car that will sell, he said. Given the sluggish Chinese economy and an ongoing EV price war, he predicted it would take a year or two to see if Xiaomi can adapt to correct any missteps and succeed.

    “They are a technology company, so that’s their advantage but they need to reconcile that with drinking through a fire hose to learn how to be a tech company that builds cars,” Le said.

    CreditSights, a financial research firm, said it expects Xiaomi’s EV division to sell 60,000 vehicles in its first year and lose money for its first two years because of high marketing and promotion costs.

    Chinese automakers trying to expand abroad face political headwinds.

    The EU is investigating Chinese subsidies to determine if they give made-in-China EVs an unfair market advantage overseas. The U.S. announced an investigation last month into Chinese-made connected cars that it says could gather sensitive information about their drivers.

    “China is determined to dominate the future of the auto market, including by using unfair practices,” President Joe Biden said when the U.S. investigation was announced. “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.’′

    China pushed back this week, filing a World Trade Organization complaint that alleges that U.S. subsides for electric vehicles discriminate against Chinese products.

    The U.S. Defense Department put Xiaomi on a blacklist in 2021 over alleged links to China’s military, but removed it a few months later after the company denied the links and sued the U.S. government.

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    Associated Press researcher Yu Bing and video producer Caroline Chen contributed to this report.

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  • Stellantis lays off about 400 salaried workers as automakers continue electric vehicle transition

    Stellantis lays off about 400 salaried workers as automakers continue electric vehicle transition

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    DETROIT — Jeep maker Stellantis is laying off about 400 white-collar workers in the U.S. as it deals with the transition from combustion engines to electric vehicles.

    The company formed in the 2021 merger between PSA Peugeot and Fiat Chrysler said the workers are mainly in engineering, technology and software at the headquarters and technical center in Auburn Hills, Michigan, north of Detroit. Affected workers were being notified starting Friday morning.

    “As the auto industry continues to face unprecedented uncertainties and heightened competitive pressures around the world, Stellantis continues to make the appropriate structural decisions across the enterprise to improve efficiency and optimize our cost structure,” the company said in a prepared statement Friday.

    The cuts, effective March 31, amount to about 2% of Stellantis’ global workforce in engineering, technology and software, the statement said. Workers will get a separation package and transition help, the company said.

    “While we understand this is difficult news, these actions will better align resources while preserving the critical skills needed to protect our competitive advantage as we remain laser focused on implementing our EV product offensive,” the statement said.

    CEO Carlos Tavares repeatedly has said that electric vehicles cost 40% more to make than those that run on gasoline, and that the company will have to cut costs to make EVs affordable for the middle class. He has said the company is continually looking for ways to be more efficient.

    U.S. electric vehicle sales grew 47% last year to a record 1.19 million as EV market share rose from 5.8% in 2022 to 7.6%. But sales growth slowed toward the end of the year. In December, they rose 34%.

    Stellantis plans to launch 18 new electric vehicles this year, eight of those in North America, increasing its global EV offerings by 60%. But Tavares told reporters during earnings calls last month that “the job is not done” until prices on electric vehicles come down to the level of combustion engines — something that Chinese manufacturers are already able to achieve through lower labor costs.

    “The Chinese offensive is possibly the biggest risk that companies like Tesla and ourselves are facing right now,’’ Tavares told reporters. “We have to work very, very hard to make sure that we bring out consumers better offerings than the Chinese.

    Last year Stellantis offered buyout and early retirement packages to about 6,400 nonunion salaried workers, but it has not said how many took the offers.

    In 2022 the company announced that it planned to close a factory in Belvidere, Illinois, and lay off 1,350 people in an effort to trim its manufacturing footprint. But during contentious contract talks last year with the United Auto Workers, Stellantis agreed to keep the plant open to make EVs, as well as add a battery factory in Belvidere.

    The world’s third-largest carmaker reported net profit of 7.7 billion euros ($8.3 billion) in the second half of last year. That was down from 8.8 billion euros in the same period a year earlier.

    The Stellantis workforce reductions come after crosstown rivals Ford and General Motors cut thousands of white-collar jobs, also due to the transition to electric vehicles.

    In the summer of 2022, Ford let go of about 4,000 full-time and contract workers in an effort to cut expenses. CEO Jim Farley has said much of Ford’s workforce did not have the right skills as it makes the transition from internal combustion to battery-powered vehicles.

    About 5,000 salaried GM workers, many in engineering, took early retirement and buyout offers last spring.

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  • Humanoid robot-maker Figure partners with OpenAI and gets backing from Jeff Bezos

    Humanoid robot-maker Figure partners with OpenAI and gets backing from Jeff Bezos

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    ChatGPT-maker OpenAI is looking to fuse its artificial intelligence systems into the bodies of humanoid robots as part of a new deal with robotics startup Figure.

    Sunnyvale, California-based Figure announced the partnership Thursday along with $675 million in venture capital funding from a group that includes Amazon founder Jeff Bezos as well as Microsoft, chipmaker Nvidia and the startup-funding divisions of Intel and OpenAI.

    Figure is less than two years old and doesn’t have a commercial product but is persuading influential tech industry backers to support its vision of shipping billions of human-like robots to the world’s workplaces and homes.

    “If we can just get humanoids to do work that humans are not wanting to do because there’s a shortfall of humans, we can sell millions of humanoids, billions maybe,” Figure CEO Brett Adcock told The Associated Press last year.

    For OpenAI, which dabbled in robotics research before pivoting to a focus on the AI large language models that power ChatGPT, the partnership will “open up new possibilities for how robots can help in everyday life,” said Peter Welinder, the San Francisco company’s vice president of product and partnerships, in a written statement.

    Financial terms of the deal between Figure and OpenAI weren’t disclosed. The collaboration will have OpenAI building specialized AI models for Figure’s humanoid robots, likely based on OpenAI’s existing technology such as GPT language models, the image-generator DALL-E and the new video-generator Sora.

    That will help “accelerate Figure’s commercial timeline” by enabling its robots to “process and reason from language,” according to Figure’s announcement. The company announced in January an agreement with BMW to put its robots to work at a car plant in Spartanburg, South Carolina, but hadn’t yet determined exactly how or when they would be used.

