TechCrunch : OpenAI asked Trump administration to expand Chips Act tax credit to

OpenAI asked Trump administration to expand Chips Act tax credit to cover data centers

A recent letter from OpenAI reveals more details about how the company is hoping the federal government can support the company’s ambitious plans for data center construction.

The letter — from OpenAI’s chief global affairs officer Chris Lehane and addressed to the White House’s director of science and technology policy Michael Kratsios — argued that the government should consider expanding the Advanced Manufacturing Investment Credit (AMIC) beyond semiconductor fabrication to cover electrical grid components, AI servers, and AI data centers.

The AMIC is a 35% tax credit that was included in the Biden administration’s Chips Act.

“Broadening coverage of the AMIC will lower the effective cost of capital, de-risk early investment, and unlock private capital to help alleviate bottlenecks and accelerate the AI build in the US,” Lehane wrote.

OpenAI’s letter also called for the government to accelerate the permitting and environmental review process for these projects, and to create a strategic reserve of raw materials — such as copper, alumimum, and processed rare earth minerals — needed to build AI infrastructure.

The company first published its letter on October 27, but it didn’t get much press attention until this week, when comments by OpenAI executives prompted broader discussion about what the company wants from the Trump administration.

At a Wall Street Journal event on Wednesday, CFO Sarah Friar said the government should “backstop” OpenAI’s infrastructure loans, though she later posted on LinkedIn that she misspoke: “OpenAI is not seeking a government backstop for our infrastructure commitments. I used the word ‘backstop’ and it muddied the point.”

CEO Sam Altman also weighed in, writing that OpenAI does not “have or want government guarantees for OpenAI datacenters.”

“We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market,” he wrote, though he said the company had discussed loan guarantees “as part of supporting the buildout of semiconductor fabs in the US.”

In the same post, Altman wrote that the company expects to end 2025 “above $20 billion in annualized revenue run rate and grow to hundreds of billion by 2030,” and he said OpenAI has made $1.4 trillion in capital commitments for the next eight years.

WSJ : Genetically Engineered Babies Are Banned. Tech Titans Are Trying to Make O

Genetically Engineered Babies Are Banned. Tech Titans Are Trying to Make One Anyway.
Startups funded by some of the most powerful billionaires in Silicon Valley are pushing the boundaries of reproductive genetics, hoping to prevent diseases as well as improve the chances for a high IQ and other preferred traits

For months, a small company in San Francisco has been pursuing a secretive project: the birth of a genetically engineered baby.

Backed by OpenAI chief executive Sam Altman and his husband, along with Coinbase co-founder and CEO Brian Armstrong, the startup—called Preventive—has been quietly preparing what would amount to a biological first. They are working toward creating a child born from an embryo edited to prevent a hereditary disease. In recent months, executives at the company privately said a couple with a genetic disease had been identified who was interested in participating, according to people familiar with the conversations.

Gene-editing technologies now in use for treatment after birth allow scientists to cut, edit and insert DNA, but using the process in sperm, eggs or embryos is far more controversial and has prompted calls by scientists for a global moratorium until the ethical and scientific questions get resolved. Editing genes in embryos with the intention of creating babies from them is banned in the U.S. and many countries.

Preventive has been searching for places to experiment where embryo editing is allowed, including the United Arab Emirates, according to correspondence reviewed by The Wall Street Journal.

Many experts worry that the science is too unpredictable to be safe and could usher in a new era of human experimentation by private companies without public or government input or debate. Some also raise the specter of eugenics.

There is only one known instance of children being born from edited embryos. In 2018, Chinese scientist He Jiankui shocked the world with news that he had produced three children genetically altered as embryos to be immune to HIV. He was sentenced to prison in China for three years for the illegal practice of medicine. He hasn’t publicly shared the children’s identities but says they are healthy.

Preventive is in the vanguard of a growing number of startups, funded by some of the most powerful people in Silicon Valley, that are pushing the boundaries of fertility and working to commercialize reproductive genetic technologies. Some are working on embryo editing, while others are already selling genetic screening tools that seek to account for the influence of dozens or hundreds of genes on a trait.

They say their ultimate goal is to produce babies who are free of genetic disease and resilient against illnesses.

Some say they can also give parents the ability to choose embryos that will have higher IQs and preferred traits such as height and eye color.

Armstrong, the cryptocurrency billionaire, is leading the charge to make embryo editing a reality. He has told people that gene-editing technology could produce children who are less prone to heart disease, with lower cholesterol and stronger bones to prevent osteoporosis. According to documents and people briefed on his plans, he is already an investor or in talks with embryo editing ventures.

He has held occasional private dinners to gather Silicon Valley elite alongside gene-editing experts.

One plan Armstrong floated, according to people he has talked to, was for a venture to work in secret and reveal a healthy genetically engineered baby before the scientific and medical establishment had a chance to object—a leap meant to shock the world into acceptance.

