May 20, 2024

Archives for July 2020

Ashley Judd Can Sue Harvey Weinstein for Sexual Harassment, Court Rules

“We are glad that both Ms. Judd and Mr. Weinstein will have their day in court, where we expect the truth will come to light,” she said. “The most minimal investigation of the events will show that Mr. Weinstein neither defamed Ms. Judd, nor hindered or interfered with her career, and certainly never retaliated against her and indeed, had nothing to retaliate for.”

Ms. Kupferstein said that Mr. Weinstein “fought” for Ms. Judd as his first choice for the lead role in the 1997 film “Good Will Hunting” and arranged for her to fly to New York to be considered for the part. She did not get it.

Mr. Weinstein was sentenced to 23 years in prison in March after he was convicted of rape and criminal sexual assault in a separate criminal case in Manhattan.

Ms. Judd contends that Mr. Weinstein invited her to the Peninsula Hotel in Beverly Hills in late 1996 or early 1997 to discuss movie roles, but instead of meeting in a public place, Mr. Weinstein summoned her to his room. According to the lawsuit, Mr. Weinstein, who was wearing a bathrobe, asked Ms. Judd for a massage and to watch him take a shower.

After Ms. Judd declined, she contends, she was passed over for major roles, including being cast in the “Lord of the Rings” films, which made $2.5 billion in ticket sales and earned 30 Oscar nominations.

Ms. Judd filed the lawsuit after the director and producer Peter Jackson came forward and said that he removed Ms. Judd from a “Lord of the Rings” casting list “as a direct result” of what he now thought was “false information” provided by Mr. Weinstein.

Ms. Judd’s lawsuit contends that Mr. Weinstein told Mr. Jackson and a producer that Mr. Weinstein had a “bad experience” with Ms. Judd and that she was “a nightmare to work with.”

Article source: https://www.nytimes.com/2020/07/29/business/media/judd-weinstein-lawsuit-appeal.html

Federal Reserve Leaves Rates Near Zero as Economic Recovery Sputters

Mr. Powell acknowledged the unequal brunt of the pandemic on Wednesday, and said that what the Fed can do is focus on fostering a strong labor market.

“What we’re trying to do is create an environment, in the financial markets and in the economy, where those people have the best chance they can have to go back to work to their old job or to a new job,” Mr. Powell said.

While Fed officials’ June economic projections suggested that they expected unemployment to fall below 10 percent by the end of the year, based on the central forecast, policymakers made it clear that conditions were extremely uncertain. The recent surge in infections could temper the more optimistic takes.

The central bank’s policies do seem to be offering support, at least around the edges. House buying has ticked up, fueled by cheap mortgage rates, and the U.S. homeownership rate is now at levels last seen before the 2008 financial crisis.

Key credit markets have calmed down after a disorderly March and April, as has the market for U.S. government debt.

While investors expect the Fed to eventually make a more concrete commitment to maintaining low rates for months or years — by pegging them to the unemployment or inflation rate, or by pledging to keep rates low until a calendar date — Mr. Powell said on Wednesday that conversations about such approaches would continue at future meetings.

He also said the Federal Open Market Committee’s longer-run framework review, which could guide the central bank’s strategies, would be completed in the near future. Some economists took that news to mean that more action is coming at the Fed’s Sept. 15-16 meeting.

“The July F.O.M.C. meeting was expected to be a placeholder event until more important decisions are made at the next meeting in September,” Michael Feroli, the chief U.S. economist at J.P. Morgan, said in a note. “The committee met those expectations.”

Article source: https://www.nytimes.com/2020/07/29/business/economy/federal-reserve-meeting-interest-rates.html

As $600 Unemployment Benefit Expires, Many Are in Jeopardy

They also have some savings — a comfort when more than 40 percent of American households lack cash to cover an unexpected $400 expense. That cushion was crucial last week when the Gards’ air-conditioning system suddenly died. The repair gobbled up what would have been a few months’ worth of mortgage payments.

Delaying wasn’t an option, Ms. Gard explained: “Georgia in August.”

Without further information on when she might be rehired, Ms. Gard has started updating her résumé, and reaching out to recruiters and contacts on LinkedIn.

Then her school district announced that all teaching would be online in the fall. Her mother, 71, used to pitch in to care for her children, 2 and 5, but Ms. Gard worries about the health risk, so child care is another issue.

“I have the month of August to figure out where September’s mortgage payment and everything else will come from,” she said.

As the economy falters, pain is everywhere. Assistance, though, is more uneven.

