Saturday, October 30, 2021

In Rittenhouse case, Americans see what they want to see

SCOTT BAUER
Sat, October 30, 2021, 
MADISON, Wis. (AP) — From the moment Kyle Rittenhouse shot three people on the streets of Kenosha during protests over the police shooting of a Black man, he’s personified America’s polarization.

The 17-year-old from Illinois who carried an AR-style rifle and idolized police was cheered by those who despised the Black Lives Matter movement and the sometimes destructive protests that followed George Floyd’s death. He was championed by pro-gun conservatives who said he was exercising his Second Amendment rights and defending cities from “antifa,” an umbrella term for leftist militants.

Others saw him as the most worrisome example yet of vigilante citizens taking to the streets with guns, often with the tacit support of police — a “chaos tourist,” in the words of the lead prosecutor, who came to Kenosha looking for trouble.

Though Rittenhouse and all three men he shot are white, many people saw racism at the heart of Kenosha — an armed white teen, welcomed by police to a city where activists were rallying against a white officer’s shooting of a Black man, and allowed to walk past a police line immediately after shooting three people.

That division is likely to be on display at Rittenhouse's trial, which opens Monday with jury selection. Rittenhouse, now 18, faces several charges, including homicide — and could see a life sentence if convicted.

“It’s another battle in what has become the central story of our time —- the culture wars,” John Baick, who teaches modern American history at Western New England University in Springfield, Massachusetts, said.

In many ways, the key question at trial is simple: Was Rittenhouse acting in self-defense? Plentiful video exists of the events in question, and legal experts see a strong case for that. The judge overseeing the trial, Bruce Schroeder, has said forcefully that it "is not going to be a political trial.”

But the case has been exactly that, almost from the moment the shootings happened — driven by powerful interest groups, extremists, politicians and others using it to push their own agendas.

Rittenhouse’s defenders, including his family, have leaned into some of the symbolism. A website devoted to his defense — and raising money for it — greets visitors with a quote attributed to James Monroe: “The right of self-defense never ceases.” The site blasts “Big Tech, a corrupt media, and dishonest politicians” out to “ruin the life of Kyle Rittenhouse.” The site briefly sold branded “Free Kyle” merchandise before vendors backed away.

Ryan Busse, a former firearms industry executive who is now a senior adviser at the gun-safety organization Giffords, which was founded by former U.S. Rep. Gabrielle Giffords, said he's worried that Rittenhouse will become “some heroic martyr.”

“I’m worried about empowering more actors like him who think it’s glamorous to go kill somebody with a rifle,” Busse said.

Rittenhouse made the 20-mile (32-kilometer) trip from his home in Antioch, Illinois, north to Kenosha as the city was in the throes of several nights of chaotic demonstrations after an officer shot Jacob Blake in the back following a domestic disturbance. At least one call had gone out on social media for armed citizens to respond, though Rittenhouse's attorneys say that wasn't what brought Rittenhouse to the city.

Videos taken that night show him with a first-aid kit at his side, along with his rifle, bragging about his medical abilities. Video also shows police appearing to welcome Rittenhouse and other armed citizens, including handing them bottles of water.

Later in the evening, video shows a man named Joseph Rosenbaum chasing Rittenhouse in the parking lot of a used car dealership; seconds later, Rittenhouse shoots and kills him. In the ensuing minutes, Rittenhouse — pursued by other protesters — shot and killed Anthony Huber, who swung a skateboard at him, and shot and wounded Gaige Grosskreutz, who had stepped toward Rittenhouse with a pistol in hand.

Video then shows Rittenhouse walking toward police with his hands up, his rifle slung over his shoulder, as protesters yell that he has just shot people. Rittenhouse went back home, turning himself into police the next day.

The day Rittenhouse was arrested, Democratic U.S. Rep. Ayanna Pressley, of Massachusetts, tweeted that the shootings had been committed by a “white supremacist domestic terrorist.”

Rittenhouse's defense team pushed back against that, saying Rittenhouse isn't a white supremacist and wasn't aware of “hateful rhetoric” on social media about the Kenosha protests leading up to the shootings. The Anti-Defamation League found no evidence of extremism in his social media accounts.

But Rittenhouse was embraced by the Proud Boys, a far-right extremist group that generally traffics in white nationalism, according to the Southern Poverty Law Center. The group’s chairman, Enrique Tarrio, and other members have been shown wearing T-shirts that say, “Kyle Rittenhouse Did Nothing Wrong!” And soon after being freed on bond, Rittenhouse was photographed at a Wisconsin bar with people who flashed a hand signal associated with the Proud Boys and sang a song that has become an anthem of the group. Rittenhouse flashed the hand signal, too.

The fact that Rittenhouse wasn’t a member of any extremist group before the shootings doesn’t matter now given how he’s been embraced by them, said Alex Friedfeld, an investigative researcher for the Center on Extremism with the Anti-Defamation League.

He said extremists will be looking to turn the trial to advantage. Some view the mere fact that Rittenhouse was charged as evidence that courts and the system are stacked against conservatives, or that the system is biased against white people, Friedfeld said.

“It starts to kind of lay the groundwork for the idea that people need to tear down these institutions and the system is broken and needs to be changed, which requires action,” he said.

Baick, the historian, called the Rittenhouse trial “a moment for reality TV" and said the entire case takes its place amid one of the nation's most turbulent periods in generations.

“We have to link in Jan. 6,” he said. “We have to link in military groups across the country, anti-mask protests, school board protests. Whether it's Kenosha, or Minneapolis, or the entire state of Florida, these debates over the role of government, the role of law and order — these are deeply unsettled in America right now in a way they haven't been since the 1960s.”

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Associated Press writer Doug Glass contributed from Minneapolis.

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Find AP’s full coverage on the trial of Kyle Rittenhouse at: https://apnews.com/hub/kyle-rittenhouse

FILE - In this Aug. 25, 2020, file photo, Kyle Rittenhouse carries a weapon as he walks along Sheridan Road in Kenosha, Wis., during a night of unrest following the weekend police shooting of Jacob Blake. Rittenhouse is white. So were the three men he shot during street protests in Kenosha in 2020. But for many people, Rittenhouse's trial will be watched closely as the latest referendum on race and the American judicial system. (Adam Rogan/The Journal Times via AP, File)


  
This undated photo shows Anthony Huber, right, and Hannah Gittings. Huber was fatally shot, Aug. 25, 2020, along with Joseph Rosenbaum by Kyle Rittenhouse during a protest of the police shooting of Jacob Blake, a Black man, by a white police officer on Aug. 23. Rittenhouse was 17-years-old when he traveled from his home in Illinois, just across the Wisconsin border, during protests that broke out. Jury selection in the Rittenhouse trial was due to start Monday, Nov. 1, 2021. (Hannah Gittings via AP).


Kenosha Protest Shooting RaceFILE - In this Aug. 25, 2020 file photo, a group holds rifles as they watch protesters on the street in Kenosha, Wis. Protests continued following the police shooting of Jacob Blake two days earlier. Kyle Rittenhouse is white. So were the three men he shot during street protests in Kenosha in 2020. But for many people, Rittenhouse's trial will be watched closely as the latest referendum on race and the American judicial system. 
 AP Photo/Morry Gash


Kyle Rittenhouse will stand trial Monday for shooting three men, killing two of them, on Aug. 25, 2020, during the third night of protests in Kenosha following the police shooting of Jacob Blake.

VIDEO Who are Kyle Rittenhouse's victims? (yahoo.com)


Judge Won’t Let Prosecutors Say Kyle Rittenhouse Killed ‘Victims,’ Will Allow Defense to Call Them ‘Looters’ and ‘Arsonists’ if Warranted

Aaron Keller 4 days ago
© Provided by Law & Crime Kyle Rittenhouse appears in court for a pre-trial hearing on Oct. 25, 2021. (Image via screengrab from WITI-TV/YouTube.)

Keeping with a longstanding practice employed across “thousands” of cases tried before him, a Wisconsin judge has indicated that attorneys will not be allowed to refer to any of the three individuals shot by Kyle Rittenhouse as “victims.” However, Kenosha County Circuit Court Judge Bruce Schroeder ruled on Monday that those individuals could be referred to as having been involved with “arson, rioting, or looting” if the facts proved those latter accusations true.

“This is a long-held opinion of mine, which very few judges, I guess, share with me,” said the judge with reference to his disdain for the particular moniker. “The word ‘victim’ is a loaded, loaded word, and I think ‘alleged victim’ is a cousin to it.”

The judge said referring to the “decedent” or something similar was more “appropriate” because it neither implied the defendant’s guilt nor implied the innocence of those killed.

Assistant Kenosha County District Attorney Thomas Binger agreed with the judge that he has personally been admonished “in the thousands” of times for using the term “victim” in Schroder’s court, but Binger argued unsuccessfully that the defense should be similarly handicapped from using inflammatory terms to refer to the individuals killed or injured by Rittenhouse.

Schroeder said he would “encourage restraint in opening statements” but said he would “let the evidence show” what it shows as to the decedents.

Rittenhouse shot and killed Joseph Rosenbaum, 36, and Anthony Huber, 26, on Aug. 25, 2020. He injured Gaige Grosskreutz, 26. The killings occurred during protests surrounding the shooting of Jacob Blake by police officer Rusten Sheskey.

“I don’t think I’m inclined at all toward prior restraint,” Schroeder said. “I would encourage restraint in opening statement, but let the evidence show what the evidence shows. And if the evidence shows that any (or more than one) of these people were engaged in arson, rioting, or looting, then I’m not going to tell the defense they can’t call them that.”

The judge said he was accustomed to attorneys using various adjectives to “beatify” and “demonize” various individuals. He recalled one case where a prosecutor refused to a defendant as a “worthless excuse for a human being,” which he said was clearly “out of line.” But the judge said he had no issue with attorneys using words “a person has earned by his behavior.”

Binger said the terms “rioters, looters, and arsonists are as loaded if not more loaded than the term victim.”

“It’s a double standard,” Binger said, but the judge disagreed.

