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Trump donors among the first U.S. companies awarded with coronavirus relief loans – Globalnews.ca

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As much as $273 million in federal coronavirus aid was awarded to more than 100 companies that are owned or operated by major donors to U.S. President Donald Trump’s election efforts, according to an Associated Press analysis of federal data.

Many were among the first to be approved for a loan in early April, when the administration was struggling to launch the lending program. And only eight businesses had to wait until early May before securing the aid, according to the AP’s review of data released Monday.

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The Trump-connected companies obtained the aid through the Paycheck Protection Program, which extends a lifeline to small businesses struggling to navigate the pandemic. Fast-food chains like Muy Brands, oil and gas companies and white-collar firms were all granted a slice of more than $659 billion in low-interest business loans that will be forgiven if the money is used on payroll, rent and similar expenses.

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All told, the Trump supporters who run these companies have contributed at least $11.1 million since May 2015 to Trump’s campaign committees, the Republican National Committee and America First Action, a super PAC that has been endorsed by Trump, the AP review found. Each donor gave at least $20,000.

There is no evidence the companies received favourable treatment as a result of their ties to Trump, and the businesses account for just a fraction of the overall spending under the program.






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But the distribution of relief money is coming under heightened scrutiny after the Trump administration initially refused to reveal which companies received loans, only to cave under growing bipartisan pressure from Congress. On Monday, the Treasury Department released the names of companies that received loans that were greater than $150,000, though they didn’t release specific dollar figures and instead gave ranges for the dollar value of the aid.

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Among the recipients named Monday was the conservative website NewsMax, which was approved for a loan up to $5 million on April 13, the data shows. NewsMax CEO Christopher Ruddy has donated $525,000 to political committees supporting Trump, records show. He did not respond to a request for comment.

Muy Brands, a San Antonio, Texas-based company that operates Taco Bell, Pizza Hut and Wendy’s franchises, was approved for a loan worth between $5 million and $10 million. Its owner, James Bodenstedt, has donated $672,570 to Trump since 2016, records show. The company did not respond to a request for comment.

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Irving, Texas-based M Crowd Restaurant Group, which owns 27 Texas restaurants including the Mi Cocina chain, was approved for between $5 million and $10 million. Ray Washburne, one of the company’s founders, was vice chairman of the Trump Victory Committee in 2016 and donated $100,000 to the PAC last August. The company did not respond to a request for comment.

“The PPP was a huge success and saved 51 million American jobs, including at Joe Biden’s old law firm and many companies associated with Obama Administration alums,” said Trump campaign spokeswoman Samantha Zager. “When the rent or mortgage was due, tens of millions of Americans kept receiving paychecks thanks to President Trump’s leadership.”

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Government watchdog groups say they have little faith in the administration conducting oversight of the program, noting Trump has ousted numerous inspectors general and has broadly resisted efforts to add transparency.

“When you don’t have proper safeguards, such as timely disclosure and effective inspectors general, then all these things look more suspicious and raise more questions,” said Larry Noble, a former general counsel at the Federal Election Commission. “When you see these people getting assistance quickly and they have contributed to the campaign, then it is going to raise questions.”






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Companies typically must have fewer than 500 workers to qualify for the Paycheck Protection Program. About $130 billion was unclaimed as the application deadline closed June 30.

With money still available, Congress voted to extend the program just as it was expiring, setting a new date of Aug. 8.

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The public may never know the identity of more than 80 per cent of the nearly five million beneficiaries to date because the administration has refused to release details on loans under $150,000 _ the vast majority of borrowers.

That secrecy spurred an open-records lawsuit by a group of news organizations, including the AP.

Still, the release of the data is the most complete look at the program’s recipients so far.

And Trump donors aren’t the only people with ties to the president who have benefited.

Read more:
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The Joseph Kushner Hebrew Academy in New Jersey, which is named after Trump’s son-in-law and adviser Jared Kushner’s grandfather, was approved for a loan in the range of $1 million to $2 million on April 5. Jared Kushner’s parents’ family foundation supports the school, NBC News reported.

Kasowitz Benson Torres, the law firm founded by Trump’s longtime personal attorney Marc Kasowitz, was approved for a loan worth between $5 million and $10 million.

Transportation Secretary Elaine Chao’s family’s business, Foremost Maritime Co., was cleared for a loan valued between $350,000 and $1 million. She is married to the Senate majority leader, Mitch McConnell, R-Ky.

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Broadcasting company Patrick Broadcasting, which is owned by Texas Lt. Gov. Dan Patrick, a firebrand conservative and former talk radio host, received a loan of $179,000, according to Patrick’s senior adviser Sherry Sylvester. Patrick is the Texas chairman of Trump’s presidential campaign.

The money was used to cover the payroll and expenses of 13 employees.

“The loan did not cover his salary, but he was able to save the jobs of all his employees, many of whom have been with him for decades,” Sylvester said.

