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George Santos bids adieu to independent congressional bid 2024-04-24 19:16:24+00:00 - Documented liar and alleged fraudster George Santos has ended his independent bid for a House seat that he had little chance of winning, saying he did not want to split the vote with his Republican rival and risk electing a Democrat. Announcing the withdrawal of his candidacy for New York's 1st Congressional District on Tuesday, Santos wrote on X that although he is critical of Republican candidate Nick LaLota's "abysmal record," running against him would "all but guarantee" that the Democratic nominee would take the seat. "I don’t want to split the ticket and be responsible for handing the house to Dems," he wrote. Santos launched his bid for the seat in early March as a Republican. Weeks later, he filed to run as an independent because, as he said, the GOP "continues to lie and swindle its voter base." "I will take my Ultra MAGA/Trump supporting values to the ballot in November as an Independent," he wrote on X at the time. But Santos' effort to frame the demise of his campaign as some sort of altruistic decision in service of the greater conservative agenda is belied by the fact that it seemed to have had little momentum. According to a filing with the Federal Election Commission, his campaign clocked no financial contributions and expenditures in March following his initial announcement. He is also facing a federal fraud trial in September; he has pleaded not guilty to all charges. Still, Santos suggested that his political ambitions remain alive and well. "It’s only goodbye for now, I’ll be back," he wrote Tuesday in his announcement. His star won't fade completely, though — not as long as he continues pumping out Cameo videos for $250 a pop.
Florida man gets 4 years in prison for laundering romance scam proceeds 2024-04-24 19:16:00+00:00 - Romance scams landed a Florida man in prison for four years. Niselio Barros Garcia Jr., 50, of Winter Garden, was sentenced to 48 months in federal court on Tuesday for his role in the fraud network. Garcia worked with four other people – who authorities say are still at large – to scam individuals out of millions and send a large portion of the funds to Nigeria. The four other suspects weren't named. Garcia scammed $2.3 million in funds and had to return $464,923.91 after he pleaded guilty to conspiracy to commit money laundering in the Southern District of Florida. He would collect bank account information, federal prosecutors said, and send the money to criminal associates in Nigeria. Romance scams – and their complexity – have grown in recent years. "Every year, year over year, these numbers get larger and larger," said Supervisory Special Agent David Harding, program manager for the FBI's Economic Crimes Unit, in a 2024 interview designed to bring awareness to romance scams. He said in 2022, more than 19,000 victims lost about $735 million, according to numbers reported to the FBI's Internet Crime Complaint Center. American victims lost more than $1 billion to overseas criminals in 2023, according to an investigation conducted by CBS News. Authorities said the numbers are likely much higher because so many of these crimes go unreported. Some authorities said scams could also be outpacing law enforcement's ability to intervene. A retired police officer who spoke to CBS News said he has heard about victims being turned away by investigators for numerous reasons, including limited sympathy for strangers giving their money away or that they don't see a path to solving a crime that involves people halfway around the world. These crimes can also be difficult to trace. In Garcia's case, he used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria, federal prosecutors said. However, the plea deal "demonstrates the department's continued commitment to prosecuting transnational fraud and those who knowingly facilitate it," said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. "By facilitating the concealment of illicit profits, third-party money launderers enable large-scale transnational fraud schemes. This case underscores the department's commitment to protecting consumers and disrupting the infrastructure that makes these crimes lucrative," Boynton said. Fraud complaints can be reported to the Federal Trade Commission by clicking here.
Now you can put your Botox on Affirm 2024-04-24 19:07:27+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 "Buy now, pay later" company Affirm has identified a new category for growth, according to a new report from Reuters: elective medical procedures like Botox, nose jobs, and even dental treatments. Buy now, pay later options like Klarna and Affirm have become ubiquitous at checkouts on e-commerce retail sites for some time. Klarna even had a Super Bowl ad. But until recently, these companies have largely focused on retail purchases. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Related stories Now, BNPL is moving into the medical arena — a first for a major buy now, pay later company, according to the Reuters report: Over the past year, Affirm has more than doubled the number of elective medical merchants on its network, reaching around 130 at of the end of 2023. The San Francisco-based company is hoping to tap growing consumer demand for financing for cosmetic treatments, dental services, medical devices and veterinary procedures. "A lot of these price points are about $2,000 and above, so that suits our installment product ... really well," Pat Suh, Affirm's senior vice president of revenue, said in an interview. On one hand, financing cosmetic procedures is nothing new. A plastic surgeon or dentist may offer their own financing plans, and certainly, people use personal credit cards or other personal loan products for these things. Advertisement BNPL can appeal to people who don't have a credit card, perhaps because they're young and don't have a credit history or have bad credit. This can be a good thing, giving purchasing power to those who wouldn't otherwise have it. But BNPL apps typically don't help people build credit. They don't send positive payment information to the credit bureaus, but if your account goes into collections, it can negatively affect your credit score. They can also trip those same people up. In 2022, a LendingTree report found that 42% of people who had used BNPL had at least one late payment. And those late payment fees can start to add up. The services can also lead young people down a bad road, encouraging overspending with the allure of a seemingly low monthly payment. Business Insider reported recently how BNPL loans grew by 10 times between 2019 and 2023, creating a significant amount of "phantom debt" in the US economy since it's not typically reported to credit bureaus. I know: It can be hard to sympathize with someone who's using lip filler they can't afford by putting it on Affirm. But go back to what it's actually being used for: "cosmetic treatments, dental services, medical devices, and veterinary procedures." Advertisement That means it's not just lip filler and Botox. People who might need a root canal or a crown for a chipped tooth — the kind of necessary care that can be very expensive even with dental insurance — might be using Affirm. Or veterinary bills: any pet owner knows the horrible choice they face if their dog or cat needs an expensive surgery.
Trump Media asks lawmakers to investigate possible "unlawful trading activity" in its DJT stock 2024-04-24 19:04:00+00:00 - Trump Media & Technology Group is asking lawmakers to investigate what it claims is "potential manipulation" of its stock, which trades under the ticker DJT – the same as the initials of former President Donald Trump. In an April 23 letter, Trump Media CEO Devin Nunes, a former Republican congressman from California, asked several House committees to "open an investigation of anomalous trading of DJT." The committees Nunes asked to look into the issue are the House Committee on the Judiciary; its Committee on Financial Services; its Committee on Ways and Means; and the Committee on Oversight and Reform. Nunes has previously alleged that the media company's stock has been targeted by unscrupulous investors since it went public in late March. Earlier this month, he asked the Nasdaq stock exchange, where DJT trades, for help in looking into possible incidents of "naked" short selling. That practice is banned in the U.S. because it involves shorting a stock without first borrowing the shares, which can destabilize prices. "'[N]aked' short selling often entails sophisticated market participants profiting at the expense of retail investors," Nunes wrote in his letter to House Republican committee leaders. Trump Media shares have swung wildly since going public last month. After surging to a high of $79.38 per share on March 26, its first day of trading, the stock plunged to as low as $22.55 per share on April 16. The shares have since regained ground, rising $1.38, or 4.2% to $33.95 in Wednesday afternoon trading. What is naked short selling? Short selling occurs when investors borrow shares of a stock they believe will decline in price, and then sell those holdings on the market for cash proceeds. If the stock price tumbles, the trader then purchases the shares at the lower price and returns the stock to the trading firm from which they originally borrowed the shares. That enables the traders to pocket the difference between the borrowed stock price and the sale price. Such trading is legal. But "naked" short selling skips the step where the trader borrows shares of the stock, meaning that the investor sells shares they don't own. Later, they buy the stock to cover their position. Naked shorting can lead to large declines in a target company's stock price, and can also undermine market confidence, according to law firm Kohn, Kohn & Colapinto. Wall Street trading firms Nunes also cited "data made available to us" that he said shows four companies have been responsible for 60% of the "extraordinary volume of DJT shares traded." The companies include well-known Wall Street firms, such as Citadel Securities, a market-making firm founded by billionaire Ken Griffin, and Jane Street Capital. Neither Citadel nor Jane Street returned requests for comment, nor did the other two firms cited by Nunes, VIRTU Americas and G1 Execution Services. Trump Media, whose main asset is the social media platform Truth Social, has prompted comparisons with "meme" stocks like GameStop. These stocks typically attract individual investors based on social media buzz, rather than on business fundamentals relied on by institutional investors, such as profitability and revenue growth. Nunes wrote to the lawmakers that he believes an investigation into naked short selling of DJT's shares is "needed to protect shareholders, including TMTG's retail investors." He added, "It may also shed light on the need for policy changes" such as :requiring brokers to better document their efforts to locate and borrow stock, and stiffening penalties for illegal naked short sellers."
