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Why it can cost millions to win America's biggest horse race 2024-06-12 20:04:41+00:00 - The Kentucky Derby is the biggest horse race in America, and preparing for it takes millions of dollars and thousands of people. We went to Churchill Downs days before the big race to see what it takes to train the winning horse and prepare the century-old track for 400,000 fans. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Ukraine's Azov Brigade, a unit with a controversial past, can now use American weapons to fight the Russians 2024-06-12 20:00:31+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview The US State Department announced Monday that it has lifted a ban on the Azov Brigade, a former Ukrainian militia group with an ultranationalist history, allowing the current National Guard unit to receive American weapon shipments and training. A State Department spokesperson told BBC on Tuesday that following a vetting of the brigade, there was "no evidence of gross violations of human rights." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The group was established in 2014 as the Azov Battalion by a figure linked to far-right hate groups in Ukraine. The unit's members' alleged far-right ties led the US to bar the group from receiving assistance. Related stories Now known as the Azov Brigade, the unit became part of the Ukrainian National Guard in 2015. The unit sought to distance itself from its checkered past, yet it has also been banned from receiving US assistance for years, since the passing of a 2018 congressional spending bill. Advertisement The State Department has dismissed the congressional ban and said the Azov Brigade "passed Leahy vetting," referring to Leahy Law, which prevents the US from supporting foreign entities that have committed major human rights violations. A Ukrainian soldier inside the ruined Azovstal steel plant stands under a sunlight ray in his shelter in Mariupol, Ukraine, on May 7, 2022. Dmytro Kozatski/Azov Special Forces Regiment of the Ukrainian National Guard Press Office via AP "Understanding by our allies how important it is to help each of these units is another important step on the way of our struggle for independence," Ukrainian National Guard spokesperson Ruslan Muzychuk told The Washington Post following the State Department announcement. The Kremlin has used the Azov Brigade as a talking point in justifying Russia's invasion of Ukraine, as President Vladimir Putin has previously stated that his objectives of the war include the "demilitarization and de-Nazification of Ukraine." The Azov Brigade has claimed that it has evolved from its problematic past and that its leadership has changed since its inception. Advertisement In a response to the decision on Instagram, the unit wrote that "obtaining Western weapons and training from the United States will not only increase the combat ability of Azov, but most importantly, contribute to the preservation of the lives and the health of personnel." "This is a new page in our unit's history," the brigade said, adding that "Azov is becoming even more powerful, even more professional and even more dangerous for occupiers." The brigade is closely associated with its significant, albeit costly, defense of Mariupol in 2022 at the start of Russia's full-scale invasion of Ukraine, where it was eventually forced to surrender its fight from the Azovstal steel mill. The unit's soldiers have been celebrated as heroes and symbol of Ukrainian resistance.
Meta VPs are getting squeezed out amid Mark Zuckerberg's 'permanent' efficiency mode 2024-06-12 19:52:50+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Meta's upper ranks are feeling the heat of permanent efficiency. The company formerly known as Facebook is looking to whittle down its hundreds of vice presidents, according to three people with knowledge of the company. As CEO Mark Zuckerberg makes what was a year of efficiency — in which more than 20,000 Meta employees were laid off — into a "permanent part" of how Meta operates, executives are not being shielded from tougher performance standards and ongoing reorganizations that are leading to incremental cuts to teams. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The number of vice presidents at Meta peaked last year at around 300 individuals with that title, according to one of the people familiar. That number grew from about 180 individuals in previous years. Advertisement While a handful of VPs last year left the company in the run-up to a second wave of mass layoffs, Zuckerberg is looking to get the total number of VPs at Meta closer to 250, the person added. There are five levels of VP within the title. "The overall goal is still to reduce the people in the middle and at the top and increase people on the bottom," the person said. "It's getting middle-heavy and top-heavy again." Related stories A Meta spokesman declined to comment, pointing BI to earlier public comments by Zuckerberg about the company's work on efficiency. Last year, Zuckerberg declared he no longer wanted a company of "managers managing managers," and Meta went about "flattening" some of the reporting structure. But Meta continued last year to honor something referred to internally as "lagged promos," wherein people who are up for a promotion to a new level often work for a year in a new role before their title changes. It led to some growth in management and executive ranks that were not exactly planned under a new era of forever efficiency, two of the people familiar noted. Advertisement VP ranks are thinning through half-year "calibrations," effectively soft performance reviews that occur mid-year at Meta, and through the formal performance review process that occurs once a year, typically during the first quarter. Meta VPs are subject to "stack ranking," a process popular in tech wherein peers are evaluated against each other to see who has performed better. Their work and impact is being "really scrutinized," another of the people familiar said. They are also subject to a companywide mandate for performance reviews that requires managers to put between 10% and 12.5% of their teams into lower performance categories, which often leads to being put on a performance improvement plan, or PIP. While the mandatory range for lower performers is lower than it was around the time of Meta's mass layoffs (14.5% to 16.5%), it's still higher than it was prior to those layoffs (7% to 10.5%). Such a performance review often leads to being laid off or, in the case of some VPs, being told in advance that your position is being eliminated. Advertisement "Some people are leaving because they're getting other jobs, some people because of their performance," one of the people familiar said. "Some people are struggling with changes or getting caught up in changing priorities." Are you a Meta employee or someone with a tip or insight to share? Contact Kali Hays at khays@businessinsider.com or on secure messaging app Signal at 949-280-0267. Reach out using a non-work device.
YouTuber Jake Paul launches men's personal care line at Walmart 2024-06-12 19:49:00+00:00 - Jake Paul vs. Mike Tyson boxing match now sanctioned by Texas Jake Paul vs. Mike Tyson boxing match now sanctioned by Texas 01:00 Social media personality and boxer Jake Paul is now selling personal care products for men at Walmart, saying the new line doesn't contain "unhealthy stuff." The YouTube influencer announced the launch of his skin care line, called "W," on Wednesday, saying he developed the idea after going to the store to buy deodorant two years ago. "I realized there wasn't a good modern day solution made without unhealthy stuff," Paul posted on X. "I wanted something without parabens, artificial dyes, hormone disrupters, harsh sulfates, and less silicone... but also something that really worked. There weren't any options, so I decided to create the solution myself." Social media personality and boxer Jake Paul attends a press conference in New York City on May 13, 2024, to promote a sanctioned professional fight with former heavyweight champion Mike Tyson. David Dee Delgado / REUTERS Paul's product line will be expanded to include additional items later this summer, but currently offers body wash and spray as well as antiperspirant. They come infused with vitamins, according to Paul, a self-described clean freak who is slated to step into the ring and face Mike Tyson in an exhibition boxing match in November. "Sweating has long been a longtime insecurity of mine," Paul stated in a news release. "I always want to smell fresh, but training in Puerto Rico's humid climate makes it a real challenge." The products are priced below $10 and can be found at Walmart stores nationwide, the retailing giant confirmed.
Top Southwest shareholder signals support for Elliott Management's activist campaign 2024-06-12 19:44:00+00:00 - Southwest Airlines CEO Bob Jordan speaks as he is interviewed by CNBC outside the New York Stock Exchange on Dec. 9, 2021. A top Southwest Airlines shareholder on Wednesday signaled its support for Elliott Management's activist campaign to oust CEO Bob Jordan and Executive Chairman Gary Kelly, as the carrier struggles with underperformance compared with some of its rivals. Artisan Partners ' Daniel O'Keefe and Michael McKinnon said in a public letter to Southwest's board that the firm noted Elliott's Monday campaign launch "with great interest." The two said Artisan had in recent months told Kelly privately "many of the same points" that Elliott made publicly. "We are writing today to urge the Board to reconstitute itself and upgrade the Company's leadership," O'Keefe and McKinnon wrote. Southwest said in a statement the company welcomed feedback from all shareholders. "The Board is confident in the ability of our CEO and Leadership Team to evolve the business and drive long-term value for all stakeholders," the statement read. Artisan, a $158.6 billion asset manager, owns a 1.8% stake in Southwest, making it the 10th-largest shareholder of record. It has held a stake in the airline on and off since 2001, according to FactSet data, amassing its current holdings beginning in 2020. O'Keefe and McKinnon oversee Artisan's Global Value Team, which manages $28 billion in assets. Elliott has an economic interest in Southwest worth $1.9 billion and is seeking a comprehensive business review in addition to the ouster of Jordan and Kelly. Earlier Wednesday, Jordan said he had no plans to resign in the face of Elliott's campaign, adding that Elliott was welcome to present its ideas but would not be "directing the company," Reuters reported. The move is likely to add pressure to the company, however. Elliott said in its presentation that it had surveyed shareholders, as well as employees and customers, before revealing its stake. Other top Southwest shareholders include Putnam Investment Management and T. Rowe Price, as well as BlackRock and Vanguard. Together, not including Elliott's economic interest, institutional shareholders control around 60% of Southwest's shares outstanding. — CNBC's Leslie Josephs contributed to this report.
NAACP sues after Virginia school board restores Confederate names on schools 2024-06-12 19:35:26+00:00 - A Virginia county school board is now facing a federal lawsuit after it voted last month to reinstate the names of Confederate leaders to two schools against considerable community opposition. The Virginia chapter of the NAACP and five students in the Shenandoah County public school system sued the school board, alleging that the reversal of the school names violates the plaintiffs' First and 14th Amendments rights, as well as Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act. The complaint, filed on Tuesday, states: When Black students are compelled to attend schools that glorify the leaders and ideals of the Confederacy, they are subject to a racially discriminatory educational environment, which has significant psychological, academic, and social effects. When students are required to identify as members of student bodies or teams named to honor Confederate leaders in order to participate in school activities, they are required against their will to endorse the violent defense of slavery pursued by the Confederacy and the symbolism that these images have in the modern White supremacist movement. The lawsuit asks the court to find that the board violated the Constitution by restoring the Confederate names and to order the schools to be stripped of those names a second time. The Rev. Cozy Bailey, the president of the Virginia NAACP chapter, said in a statement that the school board had “reaffirmed their commitment to White supremacy and the celebration of a race-based rebellion” with its vote last month. School board chairman Dennis C. Barlow did not return NBC News' emailed request for comment. In 2020, during the racial reckoning sparked by the murder of George Floyd by Minneapolis police officers, the Shenandoah County School Board — staffed by a different group of members — renamed Stonewall Jackson High School as Mountain View High School, and Ashby-Lee Elementary School as Honey Run Elementary School. The protests in 2020 also spurred institutions across the South to dismantle monuments and remove other memorials to Confederate leaders. In May, the Shenandoah County School Board voted to restore the names of Stonewall Jackson, Robert E. Lee and Turner Ashby to the schools. It was the first time a school board had reversed such a decision, and it was opposed by a majority of community members who submitted public comments at the meeting. The lawsuit refers to comments by several board members at the May meeting. One board member, Thomas Streett, said he did not “believe in” racism, according to the complaint, and another board member, Gloria Carlineo, said, “We’ve had a Black president, a Black attorney general, and some of our richest billionaires are Black. Is that what oppression looks like?”
