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Tired of AI doomsday tropes, Cohere CEO says his goal is technology that's 'additive to humanity' None - Aidan Gomez can take some credit for the ‘T’ at the end of ChatGPT. He was part of a group of Google engineers who first introduced a new artificial intelligence model called a transformer. That helped set a foundation for today's generative AI boom that ChatGPT-maker OpenAI and others built upon. Gomez, one of eight co-authors of Google's 2017 paper, was a 20-year-old intern at the time. He's now the CEO and co-founder of Cohere, a Toronto-based startup competing with other leading AI companies in supplying large language models and the chatbots they power to big businesses and organizations. Gomez spoke about the future of generative AI with The Associated Press. The interview has been edited for length and clarity. Q: What's a transformer? A: A transformer is an architecture of a neural network -- the structure to the computation that happens inside of the model. The reason that transformers are special relative to their peers -- other competing architectures, other ways of structuring neural networks -- is essentially that they scale very well. They can be trained across not just thousands, but tens of thousands of chips. They can be trained extremely quickly. They use many different operations that these GPUs (graphics chips) are tailored for. Compared to what existed before the transformer, they do that processing faster and more efficiently. Q: How important are they to what you're doing at Cohere? A: Massively important. We use the transformer architecture as does everyone else in building large language models. For Cohere, a huge focus is scalability and production readiness for enterprises. Some of the other models that we compete against are huge and super inefficient. You can’t actually put that into production, because as soon as you’re faced with real users, costs blow up and the economics break. Q: What's a specific example of how a customer is using a Cohere model? A: I have a favorite example in the health care space. It stems from the surprising fact that 40% of a doctor's working day is spent writing patient notes. So what if we could have doctors attach a little passive listening device to follow along with them throughout the day, between their patient visits, listening into the conversation and pre-populating those notes so that instead of having to write it from scratch, there’s a first draft in there. They can read through it and just make edits. Suddenly, the capacity of doctors boosts by a massive proportion. Q: How do you address customer concerns about AI language models being prone to 'hallucinations' (errors) and bias? A: Customers are always concerned about hallucinations and bias. It leads to a bad product experience. So it’s something we focus on heavily. For hallucinations, we have a core focus on RAG, which is retrieval-augmented generation. We just released a new model called Command R which is targeted explicitly at RAG. It lets you connect the model to private sources of trusted knowledge. That might be your organization’s internal documents or a specific employee’s emails. You’re giving the model access to information that it just otherwise hasn’t seen out in the web when it was learning. What’s important is that it also allows you to fact check the model, because now instead of just text in, text out, the model is actually making reference to documents. It can cite back to where it got that information. You can check its work and gain a lot more confidence working with the tool. It reduces hallucination massively. Q: What are the biggest public misconceptions about generative AI? A: The fear that certain individuals and organizations espouse about this technology being a terminator, an existential risk. Those are stories humanity has been telling itself for decades. Technology coming and taking over and displacing us, rendering us subservient. They’re very deeply embedded in the public’s cultural brain stem. It’s a very salient narrative. It’s easier to capture people’s imagination and fear when you tell them that. So we pay a lot of attention to it because it’s so gripping as a story. But the reality is I think this technology is going to be profoundly good. A lot of the arguments for how it might go bad, those of us developing the technology are very aware of and working to mitigate those risks. We all want this to go well. We all want the technology to be additive to humanity, not a threat to it. Q: Not only OpenAI but a number of major technology companies are now explicitly saying they're trying to build artificial general intelligence (a term for broadly better-than-human AI). Is AGI part of your mission? A: No, I don’t see it as part of my mission. For me, AGI isn’t the end goal. The end goal is profound positive impact for the world with this technology. It’s a very general technology. It’s reasoning, it's intelligence. So it applies all over the place. And we want to make sure it’s the most effective form of the technology it possibly can be, as early as it possibly can be. It’s not some pseudo-religious pursuit of AGI, which we don’t even really know the definition of. Q: What's coming next? A: I think everyone should keep their eyes on tool use and more agent-like behavior. Models that you can present them for the first time with a tool you’ve built. Maybe it’s a software program or an API (application programming interface). And you can say, ‘Hey model, I just built this. Here’s what it does. Here’s how you interact with it. This is part of your toolkit of stuff you can do.’ That general principle of being able to give a model a tool it’s never seen before and it can adopt it effectively, I think is going to be very powerful. In order to do a lot of stuff, you need access to external tools. The current status quo is models can just write (text) characters back at you. If you give them access to tools, they can actually take action out in the real world on your behalf.
