MADRID — NATO leaders will formally invite Finland and Sweden to join the alliance on Wednesday after Turkey lifted its veto on their membership, NATO’s secretary-general said Tuesday evening, clearing the way for what would be one of the most significant expansions of the alliance in decades.
The historic deal, following Turkey’s agreement to a memorandum with the two Nordic countries, underscored how the war in Ukraine has backfired for President Vladimir V. Putin, subverting Russian efforts to weaken NATO and pushing Sweden and Finland, which were neutral and nonaligned for decades, into the alliance’s arms.
After weeks of talks, capped by an hourslong meeting in Madrid, President Recep Tayyip Erdogan of Turkey agreed to lift his block on Sweden and Finland’s membership in return for a set of actions and promises that they will act against terrorism and terrorist organizations.
“As NATO allies, Finland and Sweden commit to fully support Turkey against threats to its national security,” NATO’s Secretary General Jens Stoltenberg said, providing some details of the agreement. “This includes further amending their domestic legislation, cracking down on P.K.K. activities and entering into an agreement with Turkey on extradition,” he added, referring to the Kurdistan Workers’ Party which seeks an independent Kurdish state on territory partly within Turkey’s borders.
Mr. Erdogan had been blocking the Nordic countries’ NATO bids amid concerns over Sweden’s longtime support for the P.K.K. which has attacked nonmilitary targets and killed civilians in Turkey, is outlawed in that country and is designated by both the United States and the European Union as a terrorist organization.
But the memorandum does not specify the extradition of any of the 45 people or so Mr. Erdogan wanted sent to Turkey to face trial on terrorism charges. Sweden has already passed tougher legislation against terrorism that goes into effect July 1.
Both Finland and Sweden had been militarily nonaligned for many years, but decided to apply to join the alliance after Russia invaded Ukraine in February. With Russia attacking a neighbor, both countries felt vulnerable, though Sweden, with a long tradition of neutrality, was more hesitant.
President Vladimir V. Putin of Russia warned both countries against joining NATO, but his threats proved counterproductive.
The two countries bring geostrategic benefits to the alliance. Finland shares an 830-mile border with Russia and has a well-equipped modern army; Sweden can control the entrance to the Baltic Sea, which will help a great deal in NATO planning to defend the more vulnerable countries in Eastern Europe.
The final push to resolve the dispute started early Tuesday morning, when President Biden called Mr. Erdogan to urge him to “seize the moment” on the eve of the summit, to allow discussions on other topics to proceed, according to a senior administration official with knowledge of the discussion.
The official, who requested anonymity to discuss private deliberations, said the president conveyed the substance of his conversation with Mr. Erdogan to the leaders of Finland and Sweden. And after several hours of negotiations later that night, the two Nordic leaders consulted with Mr. Biden again before announcing the agreement with Turkey.
The American official said that the deal between Turkey and the two Nordic countries involved a series of compromises on both sides, including the statement by Turkey welcoming Finland and Sweden to apply and issues involving an arms embargo imposed on Turkey and Turkey’s belief that Finland and Sweden had offered safe havens to groups they considered terrorists.
American officials had for days played down Mr. Biden’s role in the negotiations, saying he would not be a broker between the other countries and insisted that it was up to Turkey, Finland and Sweden to resolve their differences.
After the agreement was announced Tuesday night, the senior administration official conceded that it was considered more diplomatic to publicly minimize Mr. Biden’s involvement. Doing so prevented Turkey from seeking concessions from the United States for agreeing to lift its veto, which might have complicated the discussions, the official said.
The next steps for Finland and Sweden are clear: NATO will vote on Wednesday to accept their applications. There will also be a quick study of their defense capacities and needs. But the talks are expected to be routine, since both countries are NATO partners and have exercised together with NATO allies.
The more difficult last step requires the legislatures of all 30 current members to vote to amend the NATO founding treaty to accept the new members. That has in the past taken up to a year, but is expected to be much quicker for the Nordic countries.
The U.S. Senate is already pressing ahead with hearings on the application and Mr. Biden has been a firm proponent of the new members.
Johanna Lemola contributed reporting from Helsinki, Finland.
ALPHARETTA, Ga.–(BUSINESS WIRE)–Tech Alpharetta, the nonprofit organization helping the City of Alpharetta to lead in innovation, announces that YARDZ has graduated from its Innovation Center.
YARDZ becomes the 20th graduate from Tech Alpharetta’s startup incubator, which opened in the City of Alpharetta in 2015.
YARDZ is a construction asset tracking platform that enables its construction industry customers to aggregate, automate, and manage the lifecycle of equipment rented or owned by those customers. YARDZ joined Tech Alpharetta in March 2020. The company has grown significantly since its founding, outgrowing its Innovation Center office, and now, headquartering in the City of Alpharetta.
“YARDZ’s team members worked long hours at our Center every day for more than two years, but they always found the time to pay it forward, by volunteering their time and expertise to other entrepreneurs and to the community,” notes Tech Alpharetta President and CEO, Karen Cashion. “We’re so happy that they’ve chosen to headquarter and grow their company here in Alpharetta.”
