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Are Americans losing their taste for Starbucks? "The whole concept got old," one customer said. 2024-05-07 22:44:00+00:00 - Americans are addicted to caffeine but not to Starbucks, it seems. When Chicago writer Natalia Nebel steps out for an espresso, for instance, Starbucks no longer comes to mind, even though she lives within walking distance to two of the coffee chain's more than 17,000 U.S. stores. "I used to go all the time and now I don't go anymore," said Nebel, 61, recalling her pre-COVID routine of setting up shop four days a week at a local Starbucks, finding it an enjoyable change of scenery and a comfortable spot to work. "I liked being around people in a different setting," Nebel told CBS MoneyWatch. But Starbucks' appeal for Nebel faded along with the pandemic. "Once I stopped going, I didn't really miss it," she said, noting that she prefers the ambiance of the independent cafes in her Lincoln Park neighborhood. "The whole concept got old. Starbucks started really feeling like corporate America in a way it hadn't before," she added. Delaware resident Troy Turner also sees benefits to brewing at home, saying it's relatively easy, quick and far less expensive to make "significantly better coffee than anything you'd get at Starbucks." The home barista community has gained traction online, with tutorials available on making coffee, noted Turner, 29, a leave and disability examiner who lives in Dover. "A few years ago, when I was first getting into coffee, I was on the fence about Starbucks versus Dunkin' doughnuts, but I quickly got out of attending both places," said Turner, a self-described coffee enthusiast. Rare drop in sales Nebel and Turner are not alone in forging a life without Starbucks, at least if the company's latest earnings report is any guide. The biggest coffee chain on the planet is losing ground with people around the globe, its first drop in quarterly revenue since 2020 recently showed. The slowdown in store traffic was particularly acute in the U.S., with same-store sales down 3% in the January through March period from a year ago. Budget-conscious consumers are shelling out less on quick-service offerings, and that includes Starbucks, according to CEO Laxman Narasimhan. "We continue to feel the impact of a more cautious consumer," he said on an earnings call last week. "Many customers have been more exacting about where and how they choose to spend their money, particularly with stimulus savings mostly spent," Narasimhan said. "We saw this materialize over the quarter as customers made the trade-offs, but being food away from home and food at home." The company's plan to turn things around includes updating its app and mobile payment offerings, speeding up service, and overhauling its menu to lure customers back, he said. "The consumer is starting to feel the bite of tighter finances, and Starbucks is one of those indulgent luxuries that people can easily cut out," said Neal Saunders, managing director, retail, at GlobalData. Schultz calls for "maniacal focus" The financial setback last quarter also prompted some unsolicited advice from former Starbucks CEO Howard Schultz, who led the company for decades as it expanded around the globe. "The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores," Schultz wrote on his LinkedIn account on Monday. Starbucks should revamp its mobile ordering and payment app to "once again make it the uplifting experience it was designed to be," suggested Schultz, who finished his third stint as CEO early last year but remains one of the company's biggest shareholders. According to Schultz, Starbucks will recover, but it's "clearly not business as usual." "We always appreciate Howard's perspective. The challenges and opportunities he highlights are the ones we are focused on. And like Howard, we are confident in Starbucks long-term success," a Starbucks spokesperson said in response to Schultz's remarks. The "customer experience flags in a world where seamless mobile/digital ordering and throughput are emphasized," Sean Dunlop, an analyst at MorningStar, said. "If baristas are constantly operating at 100% capacity, it's challenging to snap out of that and ensure that a customer's having a really unique experience — they simply don't have the bandwidth," Dunlop said. If one looks at the long history of Starbucks, the brand in its early days was very much an experiential occasion, with consumers "going in, ordering a beverage just the way they wanted it and having a nice interaction with the barista, a nice feel-good experience," said David Tarantino, an analyst at Robert W. Baird. "One of the downsides of mobile ordering is it becomes very transactional." Labor strike turns off some customers Both Nebel and Turner mentioned Starbucks' strife with employees as another reason they choose not to patronize the business, although most analysts downplayed the issue. From Nebel's perspective, a Starbucks cafe in Chicago's Old Town neighborhood that used to bustle with energy and people now has fewer patrons and a downbeat atmosphere. "I don't know that the employees seem that happy there, and maybe you pick up on it, too," she said. Starbucks and the union organizing its workers are currently in contract negotiations after a protracted battle that has the Supreme Court hearing its case challenging the authority of the National Labor Relations Board. "It's not implausible to surmise that the occasional consumer or a consumer with less affinity for Starbucks in general might shift a couple of visits, at the margin, away from the brand if they found labor practices particularly distasteful," said Dunlop at MorningStar. "The great irony there, of course, is that Starbucks offers one of the best employee value propositions (wages and benefits) in the restaurant industry, so they're being punished for labor practices that most folks partake in." Meanwhile, headlines about Starbucks employees not being allowed to wear Black Lives Matter attire tarnished the brand for Morgan Bissett-Tessier, a 31-year-old law school student and part-time school administrator in New York. The Brooklyn resident now avoids Starbucks despite the company reversing its dress code policy on BLM. Starbucks "was never a regular thing for me because it was expensive, so it was a treat," Bissett-Tessier said. "Now it doesn't feel worth it."
