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The News

Wednesday, November 6, 2024

Tesla Shares Hit Record—Soaring 12%—And Elon Musk Becomes $15 Billion Richer With Trump Victory

November 06, 2024 0

 Tesla’s shares rose to over $280 as of around 10:10 a.m. EST, pacing what would be a new record for the stock, eclipsing a previous high of $273.54 set on Oct. 27.



Trump praised Tesla’s chief executive as a “super genius” and a “new star” during his victory speech early Wednesday, after Musk spent weeks campaigning for Trump throughout Pennsylvania before Election Day.

Wedbush Securities analyst Dan Ives wrote earlier this year a second Trump presidency would be an “overall negative for the EV industry,” though the financial services firm also viewed it as a “huge positive for Tesla” because the company has the “scale and scope that is unmatched” in the industry.

Trump’s plan to implement tariffs on Chinese imports would also deter Tesla’s Chinese competitors BYD—which Ives noted overtook Tesla as the world’s largest EV maker at the time—and NIO from “flooding the U.S. market over the coming years,” Ives said.

Musk was among the more prominent supporters of Trump during his election campaign. The Tesla CEO poured at least $118 million into his America PAC to help support Trump, meaning Musk was Trump’s second largest backer behind Timothy Mellon. Musk’s America PAC also awarded $1 million to voters in swing states through a giveaway that was briefly paused by a Philadelphia court. In September, Trump said he would create a “government efficiency commission” first proposed by Musk, who has indicated he would lead the agency. During the election cycle, Musk appeared alongside Trump at multiple rallies and supported his campaign on social media. Trump has said he was a “big fan” of electric vehicles, though he said at an earlier rally to not “bother with the electric” and claimed in a March interview that the vehicles “cost too much” and all will “be made in China.”

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Trump victory to reverberate through global economy

November 06, 2024 0

 Donald Trump’s victory in the race to become the next U.S. president will have economic consequences for the rest of the world that are likely to be deep and quite immediate.



If Trump enacts just a fraction of his pledges – from higher trade tariffs to deregulation, more oil drilling and more demands on America’s NATO partners – the strain on government finances, inflation, economic growth and interest rates will be felt in every corner of the world.

Trump recaptured the White House on Wednesday by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected.

His Republican Party also secured the Senate and may even win the House of Representatives, which would make it easier for the president to legislate his proposals and push through key appointments.

“Trump’s fiscal pledges are seriously troublesome – for the U.S. economy and for global financial markets – as they promise to vastly expand an already excessive deficit at the same time as he threatens to undermine key institutions,” Erik Nielsen, UniCredit’s Group Chief Economics Advisor, said.

“One must conclude that Trump poses a serious – and so far vastly under-appreciated – threat to the U.S. Treasury market and thereby to global financial stability,” Nielsen said.

Import duties, including a 10 per cent universal tariff on imports from all foreign countries and a 60 per cent tariff on imports from China, are a key plank of Trump’s policies and likely to have the biggest global impact.

Tariffs inhibit global trade, lower growth for exporters, and weigh on public finances for all parties involved. They are likely to raise inflation in the United States, forcing the U.S. Federal Reserve to act with tighter monetary policy.

The International Monetary Fund has already characterized global growth as weak, with most nations producing “feeble” expansion. A further hit to global trade is likely to present a downside risk to its 3.2 per cent GDP growth projection for next year.

Firms mostly pass import costs onto the customer, so tariffs are likely to be inflationary for U.S. buyers, forcing the Fed to keep interest rates high for longer or to even reverse course and hike borrowing costs once again.

This will be even more likely if Trump keeps his spending and tax pledges, which could increase the U.S. debt by $7.75 trillion through 2035, according to the non-partisan Committee for a Responsible Federal Budget.

“Most damage would be done under a universal import tariff,” ABN Amro’s Rogier Quaedvlieg said. “If the ultimate implementation is non-universal, the hit to the global economy would be significantly weaker.

“The full Trump package, including a universal package, would likely hit the global economy hard.”

For emerging markets relying on dollar funding, such a policy mix will make borrowing more expensive, dealing a double blow on top of the lost exports.

