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  • Microsoft’s bid for Activision gets UK approval. It removes the last hurdle to the gaming deal

    Microsoft’s bid for Activision gets UK approval. It removes the last hurdle to the gaming deal

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    LONDON — Microsoft’s purchase of video game maker Activision Blizzard won final approval Friday from Britain’s competition watchdog, reversing its earlier decision to block the $69 billion deal and removing a last obstacle for one of the largest tech transactions in history.

    The Competition and Markets Authority’s blessing was expected after it gave preliminary approval last month to a revamped Microsoft proposal meant to address concerns that the deal would harm competition and hurt gamers.

    It signals certain victory in the Xbox maker’s quest to acquire Activision, maker of the popular Call of Duty game franchise.

    The companies had agreed to extend an original mid-July deadline to Oct. 18 to overcome the British regulator’s objections. The approval also helps Microsoft avoid paying Activision a $4.5 billion penalty if the deal doesn’t close.

    “The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers,” the watchdog said.

    Microsoft President Brad Smith said the company was grateful for the “thorough review and decision.”

    “We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide,” he said.

    Activision CEO Bobby Kotick also welcomed the news: “We look forward to becoming part of the Xbox Team.”

    Since the deal was announced in January 2022, Microsoft has secured approvals from antitrust authorities covering more than 40 countries. Crucially, it got a thumbs-up from the 27-nation European Union after agreeing to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.

    But the deal faced resistance from British and American regulators who worried it would stifle competition in the video game industry. Top rival Sony also feared it would limit PlayStation gamers’ access to Call of Duty, Activision’s long-running military shooter series.

    The U.S. Federal Trade Commission lost a court bid to pause the deal so that its in-house judge could review it. The FTC hasn’t given up, appealing the decision and last month filing notice of its plan to resume that trial. That signals the U.S. regulator’s intention to unwind the deal even after it closes.

    In the meantime, the U.K. regulator was the last major obstacle to the transaction going through. The CMA’s approval came after Microsoft updated its offer in August.

    Under the restructured deal, Microsoft will sell off cloud streaming rights outside of the EU and three other European countries for all current and new Activision games released over the next 15 years to French game studio Ubisoft Entertainment.

    British regulators had initially blocked the transaction in April over concerns Microsoft could withhold Activision titles from the emerging cloud gaming market, where players can avoid buying pricey consoles and stream games to their tablets or phones.

    Then, in an unprecedented move, the U.K. watchdog delayed its final decision, saying it needed to reconsider and agreeing with Microsoft to put appeal proceedings on hold.

    One factor was the EU’s approval, granted after Microsoft promised to automatically license Activision titles royalty-free to cloud gaming platforms. Another “material change of circumstance” that the watchdog said it needed to consider, according to court documents, was an agreement Microsoft signed with Sony to make Call of Duty available on PlayStation for at least 10 years.

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    AP Technology Writer Matt O’Brien contributed from Providence, Rhode Island.

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  • Auto workers escalate strike as 8,700 workers walk out at Ford Kentucky Truck Plant in Louisville

    Auto workers escalate strike as 8,700 workers walk out at Ford Kentucky Truck Plant in Louisville

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    DETROIT — The United Auto Workers union significantly escalated its strikes against Detroit’s Three automakers Wednesday when 8,700 workers walked off their jobs at Ford’s Kentucky truck plant.

    The surprise move about 6:30 p.m. took down the largest and most profitable Ford plant in the world. The sprawling factory makes pricey heavy-duty F-Series pickup trucks and large Ford and Lincoln SUVs.

    UAW President Shawn Fain said in a statement that the union has waited long enough “but Ford hasn’t gotten the message” to bargain for a fair contract.

    “If they can’t understand that after four weeks, the 8,700 workers shutting down this extremely profitable plant will help them understand it,” Fain said.

    The strike came nearly four weeks after the union began its walkouts against General Motors, Ford and Jeep maker Stellantis on Sept. 15, with one assembly plant from each company.

    In a statement, Ford called the strike expansion “grossly irresponsible” but said it wasn’t surprising given the UAW leadership’s statements that it wanted to keep Detroit automakers hobbled with “industrial chaos.”

    A Ford executive said the union set up a meeting at the company’s Dearborn, Michigan, headquarters Wednesday afternoon where Fain asked if the company had another offer.

    High-ranking Ford executives responded that they are working on possibly bringing electric vehicle battery plants into the UAW national contract, essentially making them unionized. But they didn’t have a significantly different economic offer, the executive said. Fain was told the company put a strong offer on the table, but there wasn’t a lot of room to increase it and keep it affordable for the business, the executive said.

    Fain responded by saying, if that’s the company’s best offer, “You just lost the Kentucky Truck Plant,” said the executive.

    The UAW expanded its strikes on Sept. 22, adding 38 GM and Stellantis parts warehouses. Assembly plants from Ford and GM were added the week after that. All told, about 25,000 workers have walked off their jobs at the three automakers.

    Thus far, the union has decided to target a small number of plants from each company rather than have all 146,000 UAW members at the automakers go on strike at the same time.

    Last week, the union reported progress in the talks and decided not to add any more plants. This came after GM agreed to bring joint-venture electric vehicle battery factories into the national master contract, almost assuring that the plants will be unionized.

    Battery plants are a major point of contention in the negotiations. The UAW wants those plants to be unionized to assure jobs and top wages for workers who will be displaced by the industry’s ongoing transition to electric vehicles.

    Since the start of the strike, the three Detroit automakers have laid off roughly 4,800 workers at factories that are not among the plants that have been hit by the UAW strikes.

    The companies say the strikes have forced them to impose those layoffs. They note that the job cuts have occurred mainly at factories that make parts for assembly plants that were closed by strikes. In one case, layoffs have been imposed at a factory that uses supplies from a parts factory on strike.

    The UAW rejects that argument. It contends that the layoffs are unjustified and were imposed as part of the companies’ pressure campaign to persuade UAW members to accept less favorable terms in negotiations with automakers. The factories that have been affected by layoffs are in six states: Michigan, Ohio, Illinois, Kansas, Indiana and New York.

    Sam Fiorani, an analyst with AutoForecast Solutions, a consulting firm, said he thinks the layoffs reflect a simple reality: The automakers are losing money because of the strikes. By slowing or idling factories that are running below their capacities because of strike-related parts shortages, Fiorani said, the companies can mitigate further losses.

    “It doesn’t make sense to keep running at 30% or 40% of capacity when it normally runs at 100%,” he said. “We’re not looking at huge numbers of workers relative to the ones actually being struck. But there is fallout.”

    In a statement, Bryce Currie, vice president of Americas manufacturing at Ford, said: “While we are doing what we can to avoid layoffs, we have no choice but to reduce production of parts that would be destined for a plant that is on strike.”

    Fain countered in a statement that the automakers were using layoffs to pressure the union into settling the strike. With billions in profits, Fain argued, the companies don’t have to lay off a single employee.

    Striking workers are receiving $500 a week from the union’s strike pay fund. By contrast, anyone who is laid off would qualify for state unemployment aid, which, depending on a variety of circumstances, could be less or more than $500 a week.

    “Their plan won’t work,” Fain said. “The UAW will make sure any worker laid off in the Big Three’s latest attack will not go without an income.”

    Fiorani said that if the strike widens, more workers will likely be laid off at non-striking plants. Once metal stamping factories that supply multiple assembly plants have produced enough parts for non-striking facilities, the companies would likely shut them down.

    “Once you’ve filled up the stocks for the other plants you supply,” he said, “you have to lay off the workers and wait out the strike.”

    Separate companies that manufacture parts for the automakers are likely to have laid off workers but might not report them publicly, said Patrick Anderson, CEO of the Anderson Economic Group in Lansing, Michigan.

    A survey of parts supply companies by a trade association called MEMA Original Equipment Suppliers found that 30% of members have laid off workers and that more than 60% expect to start layoffs in mid-October.

    Fiorani said that while larger parts suppliers can likely withstand the strike, smaller companies that make parts for the bigger companies might not have enough cash or the ability to borrow to outlast the job actions. Some, he said, may have a couple dozen workers “and don’t have billions in value to use as collateral in loans,” he said.

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  • Warren Buffett’s Berkshire Hathaway keeps selling off its HP shares at a loss this week

    Warren Buffett’s Berkshire Hathaway keeps selling off its HP shares at a loss this week

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    Warren Buffett’s Berkshire Hathaway continued selling off more of its HP Inc. shares this week at a loss and dropped its stake below 10% of the maker of printers and computers

    FILE – Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview, May 7, 2018, in Omaha, Neb. Investors soon won’t be able to follow Buffett’s every move in HP Inc.’s stock if the billionaire’s company keeps selling off shares of the printer and computer maker. That’s because Berkshire Hathaway is about to drop below 10% ownership of HP after the latest sales of nearly 5 million shares that Buffett’s company disclosed late Monday, Oct. 2, 2023. (AP Photo/Nati Harnik, File)

    The Associated Press

    Warren Buffett’s Berkshire Hathaway continued selling off more of its HP Inc. shares at a loss this week and dropped its stake below 10% of the printer and computer maker.

    Berkshire said in a filing with the Securities and Exchange Commission that the latest sale of over 3 million shares Tuesday raised more than $80 million. Berkshire said Monday it had just sold off 5 million other shares.

    But HP’s shares have been selling around $26 dollars this week after taking a sharp fall of nearly 14% over the past month. The stock of the Palo Alto, California-based company was selling in the mid $30s last spring when Berkshire first bought it.

    It’s still not clear whether Buffett plans to unload all of Berkshire’s HP shares because he doesn’t comment on stock sales while Berkshire is still making them. He only discloses what he’s required to as a substantial owner of the stock.

    Berkshire used to own more than 12% of HP’s stock before it started selling off the shares last month. Now that Berkshire owns just under 10% of the stock, the Omaha, Nebraska-based conglomerate won’t have to disclose every transaction.

    So investors who want to follow Buffett’s moves will have to wait for the quarterly updates on Berkshire’s roughly $350 billion portfolio to learn more. And because the latest HP sales took place in the fourth quarter of this year, the next quarterly update that might show new transactions won’t come until February.

    At this point, it appears the HP investment may be more likely to wind up like the ill-fated IBM purchases Buffett made in 2011 rather than the wildly successful Apple investment that is now the biggest holding in Berkshire’s portfolio. Buffett acknowledged in 2018 that he had been wrong about IBM and sold off the stock for little gain after six years.

    Investing in technology stocks has always been hard for Buffett and he shied away from it for years because he said it was too hard to pick the long-term winners in the fast-moving sector. Buffett feels comfortable investing in Apple because he looks at it as a consumer products company with extremely devoted customers.

    Besides stocks, Berkshire owns a broad assortment of entire companies, including Geico insurance, BNSF railroad, several major utilities and an assortment of manufacturing and retail businesses including well-known brands like Dairy Queen, See’s Candy and Helzberg Diamonds.

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  • Jury sees FTX ads with Tom Brady, Larry David, as fraud case is rolled out against Sam Bankman-Fried

    Jury sees FTX ads with Tom Brady, Larry David, as fraud case is rolled out against Sam Bankman-Fried

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    NEW YORK — Splashy advertisements featuring star Tom Brady and comedian Larry David were among the first evidence seen by jurors Wednesday as prosecutors launched a historic fraud case against cryptocurrency maven Sam Bankman-Fried, depicting him as a villain who portrayed himself as the Robin Hood of the crypto world.

