Tag Archives: Companies

Shares of Rocket Companies, a large short target of hedge funds, jump more than 20%

The WallStreetBets forum on the Reddit Inc. website on a laptop computer and the logo on a smartphone arranged in Hastings-On-Hudson, New York, U.S., on Friday, Jan. 29, 2021.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Shares of Rocket Companies rallied more than 20% Tuesday in a surprising move on no apparent new news. The online mortgage provider currently has large short bets placed against it by hedge funds and appears to have garnered some bullish interest from day traders on Reddit’s infamous WallStreetBets.

Nearly 40% of its available shares are sold short and it is near the top of the list of U.S. companies in terms of size of short bet by hedge funds, according to FactSet. That makes it classic target by meme-obsessed investors, who have been storming together this year into shares and call options of heavily shorted companies in order to squeeze out short sellers. It was unclear of the size of the retail interest in Rocket at this time.

A number of popular posts on WallStreetBet chatroom featured Rocket on Tuesday. One says “I like RKT. $1.7M all-in, let’s gooo YOLO,” and it quickly drew more than 1,700 comments.

“It’s 38% short … When people see that, they think you can bust the sellers,” CNBC’s Jim Cramer said on “Squawk on the Street,” while adding he actually likes Rocket Companies’ management and business fundamentals. 

“I have been a huge fan of [CEO] Jay Farner and [Chairman] Dan Gilbert .. and frankly don’t understand why the stock did not react to what was a very good where they basically laid out a story that just said, ‘We can show how when rates go up, it has not hurt our business. When rates go down, it’s not hurt our business.'”

The surge in Rocket could be a sign that the retail trading mania seen in GameStop earlier this year is still a factor. A month ago, an army of retail investors on Reddit managed to push the brick-and-mortar video game retailer up 1,500% in two weeks, inflicting huge pain for short selling hedge funds. The broader market also experienced some spill-over impact from the frenzy as many big investors took down risk across the board.

When a stock with high short interest jumps sharply higher, it could force short sellers to cover their bearish positions in order to limit their losses. The short covering tends to fuel the stock’s rally further.

Rocket reported stronger-than-expected fourth-quarter earnings on Thursday, which impressed some Wall Street analysts. Wells Fargo raised its price target slightly and moved up its earnings estimate for Rocket following its big beat.

“We were impressed with Q4 earnings, particularly the resilience of their direct to consumer retail GOS margins,” Donald Fandetti, Wells analyst, said in a note on Monday. “RKT seems to be well positioned to take market share if the environment gets more dislocated from higher rates.”

— CNBC’s Kevin Stankiewicz contributed reporting.

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‘We continue to see passwords being a big risk’ for companies

