Business News

Billionaire Elon Musk wants to end his $44 billion deal to buy Twitter, according to a letter an attorney sent on his behalf to the company’s chief legal officer on Friday.

Twitter shares are down about 7% after the close on Friday.

In the letter, which was released in a filing with the Securities and Exchange Commission, Skadden Arps attorney Mike Ringler accused “Twitter of failing to meet its contractual obligations.”

Ringler claimed that Twitter failed to provide Musk with relevant business information that he requested, as Ringler said the contract would require it. Musk has previously said he wants to evaluate Twitter’s claims that about 5% of its monetizable daily active users (mDAUs) are spam accounts.

“Twitter failed or refused to provide this information,” Ringler claimed. “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has refused them for seemingly unjustified reasons, and sometimes it has claimed to do so while giving Mr. Musk incomplete or unusable information.”

In the letter, Ringler also accused Twitter of violating the merger agreement because it allegedly contained “materially inaccurate representations.” This allegation is based on Musk’s own preliminary review of spam accounts on Twitter’s platform. Twitter has stated that it is not possible to calculate spam accounts solely from public information and that a team of experts is conducting a check to reach the 5 percent figure.

“While this analysis is ongoing, all indications are that several of Twitter’s public disclosures regarding its mDAUs are either false or materially misleading,” Ringer claimed.

He also claimed Twitter had breached its obligations under the agreement to seek Musk’s approval before changing its normal course of business, noting recent layoffs at the company.

While Musk is now officially trying to walk away from the deal, this saga is likely far from over.

Under the terms of the agreement, Musk agreed to pay $1 billion if he resigns. But Twitter could still try to keep Musk on his original deal or get a bigger payout by suing him for walking away if they deny his reasoning was intended to let him out of the contract.

Twitter has every reason to try to hold Musk back to his original terms. The stock has fallen significantly since the board announced it had accepted its offer to buy the company for $54.20 per share. On the day of this announcement, the stock ended trading at $51.70 per share. Twitter stock closed at $36.81 on Friday.

Twitter did not immediately respond to a request for comment.

This is breaking news. Please check again for updates.

Two people from California’s Central Coast died Wednesday when their 2015 Tesla crashed into a tractor-trailer on the Florida Interstate, the Orlando Sentinel reported.

According to the outlet, the Florida Highway Patrol (FHP) said the Tesla crashed “for reasons unknown” when it mysteriously drifted into the Paynes Prairie Rest Area and struck the back of a parked cargo plane carrying Walmart products. The vehicle was driven by a 66-year-old woman; A 67-year-old man was in the passenger seat.

According to FHP officials investigating the accident, it’s still unclear whether the vehicle was on autopilot, how fast it was going, or if drugs or alcohol were involved. Tesla crashes are not uncommon, which is precisely why billionaire Elon Musk’s company is now embroiled in an investigation led by the National Highway Traffic Safety Administration (NHTSA). The Verge says NHTSA is investigating this incident and another fatal accident that reportedly took place in San Diego on June 7, when a drunk driver’s 2018 Model 3 blew up, hitting and killing a woman.

While it’s not yet confirmed if the Teslas were on autopilot in both accidents, the Washington Post says its software was implicated in 273 reported accidents over the past year — accounting for a staggering 70% of the 392 total accidents involving automated driving systems and causing the most fatalities and serious injuries.

NHTSA says they are in talks with Tesla about the Florida incident. FHP officials also say the department’s investigation is ongoing.

“FHP encourages all motorists (regardless of what type of vehicle, moped, bicycle, tractor trailer, etc. operating) to operate that vehicle as recommended by the manufacturers and to treat all other vehicles on the road with care and consideration, as per Required by federal and state laws,” they wrote.

Many homes in central Alberta were damaged by a severe thunderstorm Thursday that injured one person, Global News reported.

Contacted by the English media, Corporal Gina Slaney, spokeswoman for the Royal Canadian Mounted Police (RCMP), said five houses in the Sundre area were damaged.

However, only one home was destroyed, Ms Slaney said.

Although no details are available on who was injured, Corporal Slaney said it was only a minor injury caused by debris that fell after the storm.

Police officers and a team of firefighters checked to make sure everyone was safe where the storm was hitting hardest.

Also, many roads were closed due to debris and downed trees getting in the way. The latter have all reopened, Gina Slaney said.

Recall that Environment Canada issued a severe gale warning in several regions of Alberta on Thursday. Around 2:47 p.m., federal officials confirmed a tornado was forming in the Shantz region.

As of Thursday evening, Environment Canada still had not confirmed whether the tornado actually made landfall.

