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House votes overwhelmingly to save Speaker Johnson from Rep. Marjorie Taylor Greene effort 2024-05-08 21:23:00+00:00 - WASHINGTON — Speaker Mike Johnson, R-La., and his allies beat back a dramatic effort by far-right Rep. Marjorie Taylor Greene to oust him from power on Wednesday, ending — for now — months of threats against his speakership. The lopsided vote to "table" or kill Greene's motion to vacate the speaker's chair was 359-43. Just 10 Republicans voted with Greene, seven Democrats voted present. There were 196 Republicans and 163 Democrats who voted to kill Greene's motion; along with the 11 Republicans, 32 Democrats voted to move forward with her motion to oust Johnson. The vote came after weeks of threats from Greene to force the issue and after dragging her feet as it became clear she didn't have enough support to remove the speaker. Unlike last year's successful vote to remove former Speaker Kevin McCarthy, R-Calif., many Democrats had made clear they would vote to rescue Johnson, particularly after he green-lit votes on bipartisan measures to fund the government and approve Ukraine aid. "Speaker Johnson's tenure is defined by one self-serving characteristic: when given a choice between advancing Republican priorities or allied with the Democrats to preserve his own personal power, Johnson regularly chooses to ally himself with Democrats," Greene said on the floor prior to the vote During the last vote series of the week, Greene stood on the floor and announced she was filing a privileged motion to vacate the speaker's chair, which forced a vote on Johnson's future. She was promptly booed by colleagues as she formally announced the effort. "This is the 'uniparty' for the American people watching," she said in response to the boos, pointing with both hands at Republicans and Democrats. Johnson allies moved immediately to "table" or "kill Greene's vacate motion. His GOP allies were in a strong position to beat back Greene's efforts given that Democratic leaders said on April 30 that their rank-and-file members would help dismiss Greene's motion to vacate the speaker's chair. That saves Johnson’s job at least temporarily, though the fact that Democrats cast votes to keep him in power is sure to infuriate conservative activists and outside groups. And nothing would prevent Greene or any other conservative foe from forcing another vote on Johnson’s fate down the road. While passionate about toppling Johnson, her campaign never really gained momentum among her colleagues. Conservative Reps. Thomas Massie, R-Ky., and Paul Gosar, R-Ariz., co-sponsored her vacate resolution. And under normal circumstances, those three GOP votes would have been enough to depose Johnson given the GOP’s razor-thin majority and if all Democrats voted to remove him. But members of both parties are still smarting from the paralysis that took over the House for three weeks last fall after Johnson’s predecessor, McCarthy, became the first speaker to be ousted from his job in the middle of the congressional term. Greene, a staunch McCarthy ally, vehemently opposed ousting McCarthy and ultimately voted no. In her resolution, and on the House floor, Greene quoted House Minority Leader Hakeem Jeffries, D-N.Y., saying in a recent CBS “60 Minutes” interview: “Even though we’re in the minority, we effectively have been governing as if we were in the majority because we continue to provide a majority of the votes necessary to get things done. Those are just the facts.” Although he signed on to Greene’s motion to vacate, Massie repeatedly said he didn’t want to force a vote to oust him and cause similar chaos, instead pressing Johnson to resign voluntarily. Lawmakers, including many conservatives, have said they don’t want a repeat of the fall speaker fight. The idea of Democrats stepping in to save Johnson began bubbling up over the past several months. Moderate Democrats publicly and privately said they would vote to save the speaker, especially after Johnson helped stave off a government shutdown, pushed through the renewal of a critical FISA spy tool and passed billions of dollars in foreign aid for Ukraine after months of delays.
1 in 24 New York City residents is a millionaire, more than any other city 2024-05-08 21:11:00+00:00 - Good Question: What does it mean to be a millionaire? Good Question: What does it mean to be a millionaire? 03:00 New York has more millionaires than any other city in the world, beating out California's Bay Area, London and other wealthy cities, according to a new report. Nearly 350,00, or one in every 24 residents of The Big Apple are millionaires, according to a new ranking from Henley and Partners. New York City is also home to 744 centi-millionaires, worth at least $100 million; and 60 billionaires. The combined total wealth of the city's residents is greater than $3 trillion. New York tops the list of richest cities despite some of its wealthiest residents fleeing for Miami, now dubbed Wall Street South, as finance firms set up shop in the Sunshine State. Billionaire hedge fund Ken Griffin recently moved Citadel's headquarters from Chicago to Miami. Miami was ranked 33rd on the list, with 35,300 millionaires, up 78% from 2013. After New York City, California's Bay Area has the second highest share of millionaires — 305,700. Tokyo, Japan, took the third spot, followed by Singapore. London, Paris, Dubai London's share of millionaires dropped 10% from 2013, according to the report, landing it in fifth place. Seventh-ranked Paris is the wealthiest city in mainland Europe. Dubai is far and away the wealthiest city in the Middle East, having grown its population of millionaires by 78% over the past 10 years. Henley and Partners, a firm that provides residence and citizenship services, defined millionaires as individuals with liquid investable wealth of at least $1 million. Some countries have had their wealth boosted by so-called golden visa programs that let wealthy foreigners obtain citizenship and/or residence. Seven of the wealthiest cities in the world are in countries that host these types of programs. "You can secure the right to live, work, study and invest in leading international wealth hubs such as New York, Singapore, Sydney, Vienna and Dubai via investment," said Dominic Volek, head of private clients at Henley & Partners. "Being able to relocate yourself, your family, or your business to a more favorable city or have the option to choose between multiple different cities across the world is an increasingly important aspect of international wealth and legacy planning for private clients." The programs benefit cities and countries, which can use them "to attract the world's wealthiest and most talented to their shores," said Volek. For locals, however, the influx of foreign money can lead to their being priced out of a housing market, and even displace them from the very cities in which they were born.