The New York Times

Far-Right Groups Are Splintering in Wake of the Capitol Riot

Just eight weeks after the Capitol riot, some of the most prominent groups that participated are fracturing amid a torrent of backbiting and finger-pointing. The fallout will determine the future of some of the most high-profile far-right organizations and raises the specter of splinter groups that could make the movement even more dangerous. “This group needs new leadership and a new direction,” the St. Louis branch of the Proud Boys announced recently on the encrypted messaging service Telegram, echoing denunciations by at least six other chapters also rupturing with the national organization. “The fame we’ve attained hasn’t been worth it.” Similar rifts have emerged in the Oath Keepers, a paramilitary group that recruits veterans, and the Groyper Army, a white nationalist organization focused on college campuses and a vocal proponent of the false claim that Donald Trump won the 2020 presidential election. Sign up for The Morning newsletter from the New York Times The shake-up is driven in part by the large number of arrests in the aftermath of the Capitol riot and the subsequent crackdown on some groups by law enforcement. As some members of the far right exit more established groups and strike out on their own, it may become even more difficult to track extremists who have become more emboldened to carry out violent attacks. “What you are seeing right now is a regrouping phase,” said Devin Burghart, who runs the Institute for Research and Education on Human Rights, a Seattle-based center that monitors far-right movements. “They are trying to reassess their strengths, trying to find new foot soldiers and trying to prepare for the next conflict.” The top leaders of the Groyper Army, Nick Fuentes and Patrick Casey, have been in a bitter public dispute in the weeks since the riot. Casey accused Fuentes of putting followers at risk of arrest by continuing high-profile activities. Fuentes wrote on Telegram, “It’s not easy but it is important to keep pushing forward now more than ever.” Among the Proud Boys, a far-right fight club that claims to defend the values of Western civilization, the recriminations were compounded by revelations that Enrique Tarrio, the organization’s leader, once worked as an informant for law enforcement. Despite denials from Tarrio, the news has thrown the organization’s future into question. “We reject and disavow the proven federal informant, Enrique Tarrio, and any and all chapters that choose to associate with him,” the Alabama chapter of the Proud Boys announced on Telegram using language identical to other chapters. After the Capitol siege on Jan. 6, accusations about informants and undercover agents have been particularly pointed. “Traitors are everywhere, everywhere,” wrote one participant on a far-right Telegram channel. The chapters breaking away accused Tarrio of leading the group astray with high-profile clashes with far-left demonstrators and by storming the Capitol. “The Proud Boys were founded to provide brotherhood to men on the right, not to yell slogans at the sky” and “get arrested,” the St. Louis chapter said in its announcement. Extremist organizations tend to experience internal upheaval after any cataclysmic event, as seen in the case of the 2017 rally in Charlottesville, Virginia, that left one woman dead, or the Oklahoma City bombing in 1995, which killed 168 people, including 19 children. Daryl Johnson, who has studied the Three Percenters and other paramilitary groups, said the current infighting could lead to further hardening and radicalization. “When these groups get disrupted by law enforcement, all it does is scatter the rats,” he said. “It does not get rid of the rodent problem.” President Joe Biden has pledged to make fighting extremism a priority and Merrick Garland, his nominee for attorney general, said during his Senate confirmation hearings that he promised to “do everything in the power of the Justice Department” to stop domestic terrorism. Garland, the lead prosecutor in the Oklahoma City bombing case, also said the United States was facing “a more dangerous period than we faced in Oklahoma City” or in recent memory. More than 300 people have been charged in the Capitol riot, with roughly 500 total cases expected. At least 26 people facing some of the most serious accusations have been tied to the Oath Keepers or the Proud Boys. Most of those in the crowd were probably unaffiliated with a particular group yet radicalized enough to show up in Washington to support Trump’s false election claim, experts said, feeding concerns about how they will channel their anger going forward. The legal fallout from the riot will most likely push people underground as well. Overall, the hazy affiliations and the potential for lone offenders will make it more difficult to uncover planned attacks. Already, there has been chatter among members of paramilitary groups that stormed the Capitol about trying to attack it while the president addresses a joint session of Congress, Yogananda D. Pittman, the acting chief of the Capitol Police, told a House subcommittee last week. But even as some extremist groups push for more confrontation, all kinds of adherents want out. The president of the North Carolina chapter of the Oath Keepers, Doug Smith, announced last month that he was splitting from the national organization. Smith did not respond to messages seeking comment, but he told The News Reporter, his local newspaper in Whiteville, North Carolina, that he was ashamed by demonstrators who attacked the Capitol and beat police officers. For others, however, the riot was a resounding success, an opening shot across the bows of the law and the establishment. “There is a small segment that is going to see this as Lexington and Concord, the shot heard around the world, and the beginning of either the racial holy war or the fall of our society, of our government,” said Tom O’Connor, a retired FBI counterterrorism specialist who continues to train agents on the subject. Far-right groups are already rallying around opposition to proposed changes to immigration policy and the discussion of stricter gun control under Biden’s administration. The number of people inclined toward violence is impossible to count, but experts agree that harsh political divisions have expanded the potential pool on both right and left fringes. The splintering of larger organizations sets the stage for small groups or lone offenders, who are more difficult to track. “That makes them more dangerous,” said J.J. MacNab, an expert on paramilitary groups at George Washington University’s Program on Extremism. Timothy McVeigh, who was executed for the Oklahoma City bombing, did not join a paramilitary group but still adopted the violent ideology. “The rhetoric is fuel to the fire for those lone offenders,” said O’Connor, echoing a common worry. “My concern now is that there are many McVeighs in the offing.” Experts cite a variety of reasons for why the propensity toward violence might be worse now than during previous times when far-right organizations declared war on the government. The Oklahoma City attack caused a period of retreat, but the election of a Black president in 2008 resurrected the white supremacy movement. These groups have now experienced some 13 years without any sustained effort by law enforcement to counter them, experts said. Some groups that organized the far-right rally in Charlottesville in 2017 fell apart over the subsequent internal squabbling and a lawsuit that threatens to bankrupt them. Others, including the Proud Boys and various paramilitary organizations, grew larger and went on to participate in the Jan. 6 riot. At the same time, extremist ideology has spread further and much more rapidly on social media, and foreign governments like Russia have worked actively to disseminate such thoughts to sow divisions within the United States. New threats and concerns about potential targets continue to surface. The announcement in early February that hackers attempted to poison the water supply in a small Florida city attracted the attention of Rinaldo Nazzaro, the founder of a violent white supremacist group called the Base. Seven members of the Base in three states were rounded up last year on charges of planning to commit murder, kidnapping and other violence in order to ignite a wider civil war that would allow a white homeland to emerge. Nazzaro, out of the reach of U.S. law enforcement in Russia, wrote on Telegram that the water poisoning plot was a possible template for something larger. The kind of extremists who worry experts the most emerged in October, when a paramilitary cell planning to kidnap the governor of Michigan was exposed. In federal court in January, the FBI portrayed one of the 14 defendants, Barry G. Croft Jr., 44, as a national leader of the Three Percenters, a loosely allied coalition of paramilitary groups that is difficult to track because virtually anyone can claim allegiance. Croft helped to build and test shrapnel bombs to target people, according to court documents, and a hit list that he posted on Facebook included threats to Trump and Barack Obama. In denying him bail, Judge Sally J. Berens quoted from transcripts of conversations taped by an informant in which he threatened to hurt people or to blow things up. “I am going to do some of the most nasty, disgusting things that you have ever read about in the history of your life,” the judge quoted him as saying. This article originally appeared in The New York Times. © 2021 The New York Times Company