Binance executive detained in Nigeria amid a crypto crackdown has escaped custody None - Authorities in Nigeria say an executive of global cryptocurrency exchange Binance has escaped custody in the West African nation where a criminal investigation has been launched against the platform accused of being used for money laundering KADUNA, Nigeria -- An executive of cryptocurrency exchange Binance has escaped custody in Nigeria, where a criminal investigation has been launched against the platform accused of being used for money laundering, authorities said Monday. Nadeem Anjarwalla, the regional manager for Binance in Africa, “fled Nigeria using a smuggled passport,” the office of Nigeria’s National Security Adviser said in a statement, calling for “whatever information that can assist law enforcement agencies to apprehend the suspect.” Nigeria is Africa’s largest crypto economy in terms of trade volume with many citizens using crypto to hedge their finances against surging inflation and the declining local currency. Anjarwalla, who holds dual British and Kenyan citizenship, had been detained in Nigeria along with another colleague since Feb. 26 when they arrived in the country following a crackdown on the crypto platform. Tigran Gambaryan, the colleague who is an American citizen, remains in captivity. Binance stopped all trading with the Nigerian naira currency on its platform in early March after authorities accused it of being used for money laundering and terrorism financing —without providing evidence publicly. It was not clear how Anjarwalla fled custody. The Abuja-based Premium Times newspaper, which broke the news of his escape, reported that he fled from a guest house in the capital city after guards led him to a nearby mosque for prayers. “The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention,” Zakari Mijinyawa, spokesman for the office of Nigeria’s National Security Adviser said in a statement. The Binance executives were being detained on court order and are due to appear in court on April 4, the statement said. Nigeria’s tax agency, meanwhile, filed a four-count charge on tax evasion against the crypto exchange, accusing it also of “complicity in aiding customers to evade taxes through its platform.” “The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers,” the local Federal Inland Revenue Service said in a statement. ____ Follow AP’s Africa coverage at: https://apnews.com/hub/africa
Boeing CEO to step down in management shake-up as manufacturing issues plague storied plane maker None - A leadership shake-up at Boeing is highlighting the difficult path facing the iconic aircraft manufacturer as it tries to navigate through another safety crisis A leadership shake-up at Boeing, including news Monday that its top executive plans to step down, highlights the difficult path facing the iconic aircraft manufacturer as it tries to navigate through yet another safety crisis. CEO David Calhoun, who has been under unrelenting pressure since a panel blew off a Boeing 737 Max jetliner during a January flight, said he would retire at the end of the year. He said the decision to leave was his and the timing would allow for an orderly transition. The head of the company's commercial airplanes unit, Stan Deal, is already out. Boeing said he was replaced immediately by Stephanie Pope, a fast-rising insider who just became chief operating officer on Jan. 1. In a third high-profile decision, board Chairman Lawrence Kellner, a former Continental Airlines chief, won't stand for reelection in May, Boeing said. A former Qualcomm CEO who was appointed to succeed Kellner will lead the search for Calhoun's replacement. Calhoun was on the Boeing board during its worst time — the crashes of two 737 Max planes in 2018 and 2019 that killed 346 people. He leaves with the company under intense scrutiny from regulators and lawmakers since a door-plug panel blew off a brand-new Alaska Airlines Max jet in midflight on Jan. 5. Investigators say bolts that help keep the panel in place were missing after repair work at the Boeing factory. The Federal Aviation Administration reviewed Boeing's 737 factory near Seattle and gave the company failing grades on nearly three dozen aspects of production. The company has until late May to give the FAA a plan for improvement. In the meantime, the federal agency is limiting production of 737s. The FBI recently told passengers from the Alaska Airlines flight that they might be victims of a crime. Airline executives have expressed their frustration with Boeing, and even minor incidents involving jets the company produced are attracting extra attention. In a note to employees on Monday, Calhoun called the Alaska Airlines blowout a “watershed moment for Boeing" that requires a ”total commitment to safety and quality at every level of our company." “The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he said. Boeing’s most significant effort to improve quality has been opening discussions about bringing Spirit AeroSystems, which builds fuselages for the Max and many parts for that and other Boeing planes, back into the company. Mistakes made at Spirit, which Boeing spun off nearly 20 years ago, have compounded the company's problems. Bringing the work of the supplier back in-house would, in theory, give Boeing more control over the quality of manufacturing key airplane components. Calhoun said the two companies were making progress in talks “and it’s very important.” Calhoun had been a Boeing director since 2009 when he became CEO in January 2020, replacing Dennis Muilenburg, who was fired in the aftermath of the Max crashes. In 2021, Boeing's board raised the mandatory retirement age for CEO to keep Calhoun in the job. He oversaw the Max’s return to service after a worldwide grounding that lasted nearly two years, and orders for the plane quickly picked up. Since then, however, a series of manufacturing flaws have delayed deliveries of new 737s and larger 787 Dreamliners to airlines, forcing the carriers to reduce growth plans. Boeing has not filed its proxy statement for 2023, but previous filings show that Calhoun received compensation valued at more than $64.6 million from 2020 through 2022. Almost all of it was in the form of stock awards, options and bonuses. The company, based in Arlington, Virginia, has lost more than $23 billion since Calhoun took over, although most of that is residual damage from the two Max crashes in Indonesia and Ethiopia. Boeing shares have fallen more than 40% in that time – 24% since the Alaska incident, through trading on Friday. Last week, Chief Financial Officer Brian West warned that Boeing burned between $4 billion and $4.5 billion more cash than it expected in the first quarter as it slowed down airplane production after the Alaska Airlines accident. The company tapped former Qualcomm CEO Steven Mollenkopf to become the new board chairman and lead the search for Calhoun’s replacement. Some Boeing critics in Congress said the shake-up in the top ranks is not enough and that Boeing needs to worry more about safety and less about producing more airplanes. That view is shared by a leading Boeing whistleblower. “It is going to be hard to fix the culture, but the people at Boeing (who build planes) are capable of it,” said Ed Pierson, a former manager at Boeing's 737 factory who is now director of a safety foundation. “Those employees need to feel valued and supported instead of (management) just directing them and pressuring them to produce planes.” The focus on Boeing since early January took some of the surprise out of Monday’s news. Citi analyst Jason Gursky called the shake-up “both predictable and thoughtful.” Some analysts had viewed the fast-rising Pope as a likely successor to Calhoun. Gursky said, however, that her move to lead commercial airplanes opens the way for an outsider to become CEO. Before her promotion to chief operating officer at the beginning of the year, Pope, 51, was president and CEO of Boeing’s services business, where she dealt with both airline and military customers. She served as chief financial officer of the airplanes division before that. Richard Aboulafia, a longtime aerospace analyst and now a consultant at AeroDynamic Advisory, said the management shake-up “is likely to be a pivotal moment in Boeing’s history, and probably a very positive one,” but the outcome depends on the next CEO. Rebuilding Boeing will be “very hard, and a long road,” Aboulafia said. Putting people with technical skill in higher leadership positions would be a plus, he said. He said Patrick Shanahan — a former Boeing executive and acting U.S. defense secretary during the Trump administration who has led Spirit AeroSystems since the fall — would be a “great choice.” Cai von Rumohr, an aerospace analyst at financial services firm TD Cowen, said the management changes are “a partial step toward changing its culture to underscore safety and rebuild investor confidence in the company." He said the fact that Calhoun gave more than eight months’ notice will help the Boeing board make “a considered decision” instead of “a knee-jerk reaction.” The CEO of Irish airline Ryanair, a major Boeing customer, welcomed the management changes, including the replacement of Deal at the head of the commercial airplanes division. Michael O’Leary said in a video posted on X that Deal did a good job at Boeing sales, “but he’s not the person to turn around the operation in Seattle, and that’s where most of the problems have been in recent years.” Shares of The Boeing Co. rose about 1% in trading Monday. ___ AP Business Writer Michelle Chapman contributed to this report from New York.
