NY Post : Activist investor faces governance issues with his charity

Activist investor faces governance issues with his charity

When it comes to good governance, Jonathan Litt doesn’t necessarily practice what he preaches.

The activist investor’s real-estate-focused hedge fund, Land & Buildings, has lately rattled cages at companies like Hudson’s Bay, the owner of Saks Fifth Avenue, saying its swanky flagship store might be put to better use as a hotel or an office building to benefit investors.

Litt likewise has decried nepotism at Forest City Realty Trust. And in a fiery letter to Taubman Centers, the owner of the Mall at Short Hills, Litt accused the CEO of “riding roughshod” over shareholders as he pressed for a seat on its board.

Meanwhile, however, critics say 53-year-old Litt has been running a charity for the past 20 years with governance issues of its own — namely that it appears to be violating New York law by failing to populate its own skimpy board and doling out cash to causes that have nothing to do with the charity’s charter.

In the latter case, public tax records show that Litt’s charity, the Children With Dyslexia Scholarship Fund, for the past seven years has been cutting checks between $20,000 and $25,000 annually to the Greenwich Country Day School, a posh academy in Connecticut attended by Litt’s children.

That’s despite the fact that Greenwich Country Day does “not have programs that support straight dyslexia,” Headmaster Adam Brody admitted to The Post.

“We could use the funds [from Litt’s charity] to help identify dyslexic learners, but we would then refer them to other schools,” Brody said, adding, “The Litts are a terrific family in our school community.”

Litt’s dyslexia charity, a tax-exempt 501(c)3 whose status is subject to nonprofit regulations, also doles out funds each year to his alma mater, the Kildonan School, which specializes in helping dyslexic students.

But the donations only total about $8,000 a year, according to tax records — less than half what Greenwich Country Day gets.

“The fund’s making of grants that appear not to be in furtherance of its stated, legal mission are contrary to its certificate of incorporation and not permitted legally,” said Lloyd Hitoshi Mayer, a professor at Notre Dame Law School who viewed a copy of the fund’s original incorporation filing.

Through a spokesman, Litt declined to answer any specific questions about the apparent violations.

“The Children with Dyslexia Scholarship Fund has provided hundreds of thousands of dollars to worthy causes for more than 20 years,” Litt said in a written statement.

Litt went on to suggest that the companies his hedge fund lately has been targeting had been digging up dirt on his charity in retaliation.

“It is unfortunate that executives of companies our fund has sought to drive change at are more interested in spending time and resources on pushing a story criticizing a charity, than they are in better running their businesses for the good of all their shareholders.”

In 2014, Litt’s dyslexia charity gave $35,000 to the Massachusetts Maritime Academy. Later that year, Litt chartered one of its yachts to sail in a race in Long Island Sound that raised funds for the Breast Cancer Research Foundation, according to published reports at the time.

Litt’s charity also has doled out money to the Allan Houston Legacy Foundation, which focuses on youth and mentoring rather than dyslexia — and which Litt’s ex-wife, Renee Koblentz-Litt, also happens to have repped in public relations, according to published reports and her LinkedIn page.

“It was sloppy for the board of directors to expand the fund’s activities without first expanding its legal purposes [with New York state],” Notre Dame’s Mayer said.

Elsewhere, Litt’s charity, which held more than $300,000 in cash as of 2015, only has two directors — himself and a family member, after his ex-wife stepped down in 2011 and was never replaced, according to tax records. That’s also in violation of New York law, which requires a minimum of three directors, Mayer notes.

The Internal Revenue Service also prefers three directors, according to Jeff Tenenbaum, chair of the nonprofit organizations practice at the Venable law firm.

“The IRS also wants some independent folks and not from the same family or business,” Tenenbaum said. Otherwise, “it increases the risk that the organization will be used for the private benefit of the people who run it.”

>>> What to look at this Week End - 4th of Sept. 2017 (US Labor Day)

Asian equity markets opened mostly to the downside with North Korea conducting its sixth-ever nuclear test on Sunday, which according to Japanese officials resulted in seismic readings that were 10 times more powerful than the country's previous test a year ago. North Korean state media claimed the country has developed a hydrogen bomb that could attach to an intercontinental ballistic missile. The test was met with widespread condemnation across the globe. US Defense Secretary Mattis said the US has many military options to deal with the latest provocations, but that it was not seeking total annihilation of the country. President Trump scheduled a meeting with military leaders to discuss the situation, while also tweeting the US is “considering, in addition to other options, stopping all trade with any country doing business with North Korea.” Analysts in general think that the market impact this time around will linger longer than previous as provocations have become more frequent and more successful. Though lacking a major event should return to normal in the near term.
- On the whole markets traded off N. Korea with earnings season mostly over and no major economic data. In China metals continue to rally and gasoline prices in the US continue to climb on supply concerns after Hurricane Harvey. US markets will be closed Monday for a holiday.

