Category Archives: Business

Gas prices are finally coming down, but how far?

Gas prices are displayed at an Exxon gas station on July 29, 2022 in Houston, Texas. (Photo by Brandon Bell/Getty Images)

Gas prices in the United States have fallen for the 50th consecutive day, the fastest rate in over a decade, according to the American Automobile Association. 

The national average gas price currently sits at $4.13 a gallon, with eight states seeing prices drop underneath $4 a gallon.

In June, gas prices had peaked at an eye-watering $5.02 a gallon.

Currently, the average price of a gallon of gas in New York is $4.48 and $4.35 in New Jersey. In Connecticut, the average price has fallen to $4.31.

The nation’s cheapest gas can be found in Texas, where a gallon of regular is currently $3.69 on aveage.

“Consumers appear to be taking the pressure off their wallets by fueling up less,” AAA spokesperson Andrew Gross said. “And there’s reason to be cautiously optimistic that pump prices will continue to fall, particularly if the global price for oil does not spike. But the overall situation remains very volatile.”

President Joe Biden tweeted earlier this week that the current drop of gas prices is the fastest the nation has seen in over a decade.

However, Biden’s critics didn’t miss an opportunity to point out that gas is still nearly $2 a gallon more expensive than it was when Biden took office.

That said, gas prices could continue to drop in the future.

“If gas demand remains low as stocks increase, alongside a continuing reduction in crude prices, drivers will likely continue to see pump prices decline,” AAA said. 

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Morgan Stanley on market bottom and tech stocks, Nasdaq

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Tesla shareholders broadly follow board recommendations at annual meeting

Aug 4 (Reuters) – Tesla Inc (TSLA.O) shareholders voted for board recommendations on most issues at the company’s annual meeting on Thursday, including re-electing directors, approving a stock split, while rejecting proposals focused on environment and governance.

Votes on three of the 13 proposals did not follow board recommendations, according to preliminary tallies presented at the annual shareholder meeting in Austin, Texas.

Over board opposition, shareholders passed an advisory proposal that would increase investors’ ability to nominate directors.

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Two board proposals – cutting directors’ terms to two years and eliminating supermajority requirements – did not receive supermajorities necessary to pass.

Dressed in black, Chief Executive Elon Musk heavily influenced the voting and spoke to an enthusiastic crowd after the vote. He owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year. read more

Investors approved a three-for-one stock split. While a split does not affect a company’s fundamentals, it could buoy the share price by making it easier for investors to own the stock.

Shareholder proposals that failed included ones arguing for endorsing the right of employees to form a union, asking the company to report its efforts in preventing racial discrimination and sexual harassment annually, as well as reporting on water risk.

A proposal asking directors to enable large and long-term stockholders or groups with at least 3% of the shares to nominate directors, cleared objections from the board. The board had earlier said a proposal like this could create opportunities for special interests to skew Tesla plans.

Musk said the company aimed to hit a production run rate of 2 million vehicles per year by the end of 2022 and would continue building factories.

Tesla has factories in California and Shanghai and is ramping up two more in Austin, Texas and Berlin. Musk said Tesla might be able to announce an additional factory this year and he expected eventually to have 10-12 so-called gigafactories.

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Reporting by Ankur Banerjee and Akash Sriram in Bengaluru; additional reporting by Peter Henderson in Oakland and Kevin Krolicki in Detroit; Editing by Anil D’Silva

Our Standards: The Thomson Reuters Trust Principles.

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Tesla investors pave way for stock split, vote with company on most proposals

Tesla Inc. shareholders on Thursday approved a proposal expected to lead to a 3-for-1 stock split and sided with the company on most of the proposals up for a vote.

Tesla
TSLA,
+0.40%
announced preliminary vote results at its gigafactory in Austin, its new corporate headquarters, at the end of an official shareholder meeting that was followed by a speech and question-and-answer session with Chief Executive Elon Musk.

The electric-car maker said the stock split, its second in two years, would provide its employees with more flexibility and make the stock more accessible to retail investors. Tesla performed a 5-for-1 stock split in August 2020, and its shares have increased 31% since then. They closed Thursday at $925.90, up 0.4%.

See: Tesla files for 3-for-1 stock split

With a goal of producing 20 million vehicles a year, Musk said an announcement about a new factory location could come later this year, and said Tesla could ultimately have 10 to 12 factories around the world. It currently has four, in Fremont, Calif.; Austin, Texas; Shanghai and Berlin.

Shareholders also approved the re-election of two board members despite being urged against it by proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services.

Martin Viecha, head of investor relations for Tesla, announced that the company proposals to reduce director terms to two years from three years, and to remove the supermajority voting requirement for proposals, had been approved by investors but failed to hit the two-thirds threshold of total shares outstanding needed to make the votes official. In addition, a shareholder proposal for shareholder proxy access passed, he said. It would give shareholders the ability to nominate board members.