Photo: Patrick Pleul/Pool Photo (AP)

Tesla CEO Elon Musk has the ability to control the conversation about him with a single tweet, even if the message is a sticking point in how he treats employees. That’s why this week he managed to turn a story about having children with a subordinate at one of his companies into a story about his odd fixation on falling birth rates.

On Thursday, Insider released a report based on court documents showing that Musk had slept with one of his top managers at Neuralink, Shivon Zilis, who then gave birth to twins last November.

How did the CEO of companies as big as Tesla and SpaceX react? “A collapsing birth rate is by far the greatest danger facing civilization.”

On Friday, Musk suddenly announced that he wanted to give something back to the employees – at least to all the current or expectant parents. He tweeted that he would increase childcare benefits at his companies, including Tesla, SpaceX, Neuralink and Boring Company. Details will “hopefully” be announced next month.

The tweet was a response to the thread about his efforts to “help the underpopulation crisis.” The richest man in the world (you know, the one who has enough money to actually make a difference in the world) doesn’t believe climate change is the biggest threat to civilization, saying instead that “a declining birthrate” really something will bring us down.

And of course, his tweet offers few details about how the Musk Foundation will support these parents. Like several major companies, Tesla has announced it will cover travel expenses for out-of-state abortions for employees after the Supreme Court struck down Roe V. Wade. That decision could make things difficult for him, since his Tesla hub in Texas is right in the middle of one of the longest-running battles over abortion access.

So his fixation on declining birth rates and an absolute need to control the narrative seem to go hand in hand, and some believe so. Musk is 51 and Zilis 36, although perhaps this is more about the complicated power imbalance between a woman, even a top executive, and her boss.

However, speculation about the interpersonal relationship between two adults does not get anyone anywhere. If only Musk believed the same. A SpaceX employee and flight attendant on one of Musk’s flights claimed the CEO showed her his penis and offered her sex. Musk responded to those allegations with, “If I were inclined to engage in sexual harassment, this probably isn’t the first time in my entire 30-year career that this has come to light.” He later tweeted, “Finally we can elongate use as a scandal name.”

And perhaps more importantly, how that affects its businesses. If Musk says he wants to support his subordinates, he should definitely help the parents. Every boss should do that. However, he appears to be much more sparing in helping his employees in other parts of their jobs. He has strictly refused calls from employees under a home office policy, and previous reports have shown his companies have an unusually high turnover rate. SpaceX employees recently wrote an open letter to company executives, saying they didn’t like how Musk’s public behavior resonated with them and the rest of their company. How did Musk and his executives react to this? Space X fired several of them.

If the unemployment rate remained at 4.3% in June, a relatively low level in Quebec, this result is not necessarily a sign of a healthy economy, given the phenomenon of “great resignation” that would increasingly hit the province.

• Also read: The unemployment rate in Quebec is 4.3%

• Also read: Quebec labor shortage: many more seniors at work

“The numbers that make up the ratio [du chômage] do not reflect an economy that is in perfect health,” said Nathalie Elgrably-Lévy, senior economist at the Montreal Economic Institute, in an interview with LCN on Friday.

For Labor Minister Jean Boulet, this situation is a “temporary situation”.

The unemployment rate is a calculation of the number of unemployed relative to the labor force. However, more and more people are leaving the labor market, which means that they are no longer included in the calculation of this quota.

According to the economist, this situation can be explained by the phenomenon of “great resignation” affecting the province and other western countries.

“People are less interested in work for various reasons. They’re retiring from the job market, or they want to work fewer hours, or they’re not interested in promotions,” she said.

“Entering the labor market also involves costs […] and when they do the math, they probably come to the conclusion that if they don’t have a job and have one with the costs involved, it’s better to stay at home,” she added.

Immigration as a solution?

Ms Elgrably-Lévy argued that immigration could be a solution to the labor shortage, but “in a very temporary way”.

“[Si] workers here have less desire to work, it won’t be long before the person who arrived in Canada feels the same incentives and comes to the same conclusions,” she argued.

The same goes for the minister, who reiterated that immigration “is one of the options [mais qu’il] the solutions must be added.

“The labor shortage not only rests on the shoulders of the government, it has become a challenge for the community. In the current context, employers need to improve working conditions, increase wages, take work-life balance measures, integrate new technologies…” said Mr Boulet.