TikTok sues Biden administration to block new law that could lead to U.S. ban 2024-05-07 22:34:00+00:00 - TikTok sues U.S. government over law that could lead to ban of app Washington — TikTok, the widely popular social media app, and its parent company ByteDance filed a lawsuit against the Justice Department on Tuesday over a new law that requires the platform to cut ties with its China-based owner within a year or be effectively banned from the United States. The petition filed in federal court in Washington, D.C., alleges that the measure signed into law by President Biden last month is unconstitutional in part because it violates the First Amendment rights of its users in the U.S. by effectively shutting down their access to the popular forum. Filed with the U.S. Court of Appeals for the District of Columbia Circuit, the petition calls for the court to block Attorney General Merrick Garland from enforcing the measure. The suit names TikTok and Beijing-based ByteDance as plaintiffs and was filed against Garland. The foreign aid package passed by Congress last month included a provision that required ByteDance to sell its stake in TikTok within a year. If the company fails to meet that one-year deadline, TikTok would lose access to app stores and web-hosting providers, effectively cutting it off to the roughly 170 million users in the U.S. But TikTok said in its filing that while lawmakers portrayed the measure as a choice between divesture or a ban, "there is no question: the Act will force a shutdown of TikTok by January 19, 2025, silencing the 170 million Americans who use the platform to communicate in ways that cannot be replicated elsewhere." The company said that the divestiture required by the law within a 270-day timeline, subject to a 90-day extension by the president, is "simply not possible," and pointed to the Chinese government's opposition to selling the technology that has made TikTok so wildly popular in the U.S. — its recommendation engine. "For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide," TikTok wrote in its filing. TikTok came under scrutiny by Congress amid concerns about the app's ties to China. U.S. officials have warned that the video-sharing platform is a threat to national security, in part because they say the Chinese government can use it to spy on Americans or weaponize the app to manipulate content and influence the public. FBI Director Christopher Wray told the House Intelligence Committee in March that the Chinese government could use TikTok's software to gain access to Americans' phones. Lawmakers in both chambers of Congress and across partisan lines have also expressed alarm about the app after participating in classified briefings. Rep. John Moolenaar, a Michigan Republican who chairs the House Select Committee on the Chinese Communist Party, said in a statement that Congress and the executive branch concluded that TikTok "poses a grave risk to national security and the American people." "It is telling that TikTok would rather spend its time, money, and effort fighting in court than solving the problem by breaking up with the CCP," he said. TikTok's legal effort was not unexpected, as the company had pledged to challenge the law's constitutionality in court. The company has pointed to an initiative called "Project Texas," launched in 2022, to demonstrate its efforts to safeguard U.S. user data and the integrity of its platform from foreign government influence. TikTok also said it was involved in a draft agreement through negotiations with an obscure federal agency, the Committee on Foreign Investment in the United States, that included a "shut-down option" that would allow for the app to be suspended in the U.S. if it failed to meet certain obligations. The platform accused Congress in its petition of overlooking its investments "in favor of the politically expedient and punitive approach of targeting for disfavor one publisher and speaker (TikTok Inc.), one speech forum (TikTok), and that forum's ultimate owner (ByteDance Ltd.)" Concerns about TikTok from policymakers have escalated in recent years, and more than 30 states and the federal government have banned the app on state-issued devices. Former President Donald Trump signed an executive order in 2020 that would've prohibited transactions with ByteDance, citing the data collection that "threatens to allow the Chinese Communist Party access to Americans' personal and proprietary information." But his attempts to ban the app were blocked by federal judges. Montana became the first state to prohibit the app last year, but a federal judge blocked the measure in part because of First Amendment concerns. But even amid those fears, a number of political figures have their own accounts, including Mr. Biden's presidential campaign and members of Congress. TikTok pointed to the use of the app from supporters of the ban in its petition and said it "undermines the claim that the platform poses an actual threat to Americans." Caitlin Yilek and Kaia Hubbard contributed to this report.
FDIC workplace was toxic with harassment and bullying, report claims, citing 500 employee accounts 2024-05-07 22:30:00+00:00 - What does the overturning of Harvey Weinstein's conviction mean for his accusers? What does the overturning of Harvey Weinstein's conviction mean for his accusers? 01:52 The Federal Deposit Insurance Corp., a government agency that protects bank customers from losing their deposits, fostered a toxic workplace rife with harassment and bullying that mostly targeted women or people from underrepresented groups, according to a new report. The findings about the FDIC's workplace culture comes after the Wall Street Journal published a November investigation that alleged male employees at the agency engaged in harassment, such as sending lewd photos to female employees, yet still kept their jobs. The 234-page report, released Tuesday by law firm Cleary Gottlieb Steen & Hamilton, is based on accounts from more than 500 employees who reported misconduct they encountered at the agency. Their accounts describe a workplace that is "patriarchal, insular and risk-averse" and failed to effectively deal with harassment, with the findings noting that disciplinary actions were rare after workers lodged complaints. "[F]or far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination and other interpersonal misconduct," the report said. Employees harbored a fear of retaliation that dissuaded them from reporting misconduct, and the report noted that one worker said they were contacting the law firm by using a VPN and someone else's email because of their fear that senior executives would learn about their complaint. Among the misconduct outlined in the report: One female worker said she feared for her physical safety after a colleague stalked her and continued to text her, including sending texts with partially naked women engaging in sex acts, even after she made a complaint about him. A male supervisor in a field office routinely talked about his female employees' breasts and legs, as well as his sex life. A senior bank examiner send a text of his genitals out of the blue to a woman examiner while she was serving on detail in a field office. Workers who are part of underrepresented groups were told by colleagues that they were "only hired" because of they were members of those groups, and told they were "token" employees hired to meet a quota. FDIC Chair Martin Gruenberg: "Demeaning" FDIC Chair Martin Gruenberg was also taken to task in the report, citing employee reports that he sometimes lost his temper and treated workers in a "demeaning and inappropriate manner." Gruenberg, who has been on the board of the FDIC since 2005, was nominated to a second term as chair by President Joe Biden in 2022. "While we do not find Chairman Gruenberg's conduct to be a root cause of the sexual harassment and discrimination in the agency or the long-standing workplace culture issues identified in our review, we do recognize that, as a number of FDIC employees put it in talking about Chairman Gruenberg, culture 'starts at the top,'" the report said. The report sparked calls for Gruenberg to resign, with House Financial Services Committee chair Patrick McHenry, a Republican from North Carolina, saying on Tuesday that the findings detail "his inexcusable behavior and makes clear new leadership is needed at the FDIC." Asked for comment, the FDIC pointed to a statement posted to their website from Gruenberg, in which he called the report "a sobering look inside our workplace." "Hundreds of our colleagues reported painful experiences of mistreatment and feelings of fear, anger and sadness," he added. "I also want to apologize for any shortcomings on my part. As chairman, I am ultimately responsible for everything that happens at our agency, including our workplace culture." The report included recommendations for fixing the FDIC's culture, such as making sure that employees who experienced harassment and mistreatment are protected and appointing a new "Culture and Structure Transformation Monitor" to audit and report on structural changes at the agency.
