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Redlining was outlawed 55 years ago, but it’s still hurting heart health today 2023-07-14 - Living in a formerly redlined neighborhood may be linked to higher risk of a major adverse cardiovascular event, like a stroke or a heart attack, despite the racist lending practice being outlawed more than 50 years ago, according to a new study published in JAMA Network Open. “Our nationwide study demonstrates that a century-old practice like redlining still affects our nation’s health today,” Salil Deo, an associate professor of surgery at Case Western Reserve University’s School of Medicine and cardiac surgeon at the VA Northeast Ohio Healthcare System, said in a news release this week. Redlining, which refers to the color-coded maps created across hundreds of cities in the 1930s to classify mortgage-lending risk based on neighborhood, systematically cut certain communities off from investment and further entrenched segregation, as communities with a greater share of Black residents were often marked in red. From the archives (March 2023): Bank accused of concentrating branches in white neighborhoods will settle discrimination allegations for $9 million: Justice Department From the archives (May 2022): How racist policies and segregation marginalized Buffalo’s Black communities Nearly a century later, those formerly redlined neighborhoods are still linked to poorer health outcomes, higher poverty rates and lower home values, while the people living in them are disproportionately Black residents and other people of color. Studies have also shown that modern-day redlining continues today. In an effort to see whether redlining could also be associated with adverse cardiovascular events, researchers affiliated with hospital systems in Ohio and Texas drilled into health data from tens of thousands of veterans. They examined a retrospective cohort of nearly 80,000 veteran patients receiving care for pre-existing cardiovascular disease between the beginning of 2016 and the end of 2019. They also used patients’ self-reported address data and redlining maps from the Home Owners’ Loan Corporation, which assigned neighborhoods a letter grade ranging from A to D, to see if there was an association. After following up with veterans at a median of four years and checking whether they had experienced a major adverse cardiovascular event, the researchers found those living in formerly redlined neighborhoods with a “D” grade, or those ranked poorly for investment, had a 14% higher risk of such negative heart health outcomes and a 13% higher hazard of death from all causes overall when compared to those living in the wealthier, whiter neighborhoods that were graded “A.” “This risk was lower, yet remained significant, after adjusting for social vulnerability and comorbidity burden,” the researchers wrote. “To our knowledge, few prior studies have linked neighborhood redlining and cardiovascular outcomes.” Future studies on the issue, Deo said, should try to “better define the reasons for the observed relationships between intergenerational inequities and cardiovascular health.” “These can then be targeted to improve the wellbeing for all individuals,” he said. More from the archives (December 2022): ‘This is classic redlining’: A nonprofit ends its relationship with KeyBank over allegations of failing Black home buyers
WeWork, Carl’s Jr., Unilever and Shell among companies slammed by Yale over operations in Russia 2023-07-14 - WeWork Inc., Carl’s Jr., Unilever PLC and Shell PLC are among around 400 Western companies slammed by the Yale School of Management over their continuing presence in Russia, despite a major retreat from the country by more than 1,000 multinationals. A slew of major Western corporations such as U.S. giants Apple Inc. AAPL, +0.08% , Alphabet Inc. GOOG, +0.70% GOOGL, +0.71% , Amazon.com Inc. AMZN, +0.28% , International Business Machines Corp. IBM, -0.39% and McDonald’s Corp. MCD, -0.09% left Russia in response to Moscow’s devastating invasion of Ukraine. But others still maintain a Russian presence, according to ongoing research by the Yale School of Management Chief Executive Leadership Institute. Of 1,584 global multinational companies in the Yale study, 1,181 were classified as either having withdrawn or suspended all or most of their Russian operations; or having suspended a significant proportion of their business in Russia as of July 2023. But 403 companies are described as either “buying time” while continuing substantive Russian operations or “digging in” and largely conducting business as usual. These companies have been dubbed “the feckless 400” by Yale’s researchers. “While the overwhelming majority of the 1,000+ global companies have kept their promises to exit Russia, we are disappointed that a small handful have seemingly reneged on their initial promises to leave,” Yale professor Jeff Sonnenfeld and his research colleague, Steven Tian, wrote in the research. WeWork WE, -5.49% was among the companies singled out by the researchers. “The famous co-work space real estate company promised to leave Russia in March 2022 — but not only has WeWork not left Russia, anyone can continue to book a workspace in Russia on the WeWork app,” they wrote. “We have full intentions to discontinue operations in Russia and are in the final stages of our divestiture plans,” a spokesperson for WeWork told MarketWatch. Another company criticized by the Yale team was fast-food restaurant chain Carl’s Jr. “Bafflingly, the fast-food chain not only continues to do business in Russia after vague reports of possible withdrawal but is proud of it,” the researchers write, pointing to Russian-language advertisements that regularly appear on the company’s Instagram account. The advertisements show “Russians — overwhelmingly striking young females — feasting on American fast food as if there was nothing out of the ordinary,” the researchers add. Carl’s Jr. has not yet responded to a MarketWatch request for comment. Consumer-goods giant Unilever UL, +0.44% ULVR, +0.47% also was a target of Yale criticism. “Despite ample consumer boycotts, Unilever continues to sell consumer goods into Russia under the guise of ‘essential’ products, like other consumer goods giants — though Cornetto ice cream hardly seems essential,” wrote Sonnenfeld and Tian. Related: Unilever urged to exit Russia: ‘It’s making their hands bloodstained,’ says Economic Security Council of Ukraine Earlier this year, on the anniversary of Russia’s invasion, the Economic Security Council of Ukraine slammed Unilever over its Russian presence. “It’s making their hands bloodstained because of what Russia is doing in Ukraine,” a representative for the Economic Security Council told MarketWatch. The Economic Security Council of Ukraine was set up to develop expertise in identifying and counteracting internal and external threats to Ukraine’s economic security. The Moral Rating Agency, an organization set up after the invasion of Ukraine to examine whether companies were carrying out their promises of exiting Russia, has also targeted Unilever. In a statement released earlier this month the Moral Rating Agency urged Unilever’s new CEO, Hein Schumacher, to “do the moral thing” and exit Russia. Unilever directed MarketWatch to a statement issued in February. “Since March 2022, we have ceased all imports and exports of our products into and out of Russia, and we have stopped all media and advertising spend,” the company said. “We have also ceased all capital flows into and out of the country.” “We continue to supply our everyday food and hygiene products made in Russia to people in the country,” Unilever added. “We understand why there are calls for Unilever to leave Russia. We also want to be clear that we are not trying to protect or manage our business in Russia,” Unilever said. “However, for companies like Unilever, which have a significant physical presence in the country, exiting is not straightforward.” Related: Kremlin could seize Russian assets of U.S. companies, warns Moral Rating Agency The company said it has three options in Russia, one of which is closing down its business, which employs around 3,000 people across four manufacturing sites and a head office. “However, it is clear that were we to abandon our business and brands in the country, they would be appropriated — and then operated — by the Russian state,” the company said. “In addition, we do not think it is right to abandon our people in Russia.” A second option would be to sell the business, but Unilever says that it has not been able to find a solution that avoids benefiting the Russian state and safeguards the company’s people. The third option is allowing the business to run with the constraints Unilever put in place last year. Unilever acknowledges that none of the options is desirable. “Nevertheless, we believe the third remains the best option, both to avoid the risk of our business ending up in the hands of the Russian state, either directly or indirectly, and to help protect our people,” the company said. “We will of course continue to keep this position under close review.” Yale also called out Shell SHELL, -1.58% SHEL, -1.39% SHEL, -2.30% in its research. “Although the energy giant pledged to suspend new purchases of Russian commodities, they are continuing to fulfill existing contracts, taking huge amounts of Russian gas that is crucial to Putin’s revenues,” the researchers said. Environmental and human-rights campaign group Global Witness estimated that Shell has made hundreds of millions of dollars trading Russian liquefied natural gas since Russia’s full-scale invasion of Ukraine in February 2022. “Russia’s LNG exports are helping to finance the country’s war in Ukraine and in 2022 were worth an estimated $21 billion,” the organization said. “Few companies have helped this trade more than Shell.” Related: Russia’s Mir payment system increasingly isolated, but concerns linger about possible stealth links to the outside world The Moral Rating Agency has accused Shell of “compliance washing,” after the energy giant told the BBC that it is not violating laws or sanctions. “Shell has stopped buying Russian LNG on the spot market, but still has some long-term contractual commitments,” a spokesperson for Shell told MarketWatch. “This is in full compliance with sanctions, applicable laws and regulations of the countries in which we operate. We have been clear about this.” “Shell made its decision to withdraw from all Russian hydrocarbons with conviction and we have stopped all purchases of Russian crude oil, as well as cargoes of refined products, such as diesel, exported from Russia,” the spokesperson said. “We also exited all our downstream business in Russia, such as services stations.” The spokesperson added that Shell is no longer part of any joint ventures with Russian energy giant Gazprom with ongoing operations inside Russia. “There is a dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies,” the spokesperson said. “It is for governments to decide on the incredibly difficult trade-offs that must be made.” Read on: Tinder owner Match exits Russia: ‘We are committed to protecting human rights’
Lights, camera, silence: Hollywood actors’ strike halts production on ‘Deadpool 3,’ ‘Venom 3’ and the next part of ‘Mission Impossible 8’ 2023-07-14 - Looks like the show can’t go on. The Writers Guild of America went on strike May 2, which led late-night talk shows and Comcast’s CMCSA “Saturday Night Live” to immediately shut down, along with production on many scripted films and TV shows. “Stranger Things” on Netflix NFLX, “Hacks” on Max and “Family Guy” on Fox FOX all either had their writers’ rooms or their productions paused, for example. But...