    Robotics experts differ on the usefulness of robots shaped in human form. Most robots employed in factory and warehouse tasks might have some animal-like features — a robotic arm, finger-like grippers or even legs — but aren’t truly humanoid. That’s in part because it’s taken decades for robotics engineers to develop robots that can walk effectively on two legs or reliably manipulate small objects.

    Whitney Rockley, co-founder and managing partner of Toronto-based venture capital firm McRock Capital, said she understands the appeal of humanoids because they’re relatable, evoking emotions and starting conversations. In practice, however, she said they’re still awkward and pose huge technical challenges, which is why she’s sticking to investing in non-humanoid robots.

    “We look at robotics and automation really practically and say, ‘What kind of timeline are we willing to commit to in order to really see commercial liftoff and deployments and applications?’” Rockley said. “And I think that the groups that are backing a lot of humanoid solutions right now, they’re in there for the long haul, which is great because you need that, but it’s going to take decades upon decades.”

    OpenAI CEO Sam Altman hinted at a renewed interest in robotics in a podcast hosted by Microsoft co-founder Bill Gates and released early this year in which Altman said the company was starting to invest in promising robotics hardware platforms after having earlier abandoned its own research.

    “We started robots too early and so we had to put that project on hold,” Altman told Gates, noting that “we were dealing with bad simulators and breaking tendons” that were distracting from the company’s other work.

    “We realized more and more over time that what we really first needed was intelligence and cognition and then we could figure out how we could adapt it to physicality,” he said.

    ——-

    The AP has signed a deal with OpenAI for it to access its news archive.

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  • Microsoft’s new deal with France’s Mistral AI is under scrutiny from the European Union

    Microsoft’s new deal with France’s Mistral AI is under scrutiny from the European Union

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    LONDON — The European Union is looking into Microsoft’s partnership with French startup Mistral AI as part of its broader review of the booming generative artificial intelligence sector to see if it raises any competition concerns.

    The 27-nation bloc’s executive commission said Tuesday in a brief statement that it’s analyzing the agreement between the two companies announced a day earlier. Microsoft declined to comment. Mistral did not respond to a request for comment.

    Microsoft said Monday it was teaming up with Mistral through a 15 million euro ($16 million) investment in the French company, which emerged less than a year ago. The agreement could cut the U.S. software giant’s reliance on ChatGPT-maker OpenAI for supplying the next wave of chatbots and other generative AI products.

    The commission, the EU’s top antitrust enforcer, said it’s including the deal as part of its broader review of the generative AI market. It’s examining agreements between digital tech giants and generative AI developers and providers.

    The EU last month started looking into Microsoft’s multibillion deal with San Francisco-based OpenAI, which could lead to a formal merger investigation.

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  • Mexico overtakes China as the leading source of goods imported to US

    Mexico overtakes China as the leading source of goods imported to US

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    WASHINGTON — For the first time in more than two decades, Mexico last year surpassed China as the leading source of goods imported to the United States. The shift reflects the growing tensions between Washington and Beijing as well as U.S. efforts to import from countries that are friendlier and closer to home.

    Figures released Wednesday by the U.S. Commerce Department show that the value of goods imported to the United States from Mexico rose nearly 5% from 2022 to 2023, to more than $475 billion. At the same time, the value of Chinese imports imports tumbled 20% to $427 billion.

    The last time that Mexican goods imported to the United States exceeded the value of China’s imports was in 2002.

    Economic relations between the United States and China have severely deteriorated in recent years as Beijing has fought aggressively on trade and made ominous military gestures in the Far East.

    The Trump administration began imposing tariffs on Chinese imports in 2018, arguing that Beijing’s trade practices violated global trade rules. President Joe Biden retained those tariffs after taking office in 2021, making clear that antagonism toward China would be a rare area of common ground for Democrats and Republicans.

    As an alternative to offshoring production to China, which U.S. corporations had long engaged in, the Biden administration has urged companies to seek suppliers in allied countries (“friend-shoring”) or to return manufacturing to the United States (“reshoring”). Supply-chain disruptions related to the COVID-19 pandemic also led U.S. companies to seek supplies closer to the United States (“near-shoring”).

    Mexico has been among the beneficiaries of the growing shift away from reliance on Chinese factories. But the picture is more complicated than it might seem. Some Chinese manufacturers have established factories in Mexico to exploit the benefits of the 3-year-old U.S.-Mexico-Canada Trade Agreement, which allows for duty-free trade in North America for many products.

    Derek Scissors, a China specialist at the conservative American Enterprise Institute, noted that the biggest drops in Chinese imports were in computers and electronics and chemicals and pharmaceuticals — all politically sensitive categories.

    “I don’t see the U.S. being comfortable with a rebound in those areas in 2024 and 2025,” Scissors said, predicting that the China-Mexico reversal on imports to the United States likely “is not a one-year blip.”

    Scissors suggested that the drop in U.S. reliance on Chinese goods partly reflects wariness of Beijing’s economic policies under President Xi Jinping. Xi’s draconian COVID-19 lockdowns brought significant swaths of the Chinese economy to a standstill in 2022, and his officials have raided foreign companies in apparent counterespionage investigations.

    “I think it’s corporate America belatedly deciding Xi Jinping is unreliable,” he said.

    Overall, the U.S. deficit in the trade of goods with the rest of the world — the gap between the value of what the United States sells and what it buys abroad — narrowed 10% last year to $1.06 trillion.

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  • Microsoft CEO Satya Nadella caps a decade of change and tremendous growth

    Microsoft CEO Satya Nadella caps a decade of change and tremendous growth

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    Satya Nadella marks his tenth year as Microsoft CEO on Sunday, capping a decade of stunning growth as he pivoted the slow-moving software giant into a laser focus on cloud computing and artificial intelligence.

    Microsoft’s stock has soared by more than 1,000% since Nadella took the helm in 2014, compared to the more gradual 185% growth of the broader S&P 500. Microsoft now has a market value of $3 trillion — more than any U.S. publicly traded company, including its longtime rival Apple.

