China says U.S. refused to share information on downed Chinese balloon




Fri, February 24, 2023 

BEIJING (Reuters) - China's foreign ministry said on Friday that the United States had refused to reply to a Chinese request for information on the balloon that it had shot downed off the coast of South Carolina earlier this month.

The Chinese balloon, which Beijing denies was a government spy vessel, spent a week flying over the United States and Canada before President Joe Biden ordered it to be shot down. The episode strained further ties between Washington and Beijing, leading America's top diplomat to postpone a trip to China.

"The United States, from the recovery of the (balloon) remains to the analysis of the (balloon) debris, has completely acted on its own and in a surreptitious manner," the foreign ministry's spokesperson Wang Wenbin told a regular briefing.

"China early on through protected consular channels clearly demanded the United States notify (China) on the progress (of recovery of the balloon), but the United States refused to respond."

Wang's comments were made in response to a question about an ongoing U.S. investigation into the balloon.

China said that the alleged spy balloon is a civilian airship used for meteorological purposes, and that it was accidentally blown off course into U.S. airspace.

The United States has said a Federal Bureau of Investigation Laboratory in Virginia is analysing debris from the balloon for "counterintelligence exploitation."

Both the State Department and the Pentagon have said they had reached out to their Chinese counterparts after the suspected spy balloon was shot down on Feb. 4, in an attempt to keep lines of communication open.

The Chinese defence ministry later said it declined a proposed phone call with the Pentagon because the United States had not created the "appropriate atmosphere".

(Reporting by Eduardo Baptista; Editing by Simon Cameron-Moore)

How much money did India save in a year by buying Russian fuel?

Niharika Sharma
Fri, February 24, 2023 

Image: Stringer India (Reuters)

The West-led sanctions on Russia’s oil trade following the Ukraine invasion benefited India the most. In less than a year, the country has saved an estimated $4 billion (30,000 crore rupees) by importing Russian crude oil.

The amount is possibly much higher. For instance, in May 2022, supplies from Russia were priced at $16 cheaper than the average Indian imported crude oil barrel of $110. By then, Russia had already reduced $30 on every barrel sold to India, Quartz had reported.

India has subsequently bought Russian oil well below the $60-a-barrel cap imposed by the West.

“For some deals this month, the price for Urals (Russia’s flagship crude) in Indian ports, including insurance and delivery by ship, has fallen to around minus $12-$15 per barrel versus a monthly average of dated Brent, down from a discount of $5-$8 per barrel in October and $10-$11 in November,” Reuters reported on Dec. 14, 2022, citing unnamed sources.
India is among Russia’s topmost buyer

Russia changed the target market for its oil supplies to Asia after the US and Europe Union imposed sanctions after its invasion of Ukraine. Till then, Europe was its largest market.

Having ignored the West’s concerns, India now plays a significant role in keeping Russia’s oil balance sheet afloat. The country depends on imports to meet 85% of its petroleum needs. Private players like Reliance Industries and Nayara Energy account for more than half of its total inbound shipments.

This year, Indian refiners cumulatively imported around 1.3 million barrels every day during January 1-15. Private firms accounted for 60% of this, energy intelligence firm Vortexa estimated.
datawrapper-chart-KlTTP

Russia’s increasing oil share in the Indian market

By June 2022, Russia’s share in India’s oil imports bucket had risen from a mere 1% in February 2022—before the Ukraine war—to 18%. Soon after, Russia became India’s second-largest crude oil supplier after Iraq.

The constant lowering of prices compelled Iraq also to follow suit, although that didn’t stop Russia from becoming India’s top supplier.

India stood its ground in the face of criticism from the West over this association.

“Russia has been a steady and time-tested partner. Any objective evaluation of our relationship over many decades would confirm that it has actually served both our countries very, very well,” foreign minister S Jaishankar said in Russia in November 2022, confirming a continuance of policy.

Quartz

Crypto Regulatory Initiatives Show SEC’s Dominance Among US Regulators: JPMorgan

Will Canny
Thu, February 23, 2023 

Jesse Hamilton


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Recent regulatory initiatives have shown the Securities and Exchange Commission’s (SEC) dominant position in the U.S. in regulating the digital assets space, JPMorgan (JPM) said in a research report last week.

Its actions have also shown the SEC’s bias in viewing most crypto, with maybe bitcoin (BTC) as the only exception, as securities, the report said. It noted that SEC Chair Gary Gensler started pushing back against implementing special rules for the crypto industry in September, arguing that most cryptocurrencies should be classed as securities and thus be regulated under existing securities laws.

“Given the above it should not come as a surprise that the SEC looks at the offering of a staking service as being similar to offering any other type of security,” the note said. This opens the way for other firms offering staking services to have to be registered as a securities platform with the SEC, the report added.

The bank predicted more regulatory actions on stablecoin issuers, custody and protection of investors’ digital assets, and on the unbundling of broker/trader/lending/clearing/custody activities.

It also expects mandated regular disclosure, reporting and auditing of reserves, assets and liabilities across major crypto entities, analysts led by Nikolaos Panigirtzoglou wrote. These regulations will lead to “convergence of the crypto ecosystem towards the traditional financial system over time,” he added.

“Staking business should shift more towards direct staking for institutional investors and more towards decentralized (DeFi staking) alternatives for retail investors,” the note said. DeFi is an umbrella term for a variety of financial applications carried out on a blockchain.

Ether (ETH) will likely see additional selling pressure on Ethereum following the forthcoming Shanghai upgrade, as crypto exchange Kraken has 1.2 million ETH staked on the network, a significant amount of which is owned by its U.S. clients. Adding the 1 million ether from staking rewards that could be withdrawn immediately after the upgrade, the downside risk to ether becomes even more significant, the note added.

Read more: Bernstein: SEC Tightening of Crypto Regulations Is Not an Existential Threat.

Crypto Long & Short: Washington Plays Tennis With Crypto


Glenn Williams, Nick Baker, Jodie Gunzberg
Wed, February 22, 2023 

This week, Glenn Williams Jr. examines what politicians are saying about crypto regulation in Washington, D.C.

Then, Jodie Gunzberg, managing director of CoinDesk Indices, talks about the crypto sectors that continue to thrive despite the regulatory crackdown.
– Nick Baker

You’re reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday.

A Descent Into Partisanship for Digital Assets Won’t Benefit Anyone

I took the time last week to tune into the Senate hearing on cryptocurrencies titled “Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets.” Quarterbacked by Democrat Sherrod Brown and Republican Tim Scott, it focused on the need for increased regulation within the digital asset space, punctuated by recent industry collapses.

At times I question the importance of even monitoring these events. It’s getting to the point where if you’ve heard one, you’ve heard them all. One concern, however, is whether the regulation of digital assets is drifting more and more into partisan waters, which I think is negative for all involved.