US and UK go after Chinese hackers accused of state-backed operation against politicians, dissidents None - Hackers linked to the Chinese government launched a sweeping, state-backed operation that targeted U.S. officials, journalists, corporations, pro-democracy activists and the U.K.’s election watchdog US and UK go after Chinese hackers accused of state-backed operation against politicians, dissidents WASHINGTON -- Hackers linked to the Chinese government launched a sweeping, state-backed operation that targeted U.S. officials, journalists, corporations, pro-democracy activists and the U.K.'s election watchdog, American and British authorities said Monday in announcing a set of criminal charges and sanctions. The intention of the campaign, which officials say began in 2010, was to harass critics of the Chinese government, steal trade secrets of American corporations and to spy on and track high-level political figures. Western officials disclosed the operation, carried out by a hacking group known as APT31, while sounding a fresh, election-year alarm about a country long seen as having advanced espionage capabilities. The U.S. Justice Department charged seven hackers, all believed to be living in China. The British government, in a related announcement, imposed sanctions on two of the defendants in connection with a breach that may have given the Chinese access to information on tens of millions of U.K. voters held by the Electoral Commission. “The Justice Department will not tolerate efforts by the Chinese government to intimidate Americans who serve the public, silence the dissidents who are protected by American laws, or steal from American businesses,” Attorney General Merrick Garland said in a statement, adding that the “case serves as a reminder of the ends to which the Chinese government is willing to go to target and intimidate its critics.” As part of the cyber-intrusion campaign, prosecutors said, the hackers sent more than 10,000 emails to targets all over the world that purported to be from prominent journalists but that actually contained malicious code. Once opened, the emails installed tracking software that allowed the hackers to know the victims’ location, IP addresses and even the devices they used to get email. The hackers further leveraged that tracking to target home routers and other devices, “including those of high-ranking U.S. government officials and politicians and election campaign staff from both major U.S. political parties,” the indictment says. Targets included officials at the White House and multiple government agencies, including the Treasury and Commerce departments, senators from both parties, the spouse of a senior Justice Department official, political strategists, and political figures from around the world who were critical of the Chinese government, including members of a pro-democracy advocacy group. The Justice Department said the hackers also began targeting email accounts belonging to senior staffers of a presidential campaign in May 2020, several months before the general election. Also, the cybersecurity firm Proofpoint later noted in a blog, the hackers heavily focused their phishing on Washington-based journalists, including White House correspondents, just prior to the Jan. 6, 2021, attack on the Capitol. Britain's sanctions follow an announcement last August that “hostile actors” had gained access to its servers from around 2021 to 2022. At the time, the watchdog said the data included the names and addresses of registered voters. But it said much of the information was already in the public domain. The Foreign Office said Monday the hack of the election registers “has not had an impact on electoral processes, has not affected the rights or access to the democratic process of any individual, nor has it affected electoral registration.” British cybersecurity officials also said that APT31 hackers “conducted reconnaissance activity” against British parliamentarians who were critical of Beijing in 2021. They said no parliamentary accounts were successfully compromised. Three lawmakers, including former Conservative Party leader Iain Duncan Smith, told reporters Monday they have been “subjected to harassment, impersonation and attempted hacking from China for some time.” Smith said in one example, hackers impersonating him used fake email addresses to write to his contacts. APT31 has previously been accused of targeting U.S. presidential campaigns and the information systems of Finland’s parliament, among others. Britain’s Deputy Prime Minister Oliver Dowden said his government will summon China’s ambassador to account for its actions. China’s Ministry of Foreign Affairs said before the announcement that countries should base their claims on evidence rather than “smear” others without factual basis. “Cybersecurity issues should not be politicized,” ministry spokesperson Lin Jian said. “We hope all parties will stop spreading false information, take a responsible attitude, and work together to maintain peace and security in cyberspace.” British Prime Minister Rishi Sunak reiterated that China is “behaving in an increasingly assertive way abroad” and is “the greatest state-based threat to our economic security.” “It’s right that we take measures to protect ourselves, which is what we are doing,” he said, without providing details. U.S. officials over the years have brought a broad array of criminal cases against hackers affiliated with the Chinese government. They have also expressed concern about Chinese government influence operations and the potential that Beijing could meddle in presidential politics. A 2021 intelligence assessment found that China ultimately did not interfere on either side during the 2020 election and “considered but did not deploy” influence operations intended to affect the outcome. U.S. officials say they believe Beijing prioritized a stable relationship with the U.S. and did not consider either election outcome as advantageous enough for it to risk the “blowback” that would ensue if it got caught with interfering. The Justice Department said the indictment unsealed Monday does not alter that conclusion, noting that there's no allegation that the hacking was designed to further a Chinese government influence operation against the U.S. Even so, Assistant Attorney General Matthew Olsen, the Justice Department's top national security official, said in a statement that, “Today’s announcements underscore the need to remain vigilant to cybersecurity threats and the potential for cyber-enabled foreign malign influence efforts, especially as we approach the 2024 election cycle." _____ Hui reported from London. Associated Press writers Frank Bajak in Boston, Didi Tang in Washington and Dave Collins in Hartford, Connecticut, contributed to this report.