The U.S. stock-market rally seems unstoppable, so why does bearishness still persist 2023-07-14 - The U.S. stock-market rally that marked the first half of 2023 continues into the second half, leaving bullish investors clinging to the optimism that has helped the technology-heavy Nasdaq 100 index advance by 42% for the year to date, while bears are trying to time the point when momentum fizzles out and the trend shifts to the downside. The dichotomy between the so-called stock-market bulls — who are optimistic and buy shares in the hope that stock prices will rise — and bears — who believe that the market is headed downward and may attempt to profit from a decline in stocks — has grown wider. “[It’s] almost resembling a political landscape where each side looked at the other with anger and resentment, unable to find common ground,” said Liz Young, head of investment strategy at SoFi, in a Thursday note. “Understandably so, given the plethora of conflicting data — not the least of which is the unexpectedly feverish stock-market rally in the face of leading economic indicators and bond market signals that are clearly waving a red flag.” U.S. stocks extended the rally this week after encouraging inflation readings bolstered the chances that an end to the Federal Reserve’s interest rate hikes might be in sight, while odds of a soft landing, in which inflation returns to close to the central bank’s 2% target without a recession, are improving. The S&P 500 SPX, -0.10% on Thursday cleared the 4,500 mark for the first time since April 2022 while rising to a fresh 15-month high. For the week, it has risen 2.4%, while the Nasdaq Composite COMP, -0.18% has advanced 3.2% and the Dow Jones Industrial Average DJIA, +0.33% has gained 2.3%, according to FactSet data. See: Inflation in the U.S. has cooled off significantly. Great. Here’s what’s not so great. Market analysts told MarketWatch that the debate between bulls and bears will not cease and the sentiment will not turn “full-on bullish” until uncertainties around monetary policy, economic indicators and Treasury yield-curve inversions are resolved. “We’ve still got a monetary tightening cycle that may or may not be done yet. We’ve got leading economic indicators that are flashing contraction — there’s a lot of different signals out there, including yield-curve inversions, that are still saying we are not out of the woods,” Young said in a follow-up interview on Friday. “The debate will continue and I happen to be on the more cautious side of this, particularly with valuations at this level.” “This means that for now, markets are likely to take two steps forward, one step back, unless an event comes along to turn investor sentiment negative again, like most of last year,” said Melissa Brown, managing director of applied research at Qontigo. The surge in valuation of megacap technology stocks including Nvidia Corp. NVDA, -1.10% , Meta Platforms META, -1.45% , Alphabet Inc. GOOGL, +0.71% , has pushed the S&P 500 more than 17% higher so far this year amid the growing optimism surrounding artificial intelligence (AI). However, there is a risk that investors are paying “inflated valuation” for a stock based on AI enthusiasm, but if they do not get the “gratification” from it in the next 12 months, the valuation may not look attractive any more, said Young. “When you buy stocks, you typically buy them on a forward 12-month earnings expectation basis, and although AI may very well be a completely transformative theme that ripples through different industries, it’s probably not going to change it [technology landscape] entirely by the end of this year,” she said. “So what could go wrong is the timeframe expectation.” See: Nasdaq is making a big change to its most popular index. Here’s how it might impact your portfolio. Brown of Qontigo also pointed to the current volatility in the stock market, which has fallen substantially since late March when the concerns about the banking sector dissipated after the sudden collapse of Silicon Valley Bank. The CBOE Volatility Index VIX, -1.98% was at 13.31 on Friday, after recently dropping to its lowest level in more than three years. In general, a VIX reading below 20 suggests a perceived low-risk environment, while a reading above 20 is indicative of a period of higher volatility. However, Brown said her models show that there is an increasingly wide gap between a fundamental model — which analyzes market volatility based on macroeconomic conditions — and a statistical model — which lets the data tell where the volatility is. “The statistical model forecasts much higher risk than the fundamental model and this is the first time this has happened in at least six years and probably longer. So what that tells us is that there’s volatility lurking somewhere… it is bubbling under the surface,” Brown told MarketWatch via phone on Friday. Looming lack of liquidity is another large concern as investors are now “significantly overbought” relative to liquidity, especially among megacap growth stocks, said Raheel Siddiqui, senior research analyst of global equity research at Neuberger Berman. Siddiqui, said in his third-quarter equity-market outlook, that investor euphoria tends to evaporate as liquidity dries up, which is expected to happen soon thanks to a potentially historic withdrawal in coming weeks. He was referring to the Fed’s plan to shrink its balance sheet each month, otherwise known as quantitative tightening, the Treasury’s issuing of new debt to replenish the Treasury General Account after Congress raised the debt-ceiling, and the European Central Bank’s plan to pull €477 billion in TLTRO financing out of the banking system. See: ‘Potent liquidity squeeze’ threatens stock market once debt-ceiling deal is done “In our view, this could spell bad news for equities in the near term,” said Siddiqui. Stock-market optimism decreased but remains above average for the sixth consecutive week in the latest American Association of Individual Investors (AAII) Sentiment Survey. Neutral sentiment and bearish sentiment both increased in the week to Wednesday. However, Young at SoFi said there has been a significant “flip-flop” from investors who were bearish and persistently bearish and have moved over into a bull camp. “Although the absolute level of bulls vs. bears in the chart doesn’t appear to be at extremes, the almost instantaneous reversal in the two is quite extreme,” she said (see chart below). SOURCE: SOFI, BLOOMBERG “Generally, large and swift moves can be followed by large and swift moves back in the other direction as markets and investors attempt to settle on some sort of middle ground,” Young said.
Misinformation and hate speech already rampant on Threads: research 2023-07-14 - Anything goes on Threads — including unfettered misinformation and hate speech. Both are rampant on Meta Platforms Inc.’s META, -1.45% new Twitter-like app, which debuted last week and has been downloaded by more than 100 million people. Threads is overflowing with misinformation on the 2020 election, COVID-19 and vaccines, and gender-affirming care, according to new research from Media Matters. The app is an apparent victim of squishy content-moderation policies. Meta launched Threads without the fact-checking program that aims to prevent the spread of misinformation on Facebook and Instagram, seemingly abandoning the anti-hate-speech policies that govern its other platforms, Media Matters said. “A rush of extremist voices came to Threads — some of the same people on Twitter who drove so many disgruntled Twitter users to Threads,” Kayla Gogarty, research director at Media Matters, said in an interview. Many of those figures, including Nazi sympathizers, anti-gay extremists and white supremacists, flocked to Threads last week and immediately began testing the platform’s content-moderation limits. Gogarty said Meta has “seemingly dropped any pretense of enforcing Instagram’s hate-speech policy that prohibits the anti-LGBTQ ‘groomer’ slur.” This week, civil rights, online-justice and pro-democracy organizations sent a letter to Meta Chief Executive Mark Zuckerberg and other executives imploring the company to “develop and share robust and equitable community trust, safety, and transparency policies specific to the use of Threads.” Meta did not immediately respond to a request for comment.