The US is dealing with a rare bifurcation of the economy, and it's raising the odds of recession, Piper Sandler chief economist says 2024-04-24 19:03:43+00:00 - The US economy is facing a rare and difficult bifurcation, says Piper Sandler's head economist. Big companies have withstood or even benefited from high rates, while consumers are feeling the squeeze. The economist forecasts 53% odds of recession but adds that one is needed to bring down inflation. NEW LOOK 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 The US is navigating a "bifurcated" economy that's only been seen twice before, with both times ending in a recession, according to a top economist. Nancy Lazar, Piper Sandler's chief global economist, told Fox Business Network on Wednesday that the current economic backdrop is "very difficult" and "very unusual," and occurred only during the energy crisis in 1978-1979 and the latest Great Recession in 2008. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Survey finds that 60 firms are responsible for half of world’s plastic pollution 2024-04-24 19:01:00+00:00 - Fewer than 60 multinationals are responsible for more than half of the world’s plastic pollution, with five responsible for a quarter of that, based on the findings of a piece of research published on Wednesday. The researchers concluded that for every percentage increase in plastic produced, there was an equivalent increase in plastic pollution in the environment. “Production really is pollution,” says one of the study’s authors, Lisa Erdle, director of science at the non-profit The 5 Gyres Institute. An international team of volunteers collected and surveyed more than 1,870,000 items of plastic waste across 84 countries over five years: the bulk of the rubbish collected was single-use packaging for food, beverage, and tobacco products. Less than half of that plastic litter had discernible branding that could be traced back to the company that produced the packaging; the rest could not be accounted for or taken responsibility for. “This shows very, very, very well the need for transparency and traceability,” says a study author, Patricia Villarrubia-Gómez, a plastic pollution researcher at the Stockholm Resilience Centre. “[We need] to know who is producing what, so they can take responsibility, right?” The branded half of the plastic was the responsibility of just 56 fast-moving consumer goods multinational companies, and a quarter of that was from just five companies. Altria and Philip Morris International made up 2% of the branded plastic litter found, Danone and Nestlé produced 3% of it, PepsiCo was responsible for 5% of the discarded packaging, and 11% of branded plastic waste could be traced to the Coca-Cola company. “The industry likes to put the responsibility on the individual,” says the study’s author, Marcus Eriksen, a plastic pollution expert from The 5 Gyres Institute. “But we’d like to point out that it’s the brands, it’s their choice for the kinds of packaging [they use] and for embracing this throwaway model of delivering their goods. That’s what’s causing the greatest abundance of trash.” The Guardian approached Philip Morris International, Danone, Nestlé, PepsiCo and The Coca-Cola Company. The Coca-Cola Company said: “We care about the impact of every drink we sell and are committed to growing our business in the right way.” It has pledged to make 100% of its packaging recyclable globally by 2025, and to use at least 50% recycled material in packaging by 2030. Nestlé said it has reduced its virgin plastic usage by 14.9% in the last five years, and supports schemes around the world to develop waste collection and recycling schemes. “Since launching our voluntary commitments to address plastic waste five years ago, we have significantly outperformed the market at large in reducing virgin plastic and increasing recyclability, according to the most recent report from the Ellen MacArthur Foundation,” it said. The company also supports the creation of a global legally binding regulation on plastic pollution which is being negotiated this week. However, while many of these companies have taken voluntary measures to improve their impact on plastic pollution, the experts behind the study argue they are not working. Plastic production has doubled since the beginning of 2000 and studies show only 9% of plastic is being recycled. When the team collected data on self-reported yearly plastic packaging production for each of these multinational companies and compared it with the data from their 1,500-plus litter surveys, their statistical analysis showed that every 1% increase in plastic production was directly correlated with approximately a 1% increase in plastic pollution. “Actually seeing this one-to-one increase, I was like, wow,” says a study author, Kathy Willis, a marine socio-ecologist from the Commonwealth Scientific and Industrial Research Organisation in Australia. “Time and time again from our science we see that we really need to be capping how much plastic we are producing.” However, Kartik Chandran, an environmental engineer at Columbia University, who was not involved in the research, said that while this new data was striking, the observation that 1% plastic production was equal to 1% plastic pollution was “a bit unrealistic” and “simplistic”. He said the data did not consider plastic pollution in China, Korea and Japan, nor take into consideration recycling or clean-up initiatives under way. A better analysis could be based on the net plastic flows into plastic production – also accounting for credits from the reuse of plastic materials – and the net plastic load ascribed as plastic pollution. The team behind the study, some of whom are participating in the talks being held in Ottawa this week to discuss a UN Treaty for Plastic Pollution, said their findings emphasised the urgent need for a globally binding treaty focusing on production measures. The talks will run to Monday, and Luis Vayas Valdivieso, the Ecuadorian ambassador to the UK, told the Guardian earlier this week he was hopeful that countries would come together to secure an international legally binding instrument on plastic pollution. “It is very important we are negotiating this treaty now. The world is in a triple crisis of climate change, biodiversity loss and pollution. But while there are agreements in place for the first two, we have no legislation, no global agreement on plastic pollution.”
