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A year after Maui wildfire, chronic housing shortage and pricey vacation rentals complicate recovery 2024-08-04 04:45:05+00:00 - LAHAINA, Hawaii (AP) — Josephine Fraser worried her young family’s next home would be a tent. Fraser and her partner, their two sons and their dog had moved nine times in as many months, from one hotel room to another, since the deadliest U.S. wildfire in a century razed her hometown of Lahaina, on Maui. They would sometimes get just 24 hours to relocate, with no immediate word where they were headed. Josephine Fraser holds her son Zyon Dias, 18 months, as she watches Ireh Dias, 3, front, run around outside their small home at the Maui Lani housing development on July 10, 2024, in Kahului, Hawaii. (AP Photo/Lindsey Wasson) Josephine Fraser looks at a hung family photo the Council for Native Hawaiian Advancement printed for them in their new home on Wednesday, July 10, 2024, in Kahului, Hawaii. (AP Photo/Lindsey Wasson) Now, the Red Cross was warning that the hotel shelter program would soon end and Fraser was having trouble explaining to her 3-year-old why they couldn’t just go home. “He just kept asking, ‘Why?’” she said. “It really broke me.” Like Fraser, thousands on Maui have faced a year of anxious uncertainty since the Aug. 8, 2023, wildfire brought apocalyptic scenes of destruction to Lahaina, the historic former capital of the Hawaiian kingdom, forcing some survivors to flee into the ocean. The fire killed at least 102 people and displaced 12,000. Government and nonprofit groups have offered temporary solutions for displaced residents, including providing hotel rooms, leasing apartments, assembling prefabricated homes and paying people to take in loved ones. A year after the deadliest U.S. wildfire in a century devastated the historic Hawaii town of Lahaina, a chronic housing shortage is complicating recovery. Government and nonprofit groups have offered temporary solutions, including providing hotel rooms, leasing apartments, assembling prefabricated homes and paying people to take in loved ones. But the housing problems havee forced wildfire survivors to leave Maui for other islands or other states. Locals fear more will depart. (AP Video by Manuel Valdes, Lindsey Wasson, Mengshin Lin, Gabriela Aoun Angueira) Disaster housing experts say the effort, expected to cost more than $500 million over two years, has been unprecedented in its cooperation among federal, state, county and philanthropic organizations toward keeping the community together. But on a tourism-dependent island where affordable homes were in short supply even before the fire, a housing market squeezed by vacation rentals is undermining attempts to find long-term shelter for survivors even a year later. A “Now Open” sign is displayed as people eat at the Mala Ocean Tavern, a business on Front Street that survived the wildfire, Friday, July 5, 2024, in Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Tourists take photos near the water on a reopened area of Front Street, Friday, July 5, 2024, in Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Just about all of the 8,000 survivors put up in hotels have been moved into other accommodations, but many of those are pricey condos once rented to visitors, and they aren’t near residents’ jobs or their children’s schools. Work to finish developments of temporary homes has been slowed by the difficulty of clearing toxic debris, obtaining materials from thousands of miles away, blasting and grading volcanic rock and installing water, sewer and electricity lines. Members of at least 1,500 households have already left for other islands or states, some estimates say. Locals fear more will depart if they can’t find stable, affordable, convenient housing. The construction progress at Ka La’i Ola, a housing development aiming to provide relief and stable housing for wildfire victims, is pictured on Sunday, July 7, 2024, in Lahaina, Hawaii. (AP Photo/Mengshin Lin) Kuhio Lewis, CEO of the Council for Native Hawaiian Advancement, gives a tour of the Ke Ao Maluhia community at the Maui Lani housing development, Monday, July 8, 2024, in Kahului, Hawaii. (AP Photo/Lindsey Wasson) The construction progress at Ka La’i Ola, a 450-unit housing development aiming to provide relief and stable housing for wildfire victims, is pictured on Sunday, July 7, 2024, in Lahaina, Hawaii. (AP Photo/Mengshin Lin) That’s particularly painful for Hawaii, where leaders have long worried the islands are losing their culture as housing costs fuel an exodus of Native Hawaiian and other local-born residents. “You start to change the fabric of Hawaii,” said Kuhio Lewis, chief executive of the nonprofit Council for Native Hawaiian Advancement, which is involved in housing survivors. “That’s what’s at stake, is the future of who Hawaii is.” Gov. Josh Green told The Associated Press in an interview that the state is building transitional and long-term housing, changing laws to convert 7,000 vacation rentals to long-term rentals and swiftly settling lawsuits by fire survivors so plaintiffs can get the money they need to start rebuilding. FILE - Hawaii Gov. Josh Green, center, points to damage as he speaks with Federal Emergency Management Agency Administrator Deanne Criswell during a tour of wildfire damage on Aug. 12, 2023, in Lahaina, Hawaii. (AP Photo/Rick Bowmer, File) “Will some people leave? Of course,” Green said. “But most will stay, and they’ll really be able to stay if they get their settlements and can invest in their new houses.” Plaintiffs and the state reached a $4 billion global settlement on Friday, according to court filings. The Council for Native Hawaiian Advancement is building 16 modular units in Lahaina and 50 in Kahului, about an hour away, which kept Fraser and her family from winding up in a tent. In May, they moved into the first unit completed in Kahului, a small, white structure with two bedrooms and one bathroom. Josephine Fraser goes on a walk with her dog, Keao, and sons Ireh Dias, 3, front, and Zyon Dias, 18 months, outside their small home at Ke Ao Maluhia at the Maui Lani housing development on July 10, 2024, in Kahului, Hawaii. (AP Photo/Lindsey Wasson) The neighborhood remains a dusty construction site. The location is not convenient for her job as a manager at a hotel restaurant in Lahaina, but Fraser, 22, is grateful. She can cook for her kids and they can play outside. “Everyone’s choice is to move out of Lahaina, to move off-island, to move to the mainland, and that’s not something that we want to do,” she said. “Lahaina is our home.” Lahaina’s plight highlights an important question as human-caused climate change increases the severity and frequency of natural disasters: How far should governments go to try to keep communities together after such calamities? Shannon Van Zandt, with the Hazard Reduction and Recovery Center at Texas A&M University, said it’s a worthy goal. Being a part of a community that supports its members is important not only to their livelihoods but their mental health, she said. A driver passes by reproductions of messages of support drawn by children that line the Honoapiilani Highway near part of the burn zone on Friday, July 5, 2024, in Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Jennifer Gray Thompson, the CEO of nonprofit fire-recovery initiative After The Fire, said she has worked in 18 counties that have suffered massive wildfires since 2017, when she herself lived through blazes that ripped through Northern California’s wine country. Thompson has never before seen the Federal Emergency Management Agency invest so heavily in keeping a community together, she said. “Maui is the first one I’ve ever seen the federal government fully listen to the community ... and actually really try to do what they were asking, which was to keep people on the island,” she said. FEMA has focused on providing rentals for survivors who did not have insurance coverage for fire losses. The agency is directly leasing homes for more than 1,200 households and giving subsidies to 500 others to use on their own. Many of the rentals are in Kihei, 25 miles (40 kilometers) from Lahaina. Kalewalani Bancaco drives through the temporary housing development Ka La’i Ola on Thursday, July 11, 2024, in Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Still, the approach has proved tricky partly because vacation rentals and timeshares are one-quarter of the housing supply. In October, FEMA raised its rates by 75% to entice landlords to rent to locals. The agency is now paying $3,000 per month for a one-bedroom and more than $5,100 for a three-bedroom. People seeking housing on