A recent poll suggests that behind closed doors, an overwhelming majority of financial <a href="http://dailywire.com/topic/wall-street" target="_blank" rel="noopener">executives</a> do not support the environmental, social, and governance (<a href="https://www.dailywire.com/topic/esg" target="_blank" rel="noopener">ESG</a>) movement.
Among other common ESG goals is the embrace of <a href="http://dailywire.com/topic/climate-change" target="_blank" rel="noopener">green energy</a> usage, even when reliance upon traditional energy sources is more fiscally prudent. According to a CNBC <a href="https://www.cnbc.com/2022/09/29/the-esg-backlash-inside-the-executive-ranks-at-top-corporations.html" target="_blank" rel="noopener">survey</a> released on Thursday, a mere 25% of chief financial officers support climate reporting proposals from the Securities and Exchange Commission (<a href="https://www.dailywire.com/topic/securities-and-exchange-commission" target="_blank" rel="noopener">SEC</a>) moving closer to implementation.
Roughly 55% of financial managers are opposed to the rule, while 35% are “strongly” opposed. Within the sample of 21 executives were multiple Fortune 500 CFOs.
CNBC reported that there exists “evidence of a split” between technology companies desiring to help other firms process the data requirements with ESG rules and “a broader set” of CFOs struggling to “understand how the costs their companies will incur in making new disclosures will generate a return on investment.”
The SEC <a href="https://www.sec.gov/news/press-release/2022-46" target="_blank" rel="noopener">requirements</a> would require companies to report the material impact climate change presents to operations, the impact of “climate-related events” such as severe weather on transaction activities, and risk management processes used to mitigate climate risk. A salient issue for executives is “the lack of a clear correlation between the climate data and financial statements,” according to CNBC.
Those who invest in companies are of a similar mind. Earlier this year, an <a href="https://www.dailywire.com/news/poll-by-two-to-one-margin-investors-reject-woke-companies-pushing-political-causes" target="_blank" rel="noopener">exclusive poll</a> from The Daily Wire showed that American investors would prefer that companies commit solely to the pursuit of profits. Although 29% of respondents agreed it is a “good thing” for companies to leverage their financial power for political or social means, 58% said it is a “bad thing.”
The White House is nevertheless pursuing a “whole-of-government approach to put climate change at the center of our domestic, national security, and foreign policy,” according to a <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/01/27/remarks-by-president-biden-before-signing-executive-actions-on-tackling-climate-change-creating-jobs-and-restoring-scientific-integrity/#:~:text=It%27s%20a%20whole%2Dof%2Dgovernment,We%27re%20bold." target="_blank" rel="noopener">speech</a> delivered by President Joe Biden days after his inauguration. The Office of the Comptroller of the Currency, an entity in the Treasury Department charged with regulating and supervising banks, <a href="https://www.ots.treas.gov/news-issuances/news-releases/2022/nr-occ-2022-110.html" target="_blank" rel="noopener">recently tapped</a> New York State Department of Financial Services climate czar Yue Chen as its new chief climate risk officer.
The Federal Reserve, which is separate from the federal government, <a href="https://www.dailywire.com/news/federal-reserve-will-evaluate-climate-related-financial-risks-with-help-from-bidens-new-climate-officer" target="_blank" rel="noopener">announced</a> on Thursday that six of the nation’s largest banks will take part in a pilot process to examine economic risks posed by climate change, although the exercise carries no regulatory implications. The central bank will also work alongside the Office of the Comptroller of the Currency to forward environmental initiatives within the private sector.
“As our nation, and the world, grapple with how to respond to climate change, banks are increasingly focused on the risks that climate change brings to their balance sheets,” Federal Reserve Board of Governors member Michael Barr remarked in a recent speech. “The Federal Reserve is working to understand how climate change may pose risks to individual banks and to the financial system. The Federal Reserve’s mandate in this area is important, but narrow, focused on our supervisory responsibilities and our role in promoting a safe and stable financial system.”
Beyond fiscal and monetary policymakers, large asset management firms such as Vanguard and BlackRock have played active roles in advancing ESG among fellow actors in the private sector. The latter company revealed in its investment stewardship <a href="https://www.blackrock.com/corporate/literature/publication/our-commitment-to-sustainability-full-report.pdf" target="_blank" rel="noopener">report</a> that it pressed “voting action on climate issues” upon 53 of its portfolio companies in 2020 while putting 191 others “on watch.”
“We’re seeing evidence every day that climate risk is investment risk,” BlackRock CEO Larry Fink <a href="https://www.dailywire.com/news/climate-risk-is-investment-risk-bill-clinton-and-blackrock-ceo-larry-fink-make-bold-claims-about-woke-investing" target="_blank" rel="noopener">claimed</a> during a recent panel event at a meeting of the Clinton Global Initiative. “People are waking up to that, and that’s created this tectonic shift.”