A spokeswoman for Armstrong said he had mentioned the idea of working in secret, saying it was someone else’s idea, and said he and others present agreed it was a bad idea. “He would never recommend Preventive operate this way,” she said.

Preventive, which incorporated in May with headquarters at a WeWork in San Francisco, worked with a small staff, keeping its plans quiet for nearly six months. Like many startups, at least one employee signed an NDA, the company didn’t openly solicit job applicants and kept its website bare of details.

After the Journal approached people close to the company last month to ask about its work, Preventive announced on its website that it had raised $30 million in investment to explore embryo editing. The statement pledged not to advance to human trials “if safety cannot be established through extensive research.”

Lucas Harrington, Preventive’s CEO, said it was “completely false” that the company had identified or was working with a couple on editing their embryos. He said the company is focused on research to prove the safety of embryo editing before attempting to actually bring a baby to term. “We are not trying to rush things,” he said.

Harrington added that Preventive is compelled to work outside the U.S. because the Food and Drug Administration is prohibited from reviewing applications for human trials involving embryo editing.

“We are committed to transparency in our research and will publish our findings, whether positive or negative, before considering any potential clinical trials,” he said. Secrecy, he said, “is completely contrary to how we are approaching this research.”

After the Journal requested comment from Armstrong and his representatives, he posted on X that he is “excited to be an investor in Preventive!”

“More than 300 million people globally live with genetic disease,” he wrote. “It is far easier to correct a smaller number of cells before disease progression occurs, such as in an embryo.”

Altman’s husband, Oliver Mulherin, said in a statement he is driving the couple’s investment in Preventive. “I chose to invest in Preventive because I care about research that helps people avoid disease,” Mulherin said. “Sam is supportive, as he is with all of my work, and of the cause.”

The size of Altman and Mulherin’s and Armstrong’s investments in Preventive couldn’t be determined.

Some in the scientific community are skeptical of the company’s plans and goals.

“These people are not working on genetic diseases,” said Fyodor Urnov, a director at the Innovative Genomics Institute at the University of California, Berkeley. “They are either lying, delusional, or both. These people armed with very poorly deployed sacks of cash are working on ‘baby improvement.’”

Scientists say they still don’t understand everything about the human genome or how different genes interact with each other. Any edits, changes or deletions of an embryo’s genes could be passed down to future generations, including unintended mistakes.

In April, Armstrong on X said he envisioned “the IVF clinic of the future” powered by a “Gattaca stack” of technologies—a reference to the 1997 movie depicting a dystopian eugenic future—combining embryo editing and genetic screening.

Together, he wrote, the technologies could “start to accelerate evolution.”

‘Genetic optimization software’
Separately from embryo editing, startups are vastly expanding the power of genetic screening technology.

Some genetic tests for embryos, for sex and diseases such as cystic fibrosis and Tay Sachs, have long been available to parents who undergo IVF. Some parents choose which embryos to implant on the basis of those tests, deciding between freezing, discarding or donating the embryos they don’t use.

Now, some startups are focusing on a process called polygenic screening, which involves extracting DNA from an embryo, analyzing it with statistical algorithms and generating probabilities for a much wider array of characteristics and diseases the child might have.

A handful are already selling these services, backed by investors such as Armstrong, venture capitalist Peter Thiel and Reddit co-founder and venture capitalist Alexis Ohanian.

Orchid and Genomic Prediction give probabilities for disease risk, while Herasight and Nucleus Genomics say they can also give insight into a child’s likely intelligence, height and other traits.

Parents can log on to portals to view multicolored charts and graphs showing how their embryos stack up genetically across different diseases and traits. For example, various tests might show an embryo projected to have an IQ of 130, or an embryo with a 1.5% chance of developing schizophrenia, or an embryo 14% more likely than its siblings to suffer from anxiety. Similar probability scores are available for ADHD, bipolar disorder, diabetes or even male-pattern baldness.

The companies have said these are laboratory-developed tests that aren’t subject to FDA regulation.

The American College of Medical Genetics and Genomics, a professional organization for geneticists and genetic counselors, concluded last year that polygenic screening offers no proven clinical benefit. It isn’t yet fully understood whether disease risks suggested for embryos during polygenic screening hold true into adulthood, the medical society said. Marketing unproven promises of vague optimization, University of Virginia behavioral geneticist Eric Turkheimer said, is “corporate eugenics.”

“The tech people control so much of their lives it’s like, ‘Why shouldn’t I have the perfect child?’” said Dr. Marcelle Cedars, the lead physician at the University of California, San Francisco’s IVF clinic. “But children, they come hardwired, and I don’t think you can predict that.”

The four polygenic screening companies said their methodologies are valid and that the tests offer valuable insight into a child’s future health and characteristics. Some of them said many critics don’t adequately understand the underlying science and that their clients were primarily focused on disease reduction.