Designer brands owed millions after Matchesfashion collapse 2024-04-24 18:51:00+00:00 - Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after online fashion site Matchesfashion collapsed owing more than £210m last month. Customers who bought designer items prior to the administration are not able to return items or get a refund, according to a report by administrators published on Wednesday. Matches, founded in 1987 as a boutique in the London suburb of Wimbledon by husband and wife Tom and Ruth Chapman, collapsed on 8 March after it was hit by widespread discounting and softening demand for luxury fashion. Matches was acquired by Mike Ashley’s Frasers in late 2023 for £52m in cash from the private equity firm Apax Partners. Frasers put in £33m to keep it trading. However, after a difficult Christmas, Frasers said it was unwilling to provide further funds and called in administrators from Teneo. The administrators said the retailer’s 541 known unsecured creditors – including customers, landlords and designer clothing suppliers – are owed at least £35.6m, and potentially as much as £100m, but are unlikely to collectively receive more than £800,000, or “less than a penny in the pound”. One Matches customer told the Guardian that she had returned products worth more than £500 in January but, after the administration, was told she would not be refunded. “I have been a very loyal customer to Matchesfashion since it started online, and bought regularly,” she said. “I feel abused! This is not acceptable.” Some suppliers – such as landlords, logistics companies security and IT providers – have been paid to ensure the retailer can continue to trade while administrators attempt to sell off the business. Administrators said they also expected to pay almost £300,000 owed to employees and £1.2m to tax authorities. Swedish label Toteme is the brand owed the most by Matches, according to the administrators report, with a debt of almost £1m. Burberry, Gucci and Max Mara are each owed about £500,000. Well-known British labels are also on the hook. Paul Smith and Samantha Cameron’s Cefinn are both owed more than £100,000 while Anya Hindmarch and Joseph are owed more than £200,000 each. View image in fullscreen Anya Hindmarch, the British luxury accessories brand, is owed more than £200,000 by Matches, according to administrators. Photograph: Anya Hindmarch Administrators said 190 suppliers had claimed ownership of almost £23m of stock and were seeking to retrieve it, but only £3.4m had been returned so far. Matches also owed £173m to Frasers and administrators said that this was unlikely to be repaid in full. Administrators cut 273 jobs last month, more than half of Matches’ workforce, while the chief executive, former Asos boss Nick Beighton, lost his job. Teneo said administrators had received 11 offers for Matches late last month and they were continuing to review bids. It is not clear if Frasers will seek to buy back the company amid a tough luxury market. Wealthy customers have been forced to rein in spending due to higher interest rates on mortgages and loans, and a 32% rise in average prices of luxury fashion since 2019, according to Teneo. Online specialists have been hit particularly hard. Retailer Farfetch agreed a controversial rescue deal with the South Korean e-commerce giant Coupang through a pre-pack administration in January. Richemont’s Yoox Net-a-Porter, which had been lined up to buy Farfetch, is heavily loss-making. On Wednesday, the owner of upmarket department store Harvey Nichols revealed that shareholders had pumped in more than £25m of new funds and made a further £7m available in the past year after it continued to post a loss. The retail group reported a £21.3m loss for the year to 1 April 2023, after a loss of £30.4m a year before, despite a 13% rise in sales to £217m. Debts rose to £82m from £63.4m but bank debt was paid off in favour of loans via shareholder Dickson Poon, the Hong Kong-based entrepreneur.
Google's controversial move to kill the web cookie just got delayed until 2025 2024-04-24 18:03:07+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 Google is delaying its removal of third-party cookies on Chrome — again. The company has delayed rolling out the removal multiple times since announcing the change in January 2020. It cited industry and regulatory pushback as the "significant considerations" behind the delay in a statement Tuesday. "We recognize that there are ongoing challenges related to reconciling divergent feedback from the industry, regulators and developers, and will continue to engage closely with the entire ecosystem," a Google spokesperson said in a statement. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Third-party cookies are small data files stored on a user's device. Companies use cookies to track consumers across websites and target them with ads. They also use the tool to track whether campaigns are working effectively. Advertisement In recent years, Google joined companies like Apple and Mozilla in phasing out cookies to increase consumer privacy protections. Google developed its Privacy Sandbox, a collection of technologies to protect consumers while allowing companies to advertise successfully. But the path to do so hasn't been simple. Google is dependent on ads, and companies use cookies to target consumers and evaluate whether the ads are working. As the owner of the biggest search engine, the tech giant has received backlash from companies for planning to remove the feature because of its impact on advertising. Related stories In January, Google experimented with phasing out cookies for 1% of Chrome users, which is about 30 million people. Various adtech companies said the new technology didn't adequately compensate for lost features from cookies. Advertisement Google has also faced regulatory complications that have prevented it from moving forward with the change. Google can't eliminate third-party cookies in Chrome until the UK's Competition and Markets Authority (CMA) is satisfied with the new technology and approves it as anticompetitive. "It's also critical that the CMA has sufficient time to review all evidence including results from industry tests," a Google spokesperson said. "Which the CMA has asked market participants to provide by the end of June." Previously, the CMA said it was in the process of evaluating the impact of the changes, which it planned to wrap up halfway through 2024. Once it approves the Privacy Sandbox technologies, Google has to wait between 60 to 120 days before it can switch off cookies. "We welcome Google's announcement clarifying the timing of third-party cookie deprecation," a CMA spokesperson told BI. "This will allow time to assess the results of industry tests and resolve remaining issues." Advertisement Google originally said it wanted to eliminate cookies by the end of 2024. The company said it now aims to start phasing out third-party cookies in Chrome in early 2025, hinging on approval from the CMA and the UK's privacy regulator, which is called the Information Commissioner's Office (ICO). The ICO will work with Google and the CMA to ensure that the end of web cookies means beneficial privacy results for web users, Stephen Almond, the executive director of regulatory risk at ICO, told BI. "Consumers benefit when businesses meet the requirements of data protection and competition law," Almond said. Do you have a Google tip? Email the reporter from a non-work at aaltchek@insider.com.
Barbados leader halts £3m payout to UK MP for Drax Hall plantation 2024-04-24 17:53:00+00:00 - The prime minister of Barbados, Mia Mottley, has halted plans for a multi-million-pound payout to the British Conservative MP Richard Drax for the purchase of 53 acres of the Drax Hall plantation, which he owns. As revealed in the Observer last Sunday, the payout plan had angered those involved in the Caribbean reparations movement, who said Drax, the MP for South Dorset, should hand over all or part of the 617-acre plantation to the people of Barbados. In a seven-minute broadcast to the nation released on YouTube on Tuesday, Mottley explained the government U-turn and said she had decided to pause the purchase to allow further discussion. She added: “I understand the concern of many Barbadians who may feel they have been robbed of the opportunity of having an appropriate settlement for reparations that ought to be made as a result of the blood, sweat and tears of Barbadians over centuries. This is not a matter we take lightly.” Trevor Prescod, the MP for St Michael East in Barbados and the lead for reparations on the island, believes his country “should not pay a cent for Drax Hall”. He welcomed Mottley’s announcement but he expressed concern over the word “pause”, saying: “I hope I don’t see a renewal of this commercial relationship with Richard Drax. “I’ve been getting calls from around the world, and I would like to thank the Observer for bringing this to the attention of people in Barbados, the African diaspora and our friends in England who support reparations. People see the relevance of the damage inflicted on African people. We are the people who were described as chattel slaves. Why should we pay those whose family has enslaved us? The taxpayers of Barbados have risen up to defend their money. The Draxes have had enough from us.” View image in fullscreen Tory MP for South Dorset, Richard Drax, inherited the Barbados Drax sugar plantation, developed by his ancestors in the 17th century, in his father’s will. Photograph: Graham Hunt/Alamy Drax, who is worth more than £150m, was left the plantation in his late father’s will in 2017. Their ancestors built the sugar plantation in the mid-17th century and worked it with enslaved people for 200 years. After the abolition of slavery in 1834, the family received more than £4,200 in compensation, a huge sum at the time. The 53-acre site has been selected for the development of 500 lower- and middle-priced houses. Mottley has pledged to build 10,000 homes to meet demand on the island, where there are 20,000 outstanding applications for housing. A senior valuation surveyor said the market value for agricultural land with an alternative use for housing would be about Bds$150,000 (£60,000) per acre. At this price, the 21 hectares could net Drax £3.2m. In October 2022 Drax went to Barbados to meet Mottley. It is understood he was asked to hand over all or a substantial part of Drax Hall plantation as reparations. skip past newsletter promotion Sign up to Cotton Capital Free weekly newsletter A behind the scenes look at the Cotton Capital project, direct to your inbox for 15 weeks Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion In her broadcast, Mottley made it clear she was not happy with the pace at which discussions were proceeding. She said the government was examining its legal options “not only against the owners of Drax plantation, but also all others who have contributed to the conditions of this country being, regrettably, one of the worst examples of modern racism in the Americas”. Sir Hilary Beckles, who is from Barbados and chairs the Caricom Reparations Commission, a Caribbean-wide body, has described Drax Hall as “a crime scene”, a place where, he estimates, 30,000 Africans died in slavery. Drax declined to comment. In the past he has said the role his ancestors played in the slave trade was “deeply, deeply, regrettable, but no one can be held responsible today for what happened many hundreds of years ago”.