Beyond Meat revenue falls in Q1 on weak demand for plant-based meat in US and abroad 2024-05-08 21:07:09+00:00 - Beyond Meat reported higher-than-expected revenue in the first quarter despite lower demand for its plant-based meats in the U.S. and abroad. The El Segundo, California-based company said its revenue fell 18% to $75.6 million in the January-March period. That was slightly higher than the $75.2 million Wall Street expected, according to analysts polled by FactSet. It was the eighth straight quarter the company reported year-over-year revenue declines. Beyond Meat said U.S. retail demand was soft despite discounts on its products. The company said sales also fell compared to last year because it discontinued its Beyond Meat Jerky. U.S. retail and food service sales were both down 16%. International retail sales fell 12%, reflecting lower demand for plant-based chicken, Beyond Meat said. International food service sales fell 29% as demand appeared to cool for products like McDonald’s plant-based McNuggets, which went on sale in Europe during the first quarter of 2023. Beyond Meat’s net loss narrowed to $54.4 million from $59 million in the same quarter a year ago. Adjusted for one-time items, the company lost 72 cents per share. That was higher than the 67-cent loss analysts were expecting, according to FactSet.
Airbnb beats earnings expectations for first quarter but offers weaker-than-expected guidance 2024-05-08 21:03:00+00:00 - In this photo illustration, the Airbnb logo is displayed on a computer monitor and cell phone on February 13, 2024 in Los Angeles, California. Airbnb reported first-quarter results on Wednesday that beat analysts' estimates but offered weaker-than-expected guidance. Shares fell more than 6% in extended trading. Here's how the company did, compared with consensus expectations from LSEG: Earnings per share: 41 cents vs. 24 cents expected 41 cents vs. 24 cents expected Revenue: $2.14 billion vs. $2.06 billion expected Revenue increased 18% from $1.82 billion a year earlier. Airbnb reported a net income of $264 million, or 41 cents per share, compared to $117 million, or 18 cents per share, in the same period last year. The company said revenue in its second quarter will come in between $2.68 billion and $2.74 billion. Analysts were expecting $2.74 billion for the period, according to LSEG. In its letter to shareholders, Airbnb said it is already experiencing "robust demand for travel" ahead of the peak summer season, particularly around upcoming events like the Olympics in Paris. The company also said it expects that year-over-year revenue growth for its third quarter will accelerate compared to the second quarter, in part because of its summer travel backlog. Other special events like the solar eclipse in North America helped drive engagement with Airbnb's platform during the first quarter. The company said it had 500,000 guests stay on Airbnb during the eclipse, according to its investor letter. Airbnb said adjusted EBITDA for the first quarter was $424 million, up 62% year over year. Analysts polled by StreetAccount were expecting $326 million. Gross booking value, which Airbnb uses to track host earnings, service fees, cleaning fees and taxes, was $22.9 billion in the first quarter. The company reported 132.6 million nights and experiences booked, up 9.5% from a year ago, and higher than the 132.1 million expected by analysts, according to StreetAccount. Growth in Airbnb's nights and experiences booked was led by the Asia Pacific and Latin America regions, Airbnb said. The company is "particularly encouraged" by growth of its app downloads and usage, according to its shareholder letter. Airbnb app downloads in the U.S. increased 60% year over year. Average daily rates increased 3% from a year ago to $173 in the first quarter, the company said. It ended the quarter with its "highest number of active listings yet," according to the letter, which jumped 15% from a year earlier. Correction: Airbnb's quarterly net income was $264 million. An earlier version misstated the figure.
Robinhood climbs after reporting record earnings for first quarter 2024-05-08 21:02:00+00:00 - Shares of Robinhood rose in extended trading Wednesday afternoon after the retail brokerage announced stronger-than-expected first-quarter results. Robinhood reported net income of $157 million, or 18 cents per share, for the first quarter. That is a positive swing from the same period last year, when the company had a net loss of $511 million, or 57 cents per share. Here is how Robinhood's results compared to Wall Street estimates, according to analysts surveyed by LSEG: Earnings per share: 18 cents vs. 6 cents expected 18 cents vs. 6 cents expected Revenue: $618 million vs. $549 million expected The company said the earnings per share and revenue numbers were both records for the firm. The stock jumped more than 5% in after-hours trading. Robinhood surged in popularity during the Covid-19 pandemic in 2020 and 2021, but has since seen user activity and revenue that mirrors action in the broader market. Stocks and cryptocurrencies rose during the first quarter, which likely helped the company's results. Cryptocurrency transactions accounted for $126 million in revenue in the quarter, the company said. Regulatory uncertainty has clouded the future of that business. Robinhood disclosed on Monday that the U.S. Securities and Exchange Commission had issued a Wells Notice to the company, signaling potential legal enforcement action over the company's cryptocurrency business. Dan Gallagher, Robinhood's chief legal, compliance and corporate affairs officer, said in a blog post that the company was "disappointed" in the SEC's decision and still believes that the crypto assets on its platform are not legally securities. Robinhood said its number of funded customers rose by 810,000 year over year to 23.9 million. Assets under custody rose 65% year over year to $129.6 billion, according to the press release. Shares of Robinhood were up nearly 40% year to date before Wednesday's earnings announcement. Read the full earnings release here. Correction: A previous version of the story misstated the date of Robinhood's quarterly report.