“It’s not about genetic superiority, it’s about disease risk mitigation. Children who make it to adulthood without life-threatening diseases are genetically lucky,” said an Orchid spokeswoman.

Orchid founder Noor Siddiqui, 31, counts Armstrong, Ethereum co-creator Vitalik Buterin and 23andMe co-founder and CEO Anne Wojcicki as investors. Orchid charges $2,500 per embryo to run a slate of genetic tests and produce a “risk score” for diseases including Alzheimer’s, bipolar disorder and schizophrenia.

Nucleus founder Kian Sadeghi, along with Siddiqui, is a former Thiel Fellow, a grant and mentorship program for college dropouts. He has described polygenic screening as “genetic optimization software” and talked of it as part of a “neo-evolution,” a term he defined in a now-deleted post on X as “genetically engineering ourselves at scale.”

“The genetic-optimization industry is already here: technologies from embryo selection to gene-editing research are expanding what parents can understand—and choose—for their future children,” Sadeghi said in a statement to the Journal.

Nucleus, which has raised $32 million, is backed by venture-capital firms founded by Thiel and Ohanian and charges $9,999 to provide polygenic screening on up to 20 embryos.

Siddiqui and Sadeghi, 25, both imagine a world in which more couples create embryos through IVF, enabling them to select genetically preferred embryos. “Sex is for fun,” Siddiqui has said. “Embryo screening is for babies.”

Changing DNA
Preventive and some other startups aim to go further, hoping to offer a technology to actually change the genetic code of embryos and produce a baby parents prefer.

Currently, cutting-edge gene-editing treatments are available for adults and children, including a breakthrough technology called Crispr that has been used to make changes in genetic code that causes diseases. Doctors reported this spring that an infant was successfully treated with a customized Crispr therapy for a rare and deadly metabolic disease.

Preventive and other companies are now proposing to take gene editing to the embryo stage.

Other embryo editing startups are Manhattan Genomics, co-founded by Thiel Fellow Cathy Tie, and Bootstrap Bio, which plans to conduct tests in Honduras. Both companies are in early stages.

Harrington, 34, said Preventive’s current focus is on preclinical research. Preventive’s launch statement said it is focused on “preventing severe genetic diseases where families have limited or no alternatives.”

Harrington said the company may conduct some work outside of the U.S. He added he hoped Congress would reconsider restrictions on embryo editing.

Two prominent research labs that study genetics and embryos are expected to announce breakthroughs in coming months, including the lab of Columbia University’s Dieter Egli, with whom Armstrong has held talks about commercializing embryo editing.

In an email, Egli said his research is broadly relevant to gene-editing safety, though he said there are no “direct commercial applications” of his forthcoming work.

Despite the advancements, gene editing still carries the risk of inadvertently inserting or deleting snippets of DNA.

“Responsible adults agree we can’t do it now because it’s unreasonably unsafe,” said Stanford University bioethicist Hank Greely. “The risk-benefit ratio sucks at this point.”

Silicon Valley elite
“We believe as a business that embryonic selection, genetic optimization, is not for the few, but for everyone,” Sadeghi said at the June launch of Nucleus’s polygenic embryo screening product.

Several prominent members of the Silicon Valley elite, including Altman and Elon Musk, have used polygenic screening to evaluate embryos for their children, people briefed on the matter said.

Musk used Orchid to select embryos for two children he had with Shivon Zilis, an executive at his brain-computer interface company Neuralink, one of the people said. Musk, Zilis and their representatives didn’t respond to requests for comment.

Parents outside the tech elite have been slower to adopt the polygenic screening technology, clinicians said.

Orchid, which has raised $16.5 million since its launch in 2019, markets its tests in part through the private equity-backed chain of Kindbody fertility clinics. People familiar with the clinics’ operations said they have performed only a handful of tests at patients’ request. An Orchid spokeswoman said the company has seen “strong and growing interest” in its tests at clinics across the country.

Sadeghi said that Nucleus has served thousands of families, extending “well beyond the walls of Silicon Valley.”

Herasight, which formally launched this summer with backing from influential Silicon Valley venture-capital firm Draper Associates, is charging $50,000 for testing and analysis on up to 100 embryos over the course of five years. Jonathan Anomaly, Herasight’s “in-house philosopher,” said the company is exploring offering less expensive alternatives.

Herasight counts “well known billionaires” among its 80 initial customers, according to a May venture capital email to potential investors reviewed by the Journal. The message pitched the company as one that “empowers parents to have children with the best predicted traits,” including IQ, impulsivity, height and risk of developing common diseases.

On a night in September, Anomaly addressed a crowd of roughly 60 people gathered in celebrity economist Nouriel Roubini’s Manhattan apartment. Anomaly, who changed his last name as a college student, is a former professor of political science at Duke University.