“Their behavior that night has nothing to do with this case unless it was witnessed by the defendant,” Binger continued. “This is going to be a case about self defense, so we’re going to talk about the defendant’s state of mind . . . his state of mind is the most important thing in this case. If there are things he witnessed with his own eyes by Mr. Huber, Mr. Rosenbaum, and Mr. Grosskreutz, I have no problem with that because it does go to his state of mind.”

Prosecutors conceded at the Monday hearing that Rosenbaum had been recorded saying “inflammatory things to other people” before he was killed, but Binger said Rittenhouse appears to have known nothing about those statements. Therefore, Binger said those statements should not come into evidence during the trial. Generally, evidence to suggest Rosenbaum acted in conformity with having a bad character would be inadmissible, Binger argued.

Judge Schroeder suggested Binger could say “Kyle Rittenhouse is a cold blooded killer” during closing arguments, and Binger agreed that he should be able to do so if he pleased.

A significant portion of the two-and-a-half hour hearing was spent hashing out other evidentiary issues.

Among them were evidentiary battles over whether an officer who interacted with Rittenhouse regarding an unrelated incident before the deadly shootings would be able to testify at trial. Prosecutors said the officer described her conversations with the defendant as “brief but cordial interactions” but sought a protective order against the officer’s testimony out of fear that it would come across as if the authorities had “approved” Rittenhouse’s actions as a lawful activity. Though prosecutors said Rittenhouse’s group engaged in some minimal conversations with a business owner about protective duties, Rittenhouse was not a professional security guard. Rather, they argued that Rittenhouse was “wandering on his own” and engaged in conduct “well beyond his purview.” The defense said the officer’s observations of Rittenhouse’s behavior were relevant to the question of whether the defendant was “reckless” — and that term carries significant weight under the relevant Wisconsin law by which Rittenhouse will be judged. The judge said he was inclined to allow the defense to question the officer but suggested a preference for ruling on the fly about any particular types of questions as the testimony develops at trial. The defense made clear that it did not wish to question the officer about the underlying incident which led to the contact between Rittenhouse and the officer in the first place.

The parties also battled about whether a use-of-force expert would be allowed to testify about video of the deadly shooting. Prosecutors said the expert proffered by the defense was biased because he issued a report filled with speculation about the intent of various people portrayed in a video of the shootings and of their aftermath. The state also said the proffered reason for the expert’s testimony — to walk the jury through the video — could be accomplished by other means. They said the jury was “well equipped” to assess the matter using a stopwatch or slow-motion video and that no expert was necessary. The defense countered that the jury needed to be keyed in on one section of video that lasted only one second and another that lasted seven seconds.

“It’s our position,” a defense attorney said, that the situation required “self-defense.”

“I’m going to turn myself into the police — I had to,” Rittenhouse said when asked if he shot someone shortly after pulling the trigger.

Jury selection in the case begins Monday.

Watch the proceeding below; it is queued to the discussion about the word “victim.



From humiliating defendants to giving them wide latitude, the ‘confident’ judge overseeing Kyle Rittenhouse’s murder trial doesn’t shy from controversy

Stacy St. Clair, Chicago Tribune
Sat, October 30, 2021

KENOSHA, Wis. — In the weeks leading up to Kyle Rittenhouse’s murder trial, attorneys on both sides made clear they wanted prospective jurors to fill out questionnaires before the selection process began.

It was a fairly routine request, given judges and attorneys across the country have relied upon such forms for decades in high-profile trials to identify people with potential biases and conflicts of interest.

But Kenosha Circuit Judge Bruce Schroeder wouldn’t hear of it.


“I maybe have tried more murder cases than anyone in the state and I’ve never used a jury questionnaire that I can recall,” he told the lawyers. “And if I did, it was a moment of weakness.”

And so it goes in Schroeder’s courtroom, where Wisconsin’s longest-serving circuit judge presides over cases with hard-line positions and chatty asides.

Schroeder, 75, will step into the national spotlight Monday as jury selection begins in Rittenhouse’s murder trial.

Rittenhouse, who lived in far north suburban Chicago, was 17 when he fatally shot two people and injured a third in downtown Kenosha with an AR-15-style rifle that police say a friend illegally purchased for him. Despite not being old enough to openly carry a gun, Rittenhouse took it upon himself to patrol the southeast Wisconsin town amid the turmoil surrounding the shooting of Jacob Blake, a Black man, by a white police officer in August 2020.

The case, which laid bare the country’s deep political divide over gun rights and racial inequities, will be undoubtedly the biggest in Schroeder’s career, but he is not new to the public stage or controversy. A circuit judge since 1983, he has made headlines for decades as he pushed for more flexibility on state-mandated child support rules, imposed a sentence intended to shame a defendant and became among the first judges in the United States to require sex workers to take AIDS tests.

At one point, so many Kenosha defendants petitioned to have their cases moved from Schroeder’s courtroom, it caused a workload imbalance at the courthouse. Between August and November 2006, as many as 250 defendants used their one-time option to switch judges rather than face Schroeder, according to The Associated Press.

The judge called the situation “almost irrational,” while many in the local legal community believed it reflected Schroeder’s reputation for handing out tough punishments. Though well-known for giving defendants leeway to present their defense, he is not considered as merciful once there’s a conviction.

“Some would view him as a stiff sentencer, and I think that was behind a lot of the switching,” said veteran defense attorney Terry Rose, who does not opt out of Schroeder’s courtroom unless a client insists. “But you will be able to get a fair trial and be able to put on your defense. That’s what I care about.”

Schroeder’s immoderate punishments raised eyebrows in 2018, when he required, as a condition of a woman’s shoplifting sentence, that she inform the management of any store she entered that she was on supervision for the offense. The judge acknowledged the unusual sentence was meant to humiliate the woman, stating that although society no longer places defendants in the stockade for their crimes, “embarrassment does have a valuable place in deterring criminality.”

A Wisconsin Court of Appeals disagreed earlier this year and overturned part of the sentence. In upholding Schroeder’s order banning the woman from the outlet mall where the shoplifting occurred, the court found the additional restrictions could make it difficult for the woman to buy groceries or other necessities if store managers in other locations refused her entry because of her confession.

“We are not persuaded that embarrassing or humiliating defendants with a state-imposed broad notification program promotes their rehabilitation,” the decision stated.

All judges — especially those who have been on the bench since the Reagan administration — are overturned at some point in their careers, and Schroeder acknowledges his reversals openly. He has mentioned a few during Rittenhouse’s pretrial hearings, including one case in which an evidentiary mistake led the Wisconsin Supreme Court to order a new trial for a man convicted of killing his wife and given a life sentence in 2008.

But neither the threat of reversals nor the increased scrutiny surrounding the Rittenhouse trial will influence how he approaches the case, several local attorneys told the Tribune.

“It won’t faze him at all,” longtime Kenosha defense attorney Michael Cicchini said. “One thing that he is, is confident. You may have picked up on that.”

A die-hard Milwaukee Brewers fan with a deep affinity for Kenosha history, Schroeder has been a mainstay at the city’s stately courthouse for a half-century. He joined the district attorney’s office in 1971 after graduating from Marquette University Law School and became the county’s top prosecutor just one year later.

He often reminisces about his time as a prosecutor while on the bench, offering the occasionally meandering anecdote to explain a ruling. At a recent Rittenhouse hearing, for example, he said he would allow an expert witness to testify about the shooting timeline because bystanders traditionally have unreliable memories about time and distances.

“I had a deputy sheriff one time testify that the width of a standard-sized automobile was 4 feet and you could not shake him from that,” Schroeder said. “He could not be shook and the case was lost — and I know because I was the prosecutor.”

Then-Gov. Anthony Earl, a Democrat, appointed Schroeder to the bench in 1983, and he has won every election for the nonpartisan job since that time. He was reelected without any opposition in 2020, and his current term ends in 2026.

In the months leading up to the Rittenhouse trial, Schroeder has made a series of off-the-cuff statements that have raised eyebrows among observers. The most recent came Monday, when he reiterated that prosecutors may not refer to the men Rittenhouse shot as “victims.” The defense, however, will be allowed to call them “rioters, looters and arsonists” if they present evidence supporting the claim.

Joseph Rosenbaum and Anthony Huber both died after Rittenhouse shot them, while a third man, Gaige Grosskreutz, was injured.

“He can demonize them if he wants, if he thinks it will win points with the jury,” Schroeder said.

It’s not uncommon for judges to bar the word “victims” in self-defense cases where there is a dispute over who bears responsibility. Prosecutors acknowledge it’s a long-standing rule in Schroeder’s courtroom and not unique to Rittenhouse’s trial, but the edict drew sharp criticism from social justice advocates who repeatedly have accused the judge of favoring Rittenhouse.

“This case continues to be a show of white privilege,” said Justin Blake, the uncle of Jacob Blake. “This is eroding confidence in the justice system and making a mockery of our constitution.”

Local attorneys say the decision reflects Schroeder’s penchant for giving defendants wide latitude to tell jurors their side of the story. Several told the Tribune that the judge would have ruled the same way if the accused wasn’t Rittenhouse.

“This is a man who has given the defense a chance to present their case as long as I’ve been in his courtroom,” Cicchini said. “He’s very consistent in that way, and that’s a good thing for all defendants regardless of their skin color.”

Protesters called for Schroeder’s resignation this summer when he refused to revoke Rittenhouse’s bond after pictures showed him allegedly socializing with a far-right group and flashing a hand sign appropriated by some white supremacists.

Prosecutors acknowledge they cannot prove Rittenhouse’s connection to fringe groups before the shooting, but they say they have evidence Rittenhouse met for lunch after a court hearing earlier this year with several high-ranking members of the Proud Boys organization, a far-right group known for street fights that the Anti-Defamation League characterizes as “misogynistic, Islamophobic, transphobic and anti-immigration,” with some members espousing “white supremacist and anti-Semitic ideologies.”

The Southern Poverty Law Center labels the organization a general hate group.

