After releasing a redacted version of special counsel Robert Mueller’s report on the Russia investigation, U.S. Attorney General William Barr takes center stage once again this week with two scheduled appearances before legislative committees on Capitol Hill. VOA’s Michael Bowman reports, Democrats are demanding the full, un-redacted Mueller report and are determined to continue investigating President Donald Trump, while Republicans are eager to turn the page and focus on other matters.
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Category Archives: News
Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media
AP FACT CHECK: Trump’s Follies on Immigration, Health Care
President Donald Trump stretched the truth on various fronts at his Wisconsin rally and in weekend remarks, asserting that an immigration plan to send migrants illegally in the country to sanctuary cities had begun when it hadn’t.
He also claimed credit for jobs he didn’t create, exaggerated his record on health care and spread untruths about the Russia investigation.
A look at the rhetoric and the reality:
IMMIGRATION
TRUMP: “Last month alone, 100,000 illegal immigrants arrived in our borders, placing a massive strain on communities and schools and hospitals and public resources, like nobody’s ever seen before. Now we’re sending many of them to sanctuary cities. Thank you very much. … I’m proud to tell you that was my sick idea.” — Green Bay, Wisconsin, rally Saturday.
THE FACTS: There’s no evidence that the Trump administration has begun to send the migrants to sanctuary cities en masse . He proposed the idea in part to punish Democratic congressional foes for inaction on the border, but Homeland Security officials rejected the plan as unworkable.
Trump said this month he was “strongly considering” the proposal, hours after White House and Homeland Security officials had insisted the idea had been eschewed twice.
“Sanctuary cities” are places where local authorities do not cooperate with immigration officials, denying information or resources that would help them round up for deportation people living in the country illegally.
There were no indications federal officials were taking any steps to move forward with the idea or considered the president’s words anything more than bluster. His words to the Wisconsin crowd, suggesting his “sick idea” was in motion, appeared to be no more than that.
People with knowledge of the discussions say White House staff discussed the idea with the Department of Homeland Security in November and February but it was judged too costly and a misuse of money. The people were not authorized to speak publicly and spoke on condition of anonymity.
Sanctuary cities include New York City and San Francisco, home city of House Speaker Nancy Pelosi.
TRUMP on U.S. population: “We need people to come in.” — rally.
TRUMP: “We have companies pouring in. The problem is we need workers.” — Fox Business interview Sunday.
THE FACTS: His position is a flip from earlier this month, when he declared the U.S. to be “full” in light of the overwhelmed southern border.
His April 7 tweet threatened to shut down the border unless Mexico apprehended all immigrants who crossed illegally. But it turns out the U.S. is only “full” in terms of the people Trump doesn’t want.
Immigrants as a whole make up a greater percentage of the total U.S. population than they did back in 1970, having grown from less than 5 percent of the population to more than 13 percent now. In 2030, it’s projected that immigrants will become the primary driver for U.S. population growth, overtaking U.S. births.
HEALTH CARE
TRUMP: “The Republicans are always going to protect pre-existing conditions.” — Wisconsin rally.
THE FACTS: He’s not protecting health coverage for patients with pre-existing medical conditions. The Trump administration instead is pressing in court for full repeal of the Affordable Care Act — including provisions that protect people with pre-existing conditions from health insurance discrimination.
Trump and other Republicans say they’ll have a plan to preserve those safeguards, but the White House has provided no details.
Former President Barack Obama’s health care law requires insurers to take all applicants, regardless of medical history, and patients with health problems pay the same standard premiums as healthy ones. Bills supported in 2017 by Trump and congressional Republicans to repeal the law could undermine protections by pushing up costs for people with pre-existing conditions.
A recent poll by the Associated Press-NORC Center for Public Affairs Research found that Democrats enjoy a 17 percentage point advantage over Republicans in Americans’ assessments of whom they trust more to handle health care, 40% to 23%. That compares with a public more evenly divided over which party would better handle several other major areas of national policy, including the economy, immigration and foreign affairs.
Watch: US Lawmakers Await Barr Testimony on Mueller Report
RUSSