Latest News
See the latest news and get GPT analysis of articles
Amazon adds video telemedicine visits nationwide to its virtual clinic 2023-08-01 - Amazon is adding video telemedicine visits in all 50 states to a virtual clinic it launched last fall, as the e-commerce giant pushes deeper into care delivery. Amazon said Tuesday that customers can visit its virtual clinic around the clock through Amazon’s website or app. There, they can compare prices and response times before picking a telemedicine provider from several options. The clinic, which doesn’t accept insurance, launched last fall with a focus on text message-based consultations. Those remain available in 34 states. The new video telemedicine option also will be available in Washington, D.C. Virtual care, or telemedicine, exploded in popularity when COVID-19 hit a few years ago. It has remained popular as a convenient way to check in with a doctor or deal with relatively minor health issues like pink eye. Amazon says its clinic offers care for more than 30 common health conditions. Those include sinus infections, acne, COVID-19 and acid reflux. The clinic also offers treatments for motion sickness, seasonal allergies and several sexual health conditions, including erectile dysfunction. It also provides birth control and emergency contraception. Chief Medical Officer Dr. Nworah Ayogu said in a blog post that the clinic aims to remove barriers to help people treat “everyday health concerns.” “As a doctor, I’ve seen firsthand that patients want to be healthy but lack the time, tools, or resources to effectively manage their care,” Ayogu wrote. Amazon said messaging-based consultations cost $35 on average while video visits cost $75. That’s cheaper than the cost of many in-person visits with a doctor, which can run over $100 for people without insurance or coverage that makes them pay a high deductible. While virtual visits can improve access to help, some doctors worry that they also lead to care fragmentation and can make it harder to track a patient’s overall health. That could happen if a patient has a regular doctor who doesn’t learn about the virtual visit from another provider. In addition to virtual care, Amazon also sells prescription drugs through its Amazon Pharmacy business and has been building its presence with in-patient care. Earlier this year, Amazon also closed a $3.9 billion acquisition of the membership-based primary care provider One Medical, which had about 815,000 customers and 214 medical offices in more than 20 markets. One Medical offers both in-person care and virtual visits. Anti-monopoly groups had called on the Federal Trade Commission to block the deal, arguing it would endanger patient privacy and help make the retailer more dominant in the marketplace. The agency didn’t block the deal but said it won’t rule out future challenges. That deal was the first acquisition made under Amazon CEO Andy Jassy, who took over from founder Jeff Bezos in 2021. Jassy sees health care as a growth opportunity for the company. ___ AP Business Writer Haleluya Hadero contributed to this story from New York. Murphy reported from Indianapolis.
X marks the lawsuit: Elon Musk’s social media company sues nonprofit highlighting site’s hate speech 2023-08-01 - WASHINGTON (AP) — X, the social media platform formerly known as Twitter, has sued a group of researchers — alleging their work highlighting an increase in hate speech on the platform cost the company millions of dollars of advertising revenue. The suit, filed late Monday night in U.S. District Court in the Northern District of California, accuses the nonprofit Center for Countering Digital Hate of violating X’s terms of service by improperly collecting a vast amount of data for its analysis. The suit also alleges, without offering evidence, that the organization is funded by foreign governments and media companies who view X as competition. The legal fight between the tech company, which was acquired by Elon Musk last year, and the center could have significant implications for a growing number of researchers and advocacy groups that seek to help the public understand how social media is shaping society and culture. With offices in the U.S. and United Kingdom, the center regularly publishes reports on hate speech, extremism and harmful behavior on social media platforms like X, TikTok or Facebook. The organization has published several reports critical of Musk’s leadership, detailing an increase in anti-LGBTQ hate speech as well as climate misinformation since his purchase. In its lawsuit, X alleges the center violated its terms of service by automatically scraping large amounts of data from the site without the company’s permission. X also claims the center improperly accessed internal Twitter data, using log-on credentials it obtained from an employee at a separate company that has a business relationship with X. Without naming any individuals or companies, the suit says the center receives funding from foreign governments as well as organizations with ties to “legacy media organizations” that see X as a rival. The suit claims the center’s work has cost X tens of millions of dollars in lost ad revenue. In response to the legal action, Imran Ahmed, the center’s founder and CEO, defended its work and accused Musk of using the lawsuit to silence criticism of his leadership, as well as research into the role X plays in spreading misinformation and hate speech. “Musk is trying to ‘shoot the messenger’ who highlights the toxic content on his platform rather than deal with the toxic environment he’s created,” Ahmed said. The center’s 2021 tax forms show it took in $1.4 million in revenue. A review of major donors shows several large charities, including the National Philanthropic Trust in the U.S. and the Oak Foundation and Joseph Rowntree Charitable Trust in the U.K. A spokesman for the group said the center receives no funding from any government entities or tech companies that could be considered competitors to X. The identities of other donors is not revealed in public documents, and the center declined to provide a list. Musk is a self-professed free speech absolutist who has welcomed back white supremacists and election deniers to the platform, which he renamed X last month. He initially had promised that he would allow any speech on his platform that wasn’t illegal. “I hope that even my worst critics remain on Twitter, because that is what free speech means,” Musk wrote in a tweet last year. Nevertheless, the billionaire has at times proven sensitive about critical speech directed at him or his companies. Last year, he suspended the accounts of several journalists who covered his takeover of Twitter. __ Associated Press writer Thalia Beatty contributed to this report.
Stocks diverge to start August after hot July: Stock market news today 2023-08-01 - Stocks diverged to start August, pulling back from a July rally amid a flurry of mixed earnings. For the day, the S&P 500 (^GSPC) dropped 0.3%, while the Dow Jones Industrial Average (^DJI) was up around 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slumped 0.4%. A plethora of earnings added mixed sentiments to what has been a bullish mood for most of 2023 so far. Of note Tuesday, Caterpillar (CAT) warned of a coming slowdown in its business, Pfizer (PFE) trimmed the upper end of its revenue forecast, and Uber (UBER) popped after posting a surprise profit. Meanwhile, the job market continues to show signs of cooling, as job openings fell to their lowest level in more than two years on Tuesday. These earnings and data points serve as the appetizer for the main event: second quarter results from Apple (AAPL) and Amazon (AMZN) that are due out Thursday. Both stocks are up more than 50% so far this year. Investors are also looking ahead to key pieces of data out this week, most notably the jobs report in the US on Friday. On Monday, stocks capped a strong month of July for all the major indexes. The S&P 500 and Nasdaq both wrapped up their fifth straight month of gains.