The event was billed as an upscale salon about the future of designer children, with guests recommended to dress “sexy, hip, original, elegant.”

Anomaly is a vocal defender of voluntary eugenics. Humans, he wrote in 2018, should make reproductive choices that “produce future people who thrive.”

During the event, he displayed an image of a mobile Nazi gas chamber used to kill people with disabilities to make the point that Herasight’s aim is “morally a completely different model than the worst form of state-sponsored coercive eugenics.”

Still, Anomaly said, several generations of selecting the most optimal embryos could cause societal changes. In time, he said, there could be a marked difference in intelligence between the “genetically enhanced” and the “genetically unenhanced.”

Some day, Anomaly said, those who choose embryos for higher intelligence might pity those who leave their children unenhanced. “There’s going to be inequality,” he said.

In an email, Roubini said that he has “serious doubts and concerns” about polygenic screening, and though he co-hosted the event, he doesn’t agree with everything Anomaly said.

Weeks later, Herasight unveiled what it called the most powerful genetic intelligence prediction model on the market. It said in some cases parents could select an embryo with an IQ up to 9 points higher than the others being tested—an increase that a scientist at the company said was correlated with increased income and education and a lower risk of heart disease.

Max Howald, 31, and his wife used Herasight to select one embryo among the five they had created. The embryo they chose “was rated as somewhat lower risk for most diseases, as well as higher for IQ and slightly higher for height,” said Howald, a software engineer at a financial technology startup. The couple is due in February.

Howald learned about polygenic screening from a post on LessWrong, a blog popular in the effective altruism community, which is focused on identifying evidence-based ways to do good.

He and his wife were attracted to the technology in part because it felt like exercising control over their reproductive future, Howald said. Howald is Jewish, and his wife was born in China during that country’s one-child policy.

“We’re both familiar with what can happen and what has happened, when the state coerces people and restricts fundamental human rights, on a very personal level,” Howald said. “We view the opportunity and choice to do polygenic screening as exercising rights that were unavailable or forcibly denied to many of our ancestors.”

‘The field will be watching’
The return on investments in embryo technology remains hazy, even as the U.S. market for IVF is expected to grow from roughly $3.5 billion in 2023 to more than $5 billion in 2028, according to market research from McKinsey.

It’s also not yet clear how embryo editing will be commercialized and how many could afford it. The list price for the first FDA-approved personalized gene editing treatment for adults, which treats sickle cell disease, is $2.2 million, although it’s unclear what a patient would actually pay.

In a November 2024 post on his personal blog, Preventive’s Harrington wrote that embryo editing could eventually cost as little as $2,000. “When amortized across the generations this number becomes vanishingly small,” he wrote. The technology could be especially promising for couples who have the same genetic condition, such as in Nigeria, where many people have sickle cell disease, he wrote.

Harrington told the Journal the example shows that significant numbers of couples globally face difficult choices about biological children and hereditary disease, and he wasn’t suggesting a starting point for clinical use.

Altman informally advised Harrington to incorporate Preventive as a public-benefit corporation—which pursues a social good in addition to profit—according to people familiar with the discussions.

Preventive defines its social good as “the responsible advancement of the science and safety of genome editing technologies applied before birth to benefit humanity,” according to its corporate charter. In Delaware, where Preventive is incorporated, public-benefit corporations have additional protections against shareholder lawsuits, a measure Harrington described as enabling such corporations to focus on social good rather than solely on profits.

Harrington earned his doctorate in the lab of Jennifer Doudna, who shared the Nobel Prize in 2020 for her groundbreaking work on Crispr. The two are among co-founders of a company, Mammoth Biosciences, focused on gene-editing therapies.

When asked about the launch of Preventive, Doudna said that Harrington was “bringing rigorous scientific standards and transparency needed to explore whether Crispr technology has matured enough to safely address severe genetic diseases preventively.”

“The field will be watching to see whether the science supports moving forward responsibly,” she said.

WSJ : Flight Cancellations Could Rise to 20% if Government Shutdown Continues

Flight Cancellations Could Rise to 20% if Government Shutdown Continues
Transportation Secretary Sean Duffy says that as air-traffic controllers miss paychecks, more might start to miss their shifts

Flight cancellations across the U.S. could rise to 15%—or even 20%—if the government shutdown continues, Transportation Secretary Sean Duffy said.

“If this shutdown doesn’t end relatively soon, the consequence is that more controllers don’t come to work,” he told Fox News on Friday. “I don’t want to see that.”

While most air-traffic controllers can navigate missing one paycheck, virtually none of them can handle missing two paychecks, Duffy said. That second check is due Tuesday.