    Assistant U.S. Attorney Nathan Rehn said in his opening statement in Manhattan federal court that it was only a year ago that Bankman-Fried seemed to be “on top of the world,” operating the multibillion dollar company he founded, FTX, a seemingly pioneering cryptocurrency trading platform.

    Rehn said the 31-year-old lived in a $30 million apartment in the Bahamas, jetted around the world on private planes, socialized with celebrities and spent billions of dollars as he flaunted power and made big political donations to gain influence in Washington over cryptocurrency regulation.

    The prosecutor, though, said that the son of two Stanford law professors was not as he seemed.

    “Sam Bankman-Fried was committing a massive fraud by taking billions of dollars from thousands of victims,” Rehn said. When his businesses were collapsing, he backdated documents and tried to cover up his crimes by deleting messages and ordering employees to automatically delete all messages every month, the prosecutor said.

    Adam Yedidia, one of the trial’s first witnesses, supported the government’s claims when he testified that he met Bankman-Fried and they became “longtime friends” when they were both students at the Massachusetts Institute of Technology before they worked and lived together in the Bahamas.

    Yedidia said he quit FTX and stopped talking to Bankman-Fried when he learned in early November of last year that Bankman-Fried had used FTX customer deposits to pay back creditors of Alameda Research, Bankman-Fried’s crypto hedge fund.

    On the stand, Yedidia confirmed he was testifying under an immunity order that will prevent him from being prosecuted as long as he testifies truthfully. He said the protection seemed necessary because, as an FTX developer, he might have unwittingly written code that contributed to a crime. His testimony will continue Thursday.

    Bankman-Fried became a target of investigators when FTX collapsed last November amid a rush of customers seeking to recover their deposits, less than a year after Bankman-Fried spent millions of dollars on the 2022 Super Bowl with celebrity advertisements promoting FTX as the “safest and easiest way to buy and sell crypto.”

    David, along with other celebrities including Brady and basketball star Stephen Curry, have been named in a lawsuit that argued their celebrity status made them culpable for promoting the firm’s failed business model.

    Bankman-Fried was extradited to the United States from the Bahamas after his arrest last December. He was first ordered to remain at home with his parents in Palo Alto, California, as part of a $250 million bail package, but his bond was revoked and he was jailed in August after Judge Lewis A. Kaplan concluded he’d tried to influence trial witnesses.

    The casting of Bankman-Fried as the bad boy of crypto was contested by defense lawyer Mark Cohen, who told jurors in his opening statement that his client had “a very different story” to tell than prosecutors about what happened as he built his cryptocurrency empire between 2017 and 2022.

    “Sam didn’t defraud anyone, didn’t intend to defraud anyone,” he told jurors.

    He called Bankman-Fried a “math nerd who didn’t drink or party,” someone who launched his businesses after being educated at MIT and working on Wall Street for several years.

    Cohen said Bankman-Fried’s actions in the final days as head of his companies prove that he believed he was managing a liquidity crisis caused by cryptocurrency values that collapsed by over 70 percent and criticism from one of his biggest competitors that caused a run on his companies by customers seeking to recover their deposits.

    Cohen said Bankman-Fried’s lieutenants failed to do their jobs, including setting up appropriate financial hedges that would have protected FTX from last year’s crash in crypto prices.

    He said the employees also failed to close software loopholes, among multiple reasons why FTX failed that were not Bankman-Fried’s fault.

    “Sam acted in good faith and made, at the time, what were considered sound businesses decisions,” he said.

    “It is not a crime to be a CEO of a company that filed for bankruptcy,” Cohen said. “It’s not a crime to try to get Tom Brady to go on ads for your company.”

    Bankman-Fried faces seven charges, including wire fraud and conspiracy. In court Wednesday, he sat with a water bottle and a laptop computer in front of him.

    Assistant U.S. Attorney Rehn said three former executives at Bankman-Fried’s companies will testify during the trial, including Caroline Ellison, his sometimes girlfriend who has pleaded guilty to charges in the case along with two other former executives who also have pleaded guilty.

    Seated in the first row at the trial was U.S. Attorney Damian Williams, who said months ago that the fraud surrounding FTX was one of the biggest in U.S. history. Also in the courtroom were Bankman-Fried’s parents, who arrived to court holding hands.

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  • Facing increasing pressure from customers, some miners are switching to renewable energy

    Facing increasing pressure from customers, some miners are switching to renewable energy

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    SOROWAKO, Indonesia — Red hot sparks fly through the air as a worker in a heat-resistant suit pokes a long metal rod into a nickel smelter, coaxing the molten metal from a crucible at a processing facility on the Indonesian island of Sulawesi.

    The smelter run by global mining firm Vale and powered by electricity from three dams churns out 75,000 tons of nickel a year for use in batteries, electric vehicles, appliances and many other products.

    While the smelting creates heavy emissions of greenhouse gases, the power used is relatively clean. Such possible reductions in emissions come as demand for critical minerals like nickel and cobalt is surging as climate change hastens a transition to renewable energy.

    Mining operations account for some 4%-7% of global greenhouse gas emissions, according to global consulting firm McKinsey & Company. But some miners are moving to reduce use of fossil fuels in extracting and refining, partly due to pressure from downstream customers that want more sustainable supply chains.

    Located beside a crystal-blue lake in the lush jungle of Sorowako, South Sulawesi, Vale Indonesia — a subsidiary of Vale international — runs its smelters entirely from hydroelectricity. Vale says that can reduce its emissions by over 1.115 million tons of carbon dioxide equivalent a year, compared to using diesel. Vale claims it has reduced its greenhouse gas emissions nearly a fifth since 2017.

    As demand for materials needed for batteries, solar panels and other components vital for cutting global emissions rises, carbon emissions by miners and refiners will likewise rise unless companies actively work to decarbonize.

    Experts say improved technology, pressure from customers and enforcement of clean energy policies all are needed to keep moving toward more sustainable mining and refining practices while raising output to keep pace with global needs for pivoting away from reliance on polluting fossil fuels.

    Other companies and countries around the world also are reducing use of fossil fuels in their mining operations. Solar plants in Chile help power the mining sector, which consumes much of the country’s electricity demand to produce copper, lithium and other materials. In recent years, wind power has helped electrify the Raglan Mine in Canada.

    Companies are learning from past mistakes of the industrial revolution, where reliance on fossil fuels was paramount for development, said Michael Goodsite, a pro vice chancellor and professor of civil and environmental engineering at the University of Adelaide in Australia.

    “I think as you see the future of certain operations, you’ll see them transitioning,” he said. “The way that they transition and how they move from fossil fuel operations to other energy sources can and should be learned from by others.”

    Indonesia is the world’s largest nickel producer and Indonesian President Joko Widodo has promoted the country developing its own industries.

    The push to cut emissions and use cleaner energy has been helped by investment and interest from governments and multinational companies. Volvo, Mercedes, Hyundai, Apple and other manufacturers need materials made in a more sustainable way to meet their own environmental, social and governance, or ESG, commitments.

    Widodo visited Vale Indonesia’s Sorowako facilities in March, the same month a deal was signed for a $4.5 billion nickel procession plant to be built by Vale Indonesia with investment by Ford Motor Co.

    “Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produced within the same ESG standards as … our business around the world,” Christopher Smith, Ford’s chief government affairs officer, said at a signing ceremony for a new $4.5 billion nickel processing plant in Indonesia with Vale Indonesia in March this year.

    Even companies already taking steps to decarbonize are still reliant on at least some fossil fuels.

    At Vale Indonesia in Sorowako, coal is still used to power drying and reduction kilns. The company’s CEO, Febriany Eddy, said she plans to switch such operations to liquefied natural gas — cleaner but still another fossil fuel.

    It’s the best option available given current technology, she said in an interview with The Associated Press.

    “I have two options in front of me: I continue to say that there is no viable option, that we will wait until that perfect solution is to come, which (could take) 15 or 20 years to come. Or I work with LNG first, knowing it is not a perfect solution, knowing it is a transition only,” Eddy said. “But with conversion to LNG, I can reduce 40% of my emissions.”

    The use as LNG as a “bridge fuel” has been contested by climate experts, as the fuel releases climate-warming methane and carbon dioxide when it’s produced, transported and burned.

    Initial costs for switching to, expanding and building new renewable infrastructure are another steep barrier.

    It took decades to recoup costs from building the three hydropower dams in the remote, sparsely populated area, that are used to power Vale’s Sorowako facilities. But now, having that infrastructure means big savings at a time when global energy prices are high.

    “Hydropower isn’t just reducing our carbon emissions, but also reducing our costs today because we are no longer that (vulnerable) to fuel and coal costs— because we have hydropower,” Eddy said.

    Having mining operations powered by renewable sources instead of fossil fuels could also help unlock green financing and attract future investors, said Aimee Boulanger, executive director of the Initiative for Responsible Mining Assurance.

    “The finance and investment sector is more tuned in than it ever has before to the environmental and social responsibility of supply chains and their investments in them. And they’re looking at greenhouse gas emissions,” she said. “When the world is recovering from a global pandemic and facing the global crisis of climate change, there’s never been a time when they’ve been more interested in these issues.”

    While many companies are stepping up efforts to decarbonize their supply chains, others — such as many of those making green energy materials in China, have less stringent requirements for their materials.

    “We can find jurisdictions around the world that — if they’re able to do things cheaply because they have access to fossil fuels and they already have the capital assets and the capital expenditures— they’re going to continue doing that,” Goodsite said when asked about Chinese businesses.

    Ultimately, investors and consumers play a vital role in getting companies to clean up their operations, he said.

    But phasing out the mining industry’s reliance on fossil fuels will be costly, especially as the United States and other countries build up the capacity to bring production of critical materials onshore.

    “If the end users care about them coming from …a green energy based process… then we all need to be prepared to pay a significant premium for that,” Goodsite said.

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Auto workers still have room to expand their strike against car makers. But they also face risks

    Auto workers still have room to expand their strike against car makers. But they also face risks

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    Even after escalating its strike against Detroit automakers on Friday, the United Auto Workers union still has plenty of leverage in its effort to force the companies to agree to significant increases in pay and benefits.

    Only about 12% of the union’s membership is so far taking part in the walkout. The UAW could, if it chose to, vastly expand the number of workers who could strike assembly plants and parts facilities of General Motors, Ford and Stellantis, the owner of the Jeep and Ram brands.

    Yet the UAW’s emerging strategy also carries potentially significant risks for the union. By expanding its strike from three large auto assembly plants to all 38 parts distribution centers of GM and Ford, the UAW risks angering people who might be unable to have their vehicles repaired at service centers that lack parts.

    The union’s thinking appears to be that by striking both vehicle production and parts facilities, it will force the automakers to negotiate a relatively quick end to the strike, now in its second week. To do so, though, some analysts say the union might have to act even more aggressively.

    “We believe the next step for UAW is the more nuclear option — going for a much more widespread strike on the core plants in and around Detroit,” said Daniel Ives, an analyst with Wedbush Securities. “That would be a torpedo.”

    Sam Abuelsamid, an analyst at the consulting firm Guidehouse Insights, suggested that with so many workers and factories still running, the union has a number of options with which to squeeze the companies harder.

    “They could add more assembly plants to the list,” Abuelsamid said. “They could target more of the plants that are building the most profitable vehicles.”

    As examples, he mentioned a plant in Flint, Michigan, where GM builds heavy-duty pickups, and a Stellantis factory in Sterling Heights, Michigan, that produces Ram trucks.

    All three companies said that talks with the union continued on Saturday, though officials said they expected no major announcements.