See: Influential proxy advisory firms urge against voting for Tesla board members, for most shareholder proposals

Seven other shareholder proposals failed, according to the preliminary results. They included calls for reports on antiharassment and discrimination efforts, and on mandatory arbitration. Shareholders had also urged Tesla to adopt a policy on freedom of association and collective bargaining.

The company expects to file a final tally of the shareholder votes within four business days, as required, Viecha said.

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New TikTok challenge targets Kia, Hyundai car owners

LOWER MORELAND TOWNSHIP, Pennsylvania (WPVI) — A warning for Kia and Hyundai car owners: A new TikTok challenge is making you especially vulnerable to car thieves.

The social media videos are being put out by people all over the country, challenging teens and young adults to break into Kias and Hyundais and steal them.

The Lower Moreland Township Police Department said not only are they encouraging theft, they are also encouraging the perpetrators to go on dangerous, reckless joy rides and vandalize the vehicles.

“Anytime that you’re leaving your vehicle, even if it’s just for a couple of seconds, we want to make sure that you’re locking your cars, keeping any valuables out of sight,” said detective Justin Brommer.

Police also said that in many cases, criminals are using USB wires to jump-start vehicles, so if you have a USB wire or a charger in your car, hide it or take it with you.

Also, remember never to leave an unattended vehicle running. Park it in a safe, lighted area and check your surroundings. Police also said you might consider getting a steering wheel lock.

And if you see the videos on TikTok, make sure you report them to slow the spread of this kind of challenge from circulating.

In a statement, Kia said they are aware of the rise in vehicle thefts in our area but that new models and trims have an immobilizer applied. It also said all Kia vehicles for sale in the U.S. meet or exceed federal motor vehicle safety standards.

Copyright © 2022 WPVI-TV. All Rights Reserved.



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The best burns Twitter’s lawyers deployed to deny Elon Musk’s claims

So I don’t know entirely what’s in Elon Musk’s counterclaims against Twitter — they are still under seal — but I did get an inkling today, when Twitter dropped its response. It’s spicy! Rather than let Musk get his complaints out first, Twitter went ahead and released a blow-by-blow response, the better with which to dunk on Elon along the way.

I do love this:

The Counterclaims are a made-for-litigation tale that is contradicted by the evidence and common sense

Usually legal documents have arcane, passive-aggressive digs at the other party in them. Twitter’s lawyers, however, came out swinging in their reply to Musk’s counterclaims. Maybe that’s because they know how many people will read these documents; maybe it’s just because they’re interpersonally mean.

We picked our favorite passages in the paperwork, and are showcasing them here for anyone who might be interested.

So you may recall that Musk’s putative reason for bailing on Twitter was because of Twitter’s “false and misleading statements.” Those statements have to do with spam and bot accounts, and were part of what Musk’s lawyers brought to bear during the hearing that established an October trial date.

Twitter briefly walks the court through its process, its paperwork, and its disclosure statements in previous SEC filings. “Musk does not identify any false or misleading statement of fact in this disclosure,” Twitter notes. So where are his weird numbers coming from? Well, they don’t know, because:

Musk is not measuring the same thing as Twitter or even using the same data as Twitter.

Twitter goes on to suggest Musk is deliberately distorting these numbers to “make waves.” And then it says, “Who’s the bot now, hot stuff?”

Musk’s “preliminary expert estimates” are nothing more than the output of running the wrong data through a generic web tool. … Confirming the unreliability of Musk’s conclusion, he relies on an internet application called the “Botometer”— which applies different standards than Twitter does and which earlier this year designated Musk himself as highly likely to be a bot.

I cannot explain quite how funny I find this? Musk’s fancy, secret, “proprietary” analysis of Twitter data was a website called Botometer.

This is, for my money, the funniest part of the document. Here are some things Twitter is willing to admit are true:

Twitter admits that Musk is a Twitter user and has founded several companies.

Twitter admits that its business is complex.

Twitter admits that Musk is a Twitter user and has over 100 million followers

Twitter admits that it detects and removes spam from its platform

But “Twitter otherwise lacks knowledge or information sufficient to form a belief” as to whether Musk believes in free speech and open debate, whether he appreciates Twitter as a town hall, or that Twitter was a natural option for him to invest in. Later, Twitter admits that “Musk Tweets frequently.” It does so once in those words and once like this:

Twitter admits that Musk actively uses Twitter and that many people believe that open discourse is essential to a functioning democracy.

Does Twitter believe open discourse is essential to a functioning democracy? Dunno, but they can’t form beliefs on whether, to Musk, “eliminating free speech is a cure worse than the disease.”

Twitter admits that it did not provide the information in the April 28, 2022 press release to the Musk Parties before the Merger Agreement was signed and before the parties had a non-disclosure agreement in place.