Musk, SpaceX sued by former employees alleging harassment, retaliation 2024-06-12 19:32:00+00:00 - Eight former SpaceX employees are suing the rocket company and its CEO Elon Musk, alleging that Musk personally ordered their firing after they accused SpaceX of tolerating sexual harassment in the workplace. The eight employees were all fired in 2022 after they circulated an “open letter” within SpaceX alleging that Musk’s “behavior in the public sphere is a frequent source of distraction and embarrassment,” according to a copy of the lawsuit provided by their lawyers. The lawsuit alleges that Musk “runs his company in the dark ages — treating women as sexual objects to be evaluated on their bra size, bombarding the workplace with lewd sexual banter, and offering the reprise to those who challenge the ‘Animal House’ environment that if they don’t like it they can seek employment elsewhere.” SpaceX did not immediately respond to a request for comment on the lawsuit. Gwynne Shotwell, SpaceX’s president and chief operating officer, defended the company Tuesday in comments to The Wall Street Journal in an article detailing many of the former employees’ accusations. Shotwell told the Journal that its reporting painted “a completely misleading narrative” of the company and that “Elon is one of the best humans I know.” She told the newspaper that SpaceX fully investigates all complaints of harassment and takes appropriate actions. SpaceX Starship on June 5, in Brownsville, Texas. Brandon Bell / Getty Images file The lawsuit alleges several violations of federal and state labor law, including that Musk “engaged in sexually harassing conduct and creation of a hostile work environment personally” and that he retaliated against the employees for “opposing the discrimination, harassment, and hostile work environment that they observed.” Some of the plaintiffs say they directly experienced sexual harassment, according to the lawsuit. One, Paige Holland-Thielen, an engineer, says that a higher-ranking employee responded to a graph of plotted data by making a “sexual allusion to an erect penis” and asking her, “How can we get it up, up, up?” according to the lawsuit. She reported the matter to SpaceX’s human resources office and didn’t know the outcome, the suit says. Another plaintiff, engineer Rebekah Clark, said in the lawsuit that she heard comments about breasts at work after Musk made a sexually charged comment on X. She raised her concerns to SpaceX managers at a meeting in 2022 and was told “SpaceX is Elon and Elon is SpaceX,” according to the lawsuit. And a third, engineer Claire Mallon, says she reported a male colleague to HR for repeatedly bringing up sexually explicit topics with her, including inviting her to a sex party. HR “did not take any discernible action” and the man was promoted, the suit says. The suit alleges that Musk’s posts on Twitter, now X, encouraged sexually inappropriate language and behavior in the workplace among rank-and-file employees. It cites at least 20 of his posts, including several that make penis references. NBC News has not independently verified the veracity of the former employees' claims. The eight firings were already the subject of a complaint against SpaceX brought in January by a National Labor Relations Board regional official, who accused the company of violating federal labor law. SpaceX responded to that complaint with a lawsuit seeking to have the structure of the NLRB declared unconstitutional. The NLRB complaint and the related lawsuit are still pending. Wednesday’s lawsuit is different from the NLRB complaint because it seeks to hold Musk personally liable for SpaceX’s workplace environment and for the terminations. “Musk thinks he’s above the law. Our eight brave clients stood up to him and were fired for doing so,” Laurie Burgess, a lawyer for the plaintiffs, said in a statement. "We look forward to holding Musk accountable for his actions at trial." The lawsuit was filed in California state court in Los Angeles, according to the copy provided by the lawyers. It comes one week after SpaceX was in a worldwide spotlight for successfully launching its 400-foot Starship megarocket on an uncrewed test flight to orbit and back.
Judge bars 'pharma bro' Martin Shkreli from streaming Wu-Tang Clan album after suit says he copied it 2024-06-12 19:31:00+00:00 - Former drug company executive Martin Shkreli and his lead attorney Benjamin Brafman arrive at U.S. District Court for the fourth day of jury deliberations in his securities fraud trial in the Brooklyn borough of New York City, U.S., August 3, 2017. A federal judge temporarily barred notorious "pharma bro" Martin Shkreli from streaming or disseminating copies of a one-of-a-kind Wu-Tang Clan album he had forfeited as part of his criminal fraud conviction in 2017. The order by Judge Pamela Chen on Tuesday night came a day after the company that had bought the album, "Once Upon a Time in Shaolin," for $4.75 million sued Shkreli in U.S. District Court in Brooklyn, New York. The suit claims Shkreli, who remains on supervised release in his criminal case, apparently retained copies of the hip-hop album after it was sold, and played it online as recently as Sunday in violation of his forfeiture order. A spokesman for the U.S. attorney's office in Brooklyn told CNBC "no comment" on Wednesday when asked if prosecutors were taking action against Shkreli in response to the claims in the civil suit by the Cayman Islands-based company PleasrDAO. Chen in her order Tuesday wrote that PleasrDAO, "is likely to succeed on the merits" of the complaint, "or raise significantly serious questions going to the merits of the Forfeiture Order, violations of the Defend Trade Secrets Act," and "misappropriation of trade secrets." The judge also scheduled a hearing for June 25 in the case, where she could continue the injunction on Shkreli, and order him to give the plaintiff an inventory of any copies of the album he retained. Steven Cooper, a lawyer for PleasrDAO, said Wednesday that he could not comment on whether he has been in touch with prosecutors on Shkreli's alleged violation of his forfeiture order. "I wouldn't be surprised based on that activity that prosecutors or the probation office would be interested in this matter," Cooper told CNBC. The attorney said his client had sued Shkreli because "his conduct ramped up dramatically" and because PleasrDAO plans to play some songs from the album at an exhibit at a museum in Tasmania, Australia, beginning later this week. The suit said that on Sunday, Shkreli wrote a post on his social media account on X that said, "well @pleasrdao blocked me from their account so I think I will play the album on spaces now." Less than an hour later, Shkreli's X account hosted a Spaces session entitled "Wu tang official listening party" and tweeted "Never heard before wu tang stream," according to the suit. "During the Spaces session, Shkreli played music from the Album that any participant could hear. According to X, 4.9 thousand listeners 'tuned in,'" the suit said. Cooper said, "His pattern of bad behavior has gone on for a very long time, and a lot of it was directed against my client. ""The fact that he retained copies [of the album] were violative of his forfeiture, and there could be consequences other than the civil complaint," Cooper said. A lawyer for Shkreli did not immediately respond to a request for comment. Shkreli, 40, was convicted of securities fraud in 2017. Jurors found that he had misled investors about the performance of two hedge funds he ran, and that he conspired to fraudulently manipulate shares of a drug company he founded. Before his conviction, Shkreli became nationally notorious in 2015 for hiking the price of the lifesaving drug Daraprim overnight by more than 4,000% at another pharma firm he ran. In January, a federal appeals court upheld a lifetime ban on Shkreli from working in the pharmaceuticals industry, and an order to pay more than $64 million in disgorged profits for blocking competition to Daraprim. Shkreli was released from prison in May 2022 and is now serving a three-year term of supervised release. As part of his criminal sentence, Shkreli was ordered to forfeit nearly $7.4 million to the U.S. government and to surrender a set of assets to satisfy that order. The assets included "Once Upon a Time in Shaolin," the Lil Wayne album "Tha Carter V," an engraving on paper by Pablo Picasso and $5 million held in an E-Trade brokerage account. Shkreli bought the Wu-Tang Clan album in 2015 for $2 million, setting a Guinness world record for the most expensive musical work ever sold. The 31-track, two-disc Wu-Tang Clan album, came in a hand-carved, nickel-and-silver-cased box set, which itself was nestled in a larger leather box. In July 2021, while Shkreli was still in prison, the album was sold by the government for an undisclosed price to a buyer who was not publicly identified. At the time of the sale, Shkreli owed almost $2.4 million on the forfeiture order. In PleasrDAO's lawsuit, the company said it bought "Once Upon a Time in Shaolin" in two separate transactions in 2021 and 2024, for about $4 million and $750,000, respectively. The second purchase, the suit says, was for "the copyrights in and exclusive right to exploit the recordings." PleasrDAO's suit described the company as "an international entity that collects and publicly displays culturally significant media and materials with the intent of creating ecosystem experiences that encourage participation and interaction throughout the United States and other countries."
