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Palantir raises annual revenue forecast on GenAI strength; shares surge 2024-08-06 04:06:00+00:00 - By Arsheeya Bajwa (Reuters) -Palantir Technologies raised its annual revenue forecast for the second time this year on Monday, the latest sign that the generative AI boom is driving demand for its software services. Shares of the Denver, Colorado-based company rose more than 13% in extended trading, adding to a year-to-date gain of more than 39% as Wall Street made heavy bets on the future of generative artificial intelligence technology. The data analytics company also forecast third-quarter sales above estimates and reported its largest ever quarterly profit, in the April-to-June period, CEO Alex Karp said in a letter to shareholders. Its AI platform, used to test, debug code and evaluate AI-related scenarios, has enabled Palantir to tap into surging demand for services that help companies develop GenAI technology. The company co-founded by billionaire Peter Thiel now expects annual revenue between $2.74 billion and $2.75 billion, compared with $2.68 billion to $2.69 billion expected earlier. This is above the estimate of $2.70 billion, according to LSEG data. It also raised its annual revenue expectation from U.S.-based companies by $11 million, to $672 million. Chief Revenue Officer Ryan Taylor told Reuters Palantir was driving growth by helping companies overcome "the huge bottleneck" between AI application prototypes and finished products deployed to customers. Palantir's shares slipped nearly 9% last week after earnings reports from Big Tech firms such as Microsoft signaled that payoffs from huge AI bets could take longer to materialize than investors had initially hoped. The company forecast third-quarter revenue between $697 million and $701 million, compared to analysts' average estimate of $679.1 million, according to LSEG data. It has been working to reduce its dependence on government clients, which made up about 54% of total second-quarter sales. The U.S. commercial business, which grew 55% to $159 million, was the highlight for the quarter, D.A. Davidson managing director Gil Luria said. "Enterprise customers are increasingly selecting Palantir to help them find a path to leveraging artificial intelligence within their business," Luria said. The company recorded adjusted earnings of 9 cents per share in the second quarter, compared to an estimate of 8 cents per share. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Pooja Desai)
Schwab, Fidelity, other online trading brokerages appear to go dark during huge market sell-off 2024-08-06 01:11:00+00:00 - NEW YORK (AP) — Several online brokerage firms including Charles Schwab, Fidelity and Vanguard appeared to be down for thousands of users early Monday during one of the biggest stock markets sell-offs of 2024. User reports appeared to peak around and just before 10 a.m. ET, data from outage tracker Downdectector shows. Some frustrated customers online said that they were unable to log in or access their account balances. “Due to a technical issue, some clients may have difficulty logging in to Schwab platforms,” Charles Schwab wrote on social media platform X Monday morning. “Please accept our apologies as our teams work to resolve the issue as quickly as possible.” Shortly after 12:30 p.m. ET, Schwab confirmed that the issue had been resolved. A Fidelity spokesperson told The Associated Press via email Monday that the company was aware of some customers experiencing “intermittent issues” earlier in the day, but said that this is now resolved. Vanguard did not immediately return a request for comment. At its peak, Charles Schwab saw nearly 15,000 outage reports from users around 9:50 a.m. ET, per Downdetector. Fidelity and Vanguard saw another 3,800 and 2,900, respectively, closer to 10 a.m. ET. User reports appeared to fall notably for all three platforms about an hour later.
Could the Fed enact an emergency rate cut before its next meeting? Here are the odds. 2024-08-05 22:36:00+00:00 - The three-day stock market rout roiling Wall Street is prompting some experts to question whether the Federal Reserve could enact an emergency rate cut before its September meeting. The speculation is arising in the wake of the Fed's July 31 meeting, when the central bank decided to keep its benchmark rate steady at its highest point in 23 years. At a press conference that day, Fed Chair Jerome Powell said while he and other officials were carefully watching the labor market for signs of weakness, they wanted to see more evidence that inflation was cooling before cutting rates. But on August 2, the monthly jobs report came in much weaker than expected, sparking fears that the U.S. economy may be fraying under the weight of high borrowing costs and that the Fed has waited too long to cut rates. A few other weak economic reports have added fuel to those worries about the economy, igniting a three-day rout that's caused the S&P 500 to shed 6% of its value since July 31. Given the dim economic data, some analysts and investors said they believe the Fed should undertake an emergency cut before their next rate decision, scheduled for September 18. "Some analysts are even suggesting an intra-meeting emergency cut is warranted," noted Seema Shah, chief global strategist at Principal Asset Management, in an email. What are the odds of a Fed emergency rate cut? Traders are signaling a roughly 60% likelihood of an emergency 0.25 percentage point cut within one week, according to Bloomberg News. But some experts said they believe the odds are much lower, with Pantheon Macroeconomics noting that overnight index swap rates implied that investors on Monday saw a roughly 30% chance the Fed could make an emergency cut in the next week. Chicago Federal Reserve President Austan Goolsbee on Monday told CNBC that if there's more deterioration in economic conditions, "we're going to fix it." But he added that even though the jobs numbers were weaker than expected, he doesn't believe the U.S. is in a recession. What is the history of Fed emergency rate cuts? The Fed has cut rates at nine emergency meetings in the last 30 years, which means an intra-meeting cut before September "would not be unprecedented," Pantheon noted. The last emergency rate cut was in March 2020, when the economy was free-falling due to the coronavirus pandemic, which shuttered businesses across the globe. "Intra-meeting cuts have typically only happened in the event of financial crisis," Shah noted. That was echoed by Pantheon, which noted that "economic and market conditions usually have been worse than now to trigger an emergency Fed meeting." Do economists see an emergency rate cut as likely? While the markets are pricing in the chance of a rate cut, many economists believe the Fed is likely to wait until its September meeting to start easing borrowing costs, partly as the S&P 500 and Dow Jones Industrial Average remain in positive territory despite the three-day rout. "We think [Powell] will opt to wait until September, provided markets stabilize," Pantheon's economists wrote in a research note. "The Fed probably will place little weight on the drop in stock prices, as the main indexes still are higher than at the start of the year." And cutting rates in an emergency meeting might undermine confidence in the economy, Amanda Agati, chief investment officer of PNC's asset management group, told CBS MoneyWatch. "From our perspective, this isn't the environment when you want to hastily throw a rate cut out there," Agati said. An emergency cut could do "more damage than it helps because then the everyone will say, 'What does the Fed know that we don't?'"