Amazon Clinic rolls out nationwide as e-commerce giant expands its health care footprint 2023-08-01 - New York CNN — Amazon’s virtual clinic is now available in all 50 states and Washington, D.C., the company announced on Tuesday. Amazon Clinic launched last November and offers customers 24/7 access to third-party health-care providers directly on Amazon’s website and mobile app. With the service, Amazon customers can receive telehealth treatment for dozens of common conditions, such as pink eye, urinary tract infections and hair loss. The company said on Tuesday that in addition to message-based consultations being available in 34 states, Amazon Clinic now supports video visits nationwide. Amazon Clinic currently does not accept insurance, but medication prescribed by clinicians may be covered by insurance. “At Amazon, we want to make it dramatically easier for people to get and stay healthy, and we’re doing that by helping customers get the care and medications they need in the way that is most convenient for them,” Dr. Nworah Ayogu, the chief medical officer and general manager at Amazon Clinic, said in a blog post Tuesday. The virtual service will allow customers to see the cost before they start the visit, Ayogu said. Amazon’s foray into the health care space comes as other retailers have made similar moves, from CVS to Walgreens to Walmart. The service will also face competition from urgent-care clinics that are popping up across the country as health care costs spiral and doctors visits for routine matters become impossible to book. A huge number of telehealth startups grew out of the pandemic, although the market growth has begun to subside. Amazon announced it is expanding its virtual clinic to be nationwide. From Amazon In recent years, Amazon has gradually been growing its footprint in the health care sector. In 2020, the company launched its own digital drugstore, Amazon Pharmacy. Earlier this year, Amazon also closed its acquisition of health care provider One Medical in a $3.9 billion deal. Amazon had also partnered with JPMorgan Chase and Berkshire Hathaway to provide better health care services and insurance at a lower cost to workers and families at the three companies, and possibly other businesses, too. That effort, however, never got off the ground and ultimately shut down in 2021. The latest expansion of Amazon Clinic comes as the company continues to broaden its reach into every corner of its customers’ lives. The company now oversees grocery stores, produces films and TV shows for its streaming service, and sells a vast array of home devices.
Stocks making the biggest moves after hours: SolarEdge Technologies, Advanced Micro Devices, Starbucks and more 2023-08-01 - Check out the companies making headlines after hours. SolarEdge Technologies — The solar stock dropped 11% in extended trading. SolarEdge missed revenue expectations in its second quarter, posting $991 million compared to the expected $992 million from analysts polled by Refinitiv. The company beat earnings estimates, posting an adjusted $2.62 per share, better than the $2.52 per-share estimate. Advanced Micro Devices — The chip stock jumped nearly 4% after Advanced Micro Devices reported better-than-expected quarterly results. AMD reported second-quarter adjusted earnings of 58 cents per share on revenue of $5.36 billion. Analysts polled by Refinitiv expected per-share earnings of 57 cents on revenue of $5.31 billion. Freshworks — Freshworks advanced nearly 14% after reporting second-quarter earnings that exceeded expectations on the top and bottom lines. The software company reported adjusted earnings of 7 cents per share on revenue of $145 million. Analysts polled by Refinitiv had expected per-share earnings of 2 cents on revenue of $141 million. Starbucks — Starbucks declined 1% after reporting a revenue miss. The coffee chain reported fiscal third-quarter revenue of $9.17 billion, lower than the $9.29 billion estimated by analysts polled by Refinitiv. Starbucks did post adjusted per-share earnings of $1.00, better than the 95 cent estimate. Virgin Galactic — Virgin Galactic shares dipped 3% after the space tourism company posted a revenue miss in its second quarter. It reported revenue of $1.9 million, lower than the consensus estimate of $2.7 million, according to Refinitiv. It did beat on earnings expectations. Virgin Galactic posted a loss per share of 46 cents, better than the estimated loss of 51 cents per share. Pinterest — Pinterest slipped 0.5% after the bell despite posting a top-and-bottom line beat. The image-sharing platform reported adjusted earnings of 21 cents a share on revenues of $708 million, per Refinitiv. e.l.f. Beauty — The beauty stock surged 15% after e.l.f. Beauty topped analysts' expectations in its most recent quarter. e.l.f. Beauty posted first-quarter adjusted earnings of $1.10 per share on revenue of $216 million. Analysts polled by Refinitiv had expected per-share earnings of 56 cents per share on revenue of $184 million. Match Group — Shares surged 11% after Match Group exceeded analysts' second-quarter expectations. The dating app company posted earnings of 48 cents per share on revenue of $830 million. Analysts polled by Refinitiv had expected per-share earnings of 45 cents on revenue of $811 million. Devon Energy — The stock fell about 2% after Devon Energy missed revenue expectations in its second quarter. Devon Energy posted revenues of $3.45 billion, lower than the estimated $3.74 billion from analysts polled by Refinitiv. Earnings came in line with estimates. Devon reported adjusted earnings of $1.18 per share. Frontier Group Holdings — Frontier Group rose more than 3% after reporting earnings that beat on the top and bottom lines. The airline company reported second-quarter adjusted earnings of 31 cents per share on revenue of $967 million. Analysts polled by Refinitiv expected per-share earnings of 28 cents on revenue of $966 million. Electronic Arts — Electronic Arts slid 3.5% after its fiscal first-quarter revenue missed analysts' expectations. The video game company reported $1.58 billion, lower than the consensus estimate of $1.59 billion, according to Refinitiv. It posted earnings per share of $1.47, topping the forecasted $1.02 per share. Caesars Entertainment — Caesars Entertainment fell more than 2% in extended trading. The casino company reported second-quarter revenue of $2.88 billion, beating the estimate of $2.87 billion, according to Refinitiv. The earnings per share figure was not comparable. — CNBC's Samantha Subin contributed to this report.