their own say that has inflated the rental market more. Frustration over the prevalence of vacation rentals after the fire prompted Maui’s mayor to propose eliminating them in areas zoned for apartments. The measure is still under consideration. FEMA also is constructing 169 modular homes next to a similar site being built in Lahaina by the state and the Hawaii Community Foundation. Residents begin moving into FEMA’s development in October. The $115 million project next to it will provide 450 homes for people who aren’t eligible for FEMA; the first families arrive in the coming weeks. Residents begin moving into FEMA’s development in October. Kalewalani Bancac stands in front of a Nano Nest, modular home unit planned for use in the housing development Ka La’i Ola on July 11, 2024, in Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Bob Fenton, FEMA’s regional administrator, told the AP the agency is even paying for survivors to fly elsewhere to live temporarily and to return when housing is ready. “Our goal is the community’s goal,” Fenton said. “We’ve tried to do everything we can to support that.” Lucy Reardon talks with her daughter Olivia Smith, 5, in her room at their new apartment, Monday, July 8, 2024, near Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Lucy Reardon tears up as daughter Olivia Smith, 5, motions to comfort her as she describes being displaced by the 2023 wildfires, Monday, July 8, 2024, at their new apartment near Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Olivia Smith, 5, who was displaced by the 2023 wildfires with her brother and parents, opens the door to the deck area at her family's new apartment, Monday, July 8, 2024, near Lahaina, Hawaii. (AP Photo/Lindsey Wasson) Lucy Reardon lost the home her grandfather passed down to her and her brother. When July came, she was still living in a hotel with her partner and two children. She twice declined offers from FEMA to move off the island temporarily and provide her a car, she said, because her grandfather would have wanted her to stay. Finally, the Council for Native Hawaiian Advancement moved her and her family into a two-bedroom apartment in West Maui, in the same building as her brother and his family. “To get that phone call was like somebody reaching out with light,” Reardon said. Her daughter will be able to start kindergarten with her cousins at the school she would have attended before the fire. Ron Sambrano, Tamara Akiona and Kawehi Akiona stand in the Akiona’s backyard on July 12, 2024, in Wailuku, Hawaii. Sambrano is Tamara Akiona’s uncle. (AP Photo/Manuel Valdes) Kawehi Akiona exits his living room to rake his backyard on July 12, 2024, in Wailuku, Hawaii. (AP Photo/Manuel Valdes) The council also is paying people who take in displaced loved ones, providing $500 a month per guest. That has been helpful for Tamara Akiona, who bought a small condo in central Maui with her husband after she lost the multigenerational home where she lived with 10 family members in Lahaina. The money has covered food and other costs since they took in her uncle, Ron Sambrano. “Without my family, I’d probably be living on the beach or under a bridge or something,” Sambrano said. Josephine Fraser stands with her sons Ireh Dias, 3, at left, and Zyon Dias, 18 months, right, in their small home at Ke Ao Maluhia at the Maui Lani housing development on July 10, 2024, in Kahului, Hawaii. (AP Photo/Lindsey Wasson) With stable housing, Fraser’s family can begin finding a routine once again. She works during the day while her partner watches their sons. She returns to do dinner and baths before he leaves for his night shift as a restaurant server. “It’s awesome to have a roof, somewhere to call home,” Fraser said. “At least for now, until we go back into Lahaina.” ___ McAvoy reported from Honolulu. Freelance journalist Mengshin Lin shot drone video accompanying this story. Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
Takeaways From Our Investigation Into Banned A.I. Chips in China 2024-08-04 04:01:16+00:00 - The United States has tried, with some success, to halt China’s progress with artificial intelligence amid concerns that the technology is helping modernize the Chinese military. U.S. officials have set up one of the most extensive tech blockades ever attempted, banning the export to China of advanced A.I. chips, which are primarily made by Nvidia, a Silicon Valley firm that is one of the world’s most valuable companies. But given the vast profits at stake, businesses around the world have found ways to skirt the rules, an investigation by The New York Times has found. Interviews with more than 85 current and former U.S. officials, executives and industry analysts, as well as reviews of corporate records and visits to companies in Beijing, Kunshan and Shenzhen, showed that there is an active trade in restricted A.I. technology in China — part of a global effort to help China circumvent U.S. national security restrictions.
The Office Ties That Bind 2024-08-04 04:01:06+00:00 - Send questions about the office, money, careers and work-life balance to workfriend@nytimes.com. Include your name and location, or a request to remain anonymous. Letters may be edited. A Question of Loyalty I work for a smallish company (fewer than 100 corporate employees and 1,500 field workers). I enjoy my job, the challenge, my co-workers and the good work-life balance. I was hired by a leader in the company who I’ve known professionally for many years. The role I was hired into was a bit of a stretch, and I think this person went out a bit on a limb to bring me in. Fast forward six years and I’ve excelled, been promoted and clearly made a positive impact on the company. One day, I received an email from a recruiter on LinkedIn about a similar role, but at a higher executive level and a larger organization with perhaps more prestige and compensation. I had not been looking for a new job, but I thought I shouldn’t pass up an opportunity. I got pretty far in the interview process and the role seemed like a good fit, but then I also felt a heavy dose of guilt for leaving the leader who believed in me. Because of my conflicted feelings, I ended up not coming off as enthusiastic about the role in my final round and, ultimately, I didn’t get the job. Perhaps it was all a blessing, but I’m not sure what to do if another opportunity presents itself. How loyal does one need to be to someone who is responsible for a lot of my career growth and success? — Albert My first question for you: How much do you want a new job versus thinking you should want a new job? (Correct me if I’m wrong, but it doesn’t sound like you need one.) We live in a culture, in which we feel we always need to be on the lookout for the next best thing. More prestige, more money, a bigger, “better” title. But what if we’re happy where we are? It sure sounds that you’re in an enviable, if not ideal, position: You enjoy your job, your colleagues, and the work-life balance that your job affords. A lot of us working stiffs don’t enjoy similar luxuries, or have this sort of luck. So the second question I’d urge you to ask yourself is this: What do you think the chances are that you might find these sorts of attributes in the context of a new job? As for the loyalty issue, this is tougher, which is why I’m saving it for last. Were we all so content with our jobs, and our supervisors, that we feel such a measure of loyalty that the prospect of a new job causes such soul-searching!
With Smugglers and Front Companies, China Is Skirting American A.I. Bans 2024-08-04 04:00:20+00:00 - In the southern Chinese city of Shenzhen, a mazelike market stretches for a half-mile, packed with stalls selling every type of electronic imaginable. It’s an open secret that vendors here are offering one of the world’s most sought-after technologies: the microchips that create artificial intelligence, which the United States is battling to keep out of Chinese hands. One vendor said he could order the chips for delivery in two weeks. Another said companies came to the market ordering 200 or 300 chips from him at a time. A third business owner said he recently shipped a big batch of servers with more than 2,000 of the most advanced chips made by Nvidia, the U.S. tech company, from Hong Kong to mainland China. As evidence, he showed photos and a message with his supplier arranging the April delivery for $103 million. The United States, with some success, has tried to control the export of these chips. Still, The New York Times has found an active trade in restricted A.I. technology — part of a global effort to help China circumvent U.S. restrictions amid the countries’ growing military rivalry.