4 reasons the stock market is plunging — and what experts say you should do 2024-08-05 22:29:00+00:00 - Financial analyst on stock market turmoil and what it means for your 401K Financial analyst on stock market turmoil and what it means for your 401K 09:01 A swift and sudden downdraft in global stocks is raising concern among ordinary investors about the impact on their portfolios and 401(k) plans. The S&P 500 slid 160 points, or 3%, to 5,186 on Monday, the index's biggest one-day drop in nearly two years, according to FactSet. The tech-heavy Nasdaq Composite sank 3.4% as investors fled some of the tech giants that until recently had powered the U.S. market higher, with Apple shedding 4.8% and Nvidia falling 6.4%. Notably, the slump follows what had been a bullish year, with the stock market reaching record highs that bolstered the retirement accounts of millions of U.S. workers. The whiplash may have some 401(k) savers questioning what's behind the reversal, especially after the U.S. economy had appeared to be on solid footing, with steady growth and cooling inflation, thanks to the Federal Reserve's flurry of interest rate hikes. Here are four reasons why experts say the stock market is tumbling, along with their advice on what investors should do. The Fed might have waited too long to cut interest rates A range of signals in recent months suggest the economy is losing speed, leading some experts to urge the Federal Reserve to lower its benchmark interest rate for the first time since 2020. For now, however, the central bank has left rates unchanged, including more at its policy meeting last week. Investors now fret that the Fed may have waited too long to ease borrowing costs for consumers and businesses, raising the risks of a recession. "The real issue here is investors are worried the Fed is behind the curve in cutting interest rates, and that means there could be a bigger risk of a policy error," Amanda Agati, chief investment officer of PNC's asset management group, told CBS MoneyWatch. "The fear is that we might ultimately tip into a recession, versus that prior expectation for a soft landing." Economic data points to U.S. slowdown Stocks have soared into record terrain this year, propelled by expectations the Fed would soon trim interest rates for the first time since 2020 and by the ongoing artificial intelligence boom. But market sentiment began to shift in mid-July as a growing number of economic signals pointed to a slowdown in growth. Those concerns intensified on August 2 after data showed a dip in manufacturing and construction, while a weaker-than-expected employment report added to Wall Street's fears about the economy running out of steam. Potentially more worrisome is that consumer spending — which accounts for roughly two-thirds of economic activity — is showing signs of weakness. Companies such as McDonald's and Walmart are reporting that their customers are cutting back amid the strain of still-elevated inflation and high borrowing costs. Still, some experts caution that such data points might turn out to be a blip, rather than a trend. "Without stating the obvious, one month does not make a trend, so next month's jobs report will be very important," said Seema Shah, chief global strategist at Principal Asset Management, in an email. "It's worth pointing out that the April 2024 payroll number was initially 165,000 and then was revised down to 108,000 before rebounding to 216,000 the following month." Tech stocks are a victim of high expectations Some of the worst-hit stocks during the rout can be found in the tech sector, with the so-called Magnificent Seven, a group of tech stocks including Amazon, Apple and Nvidia, among the market's worst performers on Monday. Nvidia, the chip company whose technology powers artificial intelligence, has shed 23% of its value since July 31. Prior to last week, these stocks had been among the year's best performers, which meant that Wall Street had lofty expectations for their revenue and profit growth. And while their earnings reports have been solid so far this year, they haven't wowed investors. "Even if earnings come in as expected, the valuation multiples are so high that it's hard to sustain" those prices, PNC's Agati said. "Investors are panicking, and this is a really rapid sentiment shift." She added, "We don't think the underlying fundamentals support this shift. For the most part, the Magnificent Seven have been fine in terms of earnings results." Japan's interest rate hike Professional investors also pointed to the impact of the Bank of Japan's move last week to raise its main interest rate from nearly zero. This boosted the value of the Japanese yen. But it has also forced traders to unwind investments in which they had borrowed money in Japan at near-zero interest rates and then converted the yen into dollars, which they then used to buy U.S. stocks. In other words, traders have had to sell assets to cover their trades, which could be feeding into the stock market declines, experts said. "This 'carry trade' has been unraveling in recent weeks and might have crescendoed on Friday," according to Yardeni Research. What should investors do? First it's important to understand that stock downturns — even sharp ones — are common. Although the S&P 500 is down roughly 8% from its peak in July, drops in equity prices of 5% or more have occurred at least once a year for the past four decades, according to Oxford Economics. Market corrections, or a drop of at least 10% from their highs, occur an average of every one and half to two years, the firm said in a report. But even bear markets, or when stocks decline at least 20% from their peak, are normal and aren't a reason to panic, experts say. While the temptation might be to sell, it's best to resist that urge, especially for people saving for the long-term such as for retirement. Market timing, or trying to buy and sell stocks to capture gains and avoid losses, is notoriously difficult and can lead to lost opportunities, research from Charles Schwab has found. "If you are a long term investor, take a deep breath — it is very scary, I get it," Jill Schlesinger, the business analyst for CBS News, told the network. "As long as you are in a long-term portfolio, you shouldn't worry." Moving into cash "is never a good investment," added PNC's Agati. That's especially the case when the Fed is widely expected to cut rates as early as September, which will reduce the returns for savings accounts and money market funds. "If you are worried about your retirement plan, I wouldn't be pulling the plug and moving to cash," Agati added, noting that he would look at investment-grade fixed income investments or U.S. Treasuries because they may provide more attractive yields moving forward.
Dow plunges more than 1,000 points amid fears of U.S. economic slowdown 2024-08-05 22:18:00+00:00 - Stocks in the U.S. plunged for a third consecutive trading day, with the Dow Jones Industrial Average tumbling more than 1,000 points amid growing fears of an economic downturn sparked by a slowdown in hiring and consumer spending. The S&P 500 slid 160 points, or 3%, to 5,186 on Monday, the index's biggest one-day drop in nearly two years, according to FactSet. The tech-heavy Nasdaq Composite sank 3.4% as investors fled some of the Big Tech players that until recently had powered the U.S. market higher — Apple shed 4.8%, while Meta and Nvidia, fell 2.5% and 6.4%, respectively. The Dow Jones Industrial Average tumbled 1,034 points, shedding 2.6% of its value. Earlier in the day, it had lost as more than 1,200 points, but the markets regained some of their early losses as Wall Street digested Monday data from the Institute for Supply Management (ISM) Services index, which showed that service employment picked up in July. "The details of the ISM report were encouraging, with business activity, new orders and employment all rebounding markedly in July," Oxford Economics said in a Monday research note. The report "aligns with our view of an economy in transition rather than one on the brink of collapse." Even with Monday's rout, U.S. stocks still remain in positive territory this year. The S&P 500 has gained 9.4% in 2024, even after including its recent slide, while the Dow remains up by 2.6%. What's driving down stocks Stocks lost ground on Thursday after weak reports on manufacturing and construction, which stoked fears the U.S. economy may finally be buckling under the pressure of high interest rates. Then on Friday, government data showed that hiring last month was far weaker than expected, adding to Wall Street's fears that a "soft landing," in which the U.S. economy could avoid a recession despite the highest interest rates in 23 years, could instead become a hard landing. "The main factor that has staying power is the economy's slowdown," wrote Wells Fargo head of global investment strategy Paul Christopher in a report. "Investors have been watching household financial stress build for the past two years, but during that time, job growth remained above its December 2009-December 2019 average of 180,000 new jobs per month." But Friday's jobs report showed that employers added only 114,000 new jobs last month, far fewer than the 175,000 jobs expected by economists, he noted. Tech stocks have been hit particularly hard in recent weeks as investors pull back from artificial intelligence companies amid questions about when the emerging sector will deliver profits. "It has been a tough few weeks for the AI group as earnings were reported," analysts with Melius Research wrote. 'Microsoft, Meta, Google and Amazon were all asked about payoffs from AI investments. While pretty clear that they all need to keep spending, the market remains skeptical of the pace." The market rout extended to Asian and European markets, with Japan's benchmark stock index plunging 12.4% on Monday. The Nikkei had dropped 5.8% on Friday, making this its worst two-day decline ever. Stocks in Korea and Taiwan also fell sharply, with all three Asian markets damaged as investors pull back from companies focused on artificial intelligence out of concern the sector has been overhyped. When will the Fed cut rates? With the disappointing economic data, Wall Street is worried the Federal Reserve may have kept its benchmark interest rate too high for too long, heightening the risk of a recession. The central bank kept the federal funds rate unchanged when it met on July 31 to discuss economic conditions and whether and when it should begin cutting rates. A rate cut would make it less expensive for U.S. households and companies to borrow money, but it could take time for the effects to boost the economy. On Monday, some investors called for the Fed to start cutting rates sooner rather than later to stave off an economic downturn. "The Federal Reserve needs to start easing monetary policy more aggressively than had been anticipated, in order to head off a looming recession in the world's largest economy," said Nigel Green, CEO of deVere Group, an independent financial advisory and asset management firm, in an email. "The Fed was behind the curve at the beginning of the cycle, it cannot afford to be behind the curve this time too." Economists still don't expect a recession Although worries over weakness in the U.S. economy and volatile markets have rippled around the world, domestic economic activity remains solid, with many analysts saying that a recession remains unlikely. Stephen Brown, deputy chief North America economist with Capital Economics, still expects a soft landing, while acknowledging that the risk of a sharper downturn is rising. The economy has accelerated this year, with the nation's gross domestic product jumping to 2.8% in the second quarter, blowing past forecasts. A recession is typically marked by two consecutive quarters of negative GDP. And although July's jobs report was disappointing, analysts point out that it reflects just one month of data, while also noting that the depressed hiring figures in July could have also been impacted by Hurricane Beryl. "It can be a mistake to read too much into a single data release," noted Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management, told investors in a research note. "The number of people who reported being unable to work [in July] due to the weather was 436,000; this compares to an average of 33,000 for July since 2000." —With reporting by the Associated Press.