“Tech Alpharetta provided us with so much valuable support, from introductions and connections, to mentoring and resources, along with a welcoming community of tech entrepreneurs,” shares YARDZ co-founder and CEO Jason Perez. “Headquartering here in Alpharetta was the obvious choice for us.”
Tech Alpharetta’s Innovation Center is a thriving tech-startup incubator in Alpharetta that provides education, mentoring and other resources to its startup members to help them grow and succeed.
About Tech Alpharetta
Tech Alpharetta (previously the Alpharetta Technology Commission), the first organization of its kind in Georgia, was established in 2012 by the City of Alpharetta and is an independent, 501(c)(6) nonprofit organization today. The organization, whose mission is to help grow technology and innovation in Alpharetta, includes a strategic advisory board of Alpharetta’s leading technology companies, thought leadership events for area tech executives, and the Tech Alpharetta Innovation Center, a flourishing tech startup incubator that is home to more than 40 tech startups.
BERLIN — Russia’s invasion of Ukraine seemed like an unexpected opportunity for environmentalists, who had struggled to focus the world’s attention on the kind of energy independence that renewable resources can offer. With the West trying to wean itself from Russian oil and gas, the argument for solar and wind power seemed stronger than ever.
But four months into the war, the scramble to replace Russian fossil fuels has triggered the exact opposite. As the heads of the Group of 7 industrialized nations gather in the Bavarian Alps for a meeting that was supposed to cement their commitment to the fight against climate change, fossil fuels are having a wartime resurgence, with the leaders more focused on bringing down the price of oil and gas than immediately reducing their emissions.
Nations are reversing plans to stop burning coal. They are scrambling for more oil and are committing billions to building terminals for liquefied natural gas, known as L.N.G.
coal plants that had been shuttered or were scheduled to be phased out.
as top economic officials in Ukraine, say it would serve two key purposes: increasing the global supply of oil to put downward pressure on oil and gasoline prices, while reducing Russia’s oil revenue.
Proponents say it is likely that Russia would continue to produce and sell oil even at a discount because it would be easier and more economical than capping wells to cut production. Simon Johnson, an economist at the Massachusetts Institute of Technology, estimates that it could be in Russia’s economic interest to continue selling oil with a price cap as low as $10 a barrel.
Some proponents say it is possible that China and India would also insist on paying the discounted price, further driving down Russian revenues.
Critics charge that building all 12 terminals would produce an excess capacity. But even half that number would produce three-quarters of the carbon emissions Germany is allowed under international agreements, according to a recent report published by a German environmental watchdog. The terminals would be in use until 2043, far too long for Germany to become carbon neutral by 2045, as pledged by Mr. Scholz’s government.
And countries are not just investing in infrastructure at home.
Last month, Mr. Scholz was in Senegal, one of the developing countries invited to the Group of 7 summit, to discuss cooperating not just on renewables but also on gas extraction and L.N.G. production.
In promoting the Senegal gas project, analysts say, Berlin is violating its own Group of 7 commitment not to offer public financing guarantees for fossil fuel projects abroad.
These contradictions have not gone unnoticed by poorer nations, which are wondering how Group of 7 countries can push for commitments to climate targets while also investing in gas production and distribution.
One explanation is a level of lobbying among fossil fuel companies not seen for years, activists say.
“It looks to me like an attempt by the oil and gas industry to end-run the Paris Agreement,” said Bill Hare of Climate Analytics, an advisory group in Berlin, referring to the landmark 2015 international treaty on climate change. “And I’m very worried they might succeed.”
Ms. Morgan in the German Foreign Ministry shares some of these concerns. “They’re doing everything that they can to move it forward, also in Africa,” she said of the industry. “They want to lock it in. Not just gas, but oil and gas and coal.”
But she and others are still hopeful that the Group of 7 can become a platform for tying climate goals to energy security.
Environmental and foreign policy analysts argue that the Group of 7 could support investments in renewable energy and energy efficiency, while pledging funds for poorer nations hit with the brunt of climate disasters.
Above all, activists warn, rich countries need to resist the temptation to react to the short-term energy shortages by once again betting on fossil fuel infrastructure.
“All the arguments are on the table now,” said Ms. Neubauer, the Fridays for Future activist. “We know exactly what fossil fuels do to the climate. We also know very well that Putin is not the only autocrat in the world. We know that no democracy can be truly free and secure as long as it depends on fossil fuel imports.”
Katrin Bennhold Bennhold reported from Berlin, and Jim Tankersley from Telfs, Austria. Erika Solomon and Christopher F. Schuetze contributed reporting from Berlin.
Most weekend mornings, Jaz Brisack gets up around 5, wills her semiconscious body into a Toyota Prius and winds her way through Buffalo, to the Starbucks on Elmwood Avenue. After a supervisor unlocks the door, she clocks in, checks herself for Covid symptoms and helps get the store ready for customers.
