Month: November 2021

After making a promise on Twitter, Tesla CEO Elon Musk has sold about 900,000 shares of the electric car maker’s stock, netting over $1.1 billion that will go toward paying tax obligations for stock options. 

The sales, disclosed in two regulatory filings late Wednesday, will cover tax obligations for stock options granted to Musk in September. He exercised options to buy just over 2.1 million shares for $6.24 each. The company’s stock closed Wednesday at $1,067.95 per share.  

The transactions were “automatically effected” as part of a trading plan adopted on Sept. 14 to sell options that expire next year, according to forms filed with the U.S. Securities and Exchange Commission. That was nearly two months before he floated the idea of the sale on Twitter. 

After the transactions, Musk still owns about 170 million Tesla shares. 

Musk was Tesla’s largest shareholder as of June, owning about 17% of the company, according to data provider FactSet. He’s the wealthiest person in the world, according to Forbes, with a net worth of around $282 billion, most of it in Tesla stock. 

Last weekend, Musk said he would sell 10% of his holdings in the company, worth more than $20 billion, based on the results of a poll he conducted on Twitter. The sale tweets caused a sell off of the stock Monday and Tuesday, but it recovered some on Wednesday. The shares were up 2.6% to $1,096 in extended trading Wednesday, and they have risen more than 50% this year. 

Wedbush Analyst Daniel Ives said it appears Musk will start selling shares as the year ends. “The question will be for investors if he sells his full 10% ownership stake over the coming months or is it done piece-by-piece during 2022,” Ives wrote in a note to investors. 

Ives calculated that Musk has about $10 billion in taxes coming due on stock options that vest next summer. 

The sometimes abrasive and unpredictable Musk said he proposed selling the stock as some Democrats have been pushing for billionaires to pay taxes when the price of the stocks they hold goes up, even if they don’t sell any shares. However, the wording on unrealized gains, also called a “billionaires tax,” was removed from President Joe Biden’s budget, which is still being negotiated.  

“Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” he tweeted Saturday afternoon. “Do you support this?” 

Tesla does not pay Musk a cash salary, but has received huge stock options. “I only have stock, thus the only way for me to pay taxes personally is to sell stock,” Musk tweeted. 

Tesla Inc. is based in Palo Alto, California, although Musk has announced it will move its headquarters to Texas. 
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The United States and China surprised the COP26 climate summit in Glasgow on Wednesday with a joint declaration to take action to limit global warming over the next decade.

The declaration came as delegates entered the final hours of negotiations to agree on a final text at the conference that will outline how the world will limit global warming to less than 1.5 degrees Celsius above pre-industrial levels.

China and the United States are the world’s two biggest polluters, and scientists say their future actions are critical in the fight against climate change. The absence of Chinese leader Xi Jinping from the summit last week was strongly criticized by U.S. President Joe Biden.

U.S. climate envoy John Kerry told reporters in Glasgow on Wednesday that the joint declaration builds on statements made by both countries in April.

“We also expressed a shared desire for success at this COP on mitigation, adaptation, support and, frankly, all of the key issues which will result in the world raising ambition and being able to address this crisis. Now, with this announcement, we’ve arrived at a new step, a road map for our present and future collaboration on this issue,” Kerry said at a press conference.

“The United States and China have no shortage of differences, but on climate, cooperation is the only way to get this job done. This is not a discretionary thing, frankly. This is science. It’s math and physics that dictate the road that we have to travel,” Kerry added.

China’s chief climate negotiator, Xie Zhenhua, echoed those sentiments.

“Climate change is a challenge, a common challenge, faced by humanity,” Xie told reporters. “It bears on the well-being of future generations. Now, climate change is becoming increasingly urgent and severe, making it a future challenge into an existential crisis. In the area of climate change, there is more agreement between China and the U.S. than divergence, making it an area with huge potential for our cooperation. We are two days away from the end of the Glasgow COP, so we hope that this joint declaration can make a China-U.S. contribution to the success of COP26.”

Among the joint pledges were cooperation on controlling methane emissions, tackling illegal deforestation, enhancing renewable energy generation and speeding up financial support for poorer nations. But the declaration did not include many specific dates or targets.

Cautious welcome

After the joint declaration, U.N. Secretary-General Antonio Guterres tweeted, “I welcome today’s agreement between China and the USA to work together to take more ambitious #ClimateAction in this decade. Tackling the climate crisis requires international cooperation and solidarity, and this is an important step in the right direction.”

Climate activists offered a cautious welcome to the declaration.

“This announcement comes at a critical moment at COP26 and offers new hope that with the support and backing of two of the world’s most critical voices, we may be able to limit climate change to 1.5 degrees,” Genevieve Maricle, director of U.S. climate policy action at the World Wildlife Fund, wrote in an email to VOA. “But we must also be clear-eyed about what is still required if the two countries are to deliver the emission reductions necessary in the next nine years. 1.5C-alignment will require a whole-of-economy response.”