Sorry, this might be the low-key funniest of “Twitter admits,” which is: yeah, we didn’t give him the press release till he signed the NDA. Now, this is in response to Musk complaining that he didn’t get a heads’ up when Twitter announced it miscounted its daily active users for several years. But it does seem pretty sensible to me not to tell anything to people with strong Twitter habits and poor impulse control until they’ve signed NDAs.

Or maybe it’s this one. Musk’s lawyers wrote that because Musk thought due diligence was “costly and inefficent,” so he didn’t do it.

Twitter avers that the Musk Parties declined to undertake any due diligence prior to signing the Merger Agreement.

Man, I mean, sometimes it just stings when your opponent agrees with you, huh?

Twitter admits that on July 8, 2022 Defendants purported to terminate the Merger Agreement, that Twitter subsequently filed litigation seeking specific performance of the Merger Agreement, and that Defendants have filed counterclaims.

Oh yes, good, Twitter admits this case exists.

Okay, so remember the will-he-or-won’t-he dance about Musk joining the board? Twitter does!

Musk abruptly changed his mind about joining Twitter’s board (after first negotiating an offer to join the board, accepting it in writing, and Tweeting that he was “looking forward” to taking the position), notified Mr. Agrawal of the same, and also notified Mr. Agrawal of his intent to make an offer to buy Twitter.

Because Musk didn’t identify any false or misleading statements Twitter made, Twitter has gotten snitty about his withdrawal from the acquisition:

Musk just now invented this new pretext for avoiding the merger agreement, as these supposed inaccuracies are nowhere mentioned in his July 8 letter to Twitter explaining the bases for his purported termination of the merger agreement, nor in any other communication with Twitter since signing the merger agreement. In any event, Twitter never made the disclosures he now asserts are false.

In Musk’s claim, his lawyers write that “Twitter’s primary business is operating a microblogging social media network where users share 280 character messages called ‘tweets.’” Twitter denies this, hilariously.

[Twitter’s] primary product, Twitter, is a global platform for real-time self-expression and conversation, including in the form of Tweets. Twitter further avers that Tweets have a maximum length of 280 characters.

I wonder what “social network” and “microblogging” mean to Twitter’s lawyers?

I don’t think this one needs more context, honestly. I’m just surprised not to see an actual emoji in the filing:

On May 16, 2022, Mr. Musk publicly replied to that Tweet Thread with a poop emoji.

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AMC investors will go APE, company announces

You may remember our friends at AMC, the theater chain with the pantless CEO, who’ve leaned all the way in on the meme stock thing. Hordes of enthusiastic retail investors maybe rescued AMC from crushing debt. Now AMC is hoping to tap them again to create more shares of the company.

This quarter, AMC announced a dividend for shareholders: AMC Preferred Equity units, which will trade as APE on the New York Stock Exchange. One of these babies will exist for every common share, and can be converted to common stock if the company and investors vote for that to happen.

That “if” is kind of sticky though. See, AMC wanted to sell more shares and was shot down by investors. Maybe those investors didn’t want to be further diluted — AMC sold a lot of shares during the pandemic. Maybe something else was at play. But APE, the solution, isn’t just a nice marketing ploy to keep retail’s attention. It’s an end run around the investors who voted against more shares. After giving about 5 million shares of APE to investors, AMC can sell 4.5 billion units to the broader market, The Wall Street Journal reports.

The news was released after market. AMC shares closed at $18.66 today, and after market shares plunged almost 8 percent to $17.16 at 5PM ET, suggesting investors are not exactly excited about the plan. Or maybe they just didn’t like the company’s earnings numbers, also released today: AMC revenue hasn’t recovered from the pandemic.

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Beyond Meat (BYND) Q2 2022 earnings

Vegetarian sausages from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California, June 5, 2019.

Mike Blake | Reuters

Beyond Meat on Thursday lowered its revenue forecast for 2022 and announced it will trim its workforce by 4%, citing broader economic uncertainty.

The El Segundo, California-based company also reported a wider-than-expected loss and weak sales. Its shares fell 2% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Loss per share: $1.53 vs. $1.18 expected
  • Revenue: $147 million vs. $149.2 million expected

Net sales dropped 1.6% to $147 million. The company attributed the decline to changes in foreign exchange rates, increased discounts and sales to liquidation channels.

“We recognize progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s push into mass market consumption with plant-based products that mimic meat.

For 2022, Beyond now expects revenue of $470 million to $520 million, down from its prior forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors that drove the revised outlook.

Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million on an annual basis. However, the company will also spend roughly $1 million in separation costs that will impact its third-quarter results.

Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, wider than the net loss of $19.7 million, or 31 cents per share, a year earlier. The company said it spent more on ingredients and manufacturing this quarter. Moreover, its meatless Beyond Jerky, made through a joint venture with PepsiCo, weighed on profit margins for the second consecutive quarter.

