Category Archives: Business

The 2022 Toyota Tundra TRD Pro’s Payload Can’t Beat The Ranger

Photo: Toyota

The new Toyota Tundra is a big truck, no doubt about it. Well, it is a full-size pickup, which means that most drivers would expect correspondingly big numbers on its spec sheet, but the ’22 Tundra is beat by some smaller trucks in important specs, such as payload. Any single Ranger that Ford currently makes has a max payload higher than Toyota’s gnarliest new Tundra, the TRD Pro.

The TRD Pro has a max payload of 1,455 pounds, as Expedition Portal noted. The Ranger, on the other hand, will support from 1,478 pounds up to 1,905 pounds, depending on the trim. Notice that the term carmakers usually steer you towards is “up to.”

Photo: Ford

The new Tundra’s payload rating is up to 1,940 pounds, but the TRD Pro will carry much less. Funny how the “up to” phrase doesn’t apply to price, though. When discussing price, the clause is almost always “starting at.” Toyota is not the only company that does this; all carmakers do this. Phrases like “up to” and “starting at” are common practice.

But it’s a practice that, in this case, can make the Tundra’s specs confusing to those who aren’t familiar with pickups. There’s a difference between trucks that can tow and haul, and those that are considered performance trucks. The Tundra TRD Pro is very much in the performance camp.

Photo: Toyota

The TRD Pro is powered exclusively by a hybrid drivetrain in the new generation model, which means the latest off-road Tundra in the lineup has to account for an electric motor and a battery. In that sense, it’s one of the few production models in the world that’s an off-road specific hybrid pickup.

If you take a look at the specs something like the Ford Raptor, you’ll see that it has an even lower payload spec of (a measly) 1,400 pounds. Clearly, there’s an inverse relationship here between off-road and and payload capabilities. But the problem with the ’22 Tundra and current Ranger is that even the Tundra’s max payload of 1,940 pounds isn’t far from the Ranger’s max of 1,905 pounds.

I’m unsure this is going to help the Tundra get out from under the shadow of the last generation’s criticisms, which mostly had to do with its towing and payload ratings being significantly lower than it rivals.

Really, though, what are you hauling that’s more than 1500 pounds anyway? 

Photo: Toyota

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Royal Dutch Shell Is Selling Its Permian Basin Oil Holdings to ConocoPhillips

HOUSTON — Royal Dutch Shell sold its oil and gas production in the Permian Basin, the biggest American oil field, to ConocoPhillips for $9.5 billion in cash on Monday.

The deal marks a turning point for Shell, which had put considerable effort into developing the 225,000-acre field since buying it from Chesapeake Energy nine years ago, expanding its production to about 200,000 barrels a day.

The sale is the latest sign that Shell, like other European oil companies, is under pressure to sell off oil and gas production and move toward producing cleaner energy in response to growing concerns about climate change among investors and the general public.

Shell is retreating from the Permian as American shale oil production is recovering. The field yielded 4.7 million barrels a day in August — more than 40 percent of total American oil output and a nearly 400,000-barrel-a-day increase from January. Rising oil prices have enticed crews to return to the fields, where they use hydraulic fracturing — commonly known as fracking — to blast open shale rocks and force oil out of the ground.

A wave of acquisitions in the Permian began last year with the onset of the coronavirus pandemic as companies sought to cut costs. The scale of the Shell deal is similar to Conoco’s acquisition of Concho Resources for $9.7 billion in October, a deal that made Conoco a major player in the Permian, which straddles Texas and New Mexico. In April, Pioneer Natural Resources bought DoublePoint Energy for $6.4 billion.

With the acquisition of Shell’s acreage, Conoco consolidates its position as a top-tier Permian producer along with Pioneer, Occidental Petroleum, Exxon Mobil and Chevron.

Shell’s sale of its West Texas Permian holdings, which provided an estimated 6 percent of the company’s global oil and gas production last year, had been expected for months. Shell recently sold its stakes in offshore oil and gas fields in Malaysia and the Philippines. Its American operations include offshore production in the Gulf of Mexico along with refineries.

Shell has been talking about cutting emissions since 2017, and it has accelerated its shift to cleaner fuels over the last two years, although not enough to satisfy many environmentalists. In addition to a goal of net-zero emissions by 2050, it has set a target of reducing oil output up to 2 percent a year by 2030 through divestments and lower investments in exploration and production.

“We are very excited to enhance our position in one of the best basins in the world,” said Ryan M. Lance, Conoco’s chief executive. He hailed the deal as “a unique opportunity to add premium assets.”

Shell said it viewed the deal as “a compelling value proposition.”

“This decision once again reflects our focus on value over volumes,” Wael Sawan, Shell’s upstream director, said in announcing the deal. He said Shell had reviewed multiple strategies and options for the Permian acreage.