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Countries call on drug companies to share vaccine know-how

PARIS (AP) — In an industrial neighborhood on the outskirts of Bangladesh’s largest city lies a factory with gleaming new equipment imported from Germany, its immaculate hallways lined with hermetically sealed rooms. It is operating at just a quarter of its capacity.

It is one of three factories that The Associated Press found on three continents whose owners say they could start producing hundreds of millions of COVID-19 vaccines on short notice if only they had the blueprints and technical know-how. But that knowledge belongs to the large pharmaceutical companies who produce the first three vaccines authorized by countries including Britain, the European Union and the U.S. — Pfizer, Moderna and AstraZeneca. The factories are all still awaiting responses.

Across Africa and Southeast Asia, governments and aid groups, as well as the World Health Organization, are calling on pharmaceutical companies to share their patent information more broadly to meet a yawning global shortfall in a pandemic that already has claimed over 2.5 million lives. Pharmaceutical companies that took taxpayer money from the U.S. or Europe to develop inoculations at unprecedented speed say they are negotiating contracts and exclusive licensing deals with producers on a case-by-case basis because they need to protect their intellectual property and ensure safety.

Critics say this piecemeal approach is just too slow at a time of urgent need to stop the virus before it mutates into even deadlier forms. WHO called for vaccine manufacturers to share their know-how to “dramatically increase the global supply.”

“If that can be done, then immediately overnight every continent will have dozens of companies who would be able to produce these vaccines,” said Abdul Muktadir, whose Incepta plant in Bangladesh already makes vaccines against hepatitis, flu, meningitis, rabies, tetanus and measles.

All over the world, the supply of coronavirus vaccines is falling far short of demand, and the limited amount available is going to rich countries. Nearly 80% of the vaccines so far have been administered in just 10 countries, according to WHO. More than 210 countries and territories with a collective population of 2.5 billion hadn’t received a single shot as of last week.

The deal-by-deal approach also means that some poorer countries end up paying more for the same vaccine than richer countries. South Africa, Mexico, Brazil and Uganda all pay different amounts per dose for the AstraZeneca vaccine — more than governments in the European Union, according to studies and publicly available documents. AstraZeneca said the price of the vaccine will differ depending on factors such as production costs, where the shots are made and how much countries order.

“What we see today is a stampede, a survival of the fittest approach, where those with the deepest pockets, with the sharpest elbows are grabbing what is there and leaving others to die,” said Winnie Byanyima, executive director of UNAIDS.

In South Africa, home to the world’s most worrisome COVID-19 variant, the Biovac factory has said for weeks that it’s in negotiations with an unnamed manufacturer with no contract to show for it. And in Denmark, the Bavarian Nordic factory has capacity to spare and the ability to make more than 200 million doses but is also waiting for word from the producer of a licensed coronavirus vaccine.