From Trials to Triumph: A College President Reflects on Crucible Moments 2024-05-07 22:12:00+00:00 - Loading... Loading... Santa Barbara, California, May 07, 2024 (GLOBE NEWSWIRE) -- College presidents are highly visible and vulnerable, serving on the frontlines to respond to events both on and off campus, inspiring faculty, staff, students and other constituencies, and upholding the ideals of the academy. Some do it well, and some don't. The presidency of an institution of higher education has been deemed by some as the toughest job in our nation because they continually face stress-inducing events, which may become life-altering, transforming crucibles. President Gayle D. Beebe of Westmont College shares in his newest book the power of life's crucibles – those pivotal moments of trial and triumph – that have defined his personal and professional life and leadership. Beebe has responded to several crucibles forged by natural disaster: The Tea Fire, Thomas Fire and Montecito debris flow, challenges unforeseen in the idyllic seaside Santa Barbara setting in California. He explores and reflects on defining crucibles that confronted and challenged him in "The Crucibles That Shape Us: Navigating the Defining Challenges of Leadership." "Though every leader faces enormous challenges that require response, it's still difficult to anticipate the severity of unfolding events and the length of time it will take to resolve them," Beebe writes. "Each situation demands a vision that exceeds inconvenience and a commitment to strategies and tactics that help us persevere." In the book, Beebe identifies seven crucibles — powerful catalysts for transformation — that, when embraced, shape us on our profound journey. Each chapter of the book delves into a crucible that Beebe has personally faced and intimately understands. As a seasoned college president, Beebe brings a unique perspective to the table, blending academic expertise with heartfelt storytelling to create a book that's both intellectually stimulating and deeply inspiring. "Life is a perpetual gauntlet with challenge on one side and opportunity on the other," he says. "We often overlook so many experiences of our everyday life that offer us an opportunity to identify deeper understanding and a better response as we navigate the defining challenges [of life] and leadership. Crucibles have the power to shape us by refining our character, calling forth our best effort, and teaching us to rely on God. Rarely, if ever anticipated, crucibles test our capacity to adapt and change. We often see setbacks and disasters as events that keep us from our best life. They're really opportunities to grow in leadership." David Brooks, the New York Times best-selling author and an annual speaker at Westmont's Lead Where You Stand Conference, wrote the foreword. "In this book, you will encounter two kinds of wisdom, one prosaic and one sacred," Brooks says. "Gayle passes along a lot of great wisdom in these pages, but his seeing is always inspired by the One who sees all. You will see how often Gayle emphasizes the need to see things clearly. I hope as you read this book, you will grow in your capacity to open your eyes and see." This captivating book delves into the universal themes of resilience, growth, and purpose, inviting readers to reflect on their own crucible moments and discover the profound lessons they hold. Through authenticity in storytelling and personal insightful analysis, President Beebe share invaluable insights on navigating adversity, harnessing the power of transformation, and unlocking the potential for growth that is empowering and enlightening. Each of the seven crucibles' chapters closes with questions for reflection and discussion that will conjure deep thoughtfulness and spark meaningful conversations and observations on the journey to becoming our best selves. Whether you're a student embarking on your educational journey, an aspiring leader seeking guidance, or simply someone navigating life's challenges, "Crucibles that Shape Us" offers a roadmap for personal and professional growth that is empowering and enlightening. Attachments Scott Craig Westmont College 8055656051 scraig@westmont.edu
Tesla must provide NHTSA with Autopilot recall data by July or face up to $135 million in fines 2024-05-07 22:04:00+00:00 - The National Highway Traffic Safety Administration is pressing Tesla for answers about changes the company made to its Autopilot driver assistance system following a voluntary software recall in December that affected about 2 million vehicles in the U.S. Tesla must meet a deadline of July 1 to provide information to the regulator or face fines up to $135.8 million, according to a letter sent by the NHTSA to company on May 6. The recall was intended to improve Tesla's driver engagement systems, which are used to monitor whether drivers are safely using features like traffic aware cruise control, lane keeping and auto steering — part of Autopilot. Since the recall, at least 20 Tesla vehicles have been involved in crashes in which the system was thought to be in use, according to a filing on the NHTSA's website. The "recall remedy" probe follows a three-year investigation by NHTSA that found safety issues with Tesla Autopilot contributed to at least 467 collisions and 14 deaths from January 2018 through August 2023. The NHTSA had concluded that drivers involved in those crashes "were not sufficiently engaged in the driving task and that the warnings provided by Autopilot when Autosteer was engaged did not adequately ensure that drivers maintained their attention on the driving task." Driver engagement systems, sometimes known as driver monitoring systems, in Tesla vehicles include torque sensors in the steering wheel to detect whether drivers are keeping their hands on the wheel, and in-cabin cameras that monitor a driver's gaze. They should alert any inattentive driver to pay attention and stay ready to steer or brake at any time. The NHTSA is seeking detailed crash data from Tesla since it issued the recall update on Autopilot, including data and video stored in or streamed from its cars and retained by the company. They're also asking for records about Tesla's engineering teams and their approach to "safety defect determination decision making," "issue investigation," "action design including human factors considerations (initial and modifications)," and "testing." Tesla is in the middle of a massive reorganization and sweeping layoffs. The company hasn't disclosed how many jobs in its Autopilot and vehicle safety engineering teams may have been cut. For about a decade, CEO Elon Musk has been promising that Tesla is on the cusp of a self-driving breakthrough. With sales of Tesla EVs dropping in the first quarter, Musk has been focusing investors' attention on his dream of a future full of Tesla AI products, including robotaxis and "sentient" humanoid robots that can do factory work. Tesla shares fell 3.8% on Tuesday to $177.81 and are down 28% in 2024. WATCH: Altimeter Capital CEO on the future of Tesla
Trump classified documents trial in Florida postponed indefinitely 2024-05-07 21:58:00+00:00 - Republican presidential candidate and former U.S. President Donald Trump gestures while he walks with his attorney Todd Blanche, as his criminal trial over charges that he falsified business records to conceal money paid to silence porn star Stormy Daniels in 2016 continues, at Manhattan state court in New York City, U.S., May 6, 2024. A federal judge Tuesday indefinitely postponed the criminal classified documents trial of former President Donald Trump, a court filing shows. The trial on charges that Trump willfully retained classified national security records after leaving the White House and then hid them from federal authorities was scheduled to start May 20. But the new ruling from U.S. District Judge Aileen Cannon vacates that date and sets a new slate of pretrial proceedings, the latest of which is a hearing set for July 22. The ruling casts more doubt on whether Trump, the presumptive Republican presidential nominee, will face trial on the federal criminal charges prior to the Nov. 5 election. Lawyers for Trump have urged Cannon, whom Trump appointed to the federal bench in southern Florida, to set the trial after the election. Cannon wrote in Tuesday's court order that it "would be imprudent" to finalize a trial date "at this juncture" when various pretrial issues have yet to be resolved. Cannon pointed to pending questions about how classified information will be handled in the high-profile trial of the former president, along with "additional pretrial and trial preparations necessary to present this case to a jury." To move forward with the trial in May would be "inconsistent with the Court's duty to fully and fairly consider" those issues, she wrote. "The Court therefore vacates the current May 20, 2024, trial date (and associated calendar call), to be reset by separate order following resolution of the matters before the Court, consistent with Defendants' right to due process and the public's interest in the fair and efficient administration of justice," Cannon wrote. Trump is fighting 88 criminal counts in four separate courts as he campaigns to unseat President Joe Biden. He is currently on trial in Manhattan Supreme Court on charges of falsifying business records related to a $130,000 hush money payment to porn star Stormy Daniels. Whether any of Trump's other cases will head to trial before Election Day is unclear — and after Cannon's latest ruling, increasingly unlikely. In addition to the documents case, Trump is charged in federal court in Washington, D.C., with conspiring to overturn his loss to Biden in the 2020 election. He also faces election-interference charges in Georgia state court.