A US ally is forging ties with China's air force but probably won't get its J-20 stealth fighter 2024-05-08 21:00:01+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. 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 United Arab Emirates is expanding air force ties with China in what may be a scheme to brighten their dim prospects of acquiring F-35 Lightning II stealth jets from the United States. However, this developing cooperation will not likely result in Abu Dhabi ordering alternative fifth-generation fighters from Beijing. Major General Saleh Mohammed bin Mejren Al Ameri, commander of the UAE's Joint Operations, met with the commander of China's People's Liberation Army Air Force on April 23 to promote closer air force cooperation. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The meeting occurred as the UAE's prospects for acquiring F-35s "may be getting slimmer," according to one analysis. Another even speculated Abu Dhabi may eventually seek China's premier stealth fighter: the fifth-generation J-20 Mighty Dragon. The US approved a $19 billion deal to sell 50 F-35s and 18 MQ-4B drones to the UAE in January 2021. However, the deal hasn't materialized amid Washington's growing concern about China's central role in Emirati 5G infrastructure and suspicions that Beijing is establishing a military base there. On the other hand, Abu Dhabi has grown frustrated with American preconditions about the extent of its technical cooperation with China. Advertisement The UAE ordered 80 Dassault Rafales from France in December 2021. It has also bought 12 L-15 trainer jets from Beijing and participated in a joint air force training exercise in China for the first time in 2023. Such moves did little to assuage Washington's concerns about expanding defense ties between China and its Arab Gulf allies. Nevertheless, Abu Dhabi's budding ties don't suggest it is replacing its Western military hardware with Chinese alternatives. "The main factor to consider here is that, unlike US policymakers, the UAE doesn't see arms purchases from China as a zero-sum deal," Ahmed Aboudouh, associate fellow at Chatham House and head of the China Studies Unit at the Emirates Policy Center, told Business Insider. "Abu Dhabi's first choice would certainly be to acquire the F-35 sale over any Chinese equivalent." Aboudouh noted that approaching China to discuss procuring advanced arms is driven by Washington's hesitance to provide Abu Dhabi with alternatives, which the UAE views as "crucial" based on "national security considerations and high regional volatility." Advertisement The UAE has ordered 80 Rafale multirole fighters from France's Dassault Aviation. Fred Tanneau/Getty Images Furthermore, Abu Dhabi wants its "balancing strategy" between Washington and Beijing to pay off. Sebastien Roblin, a widely published military-aviation journalist, also sees Abu Dhabi's balancing act in play. "The nature of the relationship with the Gulf states and the US is that they nurture secondary ties with China and Russia to create additional pressure on Washington to sell to them, as one might flirt with a third party to attract the jealous attention from a partner," Roblin told BI. Related stories Both analysts see little significance in the L-15 acquisition and joint exercises. Advertisement "I still see the bilateral relations between the air forces as very superficial and symbolic," Aboudouh said. "Strategic depth in military partnerships takes time to build. I don't see this relationship developing into something similar to what the UAE Air Force has with France or even Russia anytime soon." Roblin pointed out that while the L-15s are "respectable advanced trainers sold at a bargain unit price," they lack the benefit of "common systems" with the F-16 and Rafale jets, which Emirati fighter pilots will eventually graduate to fly. Furthermore, the Emirati air force fighter fleet is already large for such a small country, making it unlikely the L-15s will serve any combat role. "So the sale, like the common exercises, serves as a warning signal to the US that the UAE may take its money elsewhere," Roblin said. "Of course, there's a risk of that backfiring and convincing Washington it can't be trusted with more advanced US hardware like the F-35 if ties with China grow too cozy." Aboudouh believes it's "hard to predict" if the UAE might eventually acquire fifth-generation Chinese aircraft. Advertisement "The main factor at play here is the US vision for its military relations with the UAE," Aboudouh said. "In other words, at a time of extensive debate on a US-Saudi defense pact potentially signed soon, the UAE would be interested in a similar deal. Will the US, in turn, deem signing this deal with Abu Dhabi a strategic necessity to curb Abu Dhabi's expanding military cooperation with Beijing?" Roblin also believes the "much-touted" Saudi defense pact could prove pivotal. If the deal is realized and leads to a Saudi F-35 sale, that could "indicate potential" for the UAE finally getting the fifth-generation American aircraft, too, provided it "locks out certain exchanges" with Beijing — such as Chinese radars and aircraft that could expose the F-35's stealth. There is also the salient fact that China hasn't exported any stealth fighters and Beijing will not likely offer the J-20 for export. It will likely sell the export version of its lighter J-35, the FC-31, which Pakistan is reportedly interested in procuring, but those haven't entered operational service yet. "The UAE also had a stake in Russia's Su-75 'export stealth fighter' pitched prior to 2022, but it doesn't seem appealing between risks of Western sanctions and Russian mass-production issues related to the war in Ukraine," Roblin said. Advertisement He suggested South Korea's KF-21 or Turkey's TF Kaan fighter projects could offer "less geopolitically fraught options" to the UAE. The Emirates is already reportedly interested in investing in the KF-21. The UAE would probably not be interested in procuring advanced fourth-generation Chinese fighters either, especially given the enormous Rafale order it just signed. Roblin also questioned why the UAE would buy jets like the J-10 and J-16 from China when it already has access to equivalent or superior Western jets like the F-15EX, F-16V, and, of course, the Rafale. "Introducing such Chinese aircraft dependent on different weapons and communication ecosystems would be logistically senseless unless there was a broader project to convert to a Chinese fleet," Robin said. Advertisement "But I'm skeptical the UAE would go all-in in that direction."
We asked a parasite expert about RFK Jr.'s claim that a worm ate his brain. Here's what they said. 2024-05-08 20:49:07+00:00 - Did a worm eat Robert F. Kennedy Jr.'s brain? The third-party presidential candidate said in a 2012 deposition that a doctor suggested a parasite hurt him. We spoke to an expert, who said a brain-eating tapeworm larvae would be impossible. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement Brain-eating worms? Not likely. A shocking report in The New York Times on Wednesday revealed that independent presidential candidate Robert F. Kennedy Jr. suggested in a 2012 deposition that doctors had found a dead worm in his brain. In the court proceeding — part of his divorce from his second wife — Kennedy said that he had short-term and long-term memory loss, according to The Times. Kennedy said he had visited doctors in 2010 who thought he had a brain tumor, but another doctor suggested that a dark spot on Kennedy's brain scan was "caused by a worm that got into my brain and ate a portion of it and then died," The Times reported. Advertisement Kennedy argued in the deposition that he couldn't make as much money due to his health, and also revealed that he had mercury poisoning around the same time. Kennedy has portrayed himself as the younger, more healthy alternative to the other two men running for president, Joe Biden and Donald Trump. His campaign's press secretary confirmed that Kennedy was infected with a parasite 10 years ago and said it was resolved. His campaign told Business Insider that Kennedy is in "robust physical and mental health" and said questioning his fitness is a "hilarious suggestion, given his competition." Related stories But could a parasitic worm even cause that kind of damage? One medical expert told Business Insider that Kennedy's version of events doesn't quite add up. Advertisement Dr. Janina Caira, a University of Connecticut professor and tapeworm specialist, told BI that Kennedy's parasite sounds more like the larvae of a pork tapeworm. That would be rare, Caira said in an email. Humans can be infected with the adult worm by eating undercooked pork, but can only be infected with the larvae after eating food or drinking water contaminated by the feces of someone with an adult tapeworm infection. "This typically happens in areas with poor sanitation," Caira said. "So, it is possible that he could have contracted the infection in South Asia if he came into contact with food or water contaminated with eggs of the tapeworm." But there's no way the larvae could have consumed Kennedy's brain tissue. Advertisement "Absolutely not," Caira wrote. She said the larvae don't have mouths or digestive systems. Instead, they absorb nutrients through the surface of their bodies. While Caira said it is possible that a worm could do some "mechanical damage" to nearby brain tissue, the larvae are very small, and a single one "would not cause much damage." That lines up with what experts, who were skeptical of the details, told The New York Times. However, Dr. Peter Hotez, a pediatrician and global health advocate who is a professor of pediatrics and molecular virology & microbiology at Baylor College of Medicine, wrote on X that "neuroparasitic diseases" and "parasitic worms have a huge impact on the human brain." Advertisement Hotez said the diseases are seen in poor populations, with a "surprising amount of illness" in southern states and Texas. He said his team at the National School of Tropical Medicine is working on low-cost vaccines to prevent the conditions.