Governments and health experts offer two potential solutions to the vaccine shortage: One, supported by WHO, is a patent pool modeled after a platform set up for HIV, tuberculosis and hepatitis treatments for voluntary sharing of technology, intellectual property and data. But not a single company has offered to share its data or transfer the necessary technology.

The other, a proposal to suspend intellectual property rights during the pandemic, has been blocked in the World Trade Organization by the United States and Europe, home to the companies responsible for creating the coronavirus vaccines. That drive has the support of at least 119 countries among the WTO’s 164 member states, and the African Union, but is adamantly opposed by vaccine makers.

Pharmaceutical companies say instead of lifting IP restrictions, rich countries should simply give more of the vaccines they have to poorer countries through COVAX, the public-private initiative WHO helped create for equitable vaccine distribution. The organization and its partners delivered its first doses last week — in very limited quantities.

But rich countries are not willing to give up what they have. Ursula Von der Leyen, head of the European Commission, has used the phrase “global common good” to describe the vaccines. Even still, the European Union imposed export controls on vaccines, giving countries the power to stop shots from leaving their borders in some cases.

In comments Monday on her first day as director-general of the WTO, Nigeria’s Ngozi Okonjo-Iweala said the time had come to shift attention to the vaccination needs of the world’s poor.

“We must focus on working with companies to open up and license more viable manufacturing sites now in emerging markets and developing countries,” she said, according to notes from her closed-door talk with delegates shared with The Associated Press.

The long-held model in the pharmaceutical industry is that companies pour in huge amounts of money and research in return for the right to reap profits from their drugs and vaccines. At an industry forum last May, Pfizer’s CEO Albert Bourla described the idea of sharing IP rights widely as “nonsense” and even “dangerous.” AstraZeneca’s chief Pascal Soriot said if intellectual property is not protected, “there is no incentive for anybody to innovate.”

Thomas Cueni, director general of the International Federation of Pharmaceutical Manufacturers, called the idea of lifting patent protections “a very bad signal to the future. You signal that if you have a pandemic, your patents are not worth anything.”

Advocates of sharing vaccine blueprints argue that, unlike with most drugs, taxpayers paid billions to develop vaccines that are now “global public goods” and should be used to end the biggest public health emergency in living memory.

“People are literally dying because we cannot agree on intellectual property rights,” said Mustaqeem De Gama, a South African diplomat who has been deeply involved in the WTO discussions.

Paul Fehlner, the chief legal officer for biotech company Axcella and a supporter of the WHO patent pool board, said governments that poured billions of dollars into developing vaccines and treatments should have demanded more from the companies they were financing from the beginning.

“A condition of taking taxpayer money is not treating them as dupes,” he said.

In an interview with the Journal of the American Medical Association, Dr. Anthony Fauci, the leading pandemic expert in the United States, said all options need to be on the table, including increasing aid, improving production capacity in the developing world and working with pharmaceutical companies to relax their patents.

“Rich countries, ourselves included, have a moral responsibility when you have a global outbreak like this,” Fauci said. “We’ve got to get the entire world vaccinated, not just our own country.”

It’s hard to know exactly how much more vaccine could be made worldwide if intellectual property restrictions were lifted, because the spare production capacity of factories has not been publicly shared. But Suhaib Siddiqi, former director of chemistry at Moderna, said with the blueprint and technical advice, a modern factory should be able to get vaccine production going in at most three to four months.

“In my opinion, the vaccine belongs to the public,” said Siddiqi. “Any company which has experience synthesizing molecules should be able to do it.”

Back in Bangladesh, the Incepta factory tried to get what it needed to make more vaccines in two ways, by offering its production lines to Moderna and by reaching out to a WHO partner. Moderna did not respond to multiple requests for comment about the Bangladesh plant, but its CEO, Stéphane Bancel, told European lawmakers that the company’s engineers are fully occupied on expanding production in Europe.

“Doing more tech transfer right now could actually put the production and the increased output for the months to come at great risk,” he said. “We are very open to do it in the future once our current sites are running.”

Muktadir said he was also in discussions last May with CEPI, or the Coalition for Epidemic Preparedness Innovations, one of WHO’s partners in a global effort to buy and distribute COVID-19 vaccines fairly, but nothing came of it. CEPI spokesman Tom Mooney said the talks last year with Incepta didn’t raise interest, but that CEPI is still in discussions “about matchmaking opportunities including the possibility of using Incepta’s capacity for second wave vaccines.”