Costco (COST) reported another strong monthly sales result for June — a sign the major retailer continues to outperform and gain market share as many of its peers struggle in a difficult economic environment. Net sales for the month rose a solid 20.4% year over year to $22.78 billion, according to data released by Costco on Thursday. Even more impressive, however, were the retailer’s same-store sales, which rose 18.1% in June and beat Wall Street’s estimate of 14.1%. Same-store sales – also called comparable sales or comps – is the metric we focus on the most because it provides the best insight into business trends. Analyzing comparable sales helps us understand whether the company can attract more customers and sell them more goods. As a reminder, Costco’s reporting structure differs from most public companies. It reports its sales results every month in addition to its regularly scheduled quarterly earnings reports. We appreciate this transparency because it keeps investors informed about business developments. Another data point we focus on is comparable sales, which excludes the impact of changes in gasoline prices and exchange rates, also known as “core” comparisons. In June, Costco’s total core comps rose 13%, beating estimates of 11.1%. This result is important because it removes the impact of elements beyond the company’s control. Core comps tell the better story, especially in a year when prices at the pump have skyrocketed and the US dollar has soared to multi-year highs. By product category, groceries and sundries, comparable sales rose in the mid-teens while fresh groceries rose in the high single digits. The non-food categories increased by almost 10% overall. This is an important category to watch due to the ongoing shift in consumer spending from goods to services. The increase of almost 10% contrasts with a low double-digit increase in May, so that a slight slowdown was recorded here. Meanwhile, ancillary sales soared in the high 50’s, led by Gas and Food Court. Overall, the results show the incredible value Costco offers its members (particularly in gasoline) and again confirms our thesis that it is the best-run retailer the world is. Potential Catalysts In addition to Costco’s core results, there are two potential events that we have on our radar. First, an increase in the membership fee. Costco has increased its membership fee three times in the last 15 years, or every five to six years on average. The last price increase was in June 2017, so we entered the zone where something could happen. At the company’s last earnings announcement in late May, management was quick to downplay rumors that a rate hike was imminent, believing that now was not the right time as the slowing economy and high inflation had hurt consumers. But we wouldn’t rule out a price increase in the near future, and believe the increase would face little resistance from customers given how high refresh rates are and the amount of value buyers are getting. The other is a special cash dividend announcement. Every few years, Costco’s cash position on its balance sheet swells to levels beyond the company’s needs. As a reward to shareholders, management takes this excess cash and returns it to shareholders via a special cash dividend. Costco has paid one four times in the last eight years, most recently in November 2020. Based on history, we think it’s possible that Costco could announce a special dividend before the end of the year. (Jim Cramer’s Charitable Trust is Long COST. A full list of shares can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.

A consumer shops at a Costco store in Miami on September 28, 2021.

Joe Raedle | Getty Images

Costco (COST) reported another strong monthly sales result for June — a sign the major retailer continues to outperform and gain market share as many of its peers struggle in a difficult economic environment.

Net sales for the month rose a solid 20.4% year over year to $22.78 billion, according to data released by Costco on Thursday. Even more impressive, however, were the retailer’s same-store sales, which rose 18.1% in June and beat Wall Street’s estimate of 14.1%.

Same-store sales – also called comparable sales or comps – is the metric we focus on the most because it provides the best insight into business trends. Analyzing comparable sales helps us understand whether the company can attract more customers and sell them more goods.

As a reminder, Costco’s reporting structure differs from most public companies. It reports its sales results every month in addition to its regularly scheduled quarterly earnings reports. We appreciate this transparency because it keeps investors informed about business developments.

Another data point we focus on is comparable sales, which excludes the impact of changes in gasoline prices and exchange rates, also known as “core” comparisons. In June, Costco’s total core comps rose 13%, beating estimates of 11.1%. This result is important because it removes the impact of elements beyond the company’s control. Core comps tell the better story, especially in a year when prices at the pump have skyrocketed and the US dollar has soared to multi-year highs.

• By product category, groceries and sundries, comparable sales rose in the mid-teens while fresh groceries rose in the high single digits.

• The non-food categories increased by almost 10% overall. This is an important category to watch due to the ongoing shift in consumer spending from goods to services. The increase of almost 10% contrasts with a low double-digit increase in May, so that a slight slowdown was recorded here. Meanwhile, ancillary sales soared in the high 50s, led by gas and food court.

Overall, the results demonstrate the incredible value Costco offers its members (particularly in gasoline) and again confirms our thesis that it is the best-run retailer in the world.

Possible catalysts

In addition to Costco’s core results, there are two potential events that we have on our radar.

First, an increase in the membership fee. Costco has increased its membership fee three times in the last 15 years, or every five to six years on average. The last price increase was in June 2017, so we entered the zone where something could happen. At the company’s last earnings announcement in late May, management was quick to downplay rumors that a rate hike was imminent, believing that now was not the right time as the slowing economy and high inflation had hurt consumers. But we wouldn’t rule out a price increase in the near future, and believe the increase would face little resistance from customers given how high refresh rates are and the amount of value buyers are getting.