“I’m almost always on bar if I open,” said Ms. Brisack, who has a thrift-store aesthetic and long reddish-brown hair that she parts down the middle. “I like steaming milk, pouring lattes.”
The Starbucks door is not the only one that has been opened for her. As a University of Mississippi senior in 2018, Ms. Brisack was one of 32 Americans who won Rhodes scholarships, which fund study in Oxford, England.
in public support for unions, which last year reached its highest point since the mid-1960s, and a growing consensus among center-left experts that rising union membership could move millions of workers into the middle class.
white-collar workers has coincided with a broader enthusiasm for the labor movement.
In talking with Ms. Brisack and her fellow Rhodes scholars, it became clear that the change had even reached that rarefied group. The American Rhodes scholars I encountered from a generation earlier typically said that, while at Oxford, they had been middle-of-the-road types who believed in a modest role for government. They did not spend much time thinking about unions as students, and what they did think was likely to be skeptical.
“I was a child of the 1980s and 1990s, steeped in the centrist politics of the era,” wrote Jake Sullivan, a 1998 Rhodes scholar who is President Biden’s national security adviser and was a top aide to Hillary Clinton.
By contrast, many of Ms. Brisack’s Rhodes classmates express reservations about the market-oriented policies of the ’80s and ’90s and strong support for unions. Several told me that they were enthusiastic about Senators Bernie Sanders and Elizabeth Warren, who made reviving the labor movement a priority of their 2020 presidential campaigns.
Read More on Organized Labor in the U.S.
Even more so than other indicators, such a shift could foretell a comeback for unions, whose membership in the United States stands at its lowest percentage in roughly a century. That’s because the kinds of people who win prestigious scholarships are the kinds who later hold positions of power — who make decisions about whether to fight unions or negotiate with them, about whether the law should make it easier or harder for workers to organize.
As the recent union campaigns at companies like Starbucks, Amazon and Apple show, the terms of the fight are still largely set by corporate leaders. If these people are increasingly sympathetic to labor, then some of the key obstacles to unions may be dissolving.
suggested in April. The company has identified Ms. Brisack as one of these interlopers, noting that she draws a salary from Workers United. (Mr. Bonadonna said she was the only Starbucks employee on the union’s payroll.)
point out flaws — understaffing, insufficient training, low seniority pay, all of which they want to improve — they embrace Starbucks and its distinctive culture.
They talk up their sense of camaraderie and community — many count regular customers among their friends — and delight in their coffee expertise. On mornings when Ms. Brisack’s store isn’t busy, employees often hold tastings.
A Starbucks spokesman said that Mr. Schultz believes employees don’t need a union if they have faith in him and his motives, and the company has said that seniority-based pay increases will take effect this summer.
onetime auto plant. The National Labor Relations Board was counting ballots for an election at a Starbucks in Mesa, Ariz. — the first real test of whether the campaign was taking root nationally, and not just in a union stronghold like New York. The room was tense as the first results trickled in.
“Can you feel my heart beating?” Ms. Moore asked her colleagues.
win in a rout — the final count was 25 to 3. Everyone turned slightly punchy, as if they had all suddenly entered a dream world where unions were far more popular than they had ever imagined. One of the lawyers let out an expletive before musing, “Whoever organized down there …”
union campaign he was involved with at a nearby Nissan plant. It did not go well. The union accused the company of running a racially divisive campaign, and Ms. Brisack was disillusioned by the loss.
“Nissan never paid a consequence for what it did,” she said.(In response to charges of “scare tactics,” the company said at the time that it had sought to provide information to workers and clear up misperceptions.)
Mr. Dolan noticed that she was becoming jaded about mainstream politics. “There were times between her sophomore and junior year when I’d steer her toward something and she’d say, ‘Oh, they’re way too conservative.’ I’d send her a New York Times article and she’d say, ‘Neoliberalism is dead.’”
In England, where she arrived during the fall of 2019 at age 22, Ms. Brisack was a regular at a “solidarity” film club that screened movies about labor struggles worldwide, and wore a sweatshirt that featured a head shot of Karl Marx. She liberally reinterpreted the term “black tie” at an annual Rhodes dinner, wearing a black dress-coat over a black antifa T-shirt.
climate technology start-up, lamented that workers had too little leverage. “Labor unions may be the most effective way of implementing change going forward for a lot of people, including myself,” he told me. “I might find myself in labor organizing work.”
This is not what talking to Rhodes scholars used to sound like. At least not in my experience.
I was a Rhodes scholar in 1998, when centrist politicians like Bill Clinton and Tony Blair were ascendant, and before “neoliberalism” became such a dirty word. Though we were dimly aware of a time, decades earlier, when radicalism and pro-labor views were more common among American elites — and when, not coincidentally, the U.S. labor movement was much more powerful — those views were far less in evidence by the time I got to Oxford.