Federal Reserve holds interest rates at two-decade high as it waits for inflation to cool 2024-06-12 19:18:00+00:00 - The Federal Reserve held interest rates at a two-decade high on Wednesday, as it awaits more signs of inflation cooling. Officials at the US central bank expect to cut rates just once this year, according to projections released on Wednesday after their latest two-day meeting. As recently as March, the last time these projections were released, policymakers expected the Fed to cut rates three times this year. This time around, they opted to keep rates between 5.25% and 5.5%, where they have been for nearly a year. While the Fed chair, Jerome Powell, described price growth as “still too high”, he welcomed official data released on Wednesday which signaled that it had eased. “We want to gain further confidence,” Powell said during a news conference. “Certainly more good inflation readings will help with that.” Inflation cooled slightly in the US last month, according to new consumer price index data that was also released on Wednesday, as consumers’ frustration over high prices continues to loom over November’s presidential election. The consumer price index rose at annual pace of 3.3% in May, slipping back from the previous month’s reading of 3.4%. Price growth has fallen dramatically since surging above 9% two years ago, to its highest level in a generation, during the economic fallout of the Covid-19 pandemic. But with many Americans still feeling the pinch, the consumer price index has yet to fall as far as policymakers want. While fuel prices and airline fares fell in May, and grocery price inflation was flat, rising shelter costs, including rent, helped prop up the headline rate of inflation on the year. On a month-to-month basis, however, prices were unchanged overall – bolstering hopes that inflation is heading back towards normal levels. The so-called “core” consumer price index, which strips out volatile food and energy prices, also rose at a weaker-than-expected monthly rate of 0.2%. skip past newsletter promotion Sign up to The Stakes — US Election Edition Free newsletter The Guardian guides you through the chaos of a hugely consequential presidential election Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Still, the slight cooling was not enough for Fed officials on Wednesday, who emphasized that they were waiting for inflation to hit their target of 2%. “The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” the Fed said in a statement on Wednesday. The Fed must balance inflation with the labor market, which can weaken when interest rates are too high. But so far, the labor market has proven strong amid high interest rates. In May, the number of jobs added to the economy surpassed expectations, and unemployment has been under 4% for the last two years – the longest stretch in more than 50 years. Anxiety over the state of the economy continues to linger. Nearly three in five Americans wrongly believe the US is in recession, according to a Harris poll conducted exclusively for the Guardian last month. Unemployment is nearing 50-year lows, and Wall Street has risen sharply since the fall. But as Joe Biden seeks re-election to the White House, surveys indicate he is struggling to reassure voters that the economy has strengthened on his watch. Wall Street opened higher on Wednesday morning as the latest inflation data raised hopes that the Fed could cut rates several times before the end of the year. “We still need several more months of this, but the fundamentals are encouraging,” said Paul Ashworth, chief North America economist at Capital Economics, who suggested a rate cut as soon as September was “still in play”.
GameStop raises $2.1 billion as "meme stock" traders drive up share price 2024-06-12 18:54:00+00:00 - Why are GameStop shares on the rise again? Why are GameStop shares on the rise again? Why are GameStop shares on the rise again? GameStop received a $2.1 billion infusion of cash this week after selling 75 million new shares to eager investors. The video game retailer, whose stock has been on a rollercoaster in recent weeks after being embraced by retail investors, disclosed in a regulatory filing on Tuesday that it plans to use the new funding for general corporate purposes, including possible acquisitions. GameStop sold the shares at an average price of $28.50 each, according to Wedbush Securities. The stock sale comes three weeks after the company sold an additional 45 million shares, raising $933 million. The stock fell 60 cents, or 1.9%, to $29.90 in afternoon trading. GameStop shares soared in May after Keith Gill, a popular trader who touts his results online under the monikers "Roaring Kitty" and "DeepF_Value," resurfaced on social media after a long hiatus. Earlier this month, Gill posted a screenshot in a Reddit forum showing he owns roughly $116 million in GameStop shares. Gill held a live video stream from his YouTube account last week and explained his rationale for backing GameStop. During the stream, Gill alluded to the company's efforts to shift its business model from selling games in brick-and-mortar stores to streaming. "Given that GameStop's share price closed at $46 on June 6, we had assumed it would complete the sale at an average price of $40. Instead, the shares declined precipitously on June 7, reflecting news from Reddit following a rambling presentation by Roaring Kitty (Keith Gill), closing that day at $28," Wedbush, which set a 12-month price target of $11 on GameStop's stock, said of the new share offering. GameStop didn't immediately respond to a request for comment. Despite being a hot ticket among some investors, GameStop continues to lose money. Last week, the company reported a loss of $32.3 million on revenue of $882 million in its fiscal first quarter, with declining sales of hardware, software and collectibles. That compared with a loss of $50.5 million on revenue of $1.2 billion in the year-ago period.