Upon arrival at a bar in nearby Mount Pleasant, Wisconsin, Rittenhouse posed with two men while flashing the “OK” sign, which prosecutors described as “co-opted as a symbol of white supremacy/white power.” He took several other photos while drinking three beers over 90 minutes, prosecutors said.

Rittenhouse’s attorneys repeatedly have denied he is a member of the organization. Prosecutors said they would present evidence showing the teen flew to Florida shortly after the bar gathering and was picked up at the airport by the Proud Boys’ national leader.

Schroeder also barred prosecutors from mentioning the alleged connection during the trial, saying it could unfairly prejudice the jury. In doing so, however, he acknowledged he had never heard of the Proud Boys before the case, didn’t know if they were actually a hate-inspired group and suggested many organizations, including street gangs, force people to join against their will.

“Pope Benedict was a member of the Nazi Youth because he had to be,” the judge said.

Schroeder also said there could be non-nefarious reasons for the photographs, which show Rittenhouse wearing a “Free as (expletive)” slogan on his shirt. The bar meeting could have been a coincidence, and Rittenhouse may have been merely happy to take pictures with people who supported him.

The judge downplayed the defendant flashing the “OK” sign in the photo, too, saying he had never heard of it used in a negative way. The symbol’s relevance among white supremacy groups has been well-documented by the media in recent years and it was declared a symbol of hate by the ADL in 2019.

“I don’t know about it and I sit in criminal court all day long and I hear a lot of criminally charged court cases, believe me, and I never heard about this hand gesture,” Schroeder said. “The first time I saw it, or a version of it, was Chef Boyardee on a can of spaghetti.”

Schroeder’s comments stirred anger among some, prompting plans for a protest outside the courthouse before jury selection begins Monday. Justin Blake intends to be among the people demonstrating.

“These rulings are not OK,” Blake said. “And we want everyone to know that.”

About 150 people are expected to report for jury duty Monday in Kenosha. Schroeder has said he’s confident the panel can be picked by day’s end.

Ahead of Rittenhouse trial, race seen as underlying issue

AARON MORRISON
Fri, October 29, 2021, 

Kyle Rittenhouse, the aspiring police officer who gunned down three people in Kenosha, Wisconsin, during a protest against racism and police brutality, is white. So were those he shot. But for many, his trial next week will be watched closely as the latest referendum on race and the American legal system.

“Make the connection,” said Justin Blake, a Black man whose nephew Jacob was a key part of the backstory of the case. "This is clearly Black and white.”

Rittenhouse was 17 when he used an AR-style semiautomatic rifle to kill two people and wound a third during the summer of 2020. He had gone to Kenosha, he said, to protect property from protesters who took to the streets in anger days after Jacob Blake was shot in the back by a white Kenosha officer.

Rittenhouse faces the equivalent of murder and attempted murder charges and could get life in prison. He has said he fired in self-defense after being attacked by protesters.

After the shooting, he drew sizable support from opponents of the Black Lives Matter movement and supporters of gun rights. Pro-gun conservatives helped raise $2 million for his bail and legal defense. After he got out of jail, he was photographed with apparent members of the far-right Proud Boys.

If Rittenhouse gets off, that would send an ominous message to Black America, Justin Blake said.

“If our country shows that you can shoot Caucasians who support us, then this country can never stand up in any international or global hearing and talk about human rights,” the uncle said. He said if Rittenhouse goes free, white people will be able to “ride down every African American community and just have fun, like you’re going hunting or something.”

Rittenhouse's lawyers have said he is not a white supremacist, and his defense fund has said he was not part of a militia group.

Some activists also see a racial double standard in the way the Blake and Rittenhouse cases were handled.

Blake was shot seven times and paralyzed at the door of his SUV as his children sat in the back seat. Police say Rusten Sheskey and two other officers responding to a domestic disturbance had tried to arrest him on an outstanding warrant and, during a scuffle, a pocketknife fell from Blake’s pants.

Blake has said he picked the knife up and was prepared to surrender once he put it in the vehicle.

After he was rushed to a hospital, police briefly handcuffed him to his bed. State prosecutors declined to charge the officer, saying the knife justified Sheskey's claim of self-defense. Federal prosecutors also declined to file charges.

Rittenhouse experienced a seemingly different response from law enforcement.

He and others were armed and professed to be there protecting the city’s businesses and homes after protesters set fires and vandalized property on two previous nights of unrest in Kenosha, and after weeks of sometimes-violent demonstrations around the U.S. over the police killing of George Floyd in Minneapolis.

Law enforcement officers saw Rittenhouse and other armed people on the streets that night despite a citywide curfew and passed them bottles of water. One officer was heard over a loudspeaker saying, “We appreciate you guys.”

Later that night, Rittenhouse was chased through a used car lot by Joseph Rosenbaum, a participant in the protests, before he fatally shot the man. Rittenhouse was then seen running onto a street with protesters after him.

A man named Anthony Huber struck Rittenhouse with a skateboard, and the teenager shot and killed him. Seconds later, Gaige Grosskreutz stepped toward Rittenhouse with a pistol, and Rittenhouse shot him in the arm.

Even as people on the street tried to flag Rittenhouse to police officers as the person responsible for the shootings, he was not stopped. With his weapon slung over his shoulder, he put his hands in the air and was waved past a police line.

Hours later, he turned himself in to police in his hometown of Antioch, Illinois.

“What looms above this trial is this whole notion that we have two justice systems, one for Black America and another for white America,” said Blake family attorney Ben Crump, the civil rights lawyer who has also represented the families of Trayvon Martin and Ahmaud Arbery, both killed in what prosecutors portrayed as acts of vigilantism.

“I just think that right now in America, there is this notion that certain people have the right to solve every disagreement with a gun,” Crump said. “And especially, when we see people protesting for justice for the killing of Black people, that we don’t have to respect their rights to the First Amendment.”

A week before trial, the judge in Rittenhouse's case ruled that prosecutors and the defense cannot refer to the men killed as “victims,” but can call them “rioters” or “looters” if the evidence supports that. The ruling outraged Black activists, who pointed to it as another racial double standard in the judicial system.

Ash-Lee Woodard Henderson, co-executive director of the Highlander Research and Education Center and a leader of the Movement for Black Lives, said Rittenhouse left home with the intention of dispensing “vigilante justice, for the sake of so-called protecting buildings and businesses, at the expense of human life.”

“To not call the people that are directly impacted by that ‘victims’ is nothing but the tenets of white supremacy masked in unjust laws,” Henderson said.

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Video journalist Carrie Antlfinger in Milwaukee, Wisconsin contributed. Morrison, who reported from New York City, is a member of the AP’s Race and Ethnicity team. Follow him on Twitter: https://www.twitter.com/aaronlmorrison

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Find AP’s full coverage on the trial of Kyle Rittenhouse at: https://apnews.com/hub/kyle-rittenhouse








 In this Sept. 3, 2020 file photo, Justin Blake, uncle of Jacob Blake, protests outside the Grace Lutheran Church where Democratic presidential candidate former Vice President Joe Biden held an event in Kenosha, Wis. Kyle Rittenhouse is white. So were the three men he shot during street protests in Kenosha in 2020. But for many people, Rittenhouse's trial will be watched closely as the latest referendum on race and the American judicial system. 
(AP Photo/Morry Gash, File)

COP26 aims to banish coal. Asia is building hundreds of power plants to burn it


COP26 aims to banish coal. Asia is building hundreds of power plants to burn it
General view shows JERA's Hekinan thermal power station in Hekinan, central Japan

COP26 aims to banish coal. Asia is building hundreds of power plants to burn it
Employees of JERA give lectures to reporters at JERA's Hekinan thermal power station in Hekinan, central Japan



Sudarshan Varadhan and Aaron Sheldrick
Fri, October 29, 2021

UDANGUDI, India/TOKYO (Reuters) - On the coastline near India's southern tip, workers toil on a pier carrying a conveyor belt that cuts a mile into the Indian Ocean where the azure waters are deep enough for ships to berth and unload huge cargoes of coal.

The belt will carry millions of tonnes of coal each year to a giant power plant several kilometres inland that will burn the fuel for at least 30 years to generate power for the more than 70 million people that live in India's Tamil Nadu state.

The Udangudi plant is one of nearly 200 coal-fired power stations under construction in Asia, including 95 in China, 28 in India and 23 in Indonesia, according to data from U.S. nonprofit Global Energy Monitor (GEM).

This new fleet will produce planet-warming emissions for decades and is a measure of the challenge world leaders face when they meet for climate talks in Glasgow, where they hope to sound the death knell for coal as a source of power.

Coal use is one of the many issues dividing industrialised and developing countries as they seek to tackle climate change.

Many industrialised countries have been shutting down coal plants for years to reduce emissions. The United States alone has retired 301 plants since 2000.

But in Asia, home to 60% of the world's population and about half of global manufacturing, coal's use is growing rather than shrinking as rapidly developing countries seek to meet booming demand for power.

More than 90% of the 195 coal plants being built around the world are in Asia, according to data from GEM.

Tamil Nadu is India's second-most industrialised state and is one of the country's top renewable energy producers. But it is also building the most coal-fired plants in the country.

"We cannot depend on just solar and wind," a senior official at Tamil Nadu Generation and Distribution Corp told Reuters.

"You can have the cake of coal and an icing of solar," he said, declining to be named as he was not authorised to speak to media.

Graphic: Coal-fired power plants in operation, construction and in permit phase by country https://fingfx.thomsonreuters.com/gfx/ce/egvbkmlrlpq/CoalFiredPowerByTop20Country.png

HOOKED ON COAL


Despite dramatic jumps in renewable energy output, the global economy remains hooked on coal for electricity. In Asia, coal's share of the generation mix is twice the global average - especially in surging economies such as India.

In 2020, more than 35% of the world's power came from coal, according to the BP Statistical Review of World Energy. Roughly 25% came from natural gas, 16% from hydro dams, 10% from nuclear and 12% from renewables like solar and wind.