American flag in Midtown Manhattan

Behind The Scenes, Most Executives Actually Hate Woke Investing: Survey

Most Executives Spurn The SEC's Pending Woke Climate Rules

Business

Climate Change

Wokeness

Virgin Atlantic announced on Wednesday that pilots and other employees are allowed to wear uniforms that correspond with their “<a href="https://www.dailywire.com/topic/transgender">gender identity</a>” — an action that comes as the <a href="http://dailywire.com/topic/air-travel">airline</a> struggles to turn a <a href="http://dailywire.com/topic/business">profit</a>.
Pilots, crew, and members of the Virgin Atlantic ground team are permitted to wear clothes <a href="https://www.dailywire.com/news/male-pilots-can-wear-skirts-now-on-virgin-atlantic-flights">belonging to the opposite sex</a>, meaning that men will be able to don the red jackets and skirts designed for women, who can in turn wear the burgundy trousers and blazers meant for men.
“Reflecting the diversity of the workforce and in a move that cements its position as the most inclusive airline in the skies, Virgin Atlantic will offer its people a fluid approach to its red and burgundy uniforms, meaning LGBTQ+ colleagues will be able to choose either the red or the burgundy uniform, depending on which best reflects themselves,” the company said in a <a href="https://corporate.virginatlantic.com/gb/en/media/press-releases/virgin-atlantic-updates-gender-identity-policy.html">statement</a>, which added that employees can now wear badges declaring their preferred pronouns.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
We’ve changed our uniform code to give our crew, pilot and ground teams the option to choose which of our iconic uniforms, designed by Vivienne Westwood, best represents them 👠 <a href="https://twitter.com/hashtag/SeeTheWorldDifferently?src=hash&amp;ref_src=twsrc%5Etfw">#SeeTheWorldDifferently</a> <a href="https://t.co/dbCP4WxObl">pic.twitter.com/dbCP4WxObl</a>
&mdash; virginatlantic (@VirginAtlantic) <a href="https://twitter.com/VirginAtlantic/status/1575032743452606464?ref_src=twsrc%5Etfw">September 28, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The push toward inclusivity occurs as Virgin Atlantic battles to turn a profit. The airline, which has not been in the black since 2016, reported £594 million — roughly $659 million — in losses before taxes and exceptional items last year. “While we have learned we can’t predict the future and there will be significant challenges ahead, the outlook is full of promise,” Virgin Atlantic CEO Shai Weiss said in an April <a href="https://corporate.virginatlantic.com/gb/en/media/press-releases/virgin-atlantic-ltd-2021-financial-results.html">press release</a>. “This will be the year we get back to our very best for our people and our customers.”
At the end of 2021, Virgin Atlantic founder Richard Branson was forced to inject £204 million amid turbulence in the travel sector, while Delta Air Lines — which owns the other 49% of the company — contributed £196 million, according to a <a href="https://www.ft.com/content/d4e3ed6a-3de8-4fdc-959b-87f145cb2d4a">report</a> from Financial Times.
Though many Americans want companies to advance agendas beyond their bottom lines, an exclusive <a href="https://www.dailywire.com/news/poll-by-two-to-one-margin-investors-reject-woke-companies-pushing-political-causes">poll</a> from The Daily Wire showed that most investors would rather see companies pursue profits instead of pontificating on social policy. While 29% of respondents to the poll agreed it is a “good thing” for companies to use their financial power for political or social causes supported by executives, 58% — twice as many — said it is a “bad thing.”
Several high-profile companies have faced criticism from consumers in recent years over the promotion of homosexuality and transgenderism. Insurance company State Farm was <a href="https://www.dailywire.com/news/report-state-farm-backs-down-on-donating-transgender-books-for-five-year-olds-to-schools">forced to back down</a> after outrage over its plan to donate books about transgenderism to schools and public libraries for children as young as five years old, while domestic subscription growth at entertainment conglomerate Disney <a href="https://www.dailywire.com/news/u-s-subscriptions-at-ultra-woke-disney-slow-to-a-crawl-after-company-loses-left-wing-political-battles">slowed to a crawl</a> after executives campaigned against parental rights legislation.
Earlier this year, Virgin Atlantic also became the first British airline to permit visible tattoos among members of its customer-facing teams. “Many people use tattoos to express their unique identities and our customer-facing and uniformed colleagues should not be excluded from doing so if they choose,” Virgin Atlantic Chief People Officer Estelle Hollingsworth remarked in a <a href="https://www.virgin.com/about-virgin/latest/virgin-atlantic-relaxes-tattoo-policy-for-employees">statement</a>. “That&#8217;s why, in line with our focus on inclusion and championing individuality, we&#8217;re relaxing our tattoo restrictions for all our people. We&#8217;re proud to be the airline that sees the world differently and allows our people to truly be themselves.”
Three years ago, Virgin Atlantic <a href="https://corporate.virginatlantic.com/gb/en/media/press-releases/pride-flight.html">hosted a flight</a> to New York City “staffed entirely by LGBT+ pilots and cabin crew” — an experience meant to celebrate the arrival of World Pride 2019 in the Big Apple. Passengers partook in speed dating, drag queen performances, and a Judy Garland singalong. “We take our commitments to diversity and inclusion seriously, but you can rest assured we have a lot of fun along the way,” Virgin Group Global LGBT Lead Mark Anderson said.

Los Angeles Exteriors And Landmarks – 2022

Virgin Atlantic Announced Uniforms Fitting Pilot ‘Gender Identity’ Preferences. They Lost $659 Million Last Year.

Deeply Unprofitable Virgin Atlantic Reveals Gender-Affirming Uniforms

Air Travel

LGBTQ

Transgender

Strive Asset Management announced a new <a href="http://dailywire.com/topic/wall-street" target="_blank" rel="noopener">index fund</a> that will push corporate America to pursue <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">profits</a> rather than <a href="http://dailywire.com/topic/woke" target="_blank" rel="noopener">social</a> agendas.
The company, <a href="https://www.dailywire.com/news/americans-want-companies-to-stay-out-of-politics-ceo-launches-fund-to-take-on-woke-asset-managers">launched</a> earlier this year by entrepreneur <a href="https://www.dailywire.com/topic/vivek-ramaswamy" target="_blank" rel="noopener">Vivek Ramaswamy</a>, will sell its Strive 500 exchange-traded fund (ETF) — a basket of shares meant to track the profits of the nation’s 500 largest companies — on the New York Stock Exchange under the ticker STRV. The firm will use “proxy voting and shareholder engagement” to press portfolio companies to maximize “value over all other agendas,” according to a statement from Strive obtained by The Daily Wire.
“Our message to America’s largest companies is simple: focus on your mission, not someone else’s social agenda,” Ramaswamy explained. “Hire talent based on merit over other social factors. We hope to drive positive change through our shareholder engagement.”
The approach appears to counter entities such as BlackRock and Vanguard, which <a href="https://www.dailywire.com/news/how-three-investment-firms-are-turning-companies-like-disney-woke-and-what-you-can-do-to-fight-back">compel portfolio companies</a> to embrace the environmental, social, and governance (<a href="https://www.dailywire.com/topic/esg" target="_blank" rel="noopener">ESG</a>) movement, which requires the adoption of objectives such as staff diversity quotas, renewable energy transitions, and other policies that mingle left-wing politics with profitability.
The company sent multiple shareholder letters to ask portfolio companies about their reasons for pursuing social agendas that appear to be unrelated to their business objectives.
“Over the past year, Disney has become embroiled in political controversies that have unquestionably damaged Disney’s brand,” Strive <a href="https://strive.com/strive-asset-management-letter-to-disney/">wrote</a> to Disney in reference to parental rights legislation in Florida. “We ask a simple question: what risk-reward calculus justifies taking controversial political positions that risk derailing Disney’s otherwise strong economic prospects by alienating a majority of your customer base?”
Indeed, new domestic subscriptions for streaming service Disney+ <a href="https://www.dailywire.com/news/u-s-subscriptions-at-ultra-woke-disney-slow-to-a-crawl-after-company-loses-left-wing-political-battles">slowed to a crawl</a> in the quarter following Disney’s opposition to the bill. In an <a href="https://www.dailywire.com/news/exclusive-poll-over-60-of-americans-back-floridas-limits-on-k-3-lessons-on-sexual-orientation-and-gender-identity">exclusive poll</a> from The Daily Wire, 64% of Americans — including 62% of Democrats and 57% of independents — supported the Florida legislation, which prohibited students from kindergarten through third grade from learning about sexual orientation and gender identity in the classroom.
In a similar <a href="https://strive.com/strive-asset-management-letter-to-apple/">letter</a>, Strive questioned a “racial equity audit” enacted by Apple. “Racial equity audits generally do not help the ‘audited’ companies: the publication of such reports often trigger more negative news, criticism, and boycotts of the company by certain consumers, while also alienating other consumers who disapprove of the company’s decision to conduct such an audit at all,” the message said. “Such reports may also fuel unwarranted government investigations, employee grievances and meritless discrimination claims.”
According to another <a href="https://www.dailywire.com/news/poll-by-two-to-one-margin-investors-reject-woke-companies-pushing-political-causes">exclusive poll</a> from The Daily Wire released earlier this year, roughly 58% of investors said that executives enacting their own political agendas rather than maximizing profits is a “bad thing.” As Ramaswamy discussed on a recent episode of “<a href="http://v">The Search</a>” with Daily Wire Editor Emeritus Ben Shapiro, many investors are today recognizing that asset managers are encouraging left-wing social activism without accounting for any potential decline in firm performance.
While the pension funds of states such as California and New York still request certain political and social stipulations of their asset managers, officials from conservative states are likewise <a href="https://www.dailywire.com/news/wall-street-is-trying-to-punish-middle-america-for-religious-and-cultural-views-through-woke-investing-republican-state-treasurers-warn">sounding the alarm</a> over ESG and the risk it poses to their citizens’ way of life. Most recently, the government of Texas <a href="https://www.dailywire.com/news/texas-cuts-ties-with-blackrock-other-woke-firms-over-their-hatred-for-fossil-fuels">cut ties</a> with BlackRock, UBS, and other firms that are hostile toward the oil industry “without an ordinary business purpose.”