Shell said cash proceeds from the transaction would fund $7 billion in distributions to shareholders as well as efforts toward “the energy transition.”

Shell plans to increase its investments in renewable energy and low-carbon technologies to roughly 25 percent of its budget by 2025.

At least some of the money from asset sales goes into Shell’s power businesses, including electric vehicle plug-in points, battery businesses and utilities. This week, Shell announced plans to build a biofuels facility in the Netherlands to use waste from used cooking oil and animal fat to make cleaner diesel and aviation fuel.

At least some of the impetus for Shell’s shedding of hydrocarbon assets came from a decision by a Dutch court in May ordering the company to cut greenhouse-gas emissions 45 percent by 2030 compared with 2019 levels, before the pandemic slashed oil and gas demand. Shell is appealing the ruling.

When Shell or other oil companies sell a field or petrochemical plant, the transaction does not automatically mean that global emissions will be reduced since other companies routinely pick up the production.

In a recent article on LinkedIn, Shell’s chief executive, Ben van Beurden, wrote that if Shell stopped selling transportation fuels “it would not help the world one bit” because “people would fill up their cars and delivery trucks at other service stations.”

Shell, like the entire oil and gas industry, has suffered through a rocky time of late. The pandemic forced the company to cut its dividend last year. But with oil and natural gas prices recovering, the company has returned to robust profitability, reporting earnings of $5.5 billion in the second quarter, up from $638 million a year earlier

Stanley Reed contributed reporting.

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China Evergrande crisis rocks markets from Hong Kong to U.S.

HONG KONG/NEW YORK — A wave of fear over Chinese economic growth swept through global markets on Monday as China Evergrande, the country’s most indebted property developer, teetered on the brink of default and investors worried about the consequences for its domestic peers and international commodity prices.

While Chinese and Hong Kong property groups bore the brunt of the sell-off, the impact was felt across European and U.S. stock markets. China Evergrande, whose liabilities amount to almost a third of a trillion dollars, is facing deadlines this week for payments to banks and bondholders.

In the U.S., the Dow Jones Industrial Average finished down 614 points, or 1.8% to close its worst day of trading since July. Caterpillar and Goldman Sachs were the benchmark’s biggest losers on a day when investors were also watching the outlook for the Federal Reserve’s cutbacks to monetary easing. The Dow fell 972 points at its low point before paring its losses toward the end of the session. 

The repercussions from Evergrande’s prospective collapse will likely contribute to China’s ongoing economic deceleration, which in turn anchors global growth and inflation, and casts a pall over commodity prices,” said Phoenix Kalen, a strategist at Societe Generale in London.

The Nasdaq closed down 2.2% and the top three decliners were all Chinese companies: Pinduoduo, Baidu, and JD.com. The S&P 500 finished down 1.7%. It was both indexes’ worst day of trading since May. 


Security personnel barricade Evergrande’s offices in Shenzhen, China. Authorities are keen to prevent the group’s troubles from causing wider economic ripples.

  © Reuters

The Global X MSCI China Real Estate ETF, an exchange-traded fund focused on the Chinese property sector, closed down 5.4% for the day. 

In Europe, London’s FTSE 100 slipped almost 1% with miners leading the retreat on concerns a China slowdown will further erode commodity prices. The Euro Stoxx 600 index fell nearly 1.7%.

Iron ore prices fell below $100 a ton for the first time in over a year, as China’s imposition of more steel production curbs combined with investor concerns that a real estate construction slowdown will cut demand for the metal. Copper declined 2%, as did oil. American steelmaker Nucor had the second-worst performance on the S&P, closing down 7.6%

Global economic growth is closely entwined with the fortunes of China, which was the only major economy to expand last year. In April, the International Monetary Fund projected China would contribute over a fifth of the increase in the world’s gross domestic product in the five years to 2026.

While the Chinese economy recovered swiftly from the pandemic-induced slowdown, signs have emerged of growth losing steam, particularly in the housing market where activity slumped sharply in July and weakened further in August.

Evergrande shares slumped a further 10.2% Monday in Hong Kong, taking losses for the year to 84%. The Hang Seng Property Index tumbled 6.7% to its lowest level since 2016 and the broader Hang Seng Index ended down 3.3%. Chinese markets are closed till Wednesday for holidays, but the FTSE China A50 index futures traded in Singapore declined over 3%

Evergrande has begun offering suppliers and retail debt investors apartments, parking lots and commercial space in lieu of missed payments. It faces a series of bond coupon payments starting Thursday, and if it does not make the payments within a month it will be termed a defaulter.

“Our baseline remains that any potential default or restructuring of Evergrande would be carefully managed by the government with limited contagion effect in both financial and property markets,” said Goldman Sachs economists led by Hui Shan. “This would require a clear message from the government soon to shore up confidence and to stop the spillover effect, the absence of which we think poses notable downside risk to growth in Q4 and next year.”