If the discussion around cryptocurrencies devolves into a scenario where one’s stance can be accurately predicted by which side of the aisle they sit on, it will have sunk to a level of simplistic discourse; a new technology like crypto deserves better than that. For that reason I often find political discussions around crypto as more akin to political theater.

But if you’re going to operate within a sector, it makes sense to have an idea of which way the regulatory winds are blowing. It certainly makes sense to challenge your own ideas with ones that may be counter to your own. I would encourage all to watch it, even at 1.25x speed – which I may or may not have done.

(Highcharts.com)

Chairman Brown’s testimony appeared to target cryptocurrencies in general. The overarching theme from my perspective is that the sector itself is not just vulnerable to fraud, but intrinsically emblematic of it. My guess is that if I sat down with him and discussed cryptocurrencies, it would largely revolve around its usage in criminal activity and the “greater fool theory” – the idea that the only value crypto has to the owner is being able to sell it to a bigger fool in the future at a higher price. It’s worth noting, however, that his testimony concluded with a list of pre-existing financial regulatory methods. Examining where crypto fits within an already existing framework at least implies that a place is seen for it.

Ranking member Scott’s testimony seemed to center around the failure of current regulators, with Securities and Exchange Commission Chairman Gary Gensler singled out specifically. An acknowledgement that financial innovation is an engine for growth was stated, along with an emphasis on the need for existing regulation to be conducted in a timely and appropriate manner. My guess is that if I sat down with him and discussed cryptocurrencies, he’d ask me if I knew where Gary Gensler was.

From there, testimony was provided by Lee Reiners of the Duke Financial Economics Center, Professor Linda Jeng of the Georgetown Institute of International Economic Law and Professor Yesha Yadav of the Vanderbilt University Law School. Each provided their views on cryptocurrencies, discussing the harnessing of innovation, development of a self-regulatory organization (SRO) and the banning of cryptocurrencies outright. I think some of their suggestions warrant consideration, while other suggestions seem openly hostile to the asset class itself.

For example, a focus on clear disclosures by crypto exchanges makes perfect sense to me. A well-informed investor is prone to making decisions based on an underlying idea they believe to be true. It doesn’t guarantee that the idea is right, but at least it’s rooted in something.

The prohibition of the commingling of funds is also something that makes sense. I can’t think of a good reason why customer funds and firm funds shouldn’t be separated. It’s been the case for years within traditional finance, and for good reason.

The creation of self-regulatory organizations (SRO) within crypto rang as a viable option to explore as well. What also stood out is that it was presented as a practical (though not perfect) way to improve the current regulatory framework in short order. SROs exist within traditional finance, so a blueprint for implementing them already exists.

I take issue with the notion that bitcoin being 14 years old means it’s not a “new” asset class. While bitcoin’s genesis block was mined in 2009, a significant amount of trading activity has occurred within the last three to four years.

Moreover, it strikes me as incongruent to state bitcoin’s existence since 2009, but only noting its performance as an asset since 2021. The fall from $69,000 to $21,000 should absolutely be stated. But its rise in price from less than 10 cents to $21,000 since 2009 should be mentioned as well if the objective is to be balanced.

Still, what was most encouraging about the witness testimony is that, agree or disagree, I’m not able to automatically determine their political affiliation based on their recommendations. I don’t know if I can say the same for the people asking the questions, however.

There’s a cadence that is beginning to present itself in these hearings that mirrors that of a tennis match – one where politicians alternate back and forth between pro-crypto and anti-crypto statements, directing the bulk of their questions to whichever witness aligns most with their political party’s’ decided stance.

I sincerely hope that this does not become the norm. Extreme partisanship would be detrimental to all parties involved, because it will likely remove the nuance necessary to allow for technical innovation, while protecting individual investors from bad actors.

Ultimately, investor protection, financial inclusion and innovation are all necessary elements for healthy growth within the digital asset space. As members of the U.S. Congress work to achieve these goals, I hope that they view them more from the lens of individuals than as members of a political party.

– Glenn C. Williams Jr., CMT

Bitcoin, DeFi and Computing Thrive Amid Crypto Crackdown

After bitcoin’s (BTC) best January since 2015, it has retreated because the U.S. Securities and Exchange Commission is cracking down on crypto, and inflation was slightly hotter than expected. Despite these challenges, crypto continues to dramatically outperform traditional asset classes.

The CoinDesk Market Index (CMI), the broad measure of crypto returns, surged 6.5% in February through Feb. 16. Stocks haven’t done nearly as well, with the S&P 500 up only 0.5%. The Bloomberg U.S. Aggregate Bond Index fell 2.2%, while the Bloomberg Commodity Index lost 3.9%.

A key reason why crypto is doing so well: Bitcoin is on a tear because the Ordinals Protocol essentially brings non-fungible tokens (NFT) to that blockchain. “This has demonstrated a new, high-value use case for the longest-running cryptocurrency chain,” CoinDesk Chief Content Officer Michael J. Casey recently wrote.

(CoinDesk Indices. Bloomberg. Data ending 2/16/2023)

The big gain in the CoinDesk Bitcoin Price Index (XBX) shows the enthusiasm. But many other digital assets performed even better. There are 158 total digital assets in the CMI, and 109 of them did better than bitcoin. These outperforming assets were concentrated in the CoinDesk Digital Asset Classification Standard’s (DACS) DeFi and Computing sectors.

Although they make up only 2% and 1.4%, respectively, of the CMI’s weight, their gains stand out. Month to date, Computing is up 23.5%, giving it a gain of 91.5% so far this year. DeFi is up 12.4% in February and nearly 66% in 2023. Computing has been driven by excitement over artificial intelligence (AI), with ChatGPT and Bing dominating the conversation. DeFi is the sector many are looking to for greater security and infrastructure.

Although Computing and DeFi are relatively small by market cap, there are many constituents in each sector: Computing has 23 assets and DeFi has 39. So opportunities for big gains (alpha, for you pros) are plentiful.

(CoinDesk Indices. Data ending 2/16/2023)

However, bitcoin is still in high demand as the most established, largest, most-liquid asset with the longest track record and deepest derivatives market. So, in order to mix bitcoin with some of these potentially high performers, some market participants prefer the CoinDesk Large Cap Select Index (DLCS), which is similar in concept to other market-cap-weighted flagship indexes to measure various asset classes.

Still, the digital asset market is in its early days, so the concentration is high currently with five assets (which are in two sectors) accounting for 70% of the index’s market capitalization. Therefore, some prefer a broader sector exposure through the CoinDesk Market Select Index (CMIS) that spans five sectors with at least five market-cap-weighted assets from each sector.