Judge orders DOJ to return helmet, spear to 'QAnon Shaman' Jacob Chansley 2024-08-05 22:13:00+00:00 - Jacob Chansley, also known as the "QAnon Shaman," screams "Freedom" inside the U.S. Senate chamber after the U.S. Capitol was breached by a mob during a joint session of Congress on January 6, 2021 in Washington, DC. "QAnon Shaman" Jacob Chansley will regain possession of the makeshift spear and horned helmet that he carried as he stormed the U.S. Capitol during the Jan. 6, 2021, riot with other Trump supporters, a federal judge ruled Monday. The Department of Justice failed to show why it still needed his property, which had made him an iconic face of the Capitol riot, Judge Royce Lamberth wrote in an order in Washington, D.C., federal court. "Since the government has not established that it still needs these items as evidence and has not sought their forfeiture, the Court will GRANT Mr. Chansley's motion," Lamberth wrote. The DOJ last month said it wanted to hold onto Chansley's property because despite having expressed remorse at his criminal sentencing he has since challenged his conviction and sentence. "In other words, the government would like to ensure finality in the appellate process in this and other cases," U.S. Attorney for the District of Columbia Matthew Graves wrote in the July 12 court filing. Lamberth was unconvinced by that argument. "Even if the government may need to reprove Mr. Chansley's guilt, the government has not explained why it would need his property," the judge wrote in Monday's order. "As there is voluminous video and photo evidence of Mr. Chansley's conduct, his property is of little utility for an investigation or prosecution and 'the United States' legitimate interests can be satisfied even if the property is returned,' " he wrote. Chansley was among the first of thousands of rioters who stormed and occupied the Capitol building on Jan. 6, the day that Congress convened for a joint session to confirm the Electoral College victory of President Joe Biden over then-President Donald Trump. The mob of Trump supporters forced lawmakers to flee the Senate and House of Representatives chambers, delaying the confirmation process for hours. Chansley led chants on the floor of the Senate and sat in the chair used by then-Vice President Mike Pence to preside over proceedings there. Chansley's striking appearance quickly made him a symbol of the insurrection. His outfit, coupled with his support for the pro-Trump QAnon conspiracy theory, earned him his spiritual sobriquet. "He was like thousands of others that day," Lamberth wrote in Monday's order. "But he stood out to the entire world because of his 'unmistakable outfit.' " The DOJ in its criminal complaint against Chansley described him as having been "dressed in horns, a bearskin headdress, red, white and blue face paint, shirtless, and tan pants," and carrying "a spear, approximately 6 feet in length, with an American flag tied just below the blade."
"Google is a monopolist," judge says in ruling against tech titan 2024-08-05 22:03:00+00:00 - Google's ubiquitous search engine illegally exploits its preeminence to crush rivals and put a lid on innovation, a federal judge found on Monday in a ruling that deals a serious blow to the Alphabet-owned platform and delivers a major win for the Justice Department as it looks to strengthen high-tech industry competition. "This victory against Google is a historic win for the American people," said Attorney General Merrick Garland. "No company — no matter how large or influential — is above the law. The Justice Department will continue to vigorously enforce our antitrust laws." In 2021, Google paid roughly $26 billion to Apple and other partners to ensure its search engine would be the default on internet browsers, stifling competition and ensuring Google's dominance, Judge Amit Mehta in Washington found. "After having carefully considered and weighed the witness and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," Mehta wrote in the widely anticipated ruling. The decision comes almost a year after the government and Google faced off in court, marking the nation's biggest antitrust showdown in more than 20 years. Antitrust enforcers had contended Google illegally held a monopoly over online search and related advertising by paying billions over decades to Apple, Samsung and others for the top spot on smartphones and web browsers. Google plans to appeal the decision, a spokesperson stated. The company also derided the ruling, saying it "recognizes that Google offers the best search engine, but concludes that we shouldn't be allowed to make it easily available." Google has "continued to innovate in search," with both Apple and Mozilla finding its search quality superior to rivals, the spokesperson added in an email. The 10-week trial featured testimony by top executives at Apple, Google and Microsoft and reams of evidence. Mehta's ruling comes three months after closing arguments were made in early May. The Justice Department filed its suit against Google almost four years ago during former President Donald Trump's time in the White House, and its efforts to subdue Big Tech's power have only escalated under President Joe Biden. — The Associated Press contributed to this report.