Momentum

The joint declaration has given new momentum to the negotiations as delegates try to agree on a final text, officially known as the “cover decision,” by the end of the conference on Friday. The text details how parties to the COP26 summit will limit global warming to no more than 1.5 degrees C in Earth’s average temperatures above pre-industrial levels — the target agreed on at the Paris climate summit in 2015.

The first draft text of the decision, published Wednesday, urges countries to “revisit and strengthen” their targets on cutting emissions before the end of 2022. It says rich countries should go beyond the pledge to pay poorer nations $100 billion a year. The draft text calls on governments to phase out coal and fossil fuels, but with no fixed dates.

The COP26 host, British Prime Minister Boris Johnson, urged delegates to “grasp the opportunity.”

“We’re now finding things are tough, but that doesn’t mean it’s impossible. It doesn’t mean that we can’t keep 1.5 alive,” Johnson said. “I think with sufficient energy and commitment, and with leaders from around the world now ringing up their negotiators and asking them to move in the ways that they know they can move and should move, I still think we can achieve it. But I’m not going to pretend to you that it is by any means a done deal.”

Jennifer Morgan, executive director of Greenpeace International, told VOA that the language of the draft text was weak.

“This is not a plan to address the climate emergency. It’s a bit like a pledge and a wink and a hope,” Morgan said. “Countries need to commit to actually come back to increase and strengthen their targets and their actions. That’s clearly one thing. The text does include that coal will be phased out and fossil fuel subsidies will be phased out. I think optimally, you would have dates by which time they would be phased out, but it’s important that they’re there.”

Climate finance

Delegates are also negotiating how much — and quickly — richer nations should pay poorer countries to help them deal with the impact of climate change and de-carbonize their economies. While richer countries are responsible for the majority of greenhouse gas emissions, developing countries tend to suffer greater impacts of climate change. A pledge first made in 2009 by richer nations to pay $100 billion annually — and renewed at the Paris climate summit in 2015 — has still not been fulfilled.

“It’s very frustrating to see countries that have spent six years conspicuously patting themselves on the back for signing that promissory note in Paris, quietly edging towards default now that vulnerable nations and future generations are demanding payment here now in Glasgow,” Johnson said Wednesday.
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A coalition of 19 countries including Britain and the United States on Wednesday agreed to create zero emissions shipping trade routes between ports to speed up the decarbonization of the global maritime industry, officials involved said. 

Shipping, which transports about 90% of world trade, accounts for nearly 3% of the world’s CO2 emissions.

U.N. shipping agency the International Maritime Organization (IMO) has said it aims to reduce overall greenhouse gas emissions from ships by 50% from 2008 levels by 2050. The goal is not aligned with the 2015 Paris Agreement on climate change and the sector is under pressure to be more ambitious.

The signatory countries involved in the ‘Clydebank Declaration’, which was launched at the COP26 climate summit in Glasgow, agreed to support the establishment of at least six green corridors by 2025, which will require developing supplies of zero emissions fuels, the infrastructure required for decarbonization and regulatory frameworks.

“It is our aspiration to see many more corridors in operation by 2030,” their mission statement said.

Britain’s maritime minister Robert Courts said countries alone would not be able to decarbonize shipping routes without the commitment of private and non-governmental sectors.

“The UK and indeed many of the countries, companies and NGOs here today believe zero emissions international shipping is possible by 2050,” Courts said at the launch.

U.S. Transportation Secretary Pete Buttigieg said the declaration was “a big step forward for green shipping corridors and collective action”.

Buttigieg added that the United States was “pressing for the IMO to adopt a goal of zero emissions for international shipping by 2050”.

The IMO’s Secretary General Kitack Lim said on Saturday “we must upgrade our ambition, keeping up with the latest developments in the global community”.

Industry needs regulatory help

Jan Dieleman, president of ocean transportation with agri business giant Cargill, one of the world’s biggest ship charterers, said “the real challenge is to turn any statements (at COP26) into something meaningful”.

“The majority of the industry has accepted we need to decarbonize,” he told Reuters.

“Industry leadership needs to be followed up with global regulation and policies to ensure industry-wide transformation. We will not succeed without global regulation.”

Christian Ingerslev, chief executive of Maersk Tankers, which has over 210 oil products tankers under commercial management, said it had spent over $30 million over the last three years to bring their carbon emissions down through digital solutions.

“We need governments to not only back the regulatory push but also to help create the zero emissions fuels at scale,” he said.

“The only way this is going to work is to set a market-based measure through a carbon tax.”