Muktadir said he fully appreciates the extraordinary scientific achievement involved in the creation of vaccines this year, wants the rest of the world to be able to share in it, and is willing to pay a fair price.

“Nobody should give their property just for nothing,” he said. “A vaccine could be made accessible to people — high quality, effective vaccines.”

___

Cheng reported from Toronto. Jamey Keaten in Geneva, Jan M. Olsen in Copenhagen, Denmark, Al-Emrun Garjon in Dhaka, Bangladesh, and Andrew Meldrum in Johannesburg, South Africa, contributed to this report.

___

Follow AP’s pandemic coverage at https://apnews.com/hub/coronavirus-pandemic, https://apnews.com/hub/coronavirus-vaccine and https://apnews.com/UnderstandingtheOutbreak

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Google Fires Another Top Researcher on Its AI Ethics Team

Photo: Leon Neal (Getty Images)

Google has fired another top artificial intelligence researcher, Margaret Mitchell, in the latest escalation of internal tensions at the company following December’s controversial ouster of Timnit Gebru, a Black AI ethicist. As if the PR fire with Google’s AI ethics team didn’t have enough fuel already.

Mitchell, who formerly lead the team alongside Gebru, was caught using automated scripts to comb through her work emails to find evidence of discrimination and harassment to back up Gebru’s claims, Axios reports. In January, she lost access to her corporate email after Google launched an investigation into her activity. In a statement to Reuters, Google claims Mitchell’s firing followed disciplinary recommendations by investigators and a review committee. Google said she violated the company’s code of conduct and security policies and transferred electronic files outside the company.

Mitchell announced her termination Friday evening in a tweet. When reached for comment by CNN regarding Google’s claims, she told the outlet, “I don’t know about those allegations actually. I mean most of that is news to me.”

She joined the company in 2016 as a senior research scientist and founded Google’s AI ethics team with Gebru. In the past few months, Mitchell has been openly critical of Google’s abrupt dismissal of Gebru, one of the few Black employees at the company (just 3.7% of Google’s U.S. staff are Black according to its 2020 annual diversity report). Gebru claims she was fired after raising concerns about the company’s shoddy diversity protocols and its attempt to censor research critical of its products.

Gebru’s firing “created a domino effect of trauma for me and the rest of the team, and I believe we are being increasingly punished for that trauma,” Mitchell wrote on Twitter Friday. Another leading AI researcher at the company, Alex Hanna, tweeted a screenshot that evening purportedly of an email she received from higher-ups threatening that she is next on the chopping block.

Thousands of Google employees and experts in the AI community protested Google’s decision to fire Gebru, and it’s lead to increased scrutiny over the company’s AI ethics research. Now it seems internal tensions have started bubbling over as Google attempts to muzzle dissenters and hurriedly turn the page on the controversy by burying it in a flood of policy changes. Earlier this week, Google announced plans to restructure its responsible AI teams to consolidate leadership under Marian Croak, Google’s VP of engineering. Hours before Mitchell’s firing, Google reportedly sent out an internal email detailing several other new research and diversity policy changes the company’s implementing in the wake of an internal investigation into Gebru’s termination.



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Power companies begin forced outages as bitter temperatures push electric infrastructure to the limit