Vivek Ramaswamy

Firm Launches Asset That Will Tell Corporate America To Put Profits Before Politics

Vivek Ramaswamy's Company Launches Asset That Will Tell Firms To Put Profits Before Left-Wing Agendas

BlackRock

Stock Market

Wall Street

Patagonia founder Yvon Chouinard announced that he has <a href="https://www.dailywire.com/topic/woke" target="_blank" rel="noopener">given</a> his company away to fight <a href="http://dailywire.com/topic/climate-change" target="_blank" rel="noopener">climate change</a>.
The eccentric billionaire rock climber, whose company manufactures outdoor clothing, transferred his $3 billion in shares to a trust and a nonprofit that will ensure that all excess earnings — roughly $100 million per year — are leveraged to support climate and land preservation initiatives.
“Hopefully this will influence a new form of capitalism that doesn’t end up with a few rich people and a bunch of poor people,” Chouinard said in an <a href="https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html">interview</a> with The New York Times. “We are going to give away the maximum amount of money to people who are actively working on saving this planet.”
Chouinard, his wife, and his two children transferred Patagonia’s voting stock — roughly 2% of all shares — into the Patagonia Purpose Trust, which will be staffed by family members and advisers to ensure that the company gives away all profits. The Chouinards then donated all common shares — the other 98% of the company — to a new 501(c)(4) organization called the Holdfast Collective, which will receive all of Patagonia’s profits. The latter entity will be able to make political donations.
“Two years ago, the Chouinard family challenged a few of us to develop a new structure with two central goals,” Patagonia CEO Ryan Gellert said in a <a href="https://www.patagoniaworks.com/press/2022/9/14/patagonias-next-chapter-earth-is-now-our-only-shareholder">statement</a>. “They wanted us to both protect the purpose of the business and immediately and perpetually release more funding to fight the environmental crisis. We believe this new structure delivers on both and we hope it will inspire a new way of doing business that puts people and planet first.”
In 2012, Patagonia <a href="https://www.patagonia.com/b-lab.html">became</a> a “Benefit Corporation” — a designation granted by nonprofit group B Lab to companies with “an explicit social or environmental mission, and a legally binding fiduciary responsibility to take into account the interests of workers, the community and the environment as well as its shareholders.”
“I didn’t know what to do with the company because I didn’t ever want a company,” Chouinard, who is 83 years old, continued. “I didn’t want to be a businessman. Now I could die tomorrow and the company is going to continue doing the right thing for the next 50 years, and I don’t have to be around.”
In an <a href="https://fortune.com/2022/09/14/patagonia-chair-we-are-turning-capitalism-on-its-head-by-making-the-earth-our-only-shareholder-charles-conn/">article</a> for Fortune, Patagonia Chairman Charles Conn encouraged other business leaders to orient their firms’ activities around sustainability. “Instead of exploiting natural resources to make shareholder returns, we are turning shareholder capitalism on its head by making the Earth our only shareholder,” he argued. “As a closely held company, this huge change was easier for us than others. But the point is for companies to make transparent purpose commitments that make sense to their business, and to be held to account by their communities.”
Conn rebutted the notion that his firm is engaging in “woke” capitalism — although he added that <a href="https://www.dailywire.com/news/how-three-investment-firms-are-turning-companies-like-disney-woke-and-what-you-can-do-to-fight-back">stakeholder capitalism</a> is “the future of business if we want to build a better world for our children and all other creatures.”
Earlier this year, an <a href="https://www.dailywire.com/news/poll-by-two-to-one-margin-investors-reject-woke-companies-pushing-political-causes">exclusive poll</a> from The Daily Wire showed that American investors would prefer that companies commit solely to the pursuit of profits. Although 29% of respondents agreed it is a “good thing” for companies to leverage their financial power for political or social means supported by executives, 58% said it is a “bad thing.”

FRANCE-ENERGY-SOLAR-PHOTOVOLTAICS-ENVIRONMENT

Patagonia Founder Gives Away $3 Billion Company, Will Use All Profits To Fight Climate Change