– Jodie Gunzberg, CFA, managing director of CoinDesk Indices
Takeaways

From CoinDesk’s Nick Baker, here’s some recent news worth reading:

MT. GOX: Once upon a time, in the early days of crypto, there was an exchange called Mt. Gox (which stood for Magic: The Gathering Online eXchange, just to clue you into the vibe). The business collapsed spectacularly because of a 2014 hack. The ensuing bankruptcy process has dragged on and on, but there was important news last week that may signal the end is in sight: The two largest creditors picked the repayment option that could allay fears the restructuring will tank the price of bitcoin (BTC).

CANADIAN CRACKDOWN: Canada is close to boosting requirements on crypto exchanges, putting it toward the front of the pack in terms of tangible action in the aftermath of FTX’s collapse. Surely, it will not be the last to do something, though.

SHANGHAI VOLATILITY: The Ethereum Merge didn’t stir up ETH prices much back in September. But there’s reason to believe that Shanghai, the Ethereum upgrade that will allow staked ETH to be unstaked, could generate volatility.


JUMP CRYPTO: Last week the Securities and Exchange Commission didn’t identify the company that made more than $1 billion from the terraUSD/luna ecosystem before it collapsed. (The unnamed company wasn’t accused of wrongdoing.) But sources told CoinDesk that it’s Jump Crypto, which declined to comment.


BRAGGING: CoinDesk journalists won one of the biggest prizes in journalism, a George Polk Award, for the scoop that led to FTX’s collapse and two explosive followups.

To hear more analysis, click here or here for CoinDesk’s “Markets Daily Crypto Roundup” podcast.

 

Nikola Stock Is Sliding. Sales Disappointed and Deliveries Fell.

By Al Root
Updated Feb. 23, 2023

Electric and hydrogen truck technology company Nikola reported fourth-quarter sales that fell far short of what Wall Street had expected.

Courtesy Nikola

Sales at Nikola NKLA –5.58% fell short of expectations by a mile, sending the stock lower despite data showing the electric and hydrogen truck technology company is still making progress in producing vehicles.

Thursday morning, Nikola (ticker: NKLA) reported an adjusted fourth-quarter loss of 37 cents a share on sales of $6.6 million. Wall Street was looking for a 43-cent loss on sales of about $32 million.

Not only were sales lower than expected, Nikola delivered only 20 of its first commercial product, the Tre battery-electric truck, to dealers in the fourth quarter. In the second quarter, when deliveries began, the figure was 48 vehicles. It was 63 in the third quarter.

Still, Nikola produced 133 Tre trucks in the quarter. That seemed at first to have satisfied investors, lifting the stock in premarket trading, but those gains evaporated. Shares finished down 5.6% at $2.20. The S&P 500SPX +0.53% and Nasdaq CompositeCOMP +0.72% gained about 0.5% and 0.7%, respectively.

Nikola “is mired in a difficult operating environment, presenting the company with a variety of challenges as it works to grow its business,” wrote Battle Road Research analyst Be Rose. He cited improving competition including the Tesla (TSLA) semitruck which recently began shipping. “Additionally, Nikola is in a bit of a bind, as it remains more than a year away from launching the Tre Fuel Cell Electric Vehicle, while its Tre BEV currently on the market lacks robust interest.”

Rose rates the shares at Sell, but doesn’t have a price target for the stock. Overall, about 38% of analysts covering Nikola stock rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%.

For 2023, analysts are projecting a loss of about $1.25 a share on sales of $271 million. They also expect Nikola to use about $450 million in cash in 2023. Nikola finished the year with about $350 million on its balance sheet.

Coming into Thursday trading, Nikola stock was up about 8% year to date, but down about 66% over the past 12 months.

EV maker Nikola's dismal deliveries slam revenue, shares
Thu, February 23, 2023 

U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin

(Reuters) -Nikola Corp missed fourth-quarter revenue targets by a wide margin on Thursday as it delivered far fewer electric trucks than it produced, dragging the company's shares 7% lower in early trading.

The automaker produced 133 trucks and delivered just 20 vehicles to dealerships in the fourth quarter as companies dialed back spending to better cope with rising costs and a looming recession.

In a spot of optimism, however, Nikola outlined plans to boost deliveries and reduce costs in 2023.

It expects to deliver between 250 and 350 Tre battery electric trucks this year, compared with 131 deliveries in 2022, and forecast at least 125 fuel-cell electric truck deliveries in the fourth quarter.

The company also plans to start installation of an automated battery pack assembly line, which it expects will deliver about $105,000 in cost savings in battery modules and packs for each Tre BEV truck by the fourth quarter of the year.

Loss-making U.S. startups such as Nikola and Lordstown Motors Corp have been battling costs associated with ramping up production as they seek to grab a share in the commercial vehicles market.

In its third-quarter results, Nikola had said it would miss its goal of delivering at least 300 semi-trucks in 2022 and declined to issue fresh forecasts. Its stock has slumped about 66% over the past 12 months.

Revenue of $6.6 million for the fourth quarter ended Dec. 31 came in below analysts' estimates of $32.1 million, according to IBES data from Refinitiv.

Net loss widened to $222.1 million from $158.9 million a year earlier.

(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)

Nikola Announces Additional Hyla Branded Hydrogen Refueling Station In California

Electric-truck maker Lordstown pauses production, deliveries

Thu, February 23, 2023 


(Reuters) -Lordstown Motors Corp will temporarily stop production and deliveries of its pickup truck Endurance, of which it has only made 31 units for sale, the electric-vehicle maker said, citing performance and quality issues with some components.

Shares tumbled 11.8% to $1.08 in early trading on Thursday after the company also said it would voluntarily recall 19 vehicles delivered to customers or being used internally.

Lordstown had set a target to deliver 50 vehicles in 2022 and more in 2023 out of the planned first batch of 500 units when commercial production started in September.

The company did not make it clear when it would resume production and deliveries.

Investor Foxconn, which also manufactures the Endurance trucks, did not immediately respond to a Reuters request for comment.

Vehicles waiting for shipment and in process at the manufacturing plant will also be fixed, the company added.

The EV company said in January it expected production to be slow through its first quarter due to supply chain constraints, particularly with respect to the availability of hub motor components.

(Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila)

Lucid sees disappointing 2023 EV production as orders drop amid weakening demand

Akash Sriram and Abhirup Roy
Wed, February 22, 2023 

 A Lucid Air electric vehicle is displayed in Scottsdale, Arizona

(Reuters) - Lucid Group Inc on Wednesday forecast 2023 production well short of analysts' expectations and reported a major drop in orders during the fourth quarter amid weakening demand, sending the electric carmaker's shares down 11% after hours.