Missile attack by Yemen’s Houthi rebels hits container ship in first attack in 2 weeks 2024-08-04 01:53:46+00:00 - DUBAI, United Arab Emirates (AP) — A missile attack by Yemen’s Houthi rebels struck a Liberian-flagged container ship traveling through the Gulf of Aden, authorities said Sunday, the first assault by the group since Israeli airstrikes targeted them. The Houthis offered no explanation for the two-week pause in their attacks on shipping through the Red Sea corridor, which have seen similar slowdowns since the assaults began in November over Israel’s war on Hamas in the Gaza Strip. But the resumption comes after the assassination of Hamas leader Ismail Haniyeh in Iran, the Houthis’ main benefactor, amid renewed concerns over the war breaking out into a regional conflict. The rebels separately said they shot down another U.S. spy drone Sunday, later publishing imagery of the aircraft’s wreckage on the side of the mountain. The attack on Saturday happened some 225 kilometers (140 miles) southeast of Aden in a stretch of the Gulf of Aden that has seen numerous Houthi attacks previously. It hit the container ship Groton just above its waterline, causing minor damage, said the Joint Maritime Information Center, a multinational coalition overseen by the U.S. Navy. An earlier missile attack missed the vessel, the JMIC said. “All crew on board are safe,” the center said. “The vessel was reported diverting to a port nearby.” The Groton had left Fujairah in the United Arab Emirates bound for Jeddah, Saudi Arabia. The Groton’s Greek managers did not respond to a request for comment. Brig. Gen. Yahya Saree, a Houthi military spokesman, claimed the attack in a prerecorded statement Sunday afternoon. The rebels have targeted more than 70 vessels with missiles and drones in a campaign that has killed four sailors. They have seized one vessel and sunk two in the time since. Other missiles and drones have been either intercepted by a U.S.-led coalition in the Red Sea or splashed down before reaching their targets. The Houthis maintain that their attacks target ships linked to Israel, the United States or Britain as part of the rebels’ campaign they say seeks to force an end to the Israel-Hamas war in the Gaza Strip. However, many of the ships attacked have little or no connection to the war — including some bound for Iran. In the case of the Groton, JMIC said that the ship “was targeted due to other vessels within its company structure making recent port calls in Israel.” The Houthis also have launched drones and missiles toward Israel, including an attack on July 19 that killed one person and wounded 10 others in Tel Aviv. Israel responded the next day with airstrikes on the Houthi-held port city of Hodeida that hit fuel depots and electrical stations, killing and wounding a number of people, the rebels say. In the time since, there has not been a reported attack on shipping through the Red Sea corridor, which links Asia and the Middle East to Europe through the Suez Canal. Since November, Houthi attacks have disrupted the $1 trillion flow of goods passing through the region annually while also sparking the most intense combat the U.S. Navy has seen since World War II. Saree also claimed in his statement that the Houthis shot down a U.S MQ-9 spy drone over Saada province. Shortly after the claim, the rebels published footage of the downed aircraft, showing Houthi supporters including children climbing over the wreckage and pointing at what appeared to be missiles the drone had carried. The U.S. Defense Department said it was aware of the claim and investigating, without elaborating. Since Yemen’s civil war started in 2014, when the Houthis seized most of the country’s north and its capital, Sanaa, the U.S. military has lost multiple drones to the rebels, while others may have been lost by the CIA. No military identification markings could be seen on the downed drone in the footage. MQ-9 drones, known as Reapers, cost around $30 million apiece. They can fly at altitudes of up to 50,000 feet (about 15,000 meters) and have an endurance of up to 24 hours before needing to land. The killing of Haniyeh in Tehran has sparked concerns of a new escalation in the Israel-Hamas war. Already, the U.S. military says it will move a fighter jet squadron to the Middle East and keep an aircraft carrier in the region. The USS Abraham Lincoln aircraft carrier strike group will enter the Middle East to replace the USS Theodore Roosevelt carrier strike group, which is in the Gulf of Oman. Other ships are in the Mediterranean Sea with a Marine detachment if regional evacuations become necessary. Meanwhile Saturday, the U.S. military’s Central Command said its forces destroyed a Houthi missile and launcher in Yemen. Hamas’ Oct. 7 attack on Israel, which killed 1,200 people and saw 250 others taken hostage, sparked the war. In the time since, Israel has killed at least 39,580 Palestinians in the Gaza Strip and 590 in the Israeli-occupied West Bank, Palestinian health officials say.
Defector Says Donald Trump's Return To White House Would Be 'Once-In-A-Thousand-Year Chance' For North Korea 2024-08-03 19:56:00+00:00 - North Korea views Donald Trump‘s potential return to the White House as a “once-in-a-thousand-year chance” to advance its nuclear ambitions and diplomatic leverage. Ri Il Kyu, the highest-ranking defector to flee North Korea since 2016, met with Kim Jong Un on seven separate occasions, reported BBC. The former diplomat, who was stationed in Cuba when he fled with his family to South Korea last November, recalls “shivering with nerves” during his first meeting with Kim. However, in each of their meetings, he observed Kim to be “smiling and in a good mood.” In his first interview with an international broadcaster, Ri offers a rare glimpse into the ambitions of one of the world’s most secretive and repressive states. Also Read: Kim Jong Un’s North Korea Allegedly Obtains South Korean Spy Data: Military Intel Employee Arrested For Leaking Secrets He asserts that North Korea still sees Trump as a potential negotiating partner for its nuclear weapons program despite talks with Kim collapsing in 2019. Trump has previously praised his relationship with Kim as a major achievement, even claiming they “fell in love” through their letters. Last month, he suggested at a rally that Kim would prefer him back in office, saying, “I think he misses me, if you want to know the truth,” BBC added. According to Ri, North Korea aims to leverage its close personal ties with Trump, despite Pyongyang’s official claim last month that it “did not care” about the U.S. presidential election. He suggests that North Korea is unlikely to abandon its nuclear weapons but might negotiate a freeze on its nuclear program in exchange for sanctions relief from the U.S. Ri contends that North Korea views its recent alliance with Russia, bolstered by the Ukraine war, as advantageous. He reveals that Pyongyang has sold millions of rounds of ammunition to Moscow, gaining food, fuel, and potentially military technology in return. This arrangement, according to Ri, has primarily benefited North Korea by enabling it to further develop its nuclear weapons program. “North Korea understands that the only path to its survival, the only way to eliminate the threat of invasion and develop its economy, is to normalise relations with the United States,” Ri says. Read Next: Image: Shutterstock
Ina Jaffe, Dogged and Award-Winning NPR Reporter, Dies at 75 2024-08-03 19:49:29+00:00 - Ina Jaffe, an NPR correspondent for roughly 40 years who was known for her unflinching approach to journalism and was the first editor of the network’s initial iteration of the weekly national news show “Weekend Edition Saturday,” died on Thursday at a nursing home in Los Angeles. She was 75. Ms. Jaffe had been living with metastatic breast cancer for several years, her husband, Lenny Kleinfeld, said. Often described by her colleagues at NPR as a “reporter’s reporter,” Ms. Jaffe had a keen sense of the line separating the equitable and the unjust. The breadth of her journalistic expertise grew over the decades, beginning with the politics beat and evolving in later years to analyses that chronicled what it means to grow older in America. In addition to “Weekend Edition,” she contributed stories for the daily afternoon news program “All Things Considered.”