    “Nadella’s had the biggest transformation of a tech company potentially ever,” said Wedbush Securities analyst Daniel Ives. “The only one that would rival it was (Steve) Jobs coming back to Apple and turning it around with the iPhone.”

    Microsoft has created $2.8 trillion in shareholder wealth in the past decade, meaning an investor who bought a $10,000 stake in Microsoft at the time Nadella took over and did nothing with those shares, would have a stake worth about $113,000 now.

    “Our industry does not respect tradition — it only respects innovation,” Nadella told employees in an inaugural memo 10 years ago, an opening salvo that hinted at bigger shifts to come. Microsoft declined requests for an interview.

    Now a hero to Wall Street, some were at first skeptical that such transformation could come from an insider who’d already spent 22 years at the Redmond, Washington company. He’s only the third Microsoft CEO, following Steve Ballmer, who lasted for 14 years, and Bill Gates, who co-founded the company in 1975 and took it public in 1986.

    Big changes came quickly under Nadella. He marshaled resources to build up the Azure cloud computing platform, a shift in priorities from the company’s longtime reliance on its flagship Windows operating system and the royalties it gets for each PC sold with it. And he largely put the brakes on Microsoft’s ill-fated attempts to play catch-up in the smartphone market, marked by his predecessor Ballmer’s $7.3 billion acquisition of Nokia’s phone business.

    But some of the biggest changes were in the company’s culture, a shift away from Microsoft’s brash external reputation and internal bickering to a more collaborative approach that Nadella has modeled in his own collegial personality and engineer’s mindset.

    “Microsoft is known for rallying the troops with competitive fire,” Nadella said in his 2017 autobiography. “The press loves that, but it’s not me.”

    Much of Nadella’s strength is how he stands out from the typical “very strong ego CEO,” said Raimo Lenschow, a stock analyst at Barclays who covers 36 tech companies. Instead of making bold pronouncements, Lenschow said Nadella takes a more measured approach to explaining “where he thinks the future is going.”

    And “whether it’s the person making food in the cafeteria, an engineer, finance executive, a customer, he treats everyone in the same way, with respect,” said Ives. It’s not just Wall Street analysts who think so.

    A tiny startup from Zeeland, Michigan, running a booth at January’s CES gadget show in Las Vegas caught a glimpse of Nadella’s curiosity when he showed up, shook founder Tim Murphy’s hand and asked for a demo. The product, Audio Radar, visualizes the sounds in video games for deaf and hard of hearing players.

    “He’s very down to earth,” said Murphy, who was there with a small crew including his teen son. “I gave him the pitch, played some games, and he was like, ‘It’s wonderful what you’re doing.’ Honestly, I can’t really remember too much of what he said because I was just kind of shocked.”

    Nadella has long made the accessibility of technology a priority, informed in part by his experience raising a son who was visually impaired, quadriplegic and had cerebral palsy. Zain Nadella died in 2022.

    What’s brought Microsoft to its latest heights is its emergence as an artificial intelligence leader, setting the agenda on how AI tools could get used in work and society. While Nadella has been emphasizing AI for most of his tenure, its role was not guaranteed and happened after years of careful planning that led to a close partnership with ChatGPT-maker OpenAI. (OpenAI pays The Associated Press an undisclosed fee to license its archive of news stories).

    “Historically, if you’re a cool startup that was doing something amazing, Microsoft wasn’t really your first choice,” Lenschow said. “So the fact that he got OpenAI to commit to Azure was an amazing masterstroke … it gives him a massive, competitive advantage over Google and Amazon.”

    That position was put in jeopardy late last year when OpenAI’s board of directors suddenly fired CEO Sam Altman. A weekend of behind-the-scenes maneuvers and a threatened mass exodus of employees championed by Nadella helped bring back Altman and stabilize the startup, assuaging clients and shareholders. “He handled that like he was in the World Series of Poker playing against little kids,” Ives said.

    Nadella’s tenure hasn’t been without hiccups, especially given how much of the world relies so heavily on Microsoft products — sometimes to the frustration of people using them.

    Cybersecurity experts say its tendency is to sacrifice security for convenience, including in its gung-ho rollout of AI large language models. The company’s trademark suite of work tools, Microsoft Office 365, has also been penetrated successfully in recent years in embarrassing high-profile compromises that have seen elite Russian and Chinese cyber operators access the email accounts of senior U.S. officials and members of Microsoft’s senior leadership team.

    It stepped in to provide cloud hosting to Ukraine just ahead of Russia’s 2022 invasion, but the networks serving NATO allies are constantly peppered by intrusion attempts. That, and the worsening ransomware scourge, have led Nadella to call for a cyber Geneva Convention with Russia and China.

    And despite Nadella’s stated aversion to “competitive fire,” Microsoft is once again drawing the kind of antitrust scrutiny that dogged Gates and Ballmer in earlier years. Nadella’s confident testimony at a federal court hearing last summer helped persuade a judge not to block Microsoft’s purchase of video game giant Activision Blizzard, but the company is now facing another round of questions on its partnership with OpenAI.

    None of those challenges are likely to push Nadella, 56, who made $48.5 million in total compensation last year and has also chaired Microsoft’s board since 2021, out of his leadership roles anytime soon.

    “From everything I can gather, he’s really enjoying himself,” Lenschow said. “We’re in very, very, very interesting times. I would expect him to stay for a while.”

    —-

    AP technology reporters Michael Liedtke and Frank Bajak contributed to this report.

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  • Takeaways from the AP’s investigation into how US prison labor supports many popular food brands

    Takeaways from the AP’s investigation into how US prison labor supports many popular food brands

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    In a sweeping two-year investigation, The Associated Press found goods linked to U.S. prisoners wind up in the supply chains of a dizzying array of products from Frosted Flakes cereal and Ball Park hot dogs to Gold Medal flour and Coca-Cola. They are on the shelves of most supermarkets, including Kroger, Target, Aldi and Whole Foods.

    Here are takeaways from the AP’s investigation:

    The U.S. has a history of locking up more people than any other country – currently around 2 million – and goods tied to prison labor have morphed into a massive multibillion-dollar empire, extending far beyond the classic images of people stamping license plates or working on road crews.

