TechCrunch : OpenAI could shake up its nonprofit structure next year

OpenAI could shake up its nonprofit structure next year

It’s looking increasingly likely that OpenAI will soon alter its complex corporate structure.

Reports earlier this week suggested that the AI company was in talks to raise $6.5 billion at a $150 billion pre-money valuation. Now Reuters says the deal is contingent on whether OpenAI can restructure and remove a profit cap for investors.

In fact, according to Fortune, co-founder and CEO Sam Altman told employees at a company-wide meeting that OpenAI’s structure is likely to change next year, bringing it closer to a traditional for-profit business. OpenAI is currently structured so that its for-profit arm is controlled by a non-profit, which seems to frustrate investors.

“We remain focused on building AI that benefits everyone and as we’ve previously shared we’re working with our board to ensure that we’re best positioned to succeed in our mission,” OpenAI said in a statement. “The nonprofit is core to our mission and will continue to exist.”

TechCrunch : These two friends built a simple tool to transfer playlists between

These two friends built a simple tool to transfer playlists between Apple Music and Spotify, and it works great

Last year, I had the unfortunate experience of losing all my playlists when I switched from Apple Music to Spotify. To me, playlists are important. They’re snapshots of a time in your life; maybe your summer of 2016 had a certain soundtrack to it. But, traditionally, music streaming services don’t make it easy to take playlists with you to other platforms.

So you can imagine how excited I was to see that Apple Music created a new playlist transfer tool through the Data Transfer Initiative (DTI), a group founded by Apple, Google, and Meta to create data portability tools. Europe’s Digital Markets Act requires these designated “gatekeepers” to fund transfer tools as part of a broader remedy to Big Tech’s strategy to lock users into their platforms.

Finally! Except there was one big problem. The tools don’t work with the world’s most popular music service, Spotify, which seemingly didn’t catch the data portability wave (or maybe a regulator isn’t telling them to). The DTI’s tool only transfers between Apple Music and YouTube Music, making it a lot less useful for most people.

The DTI’s executive director, Chris Riley, is fed up with Big Tech’s lock-in policies as well. He’s been trying to get more companies to come to the negotiating table and make their services more portable.

“We’ve kind of gotten baked into this world over the past decade of just feeling stuck,” said Riley in an interview with TechCrunch. “I don’t think enough people know this is something they should have.”

Acknowledging the DTI’s limitations, Riley suggested I transfer my playlists from Apple Music to Spotify using Soundiiz, a free third-party tool. Instead of working directly with streaming services, Soundiiz builds portability tools through existing APIs and acts as a translator between the services. Within minutes, I was able to link my accounts, transfer my playlists, and start listening to my old Apple Music playlists on Spotify. It was awesome and easy.

Soundiiz allows you to transfer playlists between Apple Music, Spotify, YouTube Music, Amazon Music, Tidal, Deezer, SoundCloud, and 20 other streaming services I’ve never even heard of. There’s a simple user interface to connect your streaming services and pick the playlists you want to transfer over, including ones that someone else has created.

The story behind Soundiiz might explain why it works so well, and cheaply. It was created in 2013 by two friends in France, Thomas Magnano and Benoit Herbreteau, who loved listening to music while coding together. During nights, they set out to create a music search interface with inputs from all over the web. In the process, they created a useful tool.

They never made the music search interface, but the playlist transfer tool became Soundiiz.

“I had to manipulate APIs and test match between services. While doing this, I created playlists and moved them between services, just for myself internally,” said Magnano in an interview with TechCrunch. “I presented this feature to my colleague and we thought, ‘Oh it’s useful for me; maybe it is useful for someone else.’”

By 2015, Soundiiz got its big break when it partnered with Tidal, the music service founded by Jay-Z. The music platform was trying to make it easier for people to leave Spotify and join Tidal with all their same playlists, and Soundiiz helped. However, Magnano says they made sure Tidal allowed people to export playlists as well, not just import — something they require of any music service API they work with.

After that, a lot more people started using the service, and the creators made Soundiiz their full-time jobs, but they’ve kept their values. The two founders make a living off of Soundiiz but tell TechCrunch they’re “not looking to get rich.” Magnano says Soundiiz has never sought outside investments in order to keep its prices low, and the founders maintain control of their project.

There are limits to the free Soundiiz, though — it will cut some of your longer playlists short (there’s a cap at 200 songs). Also, you have to transfer playlists one by one, and each one takes about a minute, so transferring a dozen playlists could take a while. Soundiiz offers a premium plan ($4.50 a month, and you can cancel after your transfer) to get around these limitations.

The two founders are still the only employees at Soundiiz, despite growing quite a bit: In the last 10 years, Soundiiz has helped millions of people transfer more than 220 million playlists. They’ve never spent a dime on marketing, according to Magnano, but he says they never needed to.