    In Canada on Saturday, Ford workers began voting on a tentative agreement that their union said would increase base pay by 15% over three years and provide cost-of-living increases and $10,000 ratification bonuses. The tentative deal was forged earlier this week, hours before a strike deadline.

    The union, Unifor, said the deal, which covers 5,600 workers, also includes better retirement benefits. If the deal is ratified in voting that will end Sunday morning, the union will use it as a pattern for new contracts at GM and Stellantis plants in Canada.

    In the United States, the UAW began its walkout more than a week ago by striking three assembly plants — one each at GM, Ford and Stellantis. In expanding the strike on Friday, the UAW struck only the parts-distribution centers of GM and Stellantis. Ford was spared from the latest walkouts because of progress that company has made in negotiations with the union, said UAW President Shawn Fain.

    Striking the parts centers is designed to turn up pressure on the companies by hurting dealers who service vehicles made by GM and Stellantis, the successor to Fiat Chrysler. Service shops are a profit center for dealers, so the strategy could prove effective. Millions of motorists depend on those shops to maintain and repair their cars and trucks.

    “It severely hits the dealerships, and it hurts the customers who purchased those very expensive vehicles in good faith,” said Art Wheaton, a labor expert at Cornell University. “You just told all your customers, ‘Hey we can’t fix those $50,000 to $70,000 cars we just sold you because we can’t get you the parts.’ ”

    The more combative union has declined to discuss its strike strategy publicly. Fain has said repeatedly that a critical part of its plan is to keep the companies guessing about the UAW’s next move. Indeed, the union has shown unusual discipline in sticking to its talking points.

    On a picket line Friday, Fain was asked whether striking against the spare-parts centers would hurt — and potentially alienate — consumers.

    “What has hurt the consumers in the long run is the fact the companies have raised prices on vehicles 35% in the last four years,” he shot back. “It’s not because of our wages. Our wages went up 6%, the CEO pay went up 40%. “

    Selling parts and performing service is highly profitable for car dealers. AutoNation reported a gross profit margin of 46% from service shops at its dealerships last year. The problem for the companies is that dealerships and other repair shops typically have lean inventories and depend on receiving parts quickly from the manufacturers’ warehouses.

    Mike Stanton, president of the National Automobile Dealers Association, said his members want to avoid anything that would impair customer service, “so we certainly hope automakers and the UAW can reach an agreement quickly and amicably.”

    To make up for the loss of striking workers, the automakers are weighing their options, including staffing the parts warehouses with salaried workers.

    “We have contingency plans for various scenarios and are prepared to do what is best for our business and customers,” said David Barnas, a GM spokesman. “We are evaluating if and when to enact those plans.”

    Similarly, Jodi Tinson, a Stellantis spokeswoman, said, “We have a contingency plan in place to ensure we are fulfilling our commitments to our dealers and our customers.” She declined to provide additional details.

    In negotiating with the companies, the union is pointing to the carmakers’ huge recent profits and high CEO pay as it seeks wage increases of about 36% over four years. The companies have offered a little over half that amount.

    The companies have said they cannot afford to meet the union’s demands because they need to invest profits in a costly transition from gas-powered cars to electric vehicles. They have dismissed out of hand some of the demands, including 40 hours’ pay for a 32-hour work week.

    ___

    Associated Press writer Alexandra Olson in New York contributed to this report.

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  • Meet Lachlan Murdoch, soon to be the new power behind Fox News and the Murdoch empire

    Meet Lachlan Murdoch, soon to be the new power behind Fox News and the Murdoch empire

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    For Lachlan Murdoch, this moment has been a long time coming. Assuming, of course, that his moment has actually arrived.

    On Thursday, his father Rupert Murdoch announced that in November he’ll step down as the head of his two media companies: News Corp. and Fox Corp. Lachlan will become the chair of News Corp. while remaining chief executive and chair at Fox Corp., the parent of Fox News Channel.

    The changes make Rupert’s eldest son the undisputed leader of the media empire his father built over decades. There’s no real sign that his siblings and former rivals James and Elisabeth contested him for the top job; James in particular has distanced himself from the company and his father’s politics for several years. But Rupert, now 92, has long had a penchant for building up his oldest children only to later undermine them — and sometimes to set them against one another — often flipping the table without notice.

    Given Rupert Murdoch’s advanced age, this might be his last power move. But there’s a reason the HBO drama “ Succession ” was often interpreted as a thinly disguised and dark satire of his family business. In Murdoch World, as in the fictional world of the Roy family, seemingly sure things can go sideways in an instant, particularly when unexpected opportunities arise.

    Lachlan Murdoch has lived that first hand. Born in London, he grew up in New York City and attended Princeton, where he focused not on business, but philosophy. His bachelor’s thesis, titled “A Study of Freedom and Morality in Kant’s Practical Philosophy,” addressed those weighty topics alongside passages of Hindu scripture. The thesis closed on a line from the Bhagavad Gita referencing “the infinite spirit” and “the pure calm of infinity,” according to a 2019 article in The Intercept.

    Béatrice Longuenesse, Lachlan’s thesis advisor at Princeton, confirmed the accuracy of that report via email.

    After graduation, though, Lachlan plunged headlong into his father’s business, moving to Australia to work for the Murdoch newspapers that were once the core of News Corp.’s business. Many assumed he was being groomed for higher things at News Corp., and they were not wrong. Within just a few years, Lachlan was deputy CEO of the News Corp. holding company for its Australian properties; shortly thereafter, he took an executive position at News Corp. itself and was soon running the company’s television stations and print publishing operations.

    Lachlan’s ascent came to an abrupt halt in 2005, when he resigned from News Corp. with no public explanation. According to Paddy Manning, an Australian journalist who last year published a biography of Lachlan Murdoch, the core problem involved two relatively minor issues on which Lachlan disagreed with Roger Ailes, who then ran Fox News.

    “The real point was that Lachlan felt Rupert had backed his executives over his son,” Manning said in an interview. “So Lachlan felt, ‘If I’m not going to be supported, then what’s the point?’” Manning did not have direct access to Lachlan for his book “The Successor,” but said he spoke in depth with the people closest to his subject.

    Lachlan returned to Australia, where he has often described feeling most at home, and founded an investment group that purchased a string of local radio stations among other properties.

    While he was away, News Corp. entered choppy waters. The U.K. phone-hacking scandal, in which tabloid journalists at the News of the World and other Murdoch-owned publications had found a way to listen to voicemails of the British royal family, journalistic competitors and even a missing schoolgirl, had seriously damaged the company. The fracas led to resignations of several News Corp. officials, criminal charges against some, and the closure of News of the World as its finances went south.

    Manning said that the damage the scandal inflicted on News Corp. — and on both Lachlan Murdoch’s father and his brother James, chief executive of News’ British newspaper group at the time — helped pull Lachlan back to the company.

    “He was watching the family tear itself apart over the phone-hacking scandal,” Manning said. Lachlan was “instrumental in trying to circle the wagons and turn the guns outwards, and stop Rupert from sacking James.”

    While it took more convincing, Lachlan eventually returned to the company in 2014 as co-chairman of News Corp. alongside James.

    Not long afterward, Ailes was forced out of his job at Fox News following numerous credible allegations of sexual harassment.

    Lachlan Murdoch has drawn criticism from media watchdogs for what many called Fox News’ increasingly conspiratorial and misinformation-promoting broadcasts. The network hit a nadir following the 2020 election when voting machine company Dominion Voting Systems sued Fox News for $1.6 billion, alleging that Fox knowingly promoted false conspiracy theories about the security of its voting machines.

    Fox settled that suit for $787.5 million in March of this year. A similar lawsuit filed by Smartmatic, another voting-machine maker, may go to trial in 2025, Fox has suggested.

    In certain respects, though, Lachlan Murdoch’s behavior suggests some ambivalence about his role at News Corp. In 2021 he moved back to Sidney and has been mixing commuting and remote work from Australia ever since. “I think there’s a legitimate question about whether you can continue to do that and for how long” while running companies based in the U.S., Manning said.

    ___

    Associated Press climate and environmental coverage receives funding from the Quadrivium foundation, founded by James and Kathryn Murdoch. More information about AP climate initiative can be found here. The AP is solely responsible for all content.

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  • Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

    Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

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    COLUMBUS, Ohio — The same Ohio river valley where the Wright brothers pioneered human flight will soon be manufacturing cutting-edge electric planes that take off and land vertically, under an agreement announced Monday between the state and Joby Aviation Inc.

    “When you’re talking about air taxis, that’s the future,” Republican Gov. Mike DeWine told The Associated Press. “We find this very, very exciting — not only for the direct jobs and indirect jobs it’s going to create, but like Intel, it’s a signal to people that Ohio is looking to the future. This is a big deal for us.”

    Around the world, electric vertical takeoff and landing, or eVTOL aircraft are entering the mainstream, though questions remain about noise levels and charging demands. Still, developers say the planes are nearing the day when they will provide a wide-scale alternative to shuttle individual people or small groups from rooftops and parking garages to their destinations, while avoiding the congested thoroughfares below.

    Joby’s decision to locate its first scaled manufacturing facility at a 140-acre (57-hectar) site at Dayton International Airport delivers on two decades of groundwork laid by the state’s leaders, Republican Lt. Gov. Jon Husted said. Importantly, the site is near Wright-Patterson Air Force Base and the headquarters of the U.S. Air Force Research Laboratories.

    “For a hundred years, the Dayton area has been a leader in aviation innovation,” Husted said. “But capturing a large-scale manufacturer of aircraft has always eluded the local economy there. With this announcement, that aspiration has been realized.”

    The Wright brothers, Orville and Wilbur, lived and worked in Dayton. In 1910, they opened the first U.S. airplane factory there. To connect the historical dots, Joby’s formal announcement Monday took place at Orville Wright’s home, Hawthorn Hill, and concluded with a ceremonial flypast of a replica of the Wright Model B Flyer.

    Joby’s production aircraft is designed to transport a pilot and four passengers at speeds of up to 200 miles (321.87 kilometers) per hour, with a maximum range of 100 miles (160.93 kilometers). Its quiet noise profile is barely audible against the backdrop of most cities, the company said. The plan is to place them in aerial ridesharing networks beginning in 2025.

    The efforts of the Santa Cruz, California-based company are supported by partnerships with Toyota, Delta Air Lines, Intel and Uber. Joby is a 14-year-old company that went public in 2021 and became the first eVTOL firm to receive U.S. Air Force airworthiness certification.

    The $500 million project is supported by up to $325 million in incentives from the state of Ohio, its JobsOhio economic development office and local government. With the funds, Joby plans to build an Ohio facility capable of delivering up to 500 aircraft a year and creating 2,000 jobs. The U.S. Department of Energy has invited Joby to apply for a loan to support development of the facility as a clean energy project.

    Joby CEO JoeBen Bevirt told the AP that the company chose Ohio after an extensive and competitive search. Its financial package wasn’t the largest, but the chance to bring the operation to the birthplace of aviation — with a workforce experienced in the field — sealed the deal, he said.

    “Ohio is the No. 1 state when it comes to supplying parts for Boeing and Airbus,” Bevirt said. “Ohio is No. 3 in the nation on manufacturing jobs — and that depth of manufacturing prowess, that workforce, is critical to us as we look to build this manufacturing facility.

    JobsOhio President and CEO J.P. Nauseef noted that its dedication to aviation has carried the Dayton area through serious economic challenges. That included the loss of tens of thousands of auto and auto parts manufacturing jobs in the early 2000s and the loss of ATM maker NCR Corp.’s headquarters to an Atlanta suburb in 2009.