Long-Lost Klimt Painting Sells for $37 Million at Auction 2024-04-24 17:37:26.325000+00:00 - “Portrait of Fräulein Lieser,” an enigmatic, long-lost 1917 painting by Gustav Klimt, sold Wednesday for 35 million euros with fees, or about $37 million, at the auction house im Kinsky in Vienna. The unsigned and unfinished work was estimated to sell for between $32 million and $53 million, before the addition of fees. The winning bid was tendered in the room by Patti Wong, the founder of the Hong Kong-based art advisory company, Patti Wong Associates. Wong said she was bidding on behalf of an Asian client. The result was remarkable, given that there are questions surrounding this Klimt portrait. The identity of the girl depicted is open to question. The auction house said in its sale catalog that it had “not been able to clarify the precise provenance of the painting” since 1925, and the identity of the seller has not been revealed. Germany’s annexation of Austria in 1938, known as the Anschluss, and the Nazis’ persecution of its Jewish population also casts a murky shadow over the picture’s ownership history.
Steak From Dairy Cows? It Could Be a Lifeline for American Farmers. 2024-04-24 17:36:25+00:00 - Where’s the rib-eye? Someday soon it might be grazing on a dairy farm. Meat from dairy cows, rarely valued in American kitchens and restaurants, usually becomes dog food and fast-food burgers. The farmer gets about 60 cents a pound. But selling it for steaks could get them $6 or more a pound, allowing struggling U.S. dairy farmers to profit from an approach that’s widely practiced in Europe — and used to be in the United States. When mature dairy cows (about six years old) are allowed to pasture longer, their fat, which normally goes into milk, returns to the muscles and makes the meat richer and more tender. This is often done in Europe, notably in Portugal, Spain and parts of France. It’s generally not the practice in the United States, where most steaks come from grain-fed cattle that are slaughtered at about two years old. But a few farms, including Mindful Meat in Marin County, Calif., and Butter Meat Company in Pavilion, N.Y., just west of the Finger Lakes, have been selling meat from culled dairy cows and convincing skeptics. The restaurant Blue Hill, on the grounds of the Stone Barns farm in Tarrytown, N.Y., began serving the farm’s dairy-cow beef last year in its dining room and cafeteria. At Stone Barns, dairy cattle are living out their golden years munching on Pocantico Hills grass before becoming the highlight of a tasting menu that can run more than $400 per person. Many of the beef dishes at the restaurant are made with culled dairy meat; at the Stone Barns store, frozen strip-loin steaks are $24 a pound. By fall, the chef, Dan Barber, expects to begin selling to other restaurants.
Trump to receive bonus worth $1.2bn for Trump Media stock performance 2024-04-24 17:27:00+00:00 - Former president Donald Trump qualified for a bonus worth $1.2bn after shares in his social media company remained above a certain value despite falling sharply. Trump is poised to receive 36m additional shares in Trump Media & Technology Group (TMTG), owner of his Truth Social platform, under an “earn-out” windfall which boosts the paper value of his stake in the business to about $3.7bn. He was able to receive the bonus if TMTG’s stock traded above $17.50 a share for 20 days out of any 30-day period within the first three years of the firm’s stock market debut – a milestone it reached after closing at $32.57 on Tuesday. Trump’s shares in his social media company have offered him a financial lifeline as he faces about $500m in legal penalties after being found liable in civil fraud, defamation and sexual abuse cases. While he cannot sell his stock until September due to the terms of a lockup agreement, the shares’ fluctuating value have at times made him one of the world’s wealthiest people on paper. After a stunning landing on New York’s Nasdaq stock exchange, the value of Trump’s social media company – which trades as DJT – has fallen drastically. The stock hit a high of almost $80 on its opening day, but declined in fits in the following weeks. Trump Media’s CEO, Devin Nunes, has suggested that short sellers betting on the loss of value may have been responsible for manipulating the stock. Shares in Trump Media tanked further last week, falling 12% after the company revealed it could sell millions of additional shares in the coming months. They fell another 8% on Tuesday, even as they enabled Trump to qualify for his earn-out shares. The company has also faced political scrutiny over the firm’s financial backers. A Democratic-aligned group issued a call earlier this month for lawmakers to investigate the company over allegations of influence peddling, after the Guardian reported that a Russian-American businessman under federal criminal investigation helped prop up the company. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Truth Social has become a personal soapbox for Trump to issue statements to his supporters since its launch in 2022. While its user base is tiny compared with more established social networks, such as X (formerly Twitter), the platform has outgrown other rightwing apps. Trump is now on trial in a Manhattan courtroom, with prosecutors alleging that he sought to undermine the 2016 presidential election through making illegal hush-money payments to cover up his affair with adult film star Stormy Daniels. Trump’s defense lawyers have maintained he is innocent of all 34 felony counts of falsifying business documents, in what is the first criminal trial of a former president in US history.
Meta plunges 16% on weak revenue guidance even as first-quarter results top estimates 2024-04-24 16:56:00+00:00 - Mark Zuckerberg, CEO of Meta, testifies during the Senate Judiciary Committee hearing titled "Big Tech and the Online Child Sexual Exploitation Crisis," in Dirksen building on Wednesday, January 31, 2024. Meta shares plunged 16% in extended trading on Wednesday after the company issued a light forecast, which overshadowed better-than-expected first-quarter results. Here are the key numbers: Earnings per share : $4.71 per share vs. $4.32 per share expected by LSEG : $4.71 per share vs. $4.32 per share expected by LSEG Revenue: $36.46 billion vs. $36.16 billion expected by LSEG Revenue increased 27% from $28.65 billion in the same period a year earlier, the fastest rate of expansion for any quarter since 2021. Net income more than doubled to $12.37 billion, or $4.71 per share, from $5.71 billion, or $2.20 per share, a year ago. One reason for the pop in net income is that, while revenue growth accelerated, sales and marketing costs dropped 16% from the year-earlier period. Meta said it expects sales in the second quarter of $36.5 billion to $39 billion. The midpoint of the range, $37.75 billion, would represent 18% year-over-year growth and is below analysts' average estimate of $38.3 billion. The stock sell-off accelerated early in the earnings call after CEO Mark Zuckerberg jumped into his discussion about investments, namely in areas like glasses and mixed reality, where the company doesn't currently make money. And he said investments in artificial intelligence are increasing. "On the upside, once our new AI services reach scale, we have a strong track record of monetizing them effectively," Zuckerberg said. The Facebook parent no longer reports daily active users and monthly active users. It now gives a figure for what it calls "family daily active people." That number was 3.24 billion for March 2024, a 7% increase from a year earlier. Meta has raised investor expectations due to its improved financial performance in recent quarters, leaving little room for error. The stock is up about 40% this year after almost tripling last year. In February 2023, Zuckerberg told investors it would be the "year of efficiency," which initiated the rally. At the time, Zuckerberg said the company would be better at eliminating unnecessary projects and cracking down on bloat, which would help Meta become a "stronger and more nimble organization." The company cut about 21,000 jobs in the first half of 2023, and Zuckerberg said in February of this year that hiring will be "relatively minimal compared to what we would have done historically." Headcount declined by 10% in the first quarter from a year earlier to 69,329. Capital expenditures for 2024 are anticipated to be in the $35 billion to $40 billion range, an increase from a prior forecast of $30 billion to $37 billion "as we continue to accelerate our infrastructure investments to support our artificial intelligence (AI) roadmap," Meta said. Average revenue per user in the quarter was $11.20, it said. The company has been clawing back digital ad market share after a dismal 2022. At that time, it was reeling from Apple's iOS privacy update and macroeconomic concerns that led many brands to rein in spending. Zuckerberg spearheaded an initiative to rebuild the ad business with a focus on AI. On the company's last earnings call in February, finance chief Susan Li said Meta has been investing in AI models that can accurately predict relevant ads for users, as well as tools that automate the ads-creation process. Advertising revenue, which accounts for the vast majority of Meta's business, jumped 27% to $35.64 billion. Meta is benefiting from a stabilizing economy and surge in spending from Chinese discount retailers like Temu and Shein, which have been pumping money into Facebook and Instagram in an effort to reach a wider swath of users. Some analysts have warned that slower spending from China-based advertisers could be a source of concern in the first quarter and as the year progresses. Meta CFO Susan Li said on the earnings call that the company isn't quantifying the contribution from China in the quarter, but she said advertising revenue in the Asia-Pacific region increased 41% from a year earlier, making it the fastest growing region, and was boosted by online commerce and gaming. The company's Reality Labs unit, which houses the company's hardware and software for development of the nascent metaverse, continues to bleed cash. Reality Labs reported sales of $440 million for the quarter and $3.85 billion in losses, bringing total losses since the end of 2020 to over $45 billion. Analysts expected the division to show an operating loss of $4.31 billion for the quarter.
