Wednesday, October 27, 2021

The modern Republican brainwashing plot is the latest outgrowth of McCarthyism
John Stoehr
October 27, 2021

Former Republican Senator Joe McCarthy, the leader of anti-communist witch hunts in the 1950s (Wikimedia Commons)

Three things need saying. One, that "critical race theory" is becoming the most destructive political boogeyman since Joseph McCarthy fear-mongered about Communists hiding behind every bush and tree.
Two, that this political boogeyman is being used by Republican state lawmakers to achieve what they have wanted — to use the power of the state to censor information and to police thought. We are close to updating the old Cold War pursuit of "un-American activities."

Three, that by censoring information and policing thought, the Republicans can replace knowledge and understanding with lies and propaganda advancing a preferred way of seeing America, to wit: In America, everyone gets a fair shake in life. Social ills like poverty and racism are individual failings, not societal ones. Everything is fine. Nothing to worry about. Except "those people" making trouble.

The desired outcome of such rhetoric, of course, is preempting serious and legit challenges to a social order in which white men are on top.

All of this is happening at the same time. It can be dizzying! But make no mistake. It is a backlash against the political gains made in the wake of George Floyd's murder. The movement against anti-Black white supremacy has been (somewhat) successful. The backlash is proof.

Now, remember. No one is learning critical race theory in K-12. That's what college students study if they choose to. What's being debated is make-believe. (Hence, my quotes around "critical race theory.") So when people like Glenn Youngkin, the GOP candidate for governor in Virginia, say they're going to ban "critical race theory," strictly speaking, that's not possible. "Critical race theory" doesn't exist.

But thanks to the efforts of Republicans and right-wing propagandists, there are now lots of things associated with "critical race theory" that have nothing to with critical race theory, without the quotes, and they pretty much include all discussion of race and racism that might make respectable white people conscious of their race, uncomfortable with heightened awareness of their race and even pained by the knowledge of a social, political and legal establishment that protects them on account of their race while punishing others on account of theirs.

So there's some highly coded rhetoric here. When Youngkin says he's going to ban "critical race theory," the message isn't that he's going to ban ways of thinking about and engaging the world, which is, in fact, what he's proposing, but instead "ban" the discomfort and pain respectable white people and their kids may feel as a consequence of the political gains made by Black activists after George Floyd's murder.

If we're very lucky, respectable white people — that great globular middle of American politics — will see the danger. They will see that, no matter how dangerous "critical race theory" is said to be, that's no reason to ban books and outlaw the utterance of individual words. They will see the Republicans, even at state and local levels, as being people who cheered the former president's attempted coup d'etat.

If we're very unlucky, however, respectable white people — those Americans who view politics through the gauzy lens of respectability between and among white people — will see the GOP as not censoring information and policing thought but instead "banning" Black people from making them feel the pain of being aware of being white. They will see the Republicans, especially at state and local levels, as being not so bad despite cheering the former president's attempted coup.

What to do? First, make it clear the Republicans are lying. No one, and I mean no one, is teaching white children to hate themselves. No one is teaching white children their moral character is determined by their race. No one is teaching white children that one race is superior to another. All of this is a lie that, when repeated often enough, becomes the basis for state laws forbidding such things from being taught. (See legislation passed by the Wisconsin Assembly for a case in point.)

Second, these lies are part of the Big Lie. Donald Trump lies when saying the election was stolen from him. It wasn't. What he means, however, is that people he believes should not have a say in American politics — nonwhite voters — had a say in American politics, and that's wrong. That's "fraud." This Big Lie dovetails with another big lie, which is the belief among authoritarian white people that the United States is being taken from them, being stolen from them. By whom? By those who should not have a say in American politics — nonwhite voters. When they pass laws against "voter fraud," what they mean is passing laws against the "fraud" that is nonwhite Americans having a say.

Third, these lies and the laws these lies are based on are spearheading myriad state and local efforts to do what Republican officials have wanted to do but did not have the chance or justification to do until respectable white people felt first a pang of discomfort on becoming increasingly aware of being white after George Floyd's murder.

Compulsory K-12 public education is the greatest tool the United States has devised for flattening the hierarchies of power that allow the Republicans to maintain an advantage in society. For decades, they endeavored to censor information and police thought among teachers and children for the purpose of keeping white men at the top of the order — for the purpose of replacing knowledge and understanding with lies and propaganda advancing a preferred way of seeing America, to wit: America is the best place in the world. Don't like it? Leave it.

Some even called for banning books and outlawing the utterance of individual words. That seemed extreme before Floyd's murder.

Let's make sure it stays that way.


John Stoehr is a fellow at the Yale Journalism Initiative; a contributing writer for the Washington Monthly; a contributing editor for Religion Dispatches; and senior editor at Alternet. Follow him @johnastoehr.
IT'S BS FIREWALL ALBERTA 2.0  
Vote in Alberta referendum reopens debate over how Canada divvies up wealth among provinces


Nia Williams
Tue, October 26, 2021

CALGARY, Alberta (Reuters) -Voters in Canada's main oil-producing province, Alberta, strongly backed removing a commitment to redistribute wealth among provinces from the Canadian Constitution, results from a nonbinding referendum showed on Tuesday.

The outcome gave Alberta's United Conservative Party government and embattled Premier Jason Kenney a mandate to negotiate with other provinces about an equalization payments formula that is widely viewed as unfair in Alberta.

LESS THAN 50% OF ALBERTANS VOTED IN THE ELECTIONS
Official results showed 61.7% of voters supporting removing the principle of equalization from the constitution
Elections Alberta has not released voter turnout, but local media estimated it was around 39%.


The vote will not automatically halt equalization because the payments are embedded in the constitution and any changes need to be agreed upon with other provinces and territories.

AIN'T GOING TO HAPPEN
Kenney said he would use negotiations over equalization to demand a repeal of "discriminatory" environmental laws
that hurt Alberta's energy sector, the linchpin of the provincial economy.

"What we are saying with these referendum results is we must have a fair deal. If Ottawa and fellow provinces want to benefit from the hard work and the resources of Albertans, then Ottawa must allow us to develop those resources," Kenney told a news conference.

The referendum was a key part of Kenney's "Fight Back" strategy, in which he promised to stand up for Alberta's oil and gas sector. 


Kenney has been criticized for his handling of the COVID-19 pandemic and has faced calls to resign from within his own party.

Equalization payments are enshrined in the constitution as a way of addressing fiscal disparities among the 10 provinces. The program transfers federal tax dollars collected from "donor" provinces like Alberta to those whose ability to raise revenues falls below the national average.

AS WE SHOULD

Alberta was an equalization recipient in the mid-1960s, but buoyed by energy revenues, has since been a donor and currently contributes about C$11 billion to C$12 billion a year.
FROM 1929 TILL 1959 WE WERE A HAVE NOT PROVICE BENEFITING FROM FEDEDRAL PAYMENTS

Prime Minister Justin Trudeau said last week any amendment to the constitution requires significant consensus across the country and criticized the timing of the referendum, which came as Alberta is relying on federal help to tackle a fourth wave of COVID-19.

Trudeau, a Liberal, noted Kenney was part of the federal Conservative Cabinet that negotiated the current equalization formula over a decade ago.

"He himself contributed and approved of the current equalization formula that he's now stirring up sentiment against a few years later," Trudeau told reporters in Ottawa.

(Reporting by Nia Williams; Additional reporting by David Ljunggren in Ottawa; Editing by Marguerita Choy and Peter Cooney)

THIS ARTICLE IS WRITTEN FOR NEWS WIRES AND INTERNATIONAL NEWS SERVICES
CHINA'S 1929 IN SLOMO
Evergrande crisis: a third of China's developers may face pressure with US$84 billion in debt maturing by end of 2022, 
S&P warns

Chad Bray and Pearl Liu chadwick.bray@scmp.com; pearl.liu@scmp.com
Wed, October 27, 2021

A third of China's property developers could see their liquidity "acutely strained" in the worst case scenario as weaker sentiment and new government regulations weigh on their funding sources, with a "real" risk of default as some US$84 billion in debt is set to mature by the end of next year, according to S&P Global Ratings.

The credit rating company said that more than half of its rated portfolio of Chinese property developers are "most at risk" under such a scenario as their bonds are rated as junk, from "B-" to "B+", or two levels below investment grade.

"The entities have also made heavy use of funding via joint ventures and trust loans, given they have been largely shut out of more conventional funding," S&P analysts Matthew Chow and Aeon Liang said in a research note. "New regulations and weak sentiment are squeezing these capital channels.

"The idea that entities may be abruptly deprived of such funding, threatening refinancing plans and potentially triggering defaults, is a large part of our scenario analysis."

Concerns are rising about the high level of debt carried by China's developers as a massive liquidity crisis at China Evergrande Group, the mainland's biggest home builder by sales, has spooked financial markets.

Evergrande, the world's most indebted developer, missed a series of interest payments on its offshore debt in September and October as it strains under more than US$300 billion in total liabilities and faces a difficult combination of government regulations restricting borrowing by overburdened developers and weakening property sales.

The Shenzhen-based developer averted a default last week after it wired a missed payment on a US$2.03 billion bond just ahead of the expiration of a 30-day grace period. Failing to make the payment would have triggered cross-defaults on much of its onshore debt.

However, Evergrande is far from out of the woods as it faces another deadline on Friday to make good on a missed coupon payment from September and a deadline to make three more payments on November 11. The company has US$37 billion in total borrowings that are set to mature by the end of June 2022.

The concerns over Evergrande have been amplified as several smaller developers, including Fantasia Holdings Group, Modern Land (China) and Sinic Holdings Group, have defaulted on their debt in recent weeks.


SCMP Graphics alt=SCMP Graphics

The recent defaults have dampened sentiment in the capital markets, according to Simon Lee, primary analyst with rating company Pengyuan International.

"Property developers are expected to face more refinancing challenges in a tight credit environment," Lee said. "We expect those property developers with lower land bank quality, weaker sales execution capability and higher leverage to face a substantial increase in credit spread as the credit risk and default risk have been escalated."

Several heavily indebted developers will see their debt mature in the coming months.


A view of Evergrande's The Vertex project in Cheung Sha Wan.
Photo: K.Y. Cheng

Henan-based Central China Real Estate, which wrote to the provincial government in early August asking for help, has a bond set to mature on November 8, with US$386 million in remaining principal.