U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline of its restaurant business. Prior to the pandemic, restaurants accounted for more than half of its sales, but the business has struggled to bounce back.

Outside the U.S., grocery sales fell 17%, while restaurant sales increased 7%. The two international divisions generally contribute roughly equal revenue for Beyond.

Read the full earnings report here.

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Facebook parent Meta makes first-ever bond offering

The logo of Meta Platforms is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. REUTERS/Arnd Wiegmann//File Photo

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Aug 4 (Reuters) – Facebook-parent Meta Platforms (META.O) said on Thursday it would make its first-ever bond offering, at a time when the social media company is making massive investments to fund its virtual reality projects.

While Meta did not disclose the size of the offering, IFR News reported the bond sale could fetch between $8.5 billion and $10 billion, citing a source familiar with the matter.

The company said it would use the proceeds for capital expenditures, share repurchases, acquisitions or investments.

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Meta received an ‘A1’ rating from Moody’s and an ‘AA- rating’ and a ‘stable’ outlook from S&P. Meta is selling four tranches of bonds with maturities ranging from five years to 40 years.

Among big technology companies, Meta is the only one that does not have any debt on its books. Tapping the market now would give it more financial room as it tries to fund some expensive overhauls, including a bet on augmented and virtual reality technology, investors who heard its presentation for the bond offering on Tuesday said.

It might also be a rare opportunity to do so relatively cheaply in the current market environment. Corporate bonds rebounded in the past month after a rout earlier this year, as investors hoped the U.S. Federal Reserve’s fight against inflation through rapid rate increases was starting to have some impact.

This week the U.S. investment grade primary bond market rebounded, with companies raising more than $38 billion, making it the eighth busiest week of the year, according to Informa Global Markets data.

Other tech giants such as Apple Inc (AAPL.O) and Intel Corp (INTC.O) also issued bonds earlier this week, raising $5.5 billion and $6 billion, respectively.

Bankers and investors said such issuance windows may be rare in coming months. One banker in charge of a bond syndicate desk at a U.S. bank said credit spreads could widen later this year, increasing funding costs. read more

Meta’s bond issuance will come after the company issued a gloomy forecast and recorded its first-ever quarterly drop in revenue, with recession fears and competitive pressures weighing on its digital ads sales. read more

Its free-cash flow has been depleting as it charges ahead with its metaverse plans, which led the change in its name to Meta Platforms from Facebook last year.

In the second quarter ended June 30, Meta had $4.45 billion in free cash flow, compared with $8.51 billion a year ago and $8.53 billion in the prior quarter.

Chief Financial Officer Dave Wehner said on its most recent earnings conference call that company had a “substantial amount” in its buyback program and expects to continue with share repurchases as part of its capital allocation strategy.

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Reporting by Nivedita Balu in Bengaluru and Shankar Ramakrishnan; Editing by Saumyadeb Chakrabarty and Paritosh Bansal

Our Standards: The Thomson Reuters Trust Principles.

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Is anyone buying couches and beds from Wayfair anymore?

Shoppers dished out for new sofas, beds and decor, remodeled their kitchens and backyards and invested in their remote work setup. Demand was so hot that it broke global supply chains and caused lengthy delays for goods.

It all meant boom times for online retailer Wayfair (W) and companies such as Williams-Sonoma (WSM), RH (RH), Bed Bath & Beyond (BBBY), Overstock (OSTBP) and other furniture and homegoods’ chains. Wayfair’s stock leaped 140% in 2020.

Fast forward two years. The picture looks a lot different now.

Inflation has tapped out lower and middle-income shoppers, who have pulled back their discretionary purchases to focus on paying for necessities like groceries, gas and rent. Wealthier customers have shifted their spending from furniture and other goods to travel and services. Mortgage rates are up, cutting into demand for new homes.

That’s pressuring Wayfair and other chains that saw a sales spike earlier in the pandemic.

Wayfair said Thursday that its sales declined 15% during its latest quarter ending June 30 compared with the same period last year; it also lost 24% of its active customers — sign that the company is struggling to retain the shoppers it gained at the beginning of the pandemic. Wayfair posted a net loss of $378 million during the quarter.

“Customers are being more deliberate about where their discretionary dollars are going as prices at the gas station and grocery store eat up a greater share of [their] wallet,” Wayfair CEO Niraj Shah said on a call with analysts Thursday.

“We have also seen many of those discretionary dollars flow away from goods to services, especially travel,” he added.

Shah said customers have been trading down to cheaper options and Wayfair has been increasing promotions to spur demand.

Wayfair’s stock has plunged more than 60% this year, while RH shares have lost 45% and Bed Bath & Beyond is down 57%. Williams-Sonoma, which also includes West Elm and Pottery Barn, has dropped 13%.

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