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Medline Recalls 1.5 Million Adult Bed Rails After 2 Deaths 2024-05-30 20:08:35.596000+00:00 - Medline Industries, a medical supply company, is recalling about 1.5 million portable adult bed rails in the United States and Canada after two reported deaths involving the product, federal safety regulators said. The U.S. Consumer Product Safety Commission said on Thursday that users of the Medline Bed Assist Bar can become entrapped within the bed rail or between the product and the side of a mattress. “This poses a serious entrapment hazard and risk of death by asphyxiation,” the agency said in a statement. “Consumers should immediately stop using the recalled bed rails and contact Medline for a refund.” The commission said that Medline received two reports of deaths associated with the Bed Assist Bars. The deaths took place in July 2019 and November 2023 and involved the entrapment of a 76-year-old woman at a senior nursing facility in Iowa and an 87-year-old woman at a residential care facility in South Carolina, according to the agency.
Boeing shows feds its plan to fix aircraft safety 4 months after midair blowout 2024-05-30 20:05:00+00:00 - Whistleblower from Boeing supplier says he was pressured to ignore defects during inspections Boeing told federal regulators Thursday how it plans to fix the safety and quality problems that have plagued its aircraft-manufacturing work in recent years. The Federal Aviation Administration required the company to produce a turnaround plan after one of its jetliners suffered a blowout of a fuselage panel during an Alaska Airlines flight in January. "Today, we reviewed Boeing's roadmap to set a new standard of safety and underscored that they must follow through on corrective actions and effectively transform their safety culture," FAA Administrator Mike Whitaker said after he met with senior company leaders. ""On the FAA's part, we will make sure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business," he added Nobody was hurt during the midair incident on relatively new Boeing 737 Max 9. Accident investigators determined that bolts that helped secure the panel to the frame of the plane were missing before the piece blew off. The mishap has further battered Boeing's reputation and led to multiple civil and criminal investigations. Accusations of safety shortcuts Whistleblowers have accused the company of taking shortcuts that endanger passengers, a claim that Boeing disputes. A panel convened by the FAA found shortcomings in the aircraft maker's safety culture. In late February, Whitaker gave Boeing 90 days to come up with a plan to improve quality and ease the agency's safety concerns. The FAA limited Boeing production of the 737 Max, its best-selling plane, after the close call involving the Alaska Airlines jetliner. Whitaker said the cap will remain in place until his agency is satisfied Boeing is making progress. Over the last three months, the FAA conducted 30- and 60-day check-ins with Boeing officials, according to a statement from the agency. The purpose of the check-ins was to ensure Boeing had a clear understanding of regulators' expectations and that it was fulfilling mid- and long-term actions they set forth by the FAA. These actions include: Strengthening its Safety Management System, including employee safety reporting Simplifying processes and procedures and clarifying work instructions Enhanced supplier oversight Enhanced employee training and communication Increased internal audits of production system Potential criminal charges Boeing's recent problems could expose it to criminal prosecution related to the deadly crashes of two Max jetliners in 2018 and 2019. The Justice Department said two weeks ago that Boeing violated terms of a 2021 settlement that allowed it to avoid prosecution for fraud. The charge was based on the company allegedly deceiving regulators about a flight-control system that was implicated in the crashes. Most of the recent problems have been related to the Max, however Boeing and key supplier Spirit AeroSystems have also struggled with manufacturing flaws on a larger plane, the 787 Dreamliner. Boeing has suffered setbacks on other programs including its Starliner space capsule, a military refueling tanker, and new Air Force One presidential jets. Boeing officials have vowed to regain the trust of regulators and the flying public. Boeing has fallen behind rival Airbus, and production setbacks have hurt the company's ability to generate cash. The company says it is reducing "traveled work" — assembly tasks that are done out of their proper chronological order — and keeping closer tabs on Spirit AeroSystems.
Bird Flu Has Infected a Third U.S. Farmworker 2024-05-30 19:45:16.208000+00:00 - A third farmworker in the United States has been found to be infected with bird flu, heightening concerns about an outbreak among dairy cattle first identified in March. The worker is the first in this outbreak to have respiratory symptoms, including a cough, sore throat and watery eyes, which generally increase the likelihood of transmission to other people, federal officials said on Thursday. The other two people had only severe eye infections, possibly because of exposure to contaminated milk. All three individuals had direct exposure to dairy cows, and so far none has spread the virus to other people, Dr. Nirav Shah, principal deputy director of the Centers for Disease Control and Prevention, said at a news briefing.
Chad Daybell found guilty of murder in deaths of two kids and first wife 2024-05-30 19:25:00+00:00 - An Idaho doomsday author who prosecutors say became obsessed with apocalyptic beliefs and labeled people as “zombies” and “dark spirits” was found guilty Thursday in the deaths of his first wife and his current wife’s two youngest children. The verdict concludes Chad Daybell’s nearly two-month trial in the deaths of his first wife, Tammy Daybell, and Joshua "JJ" Vallow, 7, and Tylee Ryan, 16. Daybell, wearing a blue-collared shirt and yellow tie, stood stoically as the jury found him guilty of all counts against him including insurance fraud. The children's remains were found in June 2020 on Daybell's property in Fremont County, Idaho. Police said they believed Daybell hid the remains between September 2019 and June 2020. Joshua Vallow and Tylee Ryan. Fremont County Sheriff's Office Tammy Daybell died in 2019, weeks before Chad Daybell and Lori Vallow married. Her death was initially considered to be natural causes, but her remains were later exhumed. Following an autopsy, her death was determined to be a homicide by asphyxiation. Daybell, along with Vallow, were indicted in 2021 on charges of first-degree murder, conspiracy to commit first-degree murder and grand theft by deception in the children's deaths. They were also charged with insurance fraud and conspiracy to commit first-degree murder in connection with Tammy's death. In addition, Chad Daybell was charged with first-degree murder in her death. Vallow was convicted in May and received multiple life sentences in prison without the possibility of parole. Following Thursday afternoon's verdict and an hour recess, Judge Steven W. Boyce instructed the jury that the capital sentencing phase will begin Friday morning. Before jurors can consider the death penalty, prosecutors must prove “at least one statutory aggravating circumstance beyond a reasonable doubt,” Boyce said. During this stage, jurors will consider the six guilty counts of first-degree murder and conspiracy to commit first-degree murder. New evidence might be introduced but the jurors can also weigh evidence already presented in court, Boyce said. Zombies, dark spirits and mysterious deaths The case began in 2019 after several concerned family members told Rexburg police that they had not seen or talked to Joshua and Tylee. Police formally started looking for the children that November. Authorities had accused Daybell and Vallow of failing to cooperate with the investigation into the children's disappearance and lying to police about their whereabouts. They had initially told officers that Joshua, who was adopted and had special needs, was in Arizona with a