The same forces that could push up U.S. inflation could weigh on prices elsewhere, especially if Trump slaps oversized duties on China as he has promised.

As the world’s largest exporter, China is desperate to resurrect growth, so it may seek new markets for goods squeezed out of the U.S. and dump products elsewhere, especially Europe.

Central banks are likely to react quickly as business sentiment, especially for trade-reliant open economies, will deteriorate quickly.

“Even before a fall in the surveys, the ECB could be tempted to accelerate its rate cuts to a 2 per cent neutral rate and, once the U.S. tariff policies become clearer, it would be reasonable to cut rates to below neutral,” JP Morgan’s Greg Fuzesi said.

Governments are also likely to retaliate against any U.S. import duty, inhibiting trade further and cutting deeper into global growth.

High Fed rates and lower borrowing costs elsewhere would also boost the dollar - as evidenced by the 1.5 per cent drop in the value of the euro and the yen overnight - dealing even more pain to emerging markets since over 60 per cent of international debt is denominated in dollars.

Mexico could be the hardest hit given Trump’s rhetoric on closing the border, which comes against an already deteriorating domestic outlook.

“Mexico is most at risk,” TS Lombard’s Jon Harrison said as the Mexican peso fell 3 per cent against the dollar.

Mexico is especially vulnerable because trade tensions and threats of deportations could exacerbate domestic problems like cartel activity and the government’s failure to curb violence, Harrison added.

Among potential winners, Brazil might enjoy greater trade with China given that Beijing replaced all its U.S. soybean imports with Brazilian ones when trade tensions flared during Trump’s first presidency.

But Europe could also suffer the added blow of increased defence costs if Trump reduces support for NATO.

The continent has relied on a U.S. military presence since the end of World War Two and with no end in sight to Russia’s war in Ukraine, Europe will be forced to fill any gap left by a U.S. retreat.

But government debt in Europe is already close to 90 per cent of GDP, so finances are stretched and governments will struggle to stimulate an economy suffering from trade barriers while funding military spending at the same time.

Trump’s deregulation efforts are likely to play out over a longer period but internationally-agreed proposals aimed at making banks more resilient, commonly known as Basel III, could be a first casualty.

The new rules are set to apply from Jan. 1 and policymakers are already debating whether they should go ahead even if the U.S. pulls out.

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Trump’s Biggest Advocates—Joe Rogan, Bill Ackman, Dave Portnoy—Celebrate Election Win

November 06, 2024 0

 Elon Musk, who was praised by Trump in his election speech, wrote “game, set and match” late on Tuesday and later posted—in addition to several other pro-Trump messages—an image of himself speaking with Trump at an election night party.



Fellow tech billionaire Palmer Luckey, the founder of Oculus VR, said “GG,” an acronym for good game, in a similar post, to which Musk responded “yup.”

Joe Rogan, host of the most listened-to podcast in the U.S., responded to Fox News declaring Trump’s victory before the Associated Press called the election: “WHOLE. LEE. S—.”

In a lengthy post on X, billionaire Bill Ackman said the election result was “as I expected” and criticized the Democratic party as “fundamentally undemocratic.

Barstool Sports founder Dave Portnoy said Trump “won for fun,” claiming Democrats gave voters like himself “no choice” to vote and support Trump.

Actor Zachary Levi wrote he was “incredibly proud” of everyone who voted for Trump, adding to other celebratory messages from InfoWars host Alex JonesRosanne Barr and Jake Paul, who said, “truth won in this election.”

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Tuesday, November 5, 2024

The New York Times is wheeling out its Needle election predictor

November 05, 2024 0

 A November surprise in the arcane art of decision desk election calls arrived Tuesday morning as The New York Times wrote that the Needle is back — but only if the tech support behind it works.



The predictive tool, widely ridiculed after flopping back and forth in the 2016 presidential race and underestimating Donald Trump’s chances, never really went away. After some refinements, it accurately called a volatile Senate race in Alabama in 2017 and has been deployed in primaries and general elections since.