“If you searched Google for ‘how to transfer Deezer to Spotify’ in 2012, there was no answer,” said Magnano. “So Soundiiz became the first result on Google Search when we came out, and since then, we’ve maintained a great rank in SEO.”

Magnano says Spotify probably has more to lose than win creating a playlist transfer tool like Apple and Google, and he doesn’t expect that to change soon. However, he says all these streaming services are aware of what Soundiiz does, and they’re okay with it — some even promote it in their FAQs. That said, it’s unlikely any of them are going to promote playlist transfer services like Soundiiz any more than that.

WWD : Hermès Unveils New Leather Goods Factory in Auvergne

Hermès Unveils New Leather Goods Factory in Auvergne
The 79,000-square-foot facility in central France will focus on producing Birkin and Constance bags and employ 250 artisans.

RIOM, France — Despite the ongoing luxury slowdown, Hermès shows no sign of reining in its production.

The maker of Birkin bags and silk squares on Friday inaugurated its latest leather goods factory.

Chief executive officer Axel Dumas cut the ribbon on a facility spanning 79,000 square feet in Riom, a city of 19,000 residents in Auvergne, a region in central France.

“It’s a moment that never stops moving me because it hasn’t been easy,” he said at the ceremony. “When I was young, we had 250 craftspeople, didn’t sell any Kelly [bags] and hadn’t even invented the Birkin. So it was harder but we persevered although craftsmanship in the industrial ’70s and ’80s interested absolutely no one.”

While other luxury companies have been seeing lackluster results in the first half of 2024, Hermès is riding what Dumas deemed a “flight to quality” during an analyst call on second-quarter results in July.

The company reported double-digit gains in all regions, achieving an 11.5 percent increase in revenues in the second quarter to 3.7 billion euros. Leather goods were among the strongest performers of the period, logging 17.9 percent organic growth.

The Birkin and Constance models will be the focus of the factory in Riom.

While no figure was given for the number of items the facility can produce, it takes 15 to 20 hours to make one purse. Fully trained artisans can produce between two and three a week.

“Thanks to the new factories or extension plans [in existing ones], we are looking at 6 to 7 percent of growth in volume a year,” said Guillaume de Seynes, Hermès’ executive vice president, manufacturing division and equity investments.

While that may not sate the global appetite for its sought-after purses, he reiterated that there was no artificial scarcity at play.

“We try to ramp up production at a rapid pace but we are staying on the artisanal model which is synonmyous with quality in our opinion,” he said. “We aren’t about to start going for productivity gains.”

Hermès took over one wing of the Manufacture des Tabacs de Riom, a former tobacco factory built in the 19th century, with successive extensions bringing the total surface to nearly 10 acres.

Closed in 1975, it became a listed historical venue in 2004. The majority of the site has been rehabilitated for private housing and also hosted artistic residences. A number of graffiti murals left by the artists have been preserved by the luxury company.

Renovation of the two buildings forming the Hermès facility was entrusted to Paris-based firm Tracks-Architectes, which describes its approach as a frugal one rooted in the existing environment around each project.

Features such as Tyrolean renderings on the facades, windows made of the region’s gray-blue volcanic stone and slate roofs were cleaned or restored to their original condition.

Glass and transparency were favored for contemporary elements such as continuous glass roofs, the patio and awnings, as well as a bridge between buildings.

A key requirement was letting natural light reach the heart of the workshops, which are the first to be arranged in a multilevel layout.

Ahead of the opening, artisans demonstrated their skills at cutting, assembling and sewing in their airy workspaces, and visitors were even invited to try their hand at sewing the famous saddle stitch.

Salvaged materials were used for the planted courtyard, which hides rainwater retention and treatment basins. Garden furniture is also made from segments of concrete beams and steel sleepers.

While it isn’t eligible for the E4C2 certification awarded to Louviers, which distinguishes new builds with a lowered carbon footprint that are energy positive, Riom marks the third time Hermès has overhauled existing buildings.

“It is our plan, and works are already underway on a number of buildings, to increase the energy efficiency of older constructions,” de Seynes said. The nearby 20-year-old Sayat leather goods facility is among those soon to be overhauled.

According to the executive, Hermès is increasingly moving toward rehabilitation projects for its new sites, both to anticipate possible regulations against artificialization of land but also as part of a broader commitment toward revitalizing urban centers affected by the loss of other industries.

The implantation in Riom also created a hub with the Sayat factory, a grouping strategy the company has rolled out in nine regions in France to boost the attraction for recruitment as well as aid training and skill preservation.

Such poles could have up to three factories but no larger facilities, as Dumas deemed 300 people per factory the “golden number” to preserve interpersonal relationships and “human-sized” facilities.