    The prisoners who help produce these goods are disproportionately people of color. Some are sentenced to hard labor and forced to work – or face punishment – and are sometimes paid pennies an hour or nothing at all. They are often excluded from protections guaranteed to almost all other full-time workers, even when they are seriously injured or killed on the job. And it can be almost impossible for them to sue.

    And it’s all legal, dating back largely to labor demands as the South struggled to rebuild its shattered economy after the Civil War. In 1865, the 13th Amendment to the U.S. Constitution outlawed slavery and involuntary labor– except as punishment for a crime. That clause is being challenged on the federal level, and efforts to remove similar language from state constitutions are expected to reach the ballot in about a dozen states this year.

    The AP sought information from all 50 states through public records requests and inquiries to corrections departments, linking hundreds of millions of dollars’ worth of transactions to agriculture-based prison labor in state and federal facilities over the past six years. Those figures include everything from people leased out to work at private businesses to farmed goods and livestock sold on the open market. Many of these goods came from large operations in the South, though almost every state has some sort of agriculture program.

    Reporters also found prison labor in the supply chains of giants like McDonald’s, Walmart and Costco – and in the supply chains of goods being shipped all over the world via multinational companies, including to countries that have been slapped with import bans by Washington in recent years for using prison and forced labor themselves.

    Almost all of the country’s state and federal adult prisons have some sort of work programs, employing around 800,000 people, according to a 2022 report by the American Civil Liberties Union. The vast majority of those jobs are tied to tasks like maintaining prisons, laundry or kitchen work. Some prisoners also work for states and municipalities, doing everything from cleaning up after hurricanes and tornadoes to picking up trash along bustling highways.

    But they also are contracted out to private companies either directly from their prisons or through work-release programs. They’re often hired in industries with severe labor shortages, doing some of the country’s dirtiest and most dangerous jobs like working in poultry plants, meat-processing centers and sawmills.

    The AP found that prisoners with just a few months or years left on their sentences work at private companies nationwide. Unlike work crews picking up litter in orange jumpsuits, they go largely unnoticed, often wearing the same uniforms as their civilian counterparts.

    Incarcerated people also have been contracted to companies that partner with prisons. In Idaho, they’ve sorted and packed the state’s famous potatoes, which are exported and sold to companies nationwide. In Kansas, they’ve been employed at Russell Stover chocolates and Cal-Maine Foods, the country’s largest egg producer. Though the company has since stopped, in recent years they were hired in Arizona by Taylor Farms, which sells salad kits in many major grocery stores nationwide and supplies popular fast-food chains and restaurants like Chipotle Mexican Grill.

    While prison labor seeps into the supply chains of some companies through third-party suppliers without them knowing, others buy direct. Mammoth commodity traders that are essential to feeding the globe like Cargill, Bunge, Louis Dreyfus, Archer Daniels Midland and Consolidated Grain and Barge have been scooping up millions of dollars’ worth of soy, corn and wheat straight from prison farms.

    The AP reached out for comment to the companies it identified as having connections to prison labor, but most did not respond.

    Cargill acknowledged buying goods from prison farms in Tennessee, Arkansas and Ohio, saying they constituted only a small fraction of the company’s overall volume. It added that “we are now in the process of determining the appropriate remedial action.”

    McDonald’s said it would investigate links to any such labor, and Archer Daniels Midland and General Mills, which produces Gold Medal flour, pointed to their policies in place restricting suppliers from using forced labor. Whole Foods responded flatly: “Whole Foods Market does not allow the use of prison labor in products sold at our stores.”

    Bunge confirmed it had purchased grain from corrections departments but said it sold the facilities sourcing from them in 2021, so they are “no longer part of Bunge’s footprint.”

    Corrections officials and other proponents note that not all work is forced and that prison jobs save taxpayers money. They also say workers are learning skills that can be used when they’re released and given a sense of purpose, which could help ward off repeat offenses. In some cases, labor can mean time shaved off a sentence. And the jobs provide a way to repay a debt to society, they say.

    “A lot of these guys come from homes where they’ve never understood work and they’ve never understood the feeling at the end of the day for a job well-done,” said David Farabough, who oversees Arkansas’ prison farms.

    While most critics don’t believe all jobs should be eliminated, they say incarcerated people should be paid fairly, treated humanely and that all work should be voluntary.

    “They are largely uncompensated, they are being forced to work, and it’s unsafe. They also aren’t learning skills that will help them when they are released,” said law professor Andrea Armstrong, an expert on prison labor at Loyola University New Orleans.

    —-

    The Associated Press receives support from the Public Welfare Foundation for reporting focused on criminal justice. This story also was supported by Columbia University’s Ira A. Lipman Center for Journalism and Civil and Human Rights in conjunction with Arnold Ventures. The AP is solely responsible for all content.

    ——

    Contact AP’s global investigative team at Investigative@ap.org or https://www.ap.org/tips/

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  • The Baltimore Sun is returning to local ownership — with a buyer who has made his politics clear

    The Baltimore Sun is returning to local ownership — with a buyer who has made his politics clear

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    A local buyer taking over a struggling newspaper in the 21st century is normally cause for some celebration. But The Baltimore Sun’s newly announced owner has a very specific political background, and some are concerned about what the 187-year-old publication could become.

    David D. Smith, executive chairman of the Sinclair broadcasting chain and an active contributor to conservative causes, has bought Baltimore Sun Media from the investment firm Alden Global Capital. The purchase price was not disclosed.

    Smith met with employees of The Sun on Tuesday to talk about his plans, saying he hopes to make the newsroom more profitable. He was not made available for an interview with The Associated Press.

    In a Sun story announcing the sale a day earlier, Smith said that he was in the news business because he believes “we have an absolute responsibility to serve the public interest.” He also criticized the city’s “mainstream media” while acknowledging that he began reading the paper regularly only a few months ago.

    “Have no fear of me,” Smith told the Sun newsroom on Tuesday, according to someone who was there and relayed the statement on condition of anonymity because it was a private meeting. “What you should fear is the marketplace.”