Twilio CEO Jeff Lawson announced on Wednesday that the <a href="http://dailywire.com/topic/technology">technology</a> firm would carry out a round of <a href="http://dailywire.com/topic/unemployment">layoffs</a> using an “anti-racist” and “anti-oppression” framework.
The publicly-traded <a href="http://dailywire.com/topic/business">company</a>, which builds programmable communications tools, grew “at an astonishing rate” over the past several years, according to a <a href="https://www.twilio.com/blog/a-message-from-twilio-ceo-jeff-lawson">letter</a> from Lawson — a reality that necessitates a series of layoffs. As <a href="http://dailywire.com/topic/inflation">inflationary</a> pressures and other economic bottlenecks propel the United States into a <a href="https://www.dailywire.com/news/white-house-does-preemptive-damage-control-as-economy-heads-toward-recession">technical recession</a>, other technology companies have likewise <a href="https://www.dailywire.com/news/recession-fears-lead-big-tech-companies-to-pause-hiring-cut-jobs">slowed hiring</a> or decreased payrolls.
Lawson, however, informed his staff that Twilio is devoted to operating as an “anti-racist” company and that the layoffs were executed through an “Anti-Racist/Anti-Oppression lens,&#8221; because “layoffs like this can have a more pronounced impact on marginalized communities.”
“This was tremendously difficult. For those impacted today, we applied a rigorous selection process to examine which roles were most tightly aligned to our four priorities,” Lawson wrote.
The Daily Wire asked Twilio how many employees were dismissed under deliberations that weighed racial identity. A spokesperson for the company said that Lawson&#8217;s memo has all of the information that will be released publicly.
Other entities in the United States have adopted similar policies in layoff decisions. Last month, the Minneapolis Federation of Teachers <a href="https://www.dailywire.com/news/minneapolis-public-schools-defend-anti-white-firing-practices-that-put-critical-race-theory-into-practice">agreed to a contract</a> stipulating that non-white staff are considered a “population underrepresented among licensed teachers,” which allows for them to be fired after white colleagues — a decision the union later defended as a remedy for “the continuing effects of past discrimination.”
An <a href="https://www.dailywire.com/news/diversity-training-at-vanguard-tells-white-men-to-accept-uncomfortable-criticism-floats-holding-them-accountable">exclusive report</a> from The Daily Wire revealed a two-hour diversity training at asset management company Vanguard that pushed white male managers to accept “uncomfortable” criticism about their implicit biases. Leaked footage showed a diversity trainer suggesting that Vanguard should provide expectations for how managers “will and should be held accountable” for diversity goals — with one possible mechanism for such accountability occurring through the “performance management process … just like we do for business results.”
Prioritizing diversity among staff — even at the expense of optimizing merit — is an objective frequently pursued at companies that have subscribed to the environmental, social, and governance (ESG) movement, by which executives tend to mingle left-wing politics with operations within their mandates.
Earlier this year, however, an <a href="https://www.dailywire.com/news/poll-by-two-to-one-margin-investors-reject-woke-companies-pushing-political-causes">exclusive poll</a> from The Daily Wire showed that American investors would prefer that companies commit solely to the pursuit of profits. Although 29% of respondents agreed it is a “good thing” for companies to leverage their financial power for political or social means supported by executives, 58% said it is a “bad thing.” The poll also found that most investors recognize ESG as promoting “more liberal positions” than conservative ones. While 50% believe the former and 16% believe the latter, only 21% believe that ESG investing is politically neutral.
In the public sector, President Joe Biden is <a href="https://www.dailywire.com/news/biden-admin-unleashes-total-transformation-of-government-with-equity-action-plans">pursuing</a> a “total transformation of government” centered upon diversity, equity, and inclusion.
“I believe this nation and this government need to change their whole approach to the issue of racial equity,” the commander-in-chief said during a <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/01/26/remarks-by-president-biden-at-signing-of-an-executive-order-on-racial-equity/">speech</a> days after his inauguration. “We need to open the promise of America to every American. And that means we need to make the issue of racial equity not just an issue for any one department of government; it has to be the business of the whole of government. … Every agency will be involved in this work because advancing equity has to be everyone’s job.”

A cutting board with a knife between black and white letters.

Company Reveals It Will Lay Off Workers Through An ‘Anti-Racist’ Lens

Tech Company Helps 'Marginalized Communities' By Laying Off Workers Through An 'Anti-Racist' Lens

Anti-Racism

Critical Race Theory

Technology

Railroad companies and their labor unions reached a handshake agreement early Thursday, possibly <a href="https://www.dailywire.com/news/rail-union-rejects-labor-deal-as-white-house-scrambles-to-avoid-nationwide-railroad-strike" target="_blank" rel="noopener">averting a strike</a> that threatened to further cripple the reeling U.S. economy.
The marathon talks, which began early Wednesday and were brokered by Labor Secretary Martin Walsh, led to an agreement that now goes to union members for a vote. In the meantime, the unions have agreed not to strike.
“The tentative agreement reached tonight is an important win for our economy and the American people,” President Joe Biden said. “It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years.”
Unions involved in the talks include the powerful International Association of Machinists and Aerospace Workers, the Brotherhood of Locomotive Engineers and Trainmen, and SMART Transportation Division.
Although the White House did not reveal details of the tentative deal, the Association of American Railroads said it includes a 24% pay increase over the period covering 2020-2024, with an average $11,000 retroactive payout.
The talks came as a Friday deadline loomed. That’s when a government-imposed “cooling off” period was set to end, and when a strike could have begun.
Railroad company Union Pacific hailed the deal.
“We look forward to the unions ratifying these agreements and working with employees as we focus on restoring supply chain fluidity,” the company said in a statement.
A third of U.S. freight is moved by rail, and an interruption could cost the economy up to $2 billion per day, according to an <a href="https://www.aar.org/news/rail-service-interruption-could-cost-economy-2-billion-per-day/" target="_blank" rel="noopener">analysis</a> by the Association of American Railroads. Supply chain bottlenecks driven by <a href="https://www.dailywire.com/news/unemployment-rate-edges-upward-for-the-first-time-in-months-as-more-americans-return-to-work">labor shortages</a> and worldwide <a href="https://www.dailywire.com/news/apple-shifts-ipad-manufacturing-away-from-china-due-to-harsh-covid-lockdowns">government lockdowns</a> have impacted the American economy over the past two years, leading to <a href="https://www.dailywire.com/news/survey-economists-foresee-high-inflation-supply-chain-crisis-labor-shortages-lasting-well-into-2022">inflationary pressures</a> as consumer goods <a href="https://www.dailywire.com/news/grocery-stores-continue-to-experience-low-supply-of-goods">fail to reach shelves</a>.
A strike would have affected not just freight carriers, but Amtrak, which shares tracks with the haulers and had <a href="https://www.dailywire.com/news/amtrak-cancels-all-long-distance-travel-ahead-of-possible-nationwide-railroad-strike" target="_blank" rel="noopener">canceled long-distance routes</a> to ensure passengers didn’t get stranded by a strike. The people carrier was restoring those routes Thursday morning.