Shohei Ohtani’s former translator to plead guilty to transferring $17M from MLB star’s bank account 2024-05-08 20:41:00+00:00 - The former translator for Los Angeles Dodgers superstar Shohei Ohtani has agreed to plead guilty to illegally transferring $17 million out of the baseball phenom's account without his knowledge, authorities said Wednesday. Ippei Mizuhara, 39, will plead guilty to single counts of bank fraud and subscribing to a false tax return, according to federal prosecutors in Southern California. “The extent of this defendant’s deception and theft is massive,” U.S. Attorney Martin Estrada said. “He took advantage of his position of trust to take advantage of Mr. Ohtani and fuel a dangerous gambling habit." Mizuhara was an employee of Ohtani's former team, the Los Angeles Angels, but the player "paid him separately for the additional work of driving him to meetings and interpreting for non-baseball-related activities," according to prosecutors. Mizuhara in September 2021 began making bets with an illegal bookmaker, authorities said, losing wagers and running up a massive bill. "Unable to pay his gambling debts, Mizuhara orchestrated a scheme to deceive and cheat the bank to fraudulently obtain money from" Ohtani's account, according to a statement by prosecutors. Mizuhara used Ohtani’s password to get to the player's bank account, without the player's knowledge or permission, prosecutors said. "Specifically, Mizuhara changed the registered email address and telephone number on the account so bank employees would call him — not Ohtani — when attempting to verify wire transfers from the account," according to federal authorities. The interpreter even "impersonated Ohtani" and used the player's "personal identifying information to deceive the bank’s employees" to make wire transfers, authorities said. He allegedly called the bank 24 hours to pretend being Ohtani, officials said. An attorney for Mizuhara said they had no further comment. A representative for Ohtani had no immediate comment Wednesday. Mizuhara is scheduled to be arraigned Tuesday. There were a variety of frauds, according to the prosecutor’s office. In one case in June, Mizuhara transferred $500,000 from Ohtani’s account to an associate of the bookmaker, the U.S. Attorney’s Office for Central District of California said in a statement. In September Mizuhara needed $60,000 worth of dental work and Ohtani agreed to pay for that with a check — but when it came time to pay the dentist, Mizuhara used Ohtani’s debit card account and kept the money from the check for himself, the office said. Mizuhara also stole $325,000 from Ohtani’s account to buy baseball cards over three months this year, and his plan was to resell them for a profit, it said. The Dodgers were playing their season-opening games against the San Diego Padres in Seoul when reports first emerged about Ohtani's potential ties to an illegal gambling operation. The player insisted he never bet on sports and federal prosecutors have consistently called the two-way superstar a "victim" who didn't know about his interpreter's actions. Ohtani left the Angels and signed a highly unusual blockbuster deal with the Dodgers this winter. He's committed to the Dodgers for 10 seasons and is set to receive $700 million, in a radically back-loaded, team-friendly agreement. Ohtani agreed to be paid a relatively low $2 million per season for 10 years before receiving $68 million for each of the following 10 years. Ohtani is a generational talent as the first player since legendary Babe Ruth, more than a century ago, to hit and pitch at a high level.
How Counterfeit Rolexes Actually Work, According to an Investigator 2024-05-08 20:30:59+00:00 - Rob Holmes is a private investigator. He works with major luxury-watch brands to track down fakes and stop them from getting to market. Holmes speaks with Business Insider about how counterfeits are made in factories overseas. He gives details about how fake luxury goods are trafficked into the United States and distributed to consumers, tells us how the counterfeit industry has evolved with the rise of a new generation of "superfakes," and gives advice about how to spot a counterfeit. He also examines a genuine Rolex and gives tips on how to spot a genuine watch. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Applebee's owner plots turnaround to lure back fast-food customers and home cooks 2024-05-08 20:29:00+00:00 - Applebee’s and IHOP owner Dine Brands thinks its deals can lure away fast-food customers who have grown frustrated with menu prices. As consumers pull back their restaurant spending, Applebee’s and IHOP are fighting against a larger group of rivals than usual for a smaller pool of customers. Dine Brands CEO John Peyton said full-service restaurants, fast-food chains and even eating at home are all competing for diners’ dollars. To rise above the competition, Applebee’s has been leaning into value with a slate of promotions that includes the return of Dollaritas, which makes Peyton confident that it can beat out the fast-food chains vying for its customers. “The Whole Lotta Burger for $9.99 — if you can have our burger for $10, which is great quality, abundant and eat in our restaurant, in our experience, why would you eat a $10 burger out of a paper bag in your car?” he told CNBC. Low-income consumers visited less frequently and spent more carefully when they did eat out in the first quarter, according to Peyton. Consumers with incomes under $50,000 account for about 40% to 50% of Dine’s customers, he said. Dine Brands reported first-quarter earnings that fell short of Wall Street’s estimates, and both Applebee’s and IHOP’s same-store sales shrank more than expected. Still, Dine reiterated its full-year outlook and said sales have improved sequentially. Shares of the company closed roughly flat. But it’s too soon to tell if Dine will succeed in winning over diners — and investors. The company will need to improve its same-store sales growth significantly to meet the full-year outlook it reiterated this year, Raymond James analyst Brian Vaccaro wrote in a research note on Wednesday. Applebee’s isn’t the only casual dining chain aiming at McDonald’s and the rest of the fast-food category. Chili’s, which is owned by Brinker International, recently rolled out an ad campaign that calls out the Big Mac and other fast-food burgers for their prices. And McDonald’s is certainly feeling the heat. CEO Chris Kempczinski told analysts on the company’s latest earnings call that “everybody’s out there with a value message,” which is why the chain is looking to create a nationwide value menu. Besides leaning into deals, Applebee’s might also get an edge on the competition from a triad of recent pop-culture moments: a pivotal cameo in the tennis drama film “Challengers,” an Applebee’s-motivated meltdown on “Survivor” and a shoutout from football legend Peyton Manning during Netflix’s roast of his former rival Tom Brady. Not since Beyonce name-dropped Red Lobster on her hit song “Formation” has a casual-dining chain felt so relevant in pop culture. “It’s top of mind for so many people, and it’s because they’ve grown up with Applebee’s,” Peyton said.