Nikkei -0.91% Hang Seng -0.50% CSI +0.42% Shanghai +0.40% Shenzen +0.62%

Eur$ 1.1885 CNH 6.5495 CNY 6.5492 JPY 109.78 GBP 1.2954 CHF 0.9609 RUB 57.6088 WTI$ 47.30 +0.02%

S&P -0.38% EuroStoxx -0.44% FTSE -0.29% Dax -0.73% SMI -0.50%

Macro :
- May Set to Agree on $65 Billion Brexit Bill, Sunday Times Says
- EU’s Vestager Says State Aid Rules Shouldn’t Hinder Innovation
- Padoan Says Italy Improving Debt Mgmt as It Plans for End of QE
- Sweden Proposes Welfare Profit Cap, Excludes Health Care: SVT

Keep an eye on :
- ABN NA : ABN Amro Group, Grifols to Join S&P Europe 350
- AB1 GY : Air Berlin Is Said to Pay 10% Interest for Bridge Loan: BamS
- ALPH SW : Alpiq Sees CHF2.2b Swiss Hydro Power Market Deficit By 2021: SaW
- AKE FP : Arkema Says Fire Seen at Texas Plant Soon After 5pm
- BAYN GY : Bayer, Monsanto May Need to Resolve Any Serious Concerns: EU
- BCP PL : BCP Says Requested Legal Assessment Won’t Halt Novo Banco Sale
- BOL FP : Bollore First Half Revenue EU7.1b
- BVI FP : Bureau Veritas Says It Raised $355 Million in Private Debt Issue
- CLN VX : White Tale Wants Clariant to Sell Plastics & Coatings Unit: SZ
- FB US : An Instagram hack hit millions of accounts, and victims’ phone numbers are now for sale
- FCA IM : Fiat CEO Says There Is No Big Deal on His Table: Marchionne
- FCA IM : Fiat Chrysler to Spin Off Car-Part Unit as No Big Deal on Table
- GL FP : Galeries Lafayette to Buy 100% of La Redoute by 2021: JDD
- GVNV NA : GrandVision Will Boost Its Stake in Visilab to 60% From 30%
- GRF SM : ABN Amro Group, Grifols to Join S&P Europe 350
- HELN VX : Helvetia First Half Business Volume CHF5.53 Bln
- ILD FP : France to Look Into Tax of Wireless Offers, Budget Minister Says
- IMG LN : Rise of 82% in licensing revenue bodes well for upcoming sale - FT
- LUPE SS : Lundin Mining Could Buy Mining Company of Significant Size: DI
- NETS DC : Nets Is Said to Start Exclusive Talks for Takeover: Reuters
- NOVN VX : Novartis Names Narasimhan CEO as Jimenez Retires
- ORA FP : France to Look Into Tax of Wireless Offers, Budget Minister Says
- PACD US : NYSE said the company is below compliance with its continued listing standards; to be delisted if unable to resume compliance within 6-months
- UG FP : PSA’s Opel Unit Said to Lose EU4m Each Workday: Automobilwoche
- RB/ LN : Reckitt Benckiser Says 4 Senior Executives to Leave: FT
- SAN FP : Sanofi Gets Tentative FDA Approval of Admelog
- SPD LN : Sports Direct investors to fight share buybacks which would increase founder Mike Ashley’s stake
- SAZ GY : Nidda Proposes EU74.40/Shr Cash for Stada Minority Holders
- TIT IM : Telecom Italia to Name New CEO Within Weeks: Recchi to Corriere
- TEVA IT : -2.75% in TLV
- TWX US : Universal Pictures In Talks to Sell Oriental DreamWorks Stake:FT
- TUI GY : TUI Seeking Acquisitions as Divestments Fill War Chest: FAZ
- VIV FP : Fininvest, Mediaset Seek EU3B Legal Damages From Vivendi: Sole
- VOW3 GY : Volkswagen to Recall Over 1.8m Cars in China on Fuel Pump Defect

>>> Europe : Brokers Upgrades & Downgrades - 4th of Sept. 2017

>>> Up
* Axa Raised to Buy at HSBC
* Generali Raised to Buy at HSBC
* KPN Raised to Overweight at JPMorgan, PT EU3.50
* Moneysupermarket Raised to Buy at Peel Hunt
* RBS Raised to Sector Perform at RBC, PT 240p
* Thermador Groupe Raised to Buy at Portzamparc, PT EU108
* UBM Raised to Buy at Peel Hunt