However, the economists warned if a default occurred without clear “ring-fencing” of the spillovers to other parts of the economy, then the outcomes would be harsher, perhaps as much as a 4.1% hit to GDP as housing activity collapses and financial conditions tighten.

S&P Global Ratings also said it did not expect “a large systemic event if Evergrande defaults.” But in a note to clients, it said the situation could worsen if a disorderly bankruptcy of the group coincided with a deeper market downturn in the sector. “This would set off a vicious cycle. We believe that the sector itself is already seeing some weakness in sales and pricing since August and could slip further.”

Shares in Sinic Holdings, a Shanghai property developer, crashed 87% before trading was halted. Investors fear the company may struggle to refinance a $246 million bond it must repay on Oct. 18, now that investors have soured on the sector. Fitch Ratings last week cut its outlook on the company to negative.

Large Hong Kong developers also felt the negative impact. Sun Hung Kai Properties sank 10%, its largest decline since 2012, and Henderson Land tumbled 13%, with investors also spooked by a Reuters report last week that Beijing has warned the territory’s property tycoons it will no longer tolerate “monopoly behavior.”

China’s biggest insurer Ping An fell as much as 8.4%. The company said on Friday it had no exposure to Evergrande and that its insurance investment fund had equity investments worth 63.1 billion yuan ($9.8 billion) linked to real estate developers, which it said were largely financially sound.



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Evergrande crisis: 5 things to know about the Chinese business empire on the brink

Evergrande did not immediately respond to a request from CNN Business for comment about those payments.

And interest payments totaling more than $100 million are due later this week on two of the company’s bonds, according to data provider Refinitiv.

Here’s what you need to know about Evergrande, and how it got to where it is now.

What is Evergrande?

Evergrande is one of China’s largest real estate developers. The company is part of the Global 500 — meaning that it’s also one of the world’s biggest businesses by revenue.
Listed in Hong Kong and based in the southern Chinese city of Shenzhen, it employs about 200,000 people. It also indirectly helps sustain more than 3.8 million jobs each year.
The group was founded by Chinese billionaire Xu Jiayin, also known as Hui Ka Yan in Cantonese, who was once the country’s richest man.
Evergrande made its name in residential property — it boasts that it “owns more than 1,300 projects in more than 280 cities” across China — but its interests extend far beyond that.

Outside housing, the group has invested in electric vehicles, sports and theme parks. It even owns a food and beverage business, selling bottled water, groceries, dairy products and other goods across China.

In 2010, the company bought a soccer team, which is now known as Guangzhou Evergrande. That team has since built what is believed to be the world’s biggest soccer school, at a cost of $185 million to Evergrande.
Guangzhou Evergrande continues to reach for new records: It’s currently working on creating the world’s biggest soccer stadium, assuming that construction is completed next year as expected. The $1.7 billion site is shaped as a giant lotus flower, and will eventually be able to seat 100,000 spectators.
Evergrande also caters to tourists through its theme park division, Evergrande Fairyland. Its claim to fame is a massive undertaking called Ocean Flower Island in Hainan, the tropical province in China commonly referred to as the “Chinese Hawaii.”
The project includes an artificial island with malls, museums and amusement parks. According to the group’s most recent annual report, it started taking customers on a trial basis earlier this year, with plans for a full opening “at the end of 2021.”

How did it run into trouble?

In recent years, Evergrande’s debts ballooned as it borrowed to finance its various pursuits.

The group has gained infamy for becoming China’s most indebted developer, with more than $300 billion worth of liabilities. Over the last few weeks, it’s warned investors of cash flow issues, saying that it could default if it’s unable to raise money quickly.

That warning was underscored last week, when Evergrande disclosed in a stock exchange filing that it was having trouble finding buyers for some of its assets.

In some ways, the company’s aggressive ambitions are what landed it in hot water, according to experts. The group “strayed far from its core business, which is part of how it got into this mess,” said Mattie Bekink, China director of the Economist Intelligence Unit.

Goldman Sachs analysts say the company’s structure has also made it “difficult to ascertain a more precise picture of [its] recovery.” In a recent note, they pointed to “the complexity of Evergrande Group, and the lack of sufficient information on the company’s assets and liabilities.”

But the group’s struggles are also emblematic of underlying risks in China.

“The story of Evergrande is the story of the deep [and] structural challenges to China’s economy related to debt,” said Bekink.

The issue isn’t entirely new. Last year, a slew of Chinese state-owned companies defaulted on their loans, raising fears about China’s reliance on debt-fueled investments to support growth.
And in 2018, billionaire Wang Jianlin was forced to downsize his conglomerate, Dalian Wanda, as Beijing clamped down on firms borrowing heavily to push overseas.

In a note last week, Mark Williams, Capital Economics’ chief Asia economist, said that Evergrande’s collapse “would be the biggest test that China’s financial system has faced in years.”