BNSF train engineers offered paid sick time and better schedules in new deal 2023-08-01 - OMAHA, Neb. (AP) — Roughly 7,500 BNSF train engineers may soon get up to eight days of paid sick time and more certainty about their days off if they approve a new deal with the railroad announced Tuesday. BNSF and the Brotherhood of Locomotive Engineers and Trainmen union said engineers will get more predictable schedules and the ability to take sick time off without being penalized under the Fort Worth-Texas based railroad’s strict attendance policy. The major freight railroads have made a great deal of progress on the sick time issue since workers’ quality of life concerns pushed the industry to the brink of a strike last year before Congress forced the unions to accept a contract. More than 77% of all rail workers have now been promised sick time. The railroads refused to add sick time to last year’s deal that included 24% raises and $5,000 in bonuses. BNSF engineers will get five days of paid sick leave and be permitted to convert three other leave days into sick time each year. That’s better than most other deals rail workers have made that provide for up to seven days of sick time through a combination of paid days and existing leave days. In all these deals, railroads promised to pay workers for any unused sick time at the end of each year. In addition to sick time, this agreement will establish a scheduling model across BNSF that will help engineers predict when they will be scheduled to be off. The details may vary somewhat across the railroad, but BNSF generally promised to try to give engineers three days off after they work six days in a row. The deal also includes a number of smaller changes in the complicated rules that determine when engineers have to report to work that the railroad and union said would “bring positive changes to both the professional and personal lives of locomotive engineers.” After this agreement, the engineers union now has deals to improve schedules with all the major freight railroads, including BNSF, Union Pacific, Norfolk Southern, CSX, Canadian National and Canadian Pacific Kansas City. But it still lacks sick time deals with CSX and both Canadian railroads. Norfolk Southern and UP are the only railroads so far to announce sick time deals with all their unions. BNSF is one of the nation’s largest railroads, with about 32,500 miles of track in the west. It’s owned by Warren Buffett’s Omaha, Nebraska-based Berkshire Hathaway conglomerate.
Starbucks reports record quarterly revenue as China sales boom 2023-08-01 - Starbucks reported record revenue in its fiscal third quarter as its China business roared back to life. Same-store sales — or sales at stores open at least a year — jumped 46% in China, reversing last year’s declines due to COVID infections. Still, the company’s results were mixed for the 13 weeks ending July 2. While its earnings surpassed Wall Street’s forecast, its sales were lower than expected. Starbucks shares were down 1% in after-market trading Tuesday. The Seattle-based coffee giant said its revenue rose 12% to $9.2 billion in the quarter. Analysts had expected revenue of $9.3 billion, according to FactSet. Starbucks’ overall same-store sales increase of 10% was also lower than Wall Street’s forecast of 11%. North American same-store sales rose 7% for the quarter. That was largely due to higher prices and customers ordering more items per visit; customer traffic was up just 1%. Starbucks said its net income rose 25% to $1.1 billion, or 99 cents per share. Excluding restructuring costs, the company earned $1 per share. That was higher than the 95 cents analysts forecast.
An accomplice to convicted murderer Alex Murdaugh’s financial misdeeds gets seven years in prison 2023-08-01 - The man who once headed a highly respected bank in the South Carolina Lowcountry will spend seven years in federal prison for helping convicted murderer Alex Murdaugh steal nearly $2 million from clients’ legal settlements. Russell Laffitte was sentenced Tuesday after a jury found him guilty of six charges related to wire and bank fraud back in November. The ex-CEO of Palmetto State Bank became the first of the disgraced former attorney’s accomplices to face prison time following the June 2021 shooting deaths that stemmed from sprawling investigations into the Murdaugh family finances. U.S. District Judge Richard Gergel also ordered Laffitte to pay more than $3 million in restitution, local media reported. Murdaugh will cover a piece of that sum. The former banker has said he will appeal the decision. Murdaugh is serving life without parole for killing his wife, Maggie, and their son, Paul, at the kennels on their 1,700-acre rural estate. Still outstanding are more than 100 other charges encompassing alleged financial crimes from insurance fraud to tax evasion. His trial this winter marked the swift fall from grace for a powerful family whose members served over 80 years straight as the elected prosecutors in tiny Hampton County. Laffitte similarly came from a prominent family that had built an upstanding reputation for Palmetto State Bank. The Independent Banks of South Carolina even honored Laffitte as the banker of the year in 2019. But that good standing tanked over his actions as the court-appointed safeguard for settlement money that Murdaugh won for some of his most vulnerable clients. Prosecutors argued he used the role to elaborately pocket tens of thousands of dollars and collect as much as $450,000 in untaxable fees. The position also allowed him to send large chunks toward Murdaugh — who had grown desperate to repay mounting loans as an opioid addiction further depleted his accounts. Laffitte acknowledged by name each victim sitting in the Charleston federal courthouse on Tuesday, local media reported. He apologized for not fulfilling his duties to them. He apologized to the judge for erring in his judgment. And he apologized to Palmetto State Bank customers for failing them. Still, Laffitte continued to maintain his innocence. He has insisted for months instead that he didn’t know he was committing crimes and was manipulated by a major customer. The defense sought a reduced sentence of three to five years imprisonment. Relatives, friends and business acquaintances vouched for his character in letters submitted to court. His lawyers pointed to his professional ruin and lack of prior criminal record as evidence that a stiff penalty is not necessary to deter future crimes. “In addition, the name ‘Russell Laffitte’ is now known throughout South Carolina and beyond, and not in a good way — Russell will be forevermore tied to Mr. Murdaugh and known infamously as ‘the Murdaugh banker,” they wrote in a July 28 memo. Prosecutors asked the judge to put Laffitte behind bars for at least nine years. Rebuffing the claims of ignorance, they noted that the diverted checks were made payable to Palmetto State Bank and not Laffitte as the overseer of the funds. The sophisticated move, they argued, intentionally concealed the final destination. A lengthier prison stay is also necessary to atone for the damaged public trust in banking, prosecutors wrote in a July 27 memo. “The Government does not dispute that Murdaugh is the more culpable actor in the criminal conspiracy, or that Murdaugh benefited more from the scheme,” the prosecution wrote. “But the Defendant was the only person who could have stopped him. Instead, the Defendant enabled him. Repeatedly.” ___ James Pollard is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