As Debby hits Florida, Americans are still moving to severe weather states 2024-08-05 22:02:00+00:00 - Neither the threat of wildfires nor catastrophic flooding have kept thousands of Americans from migrating to locations in Texas and Florida where extreme weather-related disasters are causing increasing damage year after year. Between July 2022 and July 2023, nearly 69,000 people bought homes in frequent-flood counties in the Sunshine State — including Brevard, Manatee and Lee — according to a new analysis from Redfin. Another roughly 24,000 Americans became new residents in the heaviest flood-risk areas of Texas during that same time period — including in Brazoria and Fort Bend counties — the online real estate brokerage said. The inflow of new residents is happening as former residents are fleeing. "Ballooning insurance costs and intensifying natural disasters are driving thousands of Americans out of risky areas, but those people are quickly being replaced by other people for whom climate change isn't the top concern," Redfin Senior Economist Elijah de la Campa said in the report. Part-time paradise at a steep price Depending on where they move in the state, new residents in danger-prone areas in Florida should expect to find themselves in the path of a hurricane or other types of severe storms. Most recently, Hurricane Debby, the fourth-named storm of the 2024 Atlantic hurricane season, made landfall on Monday near Steinhatchee, a tiny community in northern Florida with less than 1,000 residents. The hurricane so far has left nearly 300,000 Floridians without power, before being downgraded to a tropical storm. Moving to Florida and Texas will also likely mean higher homeowners insurance for new residents, as natural disasters have caused insurance companies to raise annual rates for coverage. Homeowners insurance rates have climbed 15% and 36% in Florida and Texas, respectively, between 2022 and 2023, according to data from S&P Global. One resident in Orlando, Florida, told CBS News in June that his home insurance grew to $6,000 from $1,500 a year for a 2024 policy. Asked by clients how much they will pay for homeowners insurance in Florida, Rafael Corrales, a Redfin real estate agent based in Miami, said he tells prospective homebuyers that it all depends on how close they want to be to the coast. "If you're looking to buy a home in Florida, you should know that you can't be close to the water without being in a flood zone," Corrales said in a statement. "If you're within three miles of the coastline, Mother Nature is going to pay you a visit," he said, adding, "That's the price you pay for living in paradise." From one wildfire state to another Counties with a high risk of wildfires also saw an influx in new residents, with 63,365 more people entering high-fire-risk states in 2023 than the number of those leaving, according to Redfin. Leading the trend is Texas. About 35,000 new residents migrated into wildfire-endangered areas of Texas — including Grayson, Hunt, Midland, Parker and Wise counties, the Redfin analysis shows. That contrasts with the approximately 17,357 Americans who have fled wildfire-prone counties in California — including Lassen, Solano and Napa. The exodus of California residents marks a reversal from 2022, indicating that people may be growing more responsive to fire risk in the Golden State. Texas has large swaths of undeveloped land that's near developed land, making some parts of the state especially vulnerable to wildfires, Redfin noted. The Lone Star State had the second-largest number of wildfires last year — 7,102 — second only to California's 7,364, Redfin said. One reason for the migration from one high-fire-risk area to another, according to the report, is cost of living. "For a lot of Americans, things like cost of living and proximity to family take precedence over catastrophe risk, which can feel less immediate and more abstract," Redfin's de la Campa said. "But the cost-benefit calculus seems to be shifting in places like California and Florida, where skyrocketing home insurance costs and an uptick in high-profile disasters have had a tangible impact on residents and made national news."
AI won't kill your computer science degree, professors say 2024-08-05 21:36:02+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Thanks for signing up! Go to newsletter preferences Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Getting a computer science degree used to be a stable path for any college student looking to secure a tech job right after graduation. But Big Tech layoffs and waning job vacancies have cast a gloom over the entire sector. And if that wasn't enough, computer science majors don't just have to compete amongst themselves, they need to watch out for AI too. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. With the proliferation of AI tools like GitHub Copilot, tech companies may not need to hire as many software engineers as before since leaner teams can reasonably complete the same amount of code. "As an industry, it's going to shrink, and only people who really understand what they're doing are going to survive," Aditya Swami, who heads product development efforts at Singaporean venture capital firm Hatcher+, told Business Insider in July. Advertisement Students thinking of switching majors in the face of the AI revolution may want to hold their horses. Computer science professors that BI spoke to said that earning a degree in the field is just as, if not more, valuable in the age of AI. AI has made computer science more, not less, important "The AI wave is actually driving demand for computing professionals in general, because maturing AI is transformative and needs to be integrated into many facets of life," said Kan Min Yen, a National University of Singapore computer science professor. Related stories This, Kan said, is because computer science isn't so much about coding as it is an approach to solving problems. He added that AI at its essence is just another tool that software engineers can use in their work. "The proper development and use of AI still requires fundamental knowledge of software engineering, data management, and security, all tenets of a holistic computing education," Kan said. Advertisement David Malan, a computer science professor at Harvard, told BI that AI won't displace software engineers in the near term and would instead amplify their productivity. "Consider just how many more features they can implement, how many more bugs they can fix, if they have a virtual assistant by their side," Malan said. And concerns over AI's impact on tech jobs might also be overblown since most companies aren't just looking for code monkeys to churn out software. "Although AI enhances efficiency and allows people to do more with less, writing code is just a part of a software engineer's role," said Adrian Goh, cofounder of NodeFlair, a job board for tech professionals in Asia. Advertisement "Engineers also need to understand requirements from designers, project managers, and business teams, translating those requirements into functional code — tasks that require a lot of context and nuanced understanding," he added. The rules of the game haven't changed with AI When asked if computer science graduates should start building a niche for themselves in the job hunt by studying other subjects like finance and law, Malan disagreed. "No, the world is only becoming more technological and will still need skilled and educated humans to steer it," he said. "Odds are AI will impact finance and law as well." Instead, Malan suggested that students embrace lifelong learning while not neglecting the tried-and-tested approach of working on their own projects. Advertisement "Having a portfolio of projects under one's belt can certainly help, insofar as you can draw on those experiences in applications and interviews to paint a picture of how you think and solve problems," he added. Besides focusing on the technical aspects of the job, Kan said that students shouldn't forget about their soft skills as well. Software engineering as a profession, he added, is really a team sport that prizes communication, coordination, and collaboration. "Computer science is an evergreen profession, as it is not about the tools but more about the mindset and product," Kan said. Advertisement "We don't define the worth of a carpenter by her tools or a chef by his knives, but by the furniture or dishes they create. It is the same with a computer science-trained professional using tools such as AI."