Sony Pictures acquires Alamo Drafthouse dine-in movie theater chain 2024-06-12 18:48:00+00:00 - Sony Pictures Entertainment, the Hollywood studio behind recent hits like "Bad Boys: Ride or Die" and "Anyone but You," has acquired the Alamo Drafthouse Cinema dine-in movie theater chain, the two companies announced Wednesday. Alamo will be housed under a new corporate division called Sony Pictures Experiences, and the chain will continue to operate all 35 of its locations across 25 metro areas in the U.S., the companies said in a joint statement. The deal is notable partly because major movie studios were long legally prohibited from owning brick-and-mortar theaters following a landmark Supreme Court antitrust case decided in 1948. But the so-called Paramount Consent Decrees were nixed in 2020, allowing companies to get back in the theatrical exhibition business. Sony is following in the footsteps of Netflix, which purchased the Egyptian Theatre in Los Angeles and the Paris Theater in New York City in separate transactions. Disney, for its part, owns and operates the El Capitan Theatre on Hollywood Boulevard in Los Angeles. However, Sony is so far the only major studio to snatch up a chain. Alamo Drafthouse was founded in 1997 as a family-owned repertory cinema in Austin, Texas. It has since expanded across the nation, cultivating a passionate following of cinephiles who thrill to its dine-in food service, alcoholic drinks and curated film programs. The theaters operated under the Alamo brand offer a mix of new releases and repertory titles, including horror and science-fiction fare that tend to draw large audiences. Sony said Alamo will "continue to welcome content from all studios and distributors." Alamo's devoted customer base has not always translated into financial success, however. The company filed for Chapter 11 bankruptcy in March 2021, shuttered some locations and called off plans to open new locations. It emerged from bankruptcy a few months later. In general, the theatrical marketplace is on shaky footing these days. The box-office success of "Barbie" and "Oppenheimer" helped reinvigorate theatrical moviegoing last summer, but exhibitors still confront existential headwinds, including the growing popularity of at-home streaming options. "We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of," Tim League, the founder of Alamo Drafthouse, said in a statement. "They have a deep respect and understanding of cinema’s ability to both drive growth and create lasting cultural impact which aligns perfectly with everything Alamo Drafthouse stands for," League added, referring to Sony. Michael Kustermann will remain chief executive of Alamo and head up the new Sony Pictures Experiences unit, reporting to Ravi Ahuja, the president and chief operating officer of Sony Pictures Entertainment. The company's headquarters will remain in Austin, according to Sony. Sony has been on a hot streak at the worldwide box office in recent months, raking in ticket sales for hits such as "Bad Boys: Ride or Die," "The Garfield Movie" and the sleeper romantic comedy "Anyone but You." But not all of the studio's recent releases have found favor with audiences. "Madame Web," a superhero saga tied to the Spider-Man universe, fell flat at the box office when it debuted in February.
Kevin McCarthy's 'revenge tour' suffers embarrassment in its first outing 2024-06-12 18:38:06+00:00 - Former House Speaker Kevin McCarthy's “revenge tour” suffered a flat tire in its first showing. McCarthy and his well-heeled allies are seeking retribution against the Republicans who voted to remove him as speaker last year, and one way he’s tried to get back at them — aside from savaging them in the media — is by backing their challengers in primary races. The former speaker saw his first shot at retribution go up in flames Tuesday, as his nominee to oust Rep. Nancy Mace, R-S.C., in the District 1 primary failed mightily. NBC News reports McCarthy-linked groups spent more than $4 million hoping to boost attorney Catherine Templeton, and all that amounted to was a 27-point drubbing. McCarthy and Co.’s support for Templeton placed them at odds with Donald Trump, whose endorsement of Mace, she said, “means more today than it has ever meant.” According to some reports, Mace and Virginia Rep. Bob Good were considered the most vulnerable targets in the group McCarthy has called the “crazy eight led by Matt Gaetz.” Good, who endorsed Ron DeSantis in the Republican presidential primary, is the only member of that group who’s received a full-on condemnation from Trump this year. Trump endorsed John McGuire, the McCarthy-aligned opponent, in the primary. So there's potential for a McCarthy "win" — if you want to call it that, since it's drafting in the wake of Trump's involvement. There’s a McCarthy-aligned opponent running in the primary against Gaetz, too; ousting him is likely an uphill climb, given that Gaetz received nearly 70% of the vote in his last primary. As Politico notes, McCarthy has limited opportunities to exact his revenge going forward: Rep. Eli Crane (Ariz.) also voted to oust McCarthy and faces a primary later this summer. Two of McCarthy’s other detractors — Rep. Matt Rosendale (Mont.) and former Rep. Ken Buck (Colo.) — aren’t running for reelection, while two others — [Tennessee Rep. Tim] Burchett and Rep. Andy Biggs (Ariz.) — don’t have a primary opponent. This “revenge tour” by McCarthy was supposed to show his power as an independent force in Republican politics. So far, it’s shaping up to be a reflection of his weakness and political irrelevance.
Text of the policy statement the Federal Reserve released Wednesday 2024-06-12 18:36:22+00:00 - WASHINGTON (AP) — Below is the statement the Federal Reserve released Wednesday after its latest policy meeting ended: Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee’s 2 percent inflation objective. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Thomas I. Barkin; Michael S. Barr; Raphael W. Bostic; Michelle W. Bowman; Lisa D. Cook; Mary C. Daly; Philip N. Jefferson; Adriana D. Kugler; Loretta J. Mester; and Christopher J. Waller.