Guangzhou-based Agile Group Holdings, whose 11 bonds have seen their prices slump amid investors concerns over its off-balance debts, has a US$200 million bond set to mature on November 18.

On Wednesday, S&P downgraded another debt-laden Chinese developer, Kaisa Group Holdings, to "CCC+", or three levels below investment grade, saying the its capital structure is "unsustainable given the company's sizeable near-term debt maturities, weakening liquidity, and inadequate free cash flow through 2022".

The exterior of Kaisa Group's Concerto development in Sham Shui Po. Photo: Xiaomei Chen 

Kaisa's offshore bonds have seen wild swings in recent weeks amid speculation about the firm's ability to service its debt. Last week, Chinese Estates Holdings, once Evergrande's second-biggest shareholder, sold high-yield bonds issued by Kaisa at a loss.

Shenzhen-based Kaisa, the first Chinese developer ever to default on its offshore debt six years ago, has a US$400 million bond set to mature in December.

The National Development and Reform Commission (NDRC) summoned several of China's biggest offshore bond issuers for a meeting on Tuesday, promising to ease access to foreign exchange cash to help them meet their obligations.

In its note on Wednesday, S&P said that residential property sales in China could fall by 10 per cent next year amid weaker sentiment, and another 5 to 10 per cent in 2023, setting the stage for a difficult operating environment for the mainland's developers.



An overdue IOU posted by an Evergrande supplier on the social-media platform Weibo.
Photo: Weibo

Another sign of strain is commercial bills, effectively "I owe yous" (IOUs) issued by Evergrande and other developers.

The total amount of outstanding commercial bills by rated developers increased by more than 30 per cent to about 125 billion yuan in 2020 as developers have turned to them amid the tight financing and restrictive regulatory environment, S&P said. The risk to developers is manageable, but suppliers and service providers could stop taking the bills if things worsen, the ratings company said.

"In a more extreme scenario, non-payment risk of developers could cause construction suspension, putting a hard stop to developers' cash flows. Project delivery and revenue booking would deteriorate rapidly, hitting the credit metrics of developers," S&P's Chow and Liang said. "The affected general contractors and suppliers may then stop paying their own suppliers, or stop work for other property developers, causing spillover effects."

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
Xpeng Soars Above Buy Point After Showcasing Flying Car Ahead Of Tesla



China's Xpeng Motors (XPEV) showed off a flying car and plans for superchargers as a new EV looms, intensifying the EV startup's challenge to Tesla (TSLA) in one of the world's biggest electric-car markets. Xpeng stock surged Monday, topping a buy point.

At its annual Tech Day in Guangzhou Sunday, Xpeng unveiled the sixth generation of its flying car, reports in local media said. The vehicle, from affiliate HT Aero, can both drive on land like a normal car and fly in the air.

HT Aero, backed by Xpeng and its CEO He Xiaopeng, raised $500 million last week from outside investors, including venture capitalists.

By 2024, HT Aero plans to mass produce the flying car, it said. The vehicle is likely to cost around RMB 1 million ($157,000). In May, Tesla CEO Elon Musk claimed a version of its upcoming Roadster will be able to fly "very briefly."

On Sunday Xpeng, the emerging Tesla and Nio (NIO) rival, also discussed next-gen superchargers while alluding to a new electric vehicle. Xpeng currently has 439 'supercharging' or fast-charging stations across China vs. 1,000 Tesla Supercharger stations in that country.

At the Guangzhou Auto Show in November, Xpeng is set to debut a new flagship SUV, possibly called the G-7 and based on the existing P7 electric sedan.

In 2022, Xpeng plans to offer highly advanced driver-assist systems and a self-driving car service in its home market. And by 2025, Xpeng's CEO said he sees EVs making up 50% of China's "new energy vehicle" market, which includes hybrid-electric vehicles.

In September, the share of plug-in electric cars in China reached an all-time high of 20%, or one in five new cars, spearheaded by robust Tesla Model 3 and Y sales.

Xpeng Stock, EV Stocks

Shares of Xpeng popped 11.5% to 48.09 on the stock market today. Xpeng stock has just topped a 48.08 buy point in a choppy cup base, according to MarketSmith chart analysis. Despite sharp pullbacks this year amid China's tech crackdown, XPEV stock has never traded below the IPO price of 15 since its August 2020 debut.

Among other EV stocks, Nio rose 6.15% while Tesla vaulted nearly 13% to a fresh high and a $1 trillion market cap Hertz on Monday ordered 100,000 Tesla EVs as its rental car fleet looks to go electric. Li Auto (LI) advanced 6.1% and BYD (BYDDF) added 5.4% to another all-time high, rallying further on strong EV sales.

Last Thursday, Deutsche Bank analysts raised their price target on Xpeng stock by $6 to $57. They expect higher EV sales than previously seen for the emerging Tesla rival. They're also bullish about the market for flying cars in China and Europe.

Xpeng continues to push tech innovations. This past summer, the EV startup unveiled the P5, an EV with an autonomous driving system enabled by 32 sensors, including 2 Lidar units and 13 high-definition cameras. It will bring highly automated driving from highways to city roads for the first time, Xpeng said.