    “This marries that heritage and legacy of innovation in aviation with our nuts and bolts of manufacturing,” Nauseef said. “It really marries those two together, and that’s never been married together before — not in this town. For a community the size of Dayton and Springfield, (whose people) take great pride, (and) have had rough, rough decades, it’s a wonderful project.”

    Bevirt said operations and hiring will begin immediately from existing buildings near the development site, contingent upon clearing the standard legal and regulatory hurdles. The site is large enough to eventually accommodate 2 square feet (18.58 hectars) of manufacturing space.

    Construction on the manufacturing facility is expected to begin in 2024, with production to begin in 2025.

    Toyota, a long-term investor, worked with Joby in 2019 to design and to successfully launch its pilot production line in Marina, California. The automaker will continue to advise Joby as it prepares for scaled production of its commercial passenger air taxi, the company said.

    The announcement comes as a bipartisan group of Ohio’s congressional representatives has recently stepped up efforts — following an earlier appeal by DeWine — to lure the U.S. Air Force’s new U.S. Space Command headquarters or Space Force units to Ohio. There, too, state leaders cite the aerospace legacy of the Wrights, as well as Ohio-born astronauts John Glenn and Neil Armstrong.

    ___

    Earlier versions of this article were corrected to reflect that the description of incentives and company investment is additive, with up to $325 million in incentives as part of the $500 million total, and to indicate that the name of the airline is Delta Air Lines, not Delta Airlines.

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  • Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

    Hundreds of flying taxis to be made in Ohio, home of the Wright brothers and astronaut legends

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    COLUMBUS, Ohio — The same Ohio river valley where the Wright brothers pioneered human flight will soon be manufacturing cutting-edge electric planes that take off and land vertically, under an agreement announced Monday between the state and Joby Aviation Inc.

    “When you’re talking about air taxis, that’s the future,” Republican Gov. Mike DeWine told The Associated Press. “We find this very, very exciting — not only for the direct jobs and indirect jobs it’s going to create, but like Intel, it’s a signal to people that Ohio is looking to the future. This is a big deal for us.”

    Around the world, electric vertical takeoff and landing, or eVTOL aircraft are entering the mainstream, though questions remain about noise levels and charging demands. Still, developers say the planes are nearing the day when they will provide a wide-scale alternative to shuttle individual people or small groups from rooftops and parking garages to their destinations, while avoiding the congested thoroughfares below.

    Joby’s decision to locate its first scaled manufacturing facility at a 140-acre (57-hectar) site at Dayton International Airport delivers on two decades of groundwork laid by the state’s leaders, Republican Lt. Gov. Jon Husted said. Importantly, the site is near Wright-Patterson Air Force Base and the headquarters of the U.S. Air Force Research Laboratories.

    “For a hundred years, the Dayton area has been a leader in aviation innovation,” Husted said. “But capturing a large-scale manufacturer of aircraft has always eluded the local economy there. With this announcement, that aspiration has been realized.”

    The Wright brothers, Orville and Wilbur, lived and worked in Dayton. In 1910, they opened the first U.S. airplane factory there. To connect the historical dots, Joby’s formal announcement Monday will take place at Orville Wright’s home, Hawthorn Hill, and conclude with a ceremonial flypast of a replica of the Wright Model B Flyer.

    Joby’s production aircraft is designed to transport a pilot and four passengers at speeds of up to 200 miles (321.87 kilometers) per hour, with a maximum range of 100 miles (160.93 kilometers). Its quiet noise profile is barely audible against the backdrop of most cities, the company said. The plan is to place them in aerial ridesharing networks beginning in 2025.

    The efforts of the Santa Cruz, California-based company are supported by partnerships with Toyota, Delta Airlines, Intel and Uber. Joby is a 14-year-old company that went public in 2021 and became the first eVTOL firm to receive U.S. Air Force airworthiness certification.

    With incentives of up to $325 million from the state of Ohio, its JobsOhio economic development office and local government, plus $500 million of Joby’s own cash, the company plans to build an Ohio facility capable of delivering up to 500 aircraft a year and creating 2,000 jobs. The U.S. Department of Energy has invited Joby to apply for a loan to support development of the facility as a clean energy project.

    Joby CEO JoeBen Bevirt told the AP that the company chose Ohio after an extensive and competitive search. Its financial package wasn’t the largest, but the chance to bring the operation to the birthplace of aviation — with a workforce experienced in the field — sealed the deal, he said.

    “Ohio is the No. 1 state when it comes to supplying parts for Boeing and Airbus,” Bevirt said. “Ohio is No. 3 in the nation on manufacturing jobs — and that depth of manufacturing prowess, that workforce, is critical to us as we look to build this manufacturing facility.

    JobsOhio President and CEO J.P. Nauseef noted that its dedication to aviation has carried the Dayton area through serious economic challenges. That included the loss of tens of thousands of auto and auto parts manufacturing jobs in the early 2000s and the loss of ATM maker NCR Corp.’s headquarters to an Atlanta suburb in 2009.

    “This marries that heritage and legacy of innovation in aviation with our nuts and bolts of manufacturing,” Nauseef said. “It really marries those two together, and that’s never been married together before — not in this town. For a community the size of Dayton and Springfield, (whose people) take great pride, (and) have had rough, rough decades, it’s a wonderful project.”

    Bevirt said operations and hiring will begin immediately from existing buildings near the development site, contingent upon clearing the standard legal and regulatory hurdles. The site is large enough to eventually accommodate 2 million square feet (610,000 square meters) of manufacturing space.

    Construction on the manufacturing facility is expected to begin in 2024, with production to begin in 2025.

    Toyota, a long-term investor, worked with Joby in 2019 to design and to successfully launch its pilot production line in Marina, California. The automaker will continue to advise Joby as it prepares for scaled production of its commercial passenger air taxi, the company said.

    The announcement comes as a bipartisan group of Ohio’s congressional representatives has recently stepped up efforts — following an earlier appeal by DeWine — to lure the U.S. Air Force’s new U.S. Space Command headquarters or Space Force units to Ohio. There, too, state leaders cite the aerospace legacy of the Wrights, as well as Ohio-born astronauts John Glenn and Neil Armstrong.

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  • The auto workers strike will drive up car prices, but not right away — unless consumers panic

    The auto workers strike will drive up car prices, but not right away — unless consumers panic

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    DALLAS — Car shoppers are heading for a new round of sticker shock if the strike by the United Auto Workers doesn’t end soon, particularly for popular vehicles that are already in short supply.

    The number of vehicles on dealer lots will shrink the longer the walkout goes on. Dealers are likely to lose incentives that the manufacturers pay them to boost sales by cutting prices.

    And consumers might make things worse with panic-buying.

    Many analysts think it will take several weeks before dealer lots start to look a bit empty. Ford, General Motors and Stellantis built up inventories of vehicles ahead of Thursday night’s strike, and the UAW decided to limit the walkout to just three plants – at least for now.

    “Guys at the dealerships are going to tell you, ‘The UAW this and that,’ but their lots are full of cars now,” says Ivan Drury, the director of insights at Edmunds, a provider of information about the auto industry. He estimates that at current inventory levels and the pace of vehicle sales, most car shoppers shouldn’t notice much change for a couple of months.

    Vehicles from the Detroit Three sat in inventory an average 52 days before being sold in August, up from 31 days at the start of last year, according to Edmunds data.

    The UAW began striking at factories that make only a few vehicles – Ford Broncos and Rangers, Jeep Wranglers, Chevrolet mid-size pickups and GMC vans. Dealers have good inventories of those.

    The union said it had “reasonably productive conversations” with Ford on Saturday, while Stellantis gave details about its most recent offer to the union.

    Mark Stewart, chief operating officer for North America at Stellantis, also said his company has contingency plans to limit the impact on consumers, though he declined to give details about them.

    “We really want to encourage customers: Don’t be afraid,” Stewart said, while suggesting they see the deals available at dealerships.

    If the strike isn’t ended soon, however, there could be shortages of some makes and models –big sellers or vehicles that are already in short supply, such as Chevrolet Silverado and Tahoe, GMC Sierra and Ford F-Series pickups. The car companies have plants in Mexico that could keep producing some models – as long as they have a supply of parts.

    While the supply of cars from Detroit’s Big Three will largely depend on how long the strike lasts and how quickly it spreads to other plants – there were rumors Friday that additional factories could be added next week – there are other factors.

    Garrett Nelson, an auto analyst for CFRA Research, expects manufacturers to eliminate incentives they pay to dealers to boost sales. Those incentives let dealers reduce their sticker prices, and they’re often targeted at slower-selling models.

    The biggest wild card could be consumer psychology – panic-buying that would drive up prices.

    “The impact on prices would be almost instantaneous,” Nelson says. “Dealers will say, ‘Look, we’re not sure how many additional vehicles we’re going to be getting.’ There could be somewhat of a panic effect that could stimulate consumers to make that purchase sooner rather than later.”

    As cars from Ford, GM and Stellantis, the successor to Fiat Chrysler, become harder to find, there will be a ripple effect. Consumers who need a vehicle would likely turn to nonunion competitors like Toyota, Honda and Tesla, who would be able to charge them more.

    “You’ll start to see that pricing gets affected everywhere — and not just on the new end of the business,” Drury says. “Used-car values, which have been seeing a bit of a decline from last year’s highs, could start going back up” as consumers look for an affordable alternative to new vehicles.

    Consumers who lease their vehicle and are coming to the end of the term could be especially vulnerable. Drury says leasing companies want their cars back while the used-car market is hot, and might be unwilling to extend the lease.

    Anyone shopping for a new, used or leased car right now will also be hit by higher interest rates. The average rate for a new-car loan this week stood at 7.46%, and for a used car, it was 8.06%, according to Bankrate.

    High rates are contributing to a spike in rejections for consumers looking to buy a ride. The Federal Reserve Bank of New York said this month that the rejection rate for auto loans is now 14.2%, the highest since the bank started tracking figures in 2013 and up from 9.1% six months ago. (Rejections are also up for mortgages, credit cards and other loans, as lenders recoil at the growing number of people falling behind on payments. Household debt is rising.)

    Car prices were rising long before the auto workers even raised the possibility of a strike. A chip shortage, disruptions in the global supply chain and strong demand pushed prices higher.

    The average price for a new vehicle jumped from $39,919 in 2020 to $48,798 so far this year, according to Kelley Blue Book. Cheap cars have all but disappeared, and consumers are forced into ever-longer loans to limit their monthly payments. Prices for used cars rose sharply in 2021 and 2022, but have slipped slightly this year.

    Prices are almost certain to rise even if the strike is settled quickly, because the auto makers’ labor costs will increase.

    “It’s almost a foregone conclusion that the UAW will succeed in getting substantial wage increases,” says Patrick Anderson, the founder of Anderson Economic Group, a research firm that conducts market analysis. “Part of that is simply due to inflation, part of that is due to the profits of the automakers, and part of that is due to the leverage that the UAW has right now with a short inventory and an economy that still has a lot of people that want to buy cars.”

    The UAW is asking for a 36% increase in wages over four years, plus other demands that would increase expenses for the companies. On Saturday, Stellantis detailed its latest offer for cumulative raises of nearly 21% in hourly wages, roughly in line with proposals from Ford and GM.

    Politicians also have been pushing automakers to consider workers who gave up pay and benefits to help their employers during the Great Recession.