Trump Returns To Georgia: Battleground Becomes Key Focus As Presidential Race Tightens 2024-08-03 19:41:00+00:00 - Donald Trump returns to Georgia on Saturday to campaign in a battleground state that he lost by fewer than 12,000 votes in 2020 and that both parties view as competitive once more. Trump’s event with his running mate JD Vance follows Kamala Harris‘ recent rally with thousands at the same Georgia State University basketball arena in Atlanta, reported AP News. Both parties are targeting Georgia, a crucial Sun Belt battleground. Just two weeks ago, Democrats shifted focus from Georgia to Midwestern “blue wall” states crucial to a Democratic victory. But Joe Biden‘s exit from the campaign and Harris’ move to the top of the ticket have sparked Democratic hopes for a broader electoral strategy. “The momentum in this race is shifting,” Harris told a lively crowd on Tuesday. Also Read: Donald Trump Accepts Invitation To Debate Kamala Harris On Fox News, Calls Her ‘Crazy’ In the 2020 election, Biden won Georgia by 11,779 votes. Trump, who then pressured Georgia Secretary of State Brad Raffensperger to “find” votes, was indicted for his efforts to overturn the results, AP News added. However, the case is currently on hold as courts determine if the Fulton County District Attorney can proceed with the prosecution. In announcing Saturday’s rally, Trump’s campaign blamed Harris for inflation and rising gas prices since the end of the Trump administration. The campaign also highlighted the case of Laken Riley, a Georgia nursing student killed while jogging on February 22, with a Venezuelan citizen indicted for her murder. Trump and his allies have frequently branded Harris as the Biden administration’s “border czar,” referring to her role in leading White House migration efforts. The focus by both Harris and Trump on Georgia highlights its renewed importance for November. Trump’s rally in Atlanta targets the state’s largest media market, including traditionally Republican suburbs and exurbs that have become more competitive due to increased diversity and population growth. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next:
Bill Ackman's Pershing Square Sinks 4.7% In July, Dashing 2024 Gains - Universal Music Group (OTC:UMGNF) 2024-08-03 19:11:00+00:00 - Bill Ackman‘s primary hedge fund wiped out most of its 2024 gains during late July, adding to the billionaire’s troubles after he withdrew his IPO for a US-traded closed-end fund this week due to weak demand. Pershing Square Holdings had gained 8.7% by mid-July but lost 4.7% in the latter half of the month, leaving it with a year-to-date gain of just 0.7%, reported Bloomberg. A major factor in the decline was Pershing Square’s investment in Universal Music Group UMGNF, whose shares fell 24% following disappointing earnings last week. Meanwhile, Ackman’s ambitious plan to launch a new investment fund on the New York Stock Exchange has faltered, added Bloomberg. Also Read: As Bill Ackman’s Pershing Square Struggles To Reach IPO Stage, Major Hedge Fund Opts Out Investing In Upcoming Fund: Report Ackman spent recent weeks promoting his U.S.-traded closed-end fund, initially projected to raise $25 billion, but withdrew the deal on July 31 after only $2 billion in interest. Earlier this week, Pershing Square decided to withdraw the IPO entirely. Ackman acknowledged that a key concern was whether investors would be better off waiting to invest in the aftermarket rather than during the IPO. This led to a decision to reevaluate the IPO’s structure, with plans to return with a revised proposal according to CNBC. Through July, the S&P 500 Index had risen by 15.8% for the year. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next: Image created using artificial intelligence via Midjourney.
Trump Shooting Security Failure: Separate Command Posts And Radio Traffic Gap Hampered Secret Service Response 2024-08-03 18:56:00+00:00 - Approximately 30 seconds before shots were fired at Donald Trump at a rally in Butler, Pa., last month, a local police officer reportedly had radioed about a man with a gun. This critical information did not reach the Secret Service at the time because their agents were stationed at a different command post and did not have access to the same radio traffic, reported NBC News. “That was unique,” Ronald Rowe Jr., the acting director of the Secret Service, said Friday. “We have to rethink where we put our security rooms and we are in fact doing that now moving forward.” The revelation highlights a key unanswered question from the July 13 assassination attempt: Why wasn’t Trump removed from the stage after police spotted a gunman on a rooftop less than 150 yards away? Also Read: Trump Shooter Researched Assassination Attempt On Slovakia’s Prime Minister, FBI Provides Details On ‘Careful Planning’ The would-be assassin, Thomas Matthew Crooks, 20, began shooting minutes into Trump’s speech, injuring the former president, killing one person, and wounding two others, NBC News added. In the wake of the incident, the Secret Service has faced intense scrutiny. Initially, they were criticized for failing to secure the building used by the gunman, with the Secret Service initially blaming local law enforcement but later acknowledging their responsibility. Earlier this week, Rowe revealed a crucial 30-second gap between when police spotted Crooks and when he opened fire. Rowe detailed communication failures, noting that Secret Service agents and local partners were stationed in separate command posts, hindering coordination. “It is plainly obvious to me that we didn’t have access to certain information,” Rowe said. “Not by anybody’s fault. It just so happened that there was a sense of urgency [on the radio, and] that there might have been radio traffic that we missed. We have to do a better job of that,” NBC News added. Read Next: Image: Shutterstock
Trump's Ex-Lawyer Rudy Giuliani Cleared From Bankruptcy After Fee Dispute Settled 2024-08-03 17:56:00+00:00 - A judge has officially concluded Rudy Giuliani’s bankruptcy, paving the way for lawsuits related to his work for Donald Trump to move forward. This decision comes after a two-week delay caused by Giuliani’s failure to cover specific legal fees, reported Reuters. Giuliani filed for Chapter 11 bankruptcy in December after being ordered by a court to pay $148 million to two Georgia election workers he falsely accused of vote-rigging in the 2020 election. The bankruptcy filing had halted the collection of the judgment and frozen other lawsuits tied to his work for Trump. Also Read: Hunter Biden Abandons Lawsuit Against Former Trump Lawyer Rudy Giuliani, Court Documents Reveal Bankruptcy Ends After Fee Dispute Resolution U.S. Bankruptcy Judge Sean Lane ended Giuliani’s bankruptcy on Friday, following his July 12 ruling that Giuliani should be removed from bankruptcy due to missing financial disclosures and refusal to repay creditors. Last week, Lane considered alternatives such as appointing a trustee or compelling Giuliani to testify about his refusal to pay fees. Giuliani has now resolved the fee dispute by depositing $100,000 into an escrow account, with the final amount owed to be determined. Creditors had sought approximately $350,000 for their investigation into his finances. Remaining fees will be covered by selling Giuliani’s New York penthouse or luxury Florida condo. Giuliani’s attorney, Heath Berger, confirmed that the New York apartment is up for sale and Giuliani plans to relocate to Florida. Lawsuits and Appeals Continue The bankruptcy had stalled the collection of the $148 million judgment against Giuliani by two Georgia election workers and froze other lawsuits from his Trump-related work. Giuliani plans to appeal the defamation verdict, according to his attorneys. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next:
Warren Buffett's Berkshire Hathaway slashes Apple stake by almost 50% 2024-08-03 14:58:00+00:00 - How the 25 wealthiest Americans can pay little to no federal income taxes Investor Warren Buffett 's company recorded a $47 billion gain on stock sales during the second quarter as he slashed Berkshire Hathaway's massive Apple stake, but a drop in the paper value of its remaining investments drug down earnings despite improvements in the myriad companies it owns. Selling off a big chunk of its Apple holdings was the quarter's biggest news — Buffett once called the company's stake in the iPhone maker a pillar of Berkshire's business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock. Berkshire didn't give an exact count of its Apple shares in Saturday's report, but it estimated the investment was worth $84.2 billion at the end of the second quarter even though shares soared over the summer as high as $237.23. At the end of the first quarter, Berkshire's Apple stake was worth $135.4 billion. Berkshire said it earned $30.348 billion, or $21,122 per Class A share, during the second quarter. That's down from $35.912 billion, or $24,775 per A share, a year ago when the paper value of its investment portfolio was up $24.2 billion. This year the value of the investments Berkshire continues to hold fell $28.2 billion. Buffett has long cautioned investors that it's better to look at Berkshire's operating earnings when judging its performance because those figures exclude investment gains and losses which can vary widely from quarter to quarter. By that measure, Berkshire's operating earnings grew more than 15% to $11.598 billion, or $8,072.16 per Class A share, from $10.043 billion, or $6,928.40 per Class A share, a year ago. Geico led the improvement of Berkshire's businesses while many of its other companies that are more sensitive to the economy reported lackluster results. The results easily topped the $6,530.25 earnings per share that four analysts surveyed by FactSet Research predicted. Berkshire owns an assortment of insurance businesses along with BNSF railroad, several major utilities and a varied collection of retail and manufacturing businesses, including brands like Dairy Queen and See's Candy. Earlier this year, The New York Stock Exchange said it had resolved a technical problem that had Class A shares of Berkshire Hathaway seemingly down almost 100%.