That system is expected to be Level 3, which means drivers can hand over complete control to the car under certain conditions.
Tesla-Hertz deal is a 'major win-win for both sides:' Hedge fund veteran

Ines Ferré
·Markets Reporter
Wed, October 27, 2021

The Tesla (TSLA)-Hertz deal is a "major win-win" for both sides, says Nicholas Colas, co-founder of DataTrek Research.

The hedge fund veteran says the arrangement is a "fascinating case study in how new and old industries still need each other to maximize the impact of disruptive technologies on the one hand and leverage that same technology to remake a stale business model on the other."

Hertz Global Holdings has placed an order of 100,000 Tesla cars in a step towards electrifying its rental fleet. The vehicles are set for delivery by the end of 2022. Charging stations will also be installed.

Shares of Tesla soared on the news earlier this week, pushing the electric vehicle giant's market cap past $1 trillion for the first time ever.

"Hertz locks up a significant part of Tesla’s production over the next year, and at what should be healthy margins," wrote Colas in a note to investors.

"Tesla now has 10 percent of its total future 12-month production capacity spoken for, something which will help it plan plant utilization and optimize for efficient production," said Colas.

He goes on to point out the car rental company has a large footprint in the U.S., including major airports and large cities. Hertz will be a useful partner as Tesla grows the number of charging locations for its electric vehicles.

"While these will be only for rental customers at first, we can see Hertz monetizing “charging as a service” for Tesla owners," wrote Colas.

He points out the U.S. car rental industry missed the "ride-sharing" disruption, but it can "make a comeback" by getting involved with electric vehicle makers working on autonomous driving.

"This, we suspect, is Hertz’s endgame strategy. They know that by being a major EV buyer they will have an edge as these vehicles eventually transition to autonomous driving," wrote Colas.

Hertz Global Holdings just came out of bankruptcy over the summer. The company entered Chapter 11 in May 2020, during the pandemic as economies shut-down amid global lockdowns.


Uber partners with Hertz to offer 50,000 Tesla rentals to U.S. ride-hail drivers

Wed, October 27, 2021

By Tina Bellon

(Reuters) -Uber Technologies Inc on Wednesday said it is launching a new partnership with rental car company Hertz to offer 50,000 Tesla Inc vehicles as a rental option for its ride-hail drivers by 2023.

Uber drivers can rent a Tesla through Hertz starting on Nov. 1 in Los Angeles, San Francisco, San Diego and Washington DC, with the program later this year expanding to cities nationwide, the ride-hail company said in a blog post https://www.uber.com/newsroom/hertztesla.

The announcement comes after Hertz on Monday said it would order 100,000 Tesla vehicles by the end of 2022, meaning that half of the rental company's Tesla fleet would be reserved exclusively for Uber drivers.

News of the biggest-ever Tesla order led to a share price rally and saw the electric vehicle company's market value surpass $1 trillion on Monday.

Tesla shares on Wednesday were up 3%, while Uber shares were down 1.4%. Hertz shares were up 2%.

Hertz on Wednesday also announced a separate partnership with online used-car dealer Carvana Co, whose shares rose 3% in morning trade. Under the agreement, Hertz would reduce its reliance on mass auctions to offload used rental fleet vehicles and instead sell vehicles directly to consumers through Carvana's sales channels.

For Uber drivers, Tesla rentals will start out at $334 a week, including insurance and maintenance, and consist mostly of the company's Model 3 sedan. Uber said the rental cost would drop to $299 per week or lower as the program expands in the coming year.

Wednesday's deal represents Uber's most significant step so far in expanding the use of EVs on its platform. The company has vowed to operate only electric vehicles on its United States, Canadian and European platform by 2030, and worldwide by 2040.

But only a few ride-hail drivers can afford the higher EV sticker prices and in 2019, only 0.15% of all Uber miles in the United States and Canada were driven in electric vehicles, company data showed.

Ride-hail drivers produce more pollution per passenger mile traveled because they spend more than a third of their time driving around empty. Researchers generally assume that electrifying one ride-hail vehicle reduces the same amount of CO2 as converting three regular gas-powered vehicles.

Hertz, which is emerging from bankruptcy, hopes the EV focus will allow the once-dominant brand to stand out against competitors.

Carmakers also consider partnerships with ride-hail companies as a convenient way to expose more consumers to non-fuel-powered vehicles.

Tesla did not respond to a request for comment.

(Reporting by Tina Bellon in Austin, Texas; editing by Richard Pullin and Mark Porter)

Hertz Teams With Uber, Carvana in Big Shift to Electric Cars

Erik Schatzker
Wed, October 27, 2021

(Bloomberg) -- Hertz Global Holdings Inc., fresh off a blockbuster order for 100,000 Teslas, reached an exclusive agreement to supply Uber drivers with electric vehicles and signed up Carvana Co. to dispose of rental cars it no longer wants.

Taken together, the deals represent a trifecta of aggressive and innovative initiatives with the potential to upend the car-rental business and hasten the transition to greener transportation. The order for Model 3s on Monday, the largest-ever for EVs at $4.2 billion, was such a watershed moment that it propelled Tesla Inc.’s valuation past $1 trillion.

Just as surprising: The company behind it all is barely out of bankruptcy. Only 17 months ago, with the Covid-19 pandemic raging, Estero, Florida-based Hertz was so troubled and its future so uncertain that it sought protection from creditors. Now, under the control of hedge fund and private-equity owners, Hertz is leaning on mobile technology and digitization to transform a stodgy industry known for uninspiring cars and poor customer experiences.