    “Now that our carmakers are enjoying robust profits, it’s time to do right by those same workers so the industry can emerge more united and competitive than ever,” former President Barack Obama said in a statement Saturday.

    UAW President Shawn Fain is sensitive to the impression that the union’s gains will come out of consumers’ pocketbooks. He points out that prices were rising before the strike, and says labor accounts for a fraction of the Big Three’s total costs.

    “They could double our wages and not raise car prices and still make billions of dollars in profit,” he said during an online presentation to union members this week.

    It’s all enough to make many motorists consider avoiding the car lot and keeping their current car a while longer. Their bank accounts will be healthier without car payments.

    “Holding on to your car is not a bad thing,” said Drury, the Edmunds analyst. “It’s a lot more durable than you think it is.”

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  • Workers strike at all 3 Detroit automakers, a new tactic to squeeze companies for better pay

    Workers strike at all 3 Detroit automakers, a new tactic to squeeze companies for better pay

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    DETROIT — Nearly one in 10 of America’s unionized auto workers went on strike Friday to pressure Detroit’s three automakers into raising wages in an era of big profits and as the industry begins a costly transition from gas guzzlers to electric vehicles.

    By striking simultaneously at General Motors, Ford and Chrysler owner Stellantis for the first time in its history, the United Auto Workers union is trying to inflict a new kind of pain on the companies and claw back some pay and benefits workers gave up in recent decades.

    The strikes are limited for now to three assembly plants: a GM factory in Wentzville, Missouri, a Ford plant in Wayne, Michigan, near Detroit, and a Jeep plant run by Stellantis in Toledo, Ohio.

    The workers received support from President Joe Biden, who dispatched aides to Detroit to help resolve the impasse and said the Big 3 automakers should share their “record profits.”

    Union President Shawn Fain says workers could strike at more plants if the companies don’t come up with better offers. The workers are seeking across-the-board wage increases of 36% over four years; the companies have countered by offering increases ranging from 17.5% to 20%.

    Workers out on the picket lines said they hoped the strikes didn’t last long, but added that they were committed to the cause and appreciated Fain’s tough tactics.

    “We didn’t have a problem coming in during COVID, being essential workers and making them big profits,” said Chrism Hoisington, who has worked at the Toledo Jeep plant since 2001. “We’ve sacrificed a lot.”

    In its previous 88-year history, UAW had always negotiated with one automaker at a time, limiting the industrywide impact of any possible work stoppages. Each deal with an automaker was viewed as a template, but not a guarantee, for subsequent contract negotiations.

    Now, roughly 13,000 of 146,000 workers at the three companies are on strike, making life complicated for automakers’ operations, while limiting the drain on the union’s $825 million strike fund.

    If the contract negotiations drag on — and the strikes expand to affect more plants — the costs will grow for workers and the companies. Auto dealers could run short of vehicles, raising prices and pushing customers to buy from foreign automakers with nonunionized workers. It could also put fresh stress on an economy that’s been benefiting from easing inflation.

    The new negotiating tactic is the brainchild of Fain, the first leader in the union’s history to be elected directly by workers. In the past, outgoing leaders picked their replacements by choosing delegates to a convention.

    But that system gave birth to a culture of bribery and embezzlement that ended with a federal investigation and prison time for two former UAW presidents.

    The combative Fain narrowly won his post last spring with a fiery campaign against that culture, which he called “company-unionism,” which he said sold out workers by allowing plant closures and failing to extract more money from the automakers.

    “We’ve been a one-party state for longer than I’ve been alive,” Fain said while campaigning as an adversary to the companies rather than a business partner.

    David Green, a former local union leader elected to a regional director post this year, said it’s time for a new way of bargaining. “The risks of not doing something different outweigh the risks of doing the same thing and expecting a different result,” Green said.

    During his more than two-decade career at General Motors, Green saw the company close an assembly plant in Lordstown, Ohio, that employed 3,000 workers. The union agreed to a series of concessions made to help the companies get through the Great Recession. “We’ve done nothing but slide backward for the last 20 years,” Green said, calling Fain’s strategy “refreshing.”

    Carlos Guajardo, who has worked at Ford for the past 35 years and was employed by GM for 11 years before that, said he likes the new strategy.

    “It keeps the strike fund lasting longer,” said Guajardo, who was on the picket line in Michigan Friday before the sun came up.

    The strikes will likely chart the future of the union and of America’s homegrown auto industry at a time when U.S. labor is flexing its might and the companies face a historic transition from building internal combustion automobiles to making electric vehicles.

    The walkouts also will be an issue in next year’s presidential election, testing Biden’s claim to being the most union-friendly president in American history.

    The limited-strike strategy could have ripple effects, GM CEO Mary Barra said Friday on CNBC.

    Many factories are reliant on each other for parts, Barra said. “We’ve worked to have a very efficient manufacturing network, so yes, even one plant is going to start to have impact.”

    Citing strike disruptions at its Wayne plant, Ford told about 600 non-striking workers at the plant not to report to work on Friday, Ford spokeswoman Jennifer Enoch said.

    Even Fain has called the union’s demands audacious, but he says the automakers are raking in billions and can afford them. He scoffs at company claims that costly settlements would force them to raise vehicle prices, saying labor accounts for only 4% to 5% of vehicle costs.

    In addition to the wage increases, union negotiators are also seeking: restoration of cost-of-living pay raises; an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and pension increases for retirees, among other items.

    Starting in 2007, workers gave up cost-of-living raises and defined benefit pensions for new hires. Wage tiers were created as the UAW tried to help the companies avoid financial trouble ahead of and during the Great Recession. Even so, only Ford avoided bankruptcy protection.

    Many say it’s time to get the concessions back because the companies are making huge profits and CEOs pay packages are soaring.

    Looming in the background is the historic transition to electric vehicles. The union wants to make sure it represents workers at joint-venture electric vehicle battery factories the companies are building so that members have jobs making vehicles of the future.

    Top-scale assembly plant workers make about $32 per hour, plus large annual profit-sharing checks. Ford said average annual pay including overtime and bonuses was $78,000 last year.

    The Ford plant that’s on strike employs about 3,300 workers. The Toledo Jeep complex has about 5,800 workers, and GM’s Wentzville plant has about 3,600 workers.

    The union didn’t go after the companies’ big cash cows, which are full-size pickup trucks and big SUVs.

    Automakers say they’re facing unprecedented demands as they develop and build new electric vehicles while at the same time making gas-powered cars, SUVs and trucks to pay the bills. They’re worried labor costs will rise so much that they’ll have to price their cars above those sold by foreign automakers with U.S. factories.

    ____

    Seewer reported from Toledo, Ohio, while Householder reported from Wayne, Michigan.

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  • Warren Buffett’s company trims its investment in printer maker HP by selling 5.5 million shares

    Warren Buffett’s company trims its investment in printer maker HP by selling 5.5 million shares

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    Warren Buffett’s company sold off 5.5 million HP Inc. shares this week to trim a stake that it established just last year

    ByJOSH FUNK AP business writer

    September 14, 2023, 1:19 PM

    FILE – Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview, May 7, 2018, in Omaha, Neb. Buffett’s company sold off 5.5 million of its HP Inc. shares this week, trimming a stake that it established in 2022, but even after the sales, Berkshire Hathaway still owns nearly 12% of the printer and computer maker’s stock. HP stock dropped nearly 2% to sell for $27.80 on Thursday, Sept. 14, 2023, in the first trading session after the stock sales were disclosed in a filing with the Securities and Exchange Commission. (AP Photo/Nati Harnik, File)

    The Associated Press

    OMAHA, Neb. — Warren Buffett’s company sold off 5.5 million of its HP Inc. shares this week, trimming a stake that it established just last year, but even after the sales, Berkshire Hathaway still owns nearly 12% of the printer and computer maker’s stock.

    HP stock dropped nearly 2% to sell for $27.80 Thursday in the first trading session after the stock sales were disclosed in a filing with the Securities and Exchange Commission.

    Many investors follow Buffett’s moves closely because of his remarkably successful track record over the years.

    Even after this week’s sales, Berkshire still holds more than 115 million HP shares. But it likely won’t be clear for some time whether Buffett is just trimming the position or whether he has soured on the stock. The billionaire investor never comments on these transactions that he’s only required to disclose because Berkshire owns such a big chunk of the company.

    The HP investment raised some eyebrows last spring because throughout his career Buffett has been famously reluctant to invest in technology companies because he said it was too hard to pick the long-term winners.

    But Buffett has found ways to get more comfortable in the sector in recent years, and Berkshire has accumulated a massive stake in Apple that is the single-largest investment in the conglomerate’s $350 billion portfolio. Buffett has said he looks at Apple more like a consumer products company with extremely loyal customers, and he can understand that kind of business.

    The HP investment was part of a $51 billion buying spree at the start of last year as Buffett found bargains galore in the market. HP was one of the biggest investments along with big stakes in Occidental Petroleum and Chevron in the more traditional oil production industry.

    In addition to stock investments, the Omaha, Nebraska-based Berkshire owns dozens of companies including Geico and several other major insurers, BNSF railroad, a collection of large utilities, and an assortment of manufacturing and retail companies including well-known brands like Helzberg Diamonds, Dairy Queen and See’s Candy.

    ___

    Follow Josh Funk on X @Funkwrite

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  • Warren Buffett’s company trims its investment in printer maker HP by selling 5.5 million shares

    Warren Buffett’s company trims its investment in printer maker HP by selling 5.5 million shares

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    Warren Buffett’s company sold off 5.5 million HP Inc. shares this week to trim a stake that it established just last year

    ByJOSH FUNK AP business writer

    September 14, 2023, 1:19 PM

    FILE – Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview, May 7, 2018, in Omaha, Neb. Buffett’s company sold off 5.5 million of its HP Inc. shares this week, trimming a stake that it established in 2022, but even after the sales, Berkshire Hathaway still owns nearly 12% of the printer and computer maker’s stock. HP stock dropped nearly 2% to sell for $27.80 on Thursday, Sept. 14, 2023, in the first trading session after the stock sales were disclosed in a filing with the Securities and Exchange Commission. (AP Photo/Nati Harnik, File)

    The Associated Press

    OMAHA, Neb. — Warren Buffett’s company sold off 5.5 million of its HP Inc. shares this week, trimming a stake that it established just last year, but even after the sales, Berkshire Hathaway still owns nearly 12% of the printer and computer maker’s stock.

    HP stock dropped nearly 2% to sell for $27.80 Thursday in the first trading session after the stock sales were disclosed in a filing with the Securities and Exchange Commission.

    Many investors follow Buffett’s moves closely because of his remarkably successful track record over the years.

    Even after this week’s sales, Berkshire still holds more than 115 million HP shares. But it likely won’t be clear for some time whether Buffett is just trimming the position or whether he has soured on the stock. The billionaire investor never comments on these transactions that he’s only required to disclose because Berkshire owns such a big chunk of the company.

    The HP investment raised some eyebrows last spring because throughout his career Buffett has been famously reluctant to invest in technology companies because he said it was too hard to pick the long-term winners.

    But Buffett has found ways to get more comfortable in the sector in recent years, and Berkshire has accumulated a massive stake in Apple that is the single-largest investment in the conglomerate’s $350 billion portfolio. Buffett has said he looks at Apple more like a consumer products company with extremely loyal customers, and he can understand that kind of business.

    The HP investment was part of a $51 billion buying spree at the start of last year as Buffett found bargains galore in the market. HP was one of the biggest investments along with big stakes in Occidental Petroleum and Chevron in the more traditional oil production industry.