Boeing CEO Dave Calhoun to step down None - Calhoun will continue to lead Boeing through the end of 2024, the company said. Boeing CEO Dave Calhoun will step down at the end of the year, the company said in an announcement Monday. The move comes amid fallout from a high-profile safety failure onboard an Alaska Airlines flight in January, when a door plug blew out of Boeing's 737 Max 9 aircraft while the plane was in flight. In a statement on Monday, Calhoun acknowledged the challenges facing Boeing. "The eyes of the world are on us, and I know that we will come through this moment a better company," Calhoun said. "We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do." Board Chair Larry Kellner, a board member for nearly 15 years, plans to forgo nomination for an additional term at the company’s annual shareholder meeting this spring, Boeing said. Steve Mollenkopf, former CEO of chipmaker Qualcomm, will immediately take over as Boeing board chair and lead the search for a new chief executive, Boeing added. Boeing CEO Dave Calhoun speaks to reporters on Capitol Hill Jan. 24, 2024 in Washington, DC. Anna Moneymaker/Getty Images, FILE Calhoun, who served as CEO for four years, began his tenure in the aftermath of a previous safety scandal. In 2019, Boeing 737 Max aircraft were grounded worldwide following a pair of crashes in Indonesia and Ethiopia that killed a combined 346 people. The aircraft were permitted to again take to the skies in 2021, following a two-year ban. The renewed scrutiny over the incident aboard Alaska Airlines Flight 1282 on Jan. 5 includes an investigation undertaken by a federal safety regulator and a criminal investigation by the Department of Justice. On Monday, in a letter to employees, Calhoun called on the embattled company to focus on openness as it weathers the difficult period. "We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company," Calhoun said. "The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years," he added. This is a developing story. Please check back for updates.
Volkswagen workers to vote on union representation next month in the 1st test of recruiting drive None - Workers at Volkswagen’s factory in Chattanooga, Tennessee, will vote next month on whether they want to be represented by the United Auto Workers union Volkswagen workers to vote on union representation next month in the 1st test of recruiting drive DETROIT -- Workers at Volkswagen’s factory in Chattanooga, Tennessee, will vote next month on whether they want to be represented by the United Auto Workers union. The National Labor Relations Board said Monday that the election will take place from April 17 to 19 at the plant, in the first test of the union's effort to organize nonunion automobile factories across the nation. Workers at the 3.8 million square foot (353,353 square meter) factory with more than 4,000 production workers filed paperwork March 18 seeking the election. Both sides reached agreement to have the election in April, the NLRB said. The UAW announced its organizing campaign last fall after it won strong contracts with Detroit automakers. The UAW said it would simultaneously target more than a dozen nonunion auto plants including those run by Tesla, Nissan, Mercedes-Benz, Hyundai, Kia, Toyota, Honda, and others. The drive covers nearly 150,000 workers at factories largely in the South, where the union thus far has had little success in recruiting new members. The UAW said a supermajority of the VW plant’s production workers had signed cards supporting union representation, but it would not provide a number. A union can seek an election run by the NLRB once a majority of workers support it. Volkswagen has said it respects the workers' right "to a democratic process and to determine who should represent their interests. “We will fully support an NLRB vote so every team member has a chance to vote in privacy in this important decision.” Tennessee Gov. Bill Lee recently told reporters that he opposed the factory unionizing, saying that it was important for employees to “keep their future in their own hands.” Lee opposed a similar organizing effort at the same plant in 2019, warning that business recruitment could take a hit. But Isaac Meadows, one of the VW workers who make Atlas SUVs and the ID.4 electric vehicle, said in a union statement that they want better lives for their families. “We need a say in our schedules, benefits, pay, and more. We’re proud to work at Volkswagen, but we also know the value of a voice at work.” he said. The union has come close to representing workers at the VW plant in two previous elections. In 2014 and 2019, workers narrowly rejected a factorywide union under the UAW. The year after the 2014 vote failed, 160 Chattanooga maintenance workers won a vote to form a smaller union, but Volkswagen refused to bargain. Volkswagen had argued the bargaining unit also needed to include production workers. As a result, the 2019 factory-wide vote followed. In February the union said a majority of workers at a Mercedes plant in Vance, Alabama, near Tuscaloosa, also had signed union cards. The Alabama factory complex has about 6,100 employees. The union embarked on its organizing effort last year after it went on strike against General Motors, Ford and Stellantis, earning big raises and other benefits. After the Detroit Three contracts were approved, many nonunion factories announced worker pay increases. In November, VW gave workers an 11% pay raise at the plant, but the union says VW’s pay still lags behind Detroit automakers. Top assembly plant workers in Chattanooga make $32.40 per hour, VW said. The UAW pacts with Detroit automakers include 25% pay raises by the time the contracts end in April of 2028. With cost-of-living increases, workers will see about 33% in raises for a top assembly wage of $42 per hour, plus annual profit sharing.