The Newark, California-based company, which was already battling supply chain and logistics issues and struggling to deliver cars, was hit by aggressive price cuts sparked by Tesla Inc that lured consumers away from its luxury cars amid rising interest rates and soaring inflation.

"There's a lot more competition than a year ago ... a lot more EVs becoming available at lower price points than the Lucid Air vehicle," said Garrett Nelson, an analyst at CFRA Research. "There's probably a lot of frustration from customers having to wait for so long to get the vehicles they ordered."

Lucid said it expects to produce 10,000 to 14,000 luxury electric vehicles this year. Analysts on average expected the company to make 21,815 cars, according to Visible Alpha.

The company, backed by Saudi Arabia's sovereign wealth fund, Public Investment Fund, delivered 4,369 cars last year, far below the 7,180 units it produced.

"We've gotten past the major bottlenecks limiting manufacturing, but this had some impact on the demand we generated early on, and this has been exacerbated by the challenging macroeconomic environment," Lucid CEO Peter Rawlinson said on a call with analysts, after the company reported fourth-quarter revenue that missed expectations.

Price cuts by Tesla and Ford Motor Co have made it harder for rivals such as Rivian Automotive Inc and Lucid to grab share in an industry competing for shrinking consumer wallets.

Lucid said it had more than 28,000 orders as of Feb. 21, down 6,000 reservations from the third quarter, after it delivered about 1,900 vehicles and saw cancellations. That was despite Lucid's offering a discount of $7,500 on Feb. 9 for purchases of certain variants of the Air sedan before March 31.

Finance chief Sherry House said Lucid would not publish quarterly reservation numbers going ahead.

This year, the company will focus on improving production and deliveries, and will take a "vigorous and comprehensive" look at driving down operating and manufacturing costs.

House said Lucid would incur capital expenditures of between $1.5 billion and $1.75 billion in 2023. That's a 40% jump from 2022, but well below analysts' expectations of $2.24 billion.

Lucid reported a cash balance of $1.74 billion in the fourth quarter, after raising $1.52 billion in December. At the end of the third quarter, it had $1.26 billion in cash reserves.

Revenue rose to $257.7 million in the quarter ended Dec. 31 from $26.4 million a year earlier. Analysts on average had expected sales of $302.6 million, according to IBES data from Refinitiv.

The company's net loss narrowed to $472.6 million, or 28 cents per share, from a loss of $1.05 billion, or 64 cents per share, a year earlier.

Shares of Lucid fell as much 10.6% in extended trading. The stock fell 82% last year after Lucid halved its production forecast due to supply chain issues.

(Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shinjini Ganguli, David Gregorio, Lincoln Feast and Leslie Adler)

Lucid shares drop as EV maker misses 2023 delivery expectations

Rebecca Bellan
Wed, February 22, 2023 


Luxury electric vehicle maker Lucid Motors missed Wall Street estimates for fourth-quarter and full-year 2022 revenue, as well as 2023 production and delivery goals, causing the company's stock price to tumble almost 10% in after-hours trading.

That's a particularly rough outcome for a company that's been battling supply chain issues and has had to slash production targets in the past. Lucid had just been on the up after producing 7,180 vehicles last year, exceeding its own production guidance of 6,000 to 7,000 vehicles. Of those vehicles, 4,369 were delivered in 2022. When the company announced this success last month, shares popped briefly.

On Wednesday, Lucid set 2023 annual production targets of 10,000 to 14,000, which is roughly half of the 20,000 to 22,000 deliveries analysts had expected for the year.

Lucid's revenue also fell short of expectations. In the fourth quarter, the company reported revenue of $257.7 million, which is quite shy of analyst expectations of $302.61 million, per Yahoo Finance data. Analysts had expected $661 million for full-year revenue, but Lucid delivered $608.2 million.

Lucid ended the year with about $4.9 billion in total liquidity, which the company says will fund operations into the first quarter of 2024. That includes $1.7 billion in cash and cash equivalents. However, the company's free cash flow is -$938,403.

Lucid burnt a lot of money in 2022 -- the company's loss from operations in Q4 was $749.7 million and in 2022 was $2.6 billion.

Investors were probably also concerned about the lowered demand for the Lucid Air sedan. Lucid said it has 28,000 preorders for the Air, which is down from the 34,000 it reported in Q3. Similar to Tesla, the company recently announced a $7,500 discount for certain Air sedans to boost sales because the $87,400 car -- and that's just the base price -- doesn't qualify for the $7,500 federal EV tax credit.

Lucid noted that the 28,000 reservation number doesn't include the up to 100,000 vehicles over the next 10 years the government of Saudi Arabia has agreed to buy. The country's Public Investment Fund (PIF) holds about 62% stake in Lucid.

There has been recent speculation that the PIF would buy out the remainder of Lucid and take it private, but Lucid wouldn't confirm or deny the rumors during Wednesday's earnings call. By the way, this is the same fund that had been in talks with Tesla CEO Elon Musk to take Tesla private back in 2018. Lucid also plans to build a factory in the country with a planned annual capacity of 155,000 EVs a year.

"As we look ahead to 2023, we'll continue to focus on strong capital discipline, leaving no stone unturned for every cost optimization," said Sherry House, Lucid's chief financial officer, in a statement. "We're gearing for growth, while simultaneously taking a comprehensive look at reducing costs."

This article has been updated with information revealed during Lucid's earnings call.

Lucid earnings: Stock slides as EV-maker misses on revenue

Pras Subramanian
·Senior Reporter
Wed, February 22, 2023 

Lucid stock is sliding following the EV-maker's huge revenue miss for the quarter on deliveries that fell well short of expectations.

Lucid reported Q4 deliveries of 1,932 vehicles, missing estimates for 2,813. The company's adjusted loss per share, however, was narrower than forecast. In after hours trade on Wednesday, the stock was down as much as 9.5%.

For the quarter, Lucid reported:

Q4 Revenue: $257.7M vs $314.9M (est.)

Q4 Adjusted EPS: ($0.28) vs ($0.40) loss (est.)

Though revenue grew quarter over quarter, it was still a significant miss for the company.

Last month Lucid announced it produced 3,493 vehicles for the quarter and 7,180 for the year, topping its forecast of 6,000-7,000 vehicles for the year, however that forecast had been slashed multiple times last year. Lucid’s original forecast for 2022 had them building 20,000 vehicles for the year.

Lucid Group, Inc. (LCID)  View quote details

Lucid sees Q1 revenue of $600-$640 million, in-line with the ~$620 million estimated by analysts. Lucid also forecasts its 2023 production to be 10,000 to 14,000 vehicles.

"Last year was a challenging year for everyone, yet despite the extraordinary supply chain and logistics challenges, the team persevered with an unrelenting focus on delivering what we believe is the best luxury sedan on the market," said Lucid CEO Peter Rawlinson in a statement.