    In addition to stock investments, the Omaha, Nebraska-based Berkshire owns dozens of companies including Geico and several other major insurers, BNSF railroad, a collection of large utilities, and an assortment of manufacturing and retail companies including well-known brands like Helzberg Diamonds, Dairy Queen and See’s Candy.

    ___

    Follow Josh Funk on X @Funkwrite

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  • New US sanctions target workarounds that let Russia get Western tech for war

    New US sanctions target workarounds that let Russia get Western tech for war

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    The United States said Thursday that it was sanctioning more than 150 businesses and people from Russia to Turkey, the United Arab Emirates and Georgia to try to crack down on evasion and deny the Kremlin access to technology, money and financial channels that fuel President Vladimir Putin’s war in Ukraine.

    The sanctions package is one of the biggest by the State and Treasury departments and is the latest to target people and companies in countries, notably NATO member Turkey, that sell Western technology to Russia that could be used to bolster its war effort.

    The package also aims to hobble the development of Russia’s energy sector and future sources of cash, including Arctic natural gas projects, as well as mining and factories producing and repairing Russian weapons.

    “The purpose of the action is to restrict Russia’s defense production capacity and to reduce the liquidity it has to pay for its war,” James O’Brien, head of the State Department’s Office of Sanctions Coordination, told The Associated Press.

    The U.S. is sanctioning a newly established UAE company, which provides engineering and technology to Russia’s Arctic liquefied natural gas project, as well as multiple Russian companies involved in its development.

    Putin wants the Arctic LNG 2 project to produce more liquefied natural gas and make Russia a bigger player in the energy market. In July, Putin visited the LNG site in Russia’s far north and said it would have a positive impact on “the entire economy.”

    The U.S. package includes sanctions on several Turkish and Russian companies that the State Department says help Moscow source U.S. and European electronic components — such as computer chips and processors — that can be used in civilian and military equipment.

    The department also is targeting Turkish companies that have provided ship repair services to a company affiliated with Russia’s Ministry of Defense.

    Before the war, O’Brien said, Russia imported up to 90% of its electronics from countries that are part of the Group of 7 wealthy democracies, but sanctions have dropped that figure closer to 30%.

    Sanctions, he said, “are effective” and “put a ceiling on Russia’s wartime production capacity.”

    “Russia is trying to run a full production wartime economy, and it is extremely difficult to do that with secretive episodic purchases of small batches of equipment from different places around the world,” O’Brien said.

    However, analysts say Russia still has significant financial reserves available to pursue its war and it’s possible for Russia to import the technology it seeks in tiny batches to maintain defense production.

    “Russia could probably fill a large suitcase with enough electronic components to last for cruise missile production for a year,” said Richard Connolly, a specialist on Russia’s defense sector and economy at the risk analysis firm Oxford Analytica.

    Russia, he said, also gets a lot of electronic components from Belarus, “so even if we whack all the moles, Belarus will still provide the equipment for as long as Lukashenko is in power.”

    Both Turkey and the UAE have condemned Russia’s invasion of Ukraine but have not joined Western sanctions and sought to maintain ties with Russia.

    Russian Industry and Trade Minister Denis Manturov said this year that trade between Russia and the UAE grew by 68% to $9 billion in 2022, according to Russian state news agency Tass.

    Despite countries still doing business with Russia, the State Department believes sanctions are working, O’Brien said, noting that “the way to measure success is on the battlefield.”

    “Ukraine can shoot down most of what the Russians are firing, and that tells us that there’s a gap,” he said. “The battlefield debris shows us Russia is using less capable electronics or sometimes no electronics at all.”

    Nonetheless, Russia has been pummeling Ukraine with frequent missile attacks, including two over the past week that killed at least 23 people in Ukraine.

    This is partly because Russia is “still getting hold of these electronic components and they are largely functioning as they did before,” said Connolly, the Russia analyst.

    The latest sanctions package targets multiple Russian companies that repair, develop and manufacture weapons, including the Kalibr cruise missile. But to really turn the screws on Russia, analysts say Western companies need to think twice before selling crucial technology to countries known to have a healthy resale market with Russia.

    “We need to work much harder with companies in our own countries to ensure that they are not feeding the re-export market,” said Tom Keatinge, director of the Centre for Financial Crime and Security Studies at the Royal United Services Institute in London.

    “Many of them may be celebrating a rise in sales to the UAE or Turkey and not realizing, or not choosing to realize, that the rise is being driven by re-export business as opposed to genuine business happening in the UAE and Turkey,” he said.

    The United Arab Emirates has insisted it follows international laws when it comes to money laundering and sanctions. However, a global body focused on fighting money laundering has placed the UAE on its “gray list” over concerns that the global trade hub isn’t doing enough to stop criminals and militants from hiding wealth there.

    Turkey, meanwhile, has tried to balance its close ties with both Russia and Ukraine, positioning itself as a mediator.

    Turkey depends heavily on Russian energy and tourism. Last year, however, Turkey’s state banks suspended transactions through Russia’s payment system, Mir, over U.S. threats of sanctions.

    Including the latest sanctions, the State Department says the U.S. has targeted almost 3,000 businesses and people since Russia invaded Ukraine in February 2022.

    “The United States and its allies and partners are united in supporting Ukraine in the face of Russia’s unprovoked, unjustified and illegal war. We will stand with Ukraine for as long as it takes,” U.S. Secretary of State Antony Blinken said in a statement.

    The State Department also sanctioned a Russian citizen for being associated with the Wagner mercenary group and for facilitating shipping of weapons from North Korea to Russia.

    Also targeted were a Russian oligarch who the State Department says has personal ties to Russian Defense Minister Sergei Shoigu and organized crime, as well as a Russian Intelligence Services officer and a Georgian-Russian oligarch. The State Department has said Russia’s Federal Security Service worked with the oligarch to influence Georgian society and politics for Russia’s benefit.

    ___

    Associated Press writers Suzan Fraser in Ankara, Turkey, and Jon Gambrell in Dubai, United Arab Emirates, contributed.

    ___

    This story has been corrected to show that Secretary of State Antony Blinken’s first name was misspelled.

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  • Disney, Charter settle cable dispute hours before ‘Monday Night Football’ opener

    Disney, Charter settle cable dispute hours before ‘Monday Night Football’ opener

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    NEW YORK — If Aaron Rodgers has as much influence on the field as he apparently had in ending a multibillion-dollar business dispute, the New York Jets will be very happy.

    The Walt Disney Co. and Charter Communications announced the resolution of their fight on Monday, restoring ESPN to some 15 million cable television customers hours before Rodgers was to make his debut at quarterback for the Jets in “Monday Night Football.”

    The deal guarantees Disney of roughly $2.2 billion in fees from Charter that had been put in jeopardy, while giving the communications company an entry into the streaming world that has encouraged millions of former cable customers to cut the cord.

    “We love the flexibility of this deal,” said Jimmy Pitaro, ESPN president. “We love the creativity.”

    Disney had pulled the stations it owned from the Charter-owned Spectrum TV system on Aug. 31, including ESPN, ABC, National Geographic and FX. It was during the U.S. Open tennis tournament and at the beginning of the first college weekend.

    But “Monday Night Football,” which is shown on ESPN, ESPN2 and ABC, is on a different level entirely. Besides Rodgers’ debut, Monday’s game involved the Jets and Buffalo Bills, two New York teams on the anniversary of the Sept. 11 attacks.

    “When the passionate fan base is being deprived of something they desire, you’re going to hear about it,” said John Fortunato, a communications professor at Fordham University who specializes in sports media.

    New York Gov. Kathy Hochul hailed the deal, and said her office would work on getting refunds for the estimated 1.5 million families in New York who lost the Disney stations during the dispute.

    Under the deal, the Disney+ and ESPN+ streaming services will be made available to Spectrum cable customers at no extra cost, which Disney had initially balked at. In addition, Charter customers will eventually receive the planned direct-to-consumer ESPN streaming service that is in the works but has no launch date.

    While making a direct-to-consumer product available through a cable system may seem counterintuitive, the deal will help the soon-to-be launched ESPN service get established and have more access to advertisers, Pitaro said.

    Charter had made noises about getting out of business of cable with ESPN entirely, and had even told its customers about other ways to access the network. But that’s an awfully risky move. In essence, the deal allows both Charter and Disney to have their hands in both cable and streaming while waiting to see how those businesses shake out in the coming years.

    Charter had also sought greater flexibility to stop “bundling,” or requiring cable customers to take stations they don’t necessarily want. Monday’s deal reduces the size of the Disney “bundle” from 27 to 19 networks, but still guarantees that Disney will be paid for a large percentage of those stations.

    Charter’s “carriage” fee to Disney — what it pays for access to their networks — is expected to increase, although financial terms were not released on Monday.

    “On the surface, the terms of the settlement that were made public suggest Disney could not afford to let the dispute simmer, and Charter may have been bluffing when it said it was ready to walk away from the cable TV business,” said Paul Verna, principal analyst at Insider Intelligence.

    The deal leaves many unanswered questions, primarily how much more that consumers will be charged for these various services, he said.

    “In addition to these unknowns, the larger issues around the viability of the traditional pay TV bundle and the challenges in monetizing streaming media will continue to haunt the industry as it navigates the transition from linear to digital,” Verna said “Other carriage disputes are inevitable, and they will again raise these unresolved questions for media owners and distributors.”

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  • After outrage over Taylor Swift tickets, reform has been slow across the US

    After outrage over Taylor Swift tickets, reform has been slow across the US

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    SACRAMENTO, Calif. — When thousands of fans couldn’t get tickets for megastar Taylor Swift’s summer stadium tour, some diehards paid upwards of 70 times face value to see their favorite artist in person — an outrage that prompted Congressional hearings and bills in state legislatures to better protect consumers.

    After 10 months, Swift’s U.S. tour is finished, but so are most of the meaningful reforms consumer advocates and industry groups had hoped to pass this year. A proposal has so far failed to advance in the U.S. Senate. Legislation in Colorado was vetoed by the Democratic governor at the urging of some consumer groups.

    In California, home to iconic recording studios like Capitol Records and influential clubs like the Whiskey A Go Go and Hollywood Bowl, what started as a robust array of legislation has been watered down to a single bill banning hidden fees, something New York and Connecticut have done and most major industry players have already committed to do on their own.

    “That’s it? That’s all that California, the leading state in the nation on so many consumer protection issues, that’s all we’re going to do?” said Robert Herrell, executive director of the Consumer Federation of California. “That’s an embarrassment. It’s not enough.”

    The slow progress over changing how tickets should be sold and resold highlights not just the strength of industry opposition, but the regulatory difficulties in a market upended by technology. Gone are the days of standing in line at a box office to find out what seats were available and how much they cost.

    Today, nearly all tickets are sold online and downloaded to phones or other devices. Consumers often don’t know how much they will pay until just before they click the purchase button and fees and charges, which can sometimes be almost as much as the ticket price, are applied.

    Venues often don’t say how many seats are available for a specific event, according to consumer groups, but instead release tickets in batches, making consumers spend more out of the mistaken fear they’ll miss out.

    Some bad actors use software to quickly bulk-buy tickets for resale at much higher prices. They will even sell tickets before they have them, a practice known as “speculative ticketing” that consumer groups say is dangerous and does not guarantee the ticket. Some go so far as to mimic venue websites so consumers believe they are buying tickets directly.

    Sharp disagreements among venues, ticket sellers, consumer groups and artists have muddied what may seemingly straightforward consumer rights issues.