“The root of Evergrande’s troubles — and those of other highly-leveraged developers — is that residential property demand in China is entering an era of sustained decline,” he wrote. “Evergrande’s ongoing collapse has focused attention on the impact a wave of property developer defaults would have on China’s growth.”

How is it trying to move forward?

On September 14, Evergrande announced that it had brought on financial advisers to help assess the situation.

While those firms are tasked with exploring “all feasible solutions” as quickly as possible, Evergrande has cautioned that nothing is guaranteed.

So far, the conglomerate has struggled to stem the bleeding, and has failed to find buyers for parts of its electric vehicle and property services businesses.

As of that filing, it had made “no material progress” in its search for investors, and “it is uncertain as to whether the group will be able to consummate any such sale,” it said.

The company has also been trying to sell off its office tower in Hong Kong, which it bought for about $1.6 billion in 2015. But that has “not been completed within the expected timetable,” it said.

How are investors reacting?

Evergrande’s problems spilled onto the streets last week when protests reportedly broke out at its headquarters in Shenzhen. Footage from Reuters showed scores of demonstrators at the site on Monday, accosting someone identified to be a company representative.

But shareholders have been wary for months: The stock has shed more than 80% of its value this year.

Earlier this month, Fitch and Moody’s Investors Services both downgraded Evergrande’s credit ratings, citing its liquidity issues. “We view a default of some kind as probable,” Fitch wrote in a recent note.

The situation also appears to be spooking investors in China more broadly, at a time when they’re already reeling from Beijing’s crackdown on private sector companies, particularly in the tech sector. The Hang Seng Index (HSI) on Monday dropped 3.3%, suffering its worst decline in nearly two months, as Chinese banks, insurers and other real estate companies were slammed.

“In our opinion, how Evergrande credit stresses will be resolved will drive market sentiment,” Goldman Sachs analysts wrote recently, referring to the credit market and the broader economy. They added that the Chinese bond market could be hit and a loss of confidence could “spill over to the broader property sector.”

Wall Street appears to be more sanguine about the risks of contagion overseas.

“I don’t think the Evergrande meltdown, and the financial problems of Chinese property companies more broadly, will reverberate back on the US economy or markets,” Mark Zandi, chief economist at Moody’s Analytics, told CNN Business last week.

What could happen next?

Analysts expect the Chinese government to intervene to limit the fallout if Evergrande were to default. And authorities are clearly watching closely, while attempting to project calm.

Last week, Fu Linghui, a spokesperson for China’s National Bureau of Statistics, acknowledged the difficulties of “some large real estate companies,” according to state media.

Without naming Evergrande directly, Fu said that China’s real estate market had remained stable this year but the impact of recent events “on the development of the whole industry needs to be observed.”

Williams, of Capital Economics, predicts that the country’s central bank “would step in with liquidity support” if fears of a major default intensified.

Authorities are said to be taking action. Last Tuesday, Bloomberg cited anonymous sources as saying that regulators had enlisted international law firm King & Wood Mallesons, among other advisers, to examine the conglomerate’s finances. King & Wood Mallesons declined to comment.

According to the report, officials in Evergrande’s home province of Guangdong have already rejected a bailout request from its founder. Guangdong authorities and Evergrande did not respond to a request for comment.

But some suggest it may already be too late to save the company.

Evergrande’s financial problems have been widely dubbed by Chinese media as “a huge black hole,” implying that no amount of money can resolve the issue.

“We do ultimately expect that the government will intervene in Evergrande’s case, as it will not allow the company’s defaults to spread into the banking system,” said Bekink.

“The impacts from a large default by Evergrande would be remarkable.”

— Kristie Lu Stout, Julia Horowitz, Laura He and CNN’s Beijing bureau contributed to this report.

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Amazon Drivers Are Punished When Other People Cut Them Off: Report

  • Amazon’s AI cameras penalize drivers for using side mirrors and being cut off, Motherboard reports.
  • Penalties like these hurt workers’ and DSPs’ performance scores and their chances to get more money.
  • Drivers also told Motherboard that it’s really difficult to appeal erroneous infractions.

Amazon drivers are being punished for some driving habits that are considered safe and others that are beyond their control, Motherboard reported. 

Drivers told Motherboard that the AI-powered cameras in Amazon’s delivery vans unfairly punished them for things such as looking at side mirrors, adjusting the radio, and even getting cut off in traffic by someone else. 

“It’s upsetting, when I didn’t do anything,” a Los Angeles delivery driver told Motherboard. “Every time I need to make a right-hand turn, it inevitably happens. A car cuts me off to move into my lane, and the camera, in this really dystopian dark, robotic voice, shouts at me.”

Whenever the Netradyne cameras pick up on possible unsafe driving “events,” these instances factor into workers’ performance scores and can, in turn, hurt their chances of getting bonuses, extra pay, and prizes. They can also affect the income of the Amazon delivery service partner itself. 