In the Auvergne region, Hermès is working with local employment and adult education services as well as a nearby vocational high school. It also has a branch of its École Hermès des Savoir-faire in the region, which is accredited by the French Ministry of Education to deliver state-recognized qualifications.

Despite the slowdown in consumption, particularly in China, de Seynes said the company had not changed its long-term investment plans in light of continued strong demand for its bags and leather goods.

Riom follows the opening of factories in Louviers, focusing on its famous Kelly purse; Tournes in northern France, and the expansion of its Pierre-Bénite silk-focused atelier near Lyon, and the Saint Junien handbag and glove facility in the New Aquitaine region of France.

Three more facilities are in the works. Earlier this year, de Seynes laid the foundation stone for factories in L’Îsle-d’Espagnac in Charente, which is slated to go onstream in 2025, and Loupes, a town near Bordeaux, slated for 2026.

Another site in Charleville-Mezières, located near the border with Belgium in the French Ardennes region, is on the plan for 2027.

“We are also investing in a number of domains, both in terms of capacity but also with performance upgrades such as energy efficiency or [decreasing] water consumption in tanneries,” de Seynes said.

Plans for a site producing procelain as well as enamel have been made near Limoges.

Separately, Dumas also said the company would be extending its existing perfume factory in Normandy and add a new site, although he did not provide a timeline for the project.

Hermès counts 60 production sites in France, with around 7,300 artisans across the country. It also produces in nearby countries, such as watches made in its Switzerland-based factories and ready-to-wear in Italy.

The CEO sidestepped questions on whether the company would consider producing some of its goods in the U.S.

“I’m not closed to anything. What matters to me is being in a place where there is real know-how and historic know-how,” said Dumas, pointing out France’s leather goods and silk expertise, handweaving in Nepal or lacquer in Vietnam. “I’m ready to try and find the most beautiful materials and know-how where they are.”

FT : Axel Springer and KKR near deal on €13.5bn break-up

Axel Springer and KKR near deal on €13.5bn break-up
Agreement to be discussed next week could cement Mathias Döpfner’s control over media outlets Politico and Bild

German billionaire Mathias Döpfner and KKR are nearing a deal to split up the media giant Axel Springer, in a move that would allow one of the world’s largest private equity firms to bow out of news media after five turbulent years. 

The two sides are expected to discuss the proposed structure of a deal that would give KKR majority control of the company’s profitable classifieds business at a meeting of its supervisory board on Thursday, according to four people familiar with the matter.

The deal — which values the whole company at €13.5bn, including more than €10bn for the classifieds business — has already been discussed several times at previous board meetings, two of the people said.

The Financial Times first reported the pair were in talks about a split in July.

A deal would enable Döpfner, who has served as CEO since 2002, to cement his control over the company’s media outlets. They include the US news sites Politico and Business Insider as well as the German tabloid Bild and its broadsheet sister Die Welt.

Döpfner is expected to keep a minority stake in the classifieds division, which includes jobs platform StepStone and real estate advertising unit Aviv. So too is Friede Springer, the company’s vice-chair and widow of its founder.

The break-up of Axel Springer would mark a new chapter in a five-year partnership in which KKR took the company private in 2019 in a deal that valued the publisher at €6.7bn. Together with the Canada Pension Plan Investment Board (CPPIB), it owns a 48.5 per cent stake in the Berlin-based business.

KKR would gain greater control over the classifieds unit, paving the way for the New York-based firm to exit its investment. It had previously hoped to launch an initial public offering for StepStone, securing a valuation of as much as €7bn, but that plan has been repeatedly postponed after a slump in European listings.

The split would also free KKR and CPPIB from the succession of controversies that have plagued Axel Springer’s news business. These include allegations of sexual harassment by a former editor of Bild and accusations of editorial interference by Döpfner.

Most recently, KKR was dragged into a bitter row between the hedge fund boss Bill Ackman and Business Insider after it published claims of plagiarism against his wife.

The break-up comes as 61-year-old Döpfner, who sits on the boards of Netflix and Warner Music Group and has forged a friendship with Elon Musk, seeks to expand his footprint in the English-language media market, particularly in the US. 

He unsuccessfully tried to buy the Financial Times in 2015, instead buying Business Insider later the same year. In 2021, he acquired Politico for a price tag of around $1bn.

Axel Springer and KKR declined to comment.

>>> Barrons Week-end Summary

Cover:
-The housing market is currently experiencing a housing-cost crisis, with high prices, low supply, and steep mortgage rates affecting affordability. The Atlanta Fed's affordability index was at 68.5 in June, near its lowest levels since 2006. Ownership costs, including mortgage, taxes, and insurance, are eating up nearly 44% of median household income. Relief is coming with the 30-year mortgage dropping from 7% to the low 6% range, in tandem with declines in the 10-year Treasury note, in anticipation of Federal Reserve rate cuts. However, a quarter-point cut may not push mortgage rates down, but if the Fed opts for half a percentage point, it may pull the 30-year mortgage down a bit more. High housing costs are also a hot topic in the presidential campaign, with Vice President Kamala Harris proposing grants for first-time buyers and incentives for developers, and former President Donald Trump discussing regulatory cuts, building on federal land, and mass deportations of illegal immigrants.