    Smith serves as executive chairman of the Maryland-based Sinclair Broadcasting Inc., which owns or operates 185 local television stations across the country and is known for infusing a right-wing sensibility into its news products. In 2018, the company ordered its anchors across the country to read a statement that largely echoed what former President Donald Trump had said about “fake news.”

    The company was founded as the Chesapeake Television Corp. by Smith’s father, Julian Sinclair Smith, and changed its name to Sinclair in the 1980s as it began expanding nationally.

    Smith made clear that he used his personal resources to purchase The Sun, which will not fall under the Sinclair umbrella and will be under local ownership for the first time in 38 years. Smith told the newspaper he had one partner: Armstrong Williams, a commentator who hosts a show on Sinclair’s affiliates.

    The Sinclair-owned Fox station in Baltimore frequently airs coverage blaming the city’s Democratic mayor, Brandon Scott, for gun violence and failing schools. And Smith has become a prominent player in local politics. In 2022, he helped finance an effort to impose term limits for some Baltimore officials.

    Tax records show Smith’s foundation has donated to the conservative group Project Veritas, which is best known for making hidden camera stings on media and liberal figures.

    “As a lifelong Baltimorean and reader of The Sun, I believe that a free and fair — unbiased — press is critically important,” said former Baltimore City Solicitor Jim Shea. “I hope that The Sun will not be controlled by those who want to spread their own partisan views.”

    Others celebrated the sale. “A late Christmas present for common sense people in Maryland looking for honest and fair reporting. Embrace a new day Baltimore!” Republican state Delegate Kathy Szliga posted on X, formerly Twitter.

    History is replete with media owners who have strong political opinions; Rupert Murdoch is only a recent example. What resonates is whether they use their products to push those views.

    “If the owner invests in it and truly cares about local news and how it is reported fairly, it could be a great thing,” said Marty Kaiser, who worked at the Sun decades ago and now runs the Capital News Service for the University of Maryland. “But his background sort of makes you pause.”

    Alden Capital, the investment firm that took control of the Sun with its purchase of Tribune Publishing in 2021, is notorious for its cost-cutting. Newspapers with local ownership — the Philadelphia Inquirer, Boston Globe and Seattle Times among them — tend to invest more in their product, said Tim Franklin, senior director of the Medill Local News Initiative at Northwestern University.

    But while the Sun has shrunk, it has remained a credible news organization, winning the Pulitzer Prize for local reporting in 2020 for its stories on a book publishing scheme that led to the former mayor’s resignation.

    It is also now competing with The Baltimore Banner, a digital-only news organization started in 2022 by hotel magnate Stewart Bainum Jr., who tried unsuccessfully to buy the Sun before launching his startup. The Banner employs more than 75 journalists — about 20% hired directly from the Sun over the past two years.

    While the region certainly has people with conservative views, turning it into a rigid conservative publication would not seem a wise business decision, said Medill’s Franklin, who was editor-in-chief of the Sun from 2004 to 2009. “One of the most important rules is to know your audience,” Franklin said, “and Baltimore is not a conservative area.”

    Smith has exhibited a pointed attitude toward the business he’s getting into. In 2018, Smith told New York magazine that he dislikes and fundamentally distrusts print media. He said the industry is so left wing as to be meaningless and that accounts for its decline. “Just no credibility,” he told writer Olivia Nuzzi in 2018.

    When asked about those comments by a Sun staffer Tuesday during a contentious meeting that left many staff members feeling depleted, Smith said he largely stood by them, according to people in attendance.

    David Simon, a former Sun journalist who later gained fame as creator of television’s “The Wire,” said Tuesday that The Sun was already a “hollow shell” of its former self before the recent sale.

    “There are no great cities without great news organizations,” Simon wrote on X, formerly Twitter, “and absent an entity that truly covers its region independently and without ideological cant, corruption and grift will be unceasing.”

    Baltimore Sun Media, winner of 16 Pulitzer Prizes, employs more than 150 people and publishes seven other publications aside from the Sun, with more than 230,000 paid subscribers total. The largest newspaper in Maryland, the Sun was founded in 1837 and was locally owned by the Abell family until the 1980s.

    ___

    Bauder, AP’s media writer, reported from New York. Skene reported from Baltimore.

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  • Manchester United announces deal to sell up to 25% of EPL club to UK billionaire Jim Ratcliffe

    Manchester United announces deal to sell up to 25% of EPL club to UK billionaire Jim Ratcliffe

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    MANCHESTER, England — After a decade without winning the Premier League, Manchester United announced Sunday that it had agreed to sell a minority stake in the storied club to Jim Ratcliffe in a deal that would also see the British billionaire and boyhood fan take control of its soccer operations.

    The record 20-time league champions have not won the title since former manager Alex Ferguson retired in 2013, prompting increased anger toward the Glazer family, United’s American owners.

    The announcement came more than a year after the club was put up for sale.

    Ratcliffe, who owns petrochemicals giant INEOS and is one of Britain’s richest people, has secured a stake of “up to 25%” in United and will invest $300 million in its Old Trafford stadium.

    Ratcliffe will provide $200 million upon completion of the deal and a further $100 million by the end of 2024, United said. In total the deal will be worth around $1.6 billion, including the $300 million of funding.

    The deal is subject to approval by the Premier League.

    United is currently eighth in the Premier League and has already been eliminated from European competition. Under-fire manager Eric ten Hag watched his team lose 2-0 at West Ham on Saturday, United’s 13th defeat in 26 games in all competitions this season.

    Ratcliffe, who was born in Failsworth, Greater Manchester, had originally bid to buy the entire majority share of around 69% held by the Glazers.

    “As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United Board that delegates us management responsibility of the operations of the club,” Ratcliffe said.

    “Whilst the commercial success of the club has ensured there have always been available funds to win trophies at the highest level, this potential has not been fully unlocked in recent times. We will bring the global knowledge, expertise and talent from the wider INEOS Sport group to help drive further improvement at the club, while also providing funds intended to enable future investment into Old Trafford.”