These events help decide whether Amazon drivers are given ratings of “poor,” “fair,” “good,” or “fantastic.” DSPs can get bonuses to put toward repairs, damages, and other things only if their drivers’ combined weekly scores land in “fantastic” territory.

“Amazon uses these cameras allegedly to make sure they have a safer driving workforce, but they’re actually using them not to pay delivery companies,” one owner of a Washington DSP told Motherboard. 

“One of the safety improvements we’ve made this year is rolling out industry-leading telematics and camera-based safety technology across our delivery fleet,” Amazon said in a statement to Insider. “This technology provides drivers real-time alerts to help them stay safe when they are on the road.”

The company added that it has seen the following changes since installing the cameras in more than half of its US fleet: accidents decreased 48%, stop-sign and signal violations decreased 77%, following distance decreased 50%, driving without a seat belt decreased 60%, and distracted driving decreased 75%.

The Washington DSP owner told Motherboard that he wasn’t trained on using the cameras. Amazon told Insider that each delivery company received training about the cameras and was required to let its workers know how events affected the DSP’s scores.

Some Amazon drivers have resorted to covering up their vans’ cameras with stickers to avoid getting unnecessary infractions, Motherboard reported. 

“If we brought up problems with the cameras, managers would brush it under the table, they’re only worried about getting the packages out,” a Kentucky delivery driver told Motherboard. “So we cover them up. They don’t tell us to, but it’s kind of like ‘don’t ask, don’t tell.'” 

Other workers wore sunglasses so the cameras wouldn’t interpret eye movement as distracted driving.

“The Netradyne cameras that Amazon installed in our vans have been nothing but a nightmare,” a former Amazon driver in Alabama told Motherboard. “I personally did not feel any more safe with a camera watching my every move.”

Drivers also told Motherboard that it’s difficult to appeal wrongly flagged events with Amazon, and that their attempts to do so were often dismissed.

Amazon told Insider that appeals were manually reviewed, and that erroneous events didn’t affect DSPs or drivers. 

Amazon said in February that it would install the cameras in its delivery vans to improve safety. The move raised concerns about privacy and surveillance. The following month, an Amazon driver quit over the new camera installation, telling the Thomson Reuters Foundation, “It was both a privacy violation and a breach of trust.” The system, called Driveri, includes a front-facing camera, two side-facing ones, and another that faces the driver.

Netradyne did not immediately respond to a request for comment.

If you’re an Amazon delivery driver or warehouse worker with a story to share, you can get in touch with this reporter at sjackson@insider.com.

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American Airlines, Nucor, Goldman Sachs and more

Bundles of steel from Nucor Corp. sit for sale to at Thompson Building Materials in Lomita, California, U.S., on Thursday, Aug. 30, 2012.

Patrick Fallon | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.

American Airlines, United Airlines, Delta Air Lines — Shares of American Airlines the major airlines rose over 1% Monday after the White House said it would ease travel restrictions for international travelers who are vaccinated against Covid-19. Shares of Delta and United gained earlier but ticked down nearly 0.2% each.

China Evergrande Group — Shares of the embattled Chinese property giant dropped 10% on the Hong Kong Stock Exchange. The company has been scrambling to pay its suppliers, and warned investors that it could default on its debts. Last week, the company said its property sales will likely continue to drop significantly in September several months of weakness.

Centerpoint Energy, Dominion Energy — Utility stocks rose on Monday as investors shifted toward defensive plays during the broader market slide. Shares of Centerpoint and Dominion rose roughly 1% each.

Nucor, Freeport-McMoRan, Ford, Caterpillar — Stocks linked to global growth declined Monday. Steel stock Nucor declined 8.4%, miner Freeport-McMoRan fell 6.6%, auto maker Ford dropped 6% and construction equipment manufacturer Caterpillar retreated 4.8%.

APA, Devon Energy — Energy stocks tumbled amid a drop in oil pries on concerns about the global economy. The S&P 500 energy sector fell 3.3%, becoming the worst-performing group among the 11 groups during Monday’s market sell-off. APA and Devon Energy both shed more than 6%. Occidental Petroleum dropped 6% and Hess slid over 5%.

Goldman Sachs, Bank of America, JPMorgan Chase — Financials stocks declined as the U.S. 10-year Treasury yield dropped, with falling rates typically crimping bank profits. Goldman Sachs, Bank of America and Citigroup all shed more than 4%. JPMorgan Chase and Morgan Stanley both declined more than 3%.

ARK Innovation, Coinbase, Tesla, Zoom, Square — Shares of Cathie Wood’s flagship fund dropped more than 4% as innovation names experienced harsh selling. Top holdings Coinbase and Teladoc both lost more than 5%. Unity Software shed over 5%, and Tesla dropped more than 3%. Square and Zoom Video dropped more than 3% each.