>>> Down
* 4imprint Cut to Add at Peel Hunt
* Ascential Cut to Hold at Peel Hunt
* Innogy Cut to Hold at Berenberg
* RWE Cut to Hold at Berenberg
* Telefonica Cut to Neutral at JPMorgan, PT EU10.50
* Telit Cut to Hold at Berenberg

>>> Initiation
* HSBC New Buy at Jefferies, PT 920p

>>> Call

>>> Asian Update

Asia Mid-Session Market Update: North Korea successfully tests hydrogen bomb, sending safe haven flows into high gear; PBOC sets yuan rate stronger, skips OMO

***Asia Summary***
- Asian equity markets opened mostly to the downside with North Korea conducting its sixth-ever nuclear test on Sunday, which according to Japanese officials resulted in seismic readings that were 10 times more powerful than the country's previous test a year ago. North Korean state media claimed the country has developed a hydrogen bomb that could attach to an intercontinental ballistic missile. The test was met with widespread condemnation across the globe. US Defense Secretary Mattis said the US has many military options to deal with the latest provocations, but that it was not seeking total annihilation of the country. President Trump scheduled a meeting with military leaders to discuss the situation, while also tweeting the US is “considering, in addition to other options, stopping all trade with any country doing business with North Korea.” Analysts in general think that the market impact this time around will linger longer than previous as provocations have become more frequent and more successful. Though lacking a major event should return to normal in the near term.
- On the whole markets traded off N. Korea with earnings season mostly over and no major economic data. In China metals continue to rally and gasoline prices in the US continue to climb on supply concerns after Hurricane Harvey. US markets will be closed Monday for a holiday, on Friday US nonfarm payrolls increased 156K in August after a downwardly revised 189K gain (was 209K) in July, below the 180K consensus.
***Key economic data***
- (JP) JAPAN AUG MONETARY BASE Y/Y: 16.3% V 15.6%E; MONETARY BASE END OF PERIOD: ¥469.2T V ¥468.3T PRIOR
- (AU) AUSTRALIA Q2 BUSINESS INVENTORIES Q/Q: -0.4% V 0.3%E; CORPORATE OP PROFIT Q/Q: -4.5% V -4.0%E
- (AU) AUSTRALIA AUG ANZ JOB ADVERTISEMENTS M/M: 2.0% V 1.6% PRIOR

***Speakers and Press***
China/Hong Kong
- (CN) China Securities Regulatory Commission (CSRC) announces draft rules designed to give stock exchanges more power in regulating the market - Shanghai Securities News and Securities Time
- (CN) Former PBoC Adviser Yu Yongding urges achieving free float of yuan currency rate as soon as possible - Chinese Press
- (CN) China shadow banking sector grew by an annualized 36% between 2010 and the end of 2016, to reach a total CNY122.8T - Nomura
Korea
- (KR) Follow Up: USGS: Magnitude 5.1 ‘mining explosion’ detected East-Northeast of Sungjibaegam, North Korea – US financial press
- (KR) South Korea Fin Min Kim: facing increased geopolitical risks; market impact from North Korea wont be short term
- (KR) South Korea Environment Ministry conditionally approves THAAD environment report
- (KR) South Korea President Moon: To seek maximum sanctions and pressure on North Korea; agree with Japan PM Abe to a stronger response against North Korea
Japan
- (JP) Japan Chief Cabinet Sec Suga: On the call Abe and Putin agreed North Korea situation is grave; Japan and China to increase North Korea pressure on various levels
***Asian Equity Indices/Futures (00:00ET)***
- Nikkei -1.0%, Hang Seng -0.5%; Shanghai Composite +0.1%, ASX200 -0.5%, Kospi -0.8%
- Equity Futures: S&P500 -0.4%; Nasdaq100 -0.5%, Dax -0.4%, FTSE100 -0.2%

***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.1890-1.1857; JPY 109.93-109.26; AUD 0.7973-0.7930; NZD 0.7145-0.7144
- Dec Gold +0.6% at $1,338/oz; Oct Crude Oil +0.3% at $47.42/brl; Sept Copper +0.6% at $3.14/lb
- (US) According to AAA, on Sunday average retail gasoline price rise 1% to $2.621/gallon from $2.59 on Saturday; +10.9% w/w
- (CN) PBoC skips OMO v skipped 7 and 14-day prior; Drains net CNY140B v CNY50B prior (3rd consecutive skip)
- USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT: 6.5668 V 6.5909 PRIOR (6th consecutive stronger setting)
- (KR) Bank of Korea (BOK) sells KRW430B in 6-month bonds at 1.34%
- (KR) South Korea sells KRW1.56T vs. KRW1.55T target in 5-year Govt bonds; Yield: 2.005% v 1.970% prior
- (TH) Thailand sells combined THB20.7B in 3-month and 1-yr bills