Around midday Monday, area residents began to report that their power was turned off amid brutally cold temperatures. Subzero temperatures and extremely cold wind chills continued Monday, with record lows likely Tuesday morning.Omaha Public Power District President Tim Burke told KETV that forced outages, affecting those served by the Southwest Power Pool, were planned to last about an hour. OPPD, LES, NPPD are all served by the Southwest Power Pool.The Southwest Power Pool reported on Twitter: “After declaring an Energy Emergency Alert Level 3 at 10:08 a.m. this morning, and after exhausting all other options to ensure the continued reliability of the regional grid, SPP is directing member utilities to implement controlled interruptions of service effective immediately.”Officials say this is happening because there is not enough power available to keep up with customer demand and that this type of demand reduction is only used as a last resort to preserve the reliability of the electric grid. Burke said around noon they started outages in Bellevue and the power was returned around 1 p.m. Residents in La Vista reported losing power for about 30 minutes at 1 p.m.This is the first time OPPD has had to resort to this measure. Burke asks that customers don’t panic, saying they will “load shed” for an hour at a time in different parts of the customer area. This won’t affect hospitals, jails, other critical industries. He said officials will not be able to give a warning to customers to let them know if their power will be affected. Officials called the event “unprecedented.””It’s a last resort that we understand puts a burden on our member utilities and the customers they serve, but it’s a step we’re consciously taking to prevent circumstances from getting worse, which could result in uncontrolled outages of even greater magnitude,” chief operating officer Lanny Nickell said. Burke said a big part of the problem is a lack of wind, which is affecting supply.The Omaha Public Power District asked customers Sunday to add blankets and lower the thermostat as subzero temperatures push electrical infrastructure to the limit across much of the Central United States.“These prolonged, frigid temperatures are increasing demand for energy across our service territory and for our partner utilities,” said Tim Burke, president and CEO of OPPD in a news release. OPPD is part of the Southwest Power Pool, which asked all members to begin energy conservation at 11:59 p.m. Sunday. SPP declared an Energy Emergency Alert to balance the high demand for electricity.OPPD said customers can help by lowering the thermostat, and dressing more warmly in the house. Customers should also make sure the fireplace damper is closed when not in use.A release from the utility offered options for those looking to help:What should I do?If you are healthy enough to do so, turn down your thermostat by 3 degrees. (Note: Older adults may want to raise the thermostat to prevent hypothermia).To help stay warm, wear a sweater or other layers of clothing.Close the fireplace damper when not in use to avoid losing heat through the chimney.Leave curtains, blinds and/or shades open in direct sunlight to warm the room and close them at night to prevent heat loss through the windows.To avoid frozen pipes, allow heat to circulate around meters and pipes located near outside walls, in uninsulated cabinets or other enclosed areas.Where previous freeze-ups have been a problem, a slight trickle of water from the faucet may keep a pipe from freezing.PROTECT YOURSELF DURING A POWER OUTAGE:Keep freezers and refrigerators closed.Have phones charged and batteries available.Use a generator, but ONLY outdoors and away from windows.Do not use a gas stove and ovens to heat your home.Disconnect appliances and electronics to avoid damage from electrical surges.Have alternate plans for refrigerating medicines or using power-dependent medical devices.If safe, go to an alternate location for heat or cooling. Be a good neighbor. Check on the welfare of others.Read more here

Around midday Monday, area residents began to report that their power was turned off amid brutally cold temperatures.

Subzero temperatures and extremely cold wind chills continued Monday, with record lows likely Tuesday morning.

Omaha Public Power District President Tim Burke told KETV that forced outages, affecting those served by the Southwest Power Pool, were planned to last about an hour. OPPD, LES, NPPD are all served by the Southwest Power Pool.

The Southwest Power Pool reported on Twitter: “After declaring an Energy Emergency Alert Level 3 at 10:08 a.m. this morning, and after exhausting all other options to ensure the continued reliability of the regional grid, SPP is directing member utilities to implement controlled interruptions of service effective immediately.”

Officials say this is happening because there is not enough power available to keep up with customer demand and that this type of demand reduction is only used as a last resort to preserve the reliability of the electric grid.

Burke said around noon they started outages in Bellevue and the power was returned around 1 p.m. Residents in La Vista reported losing power for about 30 minutes at 1 p.m.

This is the first time OPPD has had to resort to this measure. Burke asks that customers don’t panic, saying they will “load shed” for an hour at a time in different parts of the customer area. This won’t affect hospitals, jails, other critical industries.

He said officials will not be able to give a warning to customers to let them know if their power will be affected.

Officials called the event “unprecedented.”

“It’s a last resort that we understand puts a burden on our member utilities and the customers they serve, but it’s a step we’re consciously taking to prevent circumstances from getting worse, which could result in uncontrolled outages of even greater magnitude,” chief operating officer Lanny Nickell said.

Burke said a big part of the problem is a lack of wind, which is affecting supply.

The Omaha Public Power District asked customers Sunday to add blankets and lower the thermostat as subzero temperatures push electrical infrastructure to the limit across much of the Central United States.

“These prolonged, frigid temperatures are increasing demand for energy across our service territory and for our partner utilities,” said Tim Burke, president and CEO of OPPD in a news release.

OPPD is part of the Southwest Power Pool, which asked all members to begin energy conservation at 11:59 p.m. Sunday. SPP declared an Energy Emergency Alert to balance the high demand for electricity.

OPPD said customers can help by lowering the thermostat, and dressing more warmly in the house. Customers should also make sure the fireplace damper is closed when not in use.