family friend, but police determined it was a lie. The couple abruptly left Rexburg and went to Hawaii. In February 2020, Vallow was taken into custody by police in Hawaii after she failed to produce the children to authorities in Idaho. As the investigation into the children’s whereabouts continued, police uncovered a trail of mysterious deaths connected to the couple. Vallow's fourth husband, Charles Vallow, was fatally shot in July 2019 by her brother, Alex Cox. Five months later, Cox died from a pulmonary embolism, a condition that causes one or more arteries to become blocked by a blood clot. (Lori Vallow and her brother had initially said that Charles Vallow was shot in self-defense. Lori Vallow was later charged in Arizona, where she and Charles lived, with conspiracy to commit murder in the first degree. Cox was never charged.) In October 2019, Daybell's first wife, Tammy Daybell, was found dead of what was believed to be natural causes at the time. Chad Daybell and Vallow married two weeks after Tammy’s funeral, NBC affiliate KSL of Salt Lake City reported. In December 2019, investigators exhumed Tammy's body and conducted an autopsy that ruled her death a homicide. In opening statements in Chad Daybell's murder trial, prosecutors said that Lori Vallow and Daybell, a self-published author of more than two dozen books about doomsday and near-death events, had become obsessed with apocalyptic beliefs and labeled people who stood in the way of their dreams as "zombies" and "dark spirits." "You’ll hear in the world Chad and Lori planned for themselves, they identified those who stood in the way of their dream as dark," Madison County Prosecutor Rob Wood said. "Their spouses, Lori’s own children and anyone who opposed them were labeled sometimes as dark spirits or even zombies," he added. Vallow’s niece, Melani Pawlowski, testified that the couple believed people could be possessed by evil spirits and that "zombies" would eventually be overcome by a dark spirit and die. Prosecuting Attorney Lindsey Blake reiterated Wood's remarks, insinuating in closing arguments Wednesday that Daybell was the mastermind behind the couple’s scheme and decided who was “dark.” “Chad has the answers, Chad has the knowledge, Chad has that special ability,” she said. Once he deemed a person dark, they had to be killed, she said. Children's remains found in pet cemetery and fire pit Rexburg Police Detective Ray Hermosillo testified at Daybell's trial about the moment officers found the children's remains. Court documents revealed that Joshua had been buried in a pet cemetery on the property and Tylee had been dismembered and burned in a fire pit. "There were taller shrubs. In the middle of the 6-by-6 section, it looked like there was just a little bit of grass," Hermosillo said about law enforcement discovering Joshua's remains under a tree. "The ERT team began excavating that site. They removed the top layer of soil. ... At that point, you could see what appeared to be three large white rocks," he told the jury. "As soon as they did that you could start to smell the odor, through my training experiences a decomposing body." The detective said officials found a "small body wrapped in black plastic with duct tape around it." Hermosillo told the court that Daybell tried to flee "as soon as that was discovered." Dr. Garth Warren with the Ada County Coroner’s Office testified that "Tylee was received in multiple" body bags. One body bag had smaller bags inside that contained "multiple collections of soft tissue, bone and debris including dirt and rock," he said. The second body bag contained pieces of a "melted green bucket" and a "collection of human remains" and organs including the heart and lungs, he told jurors. "This isn't what heart and lungs typically look like," he said as jurors were shown photos. "They're obviously charred, portions of them are burned away and significantly shrunken as well." In the third bag was a portion of a "blackened and charred" skull, Warren said, as well as a portion of a jaw with "partially charred" teeth. The remains were identified as Tylee's through dental X-rays, he said. Daybell's children come to his defense Daybell's son and daughter testified in his defense, telling the court that he "valued" their mother, Tammy Daybell, and was distraught over her death. "He was more distressed than I ever seen him in my entire life," his daughter, Emma Murray, told the court. "I was used to my parents being in control and in charge and seeing him so distressed and emotionally out of control was very scary to me. I didn't doubt his grief at all." Murray said her mother had some health issues and would bruise easily. Before her death, her mother had been working on becoming more physically fit, Murray said. At the trial, Murray was questioned about Joshua and Tylee. She told the court that when she asked her father where the children were, he told her that they were in a “safe place.” Garth Daybell said his mother would "collapse" after coming home from work, had a hard time moving heavy items and had "fainting spells." On the day of her death, he said he did not hear any sounds of a struggle or fight. CORRECTION (May 30, 2024, 4:30 p.m. ET): Due to an editing error, a previous version of this article misstated Tammy Daybell’s relationship to Chad Daybell. She was his first wife, not his ex-wife.
Department of Education vows 'full-scale review' of financial aid office after FAFSA debacle 2024-05-30 19:25:00+00:00 - The Department of Education said Thursday that it is taking steps to improve operations at its Federal Student Aid office after months of delays and errors with this year’s overhauled Free Application for Federal Student Aid. The form, known as FAFSA, had a botched rollout, disrupting decision timelines for current and prospective college students and schools across the country. In a letter to staff members Thursday, Secretary Miguel Cardona said the agency was conducting a “full-scale review of FSA’s current and historical organization, management, staffing, workflow structures, business processes, and operations” as well as vendor contracts. In addition, the department is shaking up the office’s leadership and bringing on a team of information technology experts to help with FAFSA next year, among other efforts. “For half a century, Federal Student Aid (FSA) has helped millions of Americans access higher education,” Cardona wrote. “Today, FSA maintains the same mission. But like any organization, its methods and scope of work have changed dramatically over time, and the environment where it now operates is continuously evolving.” The department has hired the Boston Consulting Group to recommend ways to improve the FSA office, an agency spokesperson told NBC News. It is also working to improve oversight and accountability, Cardona said in his letter, adding that “transformational changes” at the office will be “informed by input from students, educators, and experts in systems design.” The agency has tapped Denise Carter, the acting assistant secretary of the office of finance and operations, to lead FSA in the interim as it searches for a new executive after Richard Cordray announced his departure in late April. Cardona said the agency welcomes guidance from the Office of the Inspector General and lawmakers, many of whom have pressed the department in recent months over its flawed overhaul of FAFSA, which Congress ordered in 2022. Federal Student Aid has processed all of the 10.3 million FAFSA forms that have been submitted as of May 29, the department spokesperson said. After clearing its backlog in recent weeks, officials have smoothed out a process that pushed schools to delay financial aid offers, sometimes by months, and left students making tough decisions about their futures. FAFSA completions are down only 15.5% as of May 17, according to the National College Attainment Network, a significant improvement from an almost 40% drop in March. “As we implement these changes at FSA, we remain committed to ensuring its core functions continue,” Cardona said in his letter. “We are working tirelessly to help all students have access to the resources they need to attain higher education.”