The key distinction from other election winner-loser calls is that the Needle offers real-time probability estimates well before a definitive result is available. The two main election data services — AP VoteCast and Edison Research — wait until they are virtually certain who won, in this contentious year more than ever.

Associated Press executive editor Julie Pace told me in an interview several months ago that the massive VoteCast operation absolutely will not speculate on a winner until that certainty threshold is met. (Clients may choose to give their own commentators more leeway.)

Both the Times story Tuesday morning and an X thread at noontime by chief political analyst Nate Cohn offered a qualifier. With Times Tech Guild staffers on strike, it could prove hard to impossible to correct glitches. Worst case, a live version of the Needle will not be published.

“If we are not able to stream the Needle’s results live, our journalists plan to run its statistical model periodically, examine its output and publish updates in our live blog about what they see — giving our readers a sense of where the race actually stands over the course of the night,” the Times wrote in an explainer.

Cohn addressed the probabilities in his post: “I do not know whether we will be able to publish the Needle. There are good reasons to bet against it, though perhaps there are scenarios where things are running super smoothly; alternately, we hit bugs at the start, and there’s no chance.”

Access to the Needle and other coverage will be free, at least at first.

In the aftermath of the 2016 setback, the Times said the Needle was not wrong, just misunderstood. A confusion then, which Tuesday’s story addresses, is that if the Needle is showing a 75% chance a candidate will win, that also means there is a one in four chance she will lose.

Not a complicated concept if explained. My guess is that it is all the more understandable in 2024 as legalized sports betting has taken off. A popular feature of sports wagering is to allow bets as a game is in progress and the odds change.

Even news consumers who are not gamblers may find the Needle a good source to watch, assuming it overcomes tech challenges and gets airborne. It’s a supplement to what you will be seeing on the national networks and other papers that are playing by the AP or Edison Research rules.

New York Times spokesman Charlie Stadtlander mildly disputed my odds reference in an email: “It’s not correct to frame it as ‘oddsmaking,’ but rather properly contextualizing the data coming in from returns. … The purpose of the Needle is to put election results in proper context as they come in. Early returns are often very misleading; the first votes counted often differ substantially from those that remain.”

Here are some other notes on upcoming decision calls before the counts kick off:

Transparency: AP’s Pace has told me and other interviewers that the biggest change this cycle is doubling down on transparency — offering more and longer explainers of methodology.

The Washington Post and The Wall Street Journal followed that example in the last week with pieces on how they will be making calls. I learned from the Post that its editors see a particular benefit in VoteCast spotting errors in the torrent of incoming information and quickly correcting them. The Post also invests in an extra dose of data by subscribing to Edison’s product as well as the AP’s.

Independence: A complication of the system is that editors form a middle layer between the data providers and those announcing decision calls on air or on websites. So an AP client (Fox News in 2020 was an example) might choose to make a call earlier or later than AP itself.

The vendors and some of the network data desks work in isolation from the rest of election night reporting, sometimes literally in a closed-off room. Many commentators on a left- or right-leaning network can be counted to spin incoming results in favor of their side. The decision operations can steer clear of that. Hence the Arizona drama in 2020 where Fox News called the state for Biden well before left-leaning or middle-of-the-road outlets did.

AP Unfiltered: AP is the most frequent source for calls, in statewide and local races as well as the presidency, and is typically credited. An alternative for those who want to see just what AP is saying at the moment is to go directly to the wire service’s own site, apnews.com.

A different Decision Desk: There is an alternative to the big two providers, descriptively called Decision Desk HQ. It is an established but smaller firm boasting an eclectic client base including The Economist, The 19th and newish NewsNation network. Decision Desk can offer one more view of the state of play for channel-hoppers.

Number nerds like me who want more detail on the process may want to check out some of these links early in the evening before the cascade of updated state-by-state totals takes the stage and makes all the noise.

Poynter media business reporter Angela Fu and Poynter contributor Nicole Slaughter Graham contributed to this report.

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No more fluoride in the water? RFK Jr. wants that and Trump says it 'sounds OK

November 05, 2024 0

 It’s been considered one of the greatest public health achievements of the 20th century: by putting a small amount of fluoride in the water supply, public health officials have prevented millions of cavities, saved tens of billions of dollars in dental costs, and made children healthier.