Once-mighty Canopy Growth loses billions as dream of pot riches runs into reality of oversupply and overspending 2023-07-14 - The town of Smiths Falls, Ont., cheered when Canopy Growth Corp. and its Tweed brand closed a purchase in 2017 of a famed Hershey chocolate plant that had sat vacant for years. As the first major Hershey HSY factory outside the U.S, the location had been a tourist attraction for chocolate lovers for nearly 50 years. But Hershey then dealt an economic blow to Smiths Falls, taking away about 3,000 jobs when it pulled up stakes in 2008. Canopy Growth transformed the sprawling site into its corporate headquarters and set up the largest indoor cannabis-production facility in Canada at the time. At one point, about 1,100 people worked at the plant, and Canopy Growth became the leader in the Canadian cannabis market just as the government was poised to make Canada the first G-7 country to fully legalize cannabis for adult use. Just six years later, things have gone awry. Canopy Growth is shutting down the Smiths Falls facility at 1 Hershey Drive and moving about 400 jobs to its new corporate headquarters across the street. “This news is never easy to hear and it impacted a number of our residents and those who came to work at Canopy,” said Julia Crowder, the manager of economic development and tourism for the town of Smiths Falls. “Our community is resilient and the closure of Canopy is an end to one chapter and an opportunity for something new and better.” No boom, just bust Canopy’s demise comes as the Canadian legal cannabis market is floundering, hurt by oversupply, overspending and government missteps that have prevented any company from making a profit. As the biggest player thanks to a $4 billion investment from Corona beer maker Constellation Brands Inc. STZ in 2018, Canopy has shed the most market capitalization of any company and is now facing a liquidity crisis. On Friday, it disclosed it has until Jan. 8 to regain the $1 minimum price requirement for its stock to keep its Nasdaq listing in compliance. High taxes have ensured that the illicit cannabis market has continued to thrive. A ban on advertising has made it nearly impossible for the new industry to promote itself. And a shortage of retail outlets at the start left companies with nowhere to sell their wares. For now, there’s no sign of a turnaround, and investors are turning their backs. “We’ve been investing in the cannabis space since 2014. Not once have we considered investing into Canada,” said Matt Hawkins, managing partner of Entourage Effect Capital. Some of Canopy Growth’s competitors have gone out of business, like Fire & Flower, or have been acquired, like Hexo, which was bought by Tilray Inc. CA:TLRY. Those that have survived have seen their stock prices swoon. Canopy Growth’s CGC CA:WEED stock, for example, has been trading under $1 a share since May. The stock is down more than 80% so far in 2023, including a fresh slide on Friday after the company announced plans to remove about $333 million of debt from its balance sheet in a deal that will dilute its stock further by issuing shares and debt that’s convertible into more stock. The stock is underperforming the hard-hit Global X Cannabis exchange-traded fund POTX, which has lost about 41% of its value this year. All told, Canopy Growth had lost about $19.35 billion in market value as of Wednesday from its height of $19.68 billion on Feb. 10, 2021, according to Dow Jones Market Data (see chart). Terrence Horan/MarketWatch While that’s the biggest market-capitalization loss of any cannabis company, Canopy Growth is not alone in seeing its market cap go up in smoke. Canopy Growth’s main rival, Tilray Brands Inc. TLRY, had lost $18.76 billion in market value as of Wednesday from its height of $19.94 billion on Sept. 19, 2018. Along with TerrAscend Corp. TSNDF CA:TSND, Cronos Group Inc. CRON CA:CRON, Aurora Cannabis Inc. ACB CA:ACB and SNDL Inc. (formerly Sundial Growers) SNDL, six of the largest Canadian cannabis companies including Canopy Growth and Tilray had lost nearly $62 billion in market cap from their respective heights as of Wednesday. Still one of the most visible cannabis companies in Canada, Canopy Growth has a market cap that now ranks near the bottom of the six at $324 million, well below the $1.2 billion for Tilray and the $588 million for TerrAscend, but ahead of the $209 million for Aurora Cannabis. This meltdown took place despite overall growth in the Canadian cannabis market. Total cannabis sales in Canada rose 17.9% in 2022 to C$4.52 billion (equivalent to $3.35 billion) on regulated adult use from 2021, according to Statistics Canada. Rami El-Cheikh, a partner at EY and leader of the EY Americas Cannabis Center of Excellence, said cannabis companies built up oversized infrastructure based on projections for a sizeable market in Canada and a rapid legalization pace in international markets. U.S. legalization at the federal level had been expected by some optimists but for now remains uncertain at best. “These companies made bold, risky bets and were keen be the first movers in the cannabis sector in Canada and internationally,” El-Cheikh said. “Unfortunately, the cannabis market did not evolve as per the original assumptions and hypotheses made by the cannabis companies.” Now these companies are dealing with an oversized infrastructure with excessive overhead that is preventing them from achieving profitability. Smaller cannabis companies such as OrganiGram Holdings Inc. OGI CA:OGI and High Tide Inc. CA:HITI HITI are doing relatively well in this market environment, however, partly because they didn’t attract large amounts of capital during the cannabis boom years that started around 2018, when Canada legalized adult-use cannabis. “This was a blessing in disguise for the smaller companies,” El-Cheikh said. “It forced them to be lean and mean. Today they’re not overburdened by the same overhead and infrastructure that bigger cannabis companies have. They are more nimble and have been gaining market share.” For its part, last month Canopy Growth issued a going-concern warning as it posted a fourth-quarter loss of C$648 million, compared with a year-ago loss of C$582.5 million, even as revenue dropped 14% to the restated figure of C$101.8 million. Also read: Canopy Growth cuts 1,200 jobs in past year and issues going-concern warning as analyst eyes solvency of cannabis company The auditor’s report included in Canopy Growth’s fourth-quarter filings stated: “The company has material debt obligations coming due in the short-term, has suffered recurring losses from operations and requires additional capital to fund its operations, which raise substantial doubt about its ability to continue as a going concern.” KPMG resigned as Canopy Growth’s independent accountant and was replaced by PKFOD, the company said last month. In another setback for the company, its largest investor, Constellation Brands, has said it does not plan to provide any more capital. Julius Ivancsits, former CFO of Canopy rival Hexo, told MarketWatch that the going-concern language was more than likely triggered not by a lack of liquidity but by internal control issues stemming in part from a probe by the Securities and Exchange Commission into revenue recognition at the company’s BioSteel drink line. Also read: As Tilray buys Hexo, former exec sees more consolidation ahead in Canadian cannabis “As a company, you do not want to disclose this, as it hurts the stock and ability to raise capital,” Ivancsits said. “The auditors placed the language as a bit of a get-out-of-jail card. They raise their hand and this protects them from potential lawsuits. Most of the audit firms are either walking away from cannabis or reducing their exposure. The liability is high and the risk of default — not paying their bills — is increasing.” Once a company discloses going-concern language, it often takes several years to resolve it, he said. “They are in a tough spot with SEC investigation, pricing pressure, lack of leadership and businesses which are not accretive to their cannabis business,” he said. “Add in a likely pending reverse stock split — price below $1 — and Tilray now with No. 1 share. Ouch.” Addressing concerns around the going-concern statement in its filings, Canopy Growth CFO Judy Hong said the company ended fiscal 2022 with $783 million in cash and short-term investments, with “a number of options that are executable over the next several months that will ensure we have sufficient capital to fund our ongoing operations and meet our financial covenants.” The company is taking steps to reduce its operating cash burn, including cost reductions at BioSteel and closing and selling facilities as part of its “asset-light” approach. “We’re also exploring additional options to monetize our noncore assets and businesses, and we’re also in discussions with our lenders and various options to reduce our debt in an accretive manner,” Hong said. None of this seemed to impress Eight Capital analyst Ty Collin, who cut his price target on Canopy Growth to zero from C$1.75 and reiterated a sell rating that he’s had on the stock since late 2021. “We believe it is no longer appropriate to value Canopy as a going concern,” Collin said in a July 5 research note. All gone to look for America Meanwhile, Canopy continues to pursue its plan, aired in October, to separate its U.S. businesses — including Acreage Holdings, Jetty Extracts and Wana Brands — and list the company on the Nasdaq under the name Canopy USA and with an independent board of directors. While U.S. exchanges continue to ban U.S. companies that handle a plant that remains a Schedule I controlled substance, Canopy has tweaked its initial plans in order to comply with listing requirements. Last month, it filed a revised proxy statement, and shareholders will vote at a special meeting. Bruce Linton, who founded Canopy Growth, says the company’s sales have been falling even as the overall Canadian market has grown since he was ousted from the company in 2019. Photo courtesy of Bruce Linton All of these developments have weighed on Bruce Linton, who founded the company in 2013 as Tweed and renamed it Canopy Growth in 2015. The genesis of the 2018 investment by Constellation Brands came after an effort by Linton to draw in capital to fuel growth through a strategic partnership. He approached several liquor giants and pharmaceutical companies but was turned down. Then he saw a 2016 interview with Constellation’s then-CEO Robert Sands about the potential of cannabis. “Why wouldn’t big business, so to speak, be acutely interested in a category of that magnitude?” Sands said in the November 2016 interview with Ad Age. “If there’s a lot of money involved, it’s not going to be left to small mom-and-pops.” After an initial $190 million investment in 2017, Constellation