    The transaction will be funded by Trawlers Limited — a company wholly owned by Ratcliffe — without any debt, United said. United fans have been critical of the leveraged nature of the Glazers’ buyout that loaded debt onto the club, as well as a perceived lack of investment and the dividends taken out by the owners.

    Trawlers was named after a famous quote by former United great Eric Cantona. The Frenchman said at a news conference in 1995: “When the seagulls follow the trawler, it’s because they think sardines will be thrown into the sea.”

    Avram Glazer and Joel Glazer, United executive co-chairmen and directors, said in the statement: “Sir Jim and INEOS bring a wealth of commercial experience as well as significant financial commitment into the club. And, through INEOS Sport, Manchester United will have access to seasoned high-performance professionals, experienced in creating and leading elite teams from both inside and outside the game.

    “Manchester United has talented people right across the club and our desire is to always improve at every level to help bring our great fans more success in the future.”

    In November last year, the Glazers announced plans to seek new investment and instructed US merchant bank Raine to oversee the process, which included the potential of a full sale.

    Ratcliffe had been in competition with Qatari banker Sheikh Jassim bin Hamad Al Thani to buy out the Glazers, who also own the NFL’s Tampa Bay Buccaneers. But after months of protracted negotiations Sheikh Jassim withdrew his bid in October to leave Ratcliffe in position to take a minority share in the club.

    Sheikh Jassim always maintained he was interested in a complete takeover.

    United said Ratcliffe had paid $33 per share.

    ‘MIXED FEELINGS’

    Uncertainty over the ownership had led to fan protests outside the club’s Old Trafford stadium, while chants of “Glazers out” have been regularly heard during games.

    While Ratcliffe was long seen by fans as a popular potential owner, his minority investment means the Glazers remain in place, despite years of fan campaigns to drive them out.

    Manchester United Supporters Trust felt fans would be left with “mixed feelings” after Ratcliffe’s investment left the Glazers still in overall charge.

    “When the so-called Strategic Review was announced nearly a year ago, it finally appeared that the sale of the club was on the horizon, potentially bringing the new investment and new direction MUFC so clearly needs,” MUST said in a statement.

    “Against that backdrop, fans have very mixed feelings today. We welcome the investment from a boyhood red, Sir Jim Ratcliffe and his INEOS company, but many will wish his ownership stake was greater than the initially rumored 25%. We note the statements that he and his team will control sporting activities, yet puzzle how any organization can put its very core business in the hands of a minority shareholder, and how that meaningfully works in practice.”

    MUST added: “Today might — just might — be a step forward for Manchester United after some very difficult years.”

    The late tycoon Malcolm Glazer bought United in 2005 for 790 million pounds (then about $1.4 billion) amid a backlash from supporters.

    “The joint ambition is to create a world-class operation building on the club’s many existing strengths, including the successful off-pitch performance that it continues to enjoy,” United said Sunday.

    Initially, Ratcliffe’s INEOS had said it was aiming for “a modern, progressive, fan-centered approach to ownership.”

    It also said it was focused on United winning the Champions League for the first time since 2008 and making it the “number one club in the world once again.”

    Ratcliffe is said to be worth $15.1 billion and tried to buy Premier League club Chelsea last year.

    He already owns French club Nice, cycling franchise Team INEOS, is one-third shareholder of the Mercedes-AMG Petronas Formula One team and competes in the America’s Cup with sailing team INEOS Britannia.

    WHAT’S NEXT?

    INEOS’ responsibility for the management of the club’s soccer operations is set to include “all aspects” of both the men’s and women’s teams as well as the academies.

    Just how Ratcliffe and INEOS will implement those on a day-to-day basis remains to be seen.

    United’s statement noted the deal was still “subject to customary regulatory approvals” which is expected to take some time. The process must be ratified by the Premier League and also an official announcement made via the New York Stock Exchange.

    There have been suggestions it could take up to six weeks for changes to the club’s ownership to be established with all the relevant parties.

    BAD TIMING?

    Former United captain Gary Neville attacked the timing of the announcement, which came at 4 p.m. local time on Christmas Eve.

    “Manchester United 2023 has been a disgrace to the end,” the soccer pundit wrote on X, formerly known as Twitter. “The timing of this is truly awful and no functioning organization would even think about it.”

    Neville added: “Anyway all the very best to Jim Ratcliffe and I hope he can somehow work out a way to get the club right again and back to being something respectable on and off the pitch.”

    ___

    James Robson is at https://twitter.com/jamesalanrobson

    ___

    AP soccer: https://apnews.com/hub/soccer and https://twitter.com/AP_Sports

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  • Bristol-Myers, Rocket Lab gain; Nike, Cummins Engine fall on Friday, 12/22/2023

    Bristol-Myers, Rocket Lab gain; Nike, Cummins Engine fall on Friday, 12/22/2023

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    Stocks that traded heavily or had substantial price changes on Friday: Bristol-Myers, Rocket Lab gain; Nike, Cummins Engine fall

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

    Bristol-Myers Squibb, up $1.03 to $52.29

    The drugmaker is buying Karuna Therapeutics, maker of the antipsychotic medication KarXT.

    Karuna Therapeutics, up $102.66 to $317.85

    The biopharmaceutical company is being acquired by Bristol-Myers for a hefty premium to its recent stock price.

    Nike, down $14.49 to $108.04

    The sneaker company gave a weak sales forecast and announced $2 billion in cost cuts.

    Foot Locker, down $1.27 to $31.03

    A disappointing outlook from Nike dragged down other athletic apparel-related companies.

    Cummins Engine, down $7.01 to $236.99

    The engine maker agreed to a $1.67 billion fine to settle charges of cheating on emissions tests.

    NetEase, down $16.78 to $87.64

    New restrictions issued by China’s government could hurt revenues for online gaming companies.

    Rocket Lab USA, up $1.01 to $5.44

    The company received a contract to make and operate 18 space vehicles for the U.S. government

    US Steel, down 19 cents to $47.97

    The White House is calling for scrutiny of the steelmaker’s agreement to sell itself to a Japanese rival.

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  • FDA says fake Ozempic shots are being sold through some legitimate sources

    FDA says fake Ozempic shots are being sold through some legitimate sources

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    The U.S. Food and Drug Administration said it has seized “thousands of units” of counterfeit Ozempic, the diabetes drug widely used for weight loss, that had been distributed through legitimate drug supply sources.