Kamala Harris' Urgent VP Decision: Who Will Help Her Take On Trump? 2024-08-03 14:52:00+00:00 - As Kamala Harris prepares to formally accept the Democratic presidential nomination, she faces the crucial task of selecting a running mate who can enhance her White House bid and counter Donald Trump’s challenge. Just two weeks after Joe Biden’s unexpected exit from the race, Harris has surged to the forefront of the Democratic ticket, securing the party’s nomination in a “virtual roll call” on Friday. Polls indicate she is closing the gap with Trump, igniting renewed enthusiasm among Democrats, reported The Guardian. Top VP Contenders Harris’ decision is complicated by the need to balance momentum with appeasing the Democratic base. Key contenders for the VP slot include: Josh Shapiro : Governor of Pennsylvania and former state attorney general with high bipartisan approval but facing progressive scrutiny. : Governor of Pennsylvania and former state attorney general with high bipartisan approval but facing progressive scrutiny. Andy Beshear : Kentucky Governor with a reputation for progressive policies and a strong stance against Trump and his running mate, JD Vance . : Kentucky Governor with a reputation for progressive policies and a strong stance against Trump and his running mate, . Tim Walz : Minnesota Governor known for his progressive views and military background. : Minnesota Governor known for his progressive views and military background. JB Pritzker : Illinois Governor with significant political and financial influence. : Illinois Governor with significant political and financial influence. Mark Kelly : Senator from Arizona, a former Navy pilot and astronaut with strong credentials. : Senator from Arizona, a former Navy pilot and astronaut with strong credentials. Pete Buttigieg: Transportation Secretary and former presidential candidate. Shapiro’s odds in online betting markets jumped from 33% to over 70% on July 30 and 31 after the governor canceled weekend fundraising events in the Hamptons for Aug. 3 and 4. “The Governor’s trip was planned several weeks ago and included several fundraisers for his own campaign committee,” Shapiro Spokesman Manuel Bonder told FOX 29. Harris will kick off a campaign tour with her new running mate in Philadelphia on Tuesday, meaning that an announcement may be imminent. The city for the kickoff has led to speculation that Shapiro will be her choice. Also Read: Kamala Harris Secures Democratic Nomination: Will Momentum Propel Her To November Victory After Biden’s Exit? Key Considerations Harris, at 59, is evaluating candidates who range from 51 to 60 years old, the report read. The choice must address perceptions about a ticket with either two women or two people of color. The selected VP will need to effectively challenge JD Vance, especially in potential debates. Despite a challenging start, Harris’ prospects have brightened significantly since Biden’s decision, boosting fundraising and voter enthusiasm. Harris Faces Key VP Choice As Election Nears The vice-presidential role on the ticket, often undervalued, can be crucial for rallying support and providing effective counterpoints in the campaign. Harris’s decision will be pivotal in shaping the upcoming race against Trump. As the vetting process wraps up, overseen by former U.S. Attorney General Eric Holder, Harris is expected to announce her choice soon. The decision, shrouded in strategic importance, could well influence the final outcome of the presidential race. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Next: Photo: Shutterstock
Warren Buffett surprises by slashing Berkshire Hathaway’s longtime Apple stake in second quarter 2024-08-03 13:41:10+00:00 - OMAHA, Neb. (AP) — Billionaire Warren Buffett slashed Berkshire Hathaway’s massive Apple stake in a move that could prove unsettling for the broader stock market — both because the investor is so revered and because there had been little positive financial news lately. Just two years ago Buffett called the stock one of the four giants of his conglomerate’s business alongside Berkshire insurance, utility and BNSF railroad businesses that it owns outright. That gave investors the impression that Buffett might hold onto Apple indefinitely as he has with the Coca-Cola and American Express shares he bought decades ago. However, he has trimmed the Apple stake over the past year and has recently also sold off some of his stock in Bank of America and Chinese EV maker BYD while doing very little buying. As a result, Buffett is now sitting on nearly $277 billion in cash, up from what was already a record $189 billion just three months earlier. “This could could alarm the markets especially given the news from last week” with weak tech earnings, a disappointing jobs report and uncertainty about the future of interest rates, Edward Jones analyst Jim Shanahan said. Buffett has consistently lavished praise on Apple CEO Tim Cook, who attended Berkshire’s annual meeting in Omaha in May, and talked about the way consumers are feverishly devoted to their iPhones and don’t like to switch. He did trim more than 10% of Berkshire’s Apple stake in the first three months of this year when he sold off more than 116 million shares, but the sale disclosed Saturday was a much bigger move. Wedbush tech analyst Dan Ives said in a research note that he thinks “Buffett is a core believer in Apple and we do not view this as a smoke signal for bad news ahead.” Apple remains the largest investment in Berkshire’s portfolio by far — more than double its Bank of America stake. Ives said he thinks the recent tech sell-off is only a temporary distraction from the industry’s long-term boom. Berkshire didn’t give an exact count of its Apple shares in Saturday’s report, but it estimated the investment was worth $84.2 billion at the end of the second quarter even though shares soared over the summer as high as $237.23. At the end of the first quarter, Berkshire’s Apple stake was worth $135.4 billion. Shanahan estimates that Berkshire still holds about 400 million Apple shares. Still, while CFRA Research analyst Cathy Seifert said she looks at the Apple sale more as responsible portfolio management because the tech giant had become such a large portion of Berkshire’s holdings, it does look like Buffett may be preparing for a downturn. “This is a company girding itself for a weaker economic climate,” Seifert said. Berkshire reported a small drop in its bottom-line earnings because of a drop in the paper value of its investments. The company said it earned $30.348 billion, or $21,122 per Class A share, during the second quarter. That’s down from $35.912 billion, or $24,775 per A share, a year ago. Buffett has long cautioned investors that it’s better to look at Berkshire’s operating earnings when judging its performance because those figures exclude investment gains and losses which can vary widely from quarter to quarter. By that measure, Berkshire’s operating earnings grew more than 15% to $11.598 billion, or $8,072.16 per Class A share, from $10.043 billion, or $6,928.40 per Class A share, a year ago. Geico led the improvement of Berkshire’s businesses while many of its other companies that are more sensitive to the economy reported lackluster results. The results easily topped the $6,530.25 earnings per share that four analysts surveyed by FactSet Research predicted. Berkshire owns an assortment of insurance businesses along with BNSF railroad, several major utilities and a varied collection of retail and manufacturing businesses, including brands like Dairy Queen and See’s Candy.