"Lucid Air is the quintessential luxury sedan, and our goal in 2023 is to amplify our sales and marketing efforts to get this amazing product into the hands of even more customers around the world."

A Lucid Air electric car with built-in Alexa is displayed in an Amazon booth during CES 2023, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. January 6, 2023. REUTERS/Steve Marcus

Lucid announced it had 28,000 preorders for the Air sedan, down from the 34,000 it reported in Q3 in a sign demand for its cars has waned among some consumers.

Earlier this month, Lucid announced its own $7,500 "credit" for certain Air sedans as a way to boost sales as its sole product doesn’t qualify for the $7,500 federal EV tax credit.

Management may address whether this incentive lifted pre-orders in the past few weeks on its call with investors.

Another big question likely to be addressed on the earnings call is the future of the company’s ownership structure, and its status as a public entity.

Lucid’s stock shot up a month ago on speculation Saudi Arabia’s Public Investment Fund (PIF) would buy out the remainder of the company it doesn’t own and take it private. The PIF’s stake in Lucid sits at approximately 65%.

The Lucid/PIF partnership goes beyond a financial one, however — last year Lucid announced it would be building a factory in Saudi Arabia, with a planned annual capacity of 155,000 EVs a year.

—

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

How do rich people avoid taxes? 

Wealthy Americans skirt $160 billion a year in tax payment

Medora Lee, USA TODAY
Wed, February 22, 2023 

More than $160 billion in tax revenue is lost every year because the top 1% finds ways to avoid paying “their fair share,” according to academic research cited by the Treasury Department.

What tactics, though, do uber-wealthy people use to avoid the taxes?

It turns out that not only can they afford tax attorneys, accountants, and estate planners, but there are also some tax benefits that require lots of money to even access. We’ll shed light on some of those strategies available only to the extremely rich.

“As long as it’s done legitimately and there’s no fraud, I’m okay with it,” said Ed Smith, senior tax and estate planner at Janney Montgomery Scott.

Tips from rich people on how to save: These are the tax strategies used by uber rich Americans

Important info: Are you ready to file your taxes? Here's everything you need to know to file taxes in 2023.
How much do rich people avoid in taxes?

According to U.S. Treasury estimates, the top 1% of wealthy people underpay their taxes by $163 billion annually.
How the super-rich avoid paying taxes

Foundations


Gifting


Family offices


Investments


Moving residency

1. Foundations: Some begin with as little as $250,000, but a more feasible amount begins in the millions.

Immediate income tax deduction of up to 30% of adjusted gross income (AGI) for your contribution but only distribute about 5% each year for charitable purposes. Because that 5% is calculated off the previous year’s assets, the first year requires no distribution.


Avoid high capital gains tax and grow money tax efficiently. You can deduct the full fair-market value of the stock you contribute and not pay capital gains tax. If the foundation sells, it only pays 1.39% excise tax on the capital gains.

Example: Investing $250,000 in a private foundation each year for five years, earning 8% annually, yields about $1.43 million after excise taxes and minimum annual distributions of 5% to charitable activities. Contrast this with $1.38 million had the money been invested in a taxable account and paid capital gains taxes along the way.

Building solid foundations: 'There are many paths': Some NFL players find efficient ways to give back

Famous tax return: What we know about the 6,000 pages of Trump tax returns, Republican response and more: recap

2. Gifting:

Annual gift tax exclusion. In 2022, the limit was $16,000 and in 2023, it’s $17,000 per person. “If you have three kids and 10 grandkids, times two (me and spouse), that’s $34,000 per year to all 13 people that’s out of your estate and a tax-free gift,” said David Handler, Trusts and Estates Practice Group partner at Kirkland & Ellis LLP.


Lifetime gift tax exclusion, which is separate from the annual gift. For 2023, it’s $12.92 million ($25.84 million for a married couple), and that amount generally rises each year based on inflation.

Note: The 2017 Tax Cuts and Jobs Act (TCJA) doubled the lifetime gift tax amount until December 31, 2025. The amount reverts to the pre-TCJA amount of $5 million, adjusted for inflation, unless Congress extends it.

Do you need to pay taxes on a gift?

3. Family office: Typically, you need at least $100 million in assets to create a single-family office.

If properly structured, it can offer personalized services that include investment management, financial planning, estate and tax planning, philanthropic investing, concierge services, and more for family members with all the tax deductions of a business. The TCJA stopped individual taxpayers from deducting investment, accounting, tax and similar advisory fees until 2025, but a family office might be able to take them.

“Big wealthy families have the capability to do this if they all agree and get along by making it a business and deducting what would be non-deductible,” said Smith.

Bonus: if your kids have skills that can be used in the family office or other business, you can hire them and pay them a hefty salary that’s expensed for the business and passed on to the kids, Smith said.

Family work: Family businesses: 8 rules for working with your relatives that will keep you on speaking terms

Nepo babies: Jamie Lee Curtis, 'OG Nepo Baby,' says the label is designed to 'diminish' and 'hurt'

4. Investments:

The average U.S. chief executive salary as of Jan. 26 was $812,100, according to Salary.com. How can that be when we always hear that CEOs earn millions per year?

In contrast to the lower 99% who earn most of their income from wages and salaries, the top 1% earn most of their income from investments. From work, they may receive deferred compensation, stock or stock options, and other benefits that aren't taxable right away. Outside of work, they have more investments that might generate interest, dividends, capital gains or rent if they own real estate.

Note: Real estate investments offer another benefit because they can be depreciated and deducted from federal income tax -- another tactic used by wealthy people.

Calculating income: What is income tax? What to know about how it works, different types and more

Real estate investing: Looking for new investment options? Here's what to know about real estate beyond homeownership

5. Changing residency:

“Jake Paul promoted it with a whole new section of the population,” said tax attorney Adam Brewer.

Professional boxer and American social media personalities Paul and his brother Logan, who is also an actor and wrestler, moved to Puerto Rico partly to avoid high American taxes.

Puerto Rico is particularly attractive because U.S. citizens who become bona fide Puerto Rican residents – simply relocating doesn’t count -- can keep their U.S. citizenship, avoid U.S. federal income tax on capital gains, including U.S.-source capital gains, and avoid paying any income tax on interest and dividends from Puerto Rican sources.

Normally, U.S. taxpayers would have to give up their U.S. citizenship or green card to reap federal tax benefits.

Taxing states: State taxes can be complex if you choose to work in a different state. Here's what to know.

Tax escape: Want to relocate? What to know about moving to Canada and Mexico

Not everyone’s ready to take that leap, though. ”A lot of people move to avoid state income tax,” Brewer said.