TikTok CEO Shou Chew says fight over ban will head to court: ‘We aren’t going anywhere’ 2024-04-24 16:50:00+00:00 - TikTok CEO Shou Chew said Wednesday that the company would go to court to try to remain online in the United States. In a video posted on the app, Chew denounced a potential ban signed into law by President Joe Biden. The law has a built-in delay of nine months, giving TikTok’s Beijing-based parent company, ByteDance, a chance to sell the app rather than face a nationwide prohibition. "Rest assured, we aren't going anywhere," Chew said in the two-minute video posted to TikTok's main corporate account. "We are confident and we will keep fighting for your rights in the courts. The facts and the Constitution are on our side, and we expect to prevail," he said. The video had about 176,000 likes roughly an hour after he posted it.TikTok has a winning record in the courts already. In 2020, a federal judge blocked an attempt by then-President Donald Trump to ban TikTok in the U.S., ruling that an order from Trump was "arbitrary and capricious." In November, a different federal judge blocked a law in Montana that threatened to ban TikTok statewide. The judge ruled in favor of five content creators who had sued. He said that the law "oversteps state power and infringes on the constitutional rights of users." The debate over TikTok's future is about not only free expression online and the future of social media but also how Americans think about data security and who's deciding what they see online. Proponents of a ban argue that personal information of U.S. users isn't safe because of the app's Chinese ownership, which critics say creates the possibility of Chinese spying on users. Proponents of the ban also say that China could pressure the company to manipulate what users see in order to further the country's foreign policy aims. TikTok has said that it's working to alleviate security concerns by storing data in the U.S. and that the propaganda concerns are unfounded. Chew is from Singapore. The federal proposed ban that Biden signed into law Wednesday was included in a $95 billion national security package with aid to Israel, Taiwan and Ukraine. The nine-month delay in the law means the earliest a ban could take effect would be January 2025. That's after the presidential election, meaning TikTok's millions of users may remain a force in the campaign. The law also allows the president to grant a one-time extension of 90 days on top of the nine months. TikTok says it has 170 million users in the U.S., or about half the country, though that doesn't mean they're all frequent users. In his video, Chew brushed aside the possibility of a sale, arguing that a long-discussed spinoff to non-Chinese owners was not lawmakers' goal. "Make no mistake. This is a ban: a ban on TikTok and a ban on you and your voice. Politicians may say otherwise, but don't get confused. Many who sponsored the bill admit a TikTok ban is the ultimate goal," he said. Chew also urged users and advertisers to rally to the platform's defense by talking about how they use it. "While we make our case in court, you'll still be able to enjoy TikTok like you always have. In fact, if you have a story about how TikTok impacts your life, we would love for you to share it to showcase exactly what we're fighting for," he said.
Ukraine uses long-range ATACMS against Russia for the first time 2024-04-24 16:50:00+00:00 - The U.S. provided Ukraine with powerful long-range ballistic missiles for the first time earlier this month, and its military has already used them twice in the last week against Russian forces, according to three U.S. officials. The first strike was about 100 miles inside Crimea’s border on the morning of April 17, targeting a Russian military airfield, according to the officials. The Ukrainian military used the U.S.-provided Army Tactical Missile System, known as ATACMS, for the second time Tuesday night, targeting Russian forces east of the southeastern Ukrainian town of Berdyansk in Zaporizhzhia Oblast, officials said. The Biden administration has not previously acknowledged sending ATACMS to Ukraine, but a National Security Council spokesperson confirmed that the U.S. has provided them. They were part of the $300 million military aid package unveiled March 12. The NSC spokesperson said the administration did not reveal at the time that it was sending Ukraine the long-range missiles for operational security reasons. President Joe Biden directed his national security team to send the ATACMS to Ukraine secretly, the spokesperson said. The powerful missiles have a range up to 300 kilometers (about 187 miles) and allow Ukraine to strike the Russian military throughout Crimea and in occupied parts of eastern Ukraine that had been difficult to reach. The U.S.-provided ATACMS included both warheads with cluster munitions and with unitary blast fragmentation. The revelation that Ukraine has used the long-range ATACMS came as Biden signed into law a foreign aid package providing billions of dollars in weapons and support to Ukraine, Israel and Taiwan. The measure, which will provide about $61 billion for Ukraine, was hung up for months due to opposition in the Republican-led House. The Biden administration was already preparing a military aid package for Ukraine worth more than $1 billion, according to two U.S. officials familiar with the planning. It will include a range of equipment that the U.S. has already provided Ukraine, including ammunition, stinger missiles, artillery rounds, infantry fighting vehicles and other military equipment, the officials said. NBC News was first to report in February that the Biden administration was planning to provide ATACMS to Ukraine. Late last year, the U.S. began to supply Ukraine with the missiles, but until now they had limited the shipments to older medium-range models amid concerns that taking the longer-range ones from U.S. stockpiles could endanger military readiness. In early February, the U.S. Army presented a plan to buy new ATACMS directly from industry and send ones in storage to Ukraine, and the Biden administration approved. The White House also concealed the decision to send the medium-range ATACMS in 2023, acknowledging it only after Ukraine used them in combat. Administration officials also cited operational security as the reason for its secrecy. The Biden administration had resisted sending the long-range missiles over the past two years because officials worried Ukraine would use them to strike inside Crimea or Russia and prompt Russian President Vladimir Putin to escalate the conflict. White House and Pentagon officials have expressed similar concerns about other sophisticated weapons systems but have repeatedly decided to provide them to Ukraine. But after multiple warnings to Russia not to use long-range weapons inside Ukraine and to stop attacking Ukrainian energy grids went unheeded, the White House decided to give Ukraine the same capabilities. An NSC spokesperson said Biden directed his team to send the ATACMS after North Korea provided Russia with ballistic missiles that have now been used in Ukraine and after Russia has repeatedly attacked civilian infrastructure inside Ukraine. The U.S. imposed limitations on the use of the long-range systems, including that they cannot be used to strike inside Russia and must be used within sovereign Ukrainian territory, which, according to the U.S. government, includes Crimea. Testifying before the House Appropriations Subcommittee on Defense last week, Defense Secretary Lloyd Austin warned that without funding for more weapons to Ukraine, Russia is gaining the upper hand. "We’re seeing the Ukrainians be challenged in terms of holding the line — they’re doing a very good job, a credible job — but in order to continue to do that, they’re going to need the right materials, the right munitions, the weapons to be able to do that," Austin said. An NSC spokesperson said more military aid will provide a boost to Ukraine on the battlefield, but it cannot turn the tide of the war alone. Ukraine is running low on munitions and equipment, while Russia continues to launch waves of drones and missiles, the spokesperson said. Speaking on NBC News’ “Meet the Press” on Sunday, Ukrainian President Volodymyr Zelenskyy said the new aid will give the country a chance at “victory” as it defends itself from Russia. “I think this support will really strengthen the armed forces, I pray, and we will have a chance at victory if Ukraine really gets the weapons system, which we need so much, which thousands of soldiers need so much,” he said.