North Carolina Gov. Cooper isn’t sold on tax-cut restrictions by Republicans still finalizing budget 2023-08-01 - RALEIGH, N.C. (AP) — North Carolina Democratic Gov. Roy Cooper said on Tuesday he’s skeptical that an apparent tax agreement by Republican legislative leaders within a state budget that’s still being negotiated would over time protect revenues to fund pressing needs within government. House Speaker Tim Moore and Senate leader Phil Berger provided on Monday few details about the tax deal they said has been reached, except that it would reduce the individual income tax rate beyond a downward trajectory of 3.99% in 2027 that’s already in state law. And they said deeper rate cuts couldn’t happen unless the state’s coffers first reach certain revenue levels, as a bulwark against fiscal shortfalls. Cooper has opposed repeatedly across-the-board individual and corporate tax cuts already enacted by Republicans because he believes they unfairly benefit the wealthy. Speaking to reporters following a monthly meeting of 10 statewide elected officials called the Council of State, Cooper suggested those proposed revenue “triggers” may be ineffective. “What I hope is that they have come up with a tax plan that would make it difficult ... to give those tax breaks for the wealthiest and corporations,” Cooper said. “But I have my doubts about that.” His own budget proposal this year would have blocked upcoming tax reductions already on the books for the highest wage earners and corporations, but Republican ignored the idea. The 2.5% corporate income tax rate is already on track to fall to zero in 2030. Cooper has said additional tax cuts will threaten the state’s ability to fund public education adequately in the years ahead. Lawmakers had aimed to get a two-year state budget in place before the current fiscal year started July 1, but negotiations slowed over taxes and how to distribute billions of dollars for reserves. Final budget votes could happen in mid-August. Cooper could veto the measure, but Republicans have veto-proof majorities in both chambers and could complete an override. A requirement in the Medicaid expansion law that Cooper signed in March that says a state budget law must be enacted before expansion can be implemented may force the governor to swallow policy provisions in the budget that he’s uncertain about or dislikes. Those provisions could include a large expansion of taxpayer-funded scholarships for K-12 student to attend private schools, which he strongly opposes. And lawmakers are talking about authorizing up to four casinos — an idea that Cooper said has many unanswered questions. More gambling “is a significant issue and one that requires scrutiny and public input” and should be run separately from the budget, Cooper said. Council members who run standalone state agencies and are awaiting a final budget to learn how many more positions they’ll have to fill. They include Secretary of State Elaine Marshall, a Democrat at the job since 1997, who runs an office that registers corporations, oversees legislative lobbyists, commissions notaries and investigates securities fraud. During the council meeting, Marshall pleaded for legislators to give her department more resources to handle a soaring workload. Since the coronavirus pandemic began, Marshall said, her agency has had to respond to a 70% increase in new business creations. The department has an annual budget of $18 million and fewer than 200 employees, she said. “We are on the brink of a crisis,” Marshall said. “We continue to communicate with the General Assembly leadership that they must provide additional staff positions to keep up with this beneficial but torrid business filing pace.” Republican council members — Labor Commissioner Josh Dobson and Agriculture Commissioner Steve Troxler among them — have also in recent months urged legislators to provide more funding to raise salaries and reduce high job vacancy rates.
Michigan prosecutors charge Trump allies in felonies involving voting machines, illegal ‘testing’ 2023-08-01 - LANSING, Mich. (AP) — A former Republican attorney general candidate and another supporter of former President Donald Trump have been criminally charged in Michigan in connection with accessing and tampering with voting machines after the 2020 election, according to court records. Matthew DePerno, a Republican lawyer who was endorsed by Trump in an unsuccessful run for Michigan attorney general last year, was charged with undue possession of a voting machine and conspiracy, according to Oakland County court records. Daire Rendon, a former Republican state representative, was charged with conspiracy to commit undue possession of a voting machine and false pretenses. A lawyer listed on court documents as representing Rendon could not be immediately reached for comment by phone. Both were arraigned remotely Tuesday afternoon, according to Richard Lynch, the court administrator for Oakland County’s 6th Circuit. A special prosecutor, D.J. Hilson, has been reviewing the investigation and considering charges since September. He convened a grand jury in March to determine whether criminal indictments should be issued, according to court documents. In a statement, Hilson said the charges were authorized by “an independent citizens grand jury,” and that his office did not make any recommendations. Those charged in Michigan are the latest facing legal consequences for alleged crimes committed after embracing Trump’s lie that the 2020 election was stolen. The charges come as the former president is investigated for election interference in Georgia. Separately, Trump said in mid-July that he is a target of a federal investigation into efforts to overturn the results of the 2020 presidential election. DePerno, whose name was incorrectly listed as “DeParno,” in court records, was named as a “prime instigator” in the case. He could not be reached by phone immediately for comment but has previously denied wrongdoing and has accused the state attorney general of “weaponizing her office.” Five vote tabulators were taken from three counties in Michigan to a hotel room, according to documents released last year by Attorney General Dana Nessel’s office. Investigators found that the tabulators were broken into and “tests” were performed on the equipment. They said that DePerno was there. Nine individuals, including DePerno and Rendon, were named by Nessel’s office as having been involved in the scheme. When asked whether the broader investigation continues, Hilson, the special prosecutor said in an email “Still more to come unrelated to the individuals currently charged.” Because Nessel ran against DePerno in 2022, she secured a special prosecutor who wouldn’t have a conflict of interest in the case and could operate independently. Charges were slow to come in the case, in part because prosecutors wanted clarification from a judge about what constitutes illegal possession of a voting machine. Some of the defendants argued that local clerks gave them permission to take the machines. In July, a state judge ruled that it’s a felony to take a machine without a court order or permission directly from the Secretary of State’s office. That felony is punishable by up to five years in prison.