G.M. Will Retire the Chevrolet Malibu to Make More Electric Cars 2024-05-08 20:09:30+00:00 - General Motors said on Wednesday that it would stop making the Chevrolet Malibu, the last affordable sedan in its U.S. model lineup and a venerable nameplate that was introduced in the 1960s when the company was a dominant force in the U.S. economy. For years, American drivers have been gravitating toward sport utility vehicles and away from sedans, compacts and hatchbacks. G.M.’s two Detroit rivals, Stellantis and Ford Motor, have also largely wiped their slates clean of cars in the United States. Foreign automakers such as Toyota, Honda and Hyundai still sell hundreds of thousands of sedans and compacts each year, but far fewer than in previous decades when the Toyota Camry and Honda Accord ranked among the most popular vehicles on American roads. Last month, Subaru, a Japanese automaker, said it would stop making its Legacy sedan next year. G.M. produces the Malibu at a plant in Fairfax, Kan., and will continue to manufacture the car until later this year, when it plans to retool the factory to make a new version of the Chevrolet Bolt, an electric car, and the Cadillac XT4, a luxury S.U.V.
An escalating cold war between US and China would be a blow to global growth, IMF official says 2024-05-08 19:54:17+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. 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 A more intense cold war between the US and China would have a potentially dire impact on the global economy, according to an official from the International Monetary Fund. Speaking at Stanford University on Tuesday, IMF deputy managing director Gita Gopinath said that while US-China tensions haven't yet devolved into a full-blown cold war, such an escalation would be a major headwind to global growth. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The IMF predicts that the global economy could incur economic costs equivalent to as much as 7% of the world's GDP in the worst-case scenario and take a 0.2% hit to growth in milder scenarios. Related stories According to the fund, lower-income countries could suffer four times the loss of economic output compared to other nations if commodity markets split into blocs aligned with either China or the US. Advertisement Conflict between the world's two largest economies has escalated to a new heights since the pandemic. With China's growing economic ambitions and recent aggressions against neighboring countries, the US has put up new guardrails in its dealing with China, including restricting trade in key areas both countries are racing to dominate, such as AI. IMF data shows that more than 3,000 trade restrictions were imposed globally in 2022 and 2023, more than triple the count from 2019, with Gopinath saying that trade within the China and US blocs has dropped compared to intra-group trade. The tensions have also dented flows of foreign capital to China, with the country suffering its first foreign investment deficit in November 2023 and seeing further declines in the first three months of 2024. The emergence of "connector" countries, which have acted as neutral go-betweens for the US and China, may be the reason the impact of tensions hasn't been greater. Advertisement "The emergence of these 'connector' countries—perhaps most notably Mexico and Vietnam—may have helped cushion the global economic impact of direct trade decoupling between the U.S. and China," Gopinath said. Zooming out, Gopinath highlighted that geopolitical instability in regions like the Middle East and turmoil stemming from the Russia-Ukraine war has sparked trade turbulence unseen since the Cold War. The IMF emphasized that trade fragmentation carries a higher price tag today, with the goods trade-to-GDP ratio now at 45% compared to 16% at the onset of the Cold War.
Candace Parker takes a new job with Adidas after retiring from a 16-year WNBA career 2024-05-08 19:51:24+00:00 - Candace Parker has a new job as president of women’s basketball at Adidas. The three-time WNBA champion announced her retirement as a player on April 28 after 16 seasons. On Wednesday, Adidas announced Parker will help create a platform “aimed at influencing and elevating the future of women’s sports.” She’ll also oversee the brand’s women’s basketball products. “Stepping into this new leadership role is a deeply personal next step in my journey with Adidas,” she said in a statement. “It’s not just about products; it’s about fostering a movement focused on innovation, representation, and access.” Parker will also play a role in building upon the brand’s roster of women players that includes Aliyah Boston and Nneka Ogwumike and Chiney Ogwumike. “We are confident that she is a perfect fit to evolve the Adidas women’s basketball business and catalyze a new era of growth and credibility for the brand,” Eric Wise, global general manager of Adidas Basketball, said in a statement. Parker, 38, had been dealing with a foot injury that kept her off the court last season and she decided to retire because she didn’t want to “cheat the game” or herself. Parker played her first 13 seasons in the league with the Los Angeles Sparks, establishing her dominance early as a No. 1 pick who won Rookie of the Year and league MVP in the same season. Parker was the only WNBA player to accomplish that feat, averaging 18.5 points, 9.5 rebounds and 3.4 assists. She earned her second MVP award in 2013 and won her first title in 2016 with the Sparks. She’d go on to win a second title with her hometown Chicago Sky in 2021 and a third with the Las Vegas Aces last season. ___ AP WNBA: https://apnews.com/hub/wnba-basketball
Applebee's owner Dine Brands wants to steal fast-food customers with its deals 2024-05-08 19:51:00+00:00 - Applebee's and IHOP owner Dine Brands thinks its deals can lure away fast-food customers who have grown frustrated with menu prices. As consumers pull back their restaurant spending, Applebee's and IHOP are fighting against a larger group of rivals than usual for a smaller pool of customers. Dine Brands CEO John Peyton said full-service restaurants, fast-food chains and even eating at home are all competing for diners' dollars. To rise above the competition, Applebee's has been leaning into value with a slate of promotions that includes the return of Dollaritas, which makes Peyton confident that it can beat out the fast-food chains vying for its customers. "The Whole Lotta Burger for $9.99 — if you can have our burger for $10, which is great quality, abundant and eat in our restaurant, in our experience, why would you eat a $10 burger out of a paper bag in your car?" he told CNBC. Low-income consumers visited less frequently and spent more carefully when they did eat out in the first quarter, according to Peyton. Consumers with incomes under $50,000 account for about 40% to 50% of Dine's customers, he said. Dine Brands reported first-quarter earnings that fell short of Wall Street's estimates, and both Applebee's and IHOP's same-store sales shrank more than expected. Still, Dine reiterated its full-year outlook and said sales have improved sequentially. Shares of the company closed roughly flat. But it's too soon to tell if Dine will succeed in winning over diners — and investors. The company will need to improve its same-store sales significantly to meet the full-year outlook it reiterated this quarter, Raymond James analyst Brian Vaccaro wrote in a research note on Wednesday. Dine is projecting same-store sales growth will range from flat to 2% this year; in the first quarter, they fell 4.6% at Applebee's and 1.7% at IHOP. Applebee's isn't the only casual dining chain aiming at McDonald's and the rest of the fast-food category. Chili's, which is owned by Brinker International , recently rolled out an ad campaign that calls out the Big Mac and other fast-food burgers for their prices. And McDonald's is certainly feeling the heat. CEO Chris Kempczinski told analysts on the company's latest earnings call that "everybody's out there with a value message," which is why the chain is looking to create a nationwide value menu. Besides leaning into deals, Applebee's might also get an edge on the competition from a triad of recent pop-culture moments: a pivotal cameo in the tennis drama film "Challengers," an Applebee's-motivated meltdown on "Survivor" and a shoutout from football legend Peyton Manning during Netflix's roast of his former rival Tom Brady. Not since Beyonce name-dropped Red Lobster on her hit song "Formation" has a casual-dining chain felt so relevant in pop culture. "It's top of mind for so many people, and it's because they've grown up with Applebee's," Peyton said.