Brands paid $4 billion to raise its stake in Canopy Growth to 39% in 2018. The deal included warrants that effectively gave Constellation control of Canopy Growth. Although the $4 billion investment generated enthusiasm and higher stock prices around the sector, friction soon arose between Constellation Brands and Linton. By the middle of 2019, Linton was ousted as co-CEO of the company he had founded. Some on Wall Street cheered the move after the company’s track record of losses. “While we commend Linton for his vision in establishing the world’s leading cannabis company, we believe new leadership will be a welcome change,” Cowen analyst Vivien Azer said in a research note at the time. A few months later, Canopy Growth named David Klein as CEO. Klein is a 15-year veteran of Constellation Brands and spent time as its chief financial officer. The way Linton sees it, when he left, the company was the leader by market cap, with $4 billion in the bank, low debt and a 26% market share, and it was selling more cannabis than it is today. The stock price was about $56 a share, compared with less than 60 cents a share now. Canopy Growth’s pivot to its asset-light model of cost savings and laying people off will probably not work, he said. “The market has grown by more than three times [since 2019] and they’re down every quarter in sales,” he said. “You can’t cut fast enough to keep up with that kind of deceleration in selling.” Overall, Linton said Constellation has not been able to translate its past success in beer and liquor into the Canadian cannabis market. “In Canada, you can’t market cannabis in the same way as beer,” he said. “You can have very strong earned media, which amounts to social-media postings about the brand or press coverage of a brand, or a mention of a brand from a celebrity, but you cannot purchase advertising to promote cannabis.” Linton also criticized Canopy Growth’s plan to focus on the U.S. market with the creation of Canopy USA. If a company wants to raise more capital, it’s not helpful to have uncertainty around a stock-market listing on the Nasdaq, he said. Canopy Growth’s declining revenues in Canada and its stock price of under $1 will also make it hard to raise capital by issuing stock or by other means, he said. Another once-mighty Canadian company, BlackBerry Ltd. CA:BB BB, is still operating partly because it issued stock when the company shares were trading at much higher levels and then held onto its cash for a rainy day — a path that Canopy Growth should have pursued, Linton said. Sources familiar with Canopy Growth, however, said that the company was disorganized under Linton and that the former executive has not had any internal knowledge of the business in four years. Linton was building up production in Canada, Africa, Latin America and Asia Pacific that was much greater than needed, the source said, and incoming CEO Klein had to move quickly to scale back and reduce cash burn. The entrance to the Hershey plant in Smiths Falls before that company’s exit from the town in 2008, left, and the entrance to the building at 1 Hershey Drive after Canopy Growth acquired it in 2017. Town of Smiths Falls, Ont., economic development unit Meanwhile, the Canadian cannabis market grinds on with efforts to address some of the challenges in its regulatory structure. EY partner El-Cheikh said Canada’s flat excise tax remains problematic because it contributes to making legal products more expensive than illegal cannabis products. There are other issues to resolve as well, along with marketing and promotion restrictions such as potency limits. This year the Canadian government launched the Cannabis Strategy Table in an effort to review the industry challenges and suggest changes. EY produced a report on the Canadian market summarizing the areas of strength and the areas for development since legalization. “The blame for the challenges in the Canadian cannabis industry cannot be just attributed to the government. All industry stakeholders have to work together to find a sustainable solution,” El-Cheikh said. “The expectation is that we’ll see policy changes in the future.” Hawkins from Entourage Effect Capital said Canada will end up being a “decent” cannabis market but will be smaller than most of the larger U.S. states that have already legalized cannabis, such as California. This is Hawkins’s advice for cannabis companies: “No. 1, don’t count on the U.S. moving quickly on this, and secondly, know your market before you start building things out.” Smiths Falls residents were not surprised when Canopy Growth moved to shut down operations at 1 Hershey Drive, because it had already been whittling down its workforce there for some time, said town official Crowder. Canopy Growth is leaving behind a 700,000-square-foot state-of-the art industrial facility and has been approached by interested parties as the town seeks out other businesses to help diversify the local economy, Crowder said. “We want a sustainable business. This could be one or multiple purchasers or tenants,” Crowder said. “There’s a limited supply of large industrial space in Ontario currently. We’re in a good position.”
Create Summer Bliss With Latest Cannabis Products: Freezable Pipe, CBD Gummies, THC-Infused Cones & More - Charlottes Web Holdings (OTC:CWBHF) 2023-07-14 - Welcome to our weekly roundup of the latest cannabis product releases on the market. In this edition, Benzinga presents a selection of products designed to cater to both seasoned cannabis enthusiasts and newcomers, providing an enhanced experience and a refreshing touch for the hot summer days. Glacier by Eyce Eyce, a renowned creator of silicone smoking accessories is celebrating its 10-year anniversary with the launch of the Glacier, a freezable version of their popular smoking pipe designed to provide a refreshingly smooth smoking experience by using ice to cool the smoke. The Glacier features a water chamber that can be frozen, creating chilled surfaces for the smoke to pass through. It has a compact design, measuring 4.7" long and 1.8" wide. The pipe includes a snap-in glass bowl and a stainless-steel poker, both of which can be easily detached for cleaning and reassembled. The magnetic split two-part design further facilitates the cleaning process. Starting from July 13th, the Glacier is available for purchase on the Eyce website - MSRP: $34.99. Image by Eyce See Also: Enjoy Summer Solstice With The Hottest New Cannabis Products: Premium Flower Strains, Infused Gummies, And Pre-Rolls Neno's Naturals Full THC & Ratioed Cream Topical by Exclusive Brands Exclusive Brands, Michigan's vertically integrated cannabis company, announced the addition of two new full THC and ratioed topical cream products to Neno's Naturals wellness line. The products include a full THC 1000mg Chill Heating & Cooling Cream and a ratioed 1000mg CBD/1000mg THC Chill Heating & Cooling Cream, available in-store at Exclusive Brands locations and for delivery in Michigan. Neno's Naturals emphasizes sourcing ingredients from local farmers to support health and communities. The products can be found at Exclusive Brands locations and on Neno's Naturals website. ReCreate CBD Gummies by Charlotte's Web Charlotte's Web Holdings, Inc. CWBHF CWEB recently introduced ReCreate, a lifestyle and botanical wellness brand offering CBD gummies that combine organic broad-spectrum CBD with functional botanicals to meet the diverse needs of wellness-focused consumers. ReCreate recently became the Official CBD of the Premier Lacrosse League (PLL), prioritizing the well-being and recovery of professional lacrosse athletes. Discover Endurance, Muscle Recovery, Brain Support, and Rest gummies each crafted to address specific wellness goals. Find them on ReCreate's website for $29.99. Image by ReCreate See Also: Charlotte's Web Solidifies Position In Sports Industry With ReCreate, Official CBD Of Premier Lacrosse League Gold Label Pre-Roll by Native Roots Native Roots Cannabis Co. introduces the Gold Label Pre-Roll with a glass tip, offering an elevated experience with their premium hand-picked flower. The half-gram joint features a perfect grind and cure, preserving the potency, flavor, and quality of the flower. With booming demand in the pre-roll market, these pre-rolls meet consumer convenience and cost expectations. Available for $8 at Native Roots' 20 locations across Colorado. Image by Native Roots Last Bite by Gelato Canna Co. Gelato Canna Co. introduces Last Bite, a collection of waffle cone treats that celebrate National Ice Cream Day. Available in three classic flavors (Milk Chocolate Caramel, Cookies and Cream White Chocolate and Strawberry Chocolate), Last Bite captures the beloved experience of the last bite of an ice cream cone. Each package contains 10 individual Last Bite cones, with each cone infused with 10mg of THC. These treats can be enjoyed on their own or used as a topping for ice cream sundaes. Gelato's dessert-themed products are distributed in various dispensaries throughout California and Michigan, including their own Gelato dispensary in Lake Elsinore, CA. Image by Gelato Stay informed and connected to the dynamic world of cannabis with Benzinga's regular coverage of the latest products and trends in the industry. If you want to know more about the latest cannabis trends consider joining us at the Benzinga Cannabis Capital Conference in Chicago this Sept 27-28. Get your tickets today before prices go up and secure a spot at the epicenter of cannabis investment, retail, culture and branding. Image generated with Free AI Art Generator // Image license: CC0
Expert Ratings for Earthstone Energy - Earthstone Energy (NYSE:ESTE) 2023-07-14 - Over the past 3 months, 6 analysts have published their opinion on Earthstone Energy ESTE stock. These analysts are typically employed by large Wall Street banks and tasked with understanding a company's business to predict how a stock will trade over the upcoming year. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 2 2 2 0 0 Last 30D 0 0 1 0 0 1M Ago 2 1 0 0 0 2M Ago 0 0 1 0 0 3M Ago 0 1 0 0 0 These 6 analysts have an average price target of $22.83 versus the current price of Earthstone Energy at $14.79, implying upside. Below is a summary of how these 6 analysts rated Earthstone Energy over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock This average price target has increased by 2.84% over the past month. Stay up to date on Earthstone Energy analyst ratings. If you are interested in following small-cap stock news and performance you can start by tracking it here. What Are Analyst Ratings? Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter. Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors. If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro. This article was generated by Benzinga's automated content engine and reviewed by an editor.