Lindsey Graham once gloated about Democrats' donor problem. These groups are fighting back. 2024-06-12 18:13:01+00:00 - BR50KLYN doesn't have a bank account, a website or even an X handle. It doesn't show up on campaign finance reports filed with the Federal Election Commission and has only a single, unpaid staffer. But the loose-knit group of Democratic donors can raise as much as $25,000 when it decides to support a candidate — enough to make a difference in an overlooked House race. The money comes from an email list of more than 250 donors, who periodically receive a lengthy analysis of why a particular candidate is a good investment. Only a handful give the maximum — currently $3,300 per candidate in the general election for a federal race — while the rest give anywhere from $25 to a couple hundred dollars to each candidate. "We aren't expecting any personal or policy favors," said Kerith Aronow, the group's volunteer donor adviser. "We're just trying to move the needle to candidates that aren't getting enough money." The groups are pragmatic, looking more for winnable races than candidates who pass litmus tests. BR50KLYN is one of a growing number of donor collectives, loosely affiliated groups of small-dollar donors who are pooling their resources and scouting out candidates for state legislature up to Congress who could use the help. For now, the groups are made up mostly of Democrats and include more women than is typical among those who donate to political campaigns. The groups are also generally pragmatic, looking more for winnable races than candidates who pass litmus tests on certain policies. The groups use publicly available information and Zoom calls or even in-person meetups with the candidates themselves to decide who to give to. They look at race ratings from the nonpartisan Cook Political Report, fundraising information on OpenSecrets and polls on 538 the way day traders scour the internet searching for an undervalued stock. And they could play a key role in the November elections, especially for overlooked U.S. House and state legislative races. The collectives address a major problem that Democrats have long had with small-dollar donations. Since Barack Obama blew up the traditional model of presidential campaign fundraising in 2008 with a massive haul from small donors who gave online, Democrats have tended to swamp a handful of charismatic candidates for statewide office with small donations, only for them to lose badly: Wendy Davis for Texas governor 2014; Beto O'Rourke for senator in Texas in 2018; and Senate candidates Amy McGrath in Kentucky, Jaime Harrison in South Carolina and Sara Gideon in Maine in 2020. South Carolina Sen. Lindsey Graham, a Republican who defeated Harrison by more than 10 points, even gloated about it on Election Night. "All the liberals in California and New York, you wasted a lot of money," he said in his victory speech. "This is the worst return on investment in the history of American politics.” Those high-profile losses could be contributing to a sense of donor fatigue. As a recent NOTUS article highlights, both Republican and Democratic consultants say they are seeing a decline in small-dollar donations this year. They attribute this to factors that include inflation, disillusionment with American politics and burnout from the barrage of all-caps emails and texts from candidates seeking yet another donation. Sarah Kovner thinks that donor collectives can help prevent that burnout by giving small donors more effective ways to get involved. Along with fellow Democratic donor-activist Anne Hess, she started the New York Buddy Group in 2019 to raise money and sometimes volunteers for overlooked House and Senate candidates. The group, which now has a membership of about 140, holds informal weekly calls to discuss which races to target. About once a month, it invites three or four candidates for an hour Zoom call with its members and their friends. The average donation is $250, meaning the candidates can raise from $30,000 to $50,000 in an hour, which is a lot of money for a struggling House candidate. "It's not their stump speech," she said. "They mostly talk about where they are running, what's it like there, how they are going to win, what are the main issues on the campaign trail. By the end of the hour, you feel like you know them." Melissa Walker started her own donor collective in 2017 when a New York state senator said that the number of people at a holiday party they were at would be enough donors to flip a chamber of a state legislature. She eventually left her career as a middle-grade novel writer to run a "giving circles" program for The States Project, a Democratic-aligned group focused on state legislatures. "Our slogan this year is 'friends don't let friends give nonstrategic political donations,'" she said, before referring to a book about how the Oakland A's found undervalued professional baseball players. "It's really 'Moneyball.'" "Our slogan this year is 'friends don't let friends give nonstrategic political donations.'" — Melissa Walker, the states project The States Project now has 183 active circles with more than 20,000 total donors, thanks in part to a surge of activity after the Supreme Court overturned Roe v. Wade in 2022. On average, a circle can raise from $15,000 to $25,000, which goes pretty far in a state legislative race. The donations then go to a political action committee, which distributes the money to critical races in the state that each circle was targeting. In 2023, the circles collectively raised $3 million for Virginia legislative races. Many of the other collectives use the Democratic fundraising powerhouse ActBlue, but some groups are also working with Oath, an online platform launched in 2022 that allows Democrats to seek out races where small donations could make the most impact. Like the States Project, Oath is also popular because it doesn't pass along emails and phone numbers to the campaigns along with the donation, which cuts down on the follow-up texts and phone calls asking for more donations. Emily Amick, a former Capitol Hill staffer-turned-influencer who gives her Instagram and Substack followers advice on where to donate, says that keeping your phone number and email address from getting on the campaign lists is key to the donor collectives' work. Amick says that many first-time donors end up getting burned out by the constant fundraising messages. "When we get these people who are interested in civic engagement, and then we spam them, we just drive them away," she said. Small donors were supposed to help level the playing field in a campaign finance system flooded with billionaire megadonors, dark money and super PACs, but they never quite lived up to that promise. But if small-donor collectives continue to grow, they could finally stop Democrats from throwing money at losing candidates. As the A's general manager says in the movie version of "Moneyball," "I hate losing even more than I wanna win."
The world could soon see a massive oil glut. Here's why. 2024-06-12 18:09:00+00:00 - Good Question: What factors influence the price of gas? Good Question: What factors influence the price of gas? 03:01 The world could have a glut of oil by the end of the decade because of rising production combined with declining demand as consumers and businesses switch to electric vehicles and renewable energy, according to a new report from the International Energy Agency. The International Energy Agency said Wednesday that the world's total oil supply capacity is expected to rise to about 114 million barrels a day by 2030, which the group said would amount to "staggering" 8 million barrels a day beyond projected demand. That type of spare capacity hasn't been seen outside the COVID-19 lockdowns of 2020, when economies across the world shut down as governments sought to stop the spread of the deadly virus, the IEA said. The extra capacity could have "significant consequences for oil markets," ranging from the U.S. to OPEC member nations such as Saudi Arabia and Kuwait, it added. "This report's projections, based on the latest data, show a major supply surplus emerging this decade, suggesting that oil companies may want to make sure their business strategies and plans are prepared for the changes taking place," said IEA Executive Director Fatih Birol in a statement. Among the drivers for rising oil supplies are expectations that Americans and consumers in other developed nations will continue to shift to electric vehicles. Global sales of EVs could reach 40 million cars in 2030, with almost one in two new cars projected to be an EV at that time, the IEA forecasted. Could gas prices decline? It's possible that an oversupply of oil could lead to a "lower price environment," according to the IEA report. However, the analysis includes three projections for where oil prices could be in 2030, ranging from a high of more than $90 a barrel to a low of less than $60 a barrel within six years. Currently, oil is trading at about $82 a barrel. Still, one expert cautioned against reading too much into the report. "It's a long-range outlook, so it could be way off, or very close, but I'm a bit more concerned with the slowdown in EV adoption and the tremendous costs for countries adopting EVs," Patrick De Haan, head of petroleum analysis at GasBuddy, told CBS MoneyWatch in an email. Cheaper gas prices might not materialize by 2030 because some refineries have shut down in the U.S. and Europe, and there are fewer plans to build new facilities given the shift into solar, wind and other renewable energy sources, he added. "[T]he future is hazy when it comes to this potential impact to gasoline prices," De Haan said. "We'll still need refineries for some time, and if they shut down as the transition occurs, that could lead gas prices higher in the long run." In the short term, drivers are getting some near-term relief, as gas prices are now dropping across the nation due to weaker demand and lower oil prices. The average price for regular unleaded gas in the U.S. was $3.44 per gallon on Monday, down about 9 cents from a week ago and 14 cents from a year earlier, according to AAA.