This week: Consumer confidence, Cintas earnings, pending home sales None - The Conference Board on Tuesday issues its consumer confidence index for March; on Wednesday workplace uniform company Cintas reports its latest earnings and on Thursday the National Association of Realtors releases its pending home sales report for Fe... A look at some of the key business events and economic indicators upcoming this week. CONSUMERS' MOOD The Conference Board on Tuesday releases its consumer confidence index for March. In February, American consumers were feeling less confident as concerns over a possible recession grew despite most recent data pointing to a healthy U.S. economy. The index's decline last month came after three straight months of improvement. Consumer spending accounts for about 70% of U.S. economic activity, so economists pay close attention to consumer behavior. Consumer confidence, by month: Sept.: 104.3 Oct.: 99.1 Nov.: 101 Dec.: 108 Jan..: 110.9 Feb.: 106.7 March (est.): 107.8 Source: FactSet CINTAS REPORTS Workplace uniform company Cintas reports its third-quarter earnings before the bell Wednesday. Cincinnati-based Cintas is expected by Wall Street analysts to post earnings of $3.58 per share in the period on sales of $2.4 billion in sales. That would be a significant increase over the same period last year when the company earned $3.14 per share on $2.2 billion in sales. Since a pandemic dip in 2020, Cintas shares have steadily risen to all-time highs around $625. HOME SALES BAROMETER The National Association of Realtors issues its pending home sales index for February on Thursday. In January, signed contracts for homes fell 4.9% following December's 5.7% increase. The pending home sales report serves as a forward-looking indicator of closings a month or two away. The housing market, which has been mired in a slump the past two years, has seen some encouraging signs lately with falling interest rates and more homes on the market. Pending home sales index, monthly percent change: Aug: -5.1 Sept.: 1.5 Oct.: -0.7 Nov.: 0.7 Dec.: 5.7 Jan.: -4.9 Feb. (est.): -1.3% Source: FactSet
Visa, Mastercard settle long-running antitrust suit over swipe fees with merchants None - Visa and Mastercard have announced a major settlement with U.S. merchants, potentially ending nearly two decades of litigation between merchants and the major payment companies over credit card fees NEW YORK -- Visa and Mastercard announced a major settlement with U.S. merchants on Tuesday, potentially ending nearly two decades of litigation over the fees charged every time a credit or debit card is used in a store or restaurant. The deal would lower and cap the fees charged by Visa and Mastercard and allow small businesses to collectively bargain for rates with the payment processors in a similar way that the large merchants do on their own now. Industry groups for retailers both small and large said the settlement is a positive development, but far more needs to be done to remedy the current swipe-fee situation. They noted that the lowered fees would be only for a limited period of time — three to five years — after which the fees would return to their current levels. “While this settlement is a step in the right direction and will provide a limited amount of short-term relief to small businesses, it does not solve the long-term anti-competitive rate-setting practices that are the root of this problem,” said Jeff Brabant, vice president of federal government relations at the National Federation of Independent Business, a small-business advocacy group. “As long as the credit card networks, Visa and Mastercard, get to set the interchange rates for every bank that issues a credit card, anti-competitive pricing will remain, and small businesses will continue to pay artificially high rates.” Swipe fees are paid to Visa, Mastercard and other credit card companies in exchange for enabling transactions. Merchants ultimately pass on those fees to consumers who use credit or debit cards. The fees are calculated as a fixed fee plus a percentage of the sales total, typically about 1% to 3%. Increasingly, small businesses have begun posting signs near the register warning customers that they will pay more for the same item if they do not use cash. According to the settlement announced Tuesday, Visa and Mastercard will cap the credit interchange fees until 2030, and the companies must negotiate the fees with merchant-buying groups. The law firm that announced the settlement put the value of the savings in swipe fees at close to $30 billion. The settlement stems from a 2005 lawsuit that alleged merchants paid excessive fees to accept Visa and Mastercard credit cards, and that Visa and Mastercard and their member banks acted in violation of antitrust laws. In 2018 Visa and Mastercard agreed to pay $6.2 billion as part of the long-running suit filed by a group of 19 merchants. But the lawsuit then had two pieces that needed to be resolved: a dispute over the rules Visa and Mastercard impose to accept their cards, and the merchants who chose not to participate in the settlement. “This settlement is a mere drop in the bucket,” said the Retail Industry Leaders Association, a trade group representing Target, Home Depot and other major chains. “It proves that merchants deserve injunctive relief, but whether the settlement terms proposed are sufficient to remedy the harm caused by the current interchange system needs to be carefully reviewed.” Mary Liz Curtin and her husband own two businesses, Leon & Lulu, a retail store in a converted vintage roller skating rink, and Three Cats Restaurant, a restaurant in a converted vintage movie theater, in Clawson, Michigan. She said swipe fees have become a particular problem since the pandemic, when the use of cash plummeted. Most people use cards now, which means the roughly 3% swipe fee she pays eats up a lot more revenue than it used to. “Like every retailer, our cash sales and check sales have plummeted because people are charging everything,” Curtin said. “And that just means that there’s a lovely slice of 3% off the top of all of your sales.” She welcomed the settlement. “I am delighted in anything that will ameliorate the situation,” she said. “I think this is going to help a little bit.” But she says swipe fees remain a “boondoggle.” Mike Roach, who co-owns Paloma Clothing with his wife in Portland, Oregon, said that once credit card mileage bonuses and other perks began to be the norm, card usage soared. He said swipe fees have been a significant cost of business -- before the pandemic, he calculated that there were some years his card fees were more than his (admittedly low) rent. He said he thinks the settlement “isn’t going to change anybody’s bottom line by much,” he said. “But it’s a step in the right direction.” The settlement is in addition to a 2023 financial $5.54 billion settlement between Visa and Mastercard and 18 million businesses that accepted Visa or Mastercard during a 15-year period up to Jan. 25, 2019. Eligible merchants that received a claim form in the mail in December and January can claim a share of that settlement until May 31.