Interview:
-Gibson Smith, a fixed-income investor, is a rising star in the bond market. He founded Smith Capital Investors in 2018 and has since launched an exchange-traded fund, the ALPS/Smith Core Plus Bond, which has attracted over $900M in assets. Smith's firm's flagship ALPS/Smith Total Return Bond fund has returned 1.3% over the past five years, beating the broad bond market's 0.2% return. He believes the Fed is cutting rates to normalize the federal-funds rate, which is restrictive due to the positive real rate created by the Fed. Smith believes the initial cuts the Fed will make in the next four to five months are about reducing the real inflation-adjusted rate, allowing the Fed to be more aggressive about easing rates if necessary. The Federal Reserve's decision to cut interest rates is expected to impact bond markets and investors' reactions to the potential cut.

Tech Trader:
-Oracle shares rose 11% after the company reported solid earnings results and announced a new database partnership with Amazon Web Services. The stock rose again later in the week after Oracle provided a new long-term outlook, calling for $104B in revenue for fiscal year 2029. Oracle's software numbers were solid, but what has Wall Street truly excited is the opportunity and developments in the Oracle Cloud Infrastructure (OCI) business, which competes with Amazon Web Services, Microsoft Azure, and Google Cloud in renting out computing capacity to corporations and start-ups. Analysts believe OCI is gaining market share from larger cloud vendors because it can provide flexibility and a more tailored solution for cloud customers with specialized requirements. In the quarter, OCI grew by 45% to $2.2B in revenue, outpacing the recent growth rates from its cloud rivals.

The Trader:
-Consumer staples stocks have seen a significant increase, with the Consumer Staples Select Sector SPDR exchange-traded fund up almost 8% from a multi-week low in early August. The fund, which includes Procter & Gamble, Colgate-Palmolive, Walmart, Coca-Cola, and PepsiCo, has outperformed the S&P 500 by 5.9 percentage points over the past three months. Investors are seeking the safety of staples, as their sales and earnings don't take much of a hit when consumer spending slows down and there are concerns about the economy. However, fear can push demand for staples too far, as the Consumer Staples ETF rose to a level 10.6% above its 200-day moving average, a level it hit on just two other occasions since 2013. In both previous cases, staples went on to drop more than 5% over the following few weeks.
Price concerns are backed up by fundamentals, as large staples companies don't offer much profit growth and are mature and have grown into the markets they operate in. Consumers aren't significantly ramping up the rate at which they buy household items, groceries, and toothpaste, so staples stocks reach a certain valuation when there isn't enough growth to justify the price investors have to pay. Instead, the stocks will pay the price when that fear dissipates.
-Palantir Technologies, a software company that organizes customers' data on a centralized platform, has gained a spot in the S&P 500 index. The company's main business is providing software systems for government customers, such as the US Army, to identify security threats and bolster military operations. Large private-sector companies use these systems to quickly identify sales opportunities and keep their cost structure efficient. Palantir's growth in its government business is slowing from a larger base, but the pace is increasing for private enterprise as companies adopt new forms of data analytics. Fortune Business Insights predicts that this market will grow in the low-teen percentages annually to over $1T by 2032. Palantir's offerings also keep customers' data private, which has helped enterprise sales grow 32% year over year during the second quarter, with total revenue growing 27% to $678M. This growth does wonders for earnings, especially if it is accompanied by lower costs and higher margins.

Features:
-Schlumberger might be described as “the Nvidia of the 1980’s,” was a leading servicer in the energy industry and had the world's fifth-largest market cap. Despite its current market value of under $60B, SLB is worth a fresh look due to its potential to remain a significant player in the oil-and-gas industry. Demand continues to rise globally, with over 100M barrels a day, and the industry needs the expertise in assessing and developing energy deposits provided by SLB. SLB stock, currently trading near a 52-week low, offers a reasonable 11 times projected 2024 earnings of $3.50 a share and under 10 times estimated 2025 profits of $4.13 a share, while yielding 2.8%. James West, an oil-services analyst at Evercore ISI, calls SLB the industry's technology leader and the go-to company in every major international market. He carries an Outperform rating and a $74 price target, almost double the current price, but views his target as 14.5 times his 2026 earnings estimate of $5.10 a share.
-United Airlines announced a deal with Elon Musk's SpaceX for in-flight internet service, causing shares of alternative Wi-Fi provider ViaSat to plunge. United announced that customers would receive free internet access via SpaceX's Starlink network, which is a blow to ViaSat, which is a competing supplier of space-based Wi-Fi and a supplier to United. The Starlink deal is the industry's largest agreement, covering more than 1,000 aircraft. Testing of the "gate-to-gate connectivity" begins in 2025. United CEO Scott Kirby said that everything on the ground will soon be able to be done onboard a United plane at 35,000 feet, just about anywhere in the world. SpaceX's president and chief operating officer, Gwynne Shotwell, added that they are excited to team up with United Airlines to transform the in-flight experience. ViaSat stock was off almost 15%, closing at $12.79 a share. Gogo also provides Wi-Fi service for planes, but United isn't a Gogo customer. Starlink's growth has been rapid, with Starlink having roughly three million individual subscribers in early 2024 and doubling in 2023 compared to 2022.