Maine’s biggest newspaper group is now a nonprofit under the National Trust for Local News 2023-08-01 - PORTLAND, Maine (AP) — With advertising shrinking and newspapers vanishing, Maine’s largest newspaper group became the latest to try a nonprofit model with the completion of the sale of more than 20 daily and weekly newspapers, including the Portland Press Herald. The National Trust for Local News, which already owns two dozen newspapers in Colorado, is expanding its portfolio through the purchase of five daily newspapers and 17 weekly newspapers that were part of Masthead Maine. Former Masthead owner Reade Brower retained ownership of several weeklies that weren’t part of the deal. The newspapers will now fall under the umbrella of the Maine Trust for Local News with the closing of the deal, announced Tuesday. Terms of the transaction were not disclosed. The deal, which covers all of the state’s daily newspapers except the Bangor Daily News, represents a trend toward a nonprofit business model as newspapers continue to struggle. “I wouldn’t say it’s sweeping the country but we’re seeing this trend. And it’s a healthy one. Commercial news organizations are struggling from loss of advertising revenue,” said Tim Franklin, senior associate dean and leader of the Local News Initiative at Northwestern University’s Medill School of Journalism. The transformation from a commercial business to a nonprofit was a positive outcome compared to other alternatives including corporate ownership that could have been more focused on making making cuts to maximize profits, executives told Portland Press Herald employees at a meeting and celebration in South Portland. “Too many corporate news owners across the country have abandoned their missions in the name of short-term profits. That will not happen here,” Steve Greenlee, editor of the Portland Press Herald, told The Associated Press in an email. Former Masthead Maine CEO Lisa DeSisto will continue her leadership role as CEO and publisher of the Maine Trust for Local News. Local news is in crisis with the nation losing a quarter of its newspapers since 2005 and advertising revenue declining by as much as 80% over a decade, Franklin said. Reade Brower, the newspapers’ former owner, purchased MaineToday Media, the parent company of the Press Herald, the Kennebec Journal and Morning Sentinel, in 2015 and added newspaper groups and newspapers over the next several years. He announced in March he was considering selling his media holdings and said he was open to different ideas, including operating the newspapers as a nonprofit. There is plentiful foundation and philanthropic money spent on digital startups and niche publications, so it’s encouraging to see them purchasing a traditional entity with credibility instead of chasing something that’s “shiny” and new, Franklin said. ___ Follow David Sharp on X, the platform formerly known as Twitter, @David_Sharp_AP
CEO Brendan Quirk narrows the focus of USA Cycling with an eye on worlds and the Olympics 2023-08-01 - It would be an understatement to say that Brendan Quirk took over an organization in turmoil when he moved from his spot as USA Cycling’s chairman of the board to the office of the chief executive in December 2021. The national governing body had churned through CEOs for more than a decade, each with their own vision and ideas but never staying long enough to implement them. Some wanted USA Cycling to be a vehicle to get more people on bikes, tapping into the recreational market, while others wanted to build up lower level and domestic racing programs. Quirk wants all of that to happen, of course, but more as a byproduct of a sharpened focus on Team USA’s elite athletes, the ones that will be competing over the next 10 days at the world championships in Scotland and the Paris Olympics next summer. “There was a period where I think the leadership here tried to become the signature cycling organization across America and the truth is that’s not our mission,” said Quirk, who has held a USA Cycling license since the 1980s. “We have really tried to focus our strategic plan and make it hyper-focused on our mission to compete at the highest levels.” Recreational riders are important, Quirk explains, but there are numerous nonprofits and advocacy groups — perhaps with help from USA Cycling — that are better equipped to lead those efforts. Rather, he wants USA Cycling to follow the lead of governing bodies for many other Olympic sports that are designed to identify, nurture and produce top-end talent. While the American team has done relatively well at the past three Summer Games, given all the changes in leadership, the truth is that Britain, the Netherlands and many other nations have lapped the U.S. in many of the disciplines. “We’ve got a pretty passionately held belief at USA Cycling that there are three things that have grown bike racing in America at the grassroots level: Greg LeMond, Lance Armstrong and Kate Courtney, ” Quirk said, referring to the two Americans who have won the Tour de France and the former mountain bike world champion. “Those are the things that create broad reach and media coverage. That’s what sucks people into the sport, and got me into the sport,” Quirk continued. “It cuts through with these stories of heroes and champions. So I believe that yes, if we win a world title or someone wins Tour stages, that’s going to correlate to growth in cycling as the grassroots level.” Quirk comes from a different background than previous USA Cycling executives. He co-founded Competitive Cyclist, one of the world’s largest online bike retailers, then served as president of the North America section of Rapha, a premier cycling and lifestyle brand. He also was program director for the Runway Group, led by members of the Walmart Inc.-owning Walton family, which has poured millions into cycling infrastructure in Arkansas. Quirk replaced longtime USA Cycling fixture Bob Stapleton on its board in 2019 and was elected chairman in October 2021, two months before former CEO Rob DeMartini stepped down and Quirk was asked to fill the void. Like many organizations, USA Cycling dramatically cut staff during the COVID-19 pandemic, when there was no racing and thus no revenue from licenses. That left Quirk with a spartan staff at first, but it also gave him the opportunity to fill those empty offices with staff members who shared his vision for the future. “We had no revenue and the impact of COVID on racing — it’s barely been a year that racing has been back,” Quirk said. “April 2022 was the first time there was a sense of normalcy. We’re like, 14 months into normalcy. We’ve had to rebuild the staff, and you can only build so quickly. But we feel really good. We’re fully staffed and people are racing.” Racing quite well, too. The U.S. has the reigning Olympic omnium champion in Jennifer Valente. Her teammate, Chloe Dygert, is a threat to win world titles on the track and in the time trial in Scotland. Team USA remains strong in both BMX freestyle and racing. And on the men’s side, the road team is coming off a Tour de France in which it made plenty of headlines over the race’s three weeks. Success in Scotland this week is important. So is winning medals at the Paris Games next summer. But the long-range goal, Quirk said, is to put the U.S. in position to compete in every discipline at the 2028 Summer Olympics in Los Angeles. “It’s kind of mission impossible, but you know what? We’re turning it around,” he said. “2023 will be the first year since 2012 that we will have year-over-year growth in membership and year-over-year growth in racing days. The key metrics where you want to say: ‘What’s the temperature check? Is the business going on the right direction?’ They’re going in the right direction.” ___ AP Olympics: https://apnews.com/hub/2024-paris-olympic-games