So far, the flight cancellations have been slight. New data issued Friday afternoon showed there were 780 canceled flights Friday, with another 25,375 flights scheduled to depart, according to Cirium, an aviation-data provider. That is a reduction of 3%. To put that in perspective, cancellations are nowhere near what was seen for weather events or technology-related disruptions that have occurred at airports in the past couple of years.

The Federal Aviation Administration has said it would start with traffic cuts of 4% at select airports Friday, increasing to 6% of capacity by Nov. 11, 8% by Nov. 13 and 10% by Nov. 14.

For Saturday—typically the least busy flying day of the week—595 flights have been canceled so far, or about 2.75% of flights, Cirium said.

Duffy said Friday that the gradual approach was based on recommendations from the FAA’s safety team.

Randy Babbitt, the FAA’s chief from 2009 to 2011, said carriers may have asked for more time to adjust their flying schedules to the 10% reduction Duffy sought.

“The airlines have a huge scheduling nightmare on their hands,” Babbitt said. “They’ve got some big decisions to make.”

JetBlue executive Steve Olson said that when weather causes a delay, operations crews typically have time to prepare. Staffing-related delays like the ones hitting air-traffic control towers are more unpredictable.

Olson, senior vice president of operations and airports for JetBlue, looked at the FAA’s webpage Friday afternoon and counted off ground delays across the country, including a four-hour average delay at Ronald Reagan Washington National Airport. Flight crews can’t absorb delays that long, he says.

The airline will cancel more flights to make sure they can efficiently run those they keep on the schedule, Olson said. “That’s just how we’re going to have to navigate.”

JetBlue has cut flights with fewer passengers and is running fewer flights on routes with frequent trips—for instance, its New York City to Orlando route. The airline also has to consider where the crew and plane need to be positioned before canceling, he says. On Friday, JetBlue canceled about 25 flights.

If the FAA does restrict flights by as much as 20%, Olson said, travelers will have far fewer options, especially as the Thanksgiving holiday approaches.

The reductions to air travel have been moderate so far and are nowhere near the disruptions seen for weather events or technology-related disruptions that have occurred in the past couple of years.

Outside the Delta Lounge on Friday in San Francisco International Airport, a line formed as staffers handed out cookies, Pringles, Cheez-Its and water to travelers waiting to enter the bustling lounge. By midday, some travelers’ flights had been delayed multiple times.

“I don’t want to jinx it,” said Seckeita Lewis, who was flying Friday from San Francisco to Dallas on American Airlines. Her flight looked like it would be on time.

Lewis, chief marketing officer of the nonprofit StoryCorps, was in town for a work gala and eager to get home to her 3-year-old daughter. She said she had been thinking about the risk of delays ever since the potential for flight disruptions was announced.

“Everyone is thinking about ‘what if?’ ” Lewis said, adding that she briefly considered having to drive home. But the San Francisco airport was less chaotic than she feared, she said.

Nicola Rice, 22, waited in Terminal 1 after his flight from Los Angeles arrived on time, but some friends traveling from other cities got delayed. They planned a weekend filled with activities such as seeing the Golden Gate Bridge and visiting Alcatraz Island.

“I was trying to figure out which would be more likely to be canceled,” he said.

The scene at Newark Liberty International was calm Friday afternoon. Leticia Contreras, a 47-year-old from New Jersey, had started to plan for what to do if her flight home from Florida was canceled or delayed, but the plane took off with no issue.

“I had told my mom I might be staying an extra day and pushing back some plans that I had for tomorrow,” Contreras said. “Luckily enough, everything’s gonna be fine.”

Matthew Massia-Lahey and Teresa Forbes weren’t as lucky. The laboratory technologists at a hospital in Burlington, Ontario, spent five days in the U.S. training on a new piece of medical technology. They were initially relieved Friday afternoon that their flight home was only delayed by 35 minutes.

Reached later Friday, Forbes said their flight was delayed twice more due to “air-traffic controller delays.” She also worried about colleagues due to arrive next week in the U.S. for their training.

At Louis Armstrong New Orleans International Airport, Kelly O’Brien said the airport was “surprisingly way emptier than I expected.”

The 30-year-old New Yorker said she breezed through security in about three minutes.

“I saw things on TikTok and I said it looks crazy here, but it’s totally fine,” she said.

Rob Davidson, 55, was heading home to Saskatchewan, in Canada, from an expo in New Orleans.

“I was a little paranoid when I heard about the whole thing and looking at the airports listed and, of course, I’m going to one of those airports next,” he said of his Atlanta stop where he would connect to a flight on to Calgary.

“It’s really out of my control, so I’m just gonna roll with it,” he said.

FT : Lloyds quietly builds £2bn rental portfolio to become major UK landlord

Lloyds quietly builds £2bn rental portfolio to become major UK landlord
UK bank has acquired 7,500 homes for rent since 2021 as it seeks to diversify income

Lloyds Banking Group has quietly become one of Britain’s largest private landlords, building a residential property portfolio worth more than £2bn as part of a drive to diversify its income.