Why JD Vance's plan to follow Kamala Harris and her VP pick on their swing-state tour is a big gamble 2024-08-05 21:27:53+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Thanks for signing up! Go to newsletter preferences Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Vice President Kamala Harris is just hours away from embarking on a swing-state tour with her yet-to-be announced running mate, an effort that is poised to be a major turning point for Democratic ticket. But if Ohio Sen. JD Vance, the GOP vice-presidential nominee, has his way, Harris' time in the spotlight with her vice presidential pick won't be an easy experience. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Vance plans to follow Harris for three days and across four swing states as the presumptive Democratic nominee campaigns with her running mate, according to Politico. The rollout is especially important for Harris as she became the party's standard-bearer less than a month ago following President Joe Biden's exit from the presidential race. The Ohioan is set to trail Harris in Philadelphia; Detroit; Eau Claire, Wisconsin; and Raleigh, North Carolina. And while Vance won't be headlining rallies, he'll be holding media appearances in the cities alongside voters critical of the Biden-Harris administration. Advertisement At first glance, Vance's trip may not seem like a high-stakes effort. But it's a gamble. Republicans want to blunt Harris' momentum In recent months, former President Donald Trump had been leading Biden in most major national polls. And Vance's vice presidential selection was seemingly aimed not at drawing in swing voters — who had been souring on Biden — but on firming up the Republican base. But Biden's withdrawal from the race and Harris' ability to quickly rally the party around her caught the GOP by surprise. And it sapped any real bump that could have resulted from last month's Republican National Convention. Advertisement In recent days, Harris and Trump have been locked in a close race in national and swing-state polls, with the vice president pulling ahead in some of the surveys. Enter Vance, who wants to halt any sort of sustained momentum for Harris as she stumps with her eventual vice presidential pick. Related stories When Harris appears in key battlegrounds this week, Vance will be there to attack the Democratic ticket on local news and bring out conservative voters to sharpen criticism of Biden's record on issues like the economy and immigration. The senator is seemingly aiming to get ahead of the news cycle to blunt a potential Democratic vice presidential honeymoon period. Vance's effort could make him even more unpopular Since joining the GOP ticket last month, Vance's rollout has been a rocky one. Advertisement Vance already had a national profile due to his best-selling 2016 memoir "Hillbilly Elegy." But before Vance was elected to office in 2022, he made a raft of controversial statements, and during one notable interview, he deemed some Democratic Party leaders to be "childless cat ladies" who didn't have a stake in the country's future. Vance's past remarks and MAGA-aligned views on issues like Ukraine (he opposes US funding for the conflict) haven't been a hit with voters. He boasted a minus-5-point favorability rating after the GOP convention. Last month, CNN reported that Vance had a double-digit unfavorable rating with voters in a group of Midwestern states that included his native Ohio. Harris will use her tour to blitz battleground states and introduce her running mate to voters. Megan Varner/Getty Images So Vance's plan to lay into Harris and her running mate will be a tricky balancing act. He doesn't have the highest standing with voters right now, and if Harris taps either Pennsylvania Gov. Josh Shapiro or Minnesota Gov. Tim Walz as her running mate, she'll have an executive by her side with real appeal among working-class voters. Vance may struggle to define Harris' views Vance will be looking to draw attention to the GOP ticket when Americans will naturally want to learn more about Harris' running mate. Advertisement It'll be a huge fight for attention during a time when Harris could receive another polling bump based on the selection. Republicans have sought to depict Harris as too liberal for the country and have pointed to her San Francisco Bay Area roots to make their case. But that argument thus far has not proven to be effective with voters. A vice presidential pick like Shapiro or Walz — who are both seen as mainstream Democratic choices — could throw cold water on some of the attacks over Harris' ideology. Advertisement Vance will surely hammer Harris over her past support for more liberal proposals on healthcare during her 2020 presidential campaign. But Harris now has a record as part of the administration, and she can point to populist achievements like capping the cost of insulin at $35 per month for many Americans on Medicare. Some voters will applaud Vance's shadow tour of Harris' vice presidential rollout, while others will view it as a stunt. Either way, Vance's itinerary shows that Democrats have all the momentum right now, and Republicans are doing whatever they can to stop it.
Maine denies initial request of Bucksport-area owner to give up dams 2024-08-05 21:21:46+00:00 - State environmental officials on July 30 denied petitions from corporate owners of three Bucksport-area dams to forfeit ownership. It was the second time within a week that the state Department of Environmental Protection identified deficiencies in the applications from dam owners Bucksport Mill, LLC and parent company AIM Demolition USA LLC, which filed to forfeit their dams on Alamoosook Lake, Silver Lake and Toddy Pond in early July. The companies’ initial petitions were denied on July 23 for failing to properly describe the location of the dams and failing to notify the required stakeholders. Later that week they submitted some of the supplemental information the DEP requested, but continued notification lapses and missing dam condition reports led to the second denial. Residents and local officials were shocked when the dam owners announced their forfeiture intentions. News that the companies were seeking to give up ownership was announced in a public notice in the Bangor Daily News in early July after months of questions on what would happen to the structures, which hold back water on Silver Lake and Alamoosook Lake. Bucksport Mill, a subsidiary of Canadian firm American Iron and Metal, had been looking for an owner for the structures for months. Critics have said that the companies did not appropriately notify local stakeholders of their petitions and improperly described the state-mandated process of forfeiting a dam, causing unnecessary fear among residents that the dams’ waters would be released far sooner than the legal process permits. Residents rely on the dams to maintain the artificial water levels in the impoundments that they have built their homes around, waters that also support a U.S. Fish and Wildlife Service fish hatchery and Bucksport’s municipal drinking water supply. The denial shows that the department is taking AIM’s requests to relinquish the dams seriously, Bucksport Town Manager Susan Lessard told The Maine Monitor. In addition to their importance to the communities, all three are classified as “high” risk, meaning human lives are in danger if the dams fail. “The petition was deficient in numerous ways and DEP is ensuring that all required information and steps are being supplied and followed,” said Lessard, who is also chair of the citizen board that oversees the DEP. Both companies now have until Aug. 11 to fully notify local stakeholders and submit reports on the dams’ conditions. Otherwise they will have to restart the process and renotify all residents, municipalities and other local entities. Neither an AIM official nor attorney listed on AIM’s petition responded to requests for comments. What happens if the applications are accepted, however, has never been tested. Some are concerned that the way state law is written could leave area residents or municipalities stuck with the dams and all of their operation and maintenance costs. Uncharted territory Officials for the state agencies mentioned in the law overseeing dam forfeiture could not recall a time in the law’s more than two-decade history that the process was followed all the way through. The most recent requests to relinquish dam ownership both came in 2013. One petition was from the owner of a Lincoln County dam on Clary Lake and another from a small pond dam owner in Waldo County. Both petitions were denied, according to DEP Deputy Commissioner David Madore, and neither owner refiled. The Clary Lake dam was eventually acquired by its namesake’s lake association and the pond dam is privately owned by an individual, according to a federal dam database. Should a petition be accepted by DEP, a state law from 1995 mandates a 180-day consultation period between the dam owner and neighboring lake associations, residents abutting the dammed waterway, and local and state officials to determine whether someone else may want to assume ownership. In the case of AIM’s dams, local pond and lake association members say that this part of the process doesn’t provide the information that an interested owner would need to determine the condition of the dam and the costs to operate and maintain it. Dam owners have to submit recent inspection and maintenance reports to DEP, which AIM has failed to do. But they do not have to provide detailed studies on the long-term future of the dams. “We have no idea what the conditions the dams are in other than a (Maine Emergency Management Agency) report from 2021,” said Marc Restuccia, chair of the Orland Watershed Committee and a member of the Toddy Pond Association. “AIM has not released any kind of engineering information, nor any kind of costs of what they’ve done to upkeep it. So we really have a very vague idea.” There’s also the liability that the new dam owner would assume, requiring steep insurance costs that could be tens of thousands of dollars per year, according to other lake associations Restuccia and Toddy Pond contacted. If costs prove to be restrictive and a new local owner isn’t found, there’s a review process that tasks three Maine agencies to each take up to 60 days to determine a dam’s maintenance costs and public value. After review, the agency can either take ownership of the dam or notify the next agency to assess the dam. The Department of Inland Fisheries and Wildlife is first on that list. According to state law, the department would have to judge the costs of dam maintenance and the value to fisheries and wildlife of either maintaining the dam or releasing its water. Although the department owns 82 dams, it has never taken over one that has been forfeited under this law. “In the 26 years that I have been at the department, and in talking with those that have been here longer than I have, (nobody can) recall an instance of us taking ownership of a dam through this process,” said Mark Latti, the department’s director of communications. Latti said the department would look at the habitat upstream and downstream of the dam; identifying any unique features or species. Then it would consider whether lowering the water level behind the dam would harm that habitat; like leaving loon nests “high and dry.” If those features would benefit from leaving the dam in place, then the department might take over and maintain water levels. If not, then the Department of Agriculture, Conservation and Forestry does a similar review — this time focusing on public recreation and conservation value. The Maine Emergency Management Agency takes the last bite of the apple if the other two agencies pass. Unlike DACF and DIFW, however, MEMA doesn’t own any dams, nor does it have specified funds for dam management, officials said. Nevertheless, as the law is written MEMA could acquire the dam if there is a public safety component that needs to be addressed — like an imminent risk of dam failure. Only after this review process, if no new owner has been found, could the department order the owner to release the dam’s water in the least-impactful way. Based on what the dams support on each waterway — like a drinking water supply, community property values, and a fish hatchery — Lessard seemed hopeful that they would be ascribed some sort of public good should the quest for a new owner fail. Lessard and officials from neighboring Orland, Surry, Penobscot and the lake associations all met earlier this week to coordinate their efforts ensuring that all residents stay apprised of any developments and lowering water levels is ultimately avoided. Tad Van Leer, president of the Alamoosook Lake Association, left the meeting feeling hopeful under Lessard’s leadership, in spite of the frustration he’s felt with the situation. “There’s no method of remediation or anything else, and this whole thing has to be solved by the Maine legislature” Van Leer said. “I’m real comfortable having (Lessard) lead the five towns that are most affected by this. She’s smart. She’s connected. And if anyone can do this, it’s going to be her.” ___ This story was originally published by The Maine Monitor and distributed through a partnership with The Associated Press.