Lumen Technologies shares slide after posting loss of nearly $9 billion 2023-08-01 - A street sign marks Wall Street outside the New York Stock Exchange (NYSE) in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs/File Photo Aug 1 (Reuters) - Lumen Technologies (LUMN.N) reported a massive quarterly net loss of $8.74 billion on Tuesday, hurt by an impairment charge of nearly $9 billion in the second quarter. Shares of the Monroe, Louisiana-based company, which has lost more than 61% of their value this year, dropped more than 8% in trading after the bell. The company, whose second-quarter loss was more than four times its $2 billion market capitalization, recorded a steep fall from a profit of $344 million a year ago. Lumen said it recorded a non-cash impairment charge of $8.8 billion in the quarter, triggered by a sustained decline in their share price and variance in the market valuation in the April-June period. The telecommunication services company has been experiencing continued weakness along with massive debt, while a decline in traditional internet services has hurt its top-line growth. The company said its long-term debt at the end of the second quarter was $19.9 billion, down from $20.42 billion, at the end of last year. Lumen is undergoing a tedious digital transformation process as it tries to navigate digitizing its operations in an already inflation-hit and competitive economy. It still has a long way to see satisfactory profitability as it faces stiff competition from wireless carrier. Lumen also shuttered its non-value adding businesses, a move which while being positive to its long-term growth, is affecting its near-term results. Revenue in the second quarter stood at $3.66 billion, narrowly missing analysts' average estimate of $3.67 billion, according to Refinitiv data. Reporting by Yamini Kalia in Bengaluru Our Standards: The Thomson Reuters Trust Principles.
AMD forecasts challenger to Nvidia AI chip to launch in 4th quarter, shares rise 2023-08-01 - A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Aug 1 (Reuters) - Advanced Micro Devices (AMD.O) on Tuesday forecast a strong fourth quarter and expects to have artificial-intelligence hardware that can challenge Nvidia (NVDA.O) chips by then. Shares were up roughly 3.5% in after-hours trading. AMD CEO Lisa Su said AMD is set to ramp production of its MI300 artificial-intelligence chips in the fourth quarter. The MI300 AI accelerator chips are designed to compete against the advanced H100 chips already sold by Nvidia, though they are in short supply. Su said customer interest in the company's MI300 series chips is "very high" and that AMD expanded its work with "top-tier cloud providers, large enterprises and numerous leading AI companies" during the third quarter. Investors are betting AMD could one day challenge Nvidia in the surging market for advanced AI chips when AMD releases a competing product later this year. AMD has not given a detailed full-year forecast but said it expects sales in its data center business that will contain MI300 sales to be higher in 2023 than 2022's $6.04 billion total. Jenny Hardy, portfolio manager at GP Bullhound, which owns Nvidia and AMD stock, said that Nvidia still faces supply constraints, leaving an opening for AMD's chip. "So if AMD can ramp production and launch those MI300 chips in the fourth quarter, they will likely see strong demand because plenty of people cannot get their hands on Nvidia chips. So we would assume that AMD can effectively kind of fill some of that supply-demand gap," Hardy said. For the second quarter, revenue at AMD’s data center business fell 11% to $1.32 billion, while revenue at its client business fell 54% to $998 million from $2.2 billion a year ago. Large cloud players like Microsoft (MSFT.O) and Google plan to ramp up spending on data centers in the second half of the year and that spending will skew toward AI chips and infrastructure, analysts said. However, PC shipments decline has moderated and demand has started showing signs of improvement. "Looking to the third quarter, we expect our Data Center and Client segment revenues to each grow by a double-digit percentage sequentially driven by increasing demand for our EPYC and Ryzen processors, partially offset by Gaming and Embedded segment declines," said AMD finance chief Jean Hu. The company forecast current-quarter revenue of about $5.7 billion, plus or minus $300 million. Analysts polled by Refinitiv expect revenue of $5.82 billion. Reporting by Chavi Mehta in Bengaluru and Max A. Cherney in San Francisco Additional reporting by Stephen Nellis in San Francisco Editing by Arun Koyyur, Sayantani Ghosh and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles.
Insurer AIG profit beats estimates on gains in life and retirement unit 2023-08-01 - The AIG logo is seen at its building in New York's financial district March 19, 2015. REUTERS/Brendan McDermid/File Photo Aug 1 (Reuters) - American International Group (AIG.N) exceeded second-quarter profit expectations on Tuesday, driven by growth at its life and retirement unit and lower-than-expected catastrophe losses in what was a very expensive quarter for the industry. AIG, one of the world's biggest commercial insurers, said net premiums written in its general insurance arm for the quarter ended June grew 10% to $7.5 billion. Adjusted after-tax income attributable to common shareholders climbed to $1.75 per share from $1.39 a year ago. Analysts on average had expected $1.59, according to Refinitiv data. AIG's life and retirement unit saw a 42% jump in premiums and deposits, partly helped by record sales in fixed index annuities. Total consolidated net investment income rose 37% to $3.6 billion, helped by higher income from fixed maturity securities and loan portfolios due to the higher reinvestment rates. The New York-based company's general insurance underwriting income fell 26%, hurt by $250 million in total catastrophe-related charges mainly related to U.S. storms and Typhoon Mawar, which hit the Western Pacific Island of Guam in May. Reinsurance broker Gallagher Re preliminarily pegged global insured losses from natural hazards in the first six months of 2023 at $52 billion, while weather and climate events alone were expected to have driven an insurance bill of $46 billion. Last month, peer insurer Travelers Companies (TRV.N) reported a 98% slump in quarterly profit, as severe storms in parts of the United States caused the insurer's catastrophe losses net of reinsurance to jump to $1.48 billion. AIG's general insurance accident year combined ratio was 88%, compared with 88.5%, a year earlier. The metric excludes catastrophe losses and a ratio below 100 signifies that the insurer earns more from premiums than it pays out in claims. AIG also said it increased its share repurchase authorization to $7.5 billion. Reporting by Noor Zainab Hussain in Bengaluru Our Standards: The Thomson Reuters Trust Principles.