No need for countries to issue new oil, gas or coal licences, study finds 2024-05-30 19:01:00+00:00 - The world has enough fossil fuel projects planned to meet global energy demand forecasts to 2050 and governments should stop issuing new oil, gas and coal licences, according to a large study aimed at political leaders. If governments deliver the changes promised in order to keep the world from breaching its climate targets no new fossil fuel projects will be needed, researchers at University College London and the International Institute for Sustainable Development (IISD) said on Thursday. The data offered what they said was “a rigorous scientific basis” for global governments to ban new fossil fuel projects and begin a managed decline of the fossil fuel industry, while encouraging investment in clean energy alternatives. By establishing a “clear and immediate demand” political leaders would be able to set a new norm around the future of fossil fuels, against which the industry could be held “immediately accountable”, the researchers said. Published in the journal Science, the paper analysed global energy demand forecasts for oil and gas, as well as coal- and gas-fired electricity, using a broad range of scenarios compiled for the UN Intergovernmental Panel on Climate Change that limited global heating to within 1.5C above pre-industrial levels. It found that in addition to not needing new fossil fuel extraction, no new coal- and gas-fired power generation was needed in a net zero future. The paper is expected to reignite criticism of the UK’s Conservative government, which has promised to offer hundreds of oil and gas exploration licenses to boost the North Sea industry, a policy that has emerged as a key dividing line with the opposition Labour party before the 4 July general election. Labour has vowed to put an end to new North Sea licences if it comes to power, and also plans to increase taxes on the profits made by existing oil and gas fields to help fund investments in green energy projects through a new government-owned company, Great British Energy. Dr Steve Pye, a co-author of the report from the UCL Energy Institute, said: “Importantly, our research establishes that there is a rigorous scientific basis for the proposed norm by showing that there is no need for new fossil fuel projects.” “The clarity that this norm brings should help focus policy on targeting the required ambitious scaling of renewable and clean energy investment, whilst managing the decline of fossil fuel infrastructure in an equitable and just way,” Pye said. The report expanded on work by the International Energy Agency (IEA) which has warned in recent years that no new fossil fuel projects were compatible with the global goal to build a net zero energy system. The IEA ruled out any new investment in long-lead time fossil fuel projects, but acknowledged that continued investment would be required in existing oil and gas assets and already approved projects. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning 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 Dr Fergus Green, from the department of political science at UCL, said: “Our research draws lessons from past shifts in global ethical norms, such as slavery and the testing of nuclear weapons. These cases show that norms resonate when they carry simple demands to which powerful actors can be held immediately accountable. “Complex, long-term goals like ‘net zero emissions by 2050’ lack these features, but ‘no new fossil fuel projects’ is a clear and immediate demand, against which all current governments, and the fossil fuel industry, can rightly be judged.” The outgoing head of the UK’s Committee on Climate Change, Chris Stark, said last month that the concept of net zero had become a political slogan used to start a “dangerous” culture war over the climate, and may be better dropped. “If it is only a slogan, if it is seen as a sort of holding pen for a whole host of cultural issues, then I’m intensely relaxed about dropping it,” Stark said. “We keep it as a scientific target, but we don’t need to use it as a badge that we keep on every programme.” Green said a political stance on supporting new fossil fuel projects should “serve as a litmus test” on whether a government was serious about tackling the climate crisis. “If they’re allowing new fossil fuel projects, then they’re not serious,” he added.
Europol and US seize website domains, luxury goods in $6bn cybercrime bust 2024-05-30 18:42:00+00:00 - US authorities announced on Thursday that they had dismantled the “world’s largest botnet ever”, allegedly responsible for nearly $6bn in Covid insurance fraud. The Department of Justice arrested a Chinese national, YunHe Wang, 35, and seized luxury watches, more than 20 properties and a Ferrari. The networks allegedly operated by Wang and others, dubbed “911 S5”, spread ransomware via infected emails from 2014 to 2022. Wang allegedly accrued a fortune of $99m by licensing his malware to other criminals. The network allegedly pulled in $5.9bn in fraudulent unemployment claims from Covid relief programs. “The conduct alleged here reads like it’s ripped from a screenplay,” said the US assistant secretary for export enforcement at the commerce department, Matthew Axelrod. Wang faces up to 65 years in prison if convicted on the charges he faces: conspiracy to commit computer fraud, substantive computer fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering. Police coordinated by the European Union’s justice and police agencies likewise called the operation the biggest ever international operation against the lucrative form of cybercrime. The European Union’s judicial cooperation agency, Eurojust, said on Thursday that police arrested four “high value” suspects, took down more than 100 servers and seized control of more than 2,000 internet domains. The huge takedown this week, codenamed Endgame, involved coordinated action in Germany, the Netherlands, France, Denmark, Ukraine, the United States and the United Kingdom, Eurojust said. Additionally, three suspects were arrested in Ukraine and one in Armenia. Searches were carried out in Ukraine, Portugal, the Netherlands and Armenia, the EU police agency Europol added. It is the latest international operation aimed at disrupting malware and ransomware operations. It followed a massive takedown in 2021 of a botnet called Emotet, Eurojust said. A botnet is a network of hijacked computers typically used for malicious activity. Europol pledged it would not be the last takedown. “Operation Endgame does not end today. New actions will be announced on the website Operation Endgame,” Europol said in a statement. Dutch police said that the financial damage inflicted by the network on governments, companies and individual users was estimated to run to hundreds of millions of euros. “Millions of people are also victims because their systems were infected, making them part of these botnets,” the Dutch statement said. Eurojust said that one of the main suspects earned cryptocurrency worth at least €69m ($74m) by renting out criminal infrastructure for spreading ransomware. “The suspect’s transactions are constantly being monitored and legal permission to seize these assets upon future actions has already been obtained,” Europol added. skip past newsletter promotion Sign up to Headlines US Free newsletter Get the most important US headlines and highlights emailed direct to you every morning 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 The operation targeted malware “droppers” called IcedID, Pikabot, Smokeloader, Bumblebee and Trickbot. A dropper is malicious software usually spread in emails containing infected links or in attachments such as shipping invoices or order forms. “This approach had a global impact on the dropper ecosystem,” Europol said. “The malware, whose infrastructure was taken down during the action days, facilitated attacks with ransomware and other malicious software.” Dutch police cautioned that the actions should alert cybercriminals that they can be caught. “This operation shows that you always leave tracks, nobody is unfindable, even online,” Stan Duijf of the Dutch national police said in a video statement. The deputy head of Germany’s federal criminal police office, Martina Link, described it as “the biggest international cyber police operation so far”. “Thanks to intensive international cooperation, it was possible to render six of the biggest malware families harmless,” she said in a statement. German authorities are seeking the arrest of seven people on suspicion of being members of a criminal organization whose aim was to spread the Trickbot malware. An eighth person is suspected of being one of the ringleaders of the group behind Smokeloader. Europol said it was adding the eight suspects being sought by Germany to its most-wanted list.