Some of my classmates were interested in issues like race and poverty, as they reminded me in interviews for this article. A few had nuanced views of labor — they had worked a blue-collar job, or had parents who belonged to a union, or had studied their Marx. Still, most of my classmates would have regarded people who talked at length about unions and class the way they would have regarded religious fundamentalists: probably earnest but slightly preachy, and clearly stuck in the past.
Kris Abrams, one of the few U.S. Rhodes Scholars in our cohort who thought a lot about the working class and labor organizing, told me recently that she felt isolated at Oxford, at least among other Americans. “Honestly, I didn’t feel like there was much room for discussion,” Ms. Abrams said.
typically minor and long in coming.
has issued complaints finding merit in such accusations. Yet the union continues to win elections — over 80 percent of the more than 175 votes in which the board has declared a winner. (Starbucks denies that it has broken the law, and a federal judge recently rejected a request to reinstate pro-union workers whom the labor board said Starbucks had forced out illegally.)
Twitter was: “We appreciate TIME magazine’s coverage of our union campaign. TIME should make sure they’re giving the same union rights and protections that we’re fighting for to the amazing journalists, photographers, and staff who make this coverage possible!”
The tweet reminded me of a story that Mr. Dolan, her scholarship adviser, had told about a reception that the University of Mississippi held in her honor in 2018. Ms. Brisack had just won a Truman scholarship, another prestigious award. She took the opportunity to urge the university’s chancellor to remove a Confederate monument from campus. The chancellor looked pained, according to several attendees.
“My boss was like, ‘Wow, you couldn’t have talked her out of doing that?’” Mr. Dolan said. “I was like, ‘That’s what made her win. If she wasn’t that person, you all wouldn’t have a Truman now.’”
(Mr. Dolan’s boss at the time did not recall this conversation, and the former chancellor did not recall any drama at the event.)
The challenge for Ms. Brisack and her colleagues is that while younger people, even younger elites, are increasingly pro-union, the shift has not yet reached many of the country’s most powerful leaders. Or, more to the point, the shift has not yet reached Mr. Schultz, the 68-year-old now in his third tour as Starbucks’s chief executive.
She recently spoke at an Aspen Institute panel on workers’ rights. She has even mused about using her Rhodes connections to make a personal appeal to Mr. Schultz, something that Mr. Bensinger has pooh-poohed but that other organizers believe she just may pull off.
“Richard has been making fun of me for thinking of asking one of the Rhodes people to broker a meeting with Howard Schultz,” Ms. Brisack said in February.
“I’m sure if you met Howard Schultz, he’d be like, ‘She’s so nice,’” responded Ms. Moore, her co-worker. “He’d be like, ‘I get it. I would want to be in a union with you, too.’”
Speaking to the press after his meetings with European leaders on Thursday, President Volodymyr Zelensky praised the support they showed for Ukraine’s candidacy to join the European Union but said more immediate military aid would be needed to stand against Russia.
“The very course of European history has proved the correctness of the E.U.’s positive response to Ukraine’s aspirations,” he said. It will, he said, “strengthen freedom in Europe and become one of the key European decisions of the first third of the 21st century.”
At the same time, he appealed again for more heavy weapons, especially for the battlefields in eastern Ukraine.
“We expect new supplies, especially heavy weapons, modern rocket artillery and missile defense systems,” he said. “Each batch of supplies saves people’s lives. And every day of delays or postponed decisions is an opportunity for the Russian military to kill Ukrainians.”
Talks, he said, will not end the war. “We touched on the theme of diplomatic efforts of various countries to achieve peace,” he said. “Everybody sees the only obstacle to all these efforts is the unreadiness of the Russian Federation for real actions, for real negotiations.”
In his nightly address, Mr. Zelensky said that the meeting was a “big step,” and thanked the leaders of Italy, Romania, France and Germany for their defense aid. Mr. Zelensky also said that Romania, which shares a border with Ukraine, would assist Ukraine in the transit of its goods, including exporting grain.
Before the visit, an adviser to Mr. Zelensky said far more weaponry would be needed to turn the tide in battles in the east. Ukraine will need 1,000 howitzers, 500 tanks and 300 rocket artillery systems, the aide said.
During NATO minister meetings on Wednesday, the United States promised more than $1 billion in new military aid for Ukraine, including many long-range artillery and missile systems. So far, the United States has provided 108 towed howitzers, 200 armored personnel carriers, 800 Stinger antiaircraft missiles and 2,000 Javelin anti-tank missiles.
But European weapons transfers have lagged, comparatively. Mr. Macron on Thursday promised an additional six self-propelled Caesar howitzers, in addition to 12 already supplied. Germany has provided 14 armored personnel carriers and 2,500 antiaircraft missiles, including Stingers.
A sense of disappointment was palpable among Ukrainian commentators and even some officials in Mr. Zelensky’s government on Thursday over perceived attempts in Europe to push Ukraine toward negotiations with Russia at this stage.
Viktor Andrusiv, an adviser to the interior minister, posted on social media that “Macron, Scholz and Draghi are bringing us candidacy for the E.U. and a request to return to the negotiating process with Putin.”