    The FDA and the drug’s maker, Novo Nordisk, are testing the shots. They do not yet have information about the drugs’ identity, quality or safety, according to a statement. Five illnesses have been linked to the fake shots, but none have been serious, the FDA said Thursday.

    Some of the fake 1 milligram semaglutide shots may still be for sale, FDA said. In addition to the drug itself, the needles, pen labels, carton and accompanying health care information are also counterfeit, the agency said.

    It said the counterfeits were labeled with the lot number NAR0074 and serial number 430834149057.

    FDA advised retail pharmacies to buy authentic Ozempic only through authorized distributors and for patients to get it only through state-licensed pharmacies.

    Consumers can report suspect Ozempic packages by calling 800-332-1088 or by contacting a state complaint coordinator.

    ___

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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  • Storied US Steel to be acquired for more than $14 billion by Nippon Steel

    Storied US Steel to be acquired for more than $14 billion by Nippon Steel

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    U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion.

    The transaction is worth about $14.9 billion when including the assumption of debt. The combined company will be among the top three steel-producing companies in the world, according to 2022 figures from the World Steel Association.

    The price tag for U.S. Steel is nearly double what was offered just four months ago by rival Cleveland Cliffs. U.S. Steel, which rejected that offer, confirmed the offering price from Nippon early Monday.

    That tie-up would have created one of the top four outside of China, which dominates global steel production. U.S. Steel executives were asked about a potential pushback from U.S. regulators over security concerns on Monday.

    “This is going to increase competition here in the United States with a great ally to the United States,” answered U.S. Steel CEO David Burritt. “It’s a great fit and we do not see that as a high level risk factor. We’d say low level of risk.”

    U.S. Steel will keep its name and its headquarters in Pittsburgh, where it was founded in 1901 by J.P. Morgan, Andrew Carnegie. It will become a subsidiary of Nippon.

    China and Chinese companies have come to dominate global steel production. Of the nearly 2 billion metric tons of steel produced annually across the globe, about 54% comes from China, according to the World Steel Association.

    China’s Baowu Group, a state-owned iron company based in Shanghai, churned out nearly 120 million metric tons of steel in 2021. The combined Nippon and U.S. Steel companies will produce less than 90 million metric tons of steel combined, with most of that coming from Nippon.

    In 2022, U.S. Steel produced about 14.5 million tons.

    The U.S. currently ranks No. 4 behind China, India and Japan, and the blast furnace steel plants operated by U.S. Steel are among the more costly to operate, compared with more modern facilities that melt down scrap using arc furnaces.

    But U.S. Steel plants with blast furnaces remain integral to U.S. manufacturing, particularly automakers.

    Earlier this year U.S. Steel idled one of its blast furnaces in Granite City, Illinois, in anticipation of a lower demand for steel, citing a strike against the big three automakers in Detroit.

    Soaring prices have fueled consolidation in the steel industry this decade. Steel prices more than quadrupled near the start of the pandemic to near $2,000 per metric ton by the summer of 2021 as supply chains experienced gridlock, a symptom of surging demand for goods and the lack of anticipation of that demand.

    Nippon, which will pay $55 per share for U.S. Steel, said Monday that the deal will bolster its manufacturing and technology capabilities. It will also expand Nippon’s production in the U.S. and add to its positions in Japan, India and the ASEAN region.

    Nippon said the acquisition is anticipated to bring its total annual crude steel capacity to 86 million tons and help it capitalize on growing demand for high-grade steel, automotive and electrical steel.

    “The transaction builds on our presence in the United States and we are committed to honoring all of U. S. Steel’s existing union contracts,” Nippon President Eiji Hashimoto said in a prepared statement.

    U.S. Steel CEO David Burritt said that the sale is beneficial to the United States, “ensuring a competitive, domestic steel industry, while strengthening our presence globally.” The company will continue to run its mining and steel operations in the U.S. for its domestic customers, he said during a conference call Monday.

    Nippon said Monday that it will honor all collective bargaining agreements in place with the United Steelworkers and other employees, and is committed to maintaining its relationship with workers. Nippon has had a presence in the U.S. for almost 40 years, starting with a joint venture with Wheeling-Pittsburgh Steel in 1984 that later became a wholly owned subsidiary.

    The United Steelworkers International, however, pushed back immediately against the deal.

    The union “remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company,” said David McCall, president of United Steelworkers, in a statement.

    McCall said U.S. Steel and Nippon didn’t reach out to the union regarding the deal, and that the union plans to exercise all the measures of its agreements to protect jobs.

    “We also will strongly urge government regulators to carefully scrutinize this acquisition and determine if the proposed transaction serves the national security interests of the United States and benefits workers,” he added.

    U.S. Steel has been a symbol of industrialization since it was founded in the early 20th century and the domestic steel industry dominated globally before Japan, then China, became the preeminent steelmakers over the past 40 years.

    The company survived the Great Depression and became an integral part of U.S. efforts in World War I and II, supplying hundreds of millions of tons of steel for planes, ships, tanks and other military gear, in addition to steel for automobiles and appliances.

    During the late 1970s and early 80s — amid an energy crisis and multiple recessions — U.S. Steel cut production and spun off many of its other businesses. With oversupply and an influx of lower-priced steel imports dragging down prices into the new century, the company reorganized in 2001 and separated its energy business, which became Marathon Oil Corp.

    The 64-story U.S. Steel Tower still looms over the Pittsburgh skyline, but U.S. Steel is no longer its biggest tenant. That would be UPMC, a local health system, and its name is now at the top of the tower.

    The acquisition has been approved by the boards of both companies and is targeted to close in the second or third quarter of 2024. It still needs approval from U.S. Steel shareholders.

    Shares of United States Steel Corp. soared more than 27% Monday.

    _______________

    Business Writer Matt Ott contributed to this report from Washington, D.C.