© 2020 The Canadian Press

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Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin's Fourth Halving Arrives – Investor's Business Daily

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[unable to retrieve full-text content]

  1. Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin’s Fourth Halving Arrives  Investor’s Business Daily
  2. Iran fires at apparent Israeli attack drones: Mideast tensions  The Associated Press
  3. S&P 500 extends losing streak to sixth day, Dow up 210 points  Yahoo Canada Finance
  4. Stock Market Today: Dow, S&P Live Updates for April 19  Bloomberg
  5. Stock market today: Wall Street limps toward its longest weekly losing streak since September  CityNews Kitchener

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Netflix stock sinks on disappointing revenue forecast, move to scrap membership metrics – Yahoo Canada Finance

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Netflix (NFLX) stock slid as much as 9.6% Friday after the company gave a second quarter revenue forecast that missed estimates and announced it would stop reporting quarterly subscriber metrics closely watched by Wall Street.

On Thursday, Netflix guided to second quarter revenue of $9.49 billion, a miss compared to consensus estimates of $9.51 billion.

The company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.

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“As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact,” the company said.

Netflix reported first quarter earnings that beat across the board on Thursday, with another 9 million-plus subscribers added in the quarter.

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Subscriber additions of 9.3 million beat expectations of 4.8 million and followed the 13 million net additions the streamer added in the fourth quarter. The company added 1.7 million paying users in Q1 2023.

Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year as the streamer leaned on revenue initiatives like its crackdown on password-sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.

Netflix’s stock has been on a tear in recent months, with shares currently trading near the high end of its 52-week range. Wall Street analysts had warned that high expectations heading into the print could serve as an inherent risk to the stock price.

Earnings per share (EPS) beat estimates in the quarter, with the company reporting EPS of $5.28, well above consensus expectations of $4.52 and nearly double the $2.88 EPS figure it reported in the year-ago period. Netflix guided to second quarter EPS of $4.68, ahead of consensus calls for $4.54.

Profitability metrics also came in strong, with operating margins sitting at 28.1% for the first quarter compared to 21% in the same period last year.

The company previously guided to full-year 2024 operating margins of 24% after the metric grew to 21% from 18% in 2023. Netflix expects margins to tick down slightly in Q2 to 26.6%.

Free cash flow came in at $2.14 billion in the quarter, above consensus calls of $1.9 billion.

Meanwhile, ARM ticked up 1% year over year — matching the fourth quarter results. Wall Street analysts expect ARM to pick up later this year as both the ad-tier impact and price hike effects take hold.

On the ads front, ad-tier memberships increased 65% quarter over quarter after rising nearly 70% sequentially in Q3 2023 and Q4 2023. The ads plan now accounts for over 40% of all Netflix sign-ups in the markets it’s offered in.

FILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File PhotoFILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo

Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo (REUTERS / Reuters)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack – OilPrice.com

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack | OilPrice.com



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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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  • Oil prices initially spiked on Friday due to unconfirmed reports of an Israeli missile strike on Iran.
  • Prices briefly reached above $90 per barrel before falling back as Iran denied the attack.
  • Iranian media reported activating their air defense systems, not an Israeli strike.

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Oil prices gave up nearly all of early Friday’s gains after an Iranian official told Reuters that there hadn’t been a missile attack against Iran.

Oil surged by as much as $3 per barrel in Asian trade early on Friday after a U.S. official told ABC News today that Israel launched missile strikes against Iran in the early morning hours today. After briefly spiking to above $90 per barrel early on Friday in Asian trade, Brent fell back to $87.10 per barrel in the morning in Europe.

The news was later confirmed by Iranian media, which said the country’s air defense system took down three drones over the city of Isfahan, according to Al Jazeera. Flights to three cities including Tehran and Isfahan were suspended, Iranian media also reported.

Israel’s retaliation for Iran’s missile strikes last week was seen by most as a guarantee of escalation of the Middle East conflict since Iran had warned Tel Aviv that if it retaliates, so will Tehran in its turn and that retaliation would be on a greater scale than the missile strikes from last week. These developments were naturally seen as strongly bullish for oil prices.

However, hours after unconfirmed reports of an Israeli attack first emerged, Reuters quoted an Iranian official as saying that there was no missile strike carried out against Iran. The explosions that were heard in the large Iranian city of Isfahan were the result of the activation of the air defense systems of Iran, the official told Reuters.

Overall, Iran appears to downplay the event, with most official comments and news reports not mentioning Israel, Reuters notes.

The International Atomic Energy Agency (IAEA) said that “there is no damage to Iran’s nuclear sites,” confirming Iranian reports on the matter.

The Isfahan province is home to Iran’s nuclear site for uranium enrichment.

“Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel,” Saxo Bank said in a Friday note.

The $5 a barrel trading range in oil prices over the past week has been driven by traders attempting to “quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply,” the bank said, adding “Expect prices to bid ahead of the weekend.”

At the time of writing Brent was trading at $87.34 and WTI at $83.14.

By Tsvetana Paraskova for Oilprice.com

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