California Attorney General says mifepristone is ‘safer than tylenol, it’s safer than a colonoscopy’ None - The Supreme Court heard arguments today regarding access to the abortion pill mifepristone. Attorney General for the state of California Rob Bonta explains why he signed an amicus brief to support continued access to the pill.March 26, 2024
Timeline of events in the Baltimore bridge collapse None - NBC News' Ryan Nobles breaks down the Francis Scott Key Bridge collapse timeline that appears to show the four minute difference between when the cargo ship's lights went off to the moment the bridge collapsed.March 26, 2024
Massive engineering task lies ahead after the Baltimore bridge collapse None - The Frances Scott Key Bridge collapse has brought one of the nation's busiest ports to a standstill. NBC News' Tom Costello says clearing the debris and reopening the port is an immediate area of focus.March 26, 2024
What the cargo ship bridge crash in Baltimore means for the economy None - The Port of Baltimore, the ninth-busiest for foreign cargo, closed on Tuesday. What the cargo ship bridge crash in Baltimore means for the economy A container ship crash that partially collapsed Baltimore's Francis Scott Key Bridge Tuesday has destroyed a key artery for vehicle traffic in the city and closed the Port of Baltimore. Six people remain unaccounted for as the search continues at the site of the bridge collapse, Coast Guard officials said at a Tuesday-morning news conference. Two people were rescued, including one who was hospitalized and later discharged, officials said. The Port of Baltimore, the nation's 17th-largest in annual total tonnage of cargo as of 2021, handles more cars and trucks than any other in the U.S, Maryland Gov. Wes Moore said in a statement last month. The Key Bridge, meanwhile, carried more than 30,000 vehicles each day. Baltimore Harbor is expected to be closed for at least a few days amid ongoing rescue and cleanup efforts, Mark Zandi, chief economist for Moody's Analytics, told ABC News. The bridge collapse will not meaningfully impact the U.S. economy, nor will it push Baltimore into a recession, Zandi added, though he said the incident could still cause significant economic ramifications. The Port of Baltimore set a record last year for the amount of foreign cargo handled at its point of entry, Gov. Moore said. In all, the port handled 52.3 tons, or $80 billion worth, of foreign cargo, making it the ninth-busiest port in the country last year for such goods. "The Port of Baltimore is a key component in Maryland's transportation network," Maryland Department of Transportation Secretary Paul Wiedefeld said in a statement last month. The port leads all U.S. peers in the handling of autos, heavy farm and construction machinery, imported sugar and imported gypsum, Moore said. A container ship as it rests against wreckage of the Francis Scott Key Bridge on March 26, 2024, as seen from Dundalk, Md. Matt Rourke/AP The Port of Baltimore handled around 850,000 cars and light trucks in 2023, putting its annual amount above that of any other U.S. port for the past 13 years, according to the Maryland Port Administration. The port closure could result in "some short-term impacts in the auto market," Zandi said, noting that the outcome will depend on the duration of the blockage and the availability of alternative transportation routes. Roughly 15,000 jobs depend directly on the port, while nearly 140,000 jobs are linked to its activities, Moore said in a statement last month. Norwegian Cruise Line operates winter and summer trips through the port, Moore said. In February, the company was set to return later this year. On top of the interruption of port activity, the collapse of the Key Bridge removes a major passageway for vehicles, especially commercial ones, Zandi said. Large trucks traveling through Baltimore rely on the Key Bridge, since they're prohibited from using the Harbor Tunnel, an alternative route. Due to the bridge collapse, Zandi added, such trucks will need to travel through the city of Baltimore or take a significant detour, causing notable delays. Taken together, the supply disruption from the port closure and bridge collapse could put slight upward pressure on U.S. prices, Zandi said. ABC News' Emily Shapiro, Zunaira Zaki and Elizabeth Schulze contributed to this report.