A CSX freight train is seen in Orlando. A pay dispute

Wee-Hours Deal Reached At Last Minute To Avert Crippling Railroad Workers’ Strike

Wee-Hours Deal Reached At Last Minute To Avert Crippling Railroad Workers' Strike

Biden Administration

Labor Unions

Unions

Tesla and SpaceX CEO <a href="http://dailywire.com/topic/elon-musk">Elon Musk</a> will not have to surrender his <a href="http://dailywire.com/topic/business">corporate</a> emails amid a legal battle with <a href="http://dailywire.com/topic/twitter">Twitter</a>, the judge overseeing the case decided on Tuesday.
Twitter is currently battling Musk in court over his <a href="https://www.dailywire.com/news/the-purge-is-coming-twitter-explodes-after-elon-musk-tanks-44-billion-deal">attempt to cancel</a> a previous offer to buy the social media platform for $44 billion. Lawyers representing Twitter have been attempting to compel the world’s richest man to provide messages from his Tesla and SpaceX accounts, which he had used to discuss the merger with advisers. Delaware Chancery Court Chancellor Kathaleen McCormick <a href="https://www.documentcloud.org/documents/22343657-decision-resolving-plaintiffs-third-discovery-motion-twitter-v-musk">denied</a> the attorneys’ request on the grounds that such an arrangement would violate attorney-client privilege.
“Musk had ‘unrestricted’ personal use of his Tesla email account, that ‘no one’ at Tesla can access those emails without Musk’s consent or ‘to the extent legally necessary,’ and that ‘nobody’ at SpaceX can access his email account without Musk’s express consent,” McCormick remarked based on affidavits from lawyers and information technology professionals at the two companies. “These additional facts make Musk’s expectation of privacy objectively reasonable. Twitter’s motion is denied.”
Email policies at SpaceX and Tesla, however, make clear that “employees have no privacy interest in their work emails” and note that the firms “reserve the right to monitor those emails,” according to McCormick. The rule that applies to Musk, therefore, appears to be an exception.
“A cynic might doubt that Musk-specific policies exist at SpaceX and Tesla. &#8230; Still, to this jurist, the evidence rings true,” McCormick continued. “The court has little doubt that neither SpaceX nor Tesla view him as on par with other employees, that he has the power to direct operational decisions, and that nobody at either company would access his information without first obtaining his approval.”
Musk’s desire to cancel the merger occurs as he claims that the actual share of <a href="https://www.dailywire.com/news/heres-the-latest-in-the-elon-musk-twitter-legal-feud">fake accounts</a> on the platform could range as high as 33% rather than the company’s reported 5%, with a lower number of monetizable daily active users potentially justifying a lower valuation.
Twitter attorneys contested Musk’s rationale for passing on the deal by producing text messages he sent to Michael Grimes, an executive at investment bank Morgan Stanley, indicating that he was concerned about macroeconomic conditions stemming from the Russian invasion of Ukraine. A trial to determine the status of the acquisition is <a href="https://www.dailywire.com/news/its-happening-five-day-trial-date-set-for-elon-musk-twitter-dispute">scheduled</a> for October 17.
A majority of Twitter shareholders <a href="https://www.dailywire.com/news/majority-of-twitter-shareholders-want-elon-musk-at-helm-of-the-company">voted</a> on Tuesday to greenlight the $44 billion merger deal with Musk, who remains the company’s largest shareholder through his 9.6% stake. Beyond large asset management companies such as Vanguard and BlackRock, billionaire Saudi Arabian investor Alwaleed bin Talal and former Twitter CEO Jack Dorsey are also among the largest shareholders, with 3.9% and 2.4% stakes, respectively.
In another victory for Musk’s legal team, McCormick granted attorneys representing Musk permission last week to use the testimony of former Twitter executive Peiter Zatko, who claimed in a recent <a href="https://www.dailywire.com/news/former-twitter-executive-blows-whistle-makes-explosive-claim-central-to-musk-acquisition-deal">whistleblower report</a> that his colleagues did not have the resources or motivation necessary to determine the number of fake accounts on the platform.
Zatko <a href="https://www.dailywire.com/news/whistleblower-reveals-what-information-twitter-collects-from-users">told</a> members of the Senate Judiciary Committee on Tuesday that the company has a number of cybersecurity problems, as well as exposure to foreign intelligence agencies. He claimed that every engineer at the firm could potentially gain access to user data through their access to internal production systems.
“If they wanted to root around in the data and find it, they could, and some have,” Zatko alleged.

Elon Musk

Judge Shoots Down Twitter’s Attempt To Access Elon Musk’s Emails

Elon Musk's Emails Cannot Be Used During Twitter Trial, Judge Decides

Twitter

A majority of <a href="http://dailywire.com/topic/twitter" target="_blank" rel="noopener">Twitter</a> shareholders voted in favor of a $44 billion deal to sell the social media <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">company</a> to Tesla and SpaceX CEO <a href="http://dailywire.com/topic/elon-musk" target="_blank" rel="noopener">Elon Musk</a>, according to a recent <a href="https://www.reuters.com/markets/deals/most-twitter-shareholders-vote-favor-sale-musk-sources-2022-09-12/" target="_blank" rel="noopener">report</a> from Reuters.
Multiple sources told the outlet that the deadline for shareholders to submit votes on the deal is on Tuesday, although a sufficient number of investors cast their ballots by Monday evening for the outcome to be determined.
Musk, however, is attempting to nix the merger. The world’s richest man <a href="https://www.dailywire.com/news/heres-the-latest-in-the-elon-musk-twitter-legal-feud" target="_blank" rel="noopener">claims</a> that the platform&#8217;s actual number of fake accounts — otherwise known as bots — could be as high as 33% rather than the company’s reported 5%. He argues a lower number of monetizable daily active users potentially justifies a lower valuation. Twitter is therefore <a href="https://www.dailywire.com/news/the-purge-is-coming-twitter-explodes-after-elon-musk-tanks-44-billion-deal" target="_blank" rel="noopener">battling</a> the multibillionaire in court over his desire to cancel the deal.
With a 9.6% stake in the company, Musk remains Twitter’s largest shareholder, according to a <a href="https://www.axios.com/2022/09/13/twitter-shareholders-vote-musk-zatko-whistleblower-testifies">report</a> from Axios. Beyond large asset management companies such as Vanguard and BlackRock, billionaire Saudi Arabian investor Alwaleed bin Talal and former Twitter CEO Jack Dorsey are among the largest shareholders, with 3.9% and 2.4% stakes, respectively.
Court proceedings last week <a href="https://www.dailywire.com/news/elon-musk-scores-win-in-court-battle-against-twitter">revealed</a> that Musk had texted Michael Grimes, a managing director at investment bank Morgan Stanley, on May 8 to express concerns about the Russian invasion of Ukraine and its effects on the global economy. “Let’s slow down just a few days. Putin speech tomorrow is extremely important,” Musk wrote. “It won’t make sense to buy Twitter if we’re heading into World War III.”
The text could potentially place Musk in breach of contract, which mandates that the buyer use his best efforts to complete an acquisition deal, and could refute the claim that an inaccurate count of fake users is behind his hesitancy to purchase the company.
As Musk mentioned, <a href="https://www.dailywire.com/news/recession-fears-lead-big-tech-companies-to-pause-hiring-cut-jobs">several technology companies</a> have managed macroeconomic risk by <a href="https://www.cnbc.com/2022/05/12/twitter-freezing-hiring-and-cutting-costs-as-execs-depart.html">pausing hiring</a> and <a href="https://fortune.com/2022/07/27/twitter-scaling-back-office-space-remote-work-costs/">reducing office space</a>. Twitter reported losses of $0.08 per share in its <a href="https://www.dailywire.com/news/twitter-misses-earnings-forecast-blames-elon-musk">second-quarter earnings</a>, falling below the $0.14 gain per share expected by analysts. The rough quarter was attributable to “advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk,” the company said in a <a href="https://www.prnewswire.com/news-releases/twitter-announces-second-quarter-2022-results-301591530.html">press release</a>.
Musk’s initial offer of $44 billion would give Twitter a valuation of $54.20 per share. The company was trading at roughly $40.50 per share as of Tuesday morning.
In a victory for Musk’s legal team, Delaware Chancery Court Chancellor Kathaleen McCormick granted attorneys representing Musk permission last week to use the testimony of former Twitter executive Peiter “Mudge” Zatko — who <a href="https://www.dailywire.com/news/former-twitter-executive-blows-whistle-makes-explosive-claim-central-to-musk-acquisition-deal">claimed</a> in a recent whistleblower report that his colleagues did not have the resources or motivation necessary to determine the number of bots on the platform.
Zatko, slated to testify before the Senate Judiciary Committee on Tuesday, claimed that Twitter leadership misled board members and government officials about vulnerabilities that left the company open to hacking, foreign manipulation, and spying. He asserted that one or more current employees work for a foreign intelligence agency.
“All engineers had access. There was no logging of who went into the environment or what they did,” Zatko asserted. “Nobody knew where data lived or whether it was critical, and all engineers had some form of critical access to the production environment.”