    A release from the utility offered options for those looking to help:
    What should I do?
    • If you are healthy enough to do so, turn down your thermostat by 3 degrees. (Note: Older adults may want to raise the thermostat to prevent hypothermia).
    • To help stay warm, wear a sweater or other layers of clothing.
    • Close the fireplace damper when not in use to avoid losing heat through the chimney.
    • Leave curtains, blinds and/or shades open in direct sunlight to warm the room and close them at night to prevent heat loss through the windows.
    • To avoid frozen pipes, allow heat to circulate around meters and pipes located near outside walls, in uninsulated cabinets or other enclosed areas.
    • Where previous freeze-ups have been a problem, a slight trickle of water from the faucet may keep a pipe from freezing.

PROTECT YOURSELF DURING A POWER OUTAGE:

  • Keep freezers and refrigerators closed.
  • Have phones charged and batteries available.
  • Use a generator, but ONLY outdoors and away from windows.
  • Do not use a gas stove and ovens to heat your home.
  • Disconnect appliances and electronics to avoid damage from electrical surges.
  • Have alternate plans for refrigerating medicines or using power-dependent medical devices.
  • If safe, go to an alternate location for heat or cooling.
  • Be a good neighbor. Check on the welfare of others.

Read more here



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Klobuchar antitrust legislation would make it harder for big companies to acquire small ones

Democratic Minnesota Sen. Amy Klobuchar on Thursday is introducing legislation that would make it harder for big companies displaying anticompetitive behavior to acquire smaller companies.

The Competition and Antitrust Law Enforcement Reform Act aims to make it easier for lawmakers to push back against anticompetitive conduct and mergers and improve enforcement actions.

“Competition and effective antitrust enforcement are critical to protecting workers and consumers, spurring innovation, and promoting economic equity,” Klobuchar said in a statement. “While the United States once had some of the most effective antitrust laws in the world, our economy today faces a massive competition problem. We can no longer sweep this issue under the rug and hope our existing laws are adequate.

Senator Amy Klobuchar, a Democrat from Minnesota, speaks during a Senate Veterans’ Affairs Committee confirmation hearing for Denis McDonough. (Photographer: Sarah Silbiger/Bloomberg via AP)

She added that the new legislation “is the first step to overhauling and modernizing our laws so we can effectively promote competition and protect American consumers.”

EXXON MOBILE, CHEVRON DISCUSSED MERGER: REPORT

Klobuchar is a staunch critic of big tech and has pressed the country’s largest companies on what appears to be anti-competitive behavior, such as Facebook’s purchases of Instagram and WhatsApp, which were approved by the U.S. government. She has also criticized Google’s use of customer data to strengthen its leading position in the search engine and digital advertising markets.

Ticker Security Last Change Change %
FB FACEBOOK INC. 265.80 -0.85 -0.32%
GOOGL ALPHABET INC. 2,046.02 -12.86 -0.62%

The Minnesota senator and other big tech critics have argued that big companies use their dominant positions to purchase smaller companies and drive out marketplace competition.

POTENTIAL BIDEN AG PICK KLOBUCHAR: GOOGLE BREAKUP SHOULD BE ‘ON THE TABLE’

Democratic Sens. Richard Blumenthal of Connecticut, Cory Booker of New Jersey and Ed Markey of Massachusetts are cosponsoring the bill.

Sen. Amy Klobuchar, D-Minn., wears a protective mask during a confirmation hearing for Transportation Secretary nominee Pete Buttigieg. (Stefani Reynolds/Pool via AP)

The Competition and Antitrust Law Enforcement Reform Act seeks to increase the annual budget for the Justice Department’s Antitrust Division and the Federal Trade Commission; stop anticompetitive mergers by updating Section 7 of the Clayton Act; create a new provision in the Clayton Act to stop “exclusionary conduct” that could lead to “appreciable risk of harming competition”; establish a new FTC division; and introduce reforms implement a series of reforms to prevent anticompetitive behavior.

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Consumer Reports senior policy counsel George Slover commended Klobuchar for the bill.

“Consumer Reports appreciates Senator Klobuchar’s steady leadership in working to strengthen our antitrust laws to equip them to protect a competitive marketplace and the benefits that consumers, small businesses, and workers receive from it,” Slover said. “This legislation gives our antitrust laws an important re-set. It ensures that harmful merger trends and exclusionary conduct can be stopped before it is too late and the harm is locked in.”