This year, coal demand is set for a new record, driving prices to all-time highs and contributing to a worldwide scramble for fuel.

Record coal demand is contributing to a rapid rise in emissions in 2021 after a fall last year, when restrictions on movement for billions of people to slow the pandemic caused fuel use to plummet.

While some of the new coal plants under construction will replace older, more polluting stations, together they will add to total emissions.

"The completion of the capacity that is already under construction in these countries will drive up coal demand and emissions," said Lauri Myllyvirta, lead analyst with the Centre for Research on Energy and Clear Air.

The carbon dioxide (CO2) emissions from the new plants alone will be close to 28 billion tonnes over their 30-year lifespans, according to GEM.

That's not far off the 32 billion tonnes of total worldwide CO2 emissions from all sources in 2020, according to BP, highlighting how tough it will be for leaders gathering in Glasgow - including Indian Prime Minister Narendra Modi - to make meaningful progress on climate change.

India's Environment Secretary Rameshwar Prasad Gupta told Reuters in a recent interview that India was on track to reach its target of cutting back the country's carbon footprint, and with that coal, too, would fall - but it cannot be abolished.

"Look, every country has its strengths. We have coal, we have to depend on it," Gupta said.

"Our position is once you take up targets of reducing carbon intensity, that will have impact ... Leave it to us whether we do it in coal, or somewhere else."

Anil Swarup, a former Coal Secretary, took the same line in an interview. "Renewable energy expansion is critical, but coal will remain India's main energy source for the next 15 years at least, and production needs to be ramped up to address our energy needs," he said.

Graphic: Number of coal-fired power plants in operation or under construction https://fingfx.thomsonreuters.com/gfx/ce/dwpkrajxqvm/CoalPlantsUnderConstruction.png

CHINA CRUNCH


Across India, 281 coal plants are operating and beyond the 28 being built another 23 are in pre-construction phases, GEM data show.


These numbers are dwarfed by China, the top global coal miner, consumer and emitter, whose leader, President Xi Jinping, is not expected to attend COP26. More than 1,000 coal plants are in operation, almost 240 planned or already under construction.

Together, coal plants in the world's second-largest economy will emit 170 billion tonnes of carbon in their lifetime - more than all global CO2 emissions between 2016 and 2020, BP data show.

Graphic: Lifetime CO2 emissions from coal-fired power plants by region and stage of development https://fingfx.thomsonreuters.com/gfx/ce/xmvjolegxpr/LifetimeCO2CoalPlantsRegion.png

Despite also boasting the world's largest renewables capacity, China is now suffering a major energy crunch and has urged coal miners to raise output.

That's likely to boost coal consumption in the near term, even though China plans to reduce coal use from 2026.

Even so, total global coal consumption looks set to rise, driven by accelerating use in South and Southeast Asia, where projects under construction will raise coal-burning capacity by 17% and 26% respectively.

Graphic: Lifetime CO2 emissions from coal plants by country https://fingfx.thomsonreuters.com/gfx/ce/myvmngxmrpr/LifetimeCO2CoalPlantsbyCountry.png

AFTERLIFE


Even in economies committed to slashing emissions, coal's grip remains strong.

Japan, with its nuclear power industry in crisis since the Fukushima disaster, has turned to coal to fill the gap and is building seven large new coal-fired power stations.

Leading generator JERA plans to add clean-burning ammonia to be used with coal to help meet its target to be carbon neutral by 2050, and potentially keep old units operating longer.

On a bay near Nagoya, JERA's 30-year-old, 4,100 megawatt Hekinan station - once Asia's largest - supplies electricity to the likes of auto giant Toyota Motor Corp.

Like many power plants, Hekinan's boilers rely on fuel from top exporters such as Australia, where coal is both a vital source of revenue - $18 billion in the current financial year - and a bone of contention with allies urging ambitious emissions cuts.

Australian Prime Minister Scott Morrison is set to attend the Glasgow talks. But resources minister Keith Pitt has said there would be demand for coal for decades and made it clear the country would not be swayed by pressure from banks, regulators and investors to hobble the industry.

"While the market exists, Australia will look to fill it," Pitt said.

($1 = 1.3398 Australian dollars)

(Reporting by Sudarshan Varadhan in Udangudi, Aaron Sheldrick and Yuka Obayashi in Tokyo, and Melanie Burton In Melbourne; Additional reporting by Sanjeev Miglani in New Delhi; Editing by Gavin Maguire, Simon Webb and Kenneth Maxwell)

Markets Are Reeling in Brazil on Deficit Fears, Political Tumult

Julia Leite, Vinícius Andrade and Maria Elena Vizcaino
Fri, October 29, 2021, 
 



(Bloomberg) -- Brazil’s stocks, bonds and currency are posting some of the worst returns in the world this month amid deteriorating public finances, a worsening growth outlook and political turmoil.

The Ibovespa stock benchmark posted its fourth straight month of losses, its worst run since 2014, and closed in a bear market Friday, down 21% from its June peak. The real has weakened more than 3.5%, the biggest drop in emerging markets after the Turkish lira, and local bonds have also sold off. Risk premium as measured by five-year credit default swaps is at the highest in more than a year.

Traders have plenty to worry about. The government’s push for extended welfare payments has put the spending cap rule, a safeguard of fiscal stability, under threat, prompting resignations in the government’s economic team.

Soaring consumer prices and the prospect of a wider fiscal deficit led the central bank to raise interest rates at the fastest pace in nearly two decades this week, potentially undermining a recovery that was already sputtering. The jump in inflation, in turn, has put pressure on state-controlled oil company Petroleo Brasileiro SA, with politicians including President Jair Bolsonaro blaming the company for soaring fuel prices that are eroding purchasing power.

“The Brazil news flow has clearly deteriorated,” Bank of America Corp.’s Latin America equity strategist David Beker said in an interview. Beker, who downgraded Brazil to market-weight from overweight in his Latin America portfolio earlier this week, expects the higher interest rates to damp growth.

Extended Slide

Assets extended their slide on Thursday, after the central bank’s latest interest rate hike failed to reassure investors. The nation’s policy makers have been the most hawkish in the world this year, raising the benchmark rate by 5.75 percentage points since March. But some economists said it may need to be even more aggressive to get inflation back under control.

News that the government may extend Covid-19 cash handouts into next year also accentuated investor fears. Bolsonaro is pushing for a new social program as the Covid handouts ran out and his popularity flails amid a weak recovery and soaring prices. The president has repeatedly attacked Petrobras, as the national oil company is known, sometimes saying he wants to curb rising fuel prices and at other times saying the company should be privatized.

“Petrobras raises prices because it has to follow the law, and we’re here trying to find a way to change the law,” Bolsonaro said Thursday on social media, criticizing the fact that the amount the company charges for fuel is linked to currency fluctuations.

His comments sent the real, already the day’s worst-performing emerging market currency, sliding even further. Brazil’s stock market was closed, but Petrobras depositary receipts in New York sank as much as 6.3% in after-hours trading.

The company’s preferred shares slumped more than 6% in Sao Paulo Friday, with Bolsonaro’s fresh criticism toward higher fuel prices offsetting Petrobras’s extra $5.6 billion payout to holders.

Read More: Bolsonaro Confronts Fuel Price Pain With Privatization Talk

“You’ve got a lot of people who are giving up hope on what was a good direction for the country,” said Phillip Torres, global co-head of emerging market debt at Aegon Asset Management in Chicago. “We need a better policy prescription and we need it fast.”

Amazon Discloses 20% Stake in EV Maker Rivian as IPO Approaches

Ed Ludlow and Matt Day
Fri, October 29, 2021

(Bloomberg) -- Amazon.com Inc. owns a 20% stake in electric-vehicle maker Rivian Automotive Inc., the startup with which it has placed an order for 100,000 battery-powered delivery vans, the e-commerce giant disclosed Friday in a securities filing.

As of Sept. 30, Amazon held equity investments “including preferred stock of Rivian Automotive, Inc. representing an approximately 20% ownership interest,” which will be valued on the balance sheet at $3.8 billion -- up from $2.7 billion at the end of 2020, Amazon said in the filing.

Amazon shares pared losses of more than 5% after the disclosure of its investment in Rivian to trade down 2.8% to $3,347.27 as of at 12:41 p.m. in New York. The stock has gained just 2.8% in 2021, trailing the S&P 500 Index significantly.

Rivian is seen as a genuine contender in the EV market and potential rival to incumbent Tesla Inc. The startup’s raised more than $10.5 billion from investors to date and is seeking a valuation of $80 billion in an IPO later this year, Bloomberg reported in August.

Rivian said in a filing last week that it could post a quarterly loss of as much as $1.28 billion as it ramps up production on its debut EV, a battery-electric pickup called R1T. The Irvine, California-based company had disclosed in a separate filing earlier this year that Amazon had invested more than $1.3 billion in the automaker and held almost 150 million shares of preferred stock.

Amazon’s voting power as a percentage was redacted. A representative for Rivian declined to comment.

Ties That Bin
d

Peter Krawiec, a senior vice president of worldwide corporate and business development at Amazon, is on Rivian’s board. The Seattle-based company’s order for electric delivery vans extends through the end of the decade, with the first 10,000 units due before the end of next year. The order is a cornerstone of Amazon’s ambitious plan to curb its rising greenhouse gas emissions.

Limited production of Rivian’s debut pickup started in August and customer deliveries began last month. The startup has encountered numerous delays it has blamed on Covid-induced supply-chain challenges. Rivian has pushed back production of its second consumer model, a sports-utility vehicle called the R1S.

It’s also prioritizing manpower and resources for production of Amazon’s van over its retail consumer-focused models, Bloomberg reported last month.

All three vehicles -- the truck, van and SUV -- will be built at Rivian’s plant in Normal, Illinois. The company is in talks to invest $5 billion for a second factory in Fort Worth, Texas, Bloomberg reported in August. It’s also assessing options for a plant in Europe that could also build Amazon vans, Bloomberg reported in January.