If you're a big earner, you could benefit from no income tax especially since the Tax Cuts and Jobs Act capped at $10,000 how much state and local taxes (SALT) you can deduct from your federal taxes through 2025. If Congress doesn’t act to keep this cap, SALT deductions will revert to unlimited.

States without income tax:

Alaska


Florida


Nevada


New Hampshire


South Dakota


Tennessee


Texas


Washington


Wyoming
Can we get rich people to pay more taxes?

These are just a handful of ways ultra-wealthy people can legally avoid taxes. Although President Joe Biden proposed a national wealth tax when he took office, that's gone nowhere and now some states are trying to impose their own.

California, Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York and Washington are introducing proposals to tax the rich. Each state has its own approach, but typical strategies include taxing assets and lowering the threshold for estate taxes.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.

This article originally appeared on USA TODAY: How the rich avoid taxes using strategies available only to them

Freeport LNG Restart And $2 Natural Gas Put This LNG Giant's Earnings Beat In Focus

KIT NORTON
02/23/2023

Cheniere Energy (LNG), the largest U.S. exporter of LNG, topped fourth-quarter financial estimates early Thursday. The report lands as a volatile natural gas market has gas prices at their lowest levels since 2020, and as Freeport LNG, a key U.S. liquefied natural gas export facility, prepared to end an eight-month pause in exports. Cheniere Energy stock surged Thursday.

Cheniere Energy reported $9.08 billion in Q4 revenue, up 38% from last year, with EPS of $15.78. Ahead of earnings, analysts forecast EPS of $6.02, up from a loss of $5.22 a year ago.

Cheniere's Revenue Doubles

This was the second consecutive quarter Wall Street predicted booming profits for Cheniere Energy. In Q3, LNG reported a net loss of $9.54, sharply below analysts expectations for a profit of $5.58 per share. Analysts expected Cheniere Energy Q4 revenue to increase 22% to $8.03 billion.

The Houston-based company is the largest producer of liquefied natural gas in the U.S. and one of the largest LNG operators in the world. Its services range from gas procurement and transport to vessel chartering and delivery. Cheniere owns and operates liquefied natural gas terminals near Corpus Christi, Texas.

For the full year, Cheniere earned $5.64 per share, up from a loss of $9.25 in 2021.

 Meanwhile, Cheniere revenue more than doubled to $33.43 billion in 2022.

Cheniere Energy stock soared 9.1% t0 161.31 Thursday during market trade. On Wednesday, LNG shares edged up 2.7% to 147.77. The stock is now trading more than 19% above an early January low, in a consolidation begun in November.

LNG shares rank 36th in IBD's Oil & Gas-Transport/Pipeline industry group. The group ranks No. 38 among the 197 industry groups tracked by IBD. Cheniere Energy stock has a 39 Composite Rating out of 99. The stock also has a 51 Relative Strength Rating. The EPS Rating is 24 out of 99.

Natural Gas Below $2

Natural gas futures prices rose modestly Thursday, after sliding on Wednesday below the $2 per million British thermal units. That was the first undercut of the $2 mark since September 2020. Natural gas prices have declined more than 45% since the beginning of 2023 and are down around 80% from their August, 2022 peak of $10.

The latest Energy Information Administration data also shows U.S. natural gas stockpiles are at 2.266 billion cubic feet. This is up 17% compared to last year and nearly 9% above the five-year average. Meanwhile, the amount of natural gas flowing to U.S. LNG export plants rose to a 10-month high last week, according to the EIA.
Freeport LNG Is Back

U.S. gas supplies started to back up after an explosion and fire shut down Freeport LNG's Quintana, Texas export facility on June 8. The loss of export capacity led to a gas price peak in August, after which prices veered into a steep slide.

On Tuesday, the privately held Freeport said regulators approved the restart of commercial operations.

The Federal Energy Regulatory Commission gave Freeport LNG permission to restart two of three liquefaction trains, which compress natural gas into condensed, super-chilled liquid. Freeport LNG expects to increase production to 2 billion cubic feet per day (bcf/d) — about 15% of total U.S. LNG export capacity — over the "next several weeks."

However, the facility's third liquefaction train still requires regulatory authorization before it can be brought back online. The first LNG production and ship loading from the facility began on Feb. 11, Freeport LNG reported Tuesday.

"Returning to liquefaction operations is a significant achievement for Freeport LNG," CEO Michael Smith said in a statement.

The unexpected shutdown of the facility reduced U.S. LNG exports, and caused a sudden loss of demand for natural gas. That, in turn, left surplus gas on the U.S. market, allowing U.S. utilities to inject higher-than-expected reserves into stockpiles for the winter.

Freeport repeatedly pushed back its timeline to resume operations. The impact of the facility's restart on natural gas markets, demand and prices is not clear.

U.S. Poised To Become Top Exporter

The U.S. is set to become the largest LNG exporter in 2023, according to a new report from U.K.-based Wood Mackenzie. In 2022, the U.S. was the third-largest exporter of LNG with 76.4 million metric tons per annum. The resumption of Freeport LNG's facility positions the U.S. to export 89 million metric tons this year, surpassing Qatar and Australia, according to Wood Mackenzie.

Based on the combination of projects already under construction and momentum of potential projects, U.S. LNG capacity could grow between 70 million metric tons per annum-190 million metric tons per annum before the end of the decade.

Simon Ekpa: Nigeria's Ipob faction leader arrested in Finland


Chiagozie Nwonwu - BBC News, Lagos
Thu, February 23, 2023 

A controversial leader of a Nigerian secessionist movement has been arrested at his home in Finland, the BBC has confirmed.

Simon Ekpa allegedly used social media to incite violence and called for a boycott of Saturday's Nigerian poll.

He leads a faction within the Indigenous People of Biafra (Ipob), which is fighting for a breakaway state in south-eastern Nigeria.

Nigeria's government had asked Finland to act against him.

A leading newspaper in Finland, Helsingin Sanomat, said that one of its reporters, who had gone to interview Mr Ekpa, saw him being led out of his home by police.

Mr Ekpa had called for a sit-at-home protest from 23 February until after the election.

In 2022, a BBC investigation identified Mr Ekpa as one of the "media warriors" of Ipob, who were allegedly using social media to call for violence.

He did not respond to BBC requests for comment at the time.

Mr Ekpa has declared that his group is "in a revolution and visible state of war".

He had also called for a five-day sit-at-home last December, warning that those who failed to comply should "blame" themselves "for whatsoever that happens" to them.