“Our approach is very strategic and very deliberate in terms of how we want to disrupt ourselves and, hopefully, disrupt the industry,” Mark Fields, who’s serving as interim chief executive officer at Hertz, said in an interview. “Instead of asking why, we’re asking why not.”

Under the agreement with Uber Technologies Inc., drivers for the ride-hailing giant who previously had to provide and maintain their own EVs will be able to rent one of 50,000 Teslas from Hertz instead. The program, which starts Nov. 1, is an alternative to buying or leasing, and many drivers may find it more appealing.

Had Uber bought and rented out the Teslas itself, some states might classify drivers as employees. The arrangement with Hertz allows Uber to increase the number of rides taken on EVs without having to change its business model.

“Now is the time to drive a green recovery from the pandemic,” Dara Khosrowshahi, chief executive officer of San Francisco-based Uber, said in a statement.

New Strategy


Partnering with Uber and Phoenix-based Carvana addresses two key weaknesses in the rental industry: asset-utilization -- how actively a car is rented out; and resale recovery -- how much of the purchase price is recouped when the car is sold.

Through the new deal with Carvana, one of the two biggest online car marketplaces, Hertz hopes to eliminate the discounting necessary when selling vehicles from its fleet through dealers and wholesalers. Buyers will be able to pick up cars as soon as the following day. Carvana, home of the car vending machine, earns a commission.

“This provides us with a very effective direct-to-consumer sales channel,” Fields said.

By opening part of its EV fleet to ride-hailing, Hertz aims to maximize revenue per vehicle and improve profit margins. For example, cars typically rented out to leisure customers on the weekend could be used for Uber rides Monday to Friday.

Uber Rates

Under the Uber agreement, drivers will pay a starting rate of $334 a week to rent a Tesla Model 3 with unlimited miles, plus expenses for recharging and incidental damage. That’ll gradually drop to $299. Initially, the program is open only to drivers with a 4.7-star rating and a minimum of 150 trips.

Drivers won’t be able to turn on Tesla’s autopilot feature, Fields said.

Uber is offering drivers a zero-emissions incentive of $1 a ride for using EVs and 50 cents for every rider who chooses to go green. As with all rentals, Hertz covers or absorbs the cost of financing, maintenance, insurance and depreciation.

What Bloomberg Intelligence Says:

“Uber’s partnership with Hertz is probably aimed at fending off disruption from a direct rollout of robo-taxis, built on a network of electric and autonomous vehicles. Renting rather than buying vehicles suggests Uber will keep operating an asset-light model, though high variable costs could be a persistent drag on the contribution margin in the near term.”-- Mandeep Singh, BI senior technology industry analystClick here to read the research.

Hertz has been renting to Uber drivers since 2016. The new relationship builds on that program, adding at least 50,000 Teslas to the pool of available vehicles by 2023 and possibly as many as 150,000. The EVs will be available first in Los Angeles, San Francisco, San Diego and Washington, D.C., with a nationwide rollout to follow in coming weeks.

And because the deal is exclusive, none of Hertz’s rivals in the U.S. can rent Teslas to Uber drivers. They can, however, offer other cars. Lyft Inc. has committed to switch entirely to EVs by 2030.

New Investors

By embracing electrification, Hertz is positioning itself as the green alternative to Enterprise Holdings Inc. and Avid Budget Group Inc. That may appeal to the scores of companies looking to burnish their climate credentials, as well as to consumers wanting to reduce their carbon footprint. According to Uber, drivers who go electric cut tailpipe emissions much more than the average car owner.

Knighthead Capital Management, a distressed debt hedge fund, and Certares Management, a buyout firm specializing in travel, won the bankruptcy auction for Hertz with a $6 billion bid. The initiatives they’ve announced come ahead of a relisting of Hertz shares on the Nasdaq Stock Market.

Early indications are the strategy is paying off. Hertz’s market valuation, based on over-the-counter trading, jumped about $1.2 billion Monday after it announced its deal with Tesla, and stood at $12.9 billion as of Tuesday’s close.

Hertz shares gained as much as 4% in trading Wednesday morning in New York. Uber shares rose as much as 1.2% , while Carvana advanced as much as 5%. Tesla gained as much as 3%.

Fields acknowledged that with so many changes to its way of doing business, there’s a risk Hertz stumbles or something out of its control goes wrong.

“There are lots of moving parts here,” Field’s said. “When there are hiccups, we need to be agile in learning and fixing those things.”


THE ENEMY OF MY ENEMY
Amazon Signs Satellite Pact With Verizon in Challenge to Musk


Thomas Seal
Tue, October 26, 2021

(Bloomberg) -- Amazon.com Inc. struck a deal to use Verizon Communications Inc.’s network to link up its thousands-strong planned fleet of satellites, stepping up a rivalry with Elon Musk’s StarLink system.

Amazon’s billionaire founder Jeff Bezos has committed $10 billion to satellite subsidiary Kuiper Systems LLC, which plans to launch 3,236 satellites into low-earth orbit to provide broadband internet access.

Amazon will now explore ways this so-called “constellation” of spacecraft could link up to Verizon’s terrestrial telecommunications network and connect remote areas and businesses, the companies said in a statement Tuesday.