Other investors in the EV maker include Ford Motor Co., which has invested more than $820 million in Rivian and holds a stake greater than 5%. Ford recenly vacated its Rivian board seat.

For Amazon, the bet on Rivian represents one of its biggest investments, in dollar terms, in another company. The e-retailer’s corporate development group has put cash into startups working on voice technology related to the Alexa digital assistant. Other investments feature companies that are its suppliers or partners. The roster includes investments -- or warrants to buy stock in -- food distributor SpartanNash Co. and air cargo operator Air Transport Services Group Inc.


Chinese electric vehicle maker BYD, backed by Warren Buffett, to raise up to US$1.8 billion in Hong Kong share sale

Chad Bray chadwick.bray@scmp.com
Fri, October 29, 2021

BYD, the Chinese battery and electric carmaker backed by Warren Buffett, is seeking to raise up to US$1.8 billion in a follow-up stock flotation in Hong Kong.

The Shenzhen-based electric vehicle maker aims to sell 50 million new shares in a price range of HK$273.5 (US$35.17) to HK$279.5 each, according to a term sheet seen by the South China Morning Post. That would represent a discount of 5.8 per cent to 7.8 per cent to the HK$296.60 closing price of its H-shares in Hong Kong on Friday.

The new shares would begin trading on November 1 and represent about 1.8 per cent of BYD's market cap.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

BYD plans to use the proceeds from the sale to supplement its working capital, to repay debt, to invest in research and development and for general corporate purposes.

The share sale comes a day after BYD reported that its net profit dropped 27.5 per cent to 1.27 billion yuan (US$199 million) in the third quarter. BYD's shares fell 1.7 per cent on Friday following is earnings announcement the night before.

In August, a mainland brokerage backed by Citic Securities said industry leader BYD should be valued at no less than 1.5 trillion yuan by 2022, or 169 times its projected earnings. The company's market cap was 821.9 billion yuan as of Friday's close, according to Bloomberg data.

On Monday, BYD, which is controlled by its billionaire co-founder Wang Chuanfu, said it had received approval from the Hong Kong stock exchange for the proposed spin off of its semiconductor unit in mainland China.

The company still needs to meet a number of conditions before the spin-off can be implemented, including receiving approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission (CSRC), according to a stock exchange filing.


BYD's chairman and co-founder Wang Chuanfu speaks at the Auto Shanghai 2019 show in Shanghai. Photo: AP alt=BYD's chairman and co-founder Wang Chuanfu speaks at the Auto Shanghai 2019 show in Shanghai
. Photo: AP

The carmaker first announced in May a plan to list BYD Semiconductor, its 72.3 per cent-owned chip-making unit, on ChiNext, a Nasdaq-like technology board operated by the Shenzhen bourse, with the aim of raising 2.69 billion yuan.

However the proposed spin-off in an initial public offering in Shenzhen was put on hold in August after the bourse launched an investigation into the law firm advising on the deal. The exchange suspended more than a dozen other IPO applications at the same time involving the same law firm.

BYD revived its application to list the semiconductor unit last month after filing additional paperwork with Chinese regulators.

Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.
Texas Isn’t Ready for Another Deep Freeze

Mark Chediak and Naureen Malik
Sat, October 30, 2021




(Bloomberg) -- It’s been more than eight months since a glacial chill—the magnitude of which nobody quite anticipated—crept across Texas, forcing power plants offline, freezing natural gas wells and wreaking havoc on every part of the state’s energy system. Millions were plunged into darkness for days. Hundreds of people died. Damages topped $20 billion. And Texas’s leaders vowed to do everything within their power to prevent such a crisis from happening again.

But they didn’t do everything. And now, as temperatures are forecast to start dropping again in America’s second-most populous state, Texas is still at risk of another crippling energy crisis the next time it faces perilously cold temperatures.

When Republican Governor Greg Abbott signed in June a series of reforms intended to shore up the electrical grid that catastrophically failed last winter, he pledged that “everything that needed to be done was done to fix the power grid in Texas.” But one key segment of Texas’s energy system that fell woefully short during February’s deep freeze has gone largely unchanged: the natural gas system that seized up, choked power plants of fuel and led to shortages across the region.

“Texas has not done enough,” said Michael Webber, a University of Texas at Austin professor who specializes in energy. “We are not ready for another cold winter.”

The call for more preparation in Texas comes at a time when energy systems are aging the world over, buckling under the strain of ever-growing demand. Climate change is plaguing them with increasingly extreme weather, and a rapid transition to cleaner power resources has made them more fragile and easier to shock. Europe and Asia are already in the throes of energy shortages that threaten to spread to U.S. shores. And Texas—having been among the first to endure what would prove to be a series of energy crises worldwide—stands out as a test case of what could be done, at least if the political will is there.

When the freak arctic blast hit Texas in February, it sent a shockwave through the U.S. energy capital, triggering a cascade of failures. At its peak, the storm took down nearly two-thirds of the power supply on the Texas grid, causing widespread blackouts and, ultimately, at least 210 deaths. Multiple parts of the system were to blame: Regulators failed to predict the severity of the low temperatures, the grid operator vastly underestimated demand, wind turbines froze and gas, coal and nuclear plants tripped offline.

It’s the gas industry that has experts the most concerned heading into this winter. It’s the No. 1 supplier of power-plant fuel in the state, and dozens of generators reported trouble getting fuel after gas wells and delivery systems froze. For most of the crisis, gas-fired plants accounted for around half of the generation outages, according to data from the Electric Reliability Council of Texas, commonly known as Ercot. And yet, even after a spate of power reforms, there are no gas-sector winterization requirements in place for this winter, or next.

That’s because the oil and gas industry—an outsized influence in Austin—successfully lobbied to limit the scope of the weatherization requirements to only those facilities that a committee deems critical to the state’s power grid, not those supplying gas to, say, generators in other states, industrial users or exports. But that mapping process to decide which of the state’s hundreds of thousands of wells, half a million miles of pipeline and thousands of facilities are critical won’t be completed ahead of this winter. Regulators have until September 2022 to decide who’s on that list, and only then will winterization rules for those facilities be developed, a process that itself can take up to six months. In short, gas winterization mandates aren’t required to be in place until 2023.

That kind of regulatory carve-out isn’t uncommon in a state like Texas, where fossil fuels still reign supreme. The oil and gas industry was Abbott’s top campaign contributor from January 2017 through 2020, giving him $16.5 million, 21% of the total raised, according to a report by Texans for Public Justice, a watchdog group focused on curbing political corruption in the state. Abbott got about $4.6 million from oil, gas and energy interests during the post-legislative session this year, his biggest haul for that period since becoming governor, according to an analysis by the Texas Tribune.

The lack of requirements at gas facilities is in sharp contrast to power plants, which state regulators ordered to fix anything that broke during the storm by Dec. 1. By that same date, power plants will also need to finally meet the winterization standards that were recommended—but never adopted—after a similar storm in 2011 caused massive blackouts. State lawmakers also passed bills intended to reform Ercot and protect consumers from being exposed to sky-high wholesale power prices.

The only mandate for gas companies for this winter, meanwhile, is to register their facilities with utilities as critical infrastructure to protect against, but not necessarily eliminate, the risk of power cuts when the grid is stressed. But even then, there’s a special loophole that allows operators to pay $150 to opt-out of even that registration process.

“Texas is still vulnerable if the gas system is dysfunctional again,” said Neil Chatterjee, a former commissioner at the Federal Energy Regulatory Commission, or FERC, who stepped down this summer. The potential disconnect between power and gas upgrades is setting up the state for potential disaster. “It all must work in tandem.”

By opting not to winterize—a process the Federal Reserve Bank of Dallas estimates costs between $20,000 and $50,000 per new oil and gas well—the gas sector would be saving cash, something investors and lenders have been targeting after a decade of hefty spending and poor returns. Operators are also betting that enough of their own wells will remain open even if rivals’ freeze, potentially reaping eye-wateringly high prices. Due to February’s storm, power companies lost billions of dollars and several went bankrupt; gas sellers, meanwhile, ended up with an $11 billion windfall as demand for limited gas supplies spiked.

“There’s a moral hazard in the gas market where their underperformance was rewarded with unusual profits,” said Webber, who emerged as a prominent voice in the aftermath of February’s deep freeze, pointing out the flaws in Texas’s energy system and what went wrong. “We built our power sector on the assumption that the gas is dispatchable and available, but if you can’t get the gas, the whole system comes down.”

The Texas Railroad Commission, which regulates the oil and gas industry with what critics contend is a light touch, says it’s taking actions to encourage the sector to prepare anyway, even if it’s not being mandated. It sent a notice to gas operators earlier this month urging them to “take all necessary measures to prepare to operate in extreme weather conditions” this year. It’s inspecting sites to create a baseline to decide what the regulations should be, said Jim Wright, one of the group’s three commissioners. “We are in a lot better position” than in February, he said, noting that he’s now talking to the state’s power regulator on almost a daily basis.

Wright acknowledges, though, that the legislation “doesn’t really set deadlines that accurately address this current winter. It does address winters after this one.”

Meanwhile, no one in the sector has been able to estimate what percentage of the state’s gas industry has prepared for winter voluntarily. It’s not even clear if it’s being tracked. A spokesperson for the governor’s office didn’t reply to a request for comment.

“Natural gas companies made billions of dollars. The least they can do is go out there and make sure the state of Texas doesn’t have this situation happen again,” state Senator Jose Menendez, a Democrat, said in an interview, adding that he wants critical parts of the gas system prepared ahead of this winter.

Of course, some gas producers already take precautions. Since it began operating in West Texas, Ovintiv Inc., a Denver-based oil and gas company, regularly installs temporary insulation on pipes and key equipment, injects methanol into natural gas and installs wind walls at its field operations before each winter, according to a company representative. The company still lost production in February, though, due to power cuts.

The degree that a gas producer winterizes, if at all, will come down to the economics of its wells and whether it thinks Texas will see extreme cold in back-to-back winters. So far, most forecasts are for a milder-than-normal season across the southern U.S. due to La Nina conditions, though that won’t prevent the polar vortex that contains icy air above the North Pole from spilling out occasionally. Usually, Texas is too far south to feel those effects, but not always. Besides, last winter was a La Nina, too.