Boeing Gives F.A.A. Plan to Address Systemic Quality-Control Issues 2024-05-30 18:35:45+00:00 - Boeing’s top executives delivered a plan to improve quality and safety to the Federal Aviation Administration on Thursday, vowing to address systemic issues that have damaged the company’s reputation and put the aircraft manufacturer at the center of several federal investigations. Boeing detailed these and other steps during a three-hour meeting with the F.A.A.’s administrator, Mike Whitaker, where the company submitted a “comprehensive action plan” that the regulator ordered in February. Mr. Whitaker had given Boeing 90 days to develop a plan to make sweeping safety improvements after a midcabin panel known as a door plug blew out of a 737 Max 9 jet flying at about 16,000 feet on Jan. 5. No one was seriously injured during the flight. The F.A.A. said in a statement on Thursday that “senior” leaders from the agency would “meet with Boeing weekly to review their performance metrics, progress and any challenges they’re facing in implementing the changes.”
John Roberts declines to meet with Democrats over Samuel Alito flag 2024-05-30 18:15:00+00:00 - WASHINGTON — Chief Justice John Roberts declined Thursday to meet with Democratic senators to discuss Supreme Court ethics issues in the wake of reports that controversial flags were flown at Justice Samuel Alito's houses. In a letter to Senate Majority Whip Dick Durbin, D-Ill., and Sen. Sheldon Whitehouse, D-R.I., Roberts said he "must respectfully decline your request for a meeting," citing concerns about maintaining judicial independence. Roberts’ refusal was not a surprise, as last year he declined to attend a hearing about the ethics issue for similar reasons. He said in the latest letter that meeting with representatives of one party "who have expressed an interest in matters pending before the court" is another reason that "such a meeting would be inadvisable." Durbin, who chairs the Judiciary Committee, disagreed with Roberts' conclusions and will continue to push for legislation to set up a more rigorous ethics code for the court than the one the justices adopted last year, his office said in a statement Thursday. "Chair Durbin’s only interest — as it has been since he first raised this issue with the Chief Justice 12 years ago — is restoring the credibility of the Court in the eyes of the American people," the statement said. Whitehouse, a member of the Judiciary Committee, said in a series of posts on X that it was "frustrating" that Roberts failed to address that the meeting was sought in the chief justice's role as chair of the U.S. Judicial Conference, the administrative and policy-making body of the judiciary, not in his capacity as a member of the court. "All this means is that the work must continue until we have a Supreme Court that applies to itself basic tenets of rule of law: honest fact-finding and neutral decision-making," Whitehouse added. Last week, the two senators asked Roberts to address what they called “the Supreme Court’s ethics crisis” after The New York Times reported that flags flown at the Capitol by some supporters of Donald Trump on Jan. 6, 2021, were also displayed at Alito’s homes. In their letter they asked to meet with Roberts “as soon as possible” and renewed their “call for the Supreme Court to adopt an enforceable code of conduct for justices.” That was before Alito himself sent letters to Capitol Hill this week declining to step aside from cases involving Trump or Jan. 6. Alito said the high standard for recusal had not been met, saying that his wife flew the flags and that he had no involvement in the decisions. As first reported by the Times, an upside-down U.S. flag was spotted at the Alito home in Virginia, while a flag associated with conservative Christians was seen at the family vacation home in New Jersey. Alito said in his letters to lawmakers that “a reasonable person who is not motivated by political or ideological considerations or a desire to affect the outcome of Supreme Court cases” would conclude that no recusal was required. The court adopted a new ethics code in November, which has itself attracted criticism in large part because justices themselves get the final word on how to apply it.
WeWork eliminates $4bn in debt after judge approves bankruptcy plan 2024-05-30 17:47:00+00:00 - A US bankruptcy judge approved WeWork’s Chapter 11 bankruptcy plan, enabling the struggling shared office space provider to eliminate $4bn of debt and handing control over to a group of lenders and real estate tech firm Yardi Systems. Days after Adam Neumann, co-founder and ex-CEO, confirmed he had shelved a bid to buy the business, WeWork said it expected to emerge from bankruptcy next month. The company claimed it was now positioned for “sustainable, profitable growth”, raising the prospect of it breaking even after years of steep losses. WeWork used its bankruptcy to negotiate a significant reduction in future rent costs from its landlords, ultimately reaching deals to save $8bn in future rent costs. The company also canceled leases at about 160 of its 450 locations during bankruptcy. David Tolley, CEO, said: “In one of the largest and most complex restructurings, we have achieved extraordinary outcomes. Over the last year, we have also seen strong demand across the WeWork system and increased our member net promoter scores.” WeWork filed for Chapter 11 bankruptcy protection last November in order to renegotiate these agreements. At its peak, the company had been valued at $47bn as investors including the Japanese multinational SoftBank lined up to back it. As it prepared to go public in 2019, however, analysts gave it a far lower valuation. After it eventually went public, in 2021, its market valuation tumbled to less than $50m. Neumann, 45, stepped down from WeWork in 2019 after its initial failure to go public, and criticism of the firm’s internal culture on his watch. He landed on his feet, however, launching Flow – a real estate venture which raised $350m from the Silicon Valley venture capital firm Andreessen Horowitz in 2022. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning 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 As Neumann and Flow sought to buy WeWork, his former company said he failed to offer a high enough price to win over the company’s lenders, who preferred to take an equity stake as part of the bankruptcy deal. Reuters contributed reporting
Reveal party funding before elections, says European anti-corruption chief 2024-05-30 17:08:00+00:00 - Political parties across Europe, including the UK, should be forced to publish the names of their private funders before elections, not after, the president of the Council of Europe’s anti-corruption body has said. Unveiling the annual report of the Group of States Against Corruption (Greco), Marin Mrčela, who is the justice of the supreme court of Croatia, also called on the European Union to stop using “excuses” not to join the body. Joining would allow the body to monitor low- and high-level corruption in the European Commission and the European parliament, which is embroiled in several scandals, including allegations of Russian and Chinese interference. Parliamentary oversight bodies are struggling to get to grips with the scandals because most of the regulatory power lies with the member states, not the EU institution. The Belgian president, Alexander De Croo, has questioned whether the powers of the European Commission’s anti-fraud unit, Olaf, need to be broadened to include foreign interference via disinformation or payments to MEPs. Mrčela said that by joining Greco, the EU would “show that their opinions and actions about fighting corruption are serious” and enable it to receive expert help from evaluators and rapporteurs. The EU has observer status in Greco, but refuses to become a full member. “We see their arguments,” Mrčela said. “They are not reasons, but excuses not to join.” Asked if there should be centralised rules across the EU over transparency of party funding, he said: “We have this rule about transparency of party funding: everything should be published before the election.” Greco said it was “concerned that in some countries progress is still limited concerning the application of codes of conduct for MPs, the transparency of systems for declaring assets, and the regulation of lobbying”. A Guardian investigation into the financing of political parties across the EU has revealed how some of the oldest democracies in Europe are the least transparent in relation to fundraising, while newer members from eastern Europe have some of the highest standards of accountability. France, which overthrew its monarchy and became a republic in 1792, does not require parties to publish the names of any donors, on the grounds of privacy, while Latvia, considered the gold standard of transparency in the EU, requires parties to publish names 15 days after funds have been received. On the general issue of corruption, Mrčela said research showed that overall “judges and the prosecutors have a better understanding of the ethical issues in politics, particularly parliamentarians”. skip past newsletter promotion Sign up to Headlines Europe Free newsletter A digest of the morning's main headlines from the Europe edition emailed direct to you every week day 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 He said progress in anti-corruption in some countries was “very slow” and it would take years to implement Greco’s recommendations on changes to laws or constitutions. He singled out Finland for “very good practice”. “Without any law about financing of political parties, in 11 months they managed to implement all of the recommendations they received,” he said. Hungary, he said, had come out of the non-compliance category in relation to prevention of corruption of members of parliament, judges and prosecutors, but still had a long way to go. The annual report showed Ukraine, which has applied for EU membership, had completed just over 51% of the Greco anti-corruption recommendations and partly completed a further 32%, leaving just 17% of a total of 41 recommendations yet to be incorporated into law or practice. “That is something Ukraine should be commended for, because when you are in a war it is very hard to fight [corruption] because you are fighting for your life. We are commending Ukraine on that,” he said.