Hims & Hers Stock Falls on DexCom Fears: Analysts Predict Rally 2024-08-03 11:30:00+00:00 - Recently, weight loss and diabetes watch company DexCom Inc. NASDAQ: DXCM stock plummeted by over 44% on a surprisingly bad quarterly earnings report. Management guided lower – much lower – than analysts had expected to see revenue and earnings per share (EPS), and it all had to do with the decreasing demand for the company’s medical devices, which are being replaced more and more by effective medicine lately. Hims & Hers Health Today HIMS Hims & Hers Health $17.58 -0.93 (-5.02%) 52-Week Range $5.65 ▼ $25.74 Price Target $19.07 Add to Watchlist Unfortunately, the crash in this company also brought down all stocks associated with weight loss and diabetes monitoring devices (and medicine). This is a perfect example of market irrationality; as earnings season kicks off, one company’s lower guidance becomes the expectation that all other similar companies will also report lower guidance. Get Hims & Hers Health alerts: Sign Up This couldn’t be further from the truth, especially for a company like Hims & Hers Health Inc. NYSE: HIMS, since that brand has only recently started operating in the weight loss arena, and definitely not through devices but instead through medicine. There are no other reasons for the stock to be on an 18.5% decline other than the wrong perception born off DexCom’s crash; here’s why this dip might not last. Why Wall Street is Bullish on Hims & Hers Stock This company is not only part of the medical stocks group; it also combines the growth potential and advancements in the technology sector. The mix gives investors the best of both worlds: stability and growth in the face of one of the biggest market rotations in the cycle. According to the employment situation report (NFP) for the month of July, a disappointing 114,000 jobs were added to the U.S. economy. However, what might interest Wall Street today is where most of these jobs went. Up to 64,000 jobs went straight to the healthcare sector—that’s 56.1% of the total. Hims & Hers Health MarketRank™ Stock Analysis Overall MarketRank™ 2.85 out of 5 Analyst Rating Moderate Buy Upside/Downside 8.5% Upside Short Interest Bearish Dividend Strength N/A Sustainability N/A News Sentiment 0.78 Insider Trading Selling Shares Projected Earnings Growth 90.00% See Full Details Being in the middle of the hiring sprees that come with exposure to the healthcare sector, as well as the untapped growth potential coming from the technology aspect of the business, has led Wall Street analysts to forecast up to 90% earnings per share (EPS) growth for the company in the next 12 months. This growth potential should be enough to support Hims & Hers stock in the face of a double-digit selloff today. However, the main support today is found through price targets set by analysts at Bank of America, which now value the company at $26 a share. To prove these targets right, Hims & Hers stock must rally 49.4% from its current level. This is also why up to $260.2 million of institutional capital has entered the company, most of which came from a 1% boost in ownership by the Vanguard Group, which now has a $221.3 million stake in Hims & Hers stock, or 6.7% ownership. Market Sentiment on Hims & Hers Stock Wall Street is only half the picture for Hims & Hers stock. The other half is found on Main Street since markets move the stock at the end of the day. Currently, sentiment has not been great for the company, as the stock’s short interest has risen by over 12.8% in the past month. This means that many bearish traders have taken on their views of the company, shorting so much of the stock that the net percentage of shares shorted stands at 13.1% today. However, this could be good news in the coming months. If or when the stock recovers, this considerable short interest could trigger a short squeeze, meaning these short sellers will need to buy back the stock they borrowed to close their positions. Buying pressure could act as additional upward momentum to crystalize how Wall Street analysts view the stock today. More than that, investors can decrypt the stock market’s message regarding where Hims & Hers stock should be trading. This is done through valuation multiple analysis, finding the positive outlier in the pack for a potential price move. On a price-to-book (P/B) basis, Hims & Hers stock does command a massive premium above the rest of the medical sector. A multiple of 11.5x will mean a premium of 139.5% above the medical sector’s average valuation of 4.8x today, and stocks always have a good reason to trade at valuation multiples. One of these reasons is realizing that Hims & Hers saw success before even tapping into the GLP-1 weight loss market. Whether there is any adverse effect on the industry, this company is poised to fill in the double-digit EPS growth picture with or without its weight loss business. Hims & Hers Health, Inc. (HIMS) Price Chart for Sunday, August, 4, 2024 Before you consider Hims & Hers Health, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hims & Hers Health wasn't on the list. While Hims & Hers Health currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Intel Loses a Quarter of Its Value After Horrible Earnings Report 2024-08-03 11:00:00+00:00 - Intel Today INTC Intel $21.48 -7.57 (-26.06%) 52-Week Range $20.42 ▼ $51.28 Dividend Yield 2.33% P/E Ratio 22.38 Price Target $33.41 Add to Watchlist Intel NASDAQ: INTC has historically been one of the world’s leading semiconductor companies. That position has changed, especially after considering its Q2 2024 earnings, released on Aug 1, 2024. Shares plummeted the day after the release, declining over 25%. The firm has now lost over half of its value since 2024 began. First, we'll check out the firm's annual filing to see how it's operating, then break down the release. We'll look at some strategic mistakes Intel has made and examine potential ways to fix them. Lastly, we'll take a look at the latest Wall Street analysts' price targets. Get NVIDIA alerts: Sign Up Intel’s Segments: It’s All About the CPUs Intel’s business operates as three reportable segments: the Client Computing Group (CCG), Data Center and AI (DCAI), and Network & Edge (NEX). CCG primarily revolves around the development and sale of personal computer central processing units (CPUs). These are the “brains” of computers that perform calculations and run applications. It accounted for 54% of revenue in 2023 but was the firm’s only profitable segment in the year. It had an operating margin of 22%. DCAI also manufactures processors but sells them to large enterprises for running their cloud software in large data centers. It accounted for 29% of revenue. NEX designs processors for edge computing, which process data close to the source where it is generated rather than sending it back to a data center. This is essential for industries like autonomous driving, which need computers to make decisions quickly and succeed. It made up 11% of revenue. Advanced Micro Devices NASDAQ: AMD is Intel's biggest competitor. Intel’s Massively Disappointing Earnings Release The company announced a wave of bad news in its earnings results. The company fell drastically short of adjusted earnings per share (EPS) estimates. Their figure came in at $0.02, compared to the $0.10 expected. Adjusted EPS declined 84% from a year ago. Revenue came in at $150 million below expectations at $12.83, down 1% from a year ago. Another damaging piece of news was the company’s Q3 adjusted EPS guidance, which it pinned at a loss of $0.03 per share. Analysts expected income of $0.31 per share. Intel also plans to reduce costs significantly. It announced a plan is underway to reduce operating expenses and capital expenditures by $10 billion in 2025. This cost reduction will include a "greater than 15%" cut in staff. The firm plans to implement most of this headcount cut by the end of 2024. Lastly, the firm said it would suspend its $0.50 per share annual dividend starting in Q4. Intel Co. (INTC) Price Chart for Sunday, August, 4, 2024 Intel’s Strategic Errors and Decline Intel doesn’t seem to have a great plan to climb out of the hole it has dug for itself. Problems might very well start at the top of the organization. Since CEO Pat Gelsinger took the helm in 2021, shares are down 65%. In the three years starting in 2018, shares were up 36%. The company has made strategic errors, especially with its delay in entering the data center graphics processing unit (GPU) market. GPUs are simply much more important when it comes to AI data processing than CPUs and come with a higher profit margin. NVIDIA NASDAQ: NVDA has been in this market for years and now has a massive advantage. NVIDIA’s operating margin sits at 60% compared to 1% for Intel. Intel is even losing its advantage in data center CPUs. The company’s market share for these products declined by 5.6% from the previous year, which AMD took from it. Intel’s Band-Aid Solutions Won’t Fix the Problem Intel has been moving in the wrong direction in nearly every way. The company is likely making a good decision to cut its dividend so that it can reinvest cash into growth areas. The decision to cut staff could also be appropriate, depending on how they redeploy their workforce afterward, but it will also cause turmoil in the short term. These moves feel a bit desperate, making it look like the firm is doing something to change without fixing the root problem. A solid argument can be made that leadership needs to change so the firm can survive and take advantage of opportunities to thrive. It has done the opposite in the current CEO’s tenure. An abundance of Wall Street analysts dropped price targets for Intel after the earnings release. Among those 24 analysts, the company’s new average price target is $26.45, which implies an upside of 25%. Before you consider NVIDIA, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