“If the same weather were to occur this winter, I don’t have a lot confidence for the gas industry to produce more gas than the last time around, and I have small confidence that the power plants would perform better,” said Beth Garza, a former utility executive and market monitor who is now a consultant for think tank R Street Institute. The gas industry has “a history of not being there for when they are most needed from the electric sector.”

Todd Staples, president of the Texas Oil & Gas Association, said it’s in the financial interests of gas companies to make sure they are operating and selling their product, adding that many companies are, in fact, winterizing. However, he contends it doesn’t make sense to apply mandates across the whole gas industry since only a portion of it supplies the state’s power sector. Power outages were the main reason for the drop in natural gas production during the storm, Staples said, citing an industry commissioned report on the event.

Still, a BloombergNEF analysis found 52% of the gas volume decline came before Ercot’s first power cut in the early hours of Feb. 15, suggesting frozen equipment was also to blame. Ercot estimates about 12% of power generation failures at the height of the outages were due to fuel supply issues.

“Gas got a little bit of a pass on some of these things, and that industry doesn’t have a market monitor and it’s largely unregulated,” said Carrie Bivens, a former Ercot operations manager who now serves as the independent market monitor for the grid with Potomac Economics. She concedes the industry can’t prepare for every possible situation, especially a “1 in a 100 years” event like what happened last winter. That’s a frequent talking point cited by power and gas regulators and traders: Ercot doesn’t usually have back-to-back cold winters.

Other market reforms are being discussed but won’t be ready for this winter, either. That includes expanding the state grid’s links to neighboring ones—something that could subject Ercot to federal authority. And unless regulators decide to change it, the wholesale power price cap will revert back to $9,000 a megawatt-hour at the start of the year after it was temporarily reduced to $2,000 after the February storm. Additionally, power producers can still seek an exemption “for good cause” if they can’t comply with the new mandates.

FERC Chairman Richard Glick said in September he wouldn’t let Texas ignore or water down federal recommendations to better prepare for cold snaps. FERC is looking at imposing reliability standards but it can’t push weatherization mandates on the gas industry. When asked by Bloomberg News at an October briefing about power plants in the state, Glick was wary. “I don’t think those plants are going to be weatherized before winter. I remain concerned, and I think it’s something we need to act on,” he said.

Texas has a history of sidestepping federal recommendations. After a February 2011 winter storm knocked off nearly 200 power plants in Texas and triggered blackouts for 3.2 million, a report by FERC and the organization that investigates large blackouts, called the North American Electric Reliability Corp., recommended the state consider requiring power plants prepare for winter and set minimum weather-preparation standards for gas producers. It’s those 2011 power recommendations that are now going in effect this winter, 10 years later.

As the days grow shorter, Texans who can’t shake the memory of last winter’s catastrophe aren’t leaving things to chance. Residents are buying backup generators. American Electric Power Co., a utility that serves the state, now has emergency mobile generation on hand. Power producers like Vistra Corp. are stocking up on alternative fuels at their facilities, even as the gas industry enjoys its loophole that lets it sit out upgrades.

With the state enacting too little change for her liking, Texas resident Kelly Hopkins went ahead and installed solar panels and battery storage to her home to avoid future blackouts. “Nothing has been done” to harden the grid, said Hopkins, 50, who teaches early American history at the University of Houston.

During the cold snap, the Hopkins’s lights and heat were out for three and a half days, so she erected a tent in the dining room and filled it with blankets, sleeping bags and mattresses to keep her and her family warm. The panels went up in May. When Hurricane Nicholas blacked out much of South Texas in September, they had lights, laptops, TV and refrigeration while the neighbors were without power for 18 hours.

“Climate change is making things more extreme, and although I don’t think we’ll see cold like that again, hurricanes are going to come and knock the power out,” she said. “Things are going to happen.”
Investors back Shell strategy after Wall Street raider’s swoop


Rachel Millard
Thu, October 28, 2021, 

The company logo hangs at a Shell gas station

Corporate raider Dan Loeb’s plot to break up Shell risks harming its efforts to tackle climate change, top investors have warned, in a sign he may face a struggle to win over the City.

The pugnacious Third Point founder, 59, has argued the FTSE 100 company should split its oil and renewable assets into separate businesses to both drive better returns and greater investment, and stop trying to be “all things to all people”.

Third Point’s $750m (£543m) stake in the $187bn company, revealed this week, amounts to a slim 0.25pc, but analysts warned of a repeat of activist changes in June at US oil major Exxon caused by activist Engine No.1, despite an even smaller stake.

Top shareholders greeted Loeb cautiously, however, warning the integrated business would be difficult to separate and that Shell’s shift towards cleaner energy rests on several cogs working together, as well as cash from oil being re-invested in renewables.

Shell is one of the world’s largest oil, gas and chemicals companies, pumping out more than 887m barrels of oil equivalent in 2020.

Its 87,000 employees work in more than 70 countries, aiding its growth in wind power, hydrogen and carbon capture. It also has more than 40,000 forecourts and a small UK household energy supplier.

One large institutional investor with a stake in Shell of a similar size to Third Point’s, said he could see what the activist was trying to do but added: “I’ve got a number of issues with it ... I think that peeling apart the two businesses would not be easy.

“While the businesses are together, the existing oil and gas business provides cash flow to help feed the new renewables business.

“People talk about energy transition, not energy step change. You need the time and cash flow to affect the transition.

“Maybe what they are thinking is that you can put a big fancy multiple on the renewables business. That doesn’t help the business. That doesn’t help the end goals of decarbonising the energy system.”

The investor added shareholders unhappy with owning a fossil fuel company such as Shell, in an era characterised by its push against climate change, had already sold out. “I don’t feel there is any underlying disquiet” among those who remain, he added.

Separately, Iain Pyle, investment director for UK equities at top 10 Shell shareholder Abrdn, said splitting it up “makes sense as a spreadsheet exercise” and would create share price value, but that “disentangling the value chains in which Shell operates is really tough”.

He added: “I do believe the company's argument: for them to have maximum impact in terms of transition and moving the company and the energy mix forward, you need to work through the whole value chain and need to have it in one company.

“So I would be cautious about splitting it up - even though I can see how it would create value.”

Pyle believes Third Point’s activism is unlikely to result in a break-up of the company but if it means Shell gets “better at communicating the value” in different parts of the business, that would be helpful.

New York-based Third Point’s attack on the Anglo-Dutch firm comes amid a major energy system shake-up as renewables start to replace fossil fuels to tackle climate change. Oil companies are under pressure to cut their emissions and change products, while also delivering consistent returns.

Shell is investing about $2-$3bn per year in renewables and says it is also working with customers to try and change demand as well as supply. It has pledged to cut the carbon intensity of its products to net zero by 2050.

Rivals such as BP have set more headline-grabbing targets such as building 50GW of renewables by 2030 - more than the UK's entire capacity - leaving Shell open to accusations its strategy is less understood by investors.

Third Point accused it of an “incoherent, conflicting set of strategies”. Shell’s London-listed shares remain down on pre-pandemic levels, closing at £17.06 on Thursday.

Addressing the calls for a break-up, RBC analyst Biraj Borkhataria said Shell’s “conglomerate discount is substantial” and reckons the business is worth closer to $250bn on a sum-of-the-parts basis, putting renewables at $10bn and oil production at $68bn.

But he added breaking up the company “could potentially destroy some of the integration benefits of a larger company.”

Chief executive Ben van Beurden, who took the helm in 2014 and led Shell’s £47bn takeover of gas major BG Group in 2017, insisted the company’s strategy was “incredibly coherent” on Thursday as he fought back against rising pressure on fossil fuel producers from several sides.

In May, a Dutch court ordered Shell to cut its emissions faster. The company has also been told it is “not welcome” at the United Nations’ Cop26 climate change conference starting next week in Glasgow, while van Beurden also discovered this week, he said via the press, that Dutch pension giant ABP was ditching fossil fuels, including Shell.

“I don’t think our strategy is failing,” he stressed, complaining of “symbolic” gestures causing investors to ditch fossil fuels. “We have to switch from a carbon intensive system to a carbon-lean system and companies like us need to make that happen.”

He did, however, set out tougher cuts to Shell’s emissions. The company now plans to cut its own emissions in half by 2030. Still, it has not toughened the target for its customers’ emissions, as requested by the Dutch court ruling.

Van Beurden spoke as his company reported a mixed set of third quarter results. Sky-high gas prices helped deliver record $17.5bn free cash flow, but outages and other one-offs meant earnings overall missed analysts’ expectations.

Was he feeling the pressure personally? “I understand we are at a very critical time for the industry, but more importantly also for society to do the right things,” he said.

“Sometimes indeed that comes with personal challenges as well.

“But I think it is something that I carry off, hopefully to good effect but definitely with a great sense of responsibility and personal pride. But the entire company also feels the same thing.”

With Loeb, whose previous targets include Sony and Yahoo, on its back, that pressure is only set to grow.
Profile: Daniel Loeb

Daniel Loeb, the Wall Street mogul calling for a breakup of Shell, is a well-known controversial activist behind campaigns against Sony, Yahoo and Sotheby’s, writes Matt Oliver.

The chief executive of New York-based investor Third Point has built an estimated fortune of $4bn ($2.9bn) by shaking up companies and industries in loud fashion, gaining a reputation for sending pugnacious “poison pen” letters to corporate targets.

In a 2012 missive to internet search giant Yahoo, he accused then-boss, Scott Thompson, of falsely claiming he had a degree in computer science that “undermines his credibility as a technology expert” and “reflects poorly on [his] character”.

Thompson’s qualification was, in fact, in accounting. Loeb claimed to have uncovered the information using a “rudimentary Google search”.

Yahoo blamed the issue on an "inadvertent error" but Thompson was soon ousted and replaced.