There's a $30 billion reason the Google antitrust ruling will have the search giant very worried right now 2024-08-05 21:15:28+00:00 - Google projected it could lose $30 billion if it lost its default spot on Apple devices. A federal judge ruled that Google's agreements with Apple and others "have anticompetitive effects." A breakup with Apple is just one potential remedy. Google said it plans to appeal. 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! Go to newsletter preferences 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 by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Google's agreements with Apple and other companies to be their default search engine have violated antitrust law, a federal judge ruled on Monday. "Google is a monopolist," wrote US District Judge Amit P. Mehta in the ruling, "and it has acted as one to maintain its monopoly." The Department of Justice's case centered on Google's payments to other companies, like Apple and Samsung, to give its search engine prominence on their devices. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Nokia, Bounteous x Accolite Collaborate for Faster Apps - Nokia (NYSE:NOK) 2024-08-05 21:15:00+00:00 - Nokia Corporation NOK has forged a strategic agreement with Bounteous x Accolite to leverage its Network as Code platform to explore and develop innovative applications in sectors such as health care, utilities and gaming. The collaboration aims to harness the advanced capabilities of 5G networks. The Network as Code platform with developer portal brings together operators, systems integrators, software developers and hyperscalers globally into a unified ecosystem using technical standards produced through industry initiatives such as the GSMA Open Gateway initiative and the Linux Foundation Camara. This unified platform is designed to simplify network complexities and offer developer-friendly interfaces, facilitating seamless application deployment across both public and private networks. The Code platform is set to offer Bounteous x Accolite developers APIs for tapping into 5G network capabilities such as quality of service on demand, device location precision and network slicing, as well as 4G capabilities. Post-deployment, the developers of this global digital transformation consultancy services provider will get access to a range of Nokia's tools, including software development kits, network API documentation and a simulation and testing "sandbox" to create software code and code "snippets" for building applications for its customers. Initially, the collaboration will focus on healthcare applications, such as improving emergency response times by enabling real-time tracking of ambulance locations, thereby enhancing coordination between patients and hospitals. This collaborative effort between Nokia and Bounteous x Accolite is anticipated to drive demand for the former's products and services, potentially boosting its revenue streams. Additionally, it is expected to strengthen Nokia's footprint within Bounteous x Accolite's extensive network infrastructure, reaffirming the former's commitment to advancing global digital connectivity. Nokia currently has 319 commercial 5G deals with communications service providers globally. The 5G portfolio is increasingly gaining traction among enterprise customers. The company's expertise in mission-critical networks is well-established, with deployments of more than 2,600 leading enterprise customers in the transportation, energy, large enterprise, manufacturing, webscale and public sector segments worldwide. Shares of Nokia have lost 1.3% over the past year against the industry's growth of 32%. Image Source: Zacks Investment Research Zacks Rank and Key Picks Nokia currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry have been discussed below. Arista Networks, Inc., sporting a Zacks Rank of 1 (Strong Buy), supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%. Telephone and Data Systems, Inc. provides wireless products and services, cable and wireline broadband, TV and voice services to approximately 6 million customers in Chicago. It currently holds a Zacks Rank of 2 (Buy) at present. In the last reported quarter, TDS delivered an earnings surprise of 18.75%. Motorola Solutions, Inc. provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank 2. It delivered a trailing four-quarter average earnings surprise of 8.06% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 7.64%. To read this article on Zacks.com click here.
CSX profit slipped as the railroad scrambled to respond to Baltimore bridge collapse 2024-08-05 21:08:01+00:00 - CSX railroad’s second-quarter profit slipped 2% — even though the volume of its shipments was up by the same rate — as it scrambled to respond to the Baltimore bridge collapse in March that disrupted coal exports. CSX said Monday that it earned $963 million, or 49 cents per share, in the second quarter. That’s down from last year’s $984 million, or 49 cents per share. But the results beat the 48 cents per share that analysts surveyed by FactSet Research predicted. “I am proud of our railroad’s performance, including our team’s effective response to the disruptions at the Port of Baltimore,” CSX CEO Joe Hinrichs said. Baltimore is the nation’s No. 2 coal export port, so the bridge collapse that closed the port caused significant disruptions. But CSX and its competitor in the east, Norfolk Southern, quickly worked to reroute shipments to other ports. The railroad’s revenue was flat at $3.7 billion, which was slightly ahead of the Wall Street predictions. Expenses were slightly higher at $2.25 billion as labor costs crept up again. CSX predicts that volume and revenue will both be up by low-to-mid single digits in the second half of the year, but Hinrichs said the economy does appear more fragile than it was earlier this year. “I think there is just a little more uncertainty about where the economy really is,” Hinrichs said. Jacksonville, Florida-based CSX is one of the nation’s largest railroads serving the eastern United States. Its shares rose about 3% in extended trading after the report.