Pfizer — The drug maker stock ticked 0.3% higher after the company said its Covid vaccine is safe and appears to generate a robust immune response in kids ages 5 to 11. If the FDA spends as much time reviewing the data for that age group as it did for 12- to 15-year-olds, the shots could be available in time for Halloween.

AstraZeneca — Shares of the United Kingdom-based pharmaceutical company popped more than 4% in midday trading after announcing that its breast cancer drug Enhertu showed positive results in a phase-three trial.

Invesco — Invesco shares declined 9% Monday. The stock ran up on Friday following a Wall Street Journal report that the asset manager is in talks to merge with State Street’s asset management unit. The report, citing people familiar with the matter, said a deal is not imminent and might not happen at all.

— CNBC’s Maggie Fitzgerald, Yun Li and Jesse Pound contributed reporting

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El Salvador Buys More Bitcoin — Country Now Holds 700 BTC – Featured Bitcoin News

El Salvador, the country that made bitcoin legal tender alongside the U.S. dollar, has purchased more bitcoin. The Salvadoran government now holds 700 coins, according to President Nayib Bukele.

El Salvador Buys the Dip

El Salvador’s president, Nayib Bukele, announced early Monday morning that his government has purchased 150 more bitcoins. The country’s bitcoin law went into effect on Sept. 7 making the cryptocurrency legal tender alongside the U.S. dollar. He tweeted: “We just bought the dip. 150 new coins! El Salvador now holds 700 coins.”

“They can never beat you if you buy the dips … Presidential advice,” he further wrote.

The price of bitcoin was hovering around $45K when he made the announcement. It has since dropped to $43,326 at the time of writing based on data from Bitcoin.com Markets.

El Salvador started buying bitcoin on Sept. 6 ahead of the bitcoin law taking effect. On Sept. 7, Bukele announced that his country had bought a total of 550 bitcoins.

According to cryptocurrency ATM tracking website Coinatmradar.com, El Salvador now has 205 crypto ATM locations, making it the country with the third-highest number of crypto ATMs, behind only the U.S. and Canada. However, there are reports that the Salvadoran Court of Accounts is planning to investigate the government’s bitcoin ATM purchases and Chivo kiosk construction.

The launch of the government’s bitcoin wallet, the Chivo wallet, was off to a rocky start. However, on Sept. 16, Bukele claimed that the Chivo app is “already working 100%” According to reports, remittance providers like Moneygram and Western Union could lose up to $400 million annually if the Chivo wallet is used more.

On Friday, Bukele tweeted that 1.1 million Salvadorans already use the Chivo wallet, adding that “we haven’t enabled 65% of phone models yet.” He opined:

It seems that we will be able to bank more people in 1 month than they did with nationalizations and privatizations of traditional banks in 40 years.

What do you think about El Salvador buying more bitcoin? Let us know in the comments section below.

Tags in this story
Bitcoin ATM, Buy Bitcoin, buy bitcoins, buy btc, buy cryptocurrency, chivo wallet, Crypto ATM, El Salvador, el salvador bitcoin, el salvador cryptocurrency, Nayib Bukele

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



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Global Supply Shortages Reach All the Way to a Haitian Aid Group

In the face of bewildering and enduring shortages of goods throughout the global economy, even aid organizations like food banks and clothing distributors are caught in the chaos. Many are struggling to secure what they need, amplifying scarcity in vulnerable communities.

In Haiti, one of the world’s poorest countries, an effort to increase household incomes is confronting a new problem stemming from the global supply chain upheaval — a shortage of shoes.

The Haitian American Caucus, a nonprofit organization, imports donated, used shoes from the United States and sells them at low-cost to women who hawk them on sidewalks and in markets, earning crucial cash for their families.

The caucus is distributing almost 100,000 pairs of shoes a month, but it could manage four times as many if only more inventory arrived, said its executive director, Samuel Darguin.

“That pair of shoes represents so much more,” he said. “It represents a mother being able to send a kid to school, being able to afford health care and feed her family maybe two meals a day instead of one.”

Two years into a relentless pandemic, the world economy remains awash in logistical difficulties. Factories in Asia are struggling to satisfy demand for their products. Ports are short of shipping containers and healthy hands to unload them. Trucks are idled for lack of drivers, with warehouses overwhelmed by goods.

That upheaval may seem far removed from Haiti, but it helps explain why Mr. Darguin’s program is waiting for more shoes

Already this year, Haiti has suffered a calamitous earthquake and a presidential assassination, to say nothing of a lethal pandemic combined with the strains of everyday life in a country where people can take little for granted. The Great Supply Chain Disruption is now adding to the strain.

Mr. Darguin’s supplier of shoes, a nonprofit based in Nashville called Soles4Souls, is itself suffering shortages of footwear as manufacturers that donate inventory keep more of it in a frantic bid to satisfy retail customers.