Starbucks misses quarterly sales estimates, China sales buoy 2023-08-01 - A Starbucks sign is shown on one of the company's stores in Los Angeles, California, U.S. October 19, 2018. REUTERS/Mike Blake/File Photo Aug 1 (Reuters) - Starbucks (SBUX.O) missed market expectations for quarterly comparable sales on Tuesday, with demand for its coffees and cold drinks both in the North American and international markets showing some signs of tapering even as China sales rebounded. Shares of the Seattle, Washington-based company fell marginally in extended trading even as it topped Wall Street estimates for quarterly profit, helped by higher prices and easing cost inflation. While Starbucks has rushed to cash in on its younger, wealthier customer base by launching new drinks in the United States, including a Chocolate Java Mint Frappuccino and White Chocolate Macadamia Cream Cold Brew this year, its quarterly transactions climbed just 1% in North America, slowing from a 6% increase in the previous quarter. However, the company saw a sharp recovery in China, with comparable sales surging 46% even as the average amount spent per customer during a store visit declined 1% in the quarter. While the 7% rise in North America comparable sales was "definitely a light number relative to expectations... people are really looking at this rebound that (Starbucks is) seeing in China... China I think is what's holding the stock up here," said Sante Faustini III, director of product intelligence at research firm M Science. The movement of people throughout China -- tracked through subway rides -- rose roughly 128% in the second quarter and returned to 2019 pre-pandemic levels, according to analysts at BofA Global Research, noting sales trends at Starbucks typically coincide with subway traffic data. Global comparable sales at Starbucks rose 10% in the third quarter, compared with analysts' expectations for a 11.8% rise, according to Refinitiv IBES data. In its international segment, same-store sales rose 24%, also missing estimates of 25.7%. Still, the company expanded its operating margin to 17.4% in the quarter ended July 2, from 16.9% in the prior year, as easing costs of commodities helped offset impact from increased investment in wages and worker benefits. Excluding items, Starbucks posted a profit of $1 per share, beating analysts' average estimate of 95 cents. Reporting by Deborah Sophia in Bengaluru and Kailyn Rhone in New York; Editing by Devika Syamnath and Susan Heavey Our Standards: The Thomson Reuters Trust Principles.
Tinder-parent Match sees third-quarter revenue above estimates on strong user growth 2023-08-01 - The dating app Tinder is shown on a mobile phone in this picture illustration taken September 1, 2020. Picture taken September 1, 2020. REUTERS/Akhtar Soomro/Illustration/File Photo Aug 1 (Reuters) - Match Group (MTCH.O) forecast revenue for the third quarter above Wall Street estimates on Tuesday, as the Tinder parent expects stronger marketing to drive user growth, sending its shares up about 11% in extended trading. The company is benefiting from the launch of more flexible subscription plans. Its cheapest plans for smaller durations have drawn inflation-hit consumers, who are looking to cut discretionary spending. The international expansion of Match's dating app Hinge and the rising adoption of its premium plan are also boosting revenue. The company is also banking on growing advertising revenue from its diverse portfolio of dating apps, as brands move to increase ad expenditure on signs of improving consumer sentiment through the rest of the year. Tinder said it has turned its attention to an important product refresh in the second half of the year, to better satisfy its core Gen Z audience. Match said it is also on track to launch Tinder's high-end membership in the early fall, adding that it plans to continue its marketing efforts as it approaches the back-to-school season. The company forecast revenue between $875 million and $885 million for the third quarter. Analysts are expecting $863.8 million, according to Refinitiv IBES data. It posted adjusted operating income of $301 million in the second quarter, compared with market estimates of $278.5 million. Match said Tinder's "It Starts with a Swipe" campaign was crucial in lifting new user signups, particularly among young women. It also said there has been strong demand for its weekly subscription packages, which benefited Tinder's revenue. The company posted a revenue of $830 million in the second quarter, compared to analysts' estimate of $811.4 million, according to Refinitiv IBES data. However, paying users across its dating apps fell 5%, to 15.6 million, in the three months ended June 30. Reporting by Akshita Toshniwal and Akash Sriram in Bengaluru; Editing by Pooja Desai Our Standards: The Thomson Reuters Trust Principles.
Trump indicted by special counsel over efforts to overturn 2020 election 2023-08-01 - Former President Donald Trump on Tuesday received another hit from the U.S. legal system, as a grand jury in Washington, D.C. indicted him in connection with the Justice Department’s probe into efforts to overturn the 2020 presidential election, including the Jan. 6, 2021, attack on the U.S. Capitol. Special counsel Jack Smith has been examining Trump’s actions leading up to the Jan. 6 attack. On that day, a mob of Trump supporters stormed the Capitol building in an attempt to disrupt the congressional certification of the election results. In Tuesday’s 45-page indictment, Trump was hit with four charges: conspiracy to defraud the U.S., conspiracy to obstruct an official proceeding, obstruction of and attempt to obstruct an official proceeding and conspiracy against rights. He is expected to be arraigned on Thursday in Washington, D.C. The indictment said Trump had six co-conspirators, and it indicated that four of the individuals were attorneys, one was a political consultant and another was a Justice Department official. Trump has denied wrongdoing and is the overwhelming favorite in polls for the GOP nomination for the 2024 presidential race, far ahead in a crowded field that includes Florida Gov. Ron DeSantis, former Vice President Mike Pence, former New Jersey Gov. Chris Christie and entrepreneur Vivek Ramaswamy. The former president on July 18 said he’d gotten a letter informing him he is a target of that probe. He said he anticipated being indicted. Read: Trump says he’s a target of special counsel Jack Smith’s Jan. 6 case The indictment ratchets up legal pressure for Trump as he seeks the 2024 GOP nomination. The former president is already facing federal charges in Florida that he mishandled classified documents after leaving the White House, and criminal charges in New York over a hush-money case. A separate election-interference investigation is underway in Georgia. An indictment does not disqualify Trump from mounting a White House campaign. The only requirements to run for president, as laid out in the Constitution, are being a natural-born citizen at least 35 years old and a resident of the U.S. for 14 years. Washington Watch: Donald Trump indicted again. Can he still run for president?