The group has purchased about 7,500 properties through its Lloyds Living division since it was launched in 2021, giving it a portfolio with assets in excess of £2bn, according to company disclosures and people familiar with the details.

The growth of Lloyds’ private home rental business means it is now a top five UK-listed residential landlord, behind only insurer Legal & General, fund group M&G and property developer Grainger.

Chief financial officer William Chalmers said last month that Lloyds Living was “a significant contributor” to growth in the group’s non-interest income in the three months to September.

The initiative was launched in 2021 as Lloyds, and other retail banks, sought new revenue streams during a time of record-low interest rates, which were squeezing profit margins at their core businesses.

However, higher rates in recent years have boosted net interest income for banks — the difference between the interest they receive from borrowers and pay out to depositors. This rise in profitability has pushed up share prices across the sector, with Lloyds’ shares now trading at their highest level since the financial crisis.

Lloyds has mostly invested in new housing estates in suburban areas, rather than blocks of flats in cities.

Its original target was for a portfolio of 10,000 properties by the end of this year. It is set to miss this but the pace of expansion has increased recently, with growth of 50 per cent in property numbers in the past year.

A report by real estate company Savills this year said the bank was among the biggest investors in single family homes in the UK in 2024.

On top of boosting its income, the push into private home rentals was seen by executives as a way for Lloyds to meet ESG objectives by offering better quality and services to renters than many existing landlords.

Lloyds said: “We are pleased with the significant progress made to grow the Lloyds Living business since its launch in 2021, and how — in line with the strategic aims set out from the start — it is helping to increase access to good quality, affordable housing nationwide and is already contributing significantly to the group’s diversified income streams.”

Separately, Lloyds last month reported a 40 per cent drop in third-quarter profits driven by an £800mn charge linked to car finance mis-selling.

Lloyds, which is the biggest provider of car financing through its Black Horse business, has now made total provisions of £1.95bn for the scandal.

WSJ : More Drugs to Fight High Cholesterol Are Emerging

More Drugs to Fight High Cholesterol Are Emerging
Patients have options beyond statins, and other alternatives are on the horizon

  • Merck’s PCSK9 pill, in a late-stage study, reduced LDL cholesterol by up to 60% over six months in adults with or at risk of atherosclerotic cardiovascular disease.
  • In another study, Amgen’s PCSK9 drug, Repatha, reduced the risk of heart disease, stroke, and other cardiovascular events by 25% in high-risk patients who haven’t had a heart attack or stroke.
  • A gene-editing drug from CRISPR Therapeutics cut cholesterol levels by 49% and triglyceride levels by 55% in two months in high-risk patients who took the highest dose.

A statin isn’t the only answer anymore to lowering cholesterol.

The lipid-reducing medicines, among the most widely prescribed drugs in the U.S., have been a mainstay of heart-disease prevention and treatment for decades. But they don’t work for everyone, and can only reduce harmful “bad” cholesterol so much.

Now some patients have other cholesterol-busting medicines available as options—and even more alternatives are on the horizon.

Certain patients already can take a twice-yearly injection, sold by Novartis as Leqvio, that uses an RNA-based technology, or a more frequent injection that targets a protein called PCSK9 that interferes with the body’s ability to clear the bad form of cholesterol.

Biotech Amgen has been doing testing to expand use of its PCSK9 drug Repatha to more patients, while Merck is developing an easier-to-take pill version. Biotechs are working on therapies that use gene-editing technology to lower people’s cholesterol, perhaps permanently.

Researchers presented the latest study results this weekend at the American Heart Association’s annual meeting.

“This is an amazing time, a very, very exciting time for patients,” said Dr. Leslie Cho, cardiologist and director of the Cleveland Clinic Women’s Cardiovascular Center, who wasn’t involved in the latest studies. She cautioned, however, that most patients can be helped by diet, exercise and statins, and some of the newer therapies can be very expensive.

In a late-stage study, Merck’s PCSK9 pill reduced bad, or LDL, cholesterol up to 60% over six months in adults with or at risk of atherosclerotic cardiovascular disease, researchers reported.

Amgen’s PCSK9 drug, Repatha, reduced the risk of heart disease, stroke and other cardiovascular events by 25% in a large Phase 3 study of subjects taking a statin and at high risk of an event but haven’t had one.

An early, or Phase 1, study found that a gene-editing drug from CRISPR Therapeutics cut cholesterol levels by 49% in two months in patients who received the highest dose, study investigators reported. The study included 15 patients.

The therapy also reduced levels of triglycerides, a type of fat in the body, by 55%. The therapy uses so-called Crispr-Cas9 technology to knock out a cholesterol-promoting gene called ANGPTL3 that pushes up levels of cholesterol and triglycerides.