***Equities notable movers***
Australia/New Zealand
- RAP.AU Reaffirms commitment for a follow-up SMARTCOUGH-C Study; +23.9%
- ADO.AU Signed agreement to sell 100% stake in Diasource unit for €15.9M; CEO Jef Vangenechten to resign; +22.2%
- 88E.AU Flow testing on ICEWine number 2 resumed on Aug 31st; -20.9%

WSJ : Mattis Warns North Korea: U.S. Has ‘Many Military Options’

Mattis Warns North Korea: U.S. Has ‘Many Military Options’
Administration draws up new economic sanctions, criticizes Beijing and Seoul after latest nuclear test

WASHINGTON—U.S. Defense Secretary James Mattis warned North Korea in stark terms on Sunday that any attack on the U.S. or its allies would trigger a massive military response, in comments that came after a national-security briefing with President Donald Trump called in response to Pyongyang’s sixth and most powerful nuclear test.

“We have many military options and the president wanted to be briefed on each one of them,” said Mr. Mattis in brief comments Sunday afternoon, accompanied by Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff. Mr. Mattis warned that any attacks on the U.S., Japan or South Korea “will be met with a massive military response, a response both effective and overwhelming.”

Mr. Mattis urged the regime to heed calls from the U.S. and other members of the United Nations Security Council to step back its nuclear escalation, “because we are not looking to the total annihilation of a country, namely North Korea, but as I said, we have many options to do so.”

Earlier, President Trump denounced North Korea as a hostile “rogue nation,” while also lashing out at China and South Korea, which he says have done too little to restrain the Pyongyang regime. The Trump administration also said it was drawing up new steps to further cut off North Korea’s economy in the wake of the latest nuclear escalation, which is shaping up as the most consequential national-security challenge of Mr. Trump’s young presidency.

Mr. Trump attended St. John’s Church near the White House on Sunday morning to mark a National Day of Prayer for victims of Tropical Storm Harvey. When he left the church, a reporter asked, “Mr. President, will you attack North Korea?” He responded, “We’ll see.”

North Korea’s acceleration of both its nuclear and missile programs has created the biggest foreign-policy crisis in Mr. Trump’s first seven months in office. It comes as he is also handing an unfolding national crisis in Texas due to catastrophic flooding from Tropical Storm Harvey.

Last week, Mr. Trump said that “all options were on the table” when it came to dealing with North Korea. That statement followed North Korea’s launch of a missile over Japan on Tuesday. The White House has refused to elaborate on Mr. Trump’s thinking, but his ambassador to the United Nations, Nikki Haley, said later that day that “something serious has to happen.”

The U.S. previously made clear military action was an option, but sees it carrying massive risks. An overt attack on North Korea—whether to target its facilities or military—could ignite a war that could kill millions of people on the Korean Peninsula. Mr. Mattis has warned that a military solution would be “tragic on an unbelievable scale.”

Mr. Trump’s comments in recent months on North Korea have been conciliatory at times. In a speech on Aug. 23 in Phoenix, President Trump said North Korea’s leader, Kim Jong Un, was starting to show respect to the U.S. and that “maybe something positive can come about.”


But in Twitter posts Sunday morning, Mr. Trump had harsh words for North Korea, saying its “words and actions continue to be very hostile and dangerous” to the U.S. He then targeted two countries he has been leaning on to pressure the Pyongyang regime, saying North Korea’s actions were an “embarrassment” to China and criticizing South Korea for not taking a firmer line with its northern neighbor.

“South Korea is finding, as I have told them, that their talk of appeasement with North Korea will not work,” Mr. Trump posted on Twitter. “They only understand one thing!”

Later, Mr. Trump tweeted that the U.S. “is considering, in addition to other options, stopping all trade with any country doing business with North Korea.”

Treasury Secretary Steven Mnuchin said he has spoken to the president about further isolating North Korea economically.

“It is clear that this behavior is completely unacceptable,” said Mr. Mnuchin on Fox News Sunday. “We’ve already started with sanctions… but I am going to draft a sanctions package to send to the president for his strong consideration that anybody that wants to do trade or business with them would be prevented from doing trade or business with us.”