Nigeria election graphic

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Nigeria election graphic

Australians urged to support Indigenous recognition ahead of referendum

A depiction of the Australian Aboriginal Flag is seen on a window sill in Sydney

Thu, February 23, 2023 
By Jill Gralow and Praveen Menon

ADELAIDE/SYDNEY (Reuters) - A First Nations group leading the push for the constitutional recognition of Australia's Indigenous people called on all citizens on Thursday to vote in favour of the change to help bring the country together.

Australia is preparing for a landmark referendum to change its constitution to include an Indigenous "Voice", which is a representative body that can advise parliament on policies affecting the Aboriginal and Torres Islander people.

The more than 800,000 Indigenous people and their ancestors have inhabited the land for about 65,000 years. But there is no mention of them in Australia's constitution.


Dean Parkin, director of "From the Heart", a campaign group, said voting yes was the referendum was a chance for all Australians to connect.

"It means you get to connect your sense of what it means to be Australian to the oldest continuous culture on Earth," he told an audience in Adelaide where the campaign was launched.

"It is a very small thing, it's a modest thing, and yet very profound."

The government is expected to introduce a bill in parliament in March outlining the proposed changes to the constitution. Once approved in parliament, the referendum will be put to Australians. The only way to change the constitution is by holding a referendum.

"We are kicking off a process that is going to result in millions of conversations between now and the referendum," Parkin said.

"It's time, history is calling," another speaker said at the event.

The referendum is one of Prime Minister Anthony Albanese's key initiatives and he has staked much of his political capital on it.

There have been 44 proposals for constitutional change in 19 referendums in Australia, but only eight have been approved.

In the last referendum in 1999, Australians voted against changing the constitution to establish the Commonwealth of Australia as a republic with the British monarch and Governor-General being replaced by a president appointed by parliament.

(Editing by Nick Macfie)

Factbox-Five things to know about Australia's planned Indigenous referendum


Indigenous Australians maintain presence at the Aboriginal Tent Embassy in Canberra

Thu, February 23, 2023 
By Praveen Menon

(Reuters) - Australia's government plans to hold a referendum between August and December this year on recognising the nation's Indigenous people in its constitution.

The Aboriginal and Torres Strait Islander people, who represent about 3.2% of Australia's population, are currently not mentioned in the constitution.

Here are five things to know about the referendum:

PROPOSED CHANGES TO THE CONSTITUTION

Prime Minister Anthony Albanese has proposed adding these three sentences to the constitution:

* There shall be a body, to be called the Aboriginal and Torres Strait Islander Voice.


* The Aboriginal and Torres Strait Islander Voice may make representations to Parliament and the Executive Government on matters relating to Aboriginal and Torres Strait Islander Peoples.

* The Parliament shall, subject to this Constitution, have power to make laws with respect to the composition, functions, powers and procedures of the Aboriginal and Torres Strait Islander Voice.

WHAT IS THE PROPOSED REFERENDUM QUESTION?

Albanese has said the referendum question to be put to Australians should be as simple and clear as: "Do you support an alteration to the Constitution that establishes an Aboriginal and Torres Strait Islander Voice?"

The question has not been finalised and more clarity on this is expected in the coming months.

HOW DOES THE REFERENDUM WORK?

The government will introduce a bill in parliament in March outlining the proposed changes to the constitution.

This will be scrutinised by a parliamentary committee.

Once approved in parliament, it will be sent to the Governor General, the local representative of the British monarch, who issues a writ for a referendum.

HOW MANY VOTES ARE NEEDED?

To change the constitution, the government must secure what is known as a double majority in the referendum.

That means more than 50% voters must vote in favour nationally, plus a majority of voters in a majority of the states must back the change.

Votes of people living in the Australian Capital Territory (ACT), the Northern Territory regions, and any of Australia's external territories, count towards the national majority only.

Poll turnout will be high as voting is compulsory.

HOW HAVE PAST REFERENDUMS FARED?

There have been 44 proposals for constitutional change in 19 referendums, and only 8 of these proposals have been approved.

In the last referendum in 1999, Australians voted against changing the constitution to establish the Commonwealth of Australia as a republic with the British monarch and Governor-General being replaced by a President appointed by a two-thirds majority of members of parliament.

(Reporting by Praveen Menon; Editing by Himani Sarkar)

Explainer-What is Australia's Indigenous 'Voice to Parliament' campaign?


Members of Koomurri Aboriginal Dance Troupe participate in a traditional Australian Aboriginal smoking ceremony as part of celebrations for Australia Day, which marks the arrival of Britain's First Fleet in 1788, in central Sydney

Thu, February 23, 2023 
By Praveen Menon

SYDNEY (Reuters) - Australia plans to hold a federal referendum later this year to constitutionally recognise its Aboriginal and Torres Strait Islander people through the establishment of a representative Voice that will provide non-binding advice to the parliament.

Here's what you need to know about Australia's 'Voice to Parliament' campaign:

WHO ARE AUSTRALIA'S INDIGENOUS PEOPLE?

Aboriginal and Torres Strait Islander people are the Indigenous people of Australia.

They represent about 3.2% of its population. The more than 800,000 Indigenous people and their ancestors have inhabited the land for about 65,000 years. They comprise several hundred groups that have their own histories, traditions and languages.


WHAT ARE THE ISSUES?

Australia's Indigenous population shrank after the British colonisation in 1788 as they were dispossessed of their land, exposed to new diseases, forced to work in slave-like conditions, and killed by colonisers.

The marginalisation of Australia's First Nations people has continued until recent years.

Aboriginal people track below national averages on most socio-economic measures and suffer disproportionately high rates of suicide, domestic violence and imprisonment. Their life expectancy is about 8 years lower than non-Indigenous people.

One in three Indigenous children were forcibly removed from their families over 1910 to the 1970s in a bid to assimilate them into white society. The government apologised for the so-called 'Stolen Generation' in 2008.

ARE OTHER FORMER BRITISH COLONIES BETTER?

First Nations people in other former British colonies continue to face marginalisation, but some countries have done better in ensuring their rights.

Canada recognises the rights of its Indigenous people under the Constitution Act 1982.

New Zealand created Maori seats in parliament, allowing the indigenous population to choose to vote for candidates for these seats or participate in the general election.

Te reo Maori has been recognised as an official language and is used in schools, universities and public offices.

HOW DID THE VOICE REFERENDUM COME ABOUT?

Indigenous people began to be included in Australia's census figures after a referendum to amend the constitution in 1967, more than 60 years after it was established as a nation in 1901.

In 2017, about 250 First Nations representatives gathered at the sacred monolith landmark of Uluru in central Australia and produced the Uluru statement from the Heart, which calls for a First Nations Voice enshrined in the Constitution.

The conservative government at the time rejected the call.

In 2022, Labor's Anthony Albanese became prime minister and said Australians would have their say in a referendum to include an Aboriginal and Torres Strait Islander Voice to Parliament.