OpenAI Says Russia and China Used Its A.I. in Covert Campaigns 2024-05-30 17:00:15+00:00 - OpenAI said on Thursday that it had identified and disrupted five online campaigns that used its generative artificial intelligence technologies to deceptively manipulate public opinion around the world and influence geopolitics. The efforts were run by state actors and private companies in Russia, China, Iran and Israel, OpenAI said in a report about covert influence campaigns. The operations used OpenAI’s technology to generate social media posts, translate and edit articles, write headlines and debug computer programs, typically to win support for political campaigns or to swing public opinion in geopolitical conflicts. OpenAI’s report is the first time that a major A.I. company has revealed how its specific tools were used for such online deception, social media researchers said. The recent rise of generative A.I. has raised questions about how the technology might contribute to online disinformation, especially in a year when major elections are happening across the globe. Ben Nimmo, a principal investigator for OpenAI, said that after all the speculation on the use of generative A.I. in such campaigns, the company aimed to show the realities of how the technology was changing online deception.
Justice Alito pens ruling that will likely be a trainwreck for communities of color 2024-05-30 16:43:34+00:00 - The Supreme Court’s conservative supermajority made it much easier last week to attack the political power of the nation’s growing communities of color. The high court’s attacking voting rights isn’t new. But the latest blow, in a 6-3 opinion written by Justice Samuel Alito in a South Carolina case, is especially breathtaking and cynical because it creates a sweeping partisanship safe harbor for states that want to gerrymander communities of color out of power. Racially gerrymandered map? No, not us. We were just discriminating against Democrats who just happen to be Black (or Latino or Asian). Racially gerrymandered map? No, not us. We were just discriminating against Democrats who just happen to be Black. The decision in Alexander v. South Carolina Conference of NAACP sharply reverses course on Chief Justice John Roberts’ court’s 2017 resolution of a race-vs.-politics puzzle that had dogged the Supreme Court for nearly three decades. Under the court’s jurisprudence, the distinction mattered because while racial gerrymandering is unconstitutional, partisan gerrymandering isn’t. But trying to ascertain whether race or politics was behind lawmakers’ mapmaking decisions drove the justices bonkers. Retired Justice Stephen Breyer bemoaned last decade that the plethora of racial gerrymandering cases required the court to spend “the entire term reviewing 5,000-page records,” reviewing map drawers’ choices precinct by precinct. In 2017, the court had a breakthrough and resolved the conundrum by simply declaring in Cooper v. Harris that — whether it was race or politics — motive was irrelevant if evidence showed that map drawers had targeted voters of color. Writing for a majority that notably included conservative Justice Clarence Thomas, Justice Elena Kagan explained that “the sorting of voters on the grounds of their race remains suspect even if race functions as a proxy for other (including political) characteristics.” In short, partisan gerrymandering might be allowed, but you can’t use race as the crude tool to get there. Justice Alito’s opinion throws out the court’s 2017 consensus in favor of the position he took in dissent in Cooper, joined this time around by Justice Thomas, who had a change of heart. Before Alexander, voters of color in racial gerrymandering cases had to show merely that race had predominated in map drawers’ decision-making. After Alexander, if states defend maps on the grounds that “it was just politics,” which they will do now in every case, Justice Alito’s opinion imposes an additional head-spinning hurdle. Voters of color must now also show that it would have been possible to pull off a state’s partisan gerrymander by targeting white voters. This is likely to be a train wreck for communities of color. By sanctioning a partisan “get-out-of-jail” card for racial discrimination, Justice Alito’s Alexander decision is both delusional and contemptuous No place illustrates the challenge more than the South, where race and politics are intimately entangled. White Democrats, to the extent they exist in the region, are often inconveniently situated from the standpoint of a would-be gerrymanderer: They live in the same neighborhoods as white Republicans — sometimes in the same houses. By contrast, residential segregation and racially polarized voting mean that even if a map drawer’s motives are purely partisan, adjusting the Black (or nonwhite) percentage of a district is a singularly efficient way to shift the partisan balance of a district in predictable ways. By deliberately ignoring the role that race continues to play in American politics, and by sanctioning a partisan “get-out-of-jail” card for racial discrimination, Justice Alito’s Alexander decision is both delusional and contemptuous. In many ways, it is reminiscent of the Supreme Court’s dishonest Jim Crow-era opinions upholding literacy tests and poll taxes on the grounds that they were “race neutral.” But, then as now, pretending not to see racial discrimination won’t make it go away. For a court that professes to be so deeply concerned about the continuation of racialized politics, the South Carolina decision is likely only to help perpetuate it. Picture an alternative universe, one where it isn’t so easy to gerrymander voters of color. In that world, Republicans in places like coastal South Carolina would have no choice but to compete for Black votes. To be sure, the state’s Black voters currently overwhelmingly favor Democrats. But that is at least in part because Republicans have little reason to appeal to Black concerns and interests. In a world of gerrymandered districts, they don’t have to. Compare that to vigorous competition by both major parties for votes across racial lines in Orange County, California, where a citizen-led commission drew congressional maps under rules that emphasized keeping communities together. Unable to rely on gerrymandered districts to win, both parties aggressively recruited candidates of color, opened outreach centers and knocked on doors. This is what the future of a multiracial American democracy could look like. If the Roberts court is unable or unwilling to lead us there, then Congress must. In 2022, Congress came achingly close to passing the John R. Lewis Voting Rights Advancement Act and the Freedom to Vote Act, two transformative bills that would have renewed and strengthened voting rights laws, banned partisan gerrymandering and set a baseline for election practices in line with the needs of a diverse 21st-century America. Only the stubborn refusal of two Democratic senators to change filibuster rules stopped the bill from becoming law. Picture an alternative universe, one where it isn’t so easy to gerrymander voters of color. For the time being, with a deeply divided Congress, both bills remain stalled. But the opportunity to advance them will come again, perhaps as soon as the next Congress. And when it does, House Democratic leader Hakeem Jeffries and Senate Majority Leader Chuck Schumer have rightly said, passage of the two bills will be the top Day One priority of their caucuses. History offers a sober warning about where the court might be headed. In 2009, the Supreme Court signaled that it was likely to strike down the formula used to determine which states were subject to preclearance under the Voting Rights Act, saying the formula was outdated and didn’t take into account contemporary circumstances. But despite the warning, bipartisan support at the time to update the formula and much larger Democratic majorities than today in both houses, Congress failed to act. Four years later, the Supreme Court did exactly what it had foreshadowed. Next time around, Congress must be ready to act. The future of America’s emerging multiracial democracy depends on it.