81% of young people say a 4-day workweek would boost productivity, new CNBC/Generation Lab survey reports 2024-05-07 21:54:00+00:00 - Young adults are throwing their support behind calls for a four-day workweek. A new national survey from CNBC/Generation Lab of 1,033 people aged 18 to 34 found that an overwhelming 81% of respondents believe a four-day workweek would boost their company's productivity, while 19% said productivity would decline. Those results from the "Youth & Money in the USA" survey come amid discussions around the potential benefits of switching from the standard five-day U.S. workweek to a four-day cadence without a pay cut. Some companies have begun testing the arrangement, and say it has mitigated employee burnout and strengthened business performance. Exos, a U.S. coaching company that trains top athletes and leads corporate wellness programs, recently reported results from the first six months of an ongoing four-day workweek experiment. The company said the shortened workweek increased efficiency along with revenue and retention. Other four-day workweek trials have shown similar gains. Although respondents to the CNBC/Generation Lab survey largely agreed on workweek length, they were less unified when asked about work setting. A 60% majority said they do their best work in the office, while the other 40% said they do so at home. Beyond the workplace, the reduced workweek also has its advocates in Congress. Sen. Bernie Sanders, I-Vt., introduced a bill in March that would bring the standard workweek down to 32 hours without a change to pay. The Senate bill is a companion to one reintroduced in the House of Representatives in March 2023 by Rep. Mark Takano, D-Calif., after it failed to advance upon its first introduction in 2021. Some prominent business leaders, too, have chimed into the conversation with their predictions for the workweek's future. IAC and Expedia chairman Barry Diller said he thinks companies will adopt a policy of four days in office followed by a flexible Friday. "Not necessarily a four-day work week, but four days in the office, and Fridays you can work from home or work at your own schedule," he said on CNBC's "Squawk Box" in April. "I think that is going to be the sensible evolution of all this, but it has to be standardized." New York Mets owner and billionaire financier Steven Cohen believes a widespread four-day workweek is on the horizon, citing the rise of artificial intelligence and generally lower productivity on Fridays. That thinking partly motivated his 2023 investment in golf startup league TGL. "I think I would have done the golf investment anyway because I think there's a longer-term thought, but my belief is a four-day workweek is coming," Cohen told "Squawk Box" in April. Want to make extra money outside of your day job? Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. CNBC Make It readers can use special discount code CNBC40 to get 40% off through 8/15/24. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
Sprinkles Goes from Cupcakes to Premium Chocolates with New CPG Launch 2024-05-07 21:44:00+00:00 - Loading... Loading... Now Available at Walmart Nationwide NEW YORK, May 7, 2024 /PRNewswire/ -- Sprinkles, the renowned dessert bakery, is entering the retail space with its first line of CPG products: Sprinkles Chocolate Bars and Sprinkles Mini Chocolates. The Chocolate Bars are available in four flavors, Red Velvet, Salted Caramel, Sprinkle, and Milk Chocolate and the Mini Chocolate Bites in Red Velvet and Salted Caramel are now available exclusively at over 4,000 Walmart locations nationwide. The premium cupcake-inspired indulgences made with real Rain Forest Alliance certified chocolate, were soft-launched earlier this year at Sprinkles bakery locations nationwide and were a favorite among guests. "Sprinkles is known for its decadent cupcakes and iconic flavors, so translating that experience into the chocolate category with Walmart, the largest retailer in the world, is beyond exciting," said Dan Mesches, CEO of Sprinkles. "We love seeing the Sprinkles brand alongside everyday products to bring something new and unexpected to the snacking space," said Mesches. "We innovated a premium chocolate line that is completely new and fresh in the candy aisle and accessible to shoppers nationwide. Chocolate continues to be a favorite snacking option for consumers and we think consumers will love to satisfy those cravings with Sprinkles Chocolate Bars and Minis," says Ashley Rogers, President & CEO of Sprinkles CPG. The four individually wrapped chocolate bars retail at $3.98 and the mini assorted package at $5.98 Sprinkles will celebrate the chocolate launch with a private launch event at their Beverly Hills flagship location on May 9. ABOUT SPRINKLES Sprinkles offers premium cupcakes, cakes and cookies that are baked fresh in small batches throughout the day and handcrafted with only the finest ingredients. Sprinkles opened its first bakery in Beverly Hills in 2005, drawing long lines of loyal cupcake fans and celebrity endorsements. Passionate innovators, in 2012, Sprinkles debuted the world's first Cupcake ATM and has grown to over 70 bakeries and ATMs coast to coast. For additional information and a list of future locations, please visit www.sprinkles.com. SOURCE Sprinkles
Trump's Mar-a-Lago document trial has been delayed again. He now has a chance to dodge it entirely. 2024-05-07 21:40:31+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 judge overseeing Donald Trump's criminal case over his holding onto secret government documents following his presidency delayed the trial indefinitely — giving him the chance to get rid of the charges if he wins the 2024 election. In an order Tuesday afternoon, US District Judge Aileen Cannon scheduled more than a dozen more hearings and deadlines for lawyers through July. The trial, she said, couldn't happen until she decided "myriad and interconnected pre-trial and CIPA issues remaining," referring to laws related to handling classified information. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Cannon — who Trump nominated for the judgeship while he was in the White House — had previously scheduled jury selection to commence on May 20, but it had long been clear the trial would not be ready to take place by then. For months, lawyers for Trump and his two co-defendants — Mar-a-Lago property manager Carlos de Oliveira and aide Waltine Nauta — had been sparring with federal prosecutors over how to share discovery information, which includes classified documents. Advertisement Justice Department Special Prosecutor Jack Smith, in an indictment last June, accused Trump of violating a slew of criminal national security and obstruction laws by spiriting away sensitive government documents from the White House to Mar-a-Lago and other personal properties, holding on to them after his presidency, and lying about it to authorities. The co-defendants, de Oliveira and Nauta, each helped Trump hide the documents and mislead investigators, prosecutors alleged. (A PAC controlled by Trump is paying lawyers representing de Oliveira and Nauta with political donor funds.) Trump's busy trial schedule is playing out in the thick of the 2024 election It's one of four ongoing criminal cases against Trump, the frontrunner for the Republican presidential nomination in the 2024 election and the only former president to be charged with any crime. Trump is currently about halfway through his first criminal trial, in Manhattan, where prosecutors accused Trump of illegally falsifying business records when he covered up hush money payments to Stormy Daniels, who says she had an affair with him, ahead of the 2016 presidential election. Advertisement Unlike in civil cases — Trump recently went through two — criminal cases generally require that the defendant be present during the entire trial, making scheduling a complicated task. Related stories Trump may also have the power, if he were to be reelected president, to dispose of the cases brought by the Justice Department. Another criminal case overseen by Smith, in a federal court in Washington, DC, was previously scheduled for March 4. In that case, Smith alleged Trump broke criminal laws through his efforts to overturn the results of the 2020 election. But it has been paused as the US Supreme Court weighs whether Trump would be immune from prosecution in the case, and may not be decided in time to complete the trial process before the 2024 election. Trump's attorneys have also made immunity arguments in the classified documents case. Advertisement Justice Department Special Counsel Jack Smith. MANDEL NGAN/AFP via Getty Images Fulton County District Attorney Fani Willis also brought election interference charges against Trump, for trying to overturn the results in Georgia. That case is not expected to go to trial until 2025 at the earliest. At a hearing in February for the New York case, Juan Merchan, the presiding judge, grew impatient with Trump's attorney, Todd Blanche, as he tried to lodge the trial from its original March 25 start date. Blanche is also the lead attorney representing Trump in the government documents case. "Stop interrupting me, please," Merchan said, when Blanche said the Florida case might move forward in May. "You don't have a trial date, not a real one." Blanche had suggested that everyone reconvene in March and then decide on a new schedule going forward. Merchan held firm, pointing out that the DC case had been indefinitely delayed, and that he expected the Manhattan trial to last six weeks — meaning it would end even if Cannon had held onto her May start date. Advertisement "I'm sure that the trial cannot start on May 20th if this trial is ongoing May 20th and Mr. Trump is present in this courtroom on May 20th, which I don't expect," Merchan said. "I expect this trial to last about six weeks. Even so, we can't have two simultaneous criminal trials." Merchan later pushed back the trial to April, based on a last-minute snafu related to the production of new records from a separate criminal investigation from federal prosecutors in New York. On Tuesday, Stormy Daniels took the stand, testifying about sex she says she had with Trump in 2006 — and threats she said she experienced later. Trump filed several motions to dismiss the Florida case in February, claiming he's immune from criminal charges and that it was OK for him to hold on to the records. Advertisement Cannon has thus far declined to dismiss the case on some of Trump's arguments, but is weighing others.
Bilibili: A Catalyst for Sino-French Cultural Exchanges 2024-05-07 21:39:00+00:00 - Loading... Loading... PARIS, May 7, 2024 PRNewswire/ -- This is a report from Xinhuanet: With the ongoing evolution of the Internet and of social media landscapes, new opportunities for cultural exchanges between China and France have emerged. Bilibili, a leading youth culture community in China, is leveraging its platform to foster these cross-cultural interactions. In an interview with 'Paris Xiao Guo Guo' (Guo Zhanglong), a reporter and a prominent Bilibili content creator who is attending a forum on the development of people-to-people and cultural exchanges between China and France in Paris, said, "As 'Paris Xiao Guo Guo', I utilize my channel on Bilibili to showcase not only the delights of Shanxi knife-shaved noodles but also interesting stories from France. In this digital age, I am honored to be instrumental in bringing cultural exchanges between China and France to life in a more vivid and authentic manner through the new media platform, Bilibili." Chen Rui, Chairman and CEO of Bilibili, affirms that the Internet is a potent tool for the exchange of cultural ideas. He sees his platform as an essential accelerator in the spread of culture. Stressing the importance of youth in cultural innovation, Chen argues that it is vital for young people to engage in cultural exchanges that promote understanding, respect, and learning. He also stressed the importance of quality content in cultural dissemination, noting that Bilibili actively supports its content creators in producing excellent work and uses its advanced recommendation system to ensure that this content reaches a wide audience. Guo Zhanglong, who arrived in France as an international student in 2011, has since established himself in Paris, where he and his family own several successful knife-shaved noodle restaurants. Reflecting on a transformative experience in 2022, Guo said, "That year, we took the initiative to introduce traditional Shanxi knife-shaved noodles at a small food fair in France. Our stall quickly became an online sensation, celebrated for its distinctive flavor and genuine cultural engagement. We were more than pleased as we observed its transformation from a simple showcase into a dynamic venue for Chinese and French cultural fusion. Mr. Guo noted, "Our videos serve not only as a chronicle of daily life but also as a bridge for cultural exchange. Every video we share and every interaction we engage in with our French friends contribute to deepening and enhancing the Sino-French cultural dialogue, while fostering a closer bond between us all." Looking to the future, particularly to later in 2024—an important year that marks the 60th anniversary of China-France diplomatic relations and coincides with the Paris Olympic Games—Guo is optimistic: "We aim to further expand our footprint and establish Chinese cuisine as a major player on the international stage. We are confident that, amid the surge in video content creation, more talented creators will join our ranks, and together, we will spearhead the globalization of Chinese culture." On the platform, vloggers like Paris Xiao Guo Guo showcase Sino-French exchanges through innovative storytelling techniques. Peng Jingxuan, an international student from China, captivates her audience with the retelling of her many academic and cultural adventures in France. It's a unique blend of content that covers everything from local music and art to broader cultural practices and lifestyles, giving her audiences an opportunity to better understand the nuances of the French way of life. Bilibili is also expanding its reach globally. By collaborating with overseas multi-channel network (MCN) agencies, the platform has attracted a diverse pool of international creators, including several French vloggers. The expansion not only enriches the platform's content offerings, but also enhances its global footprint and influence. Mr. Chen, the Bilibili CEO, highlighted the company's ongoing effort to promote vibrant cultural exchanges across the global youth community and to advance the understanding of Chinese culture through a combination of innovation within the framework of tradition and the preservation of tradition through innovation. The platform places a strong emphasis on the quality of its content and on connecting with younger audiences, aiming to foster cultural evolution through its video-sharing technology. SOURCE xinhuanet