Where Edwards Lifesciences Stands With Analysts - Edwards Lifesciences (NYSE:EW) 2023-07-14 - Within the last quarter, Edwards Lifesciences EW has observed the following analyst ratings: Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 7 6 3 0 0 Last 30D 0 1 0 0 0 1M Ago 2 0 0 0 0 2M Ago 1 1 0 0 0 3M Ago 4 4 3 0 0 According to 16 analyst offering 12-month price targets in the last 3 months, Edwards Lifesciences has an average price target of $97.0 with a high of $110.00 and a low of $83.00. Below is a summary of how these 16 analysts rated Edwards Lifesciences over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock This current average has increased by 7.04% from the previous average price target of $90.62. Stay up to date on Edwards Lifesciences analyst ratings. How Are Analyst Ratings Determined? Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are. Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update. Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors. If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro. This article was generated by Benzinga's automated content engine and reviewed by an editor.
Expert Ratings for Ansys - Ansys (NASDAQ:ANSS) 2023-07-14 - Ansys ANSS has observed the following analyst ratings within the last quarter: Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 0 0 5 1 0 Last 30D 0 0 0 1 0 1M Ago 0 0 0 0 0 2M Ago 0 0 0 0 0 3M Ago 0 0 5 0 0 These 6 analysts have an average price target of $316.0 versus the current price of Ansys at $344.25, implying downside. Below is a summary of how these 6 analysts rated Ansys over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock This average price target has increased by 3.78% over the past month. Stay up to date on Ansys analyst ratings. How Are Analyst Ratings Determined? Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders. This article was generated by Benzinga's automated content engine and reviewed by an editor.
If You Invested $100 In This Stock 20 Years Ago, You Would Have $1,000 Today - Texas Instruments (NASDAQ:TXN) 2023-07-14 - Texas Instruments TXN has outperformed the market over the past 20 years by 4.01% on an annualized basis producing an average annual return of 11.85%. Currently, Texas Instruments has a market capitalization of $164.15 billion. Buying $100 In TXN: If an investor had bought $100 of TXN stock 20 years ago, it would be worth $1,011.47 today based on a price of $180.85 for TXN at the time of writing. Texas Instruments's Performance Over Last 20 Years Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time. This article was generated by Benzinga's automated content engine and reviewed by an editor.
Analyst Expectations for EnerSys's Future - EnerSys (NYSE:ENS) 2023-07-14 - Within the last quarter, EnerSys ENS has observed the following analyst ratings: Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 2 2 0 0 0 Last 30D 1 0 0 0 0 1M Ago 1 1 0 0 0 2M Ago 0 1 0 0 0 3M Ago 0 0 0 0 0 These 4 analysts have an average price target of $122.75 versus the current price of EnerSys at $110.68, implying upside. Below is a summary of how these 4 analysts rated EnerSys over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock This average price target has increased by 19.17% over the past month. Stay up to date on EnerSys analyst ratings. How Are Analyst Ratings Determined? Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors. This article was generated by Benzinga's automated content engine and reviewed by an editor.
Here's How Much $100 Invested In Constellation Brands 15 Years Ago Would Be Worth Today - Constellation Brands (NYSE:STZ) 2023-07-14 - Constellation Brands STZ has outperformed the market over the past 15 years by 9.09% on an annualized basis producing an average annual return of 17.93%. Currently, Constellation Brands has a market capitalization of $46.83 billion. Buying $100 In STZ: If an investor had bought $100 of STZ stock 15 years ago, it would be worth $1,171.34 today based on a price of $255.47 for STZ at the time of writing. Constellation Brands's Performance Over Last 15 Years Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time. This article was generated by Benzinga's automated content engine and reviewed by an editor.
Biden throws his support behind Hollywood actors' strike 2023-07-14 - US President Joe Biden gestures as he delivers a speech on NATO at the Vilnius University in Vilnius, Lithuania, after the end of the NATO Summit. 230712 Count President Joe Biden among the supporters of the actors strike in Hollywood. "The President believes all workers — including actors — deserve fair pay and benefits," White House spokesperson said Robyn Patterson in a statement Friday. "The President supports workers' right to strike and hopes the parties can reach a mutually beneficial agreement." Biden, a proponent of organized labor, previously backed striking members of the Writers Guild of America in May, when Hollywood's scribes started picketing. Biden's support for the actors' work stoppage comes as UPS workers prepare for a potential strike, and the nation's auto workers enter potentially contentious negotiations with Ford, General Motors and Stellantis. The White House released the statement a day after the Screen Actors Guild - American Federation of Television and Radio Artists called a strike following the collapse of negotiations with the Alliance of Motion Picture and Television Producers. With writers and actors on the picket lines, Hollywood is essentially shut down. This is the first tandem strike in the industry since 1960. Actors started picketing Friday morning in California. Hollywood performers are looking to improve wages, working conditions, and health and pension benefits, as well as create guardrails for the use of artificial intelligence in future television and film productions. Additionally, the union is seeking more transparency from streaming services about viewership so that residual payments can be made equitable to that seen on linear TV. Similarly, writers in the industry are seeking higher compensation and residuals, particularly when it comes to streaming shows. They're also seeking new rules that will require studios to staff television shows with a certain number of writers for a specific period. The guild also is seeking compensation throughout the process of pre-production, production and post-production. Writers are often expected to provide revisions or craft new material without being paid. Both unions share concerns over the use of artificial intelligence when it comes to script writing. Studios and their executives have pushed back on the unions' demands. Disney CEO Bob Iger told CNBC this week that he believes the writers and actors' expectations are "just not realistic." Democratic California lawmakers have also supported the two strikes, with U.S. Sen. Alex Padilla as well as U.S. Reps. Barbara Lee and Adam Schiff all sharing statements following the SAG-AFTRA strike announcement in favor of fair labor compensation.