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He added that the bill “extends the reach of the law so that blocking others from a fair chance to compete is a violation, even before a monopoly results” and “gives our government the enforcement authority and resources needed for effective deterrence.”

The Minnesota senator is expected to formally introduce the bill later on Thursday.

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Daimler to split in two companies, Daimler Truck to focus on EV, self-driving

Germany’s Daimler AG
DAI,
+8.91%,
the company behind well-known auto brands such as Mercedes Benz and truck and bus makers Freightliner and Thomas Built, said Wednesday it plans to split into two standalone companies, spinning off Daimler Truck, which will focus on electric vehicles and self-driving. The other part of the business will be renamed Mercedes-Benz “at the appropriate time,” the company said, and aim to be the “world’s preeminent luxury car business, committed to leading in electric drive and car software,” it said. Daimler Truck “will accelerate its path towards zero emissions as the world’s largest truck and bus producer and technology leader,” Daimler said. The company’s board will start preparing for listing Daimler Truck on the Frankfurt stock exchange, with the intention that “a significant majority stake in Daimler Truck will be distributed to Daimler shareholders,” it said. The two sides of the business “will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,” said Ola Källenius, chairman of the Board of Management of Daimler and Mercedes-Benz, in a statement. Daimler stock rose 7% after the news. Analysts at RBC Capital said later Wednesday they “applaud” the decision to list a majority stake in Daimler Trucks as “this is key in getting a proper valuation.” Future financial disclosures by Daimler Trucks could include region-specific detail, which Wall Street would welcome, the analysts said.

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Companies are giving up on the United States and betting big on China

Direct investment in the US by foreign companies plummeted 49% to $134 billion last year, according to a report released Sunday by the United Nations Conference on Trade and Development. By contrast, foreign direct investment in China grew by 4% to $163 billion in 2020.

2020 marked the first year in history that foreign direct investment in China overtook that of the US, according to the UN. China is now the world’s largest recipient of foreign companies’ investments.

Although Covid-19 was a large factor in foreign direct investment tumbling in the US — and most places around the world — the drop-off in foreign companies’ American investments began well before the pandemic.

After hitting a high of $440 billion in 2015, according to the US Commerce Department, foreign investment in the US has been on a sharp downward slide. Former President Donald Trump’s go-it-alone trade policies hurt foreign investment — particularly from China, which represented the sharpest drop in US investment over the past several years. Growing economic uncertainty around the globe also contributed to the decline.

Last year, decline in foreign direct investment into the US was most prominent in wholesale trade, financial services and manufacturing, the report said. International mergers and acquisitions, as well as sales of US assets to foreign investors, fell by 41%.

Meanwhile, China’s explosive economic growth — and quick recovery from the pandemic — helped foreign investment there soar. China’s economy grew 2.3% last year, when most of the world’s major economies shrank. The country enforced stringent lockdown and population tracking policies intended to contain the virus, and set aside hundreds of billions of dollars for major infrastructure projects to fuel economic growth.
China’s ability to control the spread of the virus “helped stabilize investment after the early lockdown,” the report noted.
Foreign direct investment to India has similarly skyrocketed, from less than $25 billion in 2014 — before Prime Minister Narendra Modi took power — to $57 billion last year, according to the UN report. Much of that growth was brought about by policies that enabled global brands like Ikea and Uniqlo to open up stores, as well as Modi’s signature “Make in India” campaign to grow the country’s manufacturing base.

That helped India’s foreign direct investment soar 13% last year.

Most economies weren’t so lucky. Foreign direct investment in the United Kingdom and Italy fell by almost 100%. Russia’s foreign direct investment fell 96%, Germany’s sank 61% and Brazil’s plunged by 50%. Australia, France, Canada and Indonesia — all among the top foreign direct investment recipients in 2019 — also fell by double digits.

Overall, foreign direct investment tumbled 42% last year to the lowest level since the 1990s — and 30% below the lowest level reached during the 2008-2009 global financial crisis.

The attractiveness of the US as a safe and robust place for foreign companies to invest has been one of the more powerful driving forces behind America’s economic growth over the past several decades. But the UN said the circumstances stopping the flow of foreign direct investment to the US and other countries will remain in place this year.

“The effects of the pandemic on investment will linger,” James Zhan, director of UNCTAD’s investment division, said in a statement. “Investors are likely to remain cautious in committing capital to new overseas productive assets.”

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