Meet the Chinese army’s latest weapon: the gun-toting dog 2024-05-30 16:39:00+00:00 - The Chinese army has debuted its latest weapon: a gun-toting robotic dog. The mechanical canine, which has an automatic rifle on its back, was front and centre of recent joint military drills with Cambodia, according to footage from the state broadcaster CCTV. The dog was backed up by a similarly-armed quadcopter in the drills, which saw the machines paired with human soldiers in dry runs for urban assaults. “It can serve as a new member in our urban combat operations, replacing our human members to conduct reconnaissance and identify enemy and strike the target,” Chen Wei, a Chinese soldier, said in the video. While they may be technologically advanced, the killer robots are hardly sleek pieces of military hardware; both dog and drone appear to be off-the-shelf pieces of consumer technology with a conventional rifle bolted on top. The brand name of the Chinese company that built the dog, Unitree Robotics, is clearly visible on the side. Prices for the company’s Go2 robot dog start at $1,600 (£1,300), according to Unitree’s website. The company denied selling products to the Chinese military and it is unclear how the army procured it. View image in fullscreen A Chinese soldier tests a robot dog before it is equipped with a machine gun. Cambodia and China on Thursday kicked off their annual Golden Dragon military exercise. Photograph: Heng Sinith/AP The robot dog archetype was developed and made famous by Boston Dynamics, at one point a Google subsidiary. It has long had connections with the US military; the initial version of its “robotic quadruped”, BigDog, was developed as a potential mechanical pack animal for the army. But the company, which was sold by Google to Softbank in 2017 and then on to Hyundai in 2020, has always steered clear of actively weaponising its technology. According to Boston Dynamics’ founder, Marc Raibert, who spoke at the AI Seoul Summit last week, there are “around 1,500” of the company’s “Spot” dogs around the world. “But recently there’s just been a springing out of other robot companies building quite incredible robots,” he said. “It’s very exciting to go from the research lab into commercialisation.” That “springing out” also means that Boston Dynamics’ refusal to weaponise its technology is no longer preventing militaries and law enforcement from obtaining their own armed robots. In 2021, Ghost Robotics demonstrated a Vision 60 robot dog armed with a custom gun built by Sword International, and by 2023 the US Army confirmed that it was actively exploring how to use such a system in the field. In 2022, China demonstrated another weapon-wearing robot being carried and deposited in a training centre by a drone. skip past newsletter promotion Sign up to TechScape Free weekly newsletter Alex Hern's weekly dive in to how technology is shaping our lives 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 But while the systems are robotic, they are not yet typically autonomous. The CCTV video shows the Go2 dog being controlled by a soldier with a handheld device. The concern for many observers is what happens if and when that human link is diminished, with AI systems that are able to act quicker and with lower latency than a human operator could.
Pure Storage Stock Spikes and Analysts are Jumping on Board 2024-05-30 16:07:00+00:00 - Key Points Pure Storage stock is moving higher after the company delivered a solid earnings report that included raised guidance for the rest of the year. The company's flash memory-based server storage solutions with advanced management software are becoming a complement or alternative to traditional data centers. Analysts are bidding PSTG stock higher, and there could be as much as 28% upside for the stock. 5 stocks we like better than Pure Storage Pure Storage Inc. NYSE: PSTG delivered a stellar first-quarter earnings report after the market closed on May 29, 2024. Not surprisingly, PSTG stock was up more than 2% the day after the report, and analysts are quickly expressing a bullish sentiment that may drive the stock even higher. Pure Storage Today PSTG Pure Storage $63.25 +0.25 (+0.40%) 52-Week Range $27.98 ▼ $68.75 P/E Ratio 372.08 Price Target $53.32 Add to Watchlist In the quarter, revenue of $693.48 million exceeded estimates for $680.91 by 1.85% and was 18% higher year-over-year (YOY). However, it was the earnings that really got investors excited. The 32 cents per share was 52% higher than the 21 cents per share that was expected. The company's annual recurring revenue continues to grow at an impressive YOY clip, 25% to be exact. Get Pure Storage alerts: Sign Up The company's forward guidance was also bullish, with estimates for 10.5% revenue growth and operating margin growth of 17% on a non-GAAP basis. Where Does All That Data Go? Pure Storage Has an Answer Even if you're new to technology, it's easy to grasp that training AI models requires data. And not just a small amount—these models need vast quantities of data, often on a massive scale. So, a logical question is, where does all that data go? Pure Storage helps answer that question. The company offers flash memory-based server storage solutions with advanced management software that help companies access AI-driven insights. Flash storage is becoming known as the next-gen data center. The technology offers faster access times, improved energy efficiency, greater storage density, and improved reliability compared to traditional data centers. However, the company's solutions can also work in tandem with a company's existing data centers. Analysts Are Upgrading Their Price Targets for Pure Storage If the chip sector is the leading edge when it comes to investing in the future of AI, data storage won't be far behind. Analysts know it, and that's why they're getting behind PSTG stock in a big way. Wedbush reiterated its Outperform rating for the stock the day before earnings and raised its price target from $50 to $70. Since then, the Pure Storage analyst ratings on MarketBeat show that four analysts have increased their price targets for PSTG stock. That list includes Northland Securities, which downgraded the stock from Outperform to Sector Perform but still raised the target price. It's also significant to note that the lowest of these price targets is 19% higher than the current consensus price target. Getting Involved with PSTG Stock There are better options if you're looking for a pure-play among artificial intelligence stocks. But if you're looking for stocks critical to building out the AI infrastructure, there appears to be more upside in PSTG stock. Pure Storage is up more than 76% in 2024, with much of that gain occuring after the company's fourth-quarter earnings report in February. At that time, the stock gapped up about 35%. But this is when you must return to the analyst's updates. The highest of the price targets is $80. That would be an increase of 28%, suggesting that a move of approximately the same magnitude could happen again. Before you consider Pure Storage, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Pure Storage wasn't on the list. While Pure Storage currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Salesforce plummets as weak forecast sparks concerns of AI competition 2024-05-30 15:56:00+00:00 - Salesforce shares slumped about 18% on Thursday, after its lowest-ever quarterly revenue growth forecast raised fears that high interest rates and rival AI offerings were hampering demand at the cloud-based software firm. The company could lose more than $48bn in market value if losses hold, as it also reported quarterly revenue that was below expectations for the first time since 2006. “Weak bookings in Q1 further test investor patience as the GenAI [generative AI] innovation cycle has yet to inflect top-line results and now increasingly becomes a point of competitive concern,” Morgan Stanley analysts said. Salesforce’s AI-focused data cloud business contributed to 25% of the deals valued above $1m in the first quarter, unchanged from the prior quarter. It did not disclose more financial details about the business, which was nearing $400m in annual recurring revenue in its last fiscal year. Some brokerages warned that Salesforce’s forecast also meant software demand had slowed further in April. “It seems like the selling environment got worse from the end of March and more pronounced in April, which could explain why the off-cycle names, like Workday or Salesforce, suffered more than ServiceNow or Microsoft,” Barclays analysts said. Salesforce could turn to large deals to accelerate growth and the company would consider them if they were “accretive” and had “the right metrics”, its CEO, Marc Benioff, had said on Wednesday in a post-earnings call. Activist investors pressured Salesforce last year to prioritize profitability, after years of growing its business through big deals including the $27.7bn acquisition of Slack in 2021. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning 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 “I think investors wouldn’t react well to most large deals at this point. Given growth is slowing down, a big acquisition would be viewed as buying growth,” said the RBC analyst Rishi Jaluria.