Arizona state House passes bill to repeal 1864 abortion ban 2024-04-24 16:40:00+00:00 - On their third attempt in three weeks, Arizona state House lawmakers voted Wednesday to pass a bill that would repeal the near-total ban on abortion from 1864 that was upheld by the battleground state’s Supreme Court earlier this month. After a dizzying course of votes throughout the afternoon, three state House Republicans joined Democrats in approving a repeal of the Civil War-era law that made abortion a felony punishable by two to five years in prison for anyone who performs one or helps a woman obtain one. Members of the state Senate, where Republicans also hold a narrow majority, voted last week in favor of a motion to introduce a bill that would repeal the abortion ban. Two Republicans joined every Democrat in the chamber on that vote. The state Senate could vote on the repeal as early as next Wednesday, after the bill comes on the floor for a "third reading," as is required under chamber rules. Members of Arizona for Abortion Access, the ballot initiative to enshrine abortion rights in the Arizona State Constitution, hold a press conference and protest condemning Arizona House Republicans and the 1864 abortion ban during a recess from a legislative session at the Arizona House of Representatives on April 17, 2024 in Phoenix. Rebecca Noble / Getty Images The state Senate is likely to pass a repeal of the law, a source in Arizona familiar with the situation told NBC News. Once that happens, Democratic Gov. Katie Hobbs is certain to sign the repeal quickly. Abortion rights supporters and Democrats — all the way up to the White House — praised Arizona lawmakers for their passage of the repeal. "That’s a good thing," White House Press Secretary Karine Jean-Pierre said of the vote. "We’re moving forward in the right direction." The Biden campaign blamed Donald Trump for the turmoil, saying that the former president "is responsible for Arizona’s abortion ban" after appointing three of the U.S. Supreme Court justices who overturned Roe v. Wade. "If he retakes power, the chaos and cruelty he has created will only get worse in all 50 states," Biden 2024 campaign manager Julie Chavez Rodriguez said in a statement. The state House's vote to repeal came on the chamber's third attempt since the state Supreme Court ruled earlier this month to uphold the 160-year-old near-total ban. Following that ruling, Republicans across the U.S. — including Trump, who has said he wants to let states make their own decisions on abortion policies — called on legislators in the state to repeal the ban amid a broader political blowback against the GOP on the issue of reproductive rights in the nearly two years since the U.S. Supreme Court struck down Roe v. Wade. But Republicans in the Arizona state House, where the party holds a narrow majority, had remained steadfast in not allowing a repeal bill to advance. But on Wednesday, amid mounting pressure, Republicans in the chamber appeared to finally relent, with three GOP lawmakers — state Reps. Matt Gress, Tim Dunn and Justin Wilmeth — joining the 29 Democrats in the chamber to pass the repeal. Republican opponents of the repeal pleaded with their colleagues to reject the bill for a third time during remarks they were allowed to make while voting. “We should not have rushed this bill through the legislative process,” Republican state House Speaker Ben Toma said. “Instead today we are rushing to judgment.” "It breaks my heart that you're here to witness this," said House Speaker Pro Tempore Travis Grantham, before casting a "no" vote. "I'm proud of my Republican caucus that has fought this off as long as it has," added Grantham, who accused Democrats of having used the issue as a political cudgel. "To see how this has been turned against one party and used as a weaponization of the issue is disgusting," he said. At the end of Wednesday's hearing, Grantham said the vote was an "awful, disgusting situation" and stripped Gress, as well as Democratic Assistant Minority Leader Oscar De Los Santos, of their committee assignments. Just last week, during the state House's prior session, Democrats in the chamber introduced a bill to repeal the 160-year-old abortion ban and filed a motion to Republican House leaders requesting an immediate vote. The vote failed, prompting Democrats to move again to force a vote, which also fell short. Republicans were more easily able to kill that vote because it came under a procedural vote to suspend state House rules. Under Arizona House rules, a majority of the chamber that includes the speaker is required to vote to suspend the rules to hold an immediate vote. Such obstacles didn't exist on Wednesday because the vote came amid normal House order. Wednesday’s proceedings marked the latest chapter in the fight over abortion rights in the crucial battleground following the Arizona Supreme Court’s bombshell ruling earlier this month. The law the conservative-leaning court ruled was enforceable makes abortion a felony punishable by two to five years in prison for anyone who performs one or helps a woman obtain one. The law was codified in 1901 — and again in 1913, after Arizona gained statehood — and outlaws abortion from the moment of conception but includes an exception to save the woman’s life. The law is set to go into effect as early as June 8, though Democratic Attorney General Kris Mayes has said her office is working to find ways to delay that date. The ban is likely to go into effect for a short period of time — even if the Senate passes it next week and Hobbs signs it shortly thereafter — because under Arizona law, repeals don't go into effect until 90 days after a legislative session concludes. Last year's session ended in late July. "We may still be looking at a period of time when the 1864 [ban] could potentially take effect," Mayes said in a statement. A successful repeal of the 1864 ban would likely result in state policy reverting to a 15-week ban on abortions that makes exceptions for medical emergencies but not for rape or incest. Some prominent anti-abortion groups called on Republicans to unite behind that law, which was enacted in 2022, following Wednesday’s vote. "After months of confusion, the people of Arizona will soon have clarity on the state’s abortion laws: a 15-week protection for the unborn," Susan B. Anthony Pro-Life America President Marjorie Dannenfelser said in a statement. “Kari Lake and all GOP candidates and elected officials must bring clarity to Arizona voters by campaigning vigorously in support of Arizona’s 15-week protection with exceptions." Despite the continued repeal efforts, voters are likely to have the power this November to decide on the future of abortion rights in the state themselves. Organizers in the state are likely to succeed in placing a proposed constitutional amendment on the November ballot that would create a “fundamental right” to receive abortion care up until fetal viability, or about the 24th week of pregnancy. If voters approve the ballot measure, it would effectively undo the 1864 ban, which now remains law in the state. It would also bar the state from restricting abortion care in situations in which the health or life of the pregnant person is at risk after the point of viability, according to the treating health care professional. But the state Supreme Court decision prompted Republicans to also discuss a series of possible contingencies to upend that effort, including pushing alternative ballot measures to compete with the pro-abortion rights proposed amendment, according to a leaked strategy document circulated among Arizona Republicans. During a brief state House Rules committee hearing Wednesday, Republicans voted to advance three resolutions — without explaining what they were — that Democrats and abortion rights supporters said were likely the GOP-backed ballot measures. "I can't tell you what the subject matter will be," Grantham, the House Speaker Pro Tempore who led the hearing, said. Chris Love, a spokesperson for Arizona for Abortion Access, called the resolutions "three dishonest placeholder bills" that served as "the first step toward referring up to three anti-abortion measures to the November ballot aimed at confusing and deceiving voters in hopes of pulling votes from the Arizona Abortion Access Act."