The European Commission is expected to unveil its official recommendation on Ukraine’s application to become a member of the European Union on Friday and, officials say, it is likely to recommend that the nation be granted candidate status.
Still, though overshadowed now by war, the expected acceptance of Ukraine’s application to join the bloc was widely celebrated as a breakthrough for Ukraine, even though the process of joining the bloc is arduous and can take as long as a decade.
To join, a country must also make its political system, judiciary and economy compatible with the bloc by adopting the E.U.’s system of common law, as well as more than 80,000 pages of rules and regulations.
Nevertheless, the desire to link Ukraine more closely to Europe was the issue that animated street protesters who toppled a pro-Russian president eight years ago.
And the prospect of eventually joining would help rally Ukrainians today by signaling a postwar future within the European Union and an end to perceptions of Ukraine as a security buffer zone with Russia, Oleksiy Honcharenko, a member of Parliament, said in an interview.
“It’s a psychological weapon to demonstrate that Ukraine has a future,” he said.
SAN FRANCISCO — No one wanted to miss out on the cryptocurrency mania.
Over the last two years, as the prices of Bitcoin and other virtual currencies surged, crypto start-ups proliferated. Companies that market digital coins to investors flooded the airwaves with TV commercials, newfangled lending operations offered sky-high interest rates on crypto deposits and exchanges like Coinbase that allow investors to trade digital assets went on hiring sprees.
A global industry worth hundreds of billions of dollars rose up practically overnight. Now it is crashing down.
After weeks of plummeting cryptocurrency prices, Coinbase said on Tuesday that it was cutting 18 percent of its employees, after layoffs at other crypto companies like Gemini, BlockFi and Crypto.com. High-profile start-ups like Terraform Labs have imploded, wiping away years of investments. On Sunday, an experimental crypto bank, Celsius, abruptly halted withdrawals.
dropped by about 65 percent since autumn, and analysts predict the sell-off will continue. Stock prices of crypto companies have cratered, retail traders are fleeing and industry executives are predicting a prolonged slump that could put more companies in jeopardy.
stocks crashing, interest rates soaring and inflation high, cryptocurrency prices are also collapsing, showing they have become tied to the overall market. And as people pull back from crypto investments, the outflow is exposing the unstable foundations of many of the industry’s most popular companies.
OpenSea, the largest marketplace for the unique digital images known as nonfungible tokens, reached a staggering $13 billion valuation. And Wall Street banks such as JPMorgan Chase, which previously shunned crypto assets, and Fortune 500 companies like PayPal rolled out crypto offerings.
confidence evaporated in the early 2000s, many of the dot-coms went bust, leaving just the biggest — such as eBay, Amazon and Yahoo — standing.
Read More on the World of Cryptocurrencies
This time, investors predict there will be more survivors. “You certainly have some overhyped companies that don’t have the fundamentals,” said Mike Jones, an investor at the venture firm Science Inc. “But you also have some really strong companies that are trading way below where they should.”
There have been warning signs that some crypto companies were not sustainable. Skeptics have pointed out that many of the most popular firms offered products underpinned by risky financial engineering.
Terraform Labs, for example, offered TerraUSD, a so-called stablecoin with a fixed value linked to the U.S. dollar. The coin was hyped by its founder, Do Kwon, who raised more than $200 million from major investment firms such as Lightspeed Venture Partners and Galaxy Digital, even as critics warned that the project was unstable.
The coin’s price was algorithmically linked to a sister cryptocurrency, Luna. When the price of Luna plummeted in May, TerraUSD fell in tandem — a “death spiral” that destabilized the broader market and plunged some investors into financial ruin.
drew scrutiny from several state regulators. In the end, a drop in crypto prices appeared to put the company under more pressure than it could withstand.
With the price of Bitcoin tumbling, Celsius announced on Sunday that it was freezing withdrawals “due to extreme market conditions.” The company did not respond to a request for comment.
The market instability has also triggered a crisis at Coinbase, the largest U.S. crypto exchange. Between the end of 2021 and late March, Coinbase lost 2.2 million active customers, or 19 percent of its total, as crypto prices dropped. The company’s net revenue in the first three months of the year shrank 27 percent from a year earlier, to $1.2 billion. Its stock price has plunged 84 percent since it went public last year.
This month, Coinbase said it would rescind job offers and extend a hiring freeze to battle the economic downturn. On Tuesday, it said it would cut about 1,100 workers.
Brian Armstrong, Coinbase’s chief executive, informed employees of the layoffs in a note on Tuesday morning, saying the company “grew too quickly” as crypto products became popular.
Expand Your Cryptocurrency Vocabulary
Card 1 of 9
Bitcoin. A Bitcoin is a digital token that can be sent electronically from one user to another, anywhere in the world. Bitcoin is also the name of the payment network on which this form of digital currency is stored and moved.
Blockchain. A blockchain is a database maintained communally and that reliably stores digital information. The original blockchain was the database on which all Bitcoin transactions were stored, but non-currency-based companies and governments are also trying to use blockchain technology to store their data.