European Trader:
-Roche stock fell on Thursday after new data on its oral weight-loss drug, CT-996, revealed side effects. The Swiss pharma giant is attempting to break into the weight-loss market dominated by Eli Lilly and Novo Nordisk. Roche's Swiss stock is up 6.7% this year, trailing Novo and Lilly shares by 31% and 58%, respectively. CT-996, developed to control blood sugar levels and treat diabetes and obesity, is currently in early-stage trials. If approved, it could challenge Lilly's blockbuster drugs Zepbound and Mounjaro and Novo's Ozempic and Wegovy. Roche said the drug was generally well-tolerated but some patients experienced gastrointestinal side effects. The results of CT-996's obesity pill were based on just six patients, but Roche said the data supports continued studies.

Emerging Markets:
-No update

Commodities:
-Oil prices have hit their lowest levels since 2021 due to China's economy slowdown and increased oil drilling in several countries. Analysts predict that by next year, oil will be in oversupply, causing a selloff for oil investors and impacting oil stocks. The Energy Select Sector SPDR exchange-traded fund has fallen 5% in the past five days. However, some analysts believe that prices could rebound, and some stocks may be attractive. In the near-term, weather seems to be helping the industry, with oil prices rebounding slightly after Hurricane Francine in the Gulf of Mexico curtailed some oil production. West Texas Intermediate crude and Brent crude were up 1.1% and 0.9%, respectively. Analysts have been reducing their estimates for oil prices for the rest of the year and next due to China's weakness and expanding production in the US, Canada, and elsewhere. However, most banks still expect demand to grow faster than supply through the end of the year, which is expected to be bullish.

Streetwise:
-Stock market strategists at BofA Securities have noted a shift in the Regime Indicator from upturn to downturn, causing concern among investors. Power companies have outperformed artificial-intelligence giants since June, with the iShares U.S. Utilities ETF returning 12% and the iShares U.S. Technology ETF slipping 4%. However, for S&P 500 fundholders, the working stocks have outperformed the non-working ones, and the fund has returned a couple of percent over the stretch. BofA suggests that it isn't too late to buy tech profits and invest in something boring. Tech is expensive, and earnings growth is impressive but decelerating. The S&P 500 carries extreme concentration risk, with Apple, Microsoft, Nvidia, Alphabet, and Amazon.com together making up over a quarter of the index. Dividends could contribute closer to their historical average of 40% in the future.