MarketBeat Week in Review – 7/29 - 8/2 2024-08-03 11:00:00+00:00 - Is this sell-off closer to the beginning or closer to the end? That’s what many investors may be feeling after a week that saw a sharp, tech-led sell-off. However, after the July jobs report, the sell-off gained steam. In mid-day trading, the Dow had its worst day in a year. But it wasn't just the Dow. All the major indexes were down at least 1%, with the NASDAQ down over 3%. Technical indicators show that the market could move lower for the rest of the summer. But help may be coming from the Federal Reserve. Expectations are rising that the Fed will cut not just in September but by 50 basis points. However, investors need to tread carefully because initial rate cuts historically send equity prices lower. The MarketBeat team is here to help you navigate that volatility. Here are some of our most popular articles from this week. Get Barrick Gold alerts: Sign Up Articles by Jea Yu Gold has been a solid investment this year, but it takes some time for gold mining stocks to catch up. However, Jea Yu analyzes why Barrick Gold Co. (NYSE: GOLD) appears to be on the verge of a breakout as the company projects its production costs will fall as production rises in the second half of 2024. If the market is on the verge of a rotation, consumer staples may be a significant beneficiary. If so, Yu explains why investors may want to look closely at Kimberly-Clark Co. NYSE: KMB. The company’s stock dipped after a slight revenue miss, but the company raised its guidance for the remainder of the year, which means the dip could set the stage for a new record high. Broadcom Inc. NASDAQ: AVGO has been a strong performer after announcing its 16:1 stock split. But Yu writes why there’s more to like about Broadcom’s stock than a more attractive price and gives investors four reasons to believe AVGO stock may run higher after the stock split. Articles by Thomas Hughes You’re hearing a lot of talk about sector rotation. One sign of that is coming from the Russell 2000 index which is up 7.4% in the past month. This week, Thomas Hughes highlighted three top Russell 2000 stocks that are leading this run-up and still have room to move higher. Hughes gave investors another small-cap pick by analyzing the outlook for Joby Aviation Inc. NYSE: JOBY, a leader in the emerging electric vertical take-off and landing (eVTOL) vehicle space. Analysts are bidding JOBY stock higher as the company is showing solid financial support from several key partners. However, Hughes also believes that you may not want to abandon big tech completely, particularly if you look at the recent earnings report from Meta Platforms Inc. NASDAQ: META. The company is showing its ability to monetize AI, and analysts are forecasting new, all-time highs for META stock. Articles by Sam Quirke Micron Technology Inc. NASDAQ: MU may not be one of the Magnificent Seven stocks, but it was having a magnificent run until recently. MU stock is down over 23% in the last month, but Sam Quirke explains why industry trends, in addition to fundamental and technical metrics, are reasons investors should consider buying this dip in MU stock. If you’re looking for a stock in an emerging sector, Quirke explains why you may want to look into Block Inc. NYSE: SQ. The company is one of the key players among blockchain stocks, and, as Quirke notes, SQ stock appears to be forming a bottom as analysts note the company’s emerging revenue-generating products. Articles by Chris Markoch Many investors look for technical signals to determine when to start or add to a stock position. One indicator is finding stocks trading near 52-week lows. This week, Chris Markoch wrote about three stocks that are presenting buying opportunities even as they trade at or near their 52-week lows. Markoch also wrote about the blowout earnings report from Merck & Co. Inc. NYSE: MRK. The company delivered a double beat as Keytruda sales remain strong and investors are becoming enthusiastic about the company’s efforts to bring new drugs to market. The end of this week brought earnings reports from many of the big oil companies. Chevron Corp. NYSE: CVX stock is sinking after an earnings miss. Markoch analyzes the report and explains why CVX stock is still a solid long-term opportunity for investors. Articles by Ryan Hasson Many investors may be concerned over the recent sell-off in chip stocks. However, as Ryan Hasson points out, investors shouldn’t let short-term volatility cause them to ignore the long-term growth prospects that still exist for this sector, including the three semiconductor stocks that he analyzes for their likelihood of future growth. As the Health Care Select SPDR Fund NYSEARCA: XLV shows, the healthcare sector is benefiting from sector rotation, and Hasson analyzes two healthcare stocks that look like breakout performers during this period of sector rotation. Finance stocks are also on the rise as investors may be seeking safety in the midst of volatility. Hasson highlights three financial stocks that stand out after a strong earnings season. Articles by Gabriel Osorio-Mazilli This week, Gabriel Osorio-Mazilli explained to investors why the pending normalization of the yield curve is a bullish signal for energy stocks, which have traditionally performed well in past instances when the economy went through this cycle. Osorio-Mazilli is also studying the small-cap market and gave investors his own list of three small-cap stocks that are likely to benefit as investor money begins to flow into them. And with many restaurant stocks under pressure as the consumer continues to show weakness, Osorio-Mazilli analyzed the bullish earnings report from Shake Shack Inc. NYSE: SHAK, which is seeing its share price move 17% higher after a strong earnings report. Articles by Leo Miller This week, Leo Miller showed investors why it’s a good idea to have some cash on the sidelines before earnings season. The stocks that beat on earnings can move higher, but those that don’t are frequently punished. Among the winners this week, Miller highlighted the positive earnings report from the Bristol-Myers Squibb Co. NYSE: BMY, which investors are still rewarding even with existing concerns over future patent expirations. The same was true with Mastercard Inc. NYSE: MA, which delivered a double beat on earnings that even its rival Visa Inc. NYSE: V couldn’t match. On the other hand, Miller wrote about Procter & Gamble Co. NYSE: PG, which shows that there are always outliers. The company beat on earnings but missed on revenue, and PG stock is falling as a result. However, Miller explains why the sell-off may be overdone, which may give investors a compelling buying opportunity. Before you consider Barrick Gold, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Barrick Gold wasn't on the list. While Barrick Gold currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
About half of US state AGs went on France trip sponsored by group with lobbyist and corporate funds 2024-08-03 04:03:23+00:00 - About half the U.S. state attorneys general traveled to France in a trip cosponsored by a group mostly funded by companies, including some under scrutiny of the top state lawyers. Attorneys general are among the most visible officials in state governments and the job can be a launching pad to the world stage. Vice President Kamala Harris, the presumptive Democratic presidential nominee, previously held the post in California. Joining together gives AGs a chance to share concerns, develop bonds and strategies and talk with officials in other countries. The trips can be posh and provide opportunities for company lobbyists to rub elbows with them. Companies that have picked up the bill and sent representatives in recent years have been from the pharmaceutical, auto, financial, online gaming and tech industries, among others. Organizers said this summer’s trip is “solely focused on commemorating and paying tribute to the achievements and sacrifices of those who fought in Normandy,” even though they are taking place nearly two months after the 80th anniversary of the D-Day invasion on June 6, which was commemorated by a gathering of world leaders. The Attorney General Alliance, known as AGA cosponsored the trip to France with the National Association of Attorneys General, a century-old group. AGA would not provide dates for the event, but one AG said it was set for July 29 to Aug. 3. The trip illuminates how corporate lawyers and lobbyists can gain access to officials who regulate their businesses with help from the Attorney General Alliance, one of the groups behind the event. “Lobbyists essentially fund these trips,” said Christopher Toth, a former National Associations of Attorneys General executive director. “They funnel the money through AGA, and then that insulates the AGs from being criticized that they’re taking money from lobbyists.” It also shields them from criticism that they are traveling abroad on taxpayers’ dime. The AGA said 26 attorneys general were going on the trip. The nonprofit group said the Olympics were not on the itinerary, though the marquee international athletic competitions coincided with it. In 2022, the group sponsored a trip to Qatar in time for the FIFA World Cup soccer games, which some AGs attended. The group said it would not make public the 2024 schedule or exactly which AGs were attending in France because of security concerns. “This event, like all others, was scheduled based on availability of attorneys general and hotel & conference space,” Tania Maestas, an AGA lawyer, said in an email. Maestas declined to answer whether any of the corporate sponsors were giving attorneys general tickets to Olympic games. Oregon Attorney General Ellen Rosenblum, a Democrat, said she would be attending an Olympic soccer game in addition to the Normandy events and that the tickets, and a few days of a vacation in France with her husband, would be at her expense. Other AGs said they would not attend the games or ignored queries from The Associated Press. Attorneys general are the chief government lawyers in their states. All of them have roles in consumer protection and many in law enforcement. They are elected in 43 states and appointed in the other seven. A big shift in the job began in the 1990s when the states banded together to sue the tobacco industry over dangers caused by smoking. The deal opened the door for other huge multistate lawsuits and settlements over opioids, failing car airbags and other consumer protection issues. That use of the office — ensuring corporate accountability — gave rise to