UK competition watchdog steps up scrutiny of big tech’s role in AI startups 2024-04-24 16:27:00+00:00 - The UK competition watchdog has stepped up its scrutiny of big tech involvement in artificial intelligence startups, asking for comment on three deals by Microsoft and Amazon. The Competition and Markets Authority (CMA) announced that it was examining Microsoft’s investment in the French firm Mistral and the hiring of the DeepMind co-founder Mustafa Suleyman as head of the US company’s new AI division. The watchdog is also scrutinising Amazon’s $4bn (£3.2bn) investment in the US AI firm Anthropic. The CMA has issued “invitations to comment” on the tie-ups, a procedural move that paves the way for a formal investigation, amid concerns that these partnerships are effectively giving the big tech companies backdoor control over potential rivals and stifling competition. The watchdog has already asked for comments on Microsoft’s relationship with OpenAI, the developer of ChatGPT. Joel Bamford, the executive director of mergers at the CMA, said: “We will assess, objectively and impartially, whether each of these three deals fall within UK merger rules and, if they do, whether they have any impact on competition in the UK.” Meanwhile, Sarah Cardell, the chief executive of the CMA, has warned that the watchdog had “real concerns” about the AI market. The CMA has singled out six tech companies at the heart of an “interconnected web” of AI partnerships: Google; Microsoft; Meta; Amazon; Apple; and Nvidia, the leading supplier of chips for training and operating AI systems. The CMA’s next step with Microsoft and Amazon will be a “phase one” investigation, during which the watchdog will examine whether the partnerships fall under the UK merger regime and whether they raise competition concerns. If the CMA finds there are concerns and decides to proceed with a phase two investigation, it could seek remedies from the companies involved. In February, Microsoft announced it was investing €15m (£13m) in Mistral, a Paris-based startup specialising in open-source AI models, which can be freely downloaded and adapted by users. Microsoft said the deal represented an opportunity for Mistral to “unlock new commercial opportunities” and “expand to global markets”. The Mistral deal was followed weeks later by the announcement of Suleyman’s appointment. Several employees at his Inflection AI startup were also recruited to join the new Microsoft division. The tie-up included a $650m cash payment to Inflection and making the company’s AI models available on Microsoft’s Azure cloud service. Amazon’s deal with Anthropic, the developer of the Claude chatbot, involves the US startup using the big tech company as its main cloud provider and using Amazon’s custom chips to build, train and deploy AI models. Alex Haffner, a partner at the UK law firm Fladgate, said the move underlined the CMA’s interest in the AI market. “Noises coming out of the CMA in recent times have indicated that they are very keen to get involved early in the evolution of the AI market and today’s announcement certainly reflects that degree of seriousness,” he said. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Microsoft said it would provide the CMA with the information the watchdog needed to carry out its inquiries. “We remain confident that common business practices such as the hiring of talent or making a fractional investment in an AI startup promote competition and are not the same as a merger,” the company said. Amazon said the CMA move was “unprecedented” and that the Anthropic deal was different from other tie-ups announced by the big tech firms. In a pointed reference to Microsoft’s partnership with OpenAI, Amazon said the deal did not give it a “board director or observer role” and continued to have “Anthropic running its models on multiple cloud providers”.
High-Yield Texas Instruments Could Hit New Highs Soon 2024-04-24 15:27:00+00:00 - Texas Instruments NASDAQ: TXN dividend is unique among chipmakers for its yield, if nothing else. The stock yields over 3.15%, which is double or better than the rest of the field, and it is a safe and growing distribution. Key Points Texas Instruments struggled in Q1, but signs point to end-market normalization and a return to growth. Cash flow and the balance sheet remain healthy and have the company well-positioned for recovery. Analysts are raising their price targets following the release, leading the market higher. 5 stocks we like better than Texas Instruments Texas Instruments Dividend Payments Dividend Yield 2.97% Annual Dividend $5.20 Dividend Increase Track Record 20 Years Annualized 3-Year Dividend Growth 10.51% Dividend Payout Ratio 73.65% Recent Dividend Payment Feb. 13 See Full Details The dividend alone may not be a reason to buy the stock but the opportunity becomes more attractive when you add the outlook for business recovery and upward pressure from analysts' revisions. In this scenario, the stock price could trend higher over the next 12 to 18 months, driven by revenue, earnings recovery, and an upwardly-trending consensus price target. Get Texas Instruments alerts: Sign Up Texas Instruments is unlikely to see an AI-powered boost like NVIDIA NASDAQ: NVDA or Advanced Micro Devices NASDAQ: AMD, but it is tracking toward end-market normalization and a return to growth, and AI is in the picture. Texas Instruments focuses on edge and vision applications, which are central to the second wave of AI. Texas Instruments: The Dark Time Before the Dawn Texas Instruments struggled in Q1, but the details and outlook suggest this is the dark time before the dawn. Revenue is down 16.4% for Q1 due to weakness in all segments, and guidance expects another quarter of contraction. Still, in alignment with expectations, the contraction will slow, and expected end-market normalization will soon turn into a tailwind that drives growth. The Other segment was weakest segmentally, with a contraction of 33%. Embedded fell by 21.6% and Analog by 14%. Margin news is bad, but not as bad as expected. The company's gross margin contracted by 820bps, compounded by deleveraging operating costs, to leave the GAAP earnings down 35%. The GAAP earnings include a 10-cent favorable impact from unexpected items, leaving the adjusted EPS at $1.20, down 75 cents from last year, or 40.5%. As bad as the impact of contracting business is, the company is still in solid financial shape and paying dividends. The cash flow was negative for the quarter due in part to investment in production and inventory, both of which are up - increased assets offset the cash decline. Debt is also up but well within safe levels. The increase helped position the company for its recovery and left the leverage ratios in a fortress condition. Total liabilities are only 1.1x equity, and long-term debt is about 0.75x equity. Analysts Lead Texas Instruments to New Highs Texas Instruments Today TXN Texas Instruments $174.81 +9.34 (+5.64%) 52-Week Range $139.48 ▼ $188.12 Dividend Yield 2.97% P/E Ratio 24.76 Price Target $176.68 Add to Watchlist The analyst response to Texas Instruments Q1 release is favorable to shareholders. The 7 analysts tracked by Marketbeat in the first few hours following the report included reiterated ratings and price targets and five upward revisions. The range of targets runs from just below the consensus to $210, assuming the stock is fairly valued at current levels with a chance of moving higher. The consensus rating is flat compared to last year, but it is rising from a bottom formed earlier this year, providing a tailwind for the market. If this trend continues, shares of TXN will likely move higher as the year progresses. Analysts at JPMorgan expect the company to drive "a continued recovery profile into 2H of the year and into 2025," a situation that will lead analysts to raise targets. JPMorgan's new target is $195, 10% upside and a multi-year high. Texas Instruments Moves Up Within a Range Texas Instruments is moving higher but may have difficulty setting a new all-time high until later. The market faces stiff resistance at multiple levels within a trading range that could cap gains. However, assuming the recovery shows traction later in the year and analysts respond favorably, a sustained uptrend is possible. In this scenario, the price action in TXN stock could increase incrementally within the range, testing and tackling resistance at $185, $190, and $200 on its way to a new all-time high. The risk is that the recovery will take longer than