$581M In Deals: Top States Draw Major Cannabis Investments Despite Market Downturn 2024-05-07 21:37:00+00:00 - Loading... Loading... In the latest report from Viridian Capital Advisors, investment trends in the U.S. cannabis industry show a marked decrease, despite significant capital inflows in leading states such as California, New York and Massachusetts. Over the last twelve months (LTM) ending May 3, 2024, there has been a noticeable downturn in both the number and volume of capital raises across the country. Leading States Navigate Market Headwinds As Investment Slows California remains at the forefront, ranking first with $320.16 million raised through 20 transactions. This positioning highlights the state’s ongoing dominance in attracting cannabis investment, albeit a 23.1% decrease in transaction volume from the previous year. New York follows, securing $174.62 million from 11 capital raises, a sharp decline of 54.6% in funds raised compared to the previous LTM period. Massachusetts, in third place, gathered $86.53 million, a 33.3% decrease in investment volume. Such figures illustrate a cautious approach from investors amid regulatory uncertainties and market adjustments. Nationally, the total capital raised has plummeted by 56.9%, with the total number of transactions decreasing by 29.2%. Notably, states like Illinois and Arizona saw the most significant reductions in investment activity, with declines of over 70% in capital raised. Midwest Market Insight Midwest markets, particularly Illinois, have experienced some of the steepest declines in investment activity, with Illinois seeing an 83% drop in capital raised. This signals a significant pullback but also presents a potential recalibration point for investors looking to capitalize on less competitive, albeit potentially rewarding markets. Loading... Loading... Emerging Opportunities Amid Decline Viridian’s chart reveals some states with notable increases in transaction volume and capital raised, such as Pennsylvania and Nevada. Pennsylvania shows a remarkable 150% increase in the number of transactions compared to the previous year. This suggests a burgeoning market that is attracting more investment deals. Nevada maintains its number of transactions but shows a substantial increase in the capital raised, highlighting its capacity to attract larger investments. Pro Tip: Why This Matter Capital raises and investment volumes are critical indicators of market confidence and potential regulatory changes. These metrics help investors gauge sentiment and anticipate market trends. Understanding investment flows enables the identification of underexploited markets with growth potential. The midwest's current investment pullback may present strategic opportunities as the market adjusts. Vital for investors is spotting emerging opportunities in states where investment activities are stable or growing despite a general market downturn. These trends suggest resilience and potential for growth in less saturated markets, offering strategic advantages for forward-thinking investors. If you want to gain a deeper understanding of investment opportunities, don't miss the opportunity to join us at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry's future. Secure your tickets now before prices increase by following this link . Photo: AI-Generated Image.
Critical Metals Corp Publishes Investor Presentation and Corporate Update - Critical Metals (NASDAQ:CRML) 2024-05-07 21:36:00+00:00 - Loading... Loading... NEW YORK, May 07, 2024 (GLOBE NEWSWIRE) -- Critical Metals Corp. CRML ("Critical Metals"), a leading mining company focused on critical metals and minerals for the green energy transition, today announced that an updated investor presentation is now available on the Investor Relations section of the Company's website. The presentation can also be viewed by clicking here. About Critical Metals Corp. Critical Metals CRML is a leading mining company focused on mining critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its partners. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure to become the next major producer of key lithium products to support the growing demand for electric vehicles (EVs) and Europe's burgeoning lithium-ion battery supply chain. In addition, Critical Metals owns a 20% interest in prospective Austrian mineral projects previously held by European Lithium Ltd EUR. For more information, please visit https://criticalmetalscorp.com/. Critical Metals Corp. Investor Relations: ir@criticalmetalscorp.com Media: pr@criticalmetalscorp.com
These 10 states are the most frustrating places to buy a house. See where homebuyers are surprised with the biggest fees. 2024-05-07 21:20:31+00:00 - Homebuyers pay for things beyond the purchase price of their properties — and those can add up. Unexpected homebuying costs include loan origination fees and property taxes. Home-services firm Frontdoor listed the states with the highest unexpected homebuying costs. 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 Buying a house is hard enough these days. In the US, purchasing a home comes with additional fees and costs, which means you might have to pay more than you initially budgeted — and in some states, a lot more. A report by home-services company Frontdoor identified the states that shackle buyers purchasing a median-priced property with the highest unexpected costs. Unless you're buying in cash, mortgage payments and a down payment are routine. However, other expenses — including appraisal costs, loan origination fees, and property taxes — crop up early in the home-buying journey. Advertisement When prices of homes alone are so high, these additional costs — which can total from about $11,000 to almost $18,000 — can further burden and frustrate homebuyers. Frontdoor used data from for-sale-by-owner site Houzeo to pinpoint the cost of 20 common additional charges for homebuyers in each state. Here are the 10 states where homebuyers spend the most on unexpected property fees.