What's in Store for These 3 MedTech Stocks in Q2 Earnings? - Henry Schein (NASDAQ:HSIC), Baxter Intl (NYSE:BAX) 2024-08-05 20:57:00+00:00 - Medical sector players that have reported second-quarter results so far witnessed strong top and bottom-line improvements on both sequential as well as year-over-year basis, driven by higher demand for medical products and services and favorable pricing strategies. These factors largely offset the burden of increased costs and interest expenses stemming from worldwide geopolitical issues and healthcare labor shortages. Going by the latest Earnings Preview report, within the Medical sector, 49.2% of the companies, constituting 61% of the sector's market capitalization, reported earnings till Jul 31. Of these, 82.8% beat on earnings, while 79.2% beat on revenues. The bottom line rose 31% year over year on 5.8% higher revenues. Overall, second-quarter earnings of the Medical sector are expected to improve 15.7% on 8.1% growth in revenues. This compares with the first-quarter earnings decline of 24% on revenue growth of 6.8%. Some major industry players like Baxter International BAX, Henry Schein HSIC and IDEXX Laboratories IDXX are set to report their quarterly results tomorrow. Factors Driving MedTechs This Earnings Season Replicating the broader Medical sector's trend, MedTech or the Zacks-defined Medical Products companies' collective business growth in the second quarter is likely to have stabilized. The industry has been experiencing rapid adoption of generative Artificial Intelligence (genAI) and digital therapies, which market observers predict will take the healthcare business by storm. Macro trends that have set the stage for even more innovation and investment in this space are an aging population, growing healthcare awareness and increasing access to better health options. Favorable impacts from these are expected to be seen in the second-quarter results. However, the industry has been grappling with issues in the form of staffing shortages and a significant surge in medical supply expenses. In addition, medical procedure rates and demand for the company's products continue to fluctuate as the medical system rebalances its infrastructure and resources in a post-COVID-19 market. These have been putting significant pressure on the margins of medical device companies. Further, the worsening geopolitical environment leading to supply chain bottlenecks has resulted in high freight and raw material costs. Also, diagnostic testing companies have been witnessing a severe year-over-year decline in testing demand against strong demand in the year-ago period for COVID-19 testing products. MedTech Stocks to Watch Baxter: Sustained demand and the positive impact of pricing are likely to have aided second-quarter sales of the Medical Products and Therapies segment. Infusion Therapies and Technologies sales are likely to have benefited from the IV Solutions portfolio in the international market, as well as the solid performance of the infusion system portfolio. Moreover, recent FDA approvals for Novum IQ volume infusion pump and Dose IQ Safety Software are likely to have accelerated growth for the segment. The Zacks Consensus Estimate for Baxter's second-quarter 2024 revenues is pegged at $3.74 billion, indicating an improvement of 1% from the prior-year quarter's reported figure. However, the consensus mark for earnings is pinned at 66 cents per share, implying a 20% year-over-year improvement. During the quarter, the company's shares declined 23.2% compared with the industry's 3.3% decline. Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating on earnings. However, this is not the case here, as you can see below. BAX has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) at present. Baxter International Inc. Price and EPS Surprise Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote Henry Schein: The company is expected to sustain the strong recovery momentum from last year's cybersecurity incident, which mainly affected the dental and medical distribution businesses in North America and Europe. There may have been a steady improvement in dental merchandise sales, including in most international markets, aiding overall revenues in the second quarter of 2024. Dental equipment sales are also likely to have increased in North America. In addition, Henry Schein's THRIVE Signature program may have contributed to overall sales growth, driven by an increase in memberships. The Zacks Consensus Estimate for HSIC's second-quarter 2024 revenues is pegged at $3.28 billion. This suggests an increase of 5.9% from the year-ago reported figure. The Zacks Consensus Estimate for its second-quarter 2024 EPS stands at $1.27, which indicates a year-over-year fall of 3.1%. During the second quarter, the stock plunged 13.7% compared with the industry's 5.8% decline. HSIC has an Earnings ESP of +1.20% and a Zacks Rank #4 at present. Henry Schein, Inc. Price and EPS Surprise Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote IDEXX: In the second quarter, IDXX's Companion Animal Group ("CAG") Diagnostics recurring revenues are expected to have maintained the trend of robust organic gains, contributing significantly to the company's overall revenue growth. The growth is likely to have been supported by new business gains, sustained high customer retention rates and net price realization in the United States. The company's international performance is also likely to have been fueled by strong execution, demonstrated through continued growth in premium instrument placements. The Zacks Consensus Estimate for revenues is pegged at $1 billion, which suggests an increase of 6.2% from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pegged at $2.87 per share, which implies a 7.5% rise from the year-ago reported figure. In the second quarter, shares of the company lost 8.5% compared with the industry's 1.6% drop. IDXX has an Earnings ESP of -0.76% and a Zacks Rank #4 at present.
Former Trump campaign lawyer Jenna Ellis cooperating in Arizona fake electors prosecution 2024-08-05 20:53:00+00:00 - Jenna Ellis, right, and Sydney Powell, attorneys for President Donald Trump, conduct a news conference at the Republican National Committee on lawsuits regarding the outcome of the 2020 presidential election on Thursday, November 19, 2020. Former Trump campaign attorney Jenna Ellis has agreed to cooperate with prosecutors in Arizona in their criminal cases against so-called fake electors and others who tried to reverse the 2020 election loss of former President Donald Trump, state Attorney General Kris Mayes said Monday. Prosecutors are dropping the nine felony counts that Ellis had faced — including fraud, forgery and conspiracy — in exchange for her cooperation against the remaining 17 defendants in the case. "This agreement represents a significant step forward in our case," Mayes said in a statement. "I am grateful to Ms. Ellis for her cooperation with our investigation and prosecution." "Her insights are invaluable and will greatly aid the State in proving its case in court," the attorney general said. "As I stated when the initial charges were announced, I will not allow American democracy to be undermined – it is far too important. Today's announcement is a win for the rule of law." The remaining defendants in the case include disgraced lawyer Rudy Giuliani, the former New York City mayor who worked closely with Ellis after the 2020 election in the doomed, botched effort to undo Trump's loss to President Joe Biden. Also charged are former Trump White House chief of staff Mark Meadows, the lawyers John Eastman, Boris Epshteyn and Christina Bobb, and Mike Roman, who had led Election Day operations for the Trump campaign in 2020. The remaining defendants are Kelli Ward, Tyler Bowyer, Nancy Cottle, Jacob Hoffman, Anthony Kern, James Lamon, Robert Montgomery, Samuel Moorhead, Lorraine Pellegrino, Gregory Safsten, and Michael Ward. Ellis posted a statement on X from her lawyers, Matt Brown and Matt Melito, after her cooperation became public. "We are grateful the Arizona Attorney General's Office completely dismissed the indictment against Jenna Ellis as she was not involved in the so-called 'fake elector' scheme," the statement said. "Jenna was originally told she was not a target and her cooperation is her continued willingness to tell the truth." The Arizona indictment alleges that Ellis and other Trump allies were part of a scheme to submit fake electors to the Electoral College in 2020 who would cast their ballots for Trump, despite Biden having won the state's popular vote. Ellis in October 2023 pleaded guilty to a separate criminal charge in the Georgia election interference case, which charges Trump and more than a dozen of his allies with crimes related to trying to overturn his loss to Biden in that state. A Georgia appeals court in June put the case against Trump and eight of his co-defendants on hold while it considers Trump's bid to disqualify Fulton County District Attorney Fani Willis from overseeing his prosecution. After Ellis pleaded guilty in Georgia, officials in Colorado banned Ellis from practicing law in the state for three years. Giuliani in July was disbarred in New York, and his license remains under review in Washington, D.C., as a result of the false claims of widespread ballot fraud that he made with Ellis after the 2020 election.