other developments. Now, some major law firms have departments specializing in representing companies that come under the scrutiny of AGs. Those departments, which frequently employ former AGs or their deputies, have all the motivation to lobby people in the job — as do the companies they represent. The AGA was originally known as the Conference of Western Attorneys General. It expanded its core topics from largely regional concerns such as water resources and challenges facing Native American communities to a broader range of issues and in 2019 created the nationwide group. The group’s tax filings show it both brought in and spent about $10 million from July 2022 through June 2023. More than $6 million in expenses were on travel, conferences and meetings and events. Much of the organization’s revenue has come in the form of sponsorships. While the tax filings do not list the donors, an AGA brochure from 2023, provided by a lawyer specializing in AG practice who requested anonymity because of fear of professional retribution, shows how it works: Corporate sponsors could send more people to AGA events by contributing more money. For instance, $20,000 contributors could have three seats at events during the year. Those who gave $150,000 could have 30. More than 200 companies were listed as sponsors at various levels. The AGA did not respond to questions about the brochure. “With the AGA, you have these regulated industries outright giving money to the organization,” said Paul Nolette, a Marquette University political scientist who studies AGs. Brian Frosh, a Democrat who served as Maryland’s attorney general from 2015 until last year, said he recalled attending just one or two of the group’s dinners early in his time in office but did not attend any of the larger events, which have included international trips to China, Morocco, Ireland and elsewhere. “The dinners that I went to, you would sit next to a lobbyist for a different interest,” Frosh said. “And then you’d get up and move to another table. I didn’t find that to be enjoyable or educational.” A 2021 version of the AGA publication shows two companies contributed at least $500,000 that year: Amazon and Pfizer. Both have come under scrutiny from AGs. Last year, 17 attorneys general joined with the Federal Trade Commission to sue Amazon, claiming the online retailer inflated prices and overcharged sellers. Drugmaker Pfizer has faced legal action from AGs on multiple fronts. Texas AG Ken Paxton sued last year, claiming the company misrepresented the effectiveness of its COVID-19 vaccines and tried to censor public discourse about it. Pfizer also has been a target of multiple AG lawsuits over drug prices. Colin Provost, an associate professor of public policy at University College London who studies U.S. state AGs, said events where they mingle with lobbyists don’t necessarily help companies get the outcomes they hope for. “The optics are often not good,” he said. “In terms of actually proving that this has sort of a corrupting influence, that’s harder to do.” ___ Associated Press reporters from around the U.S. contributed to this article. ___ This article has been updated to correct that the National Association of Attorneys General and the Attorney General Alliance are different groups and that Christopher Toth was the executive director of NAAG, not AGA.
Justice Department sues TikTok over alleged children's online privacy law violations 2024-08-03 00:44:00+00:00 - Washington — The Justice Department filed a federal lawsuit against TikTok and its parent company ByteDance on Friday, alleging that the social media platform broke the law by collecting data on its young users. In the suit filed in the U.S. District Court for the Central District of California, the Justice Department alleged TikTok violated the Children's Online Privacy Protection Act, as well as a 2019 agreement between TikTok and the Federal Trade Commission over its practices toward children. The lawsuit, which stems from an FTC investigation, alleges that TikTok knowingly permitted children to create accounts and interact with adults on the platform since 2019. The company collected and retained personal information from the children without notifying or obtaining consent from their parents, the suit said. "For years, defendants have knowingly allowed children under 13 to create and use TikTok accounts without their parents' knowledge or consent, have collected extensive data from those children, and have failed to comply with parents' requests to delete their children's accounts and personal information," the 31-page civil lawsuit said. It added that TikTok "adopted and implemented inadequate and ineffective policies to stop children from creating general TikTok accounts and to remove those accounts when they were discovered." TikTok offers a "Kids Mode" for users who say they're under 13. The version limits their interactions on the platform, including restricting messages with other users and the ability to create and upload videos. But the company does not notify parents or obtain consent for the restricted accounts, the suit said. The platform also allows users to easily bypass the age restrictions when creating their accounts, the Justice Department alleged. TikTok is also collecting information on children with restricted accounts, including "app activity data, device information, mobile carrier information, and app information — which they combine with persistent identifiers and use to amass profiles on children," according the department. TikTok moderators spent only spent an average of five to seven seconds reviewing whether profiles belonged to a child, the filing added. "As a result, for years millions of American children under 13 have been using TikTok and defendants have been collecting and retaining children's personal information," the suit said. The department alleged TikTok shared information it collected from the restricted accounts with third parties and failed to notify parents. The government asked the court for a permanent injunction against future violations of the child privacy law, civil penalties for past violations and "any additional relief as the Court determines to be just and proper." In a statement, a TikTok spokesperson said the platform offers "age-appropriate experiences with stringent safeguards" and it "proactively" removes users it suspects to be underage. "We disagree with these allegations, many of which relate to past events and practices that are factually inaccurate or have been addressed," TikTok said in a statement. The lawsuit is the latest escalation between the U.S. government and TikTok, which has more than 170 million users in the U.S. Earlier this year, President Biden signed a bipartisan bill into law that forces TikTok's China-based parent company, ByteDance, to sell its stake in TikTok or face a ban in the U.S. TikTok has challenged that law in federal court.
Employers added 114,000 jobs in July, far fewer than expected, while unemployment jumps 2024-08-03 00:42:00+00:00 - Hiring abruptly slowed in July as employers added 114,000 jobs, far fewer than economists had expected, while the unemployment rate jumped to 4.3%. The substantial miss all but guarantees the Federal Reserve will cut its benchmark rate at its September meeting, experts said. Economists surveyed by FactSet had expected 175,000 new jobs and forecast that unemployment would remain steady at 4.1%. In June, employers hired 179,000 people, according to the Labor Department's Bureau of Labor Statistics data. While job growth had been slowing prior to July, it had remained relatively strong despite the Fed pushing its federal funds rate to its highest point in 23 years. Still, last month's disappointing figures raise concerns the U.S. could be facing a sharper economic slowdown due to elevated borrowing costs, prompting some economists to now anticipate a more substantial rate cut in September. "This should lock in not only a September rate cut, but perhaps a deeper cut in September and accelerate the schedule of cuts this year and next," said Robert Frick, corporate economist with Navy Federal Credit Union, in a Friday email. The Fed could cut rates by 0.5 percentage points in September, or double the 0.25 percentage point cut expected prior to Friday's jobs report, according to Lara Castleton, U.S. head of portfolio construction and strategy at Janus Henderson Investors. "The soft landing narrative is now shifting to worries about a hard landing," Castleton wrote in an email. On Wednesday, the Fed left its benchmark interest rate unchanged, as expected, but Chair Jerome Powell signaled the central bank could begin cutting borrowing costs in September so long as inflation continues to abate. Job growth has slowed in the last several months, which Powell described as healthy, yet he added officials were closely monitoring the labor market for signs of weakness. Stocks tumbled on Friday, continuing a downturn that began on Thursday, sparked by a larger-than-expected jump in weekly jobless claims that raised concerns about future growth. The Dow Jones Industrial Average dipped 1.2%, while the S&P 500 shed 1.5% and the tech-heavy Nasdaq lost 2.3%. "This was a 'bad news is bad news' report for the market and will continue the growth scare that has been roiling equities lately," Castleton said. Jump in unemployment At 4.3%, the unemployment rate now stands at its highest point since late 2021, although the figure remains a historically low. July's jump in unemployment is due to more workers entering the labor force than exiting it, with the labor force participation rate for people between 25 to 54 rising to its highest level since 2001, noted Josh Jamner, investment strategy analyst at ClearBridge Investments. A jump in the labor force can boost the jobless rate if not all those workers find jobs. "There was some good news from the employer survey, as the labor force — the number of adults working or looking for work — rose by a strong 420,000 in July, the biggest increase since March," noted PNC chief economist Gus Faucher, in a Friday email. Average hourly earnings were up 3.6% in July from a year ago, staying just ahead of the current pace of inflation yet the smallest increase since May 2021.