SpaceX And T-Mobile Hold Joint Event In Texas

Majority Of Twitter Shareholders Want Elon Musk At Helm Of The Company: Report

Twitter Shareholders Want Elon Musk To Lead The Company

Social Media

Small <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">businesses</a> are concerned about profit margins amid <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures, as well as issues such as <a href="http://dailywire.com/topic/crime" target="_blank" rel="noopener">crime</a> rates and stricter <a href="http://dailywire.com/topic/taxes" target="_blank" rel="noopener">tax</a> enforcement, according to a poll released by Job Creators Network.
The United States met the rule-of-thumb definition of a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a> — two consecutive quarters of negative output growth — two months ago as the economy <a href="https://www.dailywire.com/news/united-states-economy-shrinks-in-the-first-part-of-2022">shrank</a> at a 1.6% annualized rate in the first quarter and <a href="https://www.dailywire.com/news/u-s-in-a-recession-after-second-straight-quarter-of-negative-growth">contracted</a> at a 0.6% pace in the second quarter. According to the poll, conducted through the month of August and obtained by The Daily Wire on Monday, 57% of small business owners believe that the nation is in a recession, while 25% — less than half as many — say the opposite.
The month of August likewise saw the portion of small businesses that say gas prices have impacted profitability jump from 36% to 46%. Although gas prices have progressively declined from heights above <a href="https://www.dailywire.com/topic/gas-prices">$5.00 per gallon</a> earlier this summer, Job Creators Network noted that “most companies have already raised prices, and they aren’t able to do it again.”
The national average price of gasoline was $2.38 per gallon when President Joe Biden assumed office and <a href="https://www.dailywire.com/news/gas-prices-are-1-50-higher-since-biden-took-office-cnn-business-america-got-a-raise">increased</a> to $3.53 per gallon by the start of the Russian invasion. Prices are $3.72 per gallon as of Monday, according to <a href="https://gasprices.aaa.com/">data</a> from AAA. Biden has leased less government land for oil and gas drilling than any of his predecessors since World War II at this point in his first term, according to an <a href="https://www.dailywire.com/news/biden-administration-severely-cuts-back-on-oil-and-gas-leases">analysis</a> conducted by The Wall Street Journal.
A recent <a href="https://www.dailywire.com/news/white-house-releases-massive-document-detailing-bidens-economic-achievements">document</a> from the White House nevertheless pinned inflation and elevated gas prices on the Russian invasion of Ukraine. “President Biden is committed to tackling these immediate challenges, without giving up the substantial economic and labor market gains our economy has achieved,” the report said. “And we are seeing significant progress on that front, with a decline of more than $1.20 in gas prices this summer and overall prices in the economy declining moderately in July.”
Meanwhile, the poll shows that 65% of small businesses are concerned about crime and cybercrime — a figure that increases to 85% for minority entrepreneurs.
Rising violent crime has indeed driven companies away from major cities. Chicago, which <a href="https://www.dailywire.com/news/lightfoots-chicago-records-797-homicides-in-2021-most-among-u-s-cities">endured</a> 797 homicides in 2021 — more than any other American city — witnessed leading businesses such as Citadel, Boeing, and Caterpillar <a href="https://www.dailywire.com/news/illinois-billionaire-who-fled-chicago-amid-high-crime-has-poured-over-1-billion-into-new-home-state-of-florida">move</a> their headquarters to other parts of the country.
Roughly 70% of small business owners disapprove of expanding the IRS. The Inflation Reduction Act, which Biden signed last month, earmarks $80 billion to hire 87,000 new IRS employees — a move that officials promised will not target the middle class. Treasury Secretary Janet Yellen, for example, directed IRS Commissioner Charles Rettig to <a href="https://www.dailywire.com/news/janet-yellen-vows-irs-audits-wont-rise-for-middle-income-americans-but-theres-a-catch">refrain</a> from using any new resources “to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels.”
Yellen failed to clarify that “historical levels” of audits were far higher as recently as one decade ago. Audit rates for Americans earning between $25,000 to $200,000 fell 76% between 2010 and 2019, while those earning less than $25,000 saw audit rates fall by 61%, according to a <a href="https://www.gao.gov/assets/gao-22-104960.pdf">report</a> from the Government Accountability Office.