The deal will escalate the new space race fueled by billionaire investment. Bezos, the world’s second-richest man, is clashing with the world’s richest, Elon Musk, whose Space Exploration Technologies Corp. has sent more than 1,500 low-earth orbit satellites into space, and also competes with Bezos’s Blue Origin on launch technology.

Musk recently teased Bezos after his immense wealth surpassed that of the Amazon founder. He’s now worth more than a quarter of a trillion dollars, compared to Bezos’s $193 billion.

Kuiper Systems in September filed a scathing comment with the Federal Communications Commission, accusing Musk and his companies of flouting regulations with a general attitude that “rules are for other people.”

The bid to provide low-earth orbit satellite broadband is also drawing in other investors, including more billionaires and governments. Ventures like OneWeb, backed by Indian telecommunications tycoon Sunil Mittal and the U.K. government, recently struck a deal with AT&T Inc. to hook up customers via existing land-based networks.

Amazon and Verizon will study technical and commercial models for new services, and will look at expanding Verizon’s network using Kuiper’s satellite broadband. Verizon and Amazon have already collaborated on other communications technology, such as edge computing.

A spokesman for Verizon said it’s a global partnership with Amazon and it’s open to exploring similar deals with other companies, but declined to comment on the finances of the deal.
Activist Investor Loeb Takes Shell Stake, Pushes to Break Up Company

Scott Deveau and Laura Hurst
Wed, October 27, 2021


(Bloomberg) -- Activist investor Dan Loeb has built a position in Royal Dutch Shell Plc and is pushing for a break-up of the energy giant, marking the most serious challenge yet to its strategy of embracing the energy transition while continuing to pump oil and gas.

Loeb’s Third Point LLC has taken a $750 million stake, according to a person familiar with the matter. The firm said in a letter Wednesday to investors that Shell would benefit from breaking off its liquefied natural gas, renewables and marketing businesses into a standalone company. That would separate it from Shell’s legacy energy business, which would include the upstream, refining and chemicals operations.

A break-up of the 188-year-old Anglo-Dutch oil major, which has a market capitalization of about $190 billion, would be a truly seismic event for the global energy industry as it grappling with ever-louder demands to curb greenhouse while trying to remain economically viable. Loeb’s move comes less than a year after activist investor Engine No. 1 ran a successful proxy contest to elect new directors to the board of Exxon Mobil Corp., in part over what it says is the company’s lack of action on climate change.

Read More: Shell Shows It Favors Investor Returns Over Renewables Deals

Loeb argues the past two years have been difficult for Shell’s shareholders, with a major dividend cut and a well-publicized order from a Dutch court to change its business model. In fact, he said, it’s been a difficult two decades for shareholders, with annualized returns of just 3%.

“Shell’s board and management have responded to this with incrementalism and attempts to ‘do it all.’ As the saying goes, you can’t be all things to all people,” Loeb said in the letter. “In trying to do so, Shell has ended up with unhappy shareholders who have been starved of returns and an unhappy society that wants to see Shell do more to decarbonize.”

Loeb said he has already started early engagement with the company, and is confident its board and management will formulate a plan to reach its decarbonization goals while improving returns for shareholders.

Loeb said he believed Shell was one of the cheapest large cap stock in the world. He noted that it trades at a 35% discount on most metrics to its peers, Exxon Mobil Corp. and Chevron Corp., despite having higher quality assets a more sustainable business mix.

‘Incoherent, Conflicting’ Strategies

He argues that’s because it has too many competing stakeholders, pushing it in too many directions, resulting in “an incoherent, conflicting set of strategies attempt to appease multiple interests but satisfying none.”

That’s also why splitting up the business would make sense, Loeb said. The standalone legacy energy business could focus on slowing down its spending, selling assets, and returning cash to shareholders as a standalone entity.

At the same time, he estimates that the LNG, renewables and marketing activities, which he refers to as Shell’s energy transition businesses, are expected to generate over $25 billion in earnings before interest, tax, depreciation and amortization in 2022. On a standalone basis, that might be worth as much as the enterprise value of the entire company, despite only generating about 40% of its business, according to Loeb.

He said the energy transition business could aggressively invest in renewables and other carbon-reduction technologies.

“Pursuing a bold strategy like this would likely lead to an acceleration of C02 reduction as well as significant increased returns for shareholders, a win for all shareholders,” he said in the letter.

Shell is due to report its earnings on Thursday. A company representative wasn’t immediately able for comment. Shell’s American Depositary Receipts rose as much as 3.9% in New York trading. Dow Jones reported the news earlier.

Dutch Court

Shell has come under fire from activists, the courts and its own investors over its role in climate change. In May, a Dutch court said that the company would have to slash its carbon emissions 45% by the end of the decade, going far beyond Shell’s own plans.

Read More: Shell to Appeal Landmark Dutch Climate Change Case (1)

The oil major has succumbed to pressures to reduce emissions by putting to vote an energy transition strategy that will see see Shell produce more gas, less oil and ramp up investments in renewables. Still, for some investors, that’s not enough. On Tuesday, the Netherlands’ largest pension fund and once-ally of Shell said it would divest its fossil fuel assets.