U.S. Virgin Islands seeks at least $190 million from JPMorgan Chase in Jeffrey Epstein case 2023-07-14 - U.S. financier Jeffrey Epstein appears in a photograph taken for the New York State Division of Criminal Justice Services' sex offender registry March 28, 2017 and obtained by Reuters July 10, 2019. The government of the U.S. Virgin Islands in a court filing Friday estimated that it will seek damages of at least $190 million from JPMorgan Chase in a lawsuit accusing the big bank of facilitating sex trafficking by its former long-time customer Jeffrey Epstein. The Virgin Islands also said it wants an order requiring JPMorgan to take a series of steps to protect young women and girls from other predators in the future. "These sets of recommendations aim to address the same core problem: JPMorgan's knowledge of and failure to report Epstein's trafficking because it lacked the economic incentive and motivation to place compliance with the law and prevention of trafficking ahead of its own profits," the filing in U.S. District Court in Manhattan says. The American territory also said it will seek further compensatory damages specifically for victims of Epstein beyond the nearly $300 million JPMorgan agreed to pay victims last month to settle a lawsuit by one of his accusers. The filing did not give an amount for those additional damages from the bank, which has staunchly denied any wrongdoing. The new filing came in response to a request last week by Judge Jed Rakoff that the territory detail the damages it seeks in the case as it heads toward a scheduled Oct. 23 trial. The Virgin Islands' suit accuses JPMorgan of benefiting from Epstein's trafficking of young women to be abused by him and others during the 15 years he was a client of the bank, which is the largest in the United States. The complaint alleges JPMorgan allowed Epstein to keep many millions of dollars in accounts at the bank, which he used to fund his trafficking of women, despite multiple red flags about him raised by bank employees over the years. "We are pursuing this enforcement action because JPMorgan Chase's institutional failure enabled Jeffrey Epstein's sex trafficking, and JPMorgan Chase must make significant changes to detect, report and stop human trafficking," said U.S. Virgin Islands Attorney General Ariel Smith in a statement Friday. "Financial penalties, as well as conduct changes, are important to make sure that JPMorgan Chase knows the cost of putting its own profits ahead of public safety," said Smith. She said that if the Virgin Islands wins its suit, it will uses the monetary damages it receives "to support efforts to strengthen, inform, and expand local law enforcement and enhance the Virgin Islands' services for victims of human trafficking and other victims of crime." A JPMorgan spokeswoman, when asked for comment about the filing, indicated for what appears to be the first time that the bank's attorneys have discussed a possible settlement of the lawsuit with lawyers for the Virgin Islands, which would avoid a trial. "This document does not reflect the nature of settlement conversations," said the spokeswoman, Patricia Wexler. " As for the USVI's misdirected damages theories, they are not well founded and are being challenged by JPM in court." It is common in civil litigation for cases to be settled without trial. The filing says the Virgin Islands wants at least $150 million in civil penalties alone. The filing also says that it wants JPMorgan to disgorge at least another $40 million in fees that Epstein generated for the bank, and that JPMorgan received from "many ultra-high net worth clients" he referred to the bank. Those clients, the filing said, included Google co-founder Sergey Brin, Microsoft founder Bill Gates, Lex Wexner, the founder of Limited Brands, and the billionaire Glenn Dubin. In addition to the monetary damages, the Virgin Islands also is asking JPMorgan be compelled "to implement new policies, including separating its business and compliance functions and designating an independent compliance consultant, to prevent human trafficking," according to a press release by Smit's office. JPMorgan in its own court filings has accused the Virgin Islands itself of being "complicit in the crimes of Jeffrey Epstein." The bank alleges Epstein gave high-ranking officials there money, advice and favors in exchange for looking the other way when he trafficked young women to be abused there. Epstein had a residence on a private island in the territory, where accusers say he and other people sexually abused them. Last month in the same court where the Virgin Islands is suing the bank JPMorgan agreed, without admitting wrongdoing, to pay $290 million to victims of Epstein to settle a suit by one of his accusers. In May, Deutsche Bank agreed to pay Epstein victims $75 million to settle a separate lawsuit by an accuser who accused that back of abetting his sex trafficking of her and others. Deutsche Bank took on Epstein as a customer after JPMorgan severed ties with him in 2013, years after bank employees first voiced concerns about him. Deutsche Bank previously agreed to pay New York state's Department of Financial Services a $150 million penalty for failure to detect or prevent millions of dollars of suspicious transactions related to Epstein, which included "payments to Russian models and to numerous women with Eastern European surnames," the filing Friday by the Virgin Islands noted. Epstein, who had been a friend to former Presidents Donald Trump and Bill Clinton, as well as Prince Andrew of Great Britain, pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl. He served 13 months in jail, but spent much of that time on work release each day. Epstein, then 66, killed himself in a federal jail in New York in August 2019, a month after he was arrested on federal child sex trafficking charges.
Investor Bill Ackman, David Sacks' PAC donated to RFK Jr.'s presidential campaign 2023-07-14 - Billionaire hedge fund chief Bill Ackman donated $3,300 in the second quarter to Democrat and anti-vaccine presidential candidate Robert F. Kennedy Jr.'s campaign during the second quarter, according to a Federal Election Commission filing. Ackman's donation came just days after he sided, in a tweet, with Kennedy's broadly debunked skepticism about vaccines. Ackman, the CEO of Pershing Square Capital, explained to CNBC days later: "I listened to RFK on several podcasts and a town hall and thought he raised important issues about vaccines and other issues that were worth learning more about." When asked at the time, he didn't say whether he had donated to Kennedy's campaign. Ackman is one of several prominent business leaders who donated to Kennedy's campaign in the second quarter. The Purple Good Government PAC, a committee that's been largely funded by investor and Elon Musk ally David Sacks, donated $6,600 to the campaign. Ken Fisher, the founder and executive chairman of Fisher Investments, donated $6,600 to the campaign, according to the filing. Veteran Wall Street executive Omeed Malik also donated $6,600 to the Kennedy campaign, the filing says. Malik is hosting a fundraiser for Kennedy in the Hamptons this month. Brett Messing, a partner at Anthony Scaramucci's SkyBridge Capital, also donated the campaign, according to the filing. A donor named Eric Clapton, identified as a musician with an address in England, donated $5,000 to Kennedy's campaign. It wasn't immediately clear if that donor was the same person as the legendary English guitarist Eric Clapton, who has a long history of airing controversial views and released an anti-vaccine and Covid lockdown protest song during the Covid pandemic. The filing notes next to the donation: "refund in subsequent period." Federal law prohibits donations to U.S. campaigns from foreign nationals. The most an individual can give toward helping a candidate in either a primary or general election season within an election cycle is $3,300. A $6,600 donation can be split between the primary and general election accounts. The second quarter spans from April 1 until June 30. Ackman's spokesman declined to comment. A spokeswoman for Sacks did not return a request for comment. Fisher did not return a request for comment. A spokeswoman for Clapton did not return a request for comment. Sacks co-hosted an event in June with fellow tech leader Chamath Palihapitiya that raised approximately $500,000. The Kennedy campaign finished raising over $6 million, with over $4 million on hand. Neither Sacks nor Palihapitiya are listed on the campaign fundraising filing as having contributed toward Kennedy's run. President Joe Biden, Kennedy's rival, raised over $72 million in the second quarter. A June Quinnipiac poll shows Biden with 70 % support among Democrats and Democratic-leaning voters, while Kennedy has 17% among those same groups. CNBC's Kevin Breuninger contributed to this article.