3 Penny Stocks Trading Abnormal Volume Today 2024-05-30 15:45:00+00:00 - Key Points The overall market is just 1.5% from its all-time high, up over 4% this month, leading to increased speculation in small-cap penny stocks. Retail investors' interest in small-cap stocks has surged following the meme mania earlier this month despite the inherent risks of volatility, low volume, and weak fundamentals. Today, Smart for Life Inc., Momentus Inc., and Sharps Technology, Inc. saw impressive volume and price increases driven by various strategic announcements and positive developments. 5 stocks we like better than Smart for Life As the overall market trades just 1.5% away from its all-time high and up over 4% on the month, there has been a noticeable increase in risk appetite and speculation in small-cap penny stocks by retail investors. This surge in interest follows the meme mania experienced earlier in the month. However, trading or investing in small-cap stocks has increased risks due to heightened volatility, small floats, low average volumes, and typically weak fundamentals. Here are three penny stocks that have seen impressive abnormal volume and price surges today: Get Smart for Life alerts: Sign Up Smart for Life Inc. Smart for Life Today SMFL Smart for Life $5.97 +2.06 (+52.69%) 52-Week Range $2.27 ▼ $90.71 Add to Watchlist Smart for Life NASDAQ: SMFL acquires, develops, manufactures, operates, markets, and sells nutraceutical and related products in the United States and internationally. Today, the stock experienced a dramatic surge, trading 25 million shares compared to its average daily volume of just 800k. This increased trading activity propelled the stock price upwards by over 50%. The catalyst for this movement was the company's announcement of completing a comprehensive restructuring plan. The plan included several strategic changes such as recapitalization, selling non-performing assets, selling and leasing back its Doral manufacturing facility, selling 51% of Ceautamed Worldwide, and liquidating its senior debt facility with Diamond Creek Capital. Despite the positive news, Smart for Life is still down 50% year-to-date and has a history of closing weak after volume surges. The stock’s volatility is amplified by its micro float of under 500k shares, maintaining an overall downtrend on a higher timeframe. Momentus Inc. Momentus NASDAQ: MNTS and its subsidiaries operate as a commercial space company, providing in-space transportation services. The stock saw a significant increase in trading volume, with over 40 million shares traded today, far exceeding its average daily volume of 178k. This surge resulted in the stock price rising by over 11%. The driving force behind this increase was the announcement that Momentus secured a contract from the Defense Advanced Research Projects Agency (DARPA). This contract aims to support the design and in-space demonstration of technologies that will enable the construction of large-scale structures in space. However, it's important to note that the stock has been in a significant downtrend, down over 60% year-to-date and nearly 90% on the year. The stock's small float of just 16 million shares contributes to its price volatility, making it a high-risk investment. Sharps Technology, Inc. Sharps Technology Today STSS Sharps Technology $0.48 +0.02 (+5.38%) 52-Week Range $0.17 ▼ $1.05 Add to Watchlist Sharps Technology NASDAQ: STSS is a medical device company that researches, designs, develops, manufactures, distributes, and sells safety syringe products. The stock broke its major downtrend this week and experienced a notable surge in volume, trading over 90 million shares today, compared to its average volume of 17 million shares. This activity pushed the stock up by almost 20% today and over 100% on the week. The recent surge was driven by the company's announcement of a 5-year, $200 million syringe sales agreement and an amendment to an asset purchase agreement to begin producing pre-fillable specialty copolymer syringes in the U.S. Like the stocks mentioned above, even considering today's impressive surge, the stock remains well below its 52-week high, down almost 50% from that level. Investors should be cautious, as the company, like other small-cap stocks, might look to dilute shares to raise much-needed operational capital. This potential for share dilution is a significant risk to consider. The Bottom Line The broader market's momentum and impressive staying power, as well as the resurgence of risk appetite among retail investors, have led to significant interest in small-cap penny stocks. However, while many of these stocks have shown impressive volume and price surges, they come with substantial risks. It's crucial for investors to exercise caution and consider the potential for high volatility and the likelihood of share dilution when investing in these stocks. Being informed, conducting thorough due diligence, and being prepared is key to navigating penny stocks' unpredictable and uncertain world. Before you consider Smart for Life, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Smart for Life wasn't on the list. While Smart for Life currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Would Elon Musk have a formal role on Team Trump in a second term? 2024-05-30 15:26:09+00:00 - All things considered, Elon Musk already has a prominent role in American politics. The controversial billionaire owns a prominent social-media platform, on which he often uses his account to promote conspiracy theories and far-right myths. But what if the man MSNBC’s Chris Hayes once referred to as a “red-pilled billionaire going through a midlife crisis” were to make the transition from a conspiratorial political observer to an official political insider? The Wall Street Journal reported that Musk and Donald Trump have “discussed a possible advisory role” in the event that voters return the former president to the White House. The role hasn’t been fully hammered out and might not happen, people familiar with the talks said, but the two men discussed ways to give Musk formal input and influence over policies related to border security and the economy, both issues on which Musk has grown more vocal. The Journal’s report, which has not been independently verified by MSNBC or NBC News, added that Musk — who used to vote Democratic before shifting to the conspiratorial right — has also partnered with billionaire investor Nelson Peltz “on a plan they have developed to invest in a data-driven project to prevent voter fraud.” Trump, evidently, has been briefed on their plan to address the problem that doesn’t actually exist in any meaningful way in reality. (Incidentally, the day after Jan. 6, Peltz called the insurrectionist violence a “disgrace” and said he was “sorry” to have voted for Trump. He’s since changed his mind again.) “Peltz and Musk also told Trump of an influence campaign in elite circles that is already under way, in which Musk and his political allies host gatherings of powerful business leaders across the country to try to convince them not to support President Biden’s re-election campaign,” the Journal added. It’s worth noting for context that Musk already played a brief and inconsequential role on a White House advisory board in the early months of Trump’s term, but he resigned when the then-president withdrew from the Paris climate accord. Seven years later, the Republican apparently has something more meaningful in mind. “Trump has told Musk ... he wants to find a way to get him more involved if he wins in November,” the Journal reported. As for why all of this might be happening, one can only speculate. It seems likely that Trump, desperate for cash, sees value in cozying up to one of the world’s wealthiest people, who also appears to share a similar worldview and an affection for fringe ideas. Musk, meanwhile, has plenty of private-sector interests, and it stands to reason that partnering with a man he expects to be president next year would advance those goals. None of this has escaped the attention of the Biden campaign, which issued a written statement in response to the Journal’s reporting. “Despite what Donald Trump thinks, America is not for sale to billionaires, oil and gas executives, or even Elon Musk,” the statement read. Trump is selling out America to pay his legal bills and put himself in power, while all billionaires like Elon see is a sucker. ... Joe Biden has been standing up to people like Elon and fight for the middle class his entire career — and it’s why he’ll win in November.”