Daniel Loeb

Resulting changes at Yahoo, and its share price surge, are credited as one of Loeb’s greatest victories - he netted more than $1bn in profits on his original investment.

But while his crusade against Yahoo could be seen as classic hedge fund play, rooting out vital information that others missed, Loeb’s other campaigns have proved more contentious.

Launching an attack on Sotheby’s the next year, the hedge fund manager likened the auctioneer to “an old master painting in desperate need of restoration” and told chairman and chief executive William Ruprecht that he lacked “innovation or inspiration”.

He also lambasted Ruprecht’s memberships of “elite country clubs” and accused Sotheby’s bosses of holding “extravagant” meals costing “hundreds of thousands of dollars”.

The claims were dismissed by Sotheby’s as “incendiary and baseless”.

That same year Loeb also drew headlines for attacks on Sony, which he said treated its entertainment arm like a “red-headed stepchild” even as films “bombed spectacularly”.

It attracted the ire of Hollywood royalty George Clooney, who accused California-born Loeb of meddling in artistic matters he did not understand.

His battles don’t stop at business. Loeb is said to have outbid rival activist Carl Ihcan for a five-bedroom penthouse in a 39-floor apartment block overlooking New York’s Central Park, paying $45m.

He also reportedly owns a waterfront house in the Hamptons, a $20m seven-bedroom home in Miami Beach bought this year and a $52m, 200-ft long yacht, named “April Fool”.

More recently he has found himself in a row with London-based Asset Value Investors, a shareholder in Third Point, which accused the 59-year-old of "hypocrisy" over the way he runs his own fund. At least he can live a life of luxury, with his wife and son.
Oil Majors Won’t Come Running to Help World Facing Energy Crunch

Kevin Crowley and Laura Hurst
Sat, October 30, 2021, 


I
(Bloomberg) -- The world’s biggest energy companies are producing the most cash in years, but don’t expect them to spend it on bringing on fresh supplies of oil and natural gas to combat shortages in Europe and China this winter.

Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp. confirmed this week that, for the most part, they’ll spend their windfall profits on share buybacks and dividends. Capital expenditures will rise next year, but the increases come off 2021’s exceptionally low base and within frameworks established before the recent surge in fossil-fuel prices.

It’s a step-change from previous energy rallies, such the early 2010s when emerging U.S. shale plays and fears over fossil fuel shortages prompted a massive upswing in capital spending. That boom ended painfully for the industry, with overproduction and a lack of cost control. This time around, Big Oil appears content to take the cash and hand it over to shareholders, who are both weary of poor returns over the last decade and concerned about the companies’ significant climate risk.

“It’s not so long ago they got creamed by prices collapses so it’s not surprising they’re a bit gun shy on capex,” said Stewart Glickman, a New York-based analyst at CFRA Research. “It’s almost like they’re stuck between two extreme populations — the ESG crowd and cash-flow hungry shareholders.”

Producers can satisfy both groups by simply not ramping up spending on fossil fuels. But that’s bad portent for consumers crying out for more supply. Europe and Asia are currently competing for natural gas, sending prices to record levels, while the U.S. and India have asked OPEC+ to produce more oil. China has called on state-owned companies to secure energy supplies at any cost.

Chevron is perhaps the best example of a company turning away from the punch bowl. The California-based oil giant generated the most free cash flow in its 142-year history during the third quarter but intends to keep capital spending 20% below pre-Covid levels next year while increasing share buybacks. Its 2022 capital budget will come in at the low-end of its $15 billion to $17 billion range, according to Chief Financial Officer Pierre Breber, some 60% below 2014 levels.

Low-Carbon Pivot


“Over time the vast majority of the excess cash will return to shareholders in the form of higher dividends and the buyback,” he said Friday on a conference call with analysts.

Even Exxon, until last year the poster child for doubling down on fossil fuels, is now more reticent with its cash. The Texas-based energy giant announced a surprise stock buyback Friday and locked in long-term annual spending in the low $20 billion range, a cut of more than 30% from before the pandemic.

Furthermore, almost 15% of Exxon’s budget will go toward low-carbon investments, a significant departure from its previous strategy and just months after activist investor Engine No. 1 persuaded investors to replace a quarter of its board. The clean energy spending provides “optionality and builds resiliency into our plans,” CEO Darren Woods said.

Shell -- which faces pressure from an activist investor as well after Dan Loeb’s Third Point LLC revealed this week it took a stake in the company -- is even more reluctant about spending on its traditional oil business. Less than half of its capital spending will go toward oil, with the bulk directed at gas, renewables and power.

“We will not double down on fossil fuels,” Shell CEO Ben Van Beurden said this week.

Exxon Targets $10 Billion Buyback as Profits Soar on Oil Rally

Kevin Crowley
Fri, October 29, 2021


(Bloomberg) -- Exxon Mobil Corp. posted its biggest profit in seven years and pledged to spend as much as $10 billion on share buybacks amid a worldwide rally in commodity prices.

Surging natural gas prices and a rebound in refining margins added to already strong oil and petrochemical prices. Exxon earned $1.58 a share during the third quarter, it said in a statement, compared with the $1.56 average estimate among analysts in a Bloomberg survey. Net income, excluding some one-time gains and losses, reached $6.8 billion, the most since 2014.

Exxon raised dividends earlier this week in a demonstration of its re-emerging financial strength after borrowing heavily to sustain payouts and drilling during the pandemic-drive oil-market collapse.

While high commodity prices combined with steep budget cuts to supercharge cash flow in the quarter, bigger questions still loom over Exxon’s fossil fuel-focused strategy, especially after losing an activist-shareholder battle with Engine No. 1 earlier this year.

Exxon is expected to use the bulk of its extra cash to cover dividends and pay down debt, which peaked on a net basis at almost $70 billion at the end of 2020. All four of the company’s major rivals Chevron Corp., TotalEnergies SE, Royal Dutch Shell Plc and BP Plc are using this year’s commodity rally to also buy back shares, through the latter two were forced to cut their dividends last year, unlike Exxon.



Earlier Friday, Chevron reported record third-quarter cash flow and surpassed all Wall Street profit forecasts on the strength of soaring gas and oil-refining returns. Chief Financial Officer Pierre Breber said in an interview that the supermajor is weighing more share buybacks as a result of the windfall.

Exxon Chief Executive Officer Darren Woods is likely to update to the oil giant’s strategy next month after discussions with new directors. A greater focus on the company’s carbon footprint and new emissions targets are expected but more contentious would be how it plans to invest in the future.

The perils of the energy transition for Big Oil executives were underscored this week when activist hedge fund manager Daniel Loeb pushed for a breakup of Shell. The Anglo-Dutch major, which has rejected Loeb’s demands, posted record cash flow on Thursday but disappointed investors when earnings fell well short of expectations.

Woods introduced an aggressive plan to grow fossil fuel production in 2018 that he was forced to abandon during the pandemic. With cash rolling in once again and commodity markets squeezed for supplies, it would seem opportune to restart the investment plan, but shareholders made it clear earlier this year that they want Exxon to refocus long-term plans and accelerate the energy transition.

Exxon, Chevron Eye Billions in Buybacks as Cash Flows Surge

Kevin Crowley
Fri, October 29, 2021

Exxon, Chevron Eye Billions in Buybacks as Cash Flows Surge


(Bloomberg) -- Exxon Mobil Corp. and Chevron Corp. are plowing windfall profits into share buybacks as soaring energy prices boost cash flows.

Exxon will revive repurchases for the first time since 2016, spending as much as $10 billion from next year in a move that surprised analysts. Chevron is considering an expansion of its buyback program after surging natural gas prices and oil-refining returns drove free cash flow to an all-time high in the last quarter. Shares of both companies climbed.

The oil giants are using windfall profits to reward shareholders rather than ramp up spending on new drilling as was done during previous booms. That’s a blow to energy consumers around the world as supply shortages and price spikes spark inflation concerns. Both companies kept 2022 budgets within previously guided ranges.

With commuting and air travel picking up, there’s “strong demand across our products with more recovery expected” during the current quarter, Chevron Chief Financial Officer Pierre Breber said in an interview. “We’re a better company than we were pre-Covid. Costs are down, production is up, and we’re much more capital efficient.”

Exxon earned $1.58 a share during the third quarter, compared with the $1.56 average estimate among analysts in a Bloomberg survey. Net income, excluding some one-time gains and losses, reached $6.8 billion, the most since 2014.

Exxon rose 0.6% to $64.71 at 11:39 a.m. in New York, bringing the year-to-date advance to 57%. Chevron climbed 1.1%.

Double-Digit Returns

Another surprise was Exxon’s announcement of a fourfold increase in low-carbon investments just months after activist investor Engine No. 1 replaced a quarter of the oil giant’s board.

“We expect double-digit returns across all our businesses and we don’t look at this business really any differently,” Chief Financial Officer Kathryn Mikells said during a conference call.

Crucially, Exxon’s long-term capital budget is unchanged, indicating less cash available for fossil- fuel projects.

Chevron’s quarterly profit excluding one-time items was $2.96 per share, which surpassed every analyst estimate compiled by Bloomberg. Earnings were so strong that the company’s net-debt-to-capital ratio has fallen below its target of 20% to 25%, a key threshold that could spur an increase in stock repurchases beyond the current $2 billion to $3 billion a year range, Breber said.

Click here to follow our Top Live blog for Chevron and Exxon earnings

“We’re fast approaching a net-debt ratio where we could increase our buyback guidance range even further,” he said.

Chevron reduced its full-year capital-budget target to $12 billion to $13 billion from $14 billion, citing pandemic-related project deferrals and reduced costs in the Permian Basin.

The oil explorer has thus far avoided the attentions of activist investors like those that have targeted Exxon and, more recently, Shell. Chevron Chief Executive Officer Mike Wirth is betting on a strategy of enriching shareholders and increasing production, while at the same time addressing climate concerns by lowering a controversial measure of carbon emissions.