Live Nation Entertainment To Participate In J.P. Morgan's 52nd Annual Global Technology, Media And Communications Conference - Live Nation Entertainment (NYSE:LYV) 2024-05-07 21:12:00+00:00 - Loading... Loading... LOS ANGELES, May 7, 2024 /PRNewswire/ -- Live Nation Entertainment, Inc. LYV, the world's leading live entertainment company, announced today that Joe Berchtold, Live Nation Entertainment's President and Chief Financial Officer, will be presenting at J.P. Morgan's 52nd Annual Global Technology, Media and Communications Conference on Tuesday, May 21, 2024 at 7:10 a.m. PT. A live webcast of the event will be accessible from the "News / Events" section of the company's website at investors.livenationentertainment.com . About Live Nation Entertainment Live Nation Entertainment LYV is the world's leading live entertainment company comprised of global market leaders: Ticketmaster, Live Nation Concerts and Live Nation Media & Sponsorship. For additional information, visit www.livenationentertainment.com . SOURCE Live Nation Entertainment
Reddit shares soar 14% after company reports revenue pop in debut earnings report 2024-05-07 21:09:00+00:00 - Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange (NYSE) in New York on March 21, 2024. Reddit shares rallied 14% in extended trading on Tuesday after the company released quarterly results for the first time since its IPO in March. Here's how the company did: Loss per share: $8.19 loss per share. That may not compare with the $8.71 loss expected by LSEG $8.19 loss per share. That may not compare with the $8.71 loss expected by LSEG Revenue: $243 million vs. $212.8 million expected by LSEG Revenue climbed 48% from $163.7 million a year earlier. The company reported $222.7 million in ad revenue for the period, up 39% year over year, which is a faster rate of growth than at its top competitors. Digital advertising companies have started growing again at a healthy clip after brands reeled in spending to cope with inflation in 2022. Meta 's ad revenue jumped 27% in the first quarter, followed by 24% growth at Amazon and 13% growth at Google parent Alphabet. Reddit reported a net loss of $575.1 million. Stock-based compensation expenses and related taxes were $595.5 million, primarily driven by IPO charges. For the second quarter, Reddit expects revenue of $240 million to $255 million, topping the $224 million expected by analysts, according to LSEG. The midpoint of the guidance range suggests growth of about 32% for the second quarter, up from $183 million from a year earlier. Reddit, which hosts millions of online forums on its platform, was founded in 2005 by Alexis Ohanian and Steve Huffman, the company's CEO. "We see this as the beginning of a new chapter as we work towards building the next generation of Reddit," Huffman said in a release Tuesday. Reddit began trading under the ticker symbol "RDDT" on the New York Stock Exchange in March. The company priced its IPO at $34 per share, which valued the company around $6.5 billion. When tech valuations were red hot in 2021, Reddit's private market valuation reached $10 billion. The stock climbed past $58 in after-hours trading on Tuesday before coming back a bit. Should the stock close above $57.75 on Wednesday, it would be at its highest since March 26, its fourth day of trading. The shares closed that day at $65.11, their highest yet. The company reported 82.7 million daily active users for its first quarter, up from the 76.6 million expected by StreetAccount. Average revenue per user worldwide rose 8% to $2.94 from $2.72 a year ago. Reddit will hold its first quarterly call with investors at 5 p.m. ET. WATCH: Reddit shares climb after earnings
WNBA players will soon be able to take charter planes for all away games 2024-05-07 21:05:00+00:00 - The WNBA is set to announce the use of charter planes for travel to and from all away games, league commissioner Cathy Englebert said Tuesday. It will mark a change from the present arrangement that saw the league's 12 teams primarily flying commercial. “We intend to fund a full-time charter for this season,” Engelbert said Tuesday in a meeting with sports editors. The existing rule, stipulated by the current collective bargaining agreement (CBA), inevitably led to delays and headaches, as documented in an Associated Press report last year. In particular, especially tall players have often been cramped into uncomfortable seats — while international players, who cannot use expedited airport security processing like TSA PreCheck, sometimes caused extended waits for their teammates. While players are usually able to take comfort or economy-plus seats, any upgrades had to come directly from a player’s pocket. An attempt by the New York Liberty to circumvent the commercial-flying rule in 2022 was met with a record $500,000 fine, though the league has since allowed teams with back-to-back game-nights to use charters. Englebert said the league will launch the program “as soon as we can get planes in places.” Last year, the WNBA estimated it would cost about $25 million to use charters for the entire season. The CBA is set to expire after this season — and with interest in women's basketball at all-time highs amid Caitlin Clark mania, the league looks to be getting ahead of ongoing complaints about a lack of investment in its players, while anticipating increased revenues that should help cover the price of flying private. The first WNBA regular season game for 2024 is slated to tip off Tuesday, May 14.
Oddity Tech says it's bucking the beauty slowdown Ulta warned about 2024-05-07 21:03:00+00:00 - As Ulta Beauty says it expects a slowdown in retail's most resilient category, an upstart says it is bucking the trend. Oddity Tech , the newly public Israeli cosmetics platform that uses artificial intelligence to develop products, posted first-quarter results that blew past expectations and raised its full-year guidance. Here is how the beauty retailer behind the Il Makiage and Spoiled Child brands performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per share: 61 cents adjusted vs. 49 cents expected 61 cents adjusted vs. 49 cents expected Revenue: $211.63 million vs. $205 million expected The company reported net income of $32.98 million, or 53 cents per share, for the three-month period that ended March 31, compared with $19.59 million, or 35 cents per share, a year earlier. Excluding one-time items, Oddity reported earnings of 61 cents per share. Sales rose to $212 million, up about 28% from $166 million a year earlier. The company is now expecting full-year revenue to be between $626 million and $635 million, compared to a prior outlook of $620 million to $630 million. Analysts had expected $627 million, according to LSEG. It expects adjusted earnings per share to be between $1.57 and $1.62, up from prior guidance of $1.49 to $1.54. Analysts had expected $1.51, according to LSEG. For the current quarter, Oddity is expecting sales to be between $185 million and $189 million, and adjusted earnings per share to be in the range of 61 cents to 64 cents. Analysts had expected revenue of $186.5 million and earnings per share of 56 cents, according to LSEG. Shares jumped nearly 10% in extended trading Tuesday. Oddity, which started trading on the Nasdaq in July, aims to disrupt the legacy beauty and wellness industry by using AI to develop new products and tailor recommendations. Oddity believes beauty and wellness products are best sold online, and that consumers will not need to visit beauty shops such as Ulta and Sephora if product selection can be improved. Last month, Ulta Beauty CEO Dave Kimbell warned that demand for beauty products was cooling, sending its stock down 15% that day and hitting shares of e.l.f. Beauty , Estée Lauder and Coty . "We have seen a slowdown in the total category," Kimbell said at an investor conference hosted by JPMorgan Chase. "We came into the year — and we talked about this on our [earnings] call a few weeks ago — expecting the category to moderate. It has [had], as I said, several years of strong growth. We did not anticipate it would continue at the rate that it's been growing." He added that the slowdown has been "a bit earlier and bit bigger than we thought." Kimbell said the downturn has cut across price points and beauty categories, but has been more significant in prestige makeup and hair care. Lindsay Drucker Mann, Oddity's chief financial officer, disagreed that the category is slowing down. "There's no slowdown for us, not in our new users, and not in the way our existing users are behaving. If anything, the quarter shows there's massive demand for online," Drucker Mann told CNBC in an interview. "What we do see is an industry that's transforming," she said. "So the consumer is moving online and the consumer is moving to high-efficacy products that really solve their problems and these are two really unstoppable trends that we see driving the industry that we are leading." Read the full earnings release here.