The goal is to offer a “one and done” therapy, said Dr. Luke Laffin, a preventive cardiologist at the Cleveland Clinic and lead author of the study, published in the New England Journal of Medicine.

While it is still early, “ultimately technologies like this will likely play a role in supplanting every two weeks injections and taking daily pills,” he said.

High cholesterol is a major driver of heart disease. Statins, like Lipitor and Zocor, emerged as powerful antidotes starting in the 1980s. With blood-pressure medicines, antismoking campaigns and advances in treating heart attacks, the medicines contributed to a sharp decline in heart-disease deaths.

Yet those declines stalled nearly a decade-and-a-half ago, and heart disease is still the nation’s biggest killer.

More than a quarter of Americans have levels of LDL cholesterol that are considered high—130 milligrams per deciliter—according to the most recent data from AHA. Doctors generally recommend that people at high risk of a heart attack or stroke keep their LDL cholesterol less than 70 mg/dL, and those at very high risk keep it below 55 mg/dL. People at very high risk have had a heart attack or stroke and have multiple high-risk conditions like hypertension, diabetes or are age 65 or older.

“Often statins are not enough,” said Dr. Jamal Rana, a cardiologist and professor of clinical science with Kaiser Permanente in Oakland, Calif.

Because statins don’t reduce cholesterol levels low enough in certain high-risk patients, Rana adds other medicines to their prescriptions like the pill Zetia that also goes by the generic name ezetimibe, a PCSK9 drug or Leqvio, also known as inclisiran.

A little over half of people who could benefit from a cholesterol medicine are on one, according to the Centers for Disease Control and Prevention. Many quit within a year of starting a statin. Some drop off due to side effects like muscle pain or headaches.

Mary-Ellen Conway, 78, of Houston, has taken two statins over several years but got leg cramps taking one, while her LDL cholesterol levels were higher than she wanted on the other medicine.

Her LDL cholesterol has dropped significantly while a subject in the Phase 3 study of Merck’s experimental PCSK9 pill. Her LDL cholesterol at last check was 35 mg/dL. It had been 166 mg/dL in 2003, and 62 mg/dL in 2024, when she took a statin and another drug.

The adults in Conway’s trial also took statins. Merck said its drug, called enlicitide decanoate, is now being studied to see how effective it is at preventing heart attacks and strokes, with results expected in a couple of years. Merck said it plans to file for FDA approval early next year.

No serious side effects were reported among the 15 patients in the trial of CRISPR Therapeutics’ experimental therapy, called CTX310.

Such gene-editing therapies must be tested in thousands more patients to assess their effectiveness and safety, said Dr. Kiran Musunuru, cardiologist, geneticist and professor for translational research at Penn Medicine, who wasn’t involved in the CRISPR Therapeutics study.

A subject in a trial of a different gene-editing therapy died a few days ago, according to biotech Intellia Therapeutics. Studies testing the drug are now on hold.

Musunuru expects gene-editing therapies will become available by the 2030s and provide permanent and more targeted treatment to certain patients depending on the genetics of their conditions. “In my opinion, the more options, the better,” he said.

WSJ : Visa and Mastercard Near Deal With Merchants That Would Change Rewards Lan

Visa and Mastercard Near Deal With Merchants That Would Change Rewards Landscape
Deal under discussion would lower credit-card interchange fees for merchants, but could make it harder for consumers to use rewards cards at the register

  • Visa and Mastercard are nearing a settlement with merchants to resolve a 20-year legal dispute over credit card fees and acceptance rules.
  • The proposed settlement would lower credit-card interchange fees, often between 2% and 2.5%, by an average of about 0.1 percentage point over several years.
  • Merchants would gain more flexibility to reject certain credit cards, such as rewards cards, which typically have higher interchange fees.

Visa V -0.28%decrease; red down pointing triangle and Mastercard MA -0.24%decrease; red down pointing triangle are nearing a settlement with merchants that aims to end a 20-year-old legal dispute by lowering fees stores pay and giving them more power to reject certain credit cards, according to people familiar with the matter.

Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around 0.1 percentage point over several years, the people said. They would also loosen rules that require merchants that accept one of a network’s credit cards to accept all of them.

A deal could be announced soon, the people said, and would require court approval to take effect.

If an agreement is finalized, consumers could see big changes at the register. Merchants that accept one kind of Visa credit card wouldn’t have to accept all Visa credit cards, for example. Under the current talks, credit-card acceptance would be divided into several categories including rewards credit cards, credit cards with no rewards programs, and commercial cards, the people familiar with the matter said.

Some stores might turn away rewards cards, which charge them higher fees and in recent years have become very popular with consumers. But stores that reject those cards would face the risk of declining sales.

The case dates back to 2005, when merchants sued Visa, Mastercard and large banks, alleging that they engage in anticompetitive behavior with interchange fees and acceptance terms.