Wall Street analyst jumps to Disney's defense — plus, why Broadcom is bucking the chip decline 2024-05-08 19:49:00+00:00 - Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Resilient Dow: The Dow Jones Industrial Average is on pace for its sixth positive session in a row Wednesday, adding nearly 150 points, or 0.4%. Meanwhile, the S & P 500 was basically flat, putting its four-day win streak in jeopardy. The tech-heavy Nasdaq Composite was slightly lower, as some of its largest companies — such as Club holding Alphabet and Tesla — were in the red. One factor influencing Wednesday's trading is a slight pick up in bond yields, which had trended lower in recent sessions. In general, it's a bit of a calmer week on Wall Street, with the pace of earnings reports slowing and no major economic reports to speak out this week, though we'll get the usual jobless claims data Thursday morning. Bucking the trend: Broadcom is among the top-performing Club holdings in Wednesday's otherwise muted session, adding more than 1% to roughly $1,320 per share. Broadcom is defying a broader move lower for the semiconductor stocks, with a closely watched exchange-traded fund for the industry down about 0.3%. Positive numbers from Arista Networks may be driving Broadcom's gains. "The strong results from Arista Networks is a good sign for Broadcom. Both Arista and Broadcom are on the Ethernet side of AI networking," Jim Cramer said. Starbucks stabilizing: Another Club name solidly higher Wednesday is Starbucks . The stock finally found some buyers Wednesday, exactly one week after the coffee chain's earnings disaster sent shares tumbling nearly 16%. There was a half-hearted attempt at buying last Thursday and the stock ended modestly higher. But Friday, Monday and Tuesday saw the stock go on a three-session losing streak. In afternoon trading, Wednesday, shares were up more than 1%. We're in a holding pattern on Starbucks, waiting to see if CEO Laxman Narasimhan's turnaround plans can work. Jim Cramer took Narasimhan to task in a CNBC interview last week, questioning whether the CEO's plan was enough to right the ship. Starbucks ex-CEO Howard Schultz said in a LinkedIn post Sunday that he too was disppointed after Starbucks's earnings and offered advice to management. Sell-off overdone : We touched on Barclays' note on Disney in the Morning Meeting. The analysts agreed with us that the post-earnings selling in Disney on guidance concerns was overdone. Shares were steady on Wednesday, one day after sinking 9.5%. Here's a passage from the Barclays note explaining its take and why we're thinking that if Disney stock were to drop below $100 we would buy more. Barclays analysts said: "The company's guidance however is impacted by a number of one-time items in Q3 this year, the biggest of which appears to be pre-opening costs for new cruise ships. Adjusted for one time items the company guided to mid- to- high single-digit growth in [operating income] next quarter. However, one of the nuances that may have been missed in the shuffle yesterday since the company was not explicit about it, is the fact that the guidance also adjusts for the accelerated depreciation impact last year. In other words, the [operating income] base for Q3 last year to calculate the mid-to-high single digit growth should be ~$100mm higher than the reported number. Based on this, the underlying EBITDA guidance adjusted for one time items isn't really that different from our estimates and probably higher than consensus estimates pre earning." There's a lot of unpack there. But the upshot from Barclays is that Wall Street is getting it all wrong. And the sellers didn't take the time to do their homework. Up next : After Wednesday's closing bell, the earnings report we'll be paying close attention to is Arm Holdings because it will provide a read into the AI semiconductor market. There's a lot of concerns in the market about the health of the consumer and travel spending, making AirBnB another report to watch as well. A few other notable companies reporting are Robinhood and Trade Desk. Before the bell Thursday, some of the key names to watch are Roblox, Warner Bros. Discovery, and Constellation Energy. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.)