The other is a special cash dividend announcement. Every few years, Costco’s cash position on its balance sheet swells to levels beyond the company’s needs. As a reward to shareholders, management takes this excess cash and returns it to shareholders via a special cash dividend. Costco has paid one four times in the last eight years, most recently in November 2020. Based on history, we think it’s possible that Costco could announce a special dividend before the end of the year.

(Jim Cramer’s Charitable Trust is long COST. A full list of shares can be found here.)

As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade.

THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.

However, there are still a few things that cost the same as they always have.

The signature 23-ounce can of Arizona iced tea is still 99 cents, the same price since it debuted 30 years ago.

The family-owned company sells about 1 billion of the 99-cent Big AZ Can, as it’s known internally, each year, the Los Angeles Times reported in April.

“I’m committed to that 99-cent price — when things go against you, you tighten your belt,” Don Vultaggio, the company’s 70-year-old founder, told the newspaper. His reasoning: raising prices and losing customers as a result is simply not worth the short-term profit.

Arizona — which got its start in Brooklyn — keeps costs down by spending less on marketing than other beverage brands and makes most of its profits by selling higher-priced fruit drinks, energy drinks, bottled teas, snack foods, hard seltzer and other products .

Costco’s $1.50 hot dog and soda combo

Costco’s hot dog soda deal at its food courts has cost $1.50 since its inception in the mid-1980s.

The hot dog offering emerged in the early days of the company. Costco added a Hebrew National booth at its second warehouse in Portland, Oregon, shortly after it opened in 1983.

To keep the hot dog’s price stable, Costco has found ways to reduce other costs in the food court, such as:

Costco (COST) sold kosher hot dogs at its food courts until 2009, but suppliers were running out of meat. So the chain brought production in-house and switched to their own Kirkland Signature brand hot dogs. Costco now produces around 285 million hot dogs at its California facility. Costco co-founder Jim Sinegal once told Craig Jelinek, the company’s current CEO, “If you raise that damn hot dog, I’ll kill you.” Find out.” “I know it sounds crazy to make a big deal around a hot dog, but we spend a lot of time on it,” Sinegal told the Seattle Times in 2009. “We are known for this hot dog.

Last year, Costco sold 122 million hot dog and soda combos worldwide.

Costco, Sam’s Club and BJ’s Fried Chicken

Despite a 16.4% year-over-year increase in chicken prices, wholesale clubs and other grocers have kept fried chicken prices low. Fried chicken stays at Costco for $4.99, as it has for more than a decade, as well as BJ’s Wholesale Club (BJ). At Sam’s Club they haven’t cost a dime less for over five years.

There is a strategy behind these stores’ decision to keep these prices constant.

The fried chicken is a popular product for supermarkets because it attracts customers to the stores. Customers typically buy more than one chicken in one visit. Because of this, retailers want to remain competitive in fried chicken prices and are willing to lose money on sales, even if production costs increase.

Additionally, shoppers know exactly how much their fried chicken costs and they will see an increase. The price of a fried chicken helps determine the consumer’s overall perception of the value of a deal.

Even though BJ’s fried chicken production costs have skyrocketed, the company has kept prices firm because it’s “such a meaningful cause for our members,” CEO Bob Eddy said at an earnings call in May.

However, the efforts Costco has made to keep its chickens at $4.99 are under close scrutiny.

The retailer is facing a lawsuit from two shareholders alleging that Costco and its top executives allowed the abuse of chickens in violation of animal welfare laws.

America’s Cameron Tringale kept his rivals at bay despite scoring two over par 72s in North Berwick on Friday to give him a three-shot lead after the first two rounds of the PGA Tour’s Genesis Golf Scottish Open.

• Also read: Golf: Justin Thomas disciplines a player

• Also read: “Golf is more fun when we get our putts right”

The point guard stunned viewers the day before with a 61, bobbing eight in nine holes sometime in the opening round. The next day, however, was more difficult as his four birdies of the day were marred by six bogeys, including three in a row between the 16th and 18th pennants. Still, Tringale has a cumulative score of 133 (-7), ahead of his compatriots Gary Woodland (72) and Doug Ghim (69).

In addition, world No. 1 Scottie Scheffler suffered the ax midway through the competition. His total of 145 (+5) was nowhere near enough to play the final 36 holes.

For the Canadians, Nick Taylor (68) and Corey Conners (73) continue their journey this weekend. They are part of a group of competitors in Season 49 at 145 (+3). For his part, Mackenzie Hughes (73) has to pack up because of his record of 149 (+9).