Normally, individual states run their own unemployment programs, setting different benefit levels and eligibility rules. On average, benefits replace about 45 percent of a worker’s weekly paycheck. Freelance, self-employed and part-time workers, who didn’t qualify for state benefits but received funds through the federal Pandemic Unemployment Assistance program, tended to get a much smaller fraction of their previous earnings.

That is where the extra $600 a week came in. It was meant to make up for lost income and ensure recipients had enough money to buy food, pay rent, keep the lights on, afford medical prescriptions or make car payments. Lawmakers settled on a lump sum as the quickest and easiest way to deliver assistance — given the limited capabilities of already overwhelmed state unemployment networks.

The money was crucial in supplying the economy with fuel to keep the engine going, economists say. Like any one-size-fits-all measure, however, the $600 supplement fell outside the target zone in many instances. Roughly two-thirds of workers ended up with more income than they would have earned had they not lost their jobs. The windfalls angered critics who warned of ballooning government expenditures and disincentives to work — despite a severe shortage of available jobs.

Article source: https://www.nytimes.com/2020/07/29/business/economy/unemployment-benefits-coronavirus.html

Amazon, Apple, Facebook and Google Prepare for Their ‘Big Tobacco Moment’

The length of the hearing may also be prolonged since the antitrust issues facing Apple, Facebook, Google and Amazon are complex and vastly different.

Amazon is accused of abusing its role as both a retailer and a platform hosting third-party sellers on its marketplace. Apple has been accused of unfairly using its clout over its App Store to block rivals and to force apps to pay high commissions. Rivals have said Facebook has a monopoly in social networking. Alphabet, the parent company of Google, is dealing with multiple antitrust allegations because of Google’s dominance in online advertising, search and smartphone software.

Democrats may also veer off the topic of antitrust and bring up concerns about misinformation on social media. Some Republicans are expected to sidetrack discussion with their concerns of liberal bias at the Silicon Valley companies and accusations that conservative voices are censored.

“There was an attitude these were great American companies that created jobs and that we should have a hands-off approach and let them flourish,” Mr. Cicilline said in an interview. “But there are a lot of serious issues we have uncovered over the course of the investigation that weren’t apparent when we first began investigating.”

Facebook, Amazon, Google and Apple declined to comment.

For the chief executives, the hearing will be a test of how they perform under fire. Mr. Bezos, 56, has not previously testified to Congress, while Mr. Cook, 59, and Mr. Pichai, 48, have both testified once before. Mr. Zuckerberg, 36, the youngest of the group, has the distinction of being the veteran: He has answered questions at three congressional hearings in the past two years as Facebook has dealt with issues such as election interference and privacy violations.

But none are taking any chances for the event to go awry. Mr. Zuckerberg, who had been at his 750-acre estate on the Hawaiian island of Kauai, has been preparing for his testimony with the law firm WilmerHale, according to people with knowledge of the matter. And a small team is working with Mr. Bezos for his testimony in Seattle, said people with knowledge of the matter.

For weeks, the tech giants have also waged a lobbying battle to soften any blows. All four chief executives planned to call lawmakers on the House subcommittee in the days before the hearing, said three people with knowledge of the preparations who were not authorized to speak publicly.

Article source: https://www.nytimes.com/2020/07/28/technology/amazon-apple-facebook-google-antitrust-hearing.html

Bezos, Zuckerberg & Musk added $115 BILLION to their fortunes during pandemic

The collective wealth of tech billionaires in Bloomberg’s index (a ranking of the world’s 500 richest people) has nearly doubled since 2016, from $751 billion to $1.4 trillion today. That is a faster rate than in every other sector.

Seven of the world’s 10 richest people are from the technology sector, with a combined net worth of $666 billion, up $147 billion this year. Of the top 10, only non-tech billionaires have lost money this year – luxury mogul Bernard Arnault and Berkshire Hathaway’s Warren Buffett.

Also on rt.com ‘Amazon wouldn’t be nearly as large’ if US was a real economy – Peter Schiff responds to Elon Musk’s call to break up monopolies

Big winners so far include Elon Musk, whose net worth has more than doubled to $69.7 billion on the back of surging Tesla shares. The world’s richest man, Amazon’s founder Jeff Bezos, got richer by $63.6 billion, with his fortune having exceeded $200 billion. Another chief executive officer, Mark Zuckerberg of Facebook, enjoyed a net-worth surge of $9.1 billion.

“We moved the brick-and-mortar economy to an online economy dramatically,” a finance professor at the University of Chicago Booth School of Business, Luigi Zingales, told Bloomberg.