The upending of the global supply chain continues to be a grave problem for multinational brands that sell wares to customers, and shoppers who cannot secure what they want — whether it be lumber, new cars or exercise bikes. But product shortages and shipping impediments have proved so persistent and pervasive that they are also afflicting organizations that rely on donated goods. Their troubles underscore how the supply chain disorder is rippling out across vast distances, reaching a pipeline of aid that is ordinarily invisible to the wider world.

Enormous retailers like Target, Nike and Home Depot — all of which have acknowledged problems stocking shelves — can afford to stockpile goods. And they can pay extra to ensure that their products gain passage on overbooked cargo ships, even as fares on routes from China to the West Coast of the United States have increased tenfold over the course of the pandemic.

But nonprofit organizations lack such means. They are like economy-class passengers stuck at an airport after a blizzard, watching the first-class customers grab all the available seats out.

In Jacksonville, Fla., Teri Ketchum, chief executive of Presbyterian Social Ministries, collects donated children’s clothing and distributes it to community agencies in her region and as far away as the Philippines.

Last year, with people stuck at home in pandemic lockdowns, many emptied out basements and closets, creating a surge of donated clothing. This year, as schools have reopened, the demand for children’s clothing has exhausted Ms. Ketchum’s supply.

“At least once a week, some local partner calls to say, ‘Have you got any kids’ clothes,’ and we have to say, ‘No, we just don’t have it,’” she said.

The shortages are coinciding with the ending of many government relief programs for people whose livelihoods have been hurt by the pandemic — like emergency unemployment benefits and eviction moratoriums protecting those behind on their rent.

“If people were struggling before, they are just at rock bottom right now,” Ms. Ketchum said. “Now, it’s, ‘Do I buy food, or do I buy clothes?’ Clothes is the last thing that a parent who is already stretched is going to do.”

Second Harvest Food Bank of Middle Tennessee oversees a food distribution operation serving about 400,000 people in 46 counties, relying on donations from grocery stores in the area. Second Harvest also distributes purchased food at low cost to sister organizations across the country.

During the first waves of the pandemic, as families sequestered at home cooked more, demand for groceries soared, depleting the shelves of local supermarkets and resulting in fewer donations. That prompted Second Harvest to buy more groceries.

But given the shortage of supplies, the organization has had to widen its sights significantly, bringing in pasta and macaroni and cheese from Thailand and India.

In recent months, Second Harvest has shifted back to domestic suppliers, but it has still encountered delays on its orders as food processing companies are slowed by difficulties in importing ingredients.

Unable to find low-sodium green beans — a popular item — Second Harvest has instead distributed the ordinary variety, while counseling recipients who must watch their salt intake to rinse the beans before cooking. When can shortages made it impossible to buy spaghetti sauce, Second Harvest found a restaurant supplier who had extra volumes of bulk sauce packaged in plastic bags.

“We have a trailerload of pasta that has to go to Denver, and it’s two weeks late,” said Nancy Keil, the organization’s president and chief executive. “It’s like a moving target. You don’t know where you’re going to be short next.”

In Nashville, Soles4Souls — the organization that supplies Mr. Darguin’s program in Haiti — has been forced to scale back plans to distribute shoes to homeless children in schools across the United States.

Known as 4EveryKid, the program aimed to distribute 75,000 pairs of shoes to homeless students this year, but it has lowered the target to 50,000.

“Some kids actually don’t come to school if they don’t have a pair of shoes to wear, especially when the weather gets really bad,” said Cathy Klein, homeless coordinator for the Milwaukee Public Schools, which expects to receive 1,000 pairs of shoes this year via the 4EveryKid program.

Soles4Souls depends on contributions of new shoes from major footwear companies. As the companies have struggled to satisfy retail orders, they have sharply curtailed charitable contributions.

“Typically, we get product that’s excess,” said Rod Arnold, Soles4Souls’ chief marketing officer. “Everyone is just saying, ‘We are selling everything we can get our hands on.’”

Early this year, a shortage of shipping containers in Chinese ports slowed the loading of factory goods while increasing shipping costs. Then came the closing of the Suez Canal — a major corridor linking Asia to Europe. Since May, Chinese authorities have temporarily shut operations at two major container ports.

In recent weeks, Vietnam — a major manufacturer of footwear — has imposed a strict lockdown to choke off the spread of the coronavirus. That has stopped production while delaying the shipment of finished shoes.

“What we’re hearing from our partners and donors is, ‘We want to help you. We believe in what you do. There’s just not the product. We don’t have it,’” said Buddy Teaster, chief executive of Soles4Souls. “They have got other stuff that they are prioritizing.”

There’s also the soaring cost of trucking, which is impeding shipments of used shoes like those destined for Haiti.

Before the pandemic, moving a truckload of shoes from California to the Soles4Souls main warehouse in Alabama cost $2,500 and took perhaps four days, Mr. Teaster said. Now, it costs as much as $7,000 and can require two weeks.