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  • Here's what you need to know about the deadly salmonella outbreak tied to cantaloupes

    Here's what you need to know about the deadly salmonella outbreak tied to cantaloupes

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    Hundreds of people in the U.S. and Canada have been sickened and at least 10 people have died in a growing outbreak of salmonella poisoning linked to contaminated whole and pre-cut cantaloupe.

    Health officials are warning consumers, retailers and restaurants not to buy, eat or serve cantaloupe if they don’t know the source.

    That’s especially important for individuals who are vulnerable to serious illness from salmonella infection and those who care for them. High-risk groups include young children, people older than 65 and those with weakened immune systems.

    The U.S. Centers for Disease Control and Prevention is especially concerned because many of the illnesses have been severe and because victims include people who ate cantaloupe served in childcare centers and long-term care facilities.

    Here’s what we know about this outbreak:

    Overall, at least 302 people in the U.S. and 153 in Canada have been sickened in this outbreak. That includes four killed and 129 hospitalized in the U.S. and six killed and 53 hospitalized in Canada.

    The first U.S. case was a person who fell ill on Oct. 16, according to the CDC. The latest illness detected occurred on Nov. 28. Canadian health officials said people fell ill between mid-October and mid-November.

    The first recalls were issued Nov. 6 in the U.S., according to the Food and Drug Administration. Multiple recalls of whole and cut fruit have followed.

    The cantaloupes implicated in this outbreak include two brands, Malichita and Rudy, that are grown in the Sonora area of Mexico. The fruit was imported by Sofia Produce LLC, of Nogales, Arizona, which does business as TruFresh, and Pacific Trellis Fruit LLC, of Los Angeles. So far, more than 36,000 boxes or cases of cantaloupe have been recalled.

    On Dec. 15, Mexican health officials temporarily closed a melon-packing plant implicated in the outbreak.

    Roughly one-third of FDA-regulated human food imported into the U.S. comes from Mexico, including about 60% of fresh produce imports. The average American eats about 6 pounds of cantaloupe a year, according to the U.S. Department of Agriculture.

    Health officials in the U.S. and Canada are still investigating, but cantaloupes generally are prone to contamination because they are “netted” melons with rough, bumpy rinds that make bacteria difficult to remove.

    Salmonella bacteria are found in animals’ intestines and can spread if their waste comes in contact with fruit in the field. Contamination can come from tainted water used in irrigation, or in cleaning and cooling the melons.

    Poor hygienic practices of workers, pests in packing facilities and equipment that’s not cleaned and sanitized properly can also lead to contamination, the FDA says.

    The Mexico growing area saw powerful storms and hurricanes in late summer and early fall that resulted in flooding that could be a factor, said Trevor Suslow, a produce safety consultant and retired professor at the University of California, Davis.

    Once the melons are contaminated, the nubby rinds harbor nutrients that can help the salmonella bacteria grow, Suslow said.

    If the cantaloupe become moldy or damaged, the bacteria can move from the outside of the rind to the inner layer or into the flesh. Also, when the fruit is sliced — in a home kitchen, grocery store or processing plant — the bacteria can spread to the flesh.

    Cut fruit in a tray or clamshell package can harbor the bacteria. If the fruit isn’t kept very cool, the germs can grow.

    It is difficult to remove disease-causing bacteria from cantaloupe at home. Food safety experts recommend rinsing whole melons in cool water and scrubbing them with a clean produce brush and then drying completely.

    Blanching the cantaloupes briefly in very hot water is another method, Suslow said. And Purdue University researchers found that household items such as vinegar and iodine diluted in water could reduce exterior contamination with salmonella by 99%.

    For high-risk people, it might be best to avoid cantaloupe, especially pre-cut cantaloupe and especially during an outbreak, said Amanda Deering, a Purdue University food scientist.

    Understanding that certain foods can pose a serious health risk is key, she added.

    “As consumers, we just assume that our food is safe,” she said. “You don’t want to think that a cantaloupe is what’s going to take you out.”

    ___

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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  • US officials block Elf Bar-maker and others from importing 1.4 million illegal e-cigarettes

    US officials block Elf Bar-maker and others from importing 1.4 million illegal e-cigarettes

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    WASHINGTON — U.S. agents recently seized more than 1.4 million illegal e-cigarettes from overseas manufacturers, including the Chinese company behind Elf Bar, a line of fruity disposable vapes that has become the top brand among American teens, officials said Thursday.

    Officials pegged the value of the e-cigarettes seized at Los Angeles International Airport at $18 million and said they included several related brands, including Elf Bar, Lost Mary, Funky Republic and EB Create, according to the Food and Drug Administration. The agency announced the seizure with U.S. Customs and Border Protection, which helped conduct the operation.

    Many of the containers were deliberately mislabeled as toys, shoes and other household items in order to evade customs, the agencies said. An FDA spokesman said officials intercepted the shipment in July.

    Several companies’ products were involved, including those from iMiracle Shenzhen, maker Elf Bar and other disposable electronic cigarettes.

    It’s the first time authorities have publicly reported successfully blocking the company from getting its vapes into the U.S., according to agency records. The products have generated hundreds of millions of dollars in sales since late 2021. In May, the FDA instructed customs officials to begin seizing shipments from iMiracle and several other companies.

    The confiscated products will likely be destroyed, the FDA said.

    “Those shamelessly attempting to smuggle illegal e-cigarettes, particularly those that appeal to youth, into this country should take heed of today’s announcement,” Brian King, FDA’s tobacco chief, said in a statement.

    Elf Bar is the most visible of thousands of brands of cheap, disposable e-cigarettes that have poured into the U.S. from China in recent years. Its products come in flavors like strawberry melon and triple berry ice and claim to contain 5,000 “puffs” per device. After the FDA placed the import ban on some of its products, iMiracle rebranded under several new product names, including EB Design.

    The products remain widely available in convenience stores and vape shops throughout the U.S.

    In the latest government survey, 56% of teens who vape said they used Elf Bar, more than double the rate of any other e-cigarette brand, according to federal figures.

    A spokesperson for iMiracle did not immediately respond to a request for comment on Thursday.

    ___

    This story has been corrected to reflect that the operation took place in July, not November, and that some seized brands were unrelated to Elf Bar.

    ___

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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