But in a post on X on Saturday, former presidential candidate Robert F. Kennedy Jr. said one of his first acts as an official in a new Trump administration would be to “advise all U.S. water systems to remove fluoride from public water.” He went on to list several false statements about the effects of fluoride and then linked to a video on a website founded by prominent anti-vaccine advocate and conspiracy theorist Del Bigtree.

Former President Donald Trump appeared receptive to the idea of nixing fluoride from the water supply. “Well, I haven’t talked to him about it yet, but it sounds OK to me,” Trump said Sunday in a telephone interview with NBC. “You know, it’s possible.”

Experts were swift to condemn the promise to remove fluoride from the water. “Fluoride has been well tested. It clearly and definitively decreases cavities, and is not associated with any clear evidence of the chronic diseases mentioned in that tweet,” says Dr. Paul Offit, a researcher and physician at Children’s Hospital of Philadelphia.

Robert F. Kennedy Jr. is a science denialist. He makes up his own scientific truths and ignores the actual truths,” Offit says.

Fluoride has clear benefits

The science is unambiguous — adding fluoride to the water supply has been effective in lowering the number of cavities in both children and adults. Fluoride works to restore minerals to teeth that are lost when bacteria grow rapidly inside the mouth, particularly after consuming sugary snacks.

More than a dozen recent studies from governments and academic institutions around the world have found that fluoride reduces tooth decay in children and adults by around 25%, according to the American Dental Association. It is particularly beneficial for those in lower-income families who may not have access to fluoride products, such as toothpastes and mouth rinses. A study by the Colorado School of Public Health found that adding fluoride to the water saved roughly $6.8 billion in dental expenses in one year alone.

In recent years, some studies have suggested that high levels of fluoride might cause lower IQ in children. A recent government review found moderate evidence for the effect, but not at the levels currently used in U.S. drinking water. The ADA says that the benefits of fluoridation continue to outweigh any possible risks.

Stark contrasts

Dr. Amanda Stroud is a dentist who sees the effects of fluoride — and its absence — every day in her job working as dental director at a health nonprofit in western North Carolina. AppHealth serves kids who have fluoridated city water and others who have well water that has no fluoride. The differences are stark, she says.

The children who are drinking water that has fluoride, she says, often have a good, solid set of teeth without cavities. They can take smiling and eating without pain for granted, “which is a joyful thing at that age,” Stroud says.

When children are drinking well water, it’s a different story. “They could possibly have decay on every tooth,” she says. “When they smile, they could possibly have teeth broken down to the gum line. Their teeth are appearing brown or mottled.”

And that is a painful condition that makes brushing and eating healthy foods like fruits and vegetables more difficult. “It's heartbreaking,” she says.

The original public health conspiracy theory

Despite the clear benefits, conspiracy theories around fluoride have existed for almost as long as the water has been fluorinated, according to Matthew Dallek, a political historian at the George Washington University.

“In a way the conspiracy theory about fluoride in the drinking water is one of the original public health conspiracy theories,” he says.

Fluoride was first introduced in 1945 in Grand Rapids, Michigan, which also happens to be the Trump campaign's last rally site before Election Day.

Putting fluoride in water quickly spread around the country once the benefits were clear in Grand Rapids.

But right from the start, wild theories about the chemical were circulating. “It served as an almost perfect conspiracy theory,” he explains. Fluoride was unseen, mandated by the government, and present in tap water, a substance that pretty much everyone was ingesting.

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Bernard Marcus, cofounder of The Home Depot and billionaire Republican megadonor, has died

November 05, 2024 0

 


Bernard “Bernie” Marcus, the billionaire Home Depot cofounder and a Republican megadonor, who in recent years became an outspoken supporter of former President Donald Trump, has died, the company announced Tuesday. He was 95.

“The entire Home Depot family is deeply saddened by the death of our cofounder Bernie Marcus,” The Home Depot said in a statement. “We owe an immeasurable debt of gratitude to Bernie.”