Alibaba scraps planned IPO of Cainiao logistics unit as it doubles down on e-commerce None - Alibaba Group Holding on Tuesday said it had scrapped plans to list its logistics unit Cainiao in Hong Kong, as it looks to prioritize growing its e-commerce business while facing challenging IPO market conditions Alibaba scraps planned IPO of Cainiao logistics unit as it doubles down on e-commerce HONG KONG -- Alibaba Group Holding on Tuesday said it had scrapped plans to list its logistics unit Cainiao in Hong Kong, as it looks to prioritize growing its e-commerce business while facing challenging IPO market conditions. Alibaba said Tuesday that it was withdrawing its initial public offering and listing application, and instead proposes purchasing all outstanding shares of Cainiao Smart Logistics Network. The repurchase offer will value Cainiao at $10.3 billion. Alibaba currently holds a stake of 64% in the logistics unit, and the buyout offer will allow minority shareholders to sell their shares to Alibaba. “Given the strategic importance of Cainiao to Alibaba and the significant long-term opportunity we see in building out a global logistics network, we believe this is an appropriate time to double down on Alibaba’s investment in Cainiao,” said Joe Tsai, chairman of Alibaba Group. The company also said that current market conditions would “unlikely garner a valuation” that reflects Cainiao’s strategic value to Alibaba’s business. The scrapped IPO comes as Alibaba has set its focus on growing its cloud computing and e-commerce businesses. Alibaba’s e-commerce business has come under pressure from rivals such as PDD’s Pinduoduo and ByteDance’s Douyin, which often offer products at lower prices. Cainiao handles much of Alibaba’s e-commerce logistics, and operates a global logistics network that faciliates cross-border e-commerce. Alibaba restructured its businesses last March, splitting them into six units that would eventually raise their own capital and go public. Its cloud unit had been expected to be among the first to hold an initial public offering, but Alibaba later scrapped plans to spin-off the business, citing uncertainties over U.S. export curbs on advanced chips used for artificial intelligence.
Here are the big hurdles to the global push to build up renewable energy None - The world’s governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N. climate summit in December Here are the big hurdles to the global push to build up renewable energy The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N. climate summit in December. But right now, the post-pandemic global economy is throwing up obstacles that will need to be overcome if the goal is going to be met. Here are the big hurdles to solar, wind and other renewable energy projects: Central banks in Europe and the U.S. have raised interest rates to combat inflation. That hits renewables harder than it does investment in fossil fuel projects. Renewables have much higher up-front costs to build wind farms, solar arrays and more, and that borrowing costs money. After that, operating costs are negligible since the wind and sun are free, of course — but high interest rates have made it harder to get new projects off the ground. In many cases, the answer is raising the agreed price of the electricity flowing to the grid to cover the added costs. Everything costs more these days — not just food and rent, but the electric cables, power turbines, construction materials and services needed to build wind or solar installations. One exception: solar panels have plunged in price due to massive Chinese production. Order backlogs and supply delays are growing because there are shortages of skilled engineers, raw materials and a lack of manufacturing capacity for complex machinery needed for renewable energy projects. An order for a new wind turbine or a transformer to connect to the grid can take months or longer to arrive than it did before the COVID-19 pandemic. So-called NIMBY syndrome remains an issue in many places. Germany's southern region of Bavaria, for example, is known for resisting the noise and appearance of wind turbines in its scenic landscape. Installations have lagged in Bavaria and other regions despite the German government's push for more renewable energy after losing affordable Russian natural gas used to heat homes, generate electricity and power factories. Low-income countries have long faced much higher borrowing costs than the richer parts of the globe because government subsidies or other credit guarantees are uncertain. The result is that the same solar park if built today costs twice as much in Ghana as it would in the U.S. because of interest rates alone, according to Todd Moss, a former State Department official who heads the Energy for Growth Hub in Washington.
Drawing nears for $997M Mega Millions jackpot None - A nearly $1 billion Mega Millions jackpot is up for grabs, offering the prospect of instant riches for a lucky player after more than three months without a big winner DES MOINES, Iowa -- A nearly $1 billion Mega Millions jackpot will be up for grabs Friday night, offering the prospect of instant riches for a lucky player after more than three months without a big winner. The numbers will be drawn at 11 p.m. EDT for the estimated $977 million Mega Millions prize. The jackpot ranks as the 10th largest in U.S. lottery history. No one has won the game's jackpot since Dec. 8, a string of 29 consecutive drawings without anyone matching all of the game's six numbers. That has enabled the jackpot to slowly grow, week after week. The $977 million prize is for a sole winner who chooses to be paid through an annuity over 30 years. Winners almost always opt for a cash payment, which for Friday's drawing would be an estimated $461 million. The other U.S. lottery game, Powerball, also has grown to be nearly as large, with an annuity jackpot of $750 million and a cash payout of $357.3 million. The next Powerball drawing is scheduled to take place Saturday night.
Firing of Ohtani's interpreter highlights how sports betting is still illegal in California None - The firing of Shohei Ohtani’s interpreter by the Los Angeles Dodgers over allegations of illegal gambling and theft has highlighted an issue many outside of California don’t realize: Sports betting is still against the law in the nation’s most populous... Firing of Ohtani's interpreter highlights how sports betting is still illegal in California SACRAMENTO, Calif. -- The firing of Shohei Ohtani's interpreter by the Los Angeles Dodgers over allegations of illegal gambling and theft has highlighted an issue many outside of California don't realize: Sports betting is still against the law in the nation's most populous state. Betting on sports has exploded in the United States since the 2018 U.S. Supreme Court ruling that cleared the way for states to legalize it. Thirty-eight states now allow betting on sports, and ads promoting bookmakers DraftKings and FanDuel are seemingly everywhere. Sportsbooks salivate at the thought of gaining access to California's 39 million residents, but the industry's efforts thus far have failed. Two rival proposals were brought before voters in 2022 and tanked badly. One that was largely backed by gaming companies would have allowed adults to wager on mobile devices and online. The other would have legalized sports gambling at tribal casinos and horse tracks. The rival campaigns became the most expensive ballot proposition fight in U.S. history, with both sides hoping to break into what was then estimated to be a potential billion dollar market. Another attempt stalled earlier this year without ever making it to the ballot. In California, gambling is permitted on horse races, at Indian casinos, in card rooms and on the state lottery. The politics involved are tricky. Wealthy Native American tribes that operate the state's largest traditional gambling operations generally view bookmakers and other outside gambling interests as a threat to tribal sovereignty. It has also been a challenge selling the idea to voters, many of whom are cynical about the industry's something-for-nothing promises. In the 2022 election, advertising made sweeping claims about how new gambling revenue could be used, from helping the homeless to providing financial security to poorer tribes that haven’t seen a windfall from casino gambling. At the time, the nonpartisan Legislative Analyst’s Office determined that the two proposals would increase state revenues, though it was unclear by how much. Ohtani’s interpreter and close friend, Ippei Mizuhara, 39, was fired by the Dodgers on Wednesday following reports from the Los Angeles Times and ESPN that he owed millions of dollars to an illegal bookmaker. Mizuhara has not been charged with any crimes and it’s unclear if his alleged relationship with the bookmaker broke California law. In an interview Tuesday with ESPN, Mizuhara said he gambled on international soccer, the NBA, the NFL and college , but that he never bet on baseball, which MLB forbids team employees from doing. He added that Ohtani, the sport's highest-paid player, paid his gambling debts at his request. Mizuhara changed his story a day later, following a statement from Ohtani’s lawyers saying the player was a victim of theft.