Man, 46, arrested in connection with criminal investigation into PPE Medpro 2024-06-12 18:07:00+00:00 - An arrest has been made in connection with the criminal investigation into PPE Medpro, the company that was awarded large government personal protective equipment contracts during the Covid pandemic. In a statement, the National Crime Agency (NCA) said a 46-year-old man had been arrested at his north London home. The man is understood to have been arrested on suspicion of conspiracy to commit fraud and of attempting to pervert the course of justice. PPE Medpro secured two contracts worth £203m to supply PPE in the early months of the pandemic after normal competitive tendering regulations were suspended. The Conservative peer Michelle Mone and her husband, Douglas Barrowman, who have both acknowledged they were involved in the company, have previously been interviewed under caution by NCA investigators. Barrowman is not the person arrested on Wednesday. In media interviews they gave late in 2023, Mone and Barrowman adamantly denied any criminal wrongdoing in relation to PPE Medpro. The NCA said: “A 46-year-old man from Barnet, London, was arrested this morning at his home address as part of an ongoing NCA investigation into suspected criminal offences committed in the procurement of PPE contracts by PPE Medpro. He is currently being interviewed by NCA officers.” PPE Medpro was awarded contracts for the supply of millions of face masks and sterile surgical gowns in May and June 2020, after a first approach by Mone to the Cabinet Office ministers Michael Gove and Theodore Agnew, who were at the time responsible for procurement. The contracts were processed rapidly through the government’s “VIP” high-priority lane, which the government operated for companies that had political connections. Standard procurement rules requiring competition for government contracts were suspended at the onset of the pandemic, due to the urgent need to secure medical supplies. The government published a list of high-priority lane companies in November 2021, in which it named Mone as the person who had referred PPE Medpro. Mone, 52, rose to public prominence through the lingerie company Ultimo, which she founded in Scotland with her first husband, Michael Mone. David Cameron made her his “entrepreneurship tsar” in 2015, leading a review into ways of encouraging people from deprived communities to start their own business. He then appointed her to the House of Lords later the same year. Barrowman, 59, is a Scottish businessman based in the Isle of Man, who is the chair and founder of an offshore private wealth management firm on the island, Knox Group. In November 2022, the Guardian revealed that leaked documents produced by HSBC bank showed that Barrowman had been paid at least £65m from the profits of PPE Medpro, and had then transferred £29m into an offshore trust set up for the benefit of Mone and her three adult children. In their media interviews last year, Barrowman confirmed that he had made more than £60m profit, and had transferred money into the trust; the couple said that his children were beneficiaries of the trust as well. In December 2022, Mone announced that she was taking a leave of absence from the House of Lords, meaning she would no longer be an active member in the lawmaking function of the second chamber. A spokesperson said she was doing so “in order to clear her name of the allegations that have been unjustly levelled against her”. For three years – from the government’s publication of the PPE Medpro contracts in late 2020 until their media interviews last year – Mone and Barrowman denied via their lawyers, in response to questions from the Guardian, that they were involved in the business of PPE Medpro. In her interview with the BBC’s Laura Kuenssberg in December, Mone admitted that she had lied to the media, and said she was sorry for doing so, but pointed out that it was “not a crime” to do so. The NCA launched its investigation into PPE Medpro in May 2021, then in April 2022 it executed search warrants at Mone and Barrowman’s homes, and at the company’s offices in London and the Isle of Man. The NCA has since then confirmed that it is investigating PPE Medpro, saying in a statement: “The NCA opened an investigation in May 2021 into suspected criminal offences committed in the procurement of PPE contracts by PPE Medpro.” The Lords commissioner for standards launched an investigation in January 2022 into Mone’s “alleged involvement in procuring contracts for PPE Medpro leading to potential breaches” of the code of conduct governing peers’ membership of parliament’s second chamber. The commissioner’s investigation is on hold due to the NCA’s criminal investigation.