Europe Banned Russia’s RT Network. Its Content Is Still Spreading. 2024-05-30 14:51:33+00:00 - The website calling itself Man Stuff News caters to a certain sensibility, with categories like “Backyard Grilling,” “TV Shows for Guys” and “Beard Grooming.” A recent article headlined “Tips for Dads During Labor” offered this nugget of advice: “Just remember to spend some time together before deciding whether or not to give birth.” Get to its section devoted to world news, however, and the nature of the coverage changes drastically. There, a recent article belittled an international warrant to arrest Russia’s president, Vladimir V. Putin, for war crimes. It repeated, word for word, an article that had appeared a day before under a different byline on the website for RT, Russia’s global television network. RT, which the U.S. State Department describes as a key player in the Kremlin’s disinformation and propaganda apparatus, has been blocked in the European Union, Canada and other countries since Russia invaded Ukraine in 2022. Sites like Man Stuff News, however, have helped RT sidestep the restrictions and continue reaching European and American audiences, according to a new report. Replicas of RT articles have been laundered thousands of times through hundreds of sites, according to the report, written by researchers from the German Marshall Fund, the University of Amsterdam and the Institute for Strategic Dialogue, a research nonprofit. The sites include content aggregators like Infowars, run by the conspiracy theorist Alex Jones; mirrors of RT repurposed from abandoned “zombie” sites; faux local news outlets with names like San Francisco Telegraph; and domains focusing on spirituality, yoga, extraterrestrials and the apocalypse. Many of the articles were then further disseminated through social media.
Salesforce Falls 25% Into A Once in a Lifetime Opportunity 2024-05-30 14:45:00+00:00 - Key Points Salesforce stock plunged following tepid guidance, opening up a once-in-a-lifetime opportunity for investors. The company is still growing and widening its margin, setting it up for robust capital return. Analysts are trimming targets, not dumping the stock so that a rebound could begin soon. 5 stocks we like better than Salesforce Salesforce NYSE: CRM stock went on sale following the Q1 release, providing investors a once-in-a-lifetime opportunity. It is not every day that a high-quality, industry-leading, blue-chip stock on track to deliver robust capital returns provides a 25% discount, so it likely won’t last long. This is the kind of opportunity investors dream about because the move is due to a reset of expectations, not any fundamental problem with the business. Marketbeat.com tracked a dozen revisions within the first twenty-four hours of the release, and they were a primary factor in the decline in stock price. Many, but not all, lowered their price targets, with some as low as $250. However, the takeaway is that no analysts lowered their rating, the consensus is a Moderate Buy, and the consensus price target implies a 35% upside from the post-release price point. The price target is edging lower from the pre-release level but only marginally, putting a cap on the market but giving no reason for the steep decline. Get Salesforce alerts: Sign Up The takeaways from the analyst chatter are encouraging. The company’s soft guidance caused a reset of expectations, but the forecasts are still robust. The analysts see Salesforce.com as focusing on profitable growth in the near term rather than growth at all costs and being undervalued relative to its peers. Disciplined spending and its position within the industry should help sustain margin improvements, and AI is a tailwind. Regarding the value, the post-release plunge puts the stock at 20X this year’s earnings and lower compared to next, a deep value compared to other blue-chip tech with similar growth. Salesforce Has Solid Quarter: Guidance is Tepid Salesforce Today CRM Salesforce $218.01 -53.61 (-19.74%) 52-Week Range $193.68 ▼ $318.71 Dividend Yield 0.18% P/E Ratio 51.91 Price Target $310.94 Add to Watchlist Salesforce had a solid quarter, but results were mixed relative to the analyst expectations, the only negative in the report. The top-line $9.13 billion is up 10.7% compared to last year on strength in subscription and support but fell short of forecasts. The analysts expected another 20 basis points in revenue and stronger guidance. Subscription and Support, the company’s largest segment, grew by 12%, driven by expanding client base, higher pricing, and penetration. Margin is the brightest spot in this report. The company’s gross and operating margins widened significantly, with a quadruple-digit basis point gain in the generally accepted accounting principles (GAAP) operating margin and a 450 basis point gain in the adjusted margin. Adjusted operating margin widened to 32.1% and is expected to widen further over time. Adjusted earnings per share (EPS) is up 45%, aided by share repurchases, cash flow is up 39%, and free cash flow is up 43%. Free cash flow came in at $6.08 billion, leaving the capital return to free cash flow payout ratio at 42%. Guidance is good but left the analysts cold because growth is weaker than expected and slowing from higher paces. The company forecasted a 7% to 8% revenue gain compared to the 8.5% gain expected by analysts, and the full-year outlook is equally tepid. Salesforce reiterated the revenue growth forecast but reduced the outlook for earnings growth. The salient point is that free cash flow (FCF) growth was reiterated, leaving the outlook for capital return unchanged. Salesforce is a Budding Dividend Aristocrat Salesforce Dividend Payments Dividend Yield 0.18% Annual Dividend $0.40 Dividend Payout Ratio 9.52% Recent Dividend Payment Apr. 11 See Full Details Salesforce has only paid dividends briefly, but investors can expect long-term value-building. The payout is worth a low 0.75% (annualized) today but beyond safe at 6.5% of the free cash flow. Dividends can be expected to continue and to grow over time, aided by repurchases. The cash flow and balance sheet allow for beneficial repurchases, which reduced the count by an average of 0.3% in Q1, providing some leverage regarding the dividend payment. The Q2 dividend declaration is expected soon. Salesforce Falls to a Critical Support Level Salesforce stock hit a top earlier this year, corrected by 15%, and added another 20% following the release. The move, driven more by sentiment and the impact of slowing growth, puts the market near a critical support level at $225. That level is consistent with previous support and a significant market reversal and should provide solid support now. In this scenario, CRM could begin to rebound as soon as the opening bell, and there are already signs of buying at the new lows. If not, CRM could fall below $225 and move to $200 or lower. Before you consider Salesforce, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Salesforce wasn't on the list. While Salesforce currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here