Australia has so far only passed eight out of 19 referendums.

WHO IS FOR AND AGAINST THE VOICE?

A poll by The Australian newspaper showed 56% of voters support the change in the constitution, while 37% oppose it.

The referendum is one of Albanese's key issues and he has staked much of his political capital on it.

Left-wing Greens party, Independent lawmakers, several welfare groups, national religious and ethno-religious groups support the referendum.

But there are those who oppose it on both sides of the political divide.

Outspoken Indigenous leader Lidia Thorpe quit the Green party over concerns about the Voice proposal. She wants a treaty between the government and indigenous people, similar to what exists in New Zealand and Canada.

The conservative Liberal Party has not said if it would support a "yes" vote and the rural-based National Party said it would oppose. The Liberals and the Nationals have a long-standing coalition agreement.

A "no" campaign, or "Recognise a Better Way" campaign, has proposed to set up an all-party parliamentary committee to focus on the rights of native title holders instead of the referendum.

(Additional reporting by Lucy Craymer; Editing by Himani Sarkar)

Californians voted for two progressive policies. Now, corporations want to undo them | Opinion




Tefere Gebre, David Huerta
Thu, February 23, 2023 

When corporations spend countless dollars, deceive California voters and veto public policy, that’s an assault on our democracy.

Last year, Californians won two major legislative victories: a public health buffer zone from harmful oil drilling and a fast food minimum wage council. Both of these policies provide better working conditions and quality of life as well as cleaner air for millions. Both policies are incredibly popular, both won in the Legislature and both were signed into law by Gov. Gavin Newsom.

Yet today neither are enshrined in law. Why?

Before these laws could be implemented, the oil industry and multinational corporations spent millions of dollars to gather signatures for “referendums” to suspend these laws unless voters affirm them at the next general election — where millions more can and will likely go toward deceptive advertising to sway voters.

Opinion

The secretary of state only determined that the referendum on Senate Bill 1137 had enough signatures to appear on the 2024 general election ballot after oil interests spent more than $20 million to challenge the 3,200-foot buffer zone the bill would implement between oil drilling and sensitive sites like homes, schools and hospitals.

Researchers have known for decades that oil drilling emits toxic pollution that negatively impacts human health (we’re talking about asthma, respiratory disease, cancer, preterm births and higher risk for infant mortality). Common sense public health policy is life-altering for millions of Californians who live and work within 3,200 feet of an oil well. The referendum paused the law, and with a ballot measure in 2024 it could end this lifeline for the future.

Fast food workers were dealt a similar blow when the secretary of state qualified the referendum on Assembly Bill 257, which would have created the infrastructure for California’s over 700,000 workers in the notoriously exploitative fast food industry to negotiate wages, hours and safer working conditions. By paying for signatures, fast food corporations accomplished what they couldn’t do in the legislative process: Stop workers from having a greater say in reforming the industry. This law hasn’t yet taken effect, squashing dreams of a more fair workplace.

These examples reveal a serious threat to our democracy. The increasing use of paid signature gatherers injects a profit incentive to deceive voters about what they’re signing, as recent reports confirm.

There is evidence that some voters who signed the referendum to overturn the buffer zone were told it would prevent oil drilling near schools, when the opposite was actually true. Likewise, some voters signing the fast food corporations’ referendum were enticed by the idea of raising workers’ wages, when it actually limits workers’ ability to negotiate for them.

For too long, corporations have been able to effectively veto legislation through the expensive referendum process, all to the benefit of various shareholders and the detriment of people’s health and prosperity. Hardworking, low-income California workers and families — the same people these two laws would protect — don’t have access to the cash flow that large corporations do.

It’s time to fight back as fellow workers and families because our well-being is more important than profits.

We’re determined to maintain our progress on critical environmental and worker empowerment policies and to support California voters by demanding transparency. Together, we’ll hold signature-gathering firms to a higher standard, and improve the referendum process for voters — not corporations.

Bullies don’t just exist on school playgrounds, they exist in our politics. They hide in plain sight and in back rooms, buying the laws they want. But grassroots power overcame corporations twice to win these legislative victories, and we’ll win again by defending them.

Tefere Gebre is the chief program officer at Greenpeace USA and the former executive vice president of the AFL-CIO. David Huerta is the president of SEIU California, which represents 700,000 California political and electoral workers to build a more just and equitable state.

Gaston County filmmaker exploring aliens in new film


Kara Fohner, The Gaston Gazette
Thu, February 23, 2023

Writer David Richardson and director Shelly Teare are producing a film called "Alien Abduction," which will be filmed in Gaston County.

After a host of calls about UFOs, a woman disappears. Her husband, a police officer, thinks she was abducted by aliens.

That's the premise of a new film that will be made by Gaston County indie filmmaker David Richardson, who owns Chapel Grove Films.

The film, titled "Alien Abduction," will be around 10 minutes long.

"When our story opens, the local police have been swamped over several days with a sudden rash of calls about UFO sightings and the supposed 'abductions' of local residents," Richardson said. "Generally the police consider them all crank calls, but Sgt. John Rockland takes them seriously – he's an avid UFO hunter. So when his wife suddenly disappears, he's convinced she's been abducted by aliens. And he means to find her."

Rockland goes looking, Richardson said, "and what he finds is worse than anything he could have imagined."

Chapel Grove Films was founded around 20 years ago, and since then, Richardson has made feature length films, short films, and music videos.

Richardson, who lives in the Crowders Mountain area, wrote the original script for "Alien Abduction" around a decade ago for an online screenwriting contest. There are only two onscreen characters, the police officer and an alien, but the police officer's wife can be heard speaking in the film.

Putting a film like that together is a "time intensive process," Richardson said. It involves finding the right people, the right location, props, a wardrobe, and more.

Richardson's friend Shelly Teare is directing "Alien Abduction," which will be filmed at the home of one of her friends.

Richardson and Teare met in 2021 when Richardson went to a sleep clinic, where Teare works, and the two began talking about his films. He later reached out to her because he had an idea for a film that takes place at a sleep center, and their relationship blossomed from there.

"Writing is really my passion," Teare said, adding that producing and directing are new to her.

The lead actors in "Alien Abduction" are Jeff Smith, who plays the police officer, and Gregory Rodes Jr., who plays the alien. Both are from South Carolina, and Richardson found them online: "the same way he finds anyone these days."

The film will be shot on March 3, and post production work will take at least a month – "only because I still have a full-time job that sucks up a lot of my time," Teare said.

While "Alien Abduction" is a short film, "we're going to try to expand it into a larger story," Richardson said. But first, "we're just going to get it out there and get it on the film festival circuit."

This article originally appeared on The Gaston Gazette: Gaston County filmmaker exploring aliens in new film