expected, leading to volatility within the range. Before you consider Texas Instruments, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Texas Instruments wasn't on the list. While Texas Instruments currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Higher Oil Prices Could Give NextEra’s Stock Earnings a Boost 2024-04-24 14:40:00+00:00 - Key Points NextEra's first quarter shows the stock could be on a second leg higher this year, as oil prices make alternative energy more attractive. As oil prices rise, analysts boost the stock, and current EPS projections may need to be adjusted. Long-term artificial intelligence electricity demand may persuade institutional buy-in. 5 stocks we like better than Amazon.com As markets prepare to shift into the new cycle created by potential interest rate cuts from the Federal Reserve (the Fed), a few specific sectors may have greater odds of outperforming the rest of the market. Investors may turn to energy stocks, especially now that Goldman Sachs analysts set their expectations for up to $100 a barrel of oil this year. But not all energy stocks are created equal. With straight oil and gas plays like Exxon Mobil Co. NYSE: XOM reaching all-time highs, maybe the run is relatively exhausted after all. However, investors have other ways to hop onto the energy wave, which is still tied to rising oil prices. Get Amazon.com alerts: Sign Up Alternative energy stocks like NextEra Energy Inc. NYSE: NEE could be attractive as more expensive oil makes other energy sources more attractive. After the company reported its first quarter 2024 earnings, arguably the most important release to set the year's tone, investors may walk away with new expectations for the rest of the year. Location and Energy Trends: NextEra’s Profit Center NextEra Energy Today NEE NextEra Energy $66.56 +0.36 (+0.54%) 52-Week Range $47.15 ▼ $79.10 Dividend Yield 3.09% P/E Ratio 18.44 Price Target $71.21 Add to Watchlist Operating in arguably one of America's fastest-growing economies, NextEra serves the Floridian market. According to the company's presentation, after seeing a nearly $800 billion boost in gross domestic product (GDP), NextEra's primary market allows it to keep compounding its income. Over the past 12 months, NextEra's segments have shown investors what the future may hold. Florida Power & Light (FPL) reported earnings per share (EPS) of 57 cents, a rise of four cents a share. Energy resources, the segment responsible for renewable energy in NextEra, saw an EPS decline of 25 cents to 47 cents. The divergence makes sense when investors note that oil prices remained below $80 a barrel over the past 12 months, thereby making renewable energy sources less attractive. Now that oil could become an issue, NextEra’s renewable energy business could swiftly return. Knowing this is a likely possibility, analysts at Wells Fargo & Co. boosted their price targets for NextEra up to $85 a share as of March 2024. The stock will need to rally by 28.4% from today's prices to prove these projections right. The Market's Voting System Size matters when it comes to stocks, and markets chose NextEra’s $136 billion market capitalization to reign over competitors like Dominion Energy Inc. NYSE: D and its much smaller $42.4 billion size. This selection comes through the market's voting system, as seen in how future EPS projections are valued today. With a forward price-to-earnings (P/E) ratio of 18x, NextEra stock trades at a premium of 23% to Dominion's 14.7x valuation. There must be a reason why markets are willing to overpay for NextEra's earnings rather than Dominion's, and one reason could be underrated EPS growth. Dominion's primary business is providing electricity through natural gas, with minimal regard for renewable energy. Because of this, analysts projected up to 18.5% EPS growth in the stock for this year, while NextEra's projections show only 7.6%. However, these projections need an update as changing energy markets have made investors more willing to pay for renewable sources. Price action crystallizes this preference, as NextEra underperformed the Energy Select Sector SPDR Fund NYSEARCA: XLE by as much as 27.6%. Investors looking to fill the gap created by these bullish valuations, justified by a fundamental breakout, can find one in the company's financials. Despite a higher inflationary environment in the United States, investors can find safety in NextEra's 3.1% dividend yield. According to management, dividend per share growth is expected to be roughly 10% through at least 2026. Institutions are preparing for this shift in energy source preferences, as up to $108.6 billion of institutional inflows were recorded for NextEra in the past 12 months. Of course, the growing demand for electricity created by the growth of artificial intelligence and data centers is one sure push for NextEra's business. With Amazon.com moving its headquarters to Miami and a lot of electric demand, NextEra's EPS growth could come from more than just higher oil prices. Before you consider Amazon.com, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amazon.com wasn't on the list. While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
GE Aerospace is Ready for Liftoff After Strong Earnings 2024-04-24 13:07:00+00:00 - Key Points GE stock is up 3.47% after a bullish earnings report. The report will be the last one that includes GE Vernova; going forward, the GE ticker symbol will be exclusively for GE Aerospace. The report could change analysts' sentiments that GE stock is priced for perfection. 5 stocks we like better than GE Vernova General Electric NYSE: GE stock is up 3.47% in early trading after the company delivered its first-quarter earnings report. The company delivered revenue of $16.1 billion and earnings per share (EPS) of 82 cents per share, a 55% year-over-year (YOY) increase. Those numbers need a little context. This was the last earnings report for General Electric as a conglomerate. In early April, the company spun off its energy unit, GE Vernova Inc. NYSE: GEV. However, this earnings report still included results from the Vernova business unit. Get GE Vernova alerts: Sign Up Meet GE Aerospace In the future, the company will report earnings as GE Aerospace with the same GE ticker symbol. GE Aerospace will be one of the top aerospace stocks and will house two business units: Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT). When you look at just the GE Aerospace numbers, there's still much for investors to like. The combined Aerospace unit delivered adjusted revenue of $8.1 billion, a 15% YOY increase. The Aerospace division also delivered an operating profit margin of 19.1% and $1.7 billion in free cash flow (FCF). Aerospace orders totaled $11 billion in the quarter, a 34% YOY increase. It was also $2.9 billion higher than adjusted revenue. For 2024, GE Aerospace raised its prior guidance for operating profit from $6.0 billion and $6.5 billion to $6.2 billion and $6.6 billion. The company also projects earnings to be between $3.80 and $4.05 per share. At the company's Investor Day in March, the company forecasted $10 billion in operating profit by 2028 and a shareholder-friendly capital allocation framework that includes $15 billion in share buybacks and a 250% dividend increase, which the company initiated in April. Will Positive Earnings Drive GE Aerospace Higher? Heading into earnings, GE stock was up more than 50% in the last 12 months. That had many analysts talking about a stock that was priced for perfection. While many analysts were reiterating their Buy (or Overweight) ratings the price targets were coming down. However, it's important to note that many of those lower price targets were still higher than the consensus price target of $160.07. GE stock gapped higher in early April after the dividend announcement. Since then, the stock has found resistance around the $157 level. The earnings report pushed the stock above this level. The question will be if it can hold these gains and make $157 a new level of support. The company's results may not qualify as perfection, but it may be close enough to confirm the bullish sentiment in the stock. As of this writing, the GE analyst ratings on MarketBeat don't show any change in analyst sentiment. But this will be something for investors to watch in the coming days and weeks. Before you consider GE Vernova, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and GE Vernova wasn't on the list. While GE Vernova currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here