WOKE CAPITALI$M 
Citigroup Offers Social Bonds After Agreeing to Racial Audit


Caleb Mutua
Wed, October 27, 2021



(Bloomberg) -- Citigroup Inc. is returning to the social bond market with a $1 billion deal just days after it became the first Wall Street bank to agree to audit its business to determine if and how it contributes to racial discrimination.

The social bond is maturing in four years and is part of a $4 billion, three-part transaction, according to a person with knowledge of the matter. The longest portion of the overall offering, a $1.25 billion 21-year security, will yield 0.98 percentage point above Treasuries, after initial discussions of around 1.2 percentage points, said the person, who asked not to be identified as the details are private.

The bank last week agreed to do a deep dive into its business to see if, and how, it contributes to racial discrimination. The audit will focus on its 2020 commitment to dedicate $1 billion toward initiatives it hoped would help close the persistent racial wealth gap in the U.S., where the average net worth of a White family is nearly ten times higher than that of a Black family.


The debt will be Citigroup’s second syndicated social bond after it sold $2.5 billion in October last year -- the largest-ever deal of its kind from the private sector -- to help fund the construction, rehabilitation and preservation of affordable housing for low-and moderate-income populations in the U.S. Its social bonds are meant to support lending to social inclusive businesses across the bank’s emerging-market footprint, the person said in relation to Wednesday’s deal.

Global sales of social bonds from corporations and governments are at a record $217 billion so far this year, according to data compiled by Bloomberg. That’s more than the $162 billion raised in the whole of last year.


Issuance of the bonds surged at the height of the pandemic as governments, supranational entities and companies boosted borrowing to get through the pandemic. Moody’s Investors Service expects the trend to endure long after the effects of the pandemic subside and social issues to increasingly permeate other sustainable debt instruments like sustainability-linked bonds, analysts led by Matthew Kuchtyak wrote in a report Wednesday.

“Regardless of the structure used, investors will increasingly consider the link between an issuer’s social financing and its overarching ESG credentials and sustainability strategy,” the analysts wrote.

Citigroup joins other big U.S. banks that have sold corporate investment-grade debt after reporting strong third-quarter earnings. Goldman Sachs Group Inc. has so far brought the biggest bond deal in this reporting season, raising $9 billion in the high-grade market. Morgan Stanley sold $5 billion of debt followed by a $3.25 billion self-led bond deal from Bank of America Corp.

(Updates with deal size in first paragraph, launch details in second, issuance data in fifth, a chart and Moody’s analysis in sixth and seventh)
GREEN CAPITALI$M
Al Gore teams with Goldman Sachs, Microsoft, and Harvard on a climate asset fund

Katherine Dunn
Wed, October 27, 2021,



Al Gore's investment management firm will launch a new climate-focused asset fund ahead of COP26, the global climate conference that begins next week.

Just Climate was launched by Generation Investment Management, a London- and San Francisco–based investment firm founded in 2004. Gore is chairman of Generation; founding partner David Blood, a former CEO of Goldman Sachs Asset Management, will serve as chair of Just Climate.

The new fund is backed by a household-name group of investors. Those include Microsoft's Climate Innovation Fund; the IMAS Foundation, a foundation tied to the parent foundation that controls Ikea; Harvard Management Company, which invests Harvard's endowment; an impact investing subsidiary of Goldman Sachs; Hall Capital Partners; and the investment fund of the Republic of Ireland.


“The sustainable investment industry has grown rapidly in recent years, a welcome development that gives the world a better chance of creating a net-zero, prosperous, equitable, healthy, and safe society," Gore said in a release. "However, the climate crisis now demands an increase in the speed and scale of our collective actions by accelerating our current efforts and at the same time innovating new climate financing models."

The group behind the fund said it would invest in "catalytic" climate solutions in energy, transport, and industry, as well as "natural" climate solutions, food, agriculture, and oceans. One thing missing in the fund's initial announcement, however, are the numbers—it's not yet clear how large it will actually be. Generation had about $36 billion under management as of June 2021, according to its website.

The fund is only one of a host of high-profile climate-focused funds that have been emerging—or gaining momentum—in recent months, as climate pressure intensifies, as well as the opportunities for businesses willing to invest in the energy transition. Other high-profile efforts include Bill Gates–backed Breakthrough Energy Ventures, which makes early investments in climate and renewable technology.

Major agencies have warned that the scale of investment required to increase the renewable energy supply is enormous. This month, the International Energy Agency puts the figure at about $4 trillion per year.

However, while the need for dramatic investment in climate solutions is uncontroversial, the extent to which investments made by financial institutions and investment managers serve those goals has increasingly drawn skepticism. In one now well-known example, the former head of sustainable investing at BlackRock hit out at ESG investing, calling it "sustain-a-babble." Gore himself has warned that "the threat of ESG is rising."

But in July, Gore spoke to Fortune about his perspective on the pace of momentum behind action on climate change, adding that he was hopeful. He summed it up in a favorite quote: "Things take longer to happen than you think they will, and then they happen faster than you thought they could."