Free cash flow of $6.7 billion in the quarter allowed Chevron to fund a dividend that’s among the top 10 in the S&P 500 Index, and reduce debt. But the company bought back just $625 million of shares in the period, the mid-point of its targeted range.

Chevron shares rose as much as 2.3% in pre-market trading in New York while Exxon gained as much as 1.6%.

What Bloomberg Intelligence Says

“Focus shifts to growth, with Exxon betting on Guyana, the Permian and downstream to carry the load over the next two years. ESG pressures may shift future spending. In light of its massive $15 billion annual dividend, we believe asset sales and a lower debt load would be needed if Exxon turns toward greener investments.”

--Fernando Valle, senior energy analyst, and Brett Gibbs, associate analyst

A big reason why oil supermajors are generating record cash flow is because of deep budget cuts made during the pandemic-driven oil-market collapse of last year. Chevron’s year-to-date spending was 22% lower than the year-earlier period.

But with record natural gas prices in Europe and Asia, and robust crude prices everywhere, there are growing incentives to increase investments in fossil fuels.

Marijuana entrepreneurs typify generational shift on $24B industry, but disparities remain

Marquise Francis
·National Reporter & Producer
Sat, October 30, 2021


Twenty-five years after California became a pioneer in the marijuana industry, as the first state in the U.S. to make medical marijuana legal, almost every other state in America has now legalized cannabis either for medical or recreational use. It’s one of the fastest-growing markets in America that’s expected to surpass $24 billion in revenue this year, and eclipse $70 billion by 2028.

Estimates show that as many as 55 million Americans use marijuana regularly and a growing majority of Americans support its legalization on the federal level. In fact, 66% of Americans believe cannabis should be legal, according to a Gallup poll from October 2019, a dramatic shift from decades prior. By comparison, just 12% of Americans supported legalization in 1969, according to Gallup.

The numbers reveal a once gaping generational divide is closing as stigmatization of the drug slowly becomes undone with an increase in education. Research has shown marijuana can help relieve a number of ailments from chronic pain to depression, while health risks include mental health problems and respiratory disease.

Kika Keith and her daughter, Kika Howze, owners of Gorilla Rx, the only Black woman-owned dispensary in Los Angeles, represent two generations of marijuana entrepreneurs aligned on the benefits of the plant. After opening their shop this year in the Crenshaw neighborhood, the duo credits intrinsic generational values for the shop’s early success.

“We come from a very strong-rooted family ... [and marijuana] was something that was a part of our family for so many generations and brought healing,” Howze told Yahoo Finance. “And that's what we hope to be able to do for our community.”

“To be able to educate others not just based off of what we know from smoking the plant, but also what the topical wellness benefits for pain medication are … really takes us back to where the plant came from as a healing source,” she said.

Though cannabis has been used to treat ailments for at least 3,000 years, federal agencies like the Food and Drug Administration have been resistant to classify marijuana as safe or effective in treating any medical condition. However, the FDA does “recognize the potential opportunities that cannabis or cannabis-derived compounds may offer.”

Former NBA star Al Harrington, CEO of his own cannabis company Viola, knows the healing power of marijuana well. He credits it for helping subside many of the ailments his grandmother had, including glaucoma, more than 10 years ago.

“It took me two days to convince her, but when she finally tried it, she experienced instant relief,” Harrington told Yahoo Finance. “The first thing she did was she went downstairs, and she read her Bible. I actually walked in on her reading the Bible, and she was crying. She said that was the first time she had read the words in the Bible in over three years.”

Black representation in the industry

It’s stories like this, and others like Mike Tyson saying he wished he smoked marijuana his entire career, that have increased the popularity of cannabis nationwide. But just as fast as the industry has grown, disparities have also emerged. People of color account for less than a fifth of owners or stakeholders at marijuana companies, according to a 2017 survey. And Black people occupied less than 5% of leadership roles in the industry.

Dozens of marijuana dispensaries (stores) have opened along the Highway 50 lakeshore drive since the legalization of recreation cannabis was passed by voters in 2016 as viewed on October 17, 2021, in South Lake Tahoe, California. The state of California raised $817 million in tax revenues on cannabis last year and is expected to surpass $1 billion this year. (Photo by George Rose/Getty Images)More

For critics, the disparities are emblematic of a continuous cycle of people of color being left out of profits on something they were once historically criminalized for.

“We were pioneers in these spaces,” Harrington told Yahoo News earlier this year. “And when you look at us today in 2021, we don't have any representation. We have no ownership. So with cannabis, I feel like Black people that have found success in this space, we have to continue to speak on this. We cannot expect that they're just going to do the right thing because they haven't done the right thing historically.”


Black people have also been overcriminalized for marijuana dating back to the early 1900s, and arrests ramped up in the 1960s under President Nixon as part of the War on Drugs. Despite the same usage rates, Black people are nearly four times as likely to be arrested for marijuana than white people, according to the American Civil Liberties Union (ACLU). Today more than half of all drug-related arrests are attributed to marijuana.

It’s a troubling trend that Harrington hopes he can help course-correct with his marijuana brand. He’s advocated for more opportunities and resources on behalf of marginalized groups with politicians, including Senate Majority Leader Chuck Schumer (D., N.Y.) and Sen. Cory Booker (D., N.J.), who have lent their support. But there’s still mounting opposition in Congress.


A customer receives information about cannabis as she buys THC leaves at the Weed World store on March 31, 2021, in Midtown New York. New York Governor Andrew Cuomo signed legislation legalizing recreational marijuana on March 31. 2021.
 (Photo by KENA BETANCUR/AFP via Getty Images)

“The War on Drugs has been a war on people — particularly people of color,” Schumer, Booker and Sen. Ron Wyden (D., Ore.) said in a joint statement earlier this year. “Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country.”


Viola, named after Harrington’s grandmother, is currently in six states and expects to be in nine by the end of 2022. But even with his access to capital after a 16-year NBA career, Harrington understands how challenging it is to break into the space.

“This industry has been founded on our backs,” he said. “And we just feel like 3% is not the proper representation for our people.”
‘Education is the key’

Keith believes education is a major part of leveling the playing field. She was able to open up Gorilla Rx thanks, in large part, to LA’s Social Equity Program, which promised to provide a more equitable ownership in the space.

But once she started going through the program in 2017, Keith quickly found various obstacles. She pushed back on many of the requirements and still, the slow rollout meant she’d have to pay monthly rent of $12,000 on a space that was left vacant for three years while she acquired a license. So Keith turned the space into a classroom.

“Education is the key,” she said. “We really have to look at both access to capital and education to properly prepare us to run a compliant business.”

Marquise Francis is a national reporter and producer with Yahoo News.

In India, Tamil Nadu eyes coal power reboot despite local fears


A view shows a shelved 1.6-gigawatt coal-fired power project in Uppur

Sudarshan Varadhan
Fri, October 29, 2021

UPPUR, India (Reuters) - India's southern Tamil Nadu state is considering restarting a shelved 1.6 gigawatts (GW) coal-fired power project in Uppur, two state government officials said, as its debt-ridden utility seeks to expand its coal fleet to address rising power demand.

The state, India's second most-industrialized, epitomises the country's approach to balancing energy security and tackling climate change as Prime Minister Narendra Modi prepares to head to Glasgow for the U.N. COP26 summit https://www.reuters.com/business/cop: the energy-hungry nation may build more new coal-fired plants https://www.reuters.com/world/india/exclusive-india-may-build-new-coal-plants-due-low-cost-despite-climate-change-2021-04-18 as they generate the cheapest power, despite calls to deter use of the dirty fuel.

The project was shelved in March after the National Green Tribunal temporarily suspended an environmental permit granted to the project, citing concerns from local farmers and fishermen over land acquisition, the height of a bridge carrying effluents and the coal being used.

After the order, the Tamil Nadu Generation and Distribution Corp Ltd (TANGEDCO) had decided to shift the project to Udangudi, about 200 kilometres away from Uppur, where a 1.3 GW coal-fired plant is already being built https://www.reuters.com/business/energy/cop26-aims-banish-coal-asia-is-building-hundreds-power-plants-burn-it-2021-10-29.

However, the new state government, which came into office in May, is now working on restarting the power plant in Uppur. More than 30% of the work is complete and at least 10 billion rupees ($134 million) has already been invested, two officials from project operator, Tamil Nadu Generation and Distribution Corp Ltd's (TANGEDCO), told Reuters.

"The previous (shifting) decision was taken in haste. So much money has been invested. We are now trying to complete all formalities and restart the project," one of the officials said. The declined to be named as they were not authorised to speak to the media on the issue.

While Tamil Nadu is among India's top renewable energy producers, it is also constructing the most number of coal-fired plants nationwide, according to London-based environmental think tank Carbon Tracker.

"New coal projects are also essential because many of our power plants are old, and need to be phased out in a few years," said one of the TANGEDCO officials.

Unlike many parts of Europe or the Americas, India does not have access to cheap domestic gas, which can be used to generate reliable electricity supplies when renewable energy generation drops after sunset or when wind power output goes down.

'FAIR COMPENSATION' The officials said TANGEDCO has allayed fishermen's concerns at the Uppur plant by offering to increase the height of a bridge carrying effluents, so that fishing boats can pass under it, and is working on fixing land acquisition issues.

Local administrative officials in Uppur have already begun compensating residents for taking over their land for the project. Reuters reviewed three such notices.

P Thivakaran, a local political leader who has organised protests against the power plant, said the project affected the flow of water into reservoirs, adding that livelihoods of hundreds of area residents were at stake as adequate compensation was not given.

"We understand electricity is important, but those affected need to be compensated fairly," he said. The project could displace 300-400 families in the region, locals say.

The officials expect the first of the two units of the Uppur project to be completed in late 2025 or early 2026, while the first unit at Udangudi is estimated to be ready by 2024. Both plants will meet 70% of their coal needs through imports.

Indonesia, Australia and South Africa are the biggest suppliers of coal to the world's second largest importer.

($1 = 74.7650 Indian rupees)

(Reporting by Sudarshan Varadhan; Editing by Kenneth Maxwell)