Closed Small Business

Crime, Profits, Taxes: New Poll Shows The Biggest Problems For Small Businesses

Crime

Economy

Recession

Taxes

Treasury Secretary <a href="https://www.dailywire.com/topic/janet-yellen" target="_blank" rel="noopener">Janet Yellen</a> lauded the <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">business</a> climate under President <a href="http://dailywire.com/topic/biden-administration" target="_blank" rel="noopener">Joe Biden</a> as “one of the quickest economic recoveries in our modern history.”
During a Thursday <a href="https://home.treasury.gov/news/press-releases/jy0939">speech</a> at Ford’s electric vehicle factory in Dearborn, Michigan, the official pinned the blame for crises like <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures, <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chain</a> bottlenecks, and high <a href="http://dailywire.com/topic/energy" target="_blank" rel="noopener">energy</a> costs on factors outside of the administration. Yet she praised the $1.9 trillion American Rescue Plan, the $740 billion Inflation Reduction Act, and other landmark packages signed by the commander-in-chief as causes for purportedly strong <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economic</a> conditions.
“Our plan has worked,” she commented. “The United States experienced the fastest pace of job creation in our history. Household balance sheets are strong. Businesses continue to invest. Our broad and inclusive recovery has outpaced that of many other large economies. And measured by gross domestic income, our economy continues to expand and is operating above levels that would have been predicted pre-pandemic.”
As measured by the far more often cited gross domestic product, however, the United States met the rule-of-thumb definition of a recession — two consecutive quarters of negative growth — last month as the economy <a href="https://www.dailywire.com/news/united-states-economy-shrinks-in-the-first-part-of-2022">shrank</a> at a 1.5% annualized rate in the first quarter and <a href="https://www.dailywire.com/news/u-s-in-a-recession-after-second-straight-quarter-of-negative-growth">contracted</a> at a 0.6% pace in the second quarter. Yellen’s remarks appear to be a pivot from her earlier <a href="https://www.dailywire.com/news/yellen-were-not-in-a-recession-were-in-a-transition-in-which-growth-is-slowing">claim</a> that the nation is not in a “recession,” but rather a “period of transition in which growth is slowing.”
“It’s fair to say: by any traditional metric, we have experienced one of the quickest economic recoveries in our modern history,” Yellen nevertheless said on Thursday.
Meanwhile, the personal saving rate — the share of disposable income Americans devote to savings — was 5% in August, according to <a href="https://fred.stlouisfed.org/series/PSAVERT">data</a> from the Bureau of Economic Analysis. Although households saved between 10% and 35% of their income in the months that followed the lockdown-induced recession, the personal savings rate is currently well below the 7% or more Americans typically saved through much of the last decade.
With respect to inflation, which may be causing Americans to <a href="https://www.dailywire.com/news/three-quarters-of-americans-say-they-are-tightening-their-belts-to-deal-with-recession">reduce spending</a>, Yellen deflected blame from the White House — although <a href="https://www.dailywire.com/news/biden-says-his-spending-agenda-took-america-from-an-economic-crisis-to-an-economic-recovery">reports</a> indicate that the American Rescue Plan worsened <a href="https://www.dailywire.com/news/unemployment-rate-edges-upward-for-the-first-time-in-months-as-more-americans-return-to-work">labor shortages</a> and contributed to other phenomena behind rising price levels.
“Now, Americans are rightfully concerned that higher prices are squeezing their day-to-day budgets and their longer-term savings,” Yellen continued. “The causes of inflation are largely global. But the pain of inflation is personal. This administration’s top economic priority is to combat inflation, even as we know the Federal Reserve has the primary role to play in restoring price stability.”
Biden has formerly pinned inflation on <a href="https://www.dailywire.com/news/biden-says-exxon-made-more-money-than-god-this-year-blames-them-for-gas-price-spike">corporate price gouging</a> and “<a href="https://www.dailywire.com/news/president-biden-blames-vladimir-putin-for-record-high-inflation">Putin’s Price Hike</a>.” As year-over-year inflation reached its highest levels in June, the commander-in-chief <a href="https://www.dailywire.com/news/biden-claims-inflation-is-worse-everywhere-but-here-thats-not-even-close-to-true">falsely claimed</a> that rising price levels are “worse everywhere but here” — though developed nations such as Germany, the United Kingdom, Canada, South Korea, and Japan had been experiencing lower inflation than the United States.
Yellen, who recently <a href="https://www.dailywire.com/news/janet-yellen-vows-irs-audits-wont-rise-for-middle-income-americans-but-theres-a-catch">argued</a> that an expanded Internal Revenue Service will not impact middle class Americans’ audit rate, also expressed her willingness to pursue more tax increases.
“This includes closing loopholes and returning tax rates for high earners and corporations to historical norms,” she said. “By making everyone pay their fair share, these reforms will provide our government with additional fiscal room to make critical investments.”

Treasury Secretary Janet Yellen Gives Economic Address At Ford’s Rouge Electric Vehicle Center

Janet Yellen: ‘We Have Experienced One Of The Quickest Economic Recoveries In Our Modern History’

‘Our Plan Has Worked’: Janet Yellen Gives Rosy View Of Biden Economy In Landmark Speech