In March 2024, the two sides reached a deal to lower interchange fees by around 0.07 percentage point on average over five years. The agreement would have created a little more flexibility for merchants that want to charge consumers extra when they pay by credit card, a practice known as surcharging. The judge overseeing the case rejected the deal. The new settlement being discussed also would involve surcharging, the people said.

One of the challenges in the case is the divide between attorneys for different factions among the merchants. The lawyers chosen by a judge to represent the merchant class group haven’t been on the same page in the past as lawyers representing big merchants and trade groups.

Friction between merchants and the networks has increased significantly since the case began, in large part because of the increase in interchange and other fees that merchants have been incurring.

A particular point of tension is the proliferation of rewards credit cards. The points, miles or cash back that consumers earn when they shop with certain credit cards are in part funded by the interchange fees the networks set and that merchants pay to banks when consumers shop with their credit cards. Premium credit cards, or those with more generous rewards programs, tend to charge merchants higher interchange fees.

Currently, merchants can’t deny accepting a Visa rewards credit card if they accept other types of Visa credit cards. Rewards cards, particularly the premium ones, have become more in demand by consumers in recent years. Banks at times upgrade their customers’ existing cards, meaning that it is possible those cards that currently don’t have rewards on them could fall into a rewards category in the future.

Consumers have already been affected by the fight between the networks and merchants. More merchants, especially small businesses, in recent years have begun passing on the interchange fees they incur to consumers by surcharging them when they pay with credit cards.

In 2023, banks and other financial institutions that issue Visa and Mastercard credit cards collected $72 billion of these interchange fees, according to the Nilson Report, a trade publication. The settlement being discussed would lead to a decline in those fees for a certain number of years. Separate fees that the networks set and pocket, meanwhile, have risen in recent years.

Any settlement on credit-card fees and acceptance rules is unlikely to affect litigation that large merchants are pursuing against the networks and large credit-card issuing banks. In these cases, some of which are set to go to trial next year, big merchants are seeking monetary damages tied to interchange fees and acceptance rules.

FT : Regulator gives Ovo more time to meet capital adequacy rules

Regulator gives Ovo more time to meet capital adequacy rules
Energy supplier has been struggling to meet new requirements introduced after 2021 energy crisis

Britain’s energy regulator has given one of the largest household suppliers more time to meet its capital buffer target in an effort to relieve pressure on the company. 

Ofgem has told Ovo that as long as it is working towards the objective it will be given the breathing space, according to people familiar with the matter.

The targets have been in force since March to try to avoid a repeat of the energy crisis that began in late 2021 when around 30 suppliers collapsed because they could not withstand surging gas prices. 

The move will give Ovo more time to speak to potential investors about fundraising, but is likely to stoke anger among the company’s rivals which have already met their targets. 

One person close to the situation said that Ovo was working on a new business plan that would satisfy Ofgem. The regulator is taking a constructive approach to Ovo’s negotiations, they said. 

Ovo, founded by the entrepreneur Stephen Fitzpatrick, serves around four million UK households. 

The rules require companies to hold a certain amount of cash or other assets per customer in a bid to cushion them from wholesale price volatility or other market surprises. 

Companies must be above a capital buffer “floor” and meet or be working towards a “target” level. If they are not yet meeting the target level, they have to agree a plan with Ofgem for how to achieve it. 

One person familiar with the situation said that Ovo could be a profitable business but the “pressure the regulator was putting on the firm was becoming a self-fulfilling problem”. They added that it made it harder to raise funds from investors as they considered it “dead capital” that had lower returns than a guaranteed profitable infrastructure investment. 

Ofgem’s rules say the plan must be “time-bound with a defined end date”.

Ovo admitted last month that it is one of three companies that is yet to meet the capital target, alongside Octopus, the UK’s largest household energy supplier and one other company that has not been named. 

In September it warned in its annual accounts that there was a “material uncertainty” over its ability to continue as a going concern, due to uncertainty over the “timing and extent” of its capitalisation plan. 

“Certain elements of the plan are outside of the control of the group,” the company said. It has been talking to investors about another fundraise but so far this has not materialised. 

This week, the chief executive of the company’s household retail unit David Buttress resigned, along with his former finance chief James Davies, who held the same role at Monzo before joining Ovo in October 2024. 

Ofgem is keen to avoid pushing Ovo into a corner through the capital adequacy rules when it is passing monthly financial stress tests, according to people familiar with the matter. 

However, rivals are likely to view the regulator’s move as giving an unfair advantage to companies which have not saved the cash to meet their capital targets. 

One industry figure said it was “outrageous behaviour” by Ofgem. 

In a post on LinkedIn this week, Centrica’s chief executive Chris O’Shea said the capital requirements are “not being implemented consistently or transparently” and called on Ofgem to “act urgently to protect consumers and provide transparency”.

Ofgem declined to comment.