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How the tale of Reddit, GameStop, Robinhood is really about 5 big trends – Yahoo Canada Finance

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As Wisconsin’s Johnson weighs future, Trump ties take a toll

MADISON, Wis. — After President Donald Trump lost his reelection bid, most Senate Republicans, his Justice Department and the courts dismissed or disputed his baseless claims about a “stolen election.” Not Wisconsin Sen. Ron Johnson. The GOP senator used his chairmanship of the Senate Homeland Security Committee to highlight Trump’s allegations, claiming millions of Americans “have real, legitimate suspicions that this election was stolen” and worrying about “so many irregularities here.” That sort of fealty to Trump has endeared Johnson to the far-right base in his state, but it could prove costly if he decides to seek a third term in 2022. As Johnson weighs whether to run again, his embrace of Trump’s anti-democratic campaign to overturn the election results already has angered some mainstream Republican allies, and is poised to motivate Democrats who have ridden opposition to Trump to new strength in the state. Observers note that Johnson, who rose out of the tea party movement more than a decade ago, has often behaved like a senator from a solidly red state. But November’s election demonstrated that Wisconsin, which Democrat Joe Biden won by fewer than 21,000 votes, is anything but. The fight for his seat will be among the most competitive races next year. “I think if the election were a week from now he would be in a world of hurt,” said Fond du Lac County Republican Party Chair Rohn Bishop. Bishop criticized fellow Republicans like Johnson who parroted claims of illegal election activity, even as he remains a Johnson backer. But he notes that Johnson is at risk of losing moderate voters critical to winning. “It may hurt him with the suburban voters. … The election wasn’t stolen, and it’s hard to convince people they should vote for you when you try to throw away their legally cast ballots.” Johnson has long been aligned with Trump’s hard-line policies and politics. He led the push to investigate Biden’s son Hunter and rarely broke with the White House. Still, some Republicans were surprised to see the senator lend credence to Trump’s post-election schemes, which included an attempt to throw out the ballots of 238,000 voters in the majority-Democratic areas of Milwaukee and Madison. Johnson’s hearing on Dec. 16 to look into unfounded election fraud complaints largely perpetuated Trump’s baseless claims. And on Jan. 6, just before the U.S. Capitol was stormed, Johnson objected to counting the Electoral College votes from Arizona. The editor of the conservative website Right Wisconsin published a scathing column hours before the riot, saying that Johnson was on a “reckless path” by questioning the integrity of the election and that he should retire and would lose if he ran again. After the riot, Johnson did not vote to object. Still, the Milwaukee Journal Sentinel, Wisconsin’s largest newspaper, called for Johnson to resign for “stoking an insurrection.” Johnson responded with a column in the newspaper calling the editorial “unhinged and uninformed.” The Journal Sentinel took the rare step of annotating his response, providing 19 footnotes with additional context, fact checking and corrections. The Wisconsin State Journal, the state’s second largest newspaper, has also called for Johnson’s resignation, and the anti-Trump Republicans behind the The Lincoln Project have targeted Johnson for defeat, citing his support for election conspiracy theories and comparing him with disgraced former Wisconsin U.S. Sen. Joe McCarthy. Johnson remains popular with the GOP grassroots, a key factor as he mulls whether to run again, said GOP strategist Brian Reisinger, who worked on Johnson’s 2016 campaign. He noted that Johnson has been able to overcome naysayers who didn’t give him much of a chance of winning, first against then-incumbent U.S. Sen. Russ Feingold in 2010 and again in a 2016 rematch. “There’s a lot of people who look at Ron Johnson, and they see the political durability that he’s had over the years despite being a dead man walking twice before,” Reisinger said. Johnson in 2016 pledged not to seek a third term, but backed off three years later, saying he wanted to see how the 2020 election turned out. He has also said he’s considering running for governor in 2022. Johnson, 65, has said in recent weeks that he has not yet made a decision. “My bias has always been (to serve) two terms and go home,” Johnson told the Milwaukee Journal Sentinel last month before Democrats won a pair of Georgia runoff elections to take majority control of the Senate. “That continues to be my preference, but at the same time, the Senate is kind of a firewall against total control by Democrats, which would be, I think, a very bad thing for this country.” Johnson and his spokesperson Ben Voelkel declined to comment on his plans. Republicans already have three Senate vacancies to defend. Richard Burr of North Carolina, Pat Toomey of Pennsylvania and Rob Portman of Ohio have said they will not run again in 2022. GOP Sen. Chuck Grassley of Iowa, who turns 89 in 2022, is also on the ballot, and two-term Missouri Republican Roy Blunt has not said whether he’ll seek a third. If Johnson retires, it likely would be a free-for-all on both sides. A number of Republicans are eyeing a run for either Senate or governor, depending on what Johnson does. Potential Republican Senate candidates include U.S. Rep. Mike Gallagher, former U.S. Rep. Sean Duffy and Kevin Nicholson, who lost a 2018 Republican Senate primary. The list of Democratic hopefuls includes Lt. Gov. Mandela Barnes, the state’s first Black lieutenant governor, state Treasurer Sarah Godlewski and state Sen. Chris Larson of Milwaukee. Alex Lasry, the senior vice-president to the Milwaukee Bucks who helped spearhead the successful effort to get the 2020 Democratic National Convention in Milwaukee before the coronavirus sent the event nearly entirely online, is also considering a run. Lasry is the son of billionaire hedge fund manager and Democratic bundler Marc Lasry and could potentially self-finance his run. Another potential candidate is Steven Olikara, founder and chief executive of the non-profit Millennial Action Project. Outagamie County Executive Tom Nelson has already declared his candidacy. Scott Bauer, The Associated Press

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Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

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Tesla Promises Cheap EVs by 2025 | OilPrice.com



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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

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Meta shares sink after it reveals spending plans – BBC.com

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Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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