Coinbase. The first major cryptocurrency company to list its shares on a U.S. stock exchange, Coinbase is a platform that allows people and companies to buy and sell various digital currencies, including Bitcoin, for a transaction fee.
Web3. The name “web3” is what some technologists call the idea of a new kind of internet service that is built using blockchain-based tokens, replacing centralized, corporate platforms with open protocols and decentralized, community-run networks.
DAOs. A decentralized autonomous organization, or DAO, is an organizational structure built with blockchain technology that is often described as a crypto co-op. DAOs form for a common purpose, like investing in start-ups, managing a stablecoin or buying NFTs.
“It is now clear to me that we over-hired,” he wrote. A Coinbase spokesman declined to comment.
“It had been growth at all costs over the last several years,” said Ryan Coyne, who covers crypto companies and financial technology at the Mizuho Group. “It’s now turned to profitable growth.”
memo to staff, the Winklevoss twins said the industry had entered a “crypto winter.”
commercial starring the actor Matt Damon, who declared that “fortune favors the brave” as he encouraged investors to put their money in the crypto market. Last week, Crypto.com’s chief executive announced that he was laying off 5 percent of the staff, or 260 people. On Monday, BlockFi, a crypto lending operation, said it was reducing its staff by roughly 20 percent.
Gemini and BlockFi declined to comment. A Crypto.com spokesman said the company remains focused on “investing resources into product and engineering capabilities to develop world-class products.”
Cryptocurrencies have long been volatile and prone to boom-and-bust cycles. In 2013, a Chinese ban on Bitcoin sent its price tumbling. In 2017, a proliferation of companies creating and selling their own tokens led to a run-up in crypto prices, which crashed after regulators cracked down on so-called initial coin offerings.
These bubbles are built into the ecosystem, crypto enthusiasts said. They attract talented people to the industry, who go on to build valuable projects. Many of the most vocal cheerleaders encourage investors to “buy the dip,” or invest more when prices are low.
“We have been in these downward spirals before and recovered,” Mr. Jones, the Science Inc. investor, said. “We all believe in the fundamentals.”
Some of the companies have also remained defiant. During Game 5 of the N.B.A. finals on Monday night, Coinbase aired a commercial that alluded to past boom-and-bust cycles.
“Crypto is dead,” it declared. “Long live crypto.”
MILL VALLEY, Calif.–(BUSINESS WIRE)–Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for homebuyers and renters, today announced that it priced $200,000,000 aggregate principal amount of its 7.75% convertible senior notes due 2027 (the “Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The aggregate principal amount of the offering was increased from the previously announced offering size of $150,000,000. Redwood granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $30,000,000 principal amount of Notes. The Notes will be senior unsecured obligations of Redwood. The offering is expected to close on June 9, 2022, subject to the satisfaction of certain closing conditions.
Interest on the Notes will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2022; the Notes will mature on June 15, 2027, unless earlier repurchased, redeemed or converted. Upon conversion, holders of the Notes will receive shares of Redwood’s common stock, together with cash in lieu of any fractional share. If Redwood undergoes a “fundamental change” (as defined in the offering memorandum relating to the Notes), subject to certain conditions, holders of the Notes may require Redwood to repurchase all or part of their Notes for cash in an amount equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any.
Before March 15, 2027, holders will have the right to convert their notes only upon the occurrence of certain events. From and after March 15, 2027, holders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Redwood will have the right to elect to settle conversions either entirely in cash or in a combination of cash and shares of its common stock. However, upon conversion of any notes, the conversion value, which will be determined over a period of multiple trading days, will be paid in cash up to at least the principal amount of the notes being converted. Any conversions of Notes into shares of Redwood common stock will be subject to certain ownership limitations set forth in Redwood’s charter documents. The initial conversion rate is 95.6823 shares of common stock per $1,000 principal amount of Notes, equivalent to a conversion price of approximately $10.45 per share, which is an approximately 12.50% premium to the closing price of Redwood’s common stock on June 6, 2022.
Redwood will have the right to redeem the Notes, in whole or in part, at its option at any time prior to maturity to the extent necessary to preserve its status as a real estate investment trust for U.S. federal income tax purposes. In addition, subject to certain limitations, Redwood will have the right to redeem the Notes, in whole or in part, at its option on or after June 16, 2025, but only if the last reported sale price per share of Redwood’s common stock exceeds 130% of the conversion price for a specified period of time. The redemption price for any Note called for redemption will be a cash amount equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any.
Redwood intends to use the net proceeds from the offering for investment and funding purposes, which may include investing in organically sourced assets through Redwood’s mortgage banking businesses, opportunistically investing in third-party securities and other long-term and strategic assets for its investment portfolio, funding strategic acquisitions and investments, and funding the activities of Redwood’s residential and business purpose mortgage banking businesses, as well as for general corporate purposes and potential open market purchases of common stock or debt. In addition, Redwood intends to use approximately $25.0 million of the net proceeds from the offering to repurchase approximately 2.7 million shares of its common stock concurrently with the offering in privately negotiated transactions effected through one of the initial purchasers of the Notes or its affiliate, as Redwood’s agent.