Inquiry Finds a Toxic Culture at the F.D.I.C., and Takes Aim at Its Leader 2024-05-07 20:56:09+00:00 - A report on workplace culture at the Federal Deposit Insurance Corporation released on Tuesday revealed a broad, yearslong pattern of sexual harassment, discrimination and abuse of mostly women and members of minority groups by senior officials. The findings are likely to lead to another potentially bruising round of questions for the agency’s chair, Martin Gruenberg, who is scheduled to testify in Congress later this month. The report said the bad behavior at F.D.I.C., which has the authority to monitor the health and stability of all U.S. banks but more closely oversees smaller institutions, affected “far too many employees” and went on “far too long.” The agency’s problems were caused by “a patriarchal, insular, and risk-averse culture” and a “lack of clarity and credibility around internal reporting channels,” said the report, prepared by the law firm Cleary Gottlieb. It described “fiefdoms” in regional offices, where senior managers protected other longtime employees from potential consequences stemming from more junior employees’ claims of mistreatment. Examples of the behavior, including senior examiners texting junior women pictures of their genitalia or taking them to brothels, were first reported by The Wall Street Journal in November. Tuesday’s report was the result of an independent investigation by Cleary Gottlieb, which was hired by a special committee created by the agency’s board after The Journal’s report.
Eric Schmidt says China trails behind the US in AI for these 4 reasons 2024-05-07 20:53:08+00:00 - Former Google CEO Eric Schmidt said the US is "way ahead of China" in AI development. Schmidt cited chip shortages and more English language material to train AI models. He also said China's reduced funding and focus on for-profit apps are barriers to its advancement. 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 Former Google CEO Eric Schmidt thinks the US is "way ahead of China" when it comes to AI. "In the case of artificial intelligence, we are well ahead, two or three years probably of China, which in my world is an eternity," Schmidt said in an interview with Bloomberg on Tuesday. "I think we're in pretty good shape." Schmidt served as Google's CEO from 2001 until 2011 and remained its chairman until 2015. Following his departure, Schmidt has invested in various AI companies, including Anthropic. He also became the chairman of the Department of Defense's Innovation Board in 2016 and chaired the National Security Commission on Artificial Intelligence for three years. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Katy Perry and Rihanna didn’t attend the Met Gala. But AI-generated images still fooled fans 2024-05-07 20:49:56+00:00 - NEW YORK (AP) — No, Katy Perry and Rihanna didn’t attend the Met Gala this year. But that didn’t stop AI-generated images from tricking some fans into thinking the stars made appearances on the steps of fashion’s biggest night. Deepfake images depicting a handful of big names at the Metropolitan Museum of Art’s annual fundraiser quickly spread online Monday and early Tuesday. Some eagle-eyed social media users spotted discrepancies — and platforms themselves, such as X’s Community Notes, soon noted that the images were likely created using artificial intelligence. One clue that a viral picture of Perry in a flower-covered gown, for example, was bogus is that the carpeting on the stairs matched that from the 2018 event, not this year’s green-tinged fabric lined with live foliage. Still, others were fooled — including Perry’s own mother. Hours after at least two AI-generated images of the singer began swirling online, Perry reposted them to her Instagram, accompanied by a screenshot of a text that appeared to be from her mom complimenting her on what she thought was a real Met Gala appearance. “lol mom the AI got to you too, BEWARE!” Perry responded in the exchange. Representatives for Perry did not immediately respond to The Associated Press’ request for further comment and information on why Perry wasn’t at the Monday night event. But in a caption on her Instagram post, Perry wrote, “couldn’t make it to the MET, had to work.” The post also included a muted video of her singing. Meanwhile, a fake image of Rihanna in a stunning white gown embroidered with flowers, birds and branches also made its rounds online. The multihyphenate was originally a confirmed guest for this year’s Met Gala, but Vogue representatives said that she would not be attending before they shuttered the carpet Monday night. People magazine reported that Rihanna had the flu, but representatives did not immediately confirm the reason for her absence. Rihanna’s reps also did not immediately respond to requests for comment in response to the AI-generated image of the star. While the source or sources of these images is hard to lock down, the realistic-looking Met Gala backdrop seen in many suggests that whatever AI tool was used to create them was likely trained on some images of past events. The Met Gala’s official photographer, Getty Images, declined comment Tuesday. Last year, Getty sued a leading AI image generator, London-based Stability AI, alleging that it had copied more than 12 million photographs from Getty’s stock photography collection without permission. Getty has since launched its own AI image-generator trained on its works, but blocks attempts to generate what it describes as “problematic content.” This is far from the first time we’ve seen generative AI, a branch of AI that can create something new, used to create phony content. Image, video and audio deepfakes of prominent figures, from Pope Francis to Taylor Swift, have gained loads of traction online before. Experts note that each instance underlines growing concerns around the misuse of this technology — particularly regarding disinformation and the potential to carry out scams, identity theft or propaganda, and even election manipulation. “It used to be that seeing is believing, and now seeing is not believing,” said Cayce Myers, a professor and director of graduate studies at Virginia Tech’s School of Communication — pointing to the impact of Monday’s AI-generated Perry image. “(If) even a mother can be fooled into thinking that the image is real, that shows you the level of sophistication that this technology now has.” While using AI to generate images of celebs in make-believe luxury gowns (that are easily proven to be fake in a highly-publicized event like the Met Gala) may seem relatively harmless, Myers and others note that there’s a well-documented history of more serious or detrimental uses of this kind of technology. Earlier this year, sexually explicit and abusive fake images of Swift, for example, began circulating online — causing X, formerly Twitter, to temporarily block some searches. Victims of nonconsensual deepfakes go well beyond celebrities, of course, and advocates stress particular concern for victims who have little protections. Research shows that explicit AI-generated material overwhelmingly harms women and children — including disturbing cases of AI-generated nudes circulating through high schools. And in an election year for several countries around the world, experts also continue to point to potential geopolitical consequences that deceptive, AI-generated material could have. “The implications here go far beyond the safety of the individual — and really does touch on things like the safety of the nation, the safety of whole society,” said David Broniatowski, an associate professor at George Washington University and lead principal investigator of the Institute for Trustworthy AI in Law & Society at the school. Utilizing what generative AI has to offer while building an infrastructure that protects consumers is a tall order — especially as the technology’s commercialization continues to grow at such a rapid rate. Experts point to needs for corporate accountability, universal industry standards and effective government regulation. Tech companies are largely calling the shots when it comes to governing AI and its risks, as governments around the world work to catch up. Still, notable progress has been made over the last year. In December, the European Union reached a deal on the world’s first comprehensive AI rules, but the act won’t take effect until two years after final approval. _____________ AP Reporters Matt O’Brien in Providence, Rhode Island and Kelvin Chan in London contributed to this report.