Office loan delinquencies touch 5% in July as rates, tighter lending conditions bite 2023-08-01 - Higher rates and tighter financial conditions took a bigger toll on the U.S. commercial mortgage market last month as more borrowers fell behind on debt payments. The delinquency rate of commercial property loans that Wall Street packaged into bond deals increased 51 basis points in July to 4.41% for loans at least 30 days past due, according to Trepp, which tracks commercial mortgage-backed securities market data. It ticked even higher to 5% for office loans, a segment of the market that’s been a worry for the Federal Reserve and the Treasury Department, including as prices for half-empty buildings wobble and as trillions of dollars in debt matures in a regime of higher borrowing costs. See: The $1 trillion ‘wall of worry’ for commercial real estate that spirals through 2027 The below chart shows the sharp uptick in office loans in commercial mortgage-backed securities deals since December. While Wall Street bond deals are backed by dozens of loans on a range of property types, retail loans still had the highest delinquency rate of 6.9% in July, followed by lodging at 5.9%, according to Trepp. Trepp While the sector’s overall loan delinquencies now sit at the highest level since December 2021, they still remain below the 10.3% record set in July 2012 in the wake of the global financial crisis. However, with the benchmark 10-year Treasury yield TMUBMUSD10Y, 4.032% pushing back above 4%, rates on commercial mortgage loans aren’t expected to soon retreat back to an era of cheap debt. “While the rest of the U.S. economy has seen relief in terms of higher equity prices, better-than-expected corporate earnings, and falling inflation numbers, the commercial real estate (CRE) market continues to be left behind,” Trepp analysts wrote, in a Tuesday client note. The S&P 500 index SPX, -0.27% closed Tuesday less than 5% below its record finish in January 2022, while the Dow Jones Industrial Average DJIA, +0.20% ended 3.2% off its last record finish, according to Dow Jones Market Data. Read next: San Francisco’s push to turn office buildings into homes hinges on this simple idea
Here’s what the Oligarch Act, the Democrats’ latest wealth-tax bill, is trying to do 2023-08-01 - “‘We want to let the country know that some people want to do something about this, and others don’t want to do something about it. Maybe they think that what makes America great is gross inequality.’” The biggest backers of a new tax-the-rich proposal called the Oligarch Act admit that the bill doesn’t stand a chance in a Republican-controlled U.S. House of Representatives, but they say it’s important to continue to bring attention to growing economic and political inequality. The Patriotic Millionaires — a group that has been pushing for higher taxes on the rich for more than a decade — say that as of 2018, the richest 0.1% of U.S. households held one-fifth of the nation’s wealth. In addition, the group says that the more than 700 billionaires in the U.S. got even richer over the past few years because of the coronavirus pandemic, adding more than $1 trillion to their collective wealth. A bill introduced in the House last week seeks to establish a new tax that would rise and fall with U.S. median household wealth. The legislation, introduced by Democratic Reps. Barbara Lee of California, Summer Lee of Pennsylvania, Jamaal Bowman of New York and Rashida Tlaib of Michigan, was backed by the Patriotic Millionaires. The group has long said that economic and political inequality threatens business, society and the nation. Morris Pearl, the chair of the Patriotic Millionaires and a former BlackRock executive, acknowledged in an interview with MarketWatch on Monday that the House, which is majority Republican, isn’t likely to pass a bill that calls for new taxes. But, he said, “civil-rights bills were first introduced during the Truman administration and finally passed under Lyndon Johnson. Sometimes things take time.” The legislation would establish four brackets for the new tax: 2% for all wealth between 1,000 and 10,000 times median household wealth 4% for all wealth between 10,000 and 100,000 times median household wealth 6% for all wealth between 100,000 and 1,000,000 times median household wealth 8% for all wealth over 1,000,000 times median household wealth Lee, who introduced the Oppose Limitless Inequality Growth and Restore Civil Harmony (OLIGARCH) Act last week, sought to draw a contrast between Democrats and Republicans in a statement to MarketWatch on Monday as she referred to a package of tax cuts introduced by Republicans last month: “Decades of Republican tax cuts for the wealthy and well-connected have created a dangerously unequal society that is both a threat to our economy and democracy. As my colleagues on the other side of the aisle prepare to force yet another GOP tax scam through the House, the Oligarch Act presents an alternative future to the American people: one where the middle class thrives and inequality is reined in.” The bill also calls for the Internal Revenue Service to audit at least 30% of the households that would be subject to the tax. John Buhl, a spokesperson and analyst for the Urban-Brookings Tax Policy Center, said Monday that “given the divided government we have and the looming 2024 election, it’s hard to see many substantive bills moving forward and getting to the president’s desk. That’s even more true in the case of taxes, I think.” Buhl also said the legislation could create some unintended consequences, such as incentivizing more speculative investing. “Because a wealth tax targets your net worth instead of your net earnings, some taxpayers could respond by being even more speculative with their investments,” Buhl said. “Chasing higher yield can be beneficial in some instances, but other times you get the cryptocurrency/Web3 gold rush that came crashing down last year.” Still, Buhl said, “it’s hard to argue that the current system is working, if addressing inequality is the policy goal.” From our archives (April 2023): ‘We want to pay more taxes,’ ultra-wealthy Americans tell Congress on Tax Day