The offer and sale of the Notes and any shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any shares of common stock issuable upon conversion of the Notes, nor will there be any sale of the Notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential, business purpose and multifamily assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons™, our venture investing initiative, we invest in early-stage companies strategically aligned with our business across the lending, real estate, and financial technology sectors to drive innovations across our residential and business-purpose lending platforms. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and established a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust for tax purposes.
CAUTIONARY STATEMENT: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as statements related to the offering and the expected use of the net proceeds. Forward-looking statements involve numerous risks and uncertainties. Redwood’s actual results may differ materially from those projected, and Redwood cautions investors not to place undue reliance on the forward-looking statements contained in this release. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan,” and similar expressions or their negative forms, or by references to strategy, plans, or intentions. No assurance can be given that the offering will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Completion of the offering on the terms described, and the application of net proceeds, are subject to numerous conditions, risks and uncertainties, many of which are beyond the control of Redwood, including, among other things, those described in Redwood’s filings with the Securities and Exchange Commission. Redwood undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
WASHINGTON, June 6 (Reuters) – President Joe Biden waived tariffs on solar panels from four Southeast Asian nations for two years and invoked the Defense Production Act to spur solar panel manufacturing at home, the White House said on Monday, confirming a Reuters report.
The tariff exemption applies to panels from Cambodia, Malaysia, Thailand and Vietnam and will serve as a “bridge” while U.S. manufacturing ramps up, the White House said.
Shares in U.S. solar companies including SunPower Corp (SPWR.O), Enphase Energy Inc (ENPH.O) and Sunrun Inc (RUN.O) climbed after Reuters earlier reported that Biden would issue a proclamation that ensured panels accounting for some 80 percent of U.S. imports would not face tariffs, which could have been levied retroactively as part of a Commerce Department probe.
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The move comes in response to concerns about a freezing of solar projects nationwide and the resulting impact on the administration’s plans to fight climate change. The investigation, announced in March, is considering whether solar panel imports from the four countries were circumventing tariffs on goods made in China.
The probe had prompted the largest solar trade group to cut its installation forecasts for this year and next by 46% as developers including NextEra Energy Inc (NEE.N), Southern Co (SO.N) warned of major project delays read more .
The White House said the Defense Production Act would also be used to expand manufacturing of building insulation, heat pumps, transformers, and equipment for “clean electricity-generated fuels” such as electrolyzers and fuel cells.
“With a stronger clean energy arsenal, the United States can be an even stronger partner to our allies, especially in the face of (Russian President Vladimir) Putin’s war in Ukraine,” the White House said in a statement.
Manufacturing makes up a small portion of the U.S. solar industry, with most of the jobs concentrated in project development, installation and construction. Proposed legislation that would encourage domestic solar manufacturing is currently stalled in Congress.
Heather Zichal, chief executive of the American Clean Power Association, said Biden’s announcement would “rejuvenate the construction and domestic manufacturing of solar power by restoring predictability and business certainty.”
The Commerce Department investigation – kicked off in response to a complaint from a small solar panel provider, Auxin – essentially halted the flow of solar panels that make up more than half of U.S. supplies and 80 percent of imports.
Auxin’s CEO, Mamun Rashid, criticized the White House move as having “opened the door wide for Chinese-funded special interests to defeat the fair application of U.S. trade law.”
Top U.S. panel manufacturer First Solar said the administration’s move “undermines American solar manufacturing.” Its shares were down more than 2% in mid-day trade on the Nasdaq.
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Reporting by Jeff Mason; additional reporting by Nichola Groom; editing by John Stonestreet and Tomasz Janowski
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The headquarters for Axon Enterprise Inc, formerly Taser International, is seen in Scottsdale, Aizona, U.S., May 17, 2017. Picture taken May 17, 2017. To match Special Report USA-TASER/EXPERTS REUTERS/Ricardo Arduengo
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June 6 (Reuters) – Taser-maker Axon Enterprise Inc (AXON.O) said it was halting a project to equip drones with stun guns to combat mass shootings, a reversal that did not stop most of its ethics advisory board members from announcing their resignation on Monday in protest over the original plans.
The May 24 school shooting in Uvalde, Texas, which killed 19 children and two teachers, prompted Axon to announce last week it was working on a drone that first responders could operate remotely to fire a Taser at a target about 40 feet (12 m) away.
Nine of 12 members of the company’s AI Ethics Board quit over concerns the drones would harm over-policed communities and that Axon publicized its ambitions without consulting the group. The resignations and Axon’s scuttled plans were first reported by Reuters.
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“In light of feedback, we are pausing work on this project and refocusing to further engage with key constituencies to fully explore the best path forward,” Chief Executive Rick Smith said in a statement.
The action by ethics board members marked a rare public rebuke for one of the watchdog groups some companies have set up to gather feedback on emerging technologies, such as drones and artificial intelligence (AI) software.