    Artists and venues want to restrict how fans can resell tickets, an attempt to crack down on “the secondary market to sweep the inventory, inflate the price and price gouge our fans,” said Jordan Bromley, who sits on the board of the Music Artist Coalition, an advocacy group representing artists.

    Consumer groups argue buyers can do what they want with their tickets, including upselling. That disagreement is partly why Colorado Democratic Gov. Jared Polis vetoed a bill earlier this year, despite the bill also containing consumer-friendly policies like banning hidden fees, price increases and speculative ticket sales.

    In California, consumer groups have mostly focused their ire on Live Nation Entertainment, the company that owns Ticketmaster and controls the bulk of ticket sales and venues in the U.S. for touring music artists. But the debate is spreading to artists, major men’s professional sports teams like the Los Angeles Dodgers and San Francisco 49ers, and independent venues with capacity for 1,000 people or fewer, including more than 600 in California alone.

    Most people are being vocal about “how this is an attempt to shoot at Ticketmaster and Live Nation,” said Julia Heath, president of the California chapter of the National Independent Venue Association. “What’s actually happening is they are aiming at them, but they are hitting everybody else, too.”

    The biggest disagreement was over whether to allow teams, venues and artists to restrict how fans could resell tickets they purchased.

    A bill to allow teams, venues and artists restrict how fans can resell tickets passed the Senate but failed to pass the Assembly this year after drawing concerns from consumer groups. State Sen. Anna Caballero, the bill’s author, promised to hold a hearing on the issue once the Legislature adjourns.

    A bill by Assemblymember Laura Friedman would ban venues and artists from restricting resales. The measure also would have required venues to disclose how many tickets were available for an event to prevent “holdbacks.” Ultimately, the bill was changed to remove both of those provisions after attracting strong industry opposition.

    “It’s been very difficult. It had a very strong and concerted effort from the very beginning lobby against this bill,” said Friedman, who added she was disappointed the bill was not stronger.

    Industry groups also are disappointed. Heath, who represents independent venues, called it a “do-nothing bill.”

    “A lot of the things we took issue with are gone, but we also see it as a missed opportunity,” she said. “There are issues in the ticketing world right now that need to be addressed.”

    Not everyone is disappointed. Jenn Engstrom, state director for the California Public Interest Research Group, said while it would be great to solve all of those problems, banning hidden fees is still a win for consumers.

    “I’m just all about incremental change,” she said. “This is a good first step.”

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  • U.S. envoy visits Fukushima to eat fish, criticize China’s seafood ban over wastewater release

    U.S. envoy visits Fukushima to eat fish, criticize China’s seafood ban over wastewater release

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    TOKYO — The U.S. ambassador to Japan visited a city in Fukushima on Thursday and had a seafood lunch with the mayor, talked to fishermen and stocked up on local produce to show they are safe after the release of treated radioactive wastewater from the wrecked Fukushima nuclear plant into the sea, backing Japan while criticizing China‘s ban on Japanese seafood as political.

    Ambassador Rahm Emanuel ate flounder and sea bass sashimi with Soma Mayor Hidekiyo Tachiya, talked with local fishermen, and visited a grocery store where he sampled fruits and bought peaches, figs, grapes, flounder, sea bass and other produce from Fukushima prefecture.

    All of his purchases will be served when his children visit him this weekend, Emanuel said in a telephone interview from his train back to Tokyo. “We are going to all eat it. As a father, if I thought if there is a problem, I won’t serve it.”

    The release of the treated wastewater began last week and is expected to continue for decades. Japanese fishing groups and neighboring countries oppose it, and China immediately banned all imports of Japanese seafood in response.

    Emanuel praised Japan’s water release plan as scientifically based and fully transparent, which he said “stands in total contrast” to how China handled the coronavirus pandemic.

    “The Chinese ban is political,” he said. An end to the ban “depends on whether China wants to be a good neighbor,” Emanuel said.

    Radioactive wastewater has accumulated at the Fukushima plant since a massive earthquake and tsunami in 2011 destroyed cooling systems and caused meltdowns in three reactors. The 1.34 million tons of water is stored in about 1,000 tanks and continues to grow because of leaks and the use of cooling water.

    The government and the plant operator say discharging the water into the sea is unavoidable because the storage tanks will reach their capacity early next year and space at the plant will be needed for its decommissioning, which is expected to take decades.

    Earlier Thursday, Japanese Prime Minister Fumio Kishida sampled seafood and talked to workers at Tokyo’s Toyosu fish market to assess the impact of China’s ban on Japanese seafood.

    One of the seafood business operators told Kishida that sales of his scallops, which are largely exported to China, have dropped 90% since the start of the wastewater discharge.

    Kishida told reporters that he instructed officials to compile a package of support measures for seafood exporters hit by China’s import ban, including an expansion of domestic consumption and new destinations for Japanese seafood to replace China.

    “We will patiently and resolutely call on China to take actions based on scientific evidence,” Kishida said.

    The government has allocated 80 billion yen ($550 million) to support fisheries and seafood processing and combat potential damage to the reputation of Japanese products. The government will do everything to protect the fisheries industry by utilizing the fund and other measures, Kishida said, indicating possible additional financial measures.

    China stepped up testing of Japanese fisheries products, causing long delays at customs, even before the start of the wastewater release and the Chinese import ban. Japanese Fisheries Agency officials said the measure has affected prices and sales of seafood from places as far away from Fukushima as Hokkaido.

    All seawater and fish sampling data since the release have been way below set safety limits for radioactivity, officials and the plant operator, Tokyo Electric Power Company Holdings, say.

    In Seoul on Thursday, South Korean President Yoon Suk Yeol visited a fish market and had seafood for his lunch as part of efforts to ease public concerns about the safety of local fishery products after Japan’s wastewater release, as his country strengthens a trilateral strategic partnership with Japan and the United States in the face of a growing Chinese regional threat.

    Chief Cabinet Secretary Hirokazu Matsuno hinted on Wednesday of the possibility of taking the case to the World Trade Organization, but Foreign Minister Yoshimasa Hayashi stressed the importance of dialogue.

    The impact of China’s ban on Japanese seafood has spilled over to tourism. Transport and Tourism Minister Tetsuo Saito says cancellations of Chinese group tours and inquiries about food safety in Japan have been on the rise.

    Meanwhile, Kishida ordered Agriculture, Forestry and Fisheries MInister Tetsuro Nomura to apologize after calling the treated radioactive water “contaminated,” the term China uses.

    Nomura used the term when speaking to reporters after meeting with Kishida and other ministers to discuss fisheries support measures. He apologized and retracted the remark, which Kishida called “extremely regrettable.”

    ___

    Associated Press writer Hyung-jin Kim in Seoul, South Korea, contributed to this report.

    ___

    Find more AP Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

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  • Georgia Power customers could see monthly bills rise $9 to pay for the Vogtle nuclear plant

    Georgia Power customers could see monthly bills rise $9 to pay for the Vogtle nuclear plant

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    ATLANTA — Residential customers of Georgia’s largest electrical utility could see their bills rise $9 more a month to pay for a new nuclear power plant under a deal announced Wednesday.

    Georgia Power Co. said customers would pay $7.56 billion more for Plant Vogtle construction costs under the agreement with utility regulatory staff.

    The Georgia Public Service Commission’s five elected commissioners must approve any deal, but such agreements are typically persuasive. With the commission’s Public Interest Advocacy staff and three ratepayer groups signing on, the agreement is likely to avert contentious hearings over how much blame the company should bear for billions in cost overruns at two new nuclear reactors southeast of Augusta.

    Vogtle’s Unit 3 and Unit 4 are the first new American reactors built from scratch in decades. Each reactor can power 500,000 homes and businesses without releasing any carbon. But even as government officials and some utilities are again looking to nuclear power to alleviate climate change, the cost of Vogtle could discourage utilities from pursuing nuclear power.

    Jacob Hawkins, a Georgia Power spokesperson, said the agreement represents “a balanced approach that recognizes the value of this long-term investment for the state and recognizes affordability needs for customers.”

    Liz Coyle, the executive director of Georgia Watch, a consumer advocacy group that signed the agreement, said the reactors will never be cheaper than alternative sources of power. But since regulators, traditionally friendly to Georgia Power, allowed them to be built, Coyle said it was important to limit consumers’ exposure.

    “I believe that this is the best outcome we could get with where we are in this process,” Coyle said.

    Public service commissioners declined comment on the deal, saying all the evidence hadn’t been heard.

    The project’s overall cost, including financing, is currently $31 billion for Georgia Power and three other owners, Associated Press calculations show. Add in $3.7 billion that original contractor Westinghouse paid the Vogtle owners to walk away from construction, and the total nears $35 billion. The reactors are seven years late and $17 billion over budget.

    Georgia Power says it has spent $10.2 billion on its share of construction for Vogtle Units 3 and 4, built alongside two earlier reactors. Public service commissioners originally approved the largest unit of Atlanta-based Southern Co. to spend $4.4 billion. After years of delays and cost overruns, the commission said in 2017 that it would consider $7.3 billion as a reasonable cost for Georgia Power.

    In a regulatory filing Wednesday, Georgia Power argued that $8.8 billion of the $10.2 billion had been prudently spent on construction, while $1.4 billion was wasteful and should be disallowed. But the company agreed to give up an additional $1.3 billion that it could have sought from customers, amid indications that Public Service Commission staffers would argue that even some spending below the reasonable cap was wasted by mismanagement.

    The company says that would work out to an additional $8.95 per month for a typical residential customer, added to the current $153 monthly bill. The increase would begin when Unit 4 enters commercial operation. Georgia Power has loaded fuel into Unit 4 and says it will reach commercial operation before March 30.

    Bills went up $5 this month after Unit 3 entered commercial operation. That’s atop a $16-a-month increase to pay for higher fuel costs two months ago. There was also an increase in base rates early this year, with another scheduled next year.

    Hawkins said Southern Co. shareholders wouldn’t absorb additional losses under the agreement, because the company has already written off $3.26 billion in anticipated Vogtle losses since 2018. Georgia Power could seek to recoup some of those losses from contractors, and the agreement allows shareholders to keep all of any such gains.

    Georgia Power owns 45.7% of the reactors. Smaller shares are owned by Oglethorpe Power Corp., which provides electricity to member-owned cooperatives, the Municipal Electric Authority of Georgia and the city of Dalton. Some Florida and Alabama utilities have also contracted to buy Vogtle’s power.

    Ratepayer groups won other concessions. Georgia Power agreed to double the size of a bill-relief program that applies to some low-income seniors.

    The plan is projected to add 96,000 beneficiaries over the next three years. That includes seniors in households with low incomes, and people of all ages who get federal housing vouchers or federal disability payments. The program cuts average monthly bills $33.50.

    Georgia Power agreed to a 50% expansion in energy efficiency programs to help reduce energy use and lower bills beginning in 2026. The company also agreed to support state applications for a share of $7 billion in federal money to expand solar energy to low-income households.

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  • Fukushima residents are cautious after the wrecked nuclear plant began releasing treated wastewater

    Fukushima residents are cautious after the wrecked nuclear plant began releasing treated wastewater

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    IWAKI, Japan — Fish auction prices at a port south of the Fukushima Daiichi nuclear power plant were mixed Friday amid uncertainty over how seafood consumers will respond to the release of treated and diluted radioactive wastewater into the ocean.

    The plant, which was damaged in the 2011 earthquake and tsunami, began sending the treated water into the Pacific on Thursday despite protests at home and in nearby countries that are adding political and diplomatic pressures to the economic worries.