The same dynamic on the ocean has sabotaged the workings of Soles4Souls’ partners around the globe.

The organization has often served as a matchmaker, brokering shipments of mislabeled batches of shoes and clothing from factories in Asia to thrift stores in Transnistria, a breakaway state in Moldova. The thrift stores provide careers to young people who grew up in orphanages.

But as the price of shipping a container from Vietnam to Ukraine has swelled fivefold, the thrift stores have had to sharply curtail their purchases.

“The nonprofit is quite literally at the end of the line in terms of what we can afford,” said Mike Shirey, Soles4Souls chief operating officer. “People aren’t bringing in the quantities of goods that they used to.”

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Nabisco Workers End Weekslong Strike After Reaching New Contract

The photos also indicated that the contract includes a $5,000 bonus, with the company doubling its 401(k) matching contributions from 25 percent to 50 percent for up to 6 percent of employees’ eligible pay starting in 2022.

Though the union’s previous contract expired months ago, the impasse began in earnest in August, when workers at a Nabisco bakery in Portland, Ore., went on strike. Their union contended that Mondelez had sought unreasonable contract concessions during a period of strong revenue gains for the company.

Workers in Colorado, Virginia, Illinois and Georgia followed suit, with more than 1,000 Nabisco employees taking part in the strike, the union estimated. The strike affected three bakeries and three small sales distribution facilities, according to Mondelez, which is based in Chicago.

As the strike wore on, tensions mounted over the contract dispute — and as Mondelez disclosed its profits. For the three months ending in June, the company reported a 12 percent gain in revenue compared with the previous year.

Last week in Portland, striking workers on a picket line blocked several vehicles trying to leave a Nabisco plant, leading to an altercation with security guards, the television station KATU reported.

During the contract negotiations, the union had pressed Mondelez to restore a pension plan for Nabisco employees, which it had replaced with a 401(k) program in 2018.

A key point of contention between the union and the company involved overtime: Mondelez wanted some Nabisco employees to work for shifts of up to 12 hours without being eligible for overtime pay, in exchange for working fewer days a week. Those on weekend shifts, previously eligible for extra pay, would get the premium only after working 40 hours in a week. Those weekend shifts will mostly be filled by newer employees under the terms of the agreement, according to the contract photos posted online.

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Pfizer, Occidental Petroleum, Bank of America and more

A syringe is filled with a dose of Pfizer’s coronavirus disease (COVID-19) vaccine at a pop-up community vaccination center at the Gateway World Christian Center in Valley Stream, New York, U.S., February 23, 2021.

Brendan McDermid | Reuters

Check out the companies making headlines before the bell:

China Evergrande Group — Chinese property giant Evergrande tumbled more than 10% on Hong Kong Stock Exchange, spooking Asian markets. The company has been scrambling to pay its suppliers, and warned investors twice in as many weeks that it could default on its debts. Last week Evergrande said its property sales will likely continue to drop significantly in September after declining for months.

Pfizer — The pharmaceutical giant said Monday that trials showed its Covid vaccine was safe and effective when used in children ages 5 to 11. Pfizer and partner BioNTech said they would submit the results for approval “as soon as possible.” Shares of Pfizer were down about 1% in premarket trading.

Laredo Petroleum, Occidental Petroleum — Oil and energy stocks dipped in premarket trading on Monday. The SPDR S&P Oil & Gas Exploration ETF is down more than 3% in early trading, on pace for its 3rd straight negative session. Laredo Petroleum is down more than 8%, Callon Petroleum is down roughly 6%, and Occidental Petroleum is down nearly 5%. The losses came as crude oil fell on fears of a global economic slowdown tied to the China property market.

Colgate-Palmolive — The consumer staples stock was upgraded to buy from hold by Deutsche Bank on Sunday. The investment firm said that Colgate’s difficulties with inflation and in some international markets was already priced in to its stock.

JPMorgan, Bank of America — Bank stocks slid in unison amid a decline in bond yields on slowdown fears. Investors flocked to Treasurys for safety as the stock market is set for its biggest sell-off in months. Big bank stocks took a hit as the falling rates may crimp profits. Bank of America and JPMorgan Chase were each down more than 2% in premarket trading. Citizens Financial Group dropped 3%, while Citigroup declined 2.5%.

AstraZeneca — The United Kingdom-based pharmaceutical company announced on Monday that its breast cancer drug Enhertu showed positive results in a phase-three trial. Shares of the company were up more than 1% in premarket trading.

ARK Innovation ETF — Cathie Wood’s ARK Innovation ETF is down 2.75% in the premarket, on pace to snap a 3-day winning streak. Compugen, DraftKings, Coinbase and Square are so of the ETF’s biggest losers this morning.

— with reporting from CNBC’s Jesse Pound and Yun Li.

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