“Probably the same thing would have happened in a longer period of time. Now it’s happening in weeks instead of years,” he said.

Also on rt.com Bezos, beware! Elon Musk is now the FIFTH-RICHEST person on the planet

Statistics show that five of the largest American tech companies (Apple, Amazon, Alphabet, Facebook, and Microsoft) have market valuations equivalent to about 30 percent of US gross domestic product. That’s almost double what these were at the end of 2018.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/496515-billionaires-wealth-growth-pandemic/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

How to Fight Against Big Tech’s Power

Mr. Heider pointed to a few examples: Instead of Google Chrome, people can download great browsers, including DuckDuckGo, Brave and Opera, which focus on stronger privacy and security protections. Instead of Facebook, we can tell our friends to hang out with us on social media apps like Vero and Mastodon, which are both ad-free, he said.

The same goes for Amazon. Instead of ordering paper towels and hand sanitizer on Amazon, consider picking up those items at a local store. Instead of ordering a new dog collar on Amazon, consider buying a custom-made one from an independent merchant on Etsy.

Mr. Fried says he rarely shops on Amazon, takes cabs instead of Ubers and finds books via IndieBound, a resource for buying titles from local bookstores. “When the default is just Amazon, Amazon, Amazon, you’re just feeding the flame,” he said.

Speaking of alternatives, there’s a different way to buy tech hardware altogether: Purchase gadgets used or refurbished.

When you buy a new phone or computer, your dollars go directly to the tech giants who created the products. But when you buy used, you are supporting a broader community of small businesses that repair and resell equipment.

Many of us generally shy away from used electronics because we fear the products may be in shoddy condition. The reality is that resellers work with technicians who restore products to their former glory before putting them up on sale — and the gadgets are often backed by a warranty. Reputable vendors of used goods include GameStop and Gazelle.

Buying used also contributes to a broader mission: the so-called right to repair movement.

Unlike car mechanics, small electronics repair shops have limited access to the parts and instructions that they need to service our smartphones, tablets and computers. Public advocacy groups and the repair community have pushed to pass legislation that would require electronics manufacturers to share all of the components and information needed to fix our gadgets.

Article source: https://www.nytimes.com/2020/07/29/technology/personaltech/big-tech-power-how-to-fight.html

Tech C.E.O.s Are Testifying Before Congress Today. Here’s What to Know.

Mr. Zuckerberg is likely to point to TikTok, a Chinese-backed video app, as a sign that competition in social networking is thriving.

TikTok, which only became popular in the past few years, remains Facebook’s best evidence that it does not have a stranglehold on innovation and new products. Citing TikTok also gives Facebook political points amid a geopolitical battle between the Trump administration and China.

Even so, Facebook is the undisputed king of social networking. About 2.99 billion people around the world use one or more of its family of apps, including Messenger, WhatsApp and Instagram, each month. That dwarfs TikTok’s 800 million monthly worldwide users.

Tencent’s WeChat, which is huge in China, has 1.2 billion monthly active users. Other social networks are much smaller. Twitter has 186 million daily users, while Snap, the maker of Snapchat — which Facebook previously tried to buy — has 238 million.

Mr. Zuckerberg will most likely point to the vast digital ads marketplace to argue that Facebook has no advertising monopoly.

Google, with about 29.4 percent market share of digital advertising in the United States, is Facebook’s best argument to defend against accusations of cornering the market. The social network also has noted that Twitter, Pinterest, Snap, YouTube, Amazon and Apple are vying for the same ad dollars.

Facebook has also said there should be no distinguishing between digital and traditional outlets competing for ad dollars. If Facebook is tussling with television, radio and print outlets to court advertiser spending, then its piece of the overall pie looks smaller.

Yet there is no question Facebook is a large presence in digital advertising. The company is expected to haul in more than $73.8 billion in ad revenue this year, even with the pandemic, according to estimates from eMarketer. For 2020, its share of U.S. digital advertising is set to be about 23.4 percent, eMarketer said.

Article source: https://www.nytimes.com/2020/07/29/technology/tech-ceos-congress-what-to-know.html

As the Pandemic Forced Layoffs, C.E.O.s Gave Up Little

The price of many stocks fell sharply this spring when the pandemic took hold. But stocks can recover over time, and many have soared since March.

As it became clear that the pandemic was going to devastate the economy and their businesses, many boards and chief executives appeared to sense a need to tell workers and investors that they were sharing in the pain.