That "really does describe where the world has been and is going, and the speed with which the transition is taking place in the real economy."
Why job applicants are being ghosted despite high demand for workers

Tue, October 26, 2021

Scott Blumsack, Monster SVP of Research and Insights, joins Yahoo Finance to discuss the challenges in job searching as applicants experience being ghosted when applying for open positions.
Video Transcript

ALEXIS CHRISTOFOROUS: I want to switch gears now and take a look at the job market because if you've applied for a job recently and you never heard back from the recruiter, you've got plenty of company. A new Monster poll finds a whopping 90% of job seekers were ghosted by their would be employer. And it is making them lose faith in the system.

Here to talk about it is Scott Blumsack, Monster's SVP of Research and Insights. Scott, good to see you. You know, I was a little bit surprised to hear this because we keep talking about how companies are having a tough time filling open positions. So any idea why these would be employers are ignoring these applicants?

SCOTT BLUMSACK: Yeah, no, and first of all, thanks so much for having me again. It's great to be here. And we had the same reaction that you did when we first saw the output of our report in terms of seeing a real dramatic uptick in terms of this trend and this feeling of frustration amongst candidates. And I think it really has to do with a couple of things.

On the candidate side, we've talked for a while around how the current environment is giving them a lot of confidence. And in many cases, that's causing them to perhaps look for jobs that may not be the right fit. So it's really important for candidates to focus on those jobs where they really have sort of the skills and the experience to be able to stand out to employers.

And then also, on the employer side, I think what we're hearing from employers is a high degree of sort of stress around having to manage the inflow of candidates, as they're oftentimes doing more with less. And I think in certain cases, there are a lot of candidates that are sort of slipping through the cracks and aren't being followed up upon. And it's really important for employers to acknowledge that, because based on our research, we found that almost a third of candidates who do get ghosted by employers will not look for another job with that employer again.

KARINA MITCHELL: And I'm glad you touched on the stress factor because you also say that there is a degree of application fatigue that sets in. Can you explain what that is? And you say it's emotional and physical, right?

SCOTT BLUMSACK: Yeah, no, no, absolutely. You know, as candidates are applying to more and more jobs, and in some cases, kind of falling into this black hole where they're not hearing back from candidates, that can be very distressing for candidates. We found that almost half of candidates experience a high degree of frustration with the process. 30% were feeling-- really feeling exhausted. And really, 3/4 were feeling levels of sort of anxiety and stress over the process. And even in the best of times, you know, the job process is often one that's not without stress.

ALEXIS CHRISTOFOROUS: And talking about stress, I understand that most of the respondents say that being ghosted after a first date is not nearly as bad as being ghosted after a job interview. Tell us about that.

SCOTT BLUMSACK: Yeah, exactly. So when we talked to and heard from candidates, you know, 90% responded that they had been ghosted. And in those cases, almost a third said that they would no longer look for another job with that particular employer. 2/3 said that actually being ghosted was more-- you know, they'd rather be ghosted on a first date versus be ghosted by an employer. So it really just signals how personal and impactful this can be to candidates.

KARINA MITCHELL: I want to jump in with this. I get emails every day from various companies and job posters offering me a job. And, you know, some of them are the most ludicrous things that I'm clearly not fit to do, like, you know, drive a truck for Amazon. And I'm not knocking that job. We need a lot more truck drivers at the moment, right? But something I'm clearly not qualified for. So what is wrong with the system right now in the way that employers and employees are matched through many of these boards that are available and job recruiters?

SCOTT BLUMSACK: Yeah, no, I mean, I think it really comes down to being able to clearly articulate the skills and experiences that you're looking for on the employer side, and as a candidate, really taking that into account and really being able to showcase that you have those skills and experiences to do the job well and really stand out. It's really on both sides to make sure that they're going after the right fit for that particular job.

ALEXIS CHRISTOFOROUS: Any advice, words of wisdom you can give folks who are feeling that application fatigue and saying, you know what? I just can't take the rejection, because being ghosted is sort of a form of rejection, sort of the worst kind, right? You don't even get a response because you don't know if your application went into the great dark abyss. Did they see it? How should an applicant follow up and how many times before they start feeling like, you know, they're becoming a pain?

SCOTT BLUMSACK: Yeah, now, certainly, persistence and perseverance kind of through some of these difficulties is, first and foremost, what a candidate needs to do. They shouldn't take these types of things personally. And they should really focus, again, on coming back to, what are the skills that I have? What are the experiences that I have? How does that relate to this specific opportunity? And really try and demonstrate that throughout the application process.

KARINA MITCHELL: I was going to ask you really quickly, as we enter the holiday period, what are you seeing as far as the number of applications? And is there a sort of match going forward into next year as far as the number of openings and the number of people applying? What are you seeing in numbers there?

SCOTT BLUMSACK: Mm-hmm, yeah, so there still is this supply-demand imbalance that exists in the marketplace where there's more employers looking to fill jobs than there are candidates looking for jobs. And we expect that trend to continue, but improve upon over the next several months. I think going into the holiday season, one of the things that we're seeing is, on the candidate side, more of an interest in pursuing part-time and seasonal work.

So we do think there will be demand there on the candidate side to help with some of the shortfalls that we're seeing. So we see the situation starting to improve over the next several months, but we don't see sort of this magic bullet where, all of a sudden, supply and demand come back into alignment in the immediate term.

ALEXIS CHRISTOFOROUS: All right, I like your advice about not taking it personally. Scott Blumsack, Monster SVP of Research and Insights, thanks so much for being with us.