Hollywood actors join writers on strike: ‘There's a lot of bitterness and mistrust’ 2023-07-14 - SAG-AFTRA President Fran Drescher speaks as SAG-AFTRA National Executive Director Duncan Crabtree-Ireland looks on at a press conference announcing their strike against Hollywood studios on July 13, 2023 in Los Angeles, California. Hollywood actors are joining TV and film writers on the picket lines. Every three years, the entertainment industry's various unions negotiate new contracts opposite the Alliance of Motion Picture and Television Producers, which represents studios like Warner Bros. Discovery and Universal Pictures and streaming networks like Amazon and Hulu. Contracts cover the parameters of workers' varied jobs and ensure pay is adequate, health and safety standards are met, and so on. The Screen Actors Guild-American Federation of Television and Radio Artists, the union which represents various performers, entered negotiations surrounding actors' film and television work on June 7 with their contracts set to expire on June 30. Their negotiations ongoing, the organizations agreed to extend actors' contracts until July 12. But on July 13, SAG-AFTRA announced the two parties could not come to an agreement. Later that day, the union officially issued a strike order for its actors. Here's what that means for both them and the industry. 'The business has fundamentally changed' The bottom line of these conversations is in the age of streaming, "the business has fundamentally changed and therefore requires a new way of compensating people," says Paul Hardart, director of New York University's Entertainment, Media and Technology Program. On a granular level, there are several sticking points on which actors and studios could not ultimately agree. They include the following: Wage increases: "SAG-AFTRA wants increases that make up for the high inflation we've had recently," says entertainment lawyer Jonathan Handel. Wages differ depending on performer, but a non-background actor's minimum rate for a film with a total budget greater than $2,000,000 was $3,756 per week at the end of the last contract. Residuals in streaming: "There is a residuals formula already but the union wants an additional formula that would apply to shows that are successful and would reward the actors in excess," says Handel. AI use: "The actors don't want to be displaced by technology and certainly not without being compensated for it," says Handel. AI is currently being used for effects like de-aging an actor, but according to SAG-AFTRA national executive director and chief negotiator Duncan Crabtree-Ireland, among studios' suggestions for AI is the ability to use the likeness of background actors who've been paid for one day's work in perpetuity without pay or consent. The AMPTP has refuted this. Virtual auditions: Historically, actors would go to a physical location to audition. Now, "you tape an audition yourself at home," says Handel. That's meant actors have to take on the job of camera person and editor. They have to makes sure there's someone to read opposite them and that there's an adequate space in their homes to record. "People are finding themselves spending money to apply for jobs," says Handel. Virtual auditions are a sticking point for actor Tallie Medel, who's appeared in films like "Everything Everywhere All At Once" and goes by they/them pronouns. Medel does at least one self-tape per week. If they need to rent out a studio space to do so, those can cost $15 to $40 per hour, they say. "There has to be some sort of compensation for the amount of work we're putting into the self-tapes," they say. As with writers, actors' wages account for taxes, team members such as managers (agents get their own commission on top of actor pay) and for the unpredictability of their industry. "You're working from job to job," says Medel. "There are periods in between where you are not working." "It's a risk." Productions 'shut down' As far as what the strike means for actors' day-to-day work, they're barred from doing the various duties of their jobs including acting, singing and dancing on camera and voice acting and narrating off camera. They're also barred from doing any promotion or publicity surrounding their forthcoming projects. "Oppenheimer" actors left the film's London premiere before its screening on July 13. As it pertains to the rest of the industry, any remaining operations will cease for the time being. "One estimate is that 80% of production is shut down" already, says Handel. "So the remaining 20% will be shut down." And that's "going to harm the legacy companies [like Paramount] more than Netflix," says Handel. First, streaming giants like Netflix don't necessarily need to rely on American talent and can produce internationally. Second, with production halted, streamers' costs go down. But because of their subscription model, "revenues remain the same," says Hardart. 'There's a lot of bitterness and mistrust' For TV and film writers, who've been striking since May 2, having yet another critical union in their business join the fight adds leverage. SAG-AFTRA "is 15 times the size of the Writers Guild," says Handel. "And so that's going to bring a lot of heft, a lot of wind in the sails and energy to the picket lines." But that won't necessarily mean either strike ends anytime soon. "There's a lot of bitterness and mistrust at this point," says Handel, "both in terms of the actors and the studio alliance and also the writers and the studio alliance." In a statement to CNBC Make It, the AMPTP said the following: "We are deeply disappointed that SAG-AFTRA has decided to walk away from negotiations. This is the Union's choice, not ours. In doing so, it has dismissed our offer of historic pay and residual increases, substantially higher caps on pension and health contributions, audition protections, shortened series option periods, a groundbreaking AI proposal that protects actors' digital likenesses, and more." Both Handel and Hardart predict the strikes will continue into the fall. "I would hope that sometime in late September or early October that they'll come to some resolution," says Hardart. 'There's a ripple effect to the economy'
Jim Cramer: I used Apple's new Vision Pro headset — here's what it was like 2023-07-14 - Nobody wants to put a device on their head. You don't want the dorky feeling of sitting down with a mask on to watch a game or a movie. I know I sure didn't when I was selected by Apple (AAPL) to be one of the press people allowed to put on a Vision Pro — the company's new mixed-reality headset announced last month — at a recent briefing. I was skeptical. What's the point? I have two eyes. Why do I need them augmented? Why would I want myself to be cut off from whoever I was with to put this helmet on? Then I did it and realized that nothing would ever be the same. It's that much of a game-changer. Here are five reasons why. 1. It is ridiculously easy to use. This wondrous device is so far ahead of anything yet dreamed up by Hollywood. It has enough cameras inside of it that it can read your eyes and you can have your eyes point to a screen. You press the dial on the top-right of the headset and a menu of apps pops up, like swiping up to home on an iPhone or using the dial button on an Apple Watch. Look at the app you want to select, pinch your fingers together and you're in it. All said, it took five minutes for me to get used to it, and then I was hooked. That simple. 2. The visuals are incredible. What you see is real and actual and the colors are magnificent. You can choose to look at whatever you want to look at and see it on a big screen the size of your living room. That's right — that big. I just got back from Iceland with my kids and I can tell you that I wish I had the Vision Pro because I could decide what I wanted to see by experiencing it first on the headset. I would run through every vacation before I went to make sure I maximized my time. 3. There are so many applications. I found it easy to read books. I liked to look at the pictures I could find in history books. I like to look at paintings and sculptures. All there. I didn't get tickets to Taylor Swift's sold-out (everywhere) Eras Tour, but I know watching it on the VisionPro would feel like you were there. It might even be superior to attending with not-so-hot seats. 4. Television is just better ... This is the best thing, the reason why the VisionPro is a must-have. After using the Vision Pro, I can't imagine watching any of my favorite series on a 70-inch high-resolution TV — it is rendered to junk status by this device. I love The Bear, the Hulu series about a talented young chef. I can't believe I now have to watch it on a 70-inch rather than the Vision Pro. 5. ...especially sports. The tale of the tape. I am an intense viewer of sports and I can't believe how I can be courtside with this device or the front rows of a big football or baseball game. I saw a soccer match on the Vision Pro and I ducked when a ball came right at me. Courtside playoff tickets to the New York Knicks cost $30,000. I would have had better seats with the Vision Pro, if Apple can work out that deal with NBA commissioner Adam Silver. But the best thing would be NFL football. I can envision a world where I can put four or five RedZone screens up at once and see all my favorite players on the Skidaddies (my Mad Money fantasy league team) score touchdowns. Bottom line Because the device allows you to look to the side or to see the room you are in, you can watch with anyone else and make it more of an event. I can't imagine taking it off once it is on. As for that dorky feeling, the experience was so engrossing that I got over it really quickly. I didn't want to take it off but it was time for another journalist to come in. I was bummed. As for the fit: At one point, I wasn't enthralled between apps and realized the headset was resting uncomfortably on my nose. I readjusted and was fine. I also feared I was going to get a headache the whole time but I didn't. Apple says the headset will be available starting at $3,499 beginning early next year. I think that one of the big telcos will offer it as part of a bundle to get you to switch. Some sort of an installment plan where you save some money versus buying it outright. They'd be nuts not to. It is that great a device. (Jim Cramer's Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Apple's new Vision Pro virtual reality headset is displayed during Apple's Worldwide Developers Conference (WWDC) at the Apple Park campus in Cupertino, California, on June 5, 2023. Josh Edelson | AFP | Getty Images Nobody wants to put a device on their head. You don't want the dorky feeling of sitting down with a mask on to watch a game or a movie. I know I sure didn't when I was selected by Apple (AAPL) to be one of the press people allowed to put on a Vision Pro — the company's new mixed-reality headset announced last month — at a recent briefing. I was skeptical. What's the point? I have two eyes. Why do I need them augmented? Why would I want myself to be cut off from whoever I was with to put this helmet on? Then I did it and realized that nothing would ever be the same. It's that much of a game-changer. Here are five reasons why. 1. It is ridiculously easy to use. This wondrous device is so far ahead of anything yet dreamed up by Hollywood. It has enough cameras inside of it that it can read your eyes and you can have your eyes point to a screen. You press the dial on the top-right of the headset and a menu of apps pops up, like swiping up to home on an iPhone or using the dial button on an Apple Watch. Look at the app you want to select, pinch your fingers together and you're in it. All said, it took five minutes for me to get used to it, and then I was hooked. That simple. 