>>> Weekend Papers Summary

FINANCIAL TIMES
-Investors have increased their bets on a half-percentage-point interest rate cut by the Federal Reserve next week as the US central bank prepares to lower borrowing costs for the first time in over four years. Traders in swaps markets are currently pricing in a 49% chance that the Fed will opt for a bumper cut to prevent high rates from damaging the economy. The reassessment helped send stocks higher, pushing the S&P 500 and the Nasdaq Composite to their biggest weekly advances this year, for gains of 4% and 6%, respectively. Mark Dowding, chief investment officer at RBC BlueBay Asset Management, said a half-point cut was now "very much in play" after being almost entirely priced out at one point on Thursday.
-Donald Trump's close association with Laura Loomer, a far-right activist and social media personality, has raised concerns among Republicans that his White House bid has taken a self-defeating turn towards the political fringes. Trump's debate against Kamala Harris on Tuesday led to him veering off course to air conspiracy theories about the 2020 election and immigrants eating pets. The concerns have been compounded by concerns that Loomer is influencing Trump's thinking at a crucial stage in the campaign. The 31-year-old activist, who has propagated 9/11 conspiracy theories, was seen exiting Trump's plane in Pennsylvania before the debate and was with him at remembrance ceremonies for the September 11 2001 terrorist attacks in New York. Republican strategist Brendan Buck believes Trump is increasingly surrounded by sycophantic people who will tell him anything he wants, and he is getting further detached from reality.
-China's industrial output and retail sales experienced a decline in August, with industrial output growing at the slowest pace since March and retail sales having their second-slowest month of the year, according to data from the National Bureau of Statistics. Despite the summer holiday, the economy was generally operating smoothly, but faced difficulties in recovery due to an adverse external environment and insufficient domestic effective demand. Industrial output rose 4.5% YoY, down from 5.1% in July, and retail sales rose 2.1% YoY, against analysts' average forecasts of 2.6%. President Xi Jinping has called for officials to meet the country's annual economic and social development goals, which analysts interpret as urging them to hit the gross domestic product growth target of 5% YoY.
-Sam Bankman-Fried's criminal conviction over the collapse of FTX should be vacated, according to his attorneys. Bankman-Fried's counsel claims that federal prosecutors denied him a fair trial and co-opted former colleagues at Sullivan & Cromwell into gathering evidence for the government. They claim that S&C lawyers worked with prosecutors to charge and imprison Bankman-Fried in ways that far exceeded normal cooperation. Bankman-Fried's lawyers claim that S&C lawyers proactively recommended new areas of inquiry and helped guide prosecutorial strategy, citing a December 2022 email to prosecutors highlighting data that resembled a transfer discussed by Bankman-Fried in Signal chats.
-UK Prime Minister Keir Starmer left Washington after talks with US President Joe Biden, suggesting the US may be willing to change its stance on Ukraine's use of long-range missiles. The meeting ended without an announcement, but there were indications that Biden might allow the UK and France to allow Ukraine to use their Storm Shadow missiles, which rely on American navigational data and technology. Some officials predict Washington will ultimately allow Ukraine to use the American-provided, ground-launched Army Tactical Missile System (ATACMS). The US has been reluctant to provide the weapons despite persistent requests from Ukrainian President Volodymyr Zelenskyy over concerns that their deployment could escalate the conflict with Russia.
-Rupert Murdoch, the 93-year-old founder of the Murdoch media dynasty, is set to face off against his three other children, James, Elisabeth, and Prudence, in a nondescript probate court in Reno, Nevada. Murdoch wants to change the trust he established in 1999, which grants equal voting power over the family businesses after his death. His younger children, Grace and Chloe, have no such voting rights. This move is part of Murdoch's efforts to secure the long-term future of his news outlets, including Fox News, The New York Post, The Wall Street Journal, and The Sun and The Times. Murdoch consolidated control of his publicly traded companies under Lachlan last September and announced his own semi-retirement. Last year, Murdoch also overhauled the family trust to give Lachlan full control of voting power and decision-making upon his death. The trust has large stakes in both Fox and News Corp.
-Springfield, Illinois, is experiencing hysteria due to rumors of Haitians eating ducks and using them for ritualistic purposes. Despite efforts by the mayor and police to dispel these rumors, residents are counting ducks around the town. Aurora Lemkhul, 68, fears that Haitians are eating ducks and disappearing, while Tiffany, 33, believes Haitians nabbed her Yorkie, Desia, a year ago. The town has been beset by white nationalists, disguised by masks, parading through its downtown, urging followers to "reclaim America." The City Hall was evacuated due to a bomb threat.
-Boeing's strike has raised concerns about the company's production goals for the 737 Max and raised the possibility of a cash crunch. The company's chief financial officer stated that it would fight to preserve its investment-grade credit rating, which is crucial to its operations. Losing it would result in a significant increase in borrowing costs due to a $53bn debt load. Options to maintain the rating include securities offerings to secure cash. Around 33,000 workers with the International Association of Machinists District 751 walked out after rejecting a tentative agreement with the company. Boeing's new CEO, Kelly Ortberg, is "personally engaged" in addressing the situation. The company had been building 25 737-Max a month in June and July, with plans to increase to 38 by the end of the year.
-OpenAI has acknowledged that its latest models, known as o1, have increased the risk of artificial intelligence being misused to create biological weapons. The San Francisco-based group's system card, a tool to explain how the AI operates, stated that the new models had a "medium risk" for issues related to chemical, biological, radiological, and nuclear (CBRN) weapons. This is the highest risk OpenAI has ever given for its models. The technology has "meaningfully improved" the ability of experts to create bioweapons. Experts argue that AI software with more advanced capabilities, such as step-by-step reasoning, pose an increased risk of misuse in the hands of bad actors. Joshua Bengio, a professor of computer science at the University of Montreal, said that if OpenAI now represents "medium risk" for chemical and biological weapons, it reinforces the importance and urgency of legislation to regulate the sector.
-Adrian Cheng, the heir apparent to Hong Kong's wealthiest family, has faced criticism for his extravagant projects and his position as successor. New World Development's stock has fallen over 80% due to the slumping real estate market. Cheng's father, Henry, has suggested hiring from outside, raising questions about his successor's status. New World is expected to post its first annual loss in two decades, potentially reaching up to HK$20bn. Cheng believes that patience, consistency, and dedication will help him weather the storm. The Chengs are among a few powerful families dominating Hong Kong's property market, which became one of the world's most expensive due to China's rapid development. Patriarch Henry, estimated to have a net worth of around $17.7bn, is the Patriarch of the Chengs.
-The Biden administration is attempting to close a trade loophole used by platforms like Temu, Shein, and AliExpress to flood the US with cheap Chinese products. These ecommerce groups have used the de minimis exemption to skip paying import tariffs on shipments, which has increased their growth by shipping cheap packages directly to American consumers by air. The White House has proposed new rules that would exclude a wide array of goods from being able to claim the exemptions, extending to shipments of less than $800 in value. The proposed rules threaten the business model that Chinese groups have used to undercut and gain market share from online retailer Amazon.
-Italians are growing restless as global coffee bean prices surge, with prices set to increase by up to two-thirds. The Italian Espresso Institute president, Luigi Morello, said that everyone is nervous and panicking about the price of espresso. Italians drink some of Western Europe's least expensive coffee, paying around €1.20 for an espresso or €1.50 for a cappuccino. Low coffee prices have driven a heavy caffeine habit, with consumer association Assoutenti estimating that Italians and foreign tourists consume 6bn coffees a year at public establishments, generating revenues of €7B. Climate change-induced disruptions in global coffee supply (sic) could force Italians to pay up to €2 per shot of their daily fix.