Inflation

Janet Yellen

<a href="https://www.dailywire.com/topic/united-airlines" target="_blank" rel="noopener">United Airlines</a> announced a deal to buy up to 400 <a href="https://www.dailywire.com/topic/electric-vehicles" target="_blank" rel="noopener">electric</a> aircraft from Eve Air Mobility coupled with a $15 million investment in the <a href="http://dailywire.com/topic/business" target="_blank" rel="noopener">startup</a>.
According to a Thursday <a href="https://www.prnewswire.com/news-releases/united-invests-another-15-million-in-electric-flying-taxi-market-with-eve-301619758.html">press release</a>, United Airlines Ventures — a corporate fund created to jumpstart green energy solutions ahead of the company’s goal to reach net zero emissions by 2050 — signed a purchase agreement to buy 200 four-seat electric planes and options to buy as many as 200 additional vehicles. The first deliveries could occur as early as 2026.
&#8220;United has made early investments in several cutting-edge technologies at all levels of the supply chain, staking out our position as a leader in aviation sustainability and innovation,&#8221; United Airlines Ventures President Michael Leskinen remarked. &#8220;We believe our suite of clean energy technologies will revolutionize air travel as we know it and serve as the catalyst for the aviation industry to move toward a sustainable future.&#8221;
United intends to leverage the new aircraft as taxis in urban environments and as offerings for passengers traveling to hub airports. The startup’s “electric vertical take-off and landing vehicle” (eVTOL) uses electric motors rather than combustion engines and has a range of 60 miles.
&#8220;United&#8217;s investment in Eve reinforces the trust in our products and services and strengthens our position in the North American market,&#8221; Eve co-CEO Andre Stein added.
Last year, United also <a href="https://archer.com/news/archer-receives-10-million-pre-delivery-payment-from-united-airlines-for-100-evtol-aircraft-advances-path-to-commercialization">committed</a> to spending $10 million on 100 eVTOLs from Archer Aviation, which will include <a href="https://www.archer.com/technologies">software</a> to permit autonomous takeoff and landing.
United’s most recent announcement comes as Democratic lawmakers encourage a shift toward electric vehicles. The Inflation Reduction Act, which President Joe Biden signed last month, <a href="https://www.dailywire.com/news/bidens-inflation-bill-made-7500-electric-vehicle-tax-credits-ford-and-gm-just-raised-their-prices-by-the-same-amount">greenlit</a> $7,500 tax credits for the purchase of new electric cars.
Meanwhile, the California Air Resources Board <a href="https://www.dailywire.com/news/california-expected-to-ban-sale-of-new-gas-cars">issued rules</a> requiring 35% of new vehicles to produce zero emissions by 2026 — a standard that will rise to a 68% benchmark by 2030 and a 100% level by 2035. The legislatures of Massachusetts, Washington, and Virginia have previously <a href="https://www.dailywire.com/news/two-more-states-follow-californias-ban-on-new-gas-cars">passed</a> laws conforming their states to standards approved by the agency.
Experts have warned, however, that the nation’s power grid will require significant upgrades to manage a rapid transition away from gas-powered vehicles. “Today, most people charge their electric cars when they come home in the evening — when electricity demand is typically at its peak,” an <a href="https://www.ece.cornell.edu/spotlights/prepare-grid-now-power-electric-vehicles">article</a> from researchers at Cornell University’s College of Engineering said. “If left unmanaged, the power demanded from many electric vehicles charging simultaneously in the evening will amplify existing peak loads, potentially outstripping the grid’s current capacity to meet demand.”
The Golden State’s efforts to pivot away from gas vehicles came under further scrutiny once the California Independent System Operator told residents to <a href="https://www.dailywire.com/news/california-extends-warning-for-residents-to-avoid-charging-electric-vehicles-as-available-power-supplies-tighten">avoid charging</a> their electric cars during certain times to protect the electric grid during a heatwave.
As Europe faces an energy crisis amid its rapid transition away from fossil fuels, Tesla CEO Elon Musk recently <a href="https://www.dailywire.com/news/civilization-will-crumble-elon-musk-issues-dire-warning-about-rapid-shift-to-green-energy">cautioned</a> that rushing renewable energy adoption endangers the global economy. “Realistically I think we need to use oil and gas in the short term, because otherwise civilization will crumble,” the executive told reporters at a summit in Norway. “One of the biggest challenges the world has ever faced is the transition to sustainable energy and to a sustainable economy. That will take some decades to complete.”

eVTOL-United-graphic

Major Airline Places Massive Bet On Electric Planes

United Airlines To Buy Up To 400 Electric Planes

electric vehicles

United Airlines

<a href="https://www.dailywire.com/topic/apple" target="_blank" rel="noopener">Apple</a> CEO <a href="https://www.dailywire.com/topic/tim-cook" target="_blank" rel="noopener">Tim Cook</a> dismissed the notion that the <a href="http://dailywire.com/topic/tim-cook" target="_blank" rel="noopener">technology</a> company should make iPhones more compatible with devices that run the Android operating system.
At a Wednesday night event, the executive <a href="https://www.theverge.com/2022/9/7/23342243/tim-cook-apple-rcs-imessage-android-iphone-compatibility" target="_blank" rel="noopener">responded</a> to a question from Vox Media journalist LiQuan Hunt about enabling Rich Communication Services (RCS) — a protocol that would replace SMS messages with a more comprehensive texting system — into iPhone products.
“I don’t hear our users asking that we put a lot of energy in on that at this point,” responded Cook, who replaced Apple co-founder Steve Jobs in 2011. “I would love to convert you to an iPhone.”
Apple held a 48% share of the American smartphone market in the second quarter of 2022, according to <a href="https://www.counterpointresearch.com/us-market-smartphone-share/" target="_blank" rel="noopener">data</a> from research firm Counterpoint, with Samsung — which uses Android in many of its products — falling in second place with a 30% market share.
When Hunt noted that his mother is unable to watch the videos he sends via text due to the incompatibility between iMessage and RCS, Cook responded: “Buy your mom an iPhone.”
Google, which commercially sponsors Android, has mounted a <a href="https://www.android.com/get-the-message/" target="_blank" rel="noopener">publicity campaign</a> against Apple to pressure the market leader into adopting the RCS protocol. “It’s not about the color of the bubbles. It’s the blurry videos, broken group chats, missing read receipts and typing indicators, no texting over Wi-Fi, and more,” a webpage from Android argues. “These problems exist because Apple refuses to adopt modern texting standards when people with iPhones and Android phones text each other.”
Cook’s remarks come days after Apple <a href="https://www.apple.com/iphone-14-pro/" target="_blank" rel="noopener">launched</a> four new iPhones and three new Apple Watches — including the iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and Apple Watch Ultra — at a press event. The new smartphones will allow users to place emergency calls in areas without cell service by pointing their devices at satellites.
“It was a great day at Apple Park, introducing the world to products that are essential to our daily lives and that work seamlessly together,” Cook <a href="https://twitter.com/tim_cook/status/1567634224978575361" target="_blank" rel="noopener">said</a> via social media on Wednesday.
Members of Congress have been eyeing Apple and other technology companies for possible antitrust violations. Although proposals such as the Open App Markets Act and the American Innovation and Choice Online Act — which would have restricted companies with their own shopping platforms or app stores from promoting their own products against other offerings — have <a href="https://www.dailywire.com/news/as-senate-weighs-antitrust-bills-apples-ceo-called-ted-cruz-with-significant-concerns" target="_blank" rel="noopener">failed to advance</a> through Congress in recent months, the American Data Privacy and Protection Act was <a href="https://www.dailywire.com/news/congress-weighs-data-privacy-bill-that-would-regulate-targeted-ads-online" target="_blank" rel="noopener">greenlit</a> by the House Energy and Commerce Committee at the end of July.
The legislation would adopt a “data minimization” approach toward firms’ collection of user information such that only the data points “reasonably necessary and proportionate” to specific applications — including user authentication, fraud prevention, and transaction execution — are gathered. According to an <a href="https://www.wired.com/story/american-data-privacy-protection-act-adppa/" target="_blank" rel="noopener">analysis</a> from Wired, the bill would differ from the European Union’s General Data Protection Regulation (GDPR), under which users must consent to the presence of cookies — files created by websites to track an individual’s online behavior.
While the legislation does not entirely ban online targeted advertising — which is often the motive for sites’ collection of user data — it prohibits such advertising directed toward children or based upon “sensitive covered data,” including health information, precise geolocation, and private messages.

Apple Holds Launch Event For New Products At Its Headquarters

‘Buy Your Mom An iPhone’: Apple CEO Brushes Off Request To Improve Texting Experience With Android

Apple CEO Tim Cook Dismisses Request To Implement RCS Texting

Apple

Tim Cook

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