2. The visuals are incredible. What you see is real and actual and the colors are magnificent. You can choose to look at whatever you want to look at and see it on a big screen the size of your living room. That's right — that big. I just got back from Iceland with my kids and I can tell you that I wish I had the Vision Pro because I could decide what I wanted to see by experiencing it first on the headset. I would run through every vacation before I went to make sure I maximized my time. 3. There are so many applications. I found it easy to read books. I liked to look at the pictures I could find in history books. I like to look at paintings and sculptures. All there. I didn't get tickets to Taylor Swift's sold-out (everywhere) Eras Tour, but I know watching it on the VisionPro would feel like you were there. It might even be superior to attending with not-so-hot seats. 4. Television is just better ... This is the best thing, the reason why the VisionPro is a must-have. After using the Vision Pro, I can't imagine watching any of my favorite series on a 70-inch high-resolution TV — it is rendered to junk status by this device. I love The Bear, the Hulu series about a talented young chef. I can't believe I now have to watch it on a 70-inch rather than the Vision Pro. 5. ...especially sports. The tale of the tape. I am an intense viewer of sports and I can't believe how I can be courtside with this device or the front rows of a big football or baseball game. I saw a soccer match on the Vision Pro and I ducked when a ball came right at me. Courtside playoff tickets to the New York Knicks cost $30,000. I would have had better seats with the Vision Pro, if Apple can work out that deal with NBA commissioner Adam Silver. But the best thing would be NFL football. I can envision a world where I can put four or five RedZone screens up at once and see all my favorite players on the Skidaddies (my Mad Money fantasy league team) score touchdowns. Bottom line
Binance could lay off thousands as company buckles down for DOJ probe, source says 2023-07-14 - Changpeng Zhao, billionaire and chief executive officer of Binance Holdings Ltd., speaks during a session at the Web Summit in Lisbon, Portugal, on Wednesday, Nov. 2, 2022. Crypto exchange Binance is laying off employees in response to an ongoing Justice Department probe that is likely to end with a consent decree or settlement, according to a current employee who is familiar with the company's plans. The cuts will eliminate 1,500 to 3,000 of Binance's global workforce, this person told CNBC, and will take place through the end of the year. The Wall Street Journal previously reported on Friday that 1,000 employees have already been laid off, and those layoffs are part of the total planned, the source told CNBC. This person asked to remain anonymous because they are not authorized to talk to the press about internal matters. The Justice Department probe will likely reshape the company fundamentally, the employee told CNBC. If Binance opts to settle the DOJ allegations, it could result in a multi-billion dollar payment. Reuters has reported that federal prosecutors have been weighing anti-money laundering violations and sanctions evasion charges, allegations that would make it difficult for Binance or founder Changpeng Zhao to continue to get licenses to operate. A Binance spokesperson disputed that the cuts would impact 3,000 employees, saying that the high-end number was "just not right." The spokesperson said, "As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles." Binance has faced significant regulatory challenges over the last few months, culminating in lawsuits from the Securities and Exchange Commission and the Commodity Futures Trading Commission over alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S. Binance founder Changpeng Zhao has repeatedly dismissed concerns about the future of the exchange, even after being personally named in the SEC's lawsuit. Binance itself has suffered significantly since the lawsuits from U.S. regulators, with exchange outflows running into the hundreds of millions. The company has also seen a number of key executive departures.
Amazon seller consultant avoids jail in employee bribery scheme 2023-07-14 - Amazon is increasingly using robotics in its fulfilment centers to carry out repetitive tasks such as lifting heavy packages. A prominent Amazon consultant has avoided jail time for his involvement in an elaborate scheme to bribe company employees to give his clients an upper hand on the e-retailer's sprawling online marketplace. Ephraim "Ed" Rosenberg in March plead guilty to a criminal charge, stemming from a Sept. 2020 indictment that charged six people with conspiring to pay Amazon employees bribes in exchange for confidential information that would benefit third-party merchants selling goods on the company's marketplace. Rosenberg was sentenced Friday in a federal court to two years of probation, and 12 months of house arrest. He was also ordered to pay a $100,000 fine. Rosenberg, 48, is a well-known figure in the world of Amazon third-party sellers. He runs a consultancy business that advises entrepreneurs on how to sell products on the online marketplace, and navigate unforeseen issues with their accounts. Rosenberg's Facebook group for sellers, ASGTG, has over 70,000 members, and he hosts a popular conference for sellers each year in his hometown of Brooklyn. The case provides an unfiltered glimpse into the cottage industry of consultants and brokers that has flourished alongside the growth of Amazon's third-party marketplace. Since its launch in 2000, the marketplace has become a lucrative and competitive platform for millions of sellers to market their wares. From May 2019 to May 2020, U.S. small and medium businesses selling on the marketplace had an average of over $160,000 in sales, according to a report issued by Amazon. While the marketplace has helped Amazon haul in tens of billions of dollars in sales, it's also become a notorious host to counterfeit, unsafe and expired goods. Behind the scenes, scammers have for years resorted to illicit tactics to squash competitors, artificially boost their listings or bypass Amazon's marketplace rules. The case isn't the first time Amazon has dealt with issues of company employees leaking confidential information or manipulating the site in exchange for payments. In 2018, the company investigated claims that employees, primarily based in China, who received payments worth $80 to more than $2,000, in exchange for access to internal data, The Wall Street Journal reported. Amazon has said it invests hundreds of millions of dollars per year to ensure products are safe and compliant. The provision of internal data to sellers by employees violates Amazon's seller policies and code of conduct. Rosenberg's punishment is far less severe than what other defendants have faced. A former Amazon employee was sentenced last year to 10 months in prison, while a consultant who also sold products on Amazon is serving 20 months in prison. Prosecutors recommended a lesser sentence for Rosenberg because there was no evidence he initiated attacks on competitors' product listings like some of his conspirators, who allegedly lodged false complaints to Amazon, and bought fake negative reviews for rivals' products. Other defendants also pleaded guilty to tax evasion charges in addition to the bribery scheme. Between July 2017 and Sept. 2020, Rosenberg paid bribes directly and indirectly to Amazon employees in order to steal confidential data, as well as gain access to internal systems. In one case, Rosenberg made 33 different PayPal payments worth $18,650 to an Amazon employee in Seattle in exchange for confidential information about third-party seller accounts. Most of his payments were for account "annotations," or an internal Amazon employee log of infractions on a sellers' account, which Rosenberg and another defendant, Joe Nilsen, covertly referred to as "fruit" in email correspondence. "Sellers who had been suspended from selling on Amazon could use this internal information to see exactly what Amazon had figured out about the sellers' infractions and to tailor their appeals for reinstatement accordingly," prosecutors alleged. Nilsen bragged to Rosenberg over email about the services he had gained access to by bribing employees. "I am not trying to make it seem like we have all the abilities in the world, but even though it took some time and some face to face meetings, we obtained abilities that still blow my mind," Nilsen wrote in a Jan. 2018 email to Rosenberg, referring to his internal contacts as "high up 'flick the switch' type guys." "I don't want to have a little menu floating around but if you are in need of anything, just run it by me and I will let you know," Nilsen continued. Previously unsealed court documents said Rosenberg allegedly sent a "veiled threat" to an Amazon employee at the company's Seattle headquarters as part of the bribery scheme, Bloomberg reported. The documents also detailed the defendants' elaborate efforts to dodge detection by authorities, including allegedly stuffing a llama-shaped ottoman with cash believed to be bribes, according to Bloomberg. Rosenberg's guilty plea in March marked a reversal of his position on the case. He repeatedly denied prosecutors' allegations and claimed in LinkedIn messages to CNBC he was being framed, as well as in posts on Reddit forums and Facebook groups. He later admitted he made false statements about the case and admitted to bribing Amazon employees in a public apology posted online. An attorney for Rosenberg, Jacob Laufer, wrote in a sentencing memo that while Rosenberg's conduct was illegal, it was a symptom of a marketplace ruthlessly governed by Amazon wherein merchants could be arbitrarily booted off the marketplace at any time, and struggling to get their businesses reinstated, turned to illicit tactics. "Given that these sellers were in the dark about their alleged wrongdoing, how to correct the problem, and when Amazon might recognize its error, sellers were frequently desperate and sometimes would resort to illegal means to obtain the information necessary to accomplish the goal of saving their businesses," according to the memo. "The 'information necessary' was the annotations."