NEW YORK TIMES
-President Biden and British Prime Minister Keir Starmer discussed the use of long-range weapons in Russia during a bilateral meeting at the White House. The question of whether to allow Ukraine to attack Russia with these weapons was a rare point of contention between allied nations. The decision now facing Biden could be far more consequential than previous concessions by the president that delivered largely defensive weapons to Ukraine during the past two and a half years. The president underscored his support for helping Ukraine defend itself but did not say whether he was willing to do more to allow for long-range strikes deep into Russia. "We're going to discuss that now," the president told reporters. The prime minister noted that the next few weeks and months could be crucial for supporting Ukraine in this vital war of freedom. European officials said earlier in the week that Biden appeared ready to approve the use of British and French long-range missiles, a move that Starmer and French officials have said they want to provide a united front in the conflict with Russia.
-Russia's President Vladimir V. Putin has warned the United States and its Western allies that allowing Ukraine to fire weapons deeper into Russia would put his country "at war" with NATO. Putin's comments came just a day before Prime Minister Keir Starmer of Britain was set to meet President Biden in Washington to discuss lifting restrictions on Kyiv's use of Western-supplied long-range weapons in its war with Russia. In 30 months of war, Ukraine's Western backers have made a series of concessions to Kyiv's war effort, supplying Ukraine with increasingly powerful weapons including tanks, fighter jets, and long-range missiles. Despite previous threats, Putin has yet to bring his war past Ukraine's borders. In his comments, Putin said the West would have to supply not just hardware to Ukraine but also intelligence and technology, changing the West's involvement and the prospects for a Russian response.
-Laura Loomer, a far-right activist with a history of bigoted views and publicity, filed a trademark application five years ago to protect her work in political activism. She coined the term "Loomered" for her signature move of ambushing people with embarrassing questions. Loomer, a well-known figure in the internet for her anti-Muslim activism, undercover sting operations, and political stunts, recently traveled with former President Donald J. Trump to Philadelphia for the presidential debate and to Sept. 11 memorial events in New York City and Shanksville, Pennsylvania. This trip drew criticism from Democrats and Republicans, as she had previously called Sept. 11 "an inside job."
-Donald Trump's running mate, Senator JD Vance, has outlined a peace plan to end the Ukraine war, which he believes resembles Vladimir Putin's approach. Critics argue that Vance described a Russian victory, while supporters claim he offered the only realistic path to peace. In an interview with "The Shawn Ryan Show," Vance was asked about Trump's plans to end the war. Critics argue that Vance's plan resembles Putin's, while supporters believe it offers the only realistic path to peace.
-Kamala Harris plans to challenge Donald Trump in another televised debate, despite the recent Philadelphia debate. A statement from her campaign chair, Jen O'Malley Dillon, was drafted in advance and sent to her advisers shortly after the debate's end. However, the vice president's hopes for a second televised confrontation with Trump have been dashed, as the former president ruled out participating in another debate on Thursday. Harris' top communications adviser, Brian Fallon, expressed his excitement for a potential October debate.
-Former President Donald Trump delivered a speech at a rally in Las Vegas, focusing on his first and possibly only presidential debate against Vice President Kamala Harris. Trump accused Harris of cheating, repeated falsehoods on various topics, and continued to stoke fear about immigration. Over an hour and 20 minutes, Trump ranted about the moderators of Tuesday's debate, made unfounded accusations that Democrats "cheat like hell" in elections, and insisted that President Biden would have been better than Harris.
-Pope Francis has urged American Catholic voters to choose the "lesser of two evils" in the upcoming U.S. presidential election, citing Donald Trump's cruelty towards immigrants and Kamala Harris's support of abortion rights. He stated that sending migrants away, not allowing them to grow, and not letting them have life is something wrong and cruelty. Francis also emphasized the importance of speaking clearly about these issues. The remarks came as he concluded a 11-day tour of the Asia-Pacific region, including stops in Jakarta, East Timor, and Singapore. His stance on the American presidential race reflects the divide among Catholic voters in the United States, who in praising Trump and Harris, are against life. The Pope's stance on the race reflects the divide among Catholic voters in the United States, who in recent years have been divided on the issue of abortion rights and the need for a less Eurocentric church.
-The US military reported that four top ISIS leaders were killed in a joint assault by US and Iraqi forces last month. The attack, which occurred on August 29 in western Iraq, killed at least 14 insurgents and devastated the group's top leadership. The military identified Ahmad Hamid al-Ithawi, the top ISIS commander in Iraq and one of the group's most well-established veterans. Two senior commanders for ISIS operations in western Iraq were also killed. The US and other allied forces have helped Iraqi forces carry out more than 250 counterterrorism missions since October. The raid was one of the largest counterterrorism operations against the Islamic State in Iraq in recent years, dealing the group a major blow at a time when its attacks in Iraq and Syria are on the rise.
-A Missouri bird flu case has raised the possibility of human transmission of the virus, H5N1, in what would be the first known instance in the United States. A close contact of someone with bird flu also became ill on the same day, but the second person was not tested, and the cause of the illness is unknown. The disclosure raises the possibility that the virus, H5N1, spread from one person to another, experts said. CDC officials said there was "no epidemiological evidence at this time to support person-to-person transmission of H5N1," but that additional research was needed.
-The World Health Organization (WHO) has given its authorization to the first vaccine to protect against Mpox, a decision that caught even the head of the company that makes the vaccine by surprise. The Jynneos vaccine, made by Danish company Bavarian Nordic, has been approved in Europe, the United States, and other high-income countries since a global Mpox outbreak in 2022. However, low- and middle-income countries rely on the WHO through a process called prequalification to determine which drugs, vaccines, and health technologies are safe and efficient uses of limited health funding.
-Abbé Pierre, a Roman Catholic priest who campaigned against homelessness and poverty in France, has been accused of sexual abuse and assault. Despite being a celebrated figure in the country, he was once voted the third-greatest French person of all time by television viewers. His legacy has been destroyed by revealing his treatment of women, which has led to a decline in his image as a symbol of virtue in France. Over the past two months, a darker image has emerged: that of an accused sexual predator. Years after his death, Abbé Pierre is facing a sudden profusion of sexual harassment and assault accusations, causing soul-searching at the social justice movement he started, raising questions about who knew about his behavior towards women, and unsettled a country that once hailed him as a symbol of virtue.