    Hideaki Igari, a middleman at the Numanouchi fishing port, said the price of larger flounder, Fukushima’s signature fish known as Joban-mono, was more than 10% lower at the Friday morning auction, the first since the water release began. Prices of some average-size flounder rose, but presumably due to a limited catch, says Igari. Others fell.

    It was a relatively calm market reaction to the water release. But, Igari said, “we still have to see how it goes next week.”

    The decadeslong release has been strongly opposed by fishing groups and criticized by neighboring countries. China immediately banned imports of seafood from Japan in response, adding to worries in the fisheries community and related businesses.

    A citizens’ radiation testing center said it’s getting inquiries and expects more people might bring in food, water and other samples as radiation data is now a key barometer for what to eat.

    Japanese fishing groups fear the release will do more harm to the reputation of seafood from the Fukushima area. They are still striving to repair the damage to their businesses from the meltdown at the power plant after the earthquake and tsunami.

    “We now have this water after all these years of struggle when the fish market price is finally becoming stable,” Igari said after Friday’s auction. “Fisheries people fear that prices of the fish they catch for their living may crash again, and worry about their future living.”

    The Japanese government and the plant’s operator, Tokyo Electric Power Company Holdings, say the water must be released to make way for the facility’s decommissioning and to prevent accidental leaks of insufficiently treated water. Much of tank-held water still contains radioactive materials exceeding releasable levels.

    Some wastewater at the plant is recycled as coolant after treatment, and the rest is stored in around 1,000 tanks, which are filled to 98% of their 1.37 million-ton capacity. The tanks cover much of the complex and must be cleared out to make room for new facilities needed for the decommissioning process, officials say.

    Authorities say the wastewater after treatment and dilution is safer than international standards require, and that its environmental impact will be negligible. On Friday, the first seawater samples collected after the release were significantly below the legally releasable levels, the power company said.

    But, having suffered a series of accidental and intended releases of contaminated water from the plant early in the disaster, hard feelings and distrust of the government and TEPCO run deep in Fukushima — especially in the fishing community.

    TEPCO says the release will take 30 years, or until the end of the plant decommissioning. People fear that could mean a tough future for youths in the fishing town, where many businesses are family-run.

    Fukushima’s current catch already is only about one-fifth its pre-disaster level due to a decline in the number of fishers and decreased catch sizes.

    The government has allocated 80 billion yen ($550 million) to support fisheries and seafood processing, and to combat potential reputation damage by sponsoring campaigns to promote Fukushima’s Joban-mono and processed seafood. TEPCO has promised to deal with reputational damage claims, and those hurt by China’s export ban.

    Tetsu Nozaki, head of the Fukushima prefectural fisheries cooperatives, said in a statement Thursday that worries of the fishing community will continue for as long as the water is released.

    “Our only wish is to continue fishing for generations in our home town, like we used to before the accident,” Nozaki said.

    Fish prices largely depend on the sentiment of wholesalers and consumers in the Tokyo region, where large portions of the Fukushima catch goes.

    At the Friday auction at the Numanouchi port, the price for flounder was down from its usual level of about 3,500 yen ($24) per kilogram (2.2 pounds) to around 3,000 yen ($20), said Igari, the middleman.

    “I suspect the result is because of the start of the treated water release from the Fukushima Daiichi and fear about its impact,” he said.

    Igari said the discharge is discouraging but hopes careful testing can prove the safety of their fish. “From the consumers’ point of view about food safety at home, I think the best barometer is data,” he said.

    At Mother’s Radiation Lab Fukushima in Iwaki, a citizens’ testing center known as Tarachine, tests were being conducted on water samples, including on tritium levels for seawater that the lab collected from just off the Fukushima Daiichi plant before the release.

    Lab director Ai Kimura said anyone can bring in food, water or even soil, though the lab has big backlogs because testing take time.

    She joined the lab after regretting she might not have fully protected her daughters because of the lack of information and knowledge earlier in the disaster. She says having independent test results is important not because of distrust of government data, but because “we learned over the past 12 years the importance of testing in order to get data” on what mothers want to know for serving safe and healthy food to their children and families.

    Kimura said people have different views about safety — some are fine with government standards, others want them to be as close to zero as possible.

    “It’s very difficult to make everyone feel safe. … That’s why we conduct testing so we can visualize data on food from different places and help people have more options to make a decision,” she said.

    Kimura said the lab’s testing has shown Fukushima fish to be safe over the past few years, and she happily eats local fish.

    “It’s totally fine to eat fish that does not contain radiation,” she said.

    But now the treated wastewater release will bring new questions, she said.

    Aeon, a major supermarket chain that has been testing cesium and iodine levels in fish, announced plans to also test for tritium, a radionuclide inseparable from water.

    Katsumasa Okawa, a fish store and restaurant operator who was at one of his four shops Thursday, said customers were sparse after the plant started its final steps of the treated water release at 1 p.m. and media reports covered the development.

    But on Friday, he said, his Yamako seafood restaurant next to Iwaki’s main train station seemed to be doing business as usual, with customers coming in and out during lunchtime.

    Okawa said he’s been looking forward to the wastewater draining as a big step toward decommissioning the nuclear plant. “I feel more at ease thinking those tanks will finally go away.”

    Okawa, who said he did voluntary testing of his products for a number of years after the disaster, is worried about returning to the days of radiation testing and data as a benchmark of what to eat.

    “I think too much testing data only triggers concerns,” he said. “I’m confident about what I sell and I will just keep up the work.”

    Some people say they want to eat good fish and not worry.

    Bus driver Hideki Tanaka, on vacation and fishing at another Iwaki port of Onagawa, said he hoped to catch horse mackerel.

    “If you worry too much, you can’t eat fish from anywhere,” he said.

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  • Fukushima residents react cautiously after start of treated water release from wrecked nuclear plant

    Fukushima residents react cautiously after start of treated water release from wrecked nuclear plant

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    IWAKI, Japan — Fish auction prices at a port south of the Fukushima Daiichi nuclear power plant fell Friday amid uncertainty over how seafood consumers will respond to the release of treated and diluted radioactive wastewater into the ocean.

    The plant, which was damaged in the 2011 earthquake and tsunami, began sending the treated water into the Pacific on Thursday amid protests at home and in nearby countries that are adding political and diplomatic pressures to the economic worries.

    Hideaki Igari, a middleman at the Numanouchi fishing port, said prices of flounder, Fukushima’s signature fish known as Joban-mono, was more than 10% lower at the Friday morning auction, the first since the water release began.

    The decades-long release has been strongly opposed by fishing groups and criticized by neighboring countries. China immediately banned imports of seafood from Japan in response, adding to worries in the fisheries community and related businesses.

    A citizens’ radiation testing center said that it is getting inquiries and that more people may bring in food, water and other samples as radiation data is now a key barometer to decide what to eat.

    Japanese fishing groups fear the release will do more harm to the reputation of seafood from the Fukushima area. They are still striving to repair the damage to their business from the meltdown at the power plant after the earthquake and tsunami.

    “We now have this water after all these years of struggle when the fish market price is finally becoming stable,” Igari said after Friday’s auction. “Fisheries people fear that prices of the fish they catch for their living may crash again, and worry about their future living.”

    The Japanese government and the plant’s operator, Tokyo Electric Power Company Holdings, say the water must be released to make way for the facility’s decommissioning and to prevent accidental leaks of insufficiently treated water. Much of tank-held water still contains radioactive materials exceeding releasable levels.

    Some wastewater at the plant is recycled as coolant after treatment, and the rest is stored in around 1,000 tanks, which are filled to 98% of their 1.37 million-ton capacity. The tanks cover much of the complex and must be cleared out to make room for new facilities needed for the decommissioning process, officials say.

    Authorities say the wastewater after treatment and dilution is safer than international standards require and its environmental impact will be negligible. On Friday, the first seawater samples collected after the release were significantly below the legally releasable levels, the power company said.

    But having suffered a series of accidental and intended releases of contaminated water from the plant early in the disaster, hard feelings and distrust of the government and TEPCO run deep in Fukushima, especially in the fishing community.

    There are worries that the release, which TEPCO says will take 30 years or until the end of the plant decommissioning, could mean a tough future for younger people in the fishing town where many businesses are family-run.

    Fukushima’s current catch already is only about one-fifth its pre-disaster level due to a decline in the number of fishermen and decreases in catch sizes.

    The government has allocated 80 billion yen ($550 million) to support fisheries and seafood processing and combat potential reputation damage by sponsoring campaigns to promote Fukushima’s Joban-mono and processed seafood. TEPCO has promised to “appropriately” deal with reputational damage claims, and those hurt by China’s export ban.

    Tetsu Nozaki, head of the Fukushima prefectural fisheries cooperatives, said in a statement Thursday that worries of the fishing community will continue for as long as the water is released.

    “Our only wish is to continue fishing for generations in our home town, like we used to before the accident,” Nozaki said.

    Fish prices largely depend on the sentiment of wholesalers and consumers in the Tokyo region, where large portions of Fukushima catch goes.

    At the Friday auction at the Numanouchi port, the price for flounder was down from its usual level of about 3,500 yen ($24) per kilogram (2.2 pounds) to around 3,000 yen ($20), said Igari, the middleman.

    “I suspect the result is because of the start of the treated water release from the Fukushima Daiichi and fear about its impact,” he said.

    Igari said the discharge is discouraging but hopes careful testing can prove the safety of their fish. “From the consumers’ point of view about food safety at home, I think the best barometer is data,” he said.

    At Mother’s Radiation Lab Fukushima in Iwaki, a citizens’ testing center known as Tarachine, tests were being conducted on water samples, including on tritium levels for seawater that the lab collected from just off the Fukushima Daiichi plant before the release.

    Lab director Ai Kimura said anyone can bring in food, water or even soil, though the lab has big backlogs because testing take time.

    She joined the lab after regretting she might not have fully protected her daughters because of the lack of information and knowledge earlier in the disaster. She says having independent test results is important not because of distrust of government data, but because “we learned over the past 12 years the importance of testing in order to get data” on what mothers want to know for serving safe and healthy food to their children and families.

    Kimura said people have different views about safety — some are fine with government standards, others want them to be as close to zero as possible.

    “It’s very difficult to make everyone feel safe. … That’s why we conduct testing so we can visualize data on food from different places and help people have more options to make a decision,” she said.

    Kimura said the lab’s testing has shown Fukushima fish to be safe over the past few years and she happily eats local fish.

    “It’s totally fine to eat fish that does not contain radiation,” she said.

    But now the treated water release will bring new questions, she said.

    Aeon, a major supermarket chain Aeon that has been testing cesium and iodine levels in fish, announced plans to also test for tritium, a radionuclide inseparable from water.

    Katsumasa Okawa, a fish store and restaurant operator who was at one of his four shops Thursday, said customers were sparse after the plant started its final steps of the treated water release at 1 p.m. and media reports covered the development.

    But on Friday, he said, his Yamako seafood restaurant next to Iwaki’s main train station seemed to be doing business as usual, with customers coming in and out during lunchtime.

    He personally has been looking forward to the wastewater draining as a big step toward decommissioning the nuclear plant, Okawa said. “I feel more at ease thinking those tanks will finally go away.”

    Okawa, who said he did voluntary testing of his products for a number of years after the disaster, is worried about returning to the days of radiation testing and data as a benchmark of what to eat.

    “I think too much testing data only triggers concerns,” he said. “I’m confident about what I sell and I will just keep up the work.”

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