Other signatory countries are Australia, Belgium, Canada, Chile, Costa Rica, Denmark, Fiji, Finland, France, Germany, Republic of Ireland, Japan, Marshall Islands, Netherlands, New Zealand, Norway and Sweden.
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White House officials are on a development-minded world tour and have been scouting several corners of the globe to identify about 50 projects that focus on topics such as climate, health, digital technology and gender equality. 

Daleep Singh, the deputy national security adviser for international economics, recently wrapped up a tour of West Africa, visiting Ghana and Senegal as part of President Joe Biden’s Build Back Better World initiative, known as B3W. 

Biden unveiled the plan during the June G-7 summit, with the goal of creating “a values-driven, high-standard and transparent infrastructure partnership” to help finance projects in developing countries.

“This was the first B3W listening session in Africa, demonstrating President Biden’s commitment to strengthening our ties in the region and to narrowing the global gaps in physical, digital, and human infrastructure that have been widened by the COVID-19 pandemic,” National Security Council spokesperson Emily Horne said in a statement this week. 

These listening sessions in Africa followed a similar trip Singh led in October, when he took an interagency delegation to Colombia, Ecuador and Panama. 

He will turn next to Southeast Asia, a senior administration official said. So far, the official said, the delegation has identified some 50 projects in those five countries alone. The official did not give a cost estimate but described some of the projects.

“For example, in climate, we had quite a few discussions about how we could help finance renewable energy projects in solar and hydro and wind,” the senior administration official said. “Also projects that could help reduce the rate of deforestation, which creates a carbon sink and helps these countries meet their emission reduction targets.”

Many analysts see this initiative as a counter to Beijing’s multitrillion-dollar Belt and Road initiative. That international development program has financed infrastructure projects in Asia, Africa and Latin America and has made inroads even in Europe. 

‘Democracies’ only 

And whereas China takes a firm stance against weighing in on recipient nation politics — making Chinese investments especially appealing for countries with poor human rights records and high levels of corruption — Biden’s initiative draws a different line. 

The president “asked us to build this product with our democratic values front and center,” the administration official said. “So transparency, collaboration with the host countries, inclusivity, so that the benefits are spread across all segments, and also sustainability, with no strings attached.”

But critics say this may be a weakness. 

“It will be difficult to create a sentiment in international markets that the BBBW is a viable, commercially credible alternative approach to financially supporting projects if it is viewed that only nations which the USG (U.S. government) defines as ‘democratic’ will be eligible to participate in it,” said Marc Mealy, senior vice president of policy at the US-ASEAN Business Council. 

Dalibor Rohac, a research fellow at the American Enterprise Institute, also said that showing preference to democracies could raise problems. 

“The emphasis on democracy might be good and valuable in its own right,” he told VOA. “But it might not be the best framing if you are trying to build relationships and build some sort of broader coalitions to counter China’s influence in say, Southeast Asia, where, by necessity, you need to sort of work with countries that fall short of Western liberal democratic standards.”

It’s all in the details 

But, analysts say, what mostly hurts the marketing of the American push is its lack of detail. 

When asked if he had any criticisms of the plan, Mealy simply replied: “Can’t criticize a plan which has not been made public.”

“It’s one thing to say, ‘Oh, the world needs $40 trillion in infrastructure, and we’re going to help out,’ ” Rohac said. “Like how that maps exactly into specific funding decisions, specific loan decisions, you know, which regions and which countries, which sectors — it’s all a bit vague. And most importantly, is this just a gimmick or are there going to be real resources put behind it by countries?” 

A formal B3W launch event is planned for early next year and will include details about the projects.
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U.S.-based drugmaker Pfizer is seeking to make a booster shot of its COVID-19 vaccine available to all adult Americans 18 years of age and older.

Pfizer filed the request Tuesday with the U.S. Food and Drug Administration, citing a new clinical trial involving 10,000 volunteers who received a third injection of the two-dose vaccine, which it developed in collaboration with German-based BioNTech. According to Pfizer, the preliminary results show the third shot boosted a person’s protection against the virus to about 95%.

The request comes just weeks after the FDA and the U.S. Centers for Disease Control and Prevention authorized a third shot of the Pfizer vaccine for Americans 65 and older, adults at a high risk of severe illness, plus front-line workers such as teachers, health care workers and others whose jobs place them at greater risk of contracting COVID-19. The Pfizer booster shot is available for people regardless of whether they initially received the two-shot Moderna vaccine or the single-dose Johnson & Johnson vaccine, which offers less protection than either the Pfizer or Moderna vaccines.

Astra-Zeneca’s separate unit

British-Swedish drugmaker Astra-Zeneca announced Tuesday that it is creating a separate unit entirely devoted to developing and manufacturing COVID-19 vaccines and treatments. The company’s two-shot vaccine, developed in collaboration with the University of Oxford, had a troubled rollout due to manufacturing delays and confirmation of a link between the vaccine and rare, possibly fatal blood clots, prompting some governments to limit its use among certain age groups.