NEW YORK POST
-Vice President Kamala Harris has sat down with an ABC affiliate for her first solo interview, answering five questions from Action News 6 ABC. The interview came just days after the moderators in the ABC debate with Donald Trump assisted her by providing fact checks on the former president. Harris, who is close friends with Disney executive Dana Walden and a member of her sorority, emphasized the importance of having access to resources to fuel her aspirations and dreams. Harris grew up in a middle-class neighborhood where people were proud of their lawns and worked hard, highlighting the need for more resources to help Americans achieve their aspirations.
-Springfield, Ohio, has faced challenges as its population grew with thousands of Haitian refugees. The town, which is home to 60,000 people, has faced cultural and driving practices differences. Former Ohio State Rep. Kyle Koehler said that the influx of 20,000 people has caused issues between the residents and the newcomers. Springfield has gained national attention recently, with former President Donald Trump referencing the town during a debate. Trump criticized the town for eating the pets of the residents and the dogs brought in, stating that this is a shameful situation in the US.
-Donald Trump has confirmed that he will not be selling his (57%) majority stake in Trump Media & Technology Group, which owns Truth Social. Trump Media saw its shares slump following his televised debate with Democratic rival Kamala Harris. Trump's stock surged as much as 30% following his comments before closing up 12%. Trump's stock surge follows weeks of steady declines ahead of key dates this month when Trump and other company insiders will be allowed to sell their shares. Trump distanced himself from far-right'supporter' Laura Loomer, stating that he can't tell her what to do. Body language experts told Dr. Phil after the presidential debate that ABC News moderators clearly favored Vice President Kamala Harris.