Marcus, who had a net worth of about $7.4 billion, according to Bloomberg’s Billionaire Index, gained his fortune from establishing The Home Depot with Arthur Blank in 1978. The duo grew the orange-clad hardware store into a retail behemoth that now has 2,300 stores and a stock market valuation of nearly $400 billion.

Born in 1929 in Newark, New Jersey, to Russian Jewish immigrants, Marcus was the youngest of four siblings. He earned his degree in merchandising and marketing at Rutgers University and went into the retailing industry working for various chains.

He met Blank when they worked at Handy Dan Home Improvement, a chain in California. They both were fired after new management came in, so the duo hatched a plan to start a new chain that was bigger than traditional hardware stores with better-trained staff. Then, the Home Depot was born.

Marcus was Home Depot’s CEO until 1997 and served as the company’s chairman until his retirement in 2002.

The Home Depot got its start in Atlanta, a city where Marcus was a well-known philanthropist with his wife Billi. The pair started the Marcus Autism Center at Emory University, which helps kids with developmental disabilities.

Marcus has also donated to several charities, Jewish and medical organizations, in addition to a $250 million grant that helped opened the famous Georgia Aquarium in 2005.

“He was a master merchant and a retail visionary. But even more importantly, he valued our associates, customers and communities above all,” the company said. “He’s left us with an invaluable legacy and the backbone of our company: our values.”

An outspoken Republican, Marcus has donated millions of dollars to the campaigns of right-wing politicians, including the late John McCain, current Florida governor Ron DeSantis and Trump.

Later in his life, he frequently made appearances on right-wing television shows on Fox News and Fox Business, often talking about his support of Trump’s presidential aspirations. Some Trump opponents attempted to launch a boycott of The Home Depot in 2016 and in 2019 because of Marcus’ support of the Republican nominee for president.

Marcus also said in 2022 in an interview with the Financial Times that he was “worried about capitalism” and that because of what he called the spread of “socialism” in America, “nobody works. Nobody gives a damn. ‘Just give it to me. Send me money. I don’t want to work — I’m too lazy, I’m too fat, I’m too stupid.’”

“We used to have free speech here. We don’t have it,” Marcus told the newspaper. “The woke people have taken over the world. You know, I imagine today they can’t attack me. I’m 93. Who gives a crap about Bernie Marcus?”

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Lions trade for Browns’ Za’Darius Smith, Bengals trade for Khalil Herbert

November 05, 2024 0

 

NFL trade grades: Breaking down biggest moves at the deadline

NFL trade grades: Breaking down biggest moves at the deadline

(Getty Images)

The NFL hot stove has been burning for weeks now. Davante Adams, DeAndre Hopkins and Amari Cooper headline the marquee names that have already been dealt, and there’s sure to be more trade action on the way.

We’ll keep you up to date on all of the wheeling and dealing around the league with trade grades for every major move made between now and Tuesday’s 4 p.m. ET deadline.

    Za'Darius Smith makes most sense for Lions

    Za'Darius Smith makes most sense for Lions

    (Getty Images)

    In many ways, Za'Darius Smith was always the target who made the most sense for the Lions. He checks a ton of boxes in terms of what the Lions look for. He can defend the run and set an edge. He entered Sunday 22nd in pressures with 27 and 14th in sacks with five. Smith could be brought back in 2025 as a strong fit opposite of Aidan Hutchinson. And the Lions and Browns aren't strangers -- a deadline deal sent Donovan Peoples-Jones to Detroit a year ago -- so there's a familiarity there between GMs Brad Holmes and Andrew Berry. And with the Browns 2-6 entering Sunday, they're a team that would benefit from selling off pieces.

    In Smith, the Lions are getting a reliable edge rusher who helps account for the loss of Hutchinson. As a Super Bowl contender, the team couldn't afford to stand pat at the deadline after Hutchinson went down. Smith is a blueprint defensive end for defensive coordinator Aaron Glenn. He's consistent and productive -- two things the Lions desperately needed. They now have it.

    The Athletic NFL Staff

    Could Giants' Azeez Ojulari be traded by deadline today?

    The Giants are listening to offers for LB Azeez Ojulari, but want to ensure they get value in return for the pending free agent.