Sony Pictures acquires Alamo Drafthouse Cinema, the dine-in movie theater chain 2024-06-12 18:06:14+00:00 - Sony Pictures Entertainment is getting into the exhibition business. The studio behind recent films like “Bad Boys: Ride or Die” and “The Garfield Movie” has acquired the distinctive theater chain Alamo Drafthouse Cinema, the companies said Wednesday. Included in the deal is the genre film festival Fantastic Fest. Sony said it will continue to welcome content from all studios and distributors at the dine-in theaters. Alamo Drafthouse was founded in 1997 as a single screen, family-owned repertory theater in Austin, Texas, and has grown to 35 locations in North America. It distinguished itself in the exhibition landscape with drinks, dine-in food service and a cool vibe that became a favorite of cinephiles. “We are beyond thrilled to join forces with Sony Pictures Entertainment to expand our company vision to be the best damn cinema that has ever, or will ever, exist now in ways we could only ever dream of,” Alamo Drafthouse founder Tim League said in a statement. “They have a deep respect and understanding of cinema’s ability to both drive growth and create lasting cultural impact which aligns perfectly with everything Alamo Drafthouse stands for.” For Sony, the Drafthouse acquisition is also tied into its experiences initiatives, including its Wheel of Fortune Live! Traveling tour and the Wonderverse space in Chicago. Ravi Ahuja, the president and chief operating officer of Sony Pictures Entertainment, also noted that the studio’s Crunchyroll films are particularly aligned with the interests of Drafthouse fans. Alamo Drafthouse has seen its ups and downs over the years. In March 2021, the company filed for Chapter 11 bankruptcy, closed some locations and canceled plans to open new ones. Alamo emerged from bankruptcy at the end of May 2021, under the ownership of League, Altamont Capital Partners and Fortress Investment Group. Michael Kusterman, a former executive at Caveman Foods, was named Alamo CEO. He will remain, heading the newly established Sony Pictures Experiences division and reporting to Ahuja, the statement said. Last year following the frenzy of Barbenheimer, employees at the Alamo Drafthouse in Manhattan and Brooklyn voted to unionize. Similar efforts were attempted at locations in San Francisco and Austin and were met with resistance from the leadership. For many years, Hollywood studios could not run movie theaters and control what was played on those screens following a landmark antitrust Supreme Court case in 1948 that outlawed practices like “block booking,” in which studios required theaters to book a bundle of their films. Each of the major studios entered into a consent decree with the Department of Justice, known as the Paramount Consent Decrees, which required the major studios that owned theaters at the time to either divest distribution operations or their theaters. Conflicts between Hollywood studio business practices and the federal government go back to the early 1920s, over concerns about vertical integration and the monopolization of film production and distribution. In the 1930s and 1940s, most first-run movie theaters had only one screen. Distribution and exhibition have undergone vast changes since the days of the Paramount Consent Decrees, including the proliferation of multiplex theaters that show films from different exhibitors throughout the day and the advent of television, home video and streaming. The separation mandate officially went away in 2020 when the Paramount Consent Decrees were terminated. Now Netflix, for instance, owns several theaters in New York and Los Angeles, and the Walt Disney Co., which was not part of the original “big eight” in the 1940s, owns and operates the El Capitan in Los Angeles. Movie theater chains have also stepped outside their lane recently, with artists like Taylor Swift and Beyoncé partnering directly with AMC Theaters to distribute their concert films.
How to Read the Fed’s Projections Like a Pro 2024-06-12 16:57:07.016000+00:00 - Federal Reserve officials are scheduled to release both an interest-rate decision and a fresh set of economic projections on Wednesday, and Wall Street has been eagerly awaiting those revised estimates for clues on when interest rate cuts may begin. Officials are expected to leave rates unchanged in a range of 5.25 to 5.5 percent, where they have been since July 2023. That is the highest rate setting in more than two decades. Central bankers came into the year expecting to cut rates several times by the end of 2024, but that outlook has shifted somewhat after inflation proved surprisingly stubborn at the start of the year. The question now is when officials may begin to cut rates — and how much borrowing costs will actually move down. Investors will carefully parse the Fed’s fresh forecasts for hints. Here’s how to read the numbers. The dot plot, decoded When the central bank releases its Summary of Economic Projections each quarter, Fed watchers focus obsessively on one part in particular: the so-called dot plot.
Amtrak Pays Executives Hefty Bonuses as Losses Continue 2024-06-12 16:42:20+00:00 - Fourteen Amtrak executives received more than $200,000 in incentive bonuses last year despite the service’s poor recent financial performance and struggles with its capital improvement projects, according to documents obtained by The New York Times. In 2023, Amtrak paid out more than $5 million in short- and long-term incentive bonuses to its executives even as the passenger rail service posted $1.7 billion in losses, according to records obtained from Senator Ted Cruz’s office. Particularly problematic for Amtrak has been its effort to upgrade its service on the Acela, a popular high-speed express route between Boston and Washington, D.C. “From delays for the new Acelas to annual shortfalls in the billions of dollars, Amtrak’s performance has been seriously deficient,” Mr. Cruz said. “It’s inexplicable that a dozen-plus Amtrak executives collected six-figure bonuses on the taxpayer’s dime.” Amtrak says the executive bonuses are necessary to attract and retain talent and rail expertise. Its incentive bonus program for 2021 came under intense scrutiny after The Times reported the company had paid about $2.3 million in bonuses when the rail service reported its lowest revenue and biggest losses in more than a decade. On Wednesday, the House Transportation and Infrastructure Committee held a hearing to discuss two bills to increase transparency and accountability around the Amtrak bonus payouts.
North Dakota voters want to ban lawmakers from serving in Congress past age 81 2024-06-12 16:31:20+00:00 - Voters in North Dakota overwhelmingly approved a ballot measure setting an age limit for politicians running for U.S. Congress, amid a broader national debate over aging politicians, including the two oldest major-party presidential nominees in history. The measure, which amends the state constitution, bars anyone from running or being appointed to a congressional seat if they turn 81 in the year prior to the end of their term. Among currently serving politicians, those 81 or older include President Joe Biden, Senate Minority Leader Mitch McConnell, Vermont Sen. Bernie Sanders, Iowa Sen. Chuck Grassley, former Speaker Nancy Pelosi and Rep. Jim Clyburn, among others. Jared Hendrix, a Republican candidate for the state House who championed the ballot measure, told The New York Times ahead of Tuesday's vote, “Most people think it’s common sense that politicians should retire at some point.” As it stands, the amendment would not affect any of North Dakota’s federal lawmakers, the oldest of whom is 67. The measure is expected to run up against a 1995 Supreme Court ruling that states cannot impose restrictions such as term limits on their representatives in the federal government beyond what the U.S. Constitution lays out. But the measure passed amid considerable voter concern about the two leading presidential candidates’ ages and cognitive abilities. Biden is 81, and if re-elected, he would be 86 by the end of his second term. Presumptive GOP nominee Donald Trump turns 78 on Friday, and if re-elected, would be 82 years old when he leaves office. The U.S. Constitution sets the minimum age threshold for senators at 30, House representatives at 25, and presidents at 35. But there are no maximum age restrictions and no term limits for Congress, and many senators and representatives have served in Congress for decades. Incidents involving older members of Congress have fueled debate about age limits, though it remains a deeply divisive and often taboo subject in politics and media coverage. Last year, several episodes involving Sen. Dianne Feinstein, then 90 years old, and McConnell, then 81, fueled fierce speculation about their health and their ability to do their jobs. Feinstein died in September as the oldest sitting senator. McConnell is due to step down as Senate leader in November, though he has said he will serve out his term until 2027, by which time he will be just shy of his 85th birthday.