But the AstraZeneca vaccine is cheaper and easier to use because it does not need to be stored at ultra-cold temperatures than either the Pfizer or Moderna vaccines. The vaccine makes up the bulk of the vaccine supply of COVAX, the international vaccine sharing mechanism for the world’s poorest nations supported by the United Nations and the health organizations Gavi and CEPI.

Meanwhile, the current surge of new COVID-19 infections in Germany prompted Dr. Christian Drosten, the head of virology at Berlin’s Charite Hospital, to issue a warning Wednesday that 100,000 people could die if the vaccination rate does not pick up quickly, and that Germany faces “a very tough winter with new shutdown measures.”

Drosten’s warning coincided with an announcement by the country’s Robert Koch Institute of 39,676 new COVID-19 infections across Germany, a new one-day record. Charite Hospital announced Tuesday that it is postponing all non-critical operations due to the growing rate of new COVID-19 patients.

In a related matter, the country’s vaccine advisory committee Wednesday recommended that people 30 years of age and under be vaccinated only with the Pfizer vaccine. The committee cited a higher risk of younger people developing a rare side effect of myocarditis, an inflammation of the heart, from the Moderna vaccine than the Pfizer version.

NFL vaccination

In the U.S. sports world, quarterback Aaron Rodgers of the National Football League’s Green Bay Packers franchise acknowledged “misleading” the public about his vaccination status shortly before the start of the current season.

Rodgers has been under intense criticism since last week’s revelation that he had tested positive for COVID-19, contradicting his earlier claims back in August that he had been “immunized.” Rodgers told radio sports host Pat McAfee after his diagnosis that he had not taken any of the approved vaccines because of concerns about adverse side effects, and instead relied on homeopathic treatments as an alternative.

In a follow-up interview with McAfee Tuesday, Rodgers said he took “full responsibility” for his comments back in August, but also said that he continued to stand by his concerns about the vaccines. He also said he expects to be cleared to rejoin the Packers in time for Sunday’s game against the Seattle Seahawks.

The NFL has fined Rodgers and teammate Allen Lazard $14,650 each for violating the league’s COVID-19 protocols for unvaccinated players when they attended a Halloween party despite their status. The Packers were also fined $300,000 for failing to discipline the players and for not reporting the violations to NFL officials.

Some information for this report came from the Associated Press and Reuters.
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Facebook Inc. said on Tuesday it plans to remove detailed ad-targeting options that refer to “sensitive” topics, such as ads based on interactions with content around race, health, religious practices, political beliefs or sexual orientation. 

The company, which recently changed its name to Meta and which makes the vast majority of its revenue through digital advertising, has been under intense scrutiny over its ad-targeting abilities and rules in recent years. 

In a blog post, Facebook gave examples of targeting categories that would no longer be allowed on its platforms, such as “Lung cancer awareness,” “World Diabetes Day,” “LGBT culture,” “Jewish holidays” or political beliefs and social issues. It said the change would take place starting Jan. 19, 2022. 

The company has been hit with criticisms around its micro-targeting capabilities, including over abuses such as advertisers discriminating against or targeting vulnerable groups. In 2019, it agreed to make changes to its ads platform as part of a settlement over housing discrimination issues. 

“We’ve heard concerns from experts that targeting options like these could be used in ways that lead to negative experiences for people in underrepresented groups,” Graham Mudd, the company’s vice president of product marketing for ads, said in the post. 

Its tailored ad abilities are used by wide-ranging advertisers, including political campaigns and social issue groups, as well as businesses. 

“The decision to remove these Detailed Targeting options was not easy, and we know this change may negatively impact some businesses and organizations,” Mudd said in the post, adding that some advertising partners were concerned they would not be able to use these ads to generate positive social change. 

Advertisers on Facebook’s platforms can still target audiences by location, use their own customer lists, reach custom audiences who have engaged with their content and send ads to people with similar characteristics to those users. 

The move marks a key shift for the company’s approach to social and political advertising, though it is not expected to have major financial implications. CEO Mark Zuckerberg estimated in 2019, for example, that politicians’ ads would make up less than 0.5% of Facebook’s 2020 revenue. 

The issue of political advertising on social media platforms, including whether the content of politicians’ ads should be fact-checked, provoked much debate among the public, lawmakers and companies around the U.S. presidential election. 

Twitter in 2019 banned political ads altogether, but Facebook had previously said it would not limit how political advertisers reached potential voters. 

Facebook, which now allows users to opt to see fewer ads related to topics like politics and alcohol, said on Tuesday it would early next year give people more controls over the ads they see, including ones about gambling and weight loss. 

 
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