    Giants’ fourth straight loss brings them to familiar time: ‘Tankathon’ season

    GO FURTHER

    Giants’ fourth straight loss brings them to familiar time: ‘Tankathon’ season

    Once the Bears moved Khalil Herbert out of their gameday lineup two games ago, making him a healthy scratch for the first time in his career, this seemed inevitable. Herbert did a nice job throughout his career stepping in at running back when needed, often putting up a high rushing average (4.9 yards for carry).

    He outplayed his sixth-round draft slot and also proved valuable on special teams, but he’s in the last year of his rookie contract and is one of the final players remaining from the Ryan Pace regime. Herbert wasn’t going to be re-signed — the Bears are set with D’Andre Swift and Roschon Johnson. The only worry is depth. If either of those two goes down, it’d be Travis Homer getting carries, and while Homer has the backing of offensive coordinator Shane Waldron, he hasn’t been as effective a runner as Herbert. This is a good opportunity for Herbert, who’s never come close to the playoffs, to play for a contending team.

    Bengals trade for Bears' Khalil Herbert

    Bengals trade for Bears' Khalil Herbert: Source

    (Getty Images)

    The neck injury to Zack Moss on Friday shifted the Bengals into desperation mode to locate a running back. The injury looks to be serious and left starter Chase Brown with essentially zero depth behind him and half a season — plus playoffs, potentially — ahead. They were already thin before Moss' injury and this provides a player capable of filling the role Moss held on passing downs and give a breather to save snaps on Brown.

    "It’s important you can have a guy that can take some of the work load off of him, whether that’s a couple carries or that’s some other snaps in other areas," Zac Taylor said on Monday.

    The 7.4 yards per reception and one sack allowed in 96 pass-block reps (via, PFF) for his career are surely major pieces of the puzzle for the pass-heavy Bengals offense. Khalil Herbert will immediately slip to second on the depth chart in front of Trayveon Williams and Kendall Milton, recently signed off the practice squad.

    Read more here.

    Bengals trade for Bears’ Khalil Herbert: Why Chicago’s moving on from RB

    GO FURTHER

    Bengals trade for Bears’ Khalil Herbert: Why Chicago’s moving on from RB

    The Cincinnati Bengals trade with the Bears to get running back Khalil Herbert, and I was told they’re not done. Cincinnati continues to look around the league for an addition on defense.

    Eagles midseason predictions: Saquon Barkley will break at least two single-season team records

    This prediction isn’t leaning on an arbitrary number. In a way, it’s almost conservative. Barkley’s already on pace to break LeSean McCoy’s single-season records in 2013 for rushing yards (1,607) and scrimmage yards (2,146). No other player than Barkley in team history has more rushing yards (925) or scrimmage yards (1,071) through eight games. His production has been efficient. His 5.9 yards per carry is the highest among Eagles since 2000, per TruMedia (min. 100 attempts). So, Barkley won’t be required to surpass Ricky Watters’ 404 total touches in 1996.

    Barkley is at the center of every Eagles game plan. This ensures, at the very least, that Barkley will have the opportunity to break those yardage records. His consistent excellence also suggests others are within reach. He’ll tie Steve Van Buren (1948) if he rushes for 100 yards in a fourth-straight game against the Dallas Cowboys on Sunday. Barkley is the first since McCoy to record five 100-yard games within the first eight games. He’ll surpass Wilbert Montgomery (1981) if he reaches nine.

    The remaining schedule is favorable. They’ll twice play the NFL’s two worst defenses in terms of EPA per rush: the Cowboys (32nd) and Washington Commanders (31st). The Los Angeles Rams (20th), Carolina Panthers (27th) and New York Giants (25th) have also been dreadful defending the run.

    Single-game records could be toppled. Barkley, who’s rushed for 147, 159 and 176 yards in separate games this season, will need 218 yards to surpass McCoy’s obliteration of the Detroit Lions in 2013. Barkley has also twice rushed for two touchdowns. Perhaps if the Brotherly Shove’s issues from Sunday persist, he’ll exceed the several players, including Jalen Hurts, who share the single-game record with three rushing touchdowns.

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