Georgia lawmakers vowed to restrain tax breaks. But the governor’s veto saved a data-center break 2024-05-08 19:41:36+00:00 - ATLANTA (AP) — Georgia lawmakers vowed they were going to rein in tax breaks for businesses this year. Their efforts came to nothing. Gov. Brian Kemp on Tuesday vetoed a two-year pause in a sales tax exemption the state gives for building and equipping computer data centers, after an intensive lobbying effort to preserve the tax break. Kemp’s veto shows how hard it is to root out established tax breaks, said lawmakers and national experts. “Any time you create a carve-out in your tax code, you then create a self-interested lobby around it,” said Greg LeRoy, the executive director of Good Jobs First, a liberal-leaning group long skeptical of economic development incentives. The Republican governor wrote that he was vetoing House Bill 1192 because businesses had already made plans for data centers using the exemption and that the “abrupt” July 1 freeze would undermine “the investments made by high-technology data center operators, customers, and other stakeholders in reliance on the recent extension, and inhibiting important infrastructure and job development.” The dispute in Georgia mirrors fights in other states including Virginia, where the rising number of data centers is sparking a backlash, and in Arkansas, where lawmakers are moving to impose new restrictions on data centers that mine cryptocurrency. In Georgia, some people are pushing the city of Atlanta to ban data centers near transit stations and the Beltline walking trail, as well as to stop offering local property tax abatements atop the state sales tax break. Although local jurisdictions benefit from property taxes on investments that can run into the hundreds of millions of dollars, data centers typically support few jobs. Freezing the data-center tax exemption was the only bill that advanced following a a monthslong review of all the tax breaks that Georgia offers to various industries Lawmakers earlier gutted and then discarded an effort to cap the $1.35 billion Georgia spends on income tax credits subsidizing movie and television production. So many data centers are opening or expanding in the state that it is causing a notable drain on the power grid, leading Georgia Power Co. to say it quickly needs to build or contract for new electrical generation capacity. The International Energy Agency says electrical consumption from data centers worldwide could double by 2026, calling for a focus on efficiency. Georgia Power says new users will more than pay for the additional generating capacity that public service commissioners approved last month, putting downward pressure on bills for other users. But others are wary of those claims because of a climb in electrical bills in recent years. Environmental groups are among those seeking to curb the tax exemption because Georgia Power’s new plants would be fueled by natural gas, increasing fossil fuel emissions. Environmental groups also worry about how much water data centers use to cool their computers. “Giving data centers a tax break without investigating their impact on our environment and billpayers is shortsighted,” Jennette Gayer, director of Environment Georgia, said in a statement. The bill would have created a committee to study the impact of data centers on the electrical grid. A 2022 review of the sales tax exemption by the University of Georgia’s Carl Vinson Institute of Government projects the state will forgo $307 million more from 2024 through 2030 than it will collect from sales taxes on data center construction and operations. For example, the state is projected to forgo $44 million in revenue this year but only get $13 million back from other sales taxes. The failure also raises questions about Republican Lt. Gov. Burt Jones’ long-term goal of further cutting Georgia’s state income tax rate for all residents and businesses. He wants to shore up other tax revenue to offset those cuts. Senate Finance Committee Chairman Chuck Hufstetler, a Rome Republican who has spearheaded efforts to scrutinize tax breaks, said lawmakers could revisit the data center tax break next year. He said that he has in part focused on keeping new exemptions from becoming law. “It’s disappointing that we moved that slow, but it will be a continuing process as we look at these,” Hufstetler said. “I think it’s extra difficult to get them out.”
Nathan Wade reckons with his relationship with DA Fani Willis with blinders on 2024-05-08 19:39:01+00:00 - Former Georgia special prosecutor Nathan Wade said his romantic relationship with Fulton County District Attorney Fani Willis — which has thrown Donald Trump's election interference case into limbo — did not cause any damage to the case. In his first interview since he was forced to resign as special prosecutor, Wade told ABC News that his relationship with Willis had "nothing to do with the merits of that prosecution" and that it had not affected the case or the public's perception of it "at all." “I regret that that private matter became the focal point of this very important prosecution," he said. "This is a very important case. I hate that my personal life has begun to overshadow the true issues in the case.” The prosecutors' past relationship still threatens to upend the criminal case against Trump and 14 co-defendants (all of whom have pleaded not guilty; four others have taken plea deals). Attorneys for the defendants have sought to boot Willis from the case, alleging that the relationship constituted a conflict of interest, or at least gave the appearance of one. In acrimonious testimony in February, Willis said her relationship with Wade began in 2022, but that physical intimacy between them ended in 2023, before Trump and his co-defendants were criminally indicted. (The timeline of their relationship was contradicted by a former friend of Willis' who also testified.) Judge Scott McAfee ultimately ruled that Willis could stay on the case as long as Wade resigned, which he quickly did. Wade told ABC News that he was not speaking publicly on behalf of Willis' office. “As a matter of fact, I’m certain that they would rather me not be having this exchange with you," he said. "With that, I want to continually protect the integrity of this prosecution. I don’t want to say or do anything that would jeopardize this case.” It might be too late for that. On Wednesday, a Georgia appeals court agreed to consider Trump's request to disqualify Willis from the case. A trial date still has not been set, but the appeals court ruling, when it comes, could unravel the whole case. In his interview, Wade conceded that the relationship “did not happen in ideal timing,” but he and Willis had not planned to develop feelings for each other. He also appeared to brush off the potential impact of the relationship on the case. “Workplace romances are as American as apple pie,” he said. “It happens to everyone.”
South Carolina Senate turns wide-ranging energy bill into resolution supporting more power 2024-05-08 19:32:48+00:00 - COLUMBIA, S.C. (AP) — A bill that power companies call vital to keeping the lights on in South Carolina has been turned into a resolution that only expresses support for the idea by the Senate, which wasn’t ready to give more latitude to utilities that cost ratepayers billions. The Senate agreed on a 39-2 vote Wednesday to gut the House’s 80-plus page energy bill and replace it with a resolution acknowledging the state’s power needs are growing. They also promised to extensively discuss energy matters this fall and have their own legislation ready around the time the General Assembly returns in 2025. Upset that the Senate wasn’t taking up the proposal, the House started attaching it to entirely different bills like one requiring therapists to take suicide prevention training and another to allow firefighters who live outside the state to get cancer health care benefits if they work in South Carolina. Republican Sen. Tom Davis spent weeks trying to broker the impasse, but many senators, including their leadership, did not want to act quickly to relax rules and safeguards. Those rules were put in place after state-owned Santee Cooper and private South Carolina Electric & Gas cost ratepayers and shareholders billions of dollars when they collected the money to build a pair of nuclear reactors that were abandoned before construction was finished. In the end, the best Davis said the Senate could do was the resolution, which he said should be considered a nod to all the work the House did to handle what is an important issue. “We all have the same objectives. We want to increase capacity in a responsible way. I think it was just a frank acknowledgment the two chambers are at a different points in that process right now,” Davis said. The proposal now heads back to the House, which has until the regular session ends Thursday to decide if it will accept the Senate’s version, insist on its own or just let the matter die. All 170 members of the General Assembly are up for reelection in November. The bill was introduced in February and passed the House in about a month. Power companies said they need to revamp South Carolina’s rules on utilities to make it easier to build new plants and generate more energy after rolling blackouts were nearly needed on Christmas Eve 2022. The House bill’s short term goal is to make sure private Dominion Energy, which bought South Carolina Electric & Gas after the nuclear debacle, and Santee Cooper can build a natural-gas fired power plant in the Lowcountry. It allowed faster approval of gas pipelines needed for the project. The long term goals include items such as reducing the Public Service Commission which oversees utilities from seven members, having watchdogs consider the health of utilities as well as the needs for ratepayers as they make decisions and allowing utilities to release less information about some projects publicly before they are approved. Republican Senate Majority Leader Shane Massey has said most if not all of those goals are noble. But after working on all kinds of legislation after the construction was halted on the nuclear plants in 2017 he wants to take time and let the Senate hold hearings and study the issue. The House held its own hearings earlier this year. Massey is especially annoyed Dominion ratepayers are already on the hook to pay for the nuclear plants that never generated a watt of power and are being asked to pay for another power plant. Nearly half the House was elected after the nuclear debacle in which construction was halted on two new nuclear reactors before they were finished. Three-quarters of the senators were serving when the reactors went bust.