Fisker Ocean SUV: You can buy it for $25,000 right now. But there might be a catch None - CNN — For sale: A brand new luxury electric SUV for the holy-grail price of $25,000. There just might be a slight catch. The California-based electric SUV company Fisker faces a real possibility of bankruptcy, and its stock is hovering just over 2 cents a share, far below its 2021 peak of $28.50. And even though production has halted, the company still has SUVs to offer, so it’s having a sale. Prices for Fisker’s Ocean SUV have been cut by as much 39%. The catch, however, is that the car has received critical reviews rather than wide acclaim. And getting it serviced may not be easy. The base sticker price for the top-of-the-line Fisker Ocean Extreme has been cut from about $62,500 to $37,5000. Prices for the Sport trim level have been cut from $39,000 to $25,000. In announcing the price cuts, Fisker billed the move as a strategic shift rather than a fire sale. “Fisker is strategically positioning the all-electric Ocean SUV to be a more affordable and compelling EV choice, competitively available to EV buyers in the broadest possible market,” the company said in announcing the price cuts. The car itself has had some bad reviews. The Ocean was also the subject of a scathing review by American YouTube personality Marques Brownlee. His video was titled, “This is the Worst Car I’ve Ever Reviewed.” “Do not buy this version of the Fisker Ocean,” reads the video’s description. Brownlee’s February 17 video has racked up more than 4.8 million views so far, and it sent Fisker’s stock price plunging after its release. Consumer Reports also recently published its own review of the Ocean, panning its ride quality and software, although the reviewers did like its cargo space, rear seat legroom and large glass moonroof. Fisker has said that problems with early versions of the vehicles’ software caused some of the negative responses. The company also said it plans to continue updating and improving the software through over the air updates that will be installed without the SUVs needing to be taken to a dealer or service center. Fisker declined to say how the SUVs would be serviced in the event the company does go out of business. Fisker, founded in 2016 by a Danish auto designer named Henrik Fisker, had originally planned to sell and service vehicles itself, as other EV startups such as Tesla and Rivian do. Recently, though, Fisker shifted to recruiting independent dealers to sell vehicles the way more established automakers do. By end of 2023, Fisker had signed up only 12 dealers in the United States and Europe, however. Fisker had reported in early March that it could run out of cash to continue operations. Its SUVs are produced by the contract manufacturing company Magna Steyr in Austria. Last year, Magna produced more than 10,193 Fisker SUVs, but fewer than half of those were delivered to customers within the calendar year, the company announced in March.
In Saga of NBC and Ronna McDaniel, Perks and Perils of Partisan Talk on TV None - Trying to juice ratings in an election year, a major TV network hired a pair of provocative commentators from the political establishment to inject some spiky opinion into its otherwise-staid campaign coverage. The result — the Gore Vidal and William F. Buckley Jr. debates of 1968 — was a hit with viewers and an unexpected success for ABC News. It also inspired television news divisions to bring more partisan voices into their coverage, a trend that intensified at the dawn of the 24-hour cable news era in the early 1980s. These days, the role of the “paid contributor” — a commentator on contract, to bloviate on demand — is fully baked into the TV news ecosystem. Typically, the role is occupied by a political veteran who can offer an insider perspective on the news of the day, drawing on experience as, say, an elected official, Beltway strategist or West Wing aide. Or, in the case of Ronna McDaniel, as the former chairwoman of the Republican Party. Ms. McDaniel’s tenure as a paid contributor at NBC News was less successful than those of many of her peers. (Her two immediate predecessors as Republican leader, Michael Steele and Reince Priebus, work for MSNBC and ABC News.) Her hiring led to an open revolt by NBC and MSNBC stars, who said it was disqualifying that Ms. McDaniel had been involved in former President Donald J. Trump’s efforts to undermine the 2020 election results.
MAGA sales tax: The Trump plan to make everything more expensive None - Trump “is running on jacking up prices on a huge amount of the goods we use every day. I know it sounds like I'm making this up. But genuinely his core economic policy proposal right now is an across-the-board, consumer sales tax for every good imported into the United States,” says Chris Hayes on Trump's tariff plan. March 28, 2024
'She surrendered': GOP official suing Kari Lake for defamation speaks out None - Stephen Richer, the Republican Maricopa County Recorder who oversaw Kari Lake's 2022 election loss, took her to court over her repeated false claims that Richer rigged the election against her. Now he’s speaking out after Kari Lake made what Richer’s attorney calls an “unequivocal admission” in the case. March 28, 2024