United Airlines said the executives’ salary cuts were a recognition of the impact of the pandemic and “to lead by example.” United, which has been hit hard by a plunge in demand for air travel, is expected to start furloughing up to 36,000 workers on Oct. 1. Oscar Munoz, who in May became United’s executive chairman after serving as chief executive, did not get salary from March 10 through June 30, which amounted to a $610,000 pay cut on the $2 million salary he is being paid this year. But the reduction was a little less than 3 percent of the $22.2 million Mr. Munoz took home in 2019.

United’s new chief executive, J. Scott Kirby, will give up around $790,000 of salary this year. That is equivalent to 9 percent of the $8.7 million that CGLytics estimates he received last year. United said that it was “extremely unlikely” that it would make 2020 bonus payments, which it planned to set at 250 percent of salary, to its top executives.

Delta’s chief executive, Ed Bastian, took a salary cut of around $714,000, or 5.35 percent of the total compensation he received in 2019, according to CGLytics. A Delta representative said the decline in Delta’s stock price and difficulties ahead for the airline would weigh heavily on the value of Mr. Bastian’s pay. The spokesman, Trebor Banstetter, said the value of Mr. Bastian’s total compensation this year was likely to be down 58 percent from “pre-pandemic projections,” but he did not provide details of how the company arrived at that figure. Delta is asking its pilots to take pay cuts in order to keep their jobs.

Article source: https://www.nytimes.com/2020/07/29/business/economy/ceo-pay-pandemic-layoffs.html

Zimbabwe seals compensation deal with dispossessed white farmers, two decades after violent land grabs of Mugabe era

President Emmerson Mnangagwa said “This momentous event is historic,” as “it brings closure and a new beginning.”

Vice President Constantino Chiwenga said a committee had been formed by the government, farmers and donors to raise funding for the compensation. The compensation agreement is for improvements and assets on the more than 4,000 farms that were seized. It doesn’t pertain to the land itself, according to Ben Gilpin, a director of the Commercial Farmers Union (CFU), which represents the white farmers.

CFU President Andrew Pascoe said at the signing ceremony on Wednesday that “today marks a huge milestone,” adding: “As Zimbabweans, we have chosen to resolve this long-outstanding issue.”

The agreement comes as the southern African nation’s economy is struggling with falling food production and export income, as well as sanctions from the US and the European Union.

Zimbabwe is battling inflation of more than 700 percent, besides dealing with shortages of currency, fuel and food, while over 90 percent of the population is out of formal employment.

READ MORE: ‘Icon of liberation’ v ‘dictator’: Zimbabwe’s ex-leader Robert Mugabe dies at 95

Food production dropped after the country’s government authorized the purge of white farmers in 1999-2000 under then-president Robert Mugabe. Whites comprised a tiny percentage of Zimbabwe’s population upon independence, but they owned the vast majority of fertile land. In an effort to change the situation, Mugabe’s government promised to redistribute the land among black farmers. 

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However, some have accused Mugabe of using the land reform to reward his allies rather than ordinary Zimbabweans. The president and his supporters reportedly owned about 40 percent of the land seized from white farmers, who received no compensation after being evicted. The country’s rulers maintained that the land was taken forcibly during colonial times and needed to be returned to black residents.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/496527-zimbabwe-compensation-deal-white-farmers/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Fed Extends Emergency Programs on Eve of July Policy Announcement

“They’re facing the fact that the Covid numbers have gone in the wrong way for several weeks,” said William English, a former top staff official at the Fed board who is now at Yale. “It is pretty clear these programs are going to be helpful for several more months.”

Seven of the nine programs were set to expire on or around the end of September, but they have now been extended through the end of the year. Two others — one that buys municipal debt and another that smooths over the market for short-term business funding — already had later end dates.

Providing credit has been one facet of the Fed’s policy response as the coronavirus has closed businesses, cost jobs, and kept millions of Americans in their homes and away from malls, planes and movie theaters. The central bank also cut interest rates to near-zero in March, a bid to shore up lending and spending and cushion the blow to economic activity. It has been buying vast amounts of government-backed debt in an effort to keep bond markets functioning normally.

Officials are now debating what comes next, and economists are expecting some discussion of the possibilities after Wednesday’s meeting.

While officials have made it clear that interest rates will be low for a long time, central bankers must decide how to signal just how patient they plan to be. They could commit to low rates by promising not to raise them until after a given date, or by tying near-zero rates to a certain inflation or unemployment threshold.

Some economists, like Kathy Bostjancic at Oxford Economics, said it was possible that the Fed would commit to an inflation or employment goal at this meeting, but most Wall Street analysts expect policymakers to wait.

Article source: https://www.nytimes.com/2020/07/28/business/economy/coronavirus-federal-reserve-policy.html