Smith said it was unfortunate that members withdrew before Axon could address their technical questions, but the company “will continue to seek diverse perspectives to challenge our thinking.”
Axon, which also sells body-worn cameras and policing software, has said its clients include about 17,000 out of the roughly 18,000 law enforcement agencies in the United States.
It explored the idea of a Taser-equipped drone for police since at least 2016, and Smith depicted how one could stop an active shooter in a graphic novel he wrote. The novel shows a daycare center with what looks like an enlarged smoke alarm, which first recognizes the sound of gunfire and then ejects a drone, identifying and tasing the shooter in two seconds.
Axon first approached its ethics board more than a year ago about Taser-equipped drones, and the panel last month voted eight to four against running a limited police pilot of the technology.
The company announced the drone idea anyway, as it said it wanted to get past “fruitless debates” on guns after the Uvalde shooting, sending shares up nearly 6%. They were down 0.5% on Monday.
Ethics board members worried the drones could exacerbate racial injustice, undermine privacy through surveillance and become more lethal if other weapons were added, member Wael Abd-Almageed said in an interview.
“What we have right now is just dangerous and irresponsible,” said Abd-Almageed, an engineering research associate professor at University of Southern California.
The board likewise had not evaluated use of the drones by first responders outside police, it said. And members questioned how a drone could navigate closed doors to stop a shooting.
The drone is “distracting society from real solutions to a tragic problem,” resigning board members said in a Monday statement.
CEO Smith has said drones could be stationed in hallways and move into rooms through special vents. A drone system would cost a school about $1,000 annually, he said.
Formed in 2018, the ethics panel has guided Axon productively on sensitive technologies such as facial recognition in the past.
Giles Herdale, one of the remaining ethics board members, told Reuters he chose not to resign because he could have more influence “if I am in the tent than outside it.”
For others, the company’s drone announcement prior to a formal report by the board broke with practice, said member Ryan Calo, a University of Washington law professor.
“I’m not going to stay on an advisory board for a company that departs so far from expectation and protocol or, frankly, who believes ubiquitous surveillance coupled with remote non-lethal weapons is a viable response to school shootings,” he said.
Barry Friedman, the board chairman, resigned as well.
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Reporting by Jeffrey Dastin in Palo Alto, Calif., and Paresh Dave in Oakland, Calif.; Editing by Clarence Fernandez, Robert Birsel and Tomasz Janowski
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Tesla’s chief executive, Elon Musk, plans to cut 10 percent of the electric carmaker’s salaried work force, he told staff in an email on Friday.
The job cuts will not apply to employees who build cars or batteries or who install solar panels, and the number of hourly employees will increase, Mr. Musk said in the email, a copy of which was reviewed by The New York Times. “Tesla will be reducing salaried head count by 10 percent, as we have become over staffed in many areas,” he said.
Reuters reported the news earlier, citing a different email that Mr. Musk sent only to Tesla executives. The automaker’s share price closed on Friday down about 9 percent after that article was published.
Tesla’s staff has grown substantially as sales have surged and it has built new factories, including two that opened this year near Berlin and Austin, Texas. The company employed more than 99,000 workers at the end of last year. Just two years earlier, Tesla had 48,000.
2017 and 2018.
In recent weeks, investors have begun questioning the company’s sky-high stock price. The market values the company at more than $728 billion, more than several other large automakers combined. Tesla’s shares are down about 40 percent from their high at the end of last year, bringing attention to the risks the company faces from growing competition, accusations of racial discrimination and production problems at its factory in Shanghai.
buy Twitter for roughly $44 billion. Here’s how the deal unfolded:
The initial offer. Mr. Musk made an unsolicited bid worth more than $40 billion for the influential social network, saying that he wanted to make Twitter a private company and that he wanted people to be able to speak more freely on the service.
“From a corporate good-governance perspective, Tesla has a lot of red flags,” Andrew Poreda, a senior analyst who specializes in socially responsible investing at Sage Advisory Services, an investment firm in Austin, told The Times last month. “There are almost no checks and balances.”
Mr. Musk’s management style and success — he is listed as the world’s richest man by Bloomberg and Forbes — have earned him admirers but have made him a lightning rod. Tesla has lost a number of top executives in recent years, many of whom have gone on to top jobs at other automakers, tech companies and battery makers.
Recently, Mr. Musk praised the work ethic in China, where labor conditions can be harsh or even abusive, suggesting that workers in the United States were lazy. “They won’t just be burning the midnight oil. They’ll be burning the 3 a.m. oil,” he said about Chinese workers in an interview with The Financial Times. “So they won’t even leave the factory type of thing. Whereas in America, people are trying to avoid going to work at all.”
Still, some analysts remain bullish about Tesla’s prospects. “In our view, Tesla likely does not need to hire any more employees to maintain its growth, and we think the plan to reduce the work force likely shows that Tesla over hired last year,” Seth Goldstein, a senior equity analyst at Morningstar, said in a note on Friday.