North Korea’s main trading partner is China, and it has trade ties with other nations including Russia and India as well.

South Korea’s national security adviser, Chung Eui-yong, speaking by phone with Lt. Gen. H.R. McMaster, his counterpart at the White House, said that Moon Jae-in, the South Korean president, had called for the “strongest punitive measures” against Pyongyang. That includes diplomatic measures and a new United Nations Security Council resolution to “completely isolate North Korea.”

Complicating matters, Mr. Trump’s criticism of South Korea comes as Mr. Trump has expressed interested privately about ending the Korea Free Trade Agreement, which his national security advisers have warned him against, according to people familiar with the deliberations.

In early August, the U.S. successfully pushed the Council to adopt tougher economic sanctions on North Korea with China and Russia’s endorsement. But diplomats say that sanctions are a long-term strategy that takes a while to have impact. Shorter strategies range from military action to cutting diplomatic.

South Korea’s presidential Blue House responded to Mr. Trump’s tweets ​in a statement Sunday, saying that it was on board with Mr. Trump’s attempts to apply “maximum sanctions and pressure.”

It added that, during meetings in June and July, both Washington and Seoul had agreed that the purpose of the pressure was to try to bring Pyongyang to the negotiating table, and added that because Korea had experienced war, it was determined to seek denuclearization of the Korean peninsula through peaceful means.

Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee, said in a statement: “We stand ready to work with the administration to support a comprehensive strategy that not only places an emphasis on deterrence but also empowers our allies and partners in the region, who must do far more to confront this threat.”

Other lawmakers expressed some concerns about Mr. Trump’s approach. Sen. Jeff Flake (R., Ariz.), who has been a regular critic of Mr. Trump and also sits on the foreign-relations committee, said on CNN that while the U.S. has failed to slow Pyongyang’s nuclear advances, “harsh rhetoric” won’t help.

“We want somebody who is measured and sober and consistent and conservative in this regard,” said Mr. Flake of the president. “But he has a good team around him and I have confidence in them.”

Rep. Adam Schiff (D., Calif.), the top Democrat on the House Intelligence Committee, criticized Mr. Trump’s remarks targeting South Korea and said the U.S. needed to be working hand-in-hand with its allies. “That’s the only prospect for a peaceful path to this,” Mr. Schiff said. “So why we would want to show divisions with South Korea right now makes no sense at all.”

A State Department spokeswoman said Secretary of State Rex Tillerson spoke with South Korea’s foreign minister, Kang Kyung-wha, on Sunday and is making calls to other officials in the region.

North Korea described the underground explosion as a “perfect success in the test of a hydrogen bomb for an ICBM.” Just hours earlier, Mr. Kim had showed off what he described as a hydrogen bomb capable of being mounted on an intercontinental ballistic missile.

The nuclear test was estimated to have a yield of as high as 100 kilotons—about 10 times the power of the North’s previous test and roughly five times that of the atomic bomb that the U.S. dropped on Nagasaki, Japan, in 1945, according to Kim Young-woo, a South Korean lawmaker who is chairman of the legislature’s defense committee and received a briefing from military authorities.

In Washington, officials said they haven’t confirmed the nuclear test involved a thermonuclear device, although they don’t question the blast was larger than past tests.

“We have nothing to cause us to doubt that this was a test of an advanced nuclear device,” a U.S. intelligence official said.

RELATED

North Korea Hails Test of Hydrogen Bomb for ICBM a ‘Perfect Success’
North Korean Hydrogen-Bomb Explosion Tests Ties With China
Electromagnetic Pulse: North Korea’s Latest Threat Against U.S.
North Korea’s March to Nuclear Prowess
American officials also continue to voice skepticism that North Korea has mastered the ability to mount a warhead to a missile and that it has overcome the challenges of atmospheric re-entry that an intercontinental missile would have to withstand. Technical analysis on the detonation is expected to take time before U.S. agencies are able to issue a definitive statement.

The U.N. Security Council will hold an open emergency meeting on North Korea on Monday morning at the request of U.S., U.K., France, Japan and South Korea.

The North Korean nuclear test, coupled with country’s recent missile launches, stands to heighten the stakes of a gathering of world leaders in New York later this month for the annual U.N. General Assembly meeting, where world leaders will take the podium one after another to address the global body. President Donald Trump is expected to address world leaders Sept. 19,

The General Assembly meeting will provide the first opportunity since North Korea’s recent missile and nuclear bomb tests for the U.S. to meet face-to-face with the heads of allies Japan and South Korea. In addition to Mr. Trump’s highly anticipated speech, Mr. Tillerson and U.S. Ambassador Nikki Haley will be holding a series of bilateral talks with counterparts on a range of issues and diplomats say North Korea will be on the agenda.