Why Apple could be a loser in Google's antitrust defeat 2024-08-05 20:44:59+00:00 - A federal judge ruled against Google in a major antitrust case. Apple could be a loser, too. That's because a big part of the case was about exclusive search deals Google does with Apple and other platform owners. Google's Apple deal is worth a lot of money — $20 billion in 2022 alone. What happens if it goes away, or has to shrink? 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! Go to newsletter preferences 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 by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement A federal judge just ruled against Google in a major antitrust case. Apple could be caught in the blowback. That's because a big part of the government's case against Google — that it has an illegal monopoly in search — focuses on deals Google makes with platforms and device-makers to be their default search engine. And the biggest one of those is the one Apple has with Google, where Google pays Apple tens of billions of dollars a year — $20 billion in 2022 alone — to have pole position on the iPhone. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
X will close its headquarters after Elon Musk trashed San Francisco — but he's not done with California yet 2024-08-05 20:43:11+00:00 - Twitter — now called X — is closing its San Francisco office, CEO Linda Yaccarino says in a memo. Employees will stay in the Bay Area, moving to San Jose and Palo Alto, a report says. A New York Times reporter first posted about the news — on X. 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! Go to newsletter preferences 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 by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Elon Musk last month said he was sick of "dodging gangs of violent drug addicts" just to get into X's San Francisco headquarters. Now, he's closing it for good. A New York Times reporter posted — on X — that the company would close its San Francisco headquarters "over the next few weeks." CEO Linda Yaccarino wrote in an email to X employees that workers would move to offices in San Jose. X will also open a new office in Palo Alto where it will share space with xAI, the Times reported. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
31-year-old Harvard grad just won a gold medal for the U.S. in the Olympics—in a sport she learned 6 years ago 2024-08-05 20:31:00+00:00 - Gold medalist Kristen Faulkner of Team United States poses on the podium during the Women's Road Race on day nine of the Olympic Games Paris 2024 at Trocadero on August 04, 2024 in Paris, France. Kristen Faulkner ended a 40-year-drought for the U.S. in the Paris Olympics — in a sport she picked up for fun six years ago. On Sunday, the 31-year-old became the first American rider to win gold in the women's road race since Connie Carpenter did so in the 1984 Los Angeles games. Faulkner grew up hiking and rowing in Homer, Alaska, a small city on the Kenai Peninsula, and joined the women's crew team at Harvard University, where she graduated in 2016. She didn't start competitive cycling until 2017 when she moved to New York to work as a venture capitalist. "I still needed that outdoors fix that was such a big part of my life," the Olympian told NBC News in a recent interview. Faulkner wasn't even supposed to compete at the 2024 Paris Olympics but was called up to Team USA in early July after Taylor Knibb resigned her spot in the road race to focus on the Olympic time trial and triathlon events. "This is a dream come true," she told reporters after the race. "I'm still looking at that finish line sign wondering how my name got there." Quitting a career in finance to be a full-time athlete Faulkner signed up for an introductory clinic for women's cycling in New York City's Central Park and by 2020, she was racing for Team TIBCO-Silicon Valley Bank, then the longest-running professional women's cycling team in North America. In early 2021, she quit venture capital to commit to the sport full-time — a move that she assumed would be a brief detour from her career. "I was like, 'This will be a two, three-year thing,'" she told the Wall Street Journal. Instead, Faulkner, who now rides for the American Continental Women Team EF-Oatly-Cannondale, said she's developed an even deeper passion for the sport: the competitiveness, the camaraderie with her teammates, even the constant grind of training. Faulkner, who now lives in San Francisco, rides around 50 miles a day. She told the Associated Press that her career as a venture capitalist has been instrumental in her success as a professional athlete. "I learned how to calculate risks and assess risks," she said. "In a race I take that mindset with me: What is the risk-reward ratio? Knowing when to go all in." Overcoming a career-threatening injury to win gold at the Olympics
U.S. markets close sharply lower — but some economists say economy looks stable 2024-08-05 20:11:00+00:00 - Stocks saw a dramatic pullback — their third in as many trading days — as a confluence of factors including ongoing fears of an economic slowdown and repositioning on Wall Street sent shares tumbling. The Dow Jones Industrial Average dropped 1,034 points, or 2.6%. The Nasdaq Composite lost 3.4%, and the S&P 500 slid 3%. The blue-chip Dow and S&P 500 were on track for their biggest daily losses since September 2022. The day's rout was sparked by a massive sell-off in Japanese stocks. The Nikkei fell 12.4%, its worst day since the 1987 "Black Monday" crash rattled investors around the world. Traders work on the floor of the New York Stock Exchange on Monday in New York City. Spencer Platt / Getty Images The Japanese drawdown, in turn, was partly in response to the worse-than-expected jobs report published Friday that showed U.S. unemployment rising to 4.3% and just 114,000 jobs added in July. Yet, while the jobs report caused some market commentators to argue that the Federal Reserve should have cut rates sooner — it held them steady again at 5.5% last week as it sought to further dampen inflation — other analysts pushed back on that idea. That latter group gained support when the Institute for Supply Management (ISM) published data later Monday showing services businesses were still seeing healthy demand. As soon as that report was published, stocks started erasing some of their earlier losses, while bond purchases, which had surged as investors sought safe-haven assets, faded. Instead, some observers placed some of the blame for the global stock sell-off on the winding down of the so-called "carry trade," which had seen investors borrow money at lower interest rates denominated in Japan's yen currency in order to buy higher-yielding assets elsewhere. The profitability of that trade rapidly drew to a close in recent days, however, after the Bank of Japan signaled its intention to raise interest rates, while the U.S. Federal Reserve said it would soon likely lower them. As a result, the value of the yen soared against the dollar, erasing all the gains the greenback had made this entire year. There were other reasons for the stock retreat. It was led by tech shares, and especially ones concentrated in the bet on artificial intelligence. Nvidia, the leader of the group thanks to its specialized GPU computer chips, and rival Intel both closed down 7%. Microsoft, which has also been at the forefront of large language model (LLM) investments, fell more than 3%. And Google's parent, Alphabet, another firm seeking to pivot to AI, declined almost 5%. Only a month ago, shares in those companies had led much of this year's rally, and the Nasdaq had hit an all-time high. But those were the first to see investors hit the proverbial exits Monday as traders increasingly believe the gains from AI bets will not materialize in the short term. Apple also tanked 5% on the day. Over the weekend, Warren Buffett's Berkshire Hathaway disclosed it had sold almost half its Apple holdings. But analysts say that decision was likely less a vote of no-confidence in the iPhone maker than simply Berkshire and Buffett raising cash in what observers have concluded was an increasingly overbought market. And therein is perhaps the upshot of the sell-off: It was simply time to take profits from a market that had been on a tear all year. “This is the confluence of a very high market that has been soaring and riding on a lot of sentiment and emotion. For several months now, the momentum trade has been the successful trade,” said Michael Farr, CEO of Farr, Miller & Washington, a wealth and investment management firm. “While folks make fundamental arguments that give them comfort, everybody in the back of their minds knows stuff doesn’t go up 30% in six months,” he added. “So, when you’re in a period of huge profits, it’s very easy to take profits. It’s a much easier decision to say I want to take my chips and go home here.”