How Trump’s books and witness Sally Franklin could affect his hush money trial 2024-05-08 19:27:31+00:00 - Donald Trump has the right to testify in his New York criminal trial. But even if he chooses not to, jurors have already heard from him this week, in a sense. That’s by way of books authored by the former president, which came into evidence just before Stormy Daniels began to testify. Though the adult film star’s appearance dominated Tuesday (she’s due back on the stand Thursday), don’t overlook the importance of this book evidence in the long run. Before Daniels took the stand, the state called Sally Franklin, an executive at Penguin Random House. That let prosecutors show the jurors Trump’s books, which, in the defendant’s own words, paint him as an obsessive financial micromanager. The implication that the prosecution will likely draw in summation is that Trump would have had to know about the alleged scheme to cover up the hush money payoff to Daniels with falsified business records. He has pleaded not guilty and has denied having sex with Daniels. Though the adult film star’s appearance dominated Tuesday (she’s due back on the stand Thursday), don’t overlook the importance of this book evidence in the long run. Through Franklin, the state highlighted several potentially damning excerpts from Trump’s writings, like: “If you don’t know every aspect of what you’re doing, down to the paper clips, you’re setting yourself up for some unwelcome surprises.” Also: “When you are working with a decorator, make sure you ask to see all of the invoices.” And: “I always sign my checks, so I know where my money’s going. In the same spirit, I also always try to read my bills to make sure I’m not being overcharged.” There were many more quotes emphasized for the jury, but you get the picture. Jurors likely did, too. On cross-examination, Trump’s defense lawyer seemingly sought to highlight the role of the secondary author listed on the books, suggesting that these Trumpian-sounding words may not have been Trump’s but were actually ghost-written. It doesn’t look like an incredibly effective cross. But the fact that Trump’s defense felt the need to attack this evidence amounted to a concession of its power. Expect the state to remind the jury of these words in closing arguments, while imploring jurors to apply their common sense to the facts of this case. Subscribe to the Deadline: Legal Newsletter for weekly updates on the top legal stories, including news from the Supreme Court, the Donald Trump cases and more.
Steward Health Care says it is selling the 30+ hospitals it operates nationwide 2024-05-08 19:08:22+00:00 - Steward Health Care said it plans to sell off all its hospitals after announcing this week that it filed for bankruptcy protection. The Dallas-based company, which operates more than 30 hospitals nationwide, said it does not expect any interruptions in its hospitals’ day-to-day operations, which the company said will continue in the ordinary course throughout the Chapter 11 process. In court filings, the company said that beginning in late January, Steward initiated what it described as a “phased marketing process” for the sale of its hospital facilities. “Presently, the company is marketing all of its hospitals,” the company said a filing Tuesday. Steward filed for bankruptcy protection early Monday. In a news release, company officials said Steward took the step to let it continue to provide needed care to patients. “Steward’s hospitals, medical centers and physician’s offices are open and continuing to serve patients and the broader community and our commitment to our employees will not change,” the company said in a written statement. Steward’s eight hospitals in Massachusetts include St. Elizabeth’s Hospital and Carney Hospital, both in Boston. It filed for protection in the U.S. Bankruptcy Court for the Southern District of Texas. Massachusetts Attorney General Andrea Campbell said Wednesday that she is pushing for the creation of a Patient Care Ombudsman to advocate for patients and employees throughout the bankruptcy process. She also said she has the authority to review any proposed sale under her office’s antitrust powers. “The office has authority to review any proposed sale, and we would do so in order to best protect access to a competitive and affordable healthcare marketplace,” she said in a written statement. “If we find violations of the law, we will address them.” Steward’s troubles in Massachusetts have drawn the ire of political figures including U.S. Sens. Elizabeth Warren and Edward Markey, who have said the company’s previous private equity owners “sold (Steward) for parts” and “walked away with hundreds of millions of dollars.” Massachusetts Gov. Maura Healey said Monday that the state had been preparing for a possible bankruptcy filing. Despite the filing, she said, Steward hospitals will remain open and patients should keep their appointments. “This situation stems from and is rooted in greed, mismanagement and lack of transparency on the part of Steward leadership in Dallas, Texas,” Healey said Monday. “It’s a situation that should never have happened and we’ll be working together to take steps to make sure this never happens again.” Steward said it is finalizing the terms of “debtor-in-possession financing” from its landlord Medical Properties Trust for initial funding of $75 million and “up to an additional $225 million upon the satisfaction of certain conditions.” “Steward Health Care has done everything in its power to operate successfully in a highly challenging health care environment,” Dr. Ralph de la Torre, CEO of Steward said in a news release. He pointed in part to what he described as insufficient reimbursement by government payers as a result of decreasing rates at a time of skyrocketing costs. Torre said that by seeking bankruptcy protections, Steward will be better positioned to “responsibly transition ownership of its Massachusetts-based hospitals.” In March, the company announced it had struck a deal to sell its nationwide physician network to Optum, a subsidiary of UnitedHealth Group, as it works to stabilize its finances.