North Korea will be represented by a top official, according to a preliminary list of speakers, but no interaction is expected between North Korean and American diplomats. Mr. Kim isn’t expected to attend.

The U.S. and its European allies at the Security Council have called for all member states to increase economic and diplomatic pressure on North Korea and better enforce the existing sanctions on Pyongyang. The Security Council in August unanimously approved new punitive measures.

Ms. Haley told the Council last week during an earlier emergency meeting on North Korea that the U.S. would act alone if the Council and the U.N. failed to prevent North Korea’s repeated provocations.

U.N. Secretary General Antonio Guterres condemned North Korea’s nuclear test in a statement issued on Sunday, calling it “another serious breach of the DPRK’s international obligations” and said he has been in personal contact with all relevant parties.

“The DPRK is the only country that continues to break the norm against nuclear test explosions,” Mr. Guterres said.

WSJ : Secretive Apple Tries to Open Up On Artificial Intelligence

Secretive Apple Tries to Open Up On Artificial Intelligence
Tech giant launches a blog, participates in conferences as it seeks to draw attention to its AI efforts

The battle for artificial-intelligence expertise is forcing Apple Inc. AAPL 0.03% to grapple with its famous penchant for secrecy, as tech companies seek to woo talent in a discipline known for its openness.

The technology giant this year has been trying to draw attention—but only so much—to its efforts to develop artificial intelligence, or AI, a term that generally describes software that enables computers to learn and improve functions on their own.

Apple launched a public blog in July to talk about its work, for example, and has allowed its researchers to speak at several conferences on artificial intelligence, including a TED Talk in April by Tom Gruber, co-creator of Apple’s Siri voice assistant, that was posted on YouTube last month.

Talking up transparency is unusual for a company whose chief executive, Tim Cook, once joked that it is more secretive than the Central Intelligence Agency.

The shift is driven by AI’s growing importance in areas like self-driving cars and voice assistants such as Siri. Rivals including Alphabet Inc., Microsoft Corp. and Facebook Inc. have been racing for years to gather talent in the field—largely by recruiting Ph.D. students and professors from university computer-science programs.


Those academics say they want to join companies but still publish regularly, present research and discuss their work.

“We come from a community where we share ideas and get credit for it and a lot of us would be very unhappy to give that up,” said Noah Goodman, a Stanford University professor of computer science. He works with a research division of Uber Technologies Inc. where he enjoys those perks.

Indeed many big tech companies have embraced academia’s relative transparency. They have aggressively recruited top researchers over the years such as Yann LeCun of New York University, who joined Facebook in 2013, and Geoffrey Hinton of the University of Toronto, who joined Alphabet’s Google unit in 2013. The companies together also have churned out hundreds of research papers over the past several years.

Apple was slow to follow, AI analysts and leading researchers say. And even since its public embrace of greater transparency, it has published a fraction of its competitors’ research, and its scientists have avoided speaking about Apple-related research at conferences.


To date, the company has published portions of four peer-reviewed research papers on its blog, the Apple Machine Learning Journal. The three posts published this year are attributed to the Siri team and don’t name any individual researchers the way academic papers commonly do.

At a San Francisco conference in March on using AI in autonomous vehicles, Apple research scientist Charlie Tang gave a presentation on robotics—but the photo he showed was from Google. He didn’t specifically mention any of Apple’s work.

“We want to open communication with the [artificial intelligence] community,” Mr. Tang said in an interview afterward before directing questions about that strategy to Apple executives.

Most Apple revenue comes from products like the iPhone or iPad, which are held in strict secrecy before their launch to protect innovations, and “overcoming that [culture] is difficult,” said Jack Clark, who heads strategy at OpenAI, a nonprofit, artificial-intelligence research group. He added that Apple’s blog was a positive step for the company.

An Apple spokesman declined to comment on Mr. Clark’s remarks.

Though guarded about products, Apple is a longstanding member of industry standards groups like the World Wide Web Consortium and has contributed to open-source projects over the years.

Competitive concerns are one reason companies might want to be careful about discussing AI work. But Dr. Goodman of Stanford said companies generally don’t need to worry about losing their competitive edge because the algorithms published in papers only work with proprietary data and remain essentially locked.

Apple’s continued restraint has stoked skepticism about its pledged transparency and doubts about its ability to recruit researchers. Tom Austin, an analyst in AI at research firm Gartner Inc., said Apple would struggle to “succeed with a strategy that’s bottled up.”

Apple in October named Carnegie Mellon University professor Ruslan Salakhutdinov as its director of AI research. He joined Carlos Guestrin, a University of Washington professor whose company Apple acquired in August 2016.

Dr. Salakhutdinov announced at an artificial-intelligence conference in December that Apple intended to be more open and would start publishing. Cornell University Library published that month Apple’s first research paper since Dr. Salakhutdinov’s arrival on improving graphic recognition.

In January, Apple joined Facebook, Microsoft and others as a member of the Partnership on AI, a group committed to developing best practices for research.

In an interview earlier this year, Dr. Salakhutdinov said Apple would publish more, but declined to say how much. “You can have quantity, but producing high quality research is very important,” he said.

Microsoft Research, Google and Facebook AI Research each have published more than 100 papers on artificial intelligence topics since January.

Dr. Goodman of Stanford said that contrast has made joining Apple feel “like a one-way move into industry whereas the AI labs like Google and Facebook feel more permeable.”

Though Apple’s public research has been limited, Manuela Veloso, a computer science professor at Carnegie Mellon, advises her students to consider jobs that offer the opportunity to influence consumer products—an area where Apple has an advantage.

“If you do this research at Apple, it’s their prerogative to have their [intellectual property],” Dr. Veloso said.

Reuters - Texas governor says Harvey damage could climb to $180 billion

Texas governor says Harvey damage could climb to $180 billion

HOUSTON (Reuters) - Texas Governor Greg Abbott on Sunday estimated damage from Hurricane Harvey at $150 billion to $180 billion, calling it more costly than epic hurricanes Katrina or Sandy and fueling a debate over how to pay for the disaster.

Harvey, which first came ashore on Aug. 25 as the most powerful hurricane to hit Texas in 50 years, has killed an estimated 47 people, displaced more than 1 million and damaged nearly 200,000 homes in a path of destruction stretching for more than 300 miles (480 kms).

Abbott, who is advocating for U.S. government aid for his state’s recovery, said the damage would exceed that of Katrina, the storm that devastated New Orleans and surrounding areas in 2005, and Sandy, which overwhelmed New York city and the U.S. Northeast in 2012.

“Katrina caused if I recall more than $120 billion but when you look at the number of homes and business affected by this I think this will cost well over $120 billion, probably $150 to $180 billion,” Abbott told Fox News, adding, “this is far larger than Hurricane Sandy.”

The administration of U.S. President Donald Trump has asked Congress for an initial $7.85 billion for recovery efforts, which Abbott called a “down payment.”

Even that amount could be delayed unless Congress quickly increases the government’s debt limit, U.S. Treasury Secretary Steven Mnuchin said on Sunday. The United States is on track to hit its mandated debt limit by the end of the month unless Congress increases it.

“Without raising the debt limit, I am not comfortable that we will get money to Texas this month to rebuild,” Mnuchin told Fox News.

Beyond the immediate funding, any massive aid package faces budget pressures at a time when Trump is advocating for tax reform or tax cuts, leading some on Capitol Hill to suggest aid may be released in a series of smaller appropriations.

The head of the U.S. Federal Emergency Management Agency (FEMA) called federal aid a “ray of hope” but said state and local officials also needed to do their part.

“They can’t depend only on federal emergency management,” FEMA Administrator Brook Long told CBS News, declining to offer a figure for how much money the White House would eventually ask from Congress.

ROAD TO RECOVERY

Houston was still struggling to recover on Sunday, when the city forced the evacuation of thousands of people on the western side of town who were affected by the release of floodwater that had built up in a reservoir.

The city cut off power to homes on Sunday morning to encourage evacuation of those who had been reluctant to leave their homes.

About 37,000 refugees stayed overnight in 270 shelters in Texas plus another 2,000 in seven Louisiana shelters, the highest number reported so far by the American Red Cross.

Some 84,700 homes and businesses were without power on Sunday, down from a peak of around 300,000, according to the region’s major electric companies.

Many areas of Texas were still battling floodwater from swollen rivers that was expected to remain for a week or more. In Beaumont, about 85 miles (140 km) east of Houston, officials were trying to repair a flood-damaged pumping station that caused the city of about 120,000 people to lose drinking water for days.

The storm knocked offline about one-fourth of U.S. oil refinery capacity, much of which is clustered along the Gulf Coast. The disruptions boosted gasoline prices to a two-year high ahead of the long Labor Day holiday weekend.

But Houston Mayor Sylvester Turner said his city was making progress on several fronts, resuming city services and helping get people into housing and out of emergency shelters.

“This is a can-do city. We’re not going to engage in a pity party,” Turner told CBS News.

Trump visited Houston on Saturday to meet evacuees and rescue workers, an opportunity to show an empathetic side after

some criticized him for staying clear of the disaster zone during a previous visit on Tuesday. Trump had said he did not want to hamper rescue efforts.

Trump and his wife Melania marked a national day of prayer for hurricane victims on Sunday by attending church services at St Johns Episcopal Church near the White House.

>>> What to look at this Week End - 2nd & 3rd of Sept. 2017

Weekly Performance
Dow +0.80% S&P +1.37% Nasdaq +2.71% Russell +2.62% Mexico -0.57% Brazil +1.20% EuroStoxx +0.16% FTSE +0.42% CAC +0.37% Dax -0.21% Ibex -0.19% MIB +0.52% SMI +0.40% Nikkei +1.23% Hang Seng +0.38% CSI +0.92% Shanghai +1.07% Shenzen +2.42%
Stock markets moved higher this week in continued thin, late summer trading conditions. Investors once again quickly looked past the concerning escalation of hostility by the North Korean regime, and catastrophic floods in the Houston area brought about by the historic rains of Hurricane Harvey. A narrative emerged that politicians in Washington would be more likely to come together and pass legislation in order to support Texas in its hour of need, rather than bicker over raising the debt ceiling when they return to work next week. Wednesday, the President kicked off what is expected to be an all-out press to get major tax reform signed into law by the end of the year at a address in Missouri. By Friday reports circulated that Trump was going to request $5.9B in Harvey aid while also pulling back on a threat of a forced government shutdown over border wall funding. Major US indices rose back to within striking distance of all time highs, lead by the NASDAQ, while the VIX fell 10% to sit just above 10 once again. For the week the S&P rose 1.4%, the Dow added 0.8% and the NASDAQ gained 2.7%.

Macro :
- May Set to Agree on $65 Billion Brexit Bill, Sunday Times Says
- EU’s Vestager Says State Aid Rules Shouldn’t Hinder Innovation
- Padoan Says Italy Improving Debt Mgmt as It Plans for End of QE
- Sweden Proposes Welfare Profit Cap, Excludes Health Care: SVT

Keep an eye on :
- ABN NA : ABN Amro Group, Grifols to Join S&P Europe 350
- AB1 GY : Air Berlin Is Said to Pay 10% Interest for Bridge Loan: BamS
- ALPH SW : Alpiq Sees CHF2.2b Swiss Hydro Power Market Deficit By 2021: SaW
- AKE FP : Arkema Says Fire Seen at Texas Plant Soon After 5pm
- BAYN GY : Bayer, Monsanto May Need to Resolve Any Serious Concerns: EU
- BCP PL : BCP Says Requested Legal Assessment Won’t Halt Novo Banco Sale
- BOL FP : Bollore First Half Revenue EU7.1b
- CLN VX : White Tale Wants Clariant to Sell Plastics & Coatings Unit: SZ
- FB US : An Instagram hack hit millions of accounts, and victims’ phone numbers are now for sale
- FCA IM : Fiat CEO Says There Is No Big Deal on His Table: Marchionne
- FCA IM : Fiat Chrysler to Spin Off Car-Part Unit as No Big Deal on Table
- GL FP : Galeries Lafayette to Buy 100% of La Redoute by 2021: JDD
- GVNV NA : GrandVision Will Boost Its Stake in Visilab to 60% From 30%
- GRF SM : ABN Amro Group, Grifols to Join S&P Europe 350
- IMG LN : Rise of 82% in licensing revenue bodes well for upcoming sale - FT
- LUPE SS : Lundin Mining Could Buy Mining Company of Significant Size: DI
- NETS DC : Nets Is Said to Start Exclusive Talks for Takeover: Reuters
- PACD US : NYSE said the company is below compliance with its continued listing standards; to be delisted if unable to resume compliance within 6-months
- UG FP : PSA’s Opel Unit Said to Lose EU4m Each Workday: Automobilwoche
- SAN FP : Sanofi Gets Tentative FDA Approval of Admelog
- SPD LN : Sports Direct investors to fight share buybacks which would increase founder Mike Ashley’s stake
- TIT IM : Telecom Italia to Name New CEO Within Weeks: Recchi to Corriere
- TEVA IT : -2.75% in TLV
- TUI GY : TUI Seeking Acquisitions as Divestments Fill War Chest: FAZ
- VIV FP : Fininvest, Mediaset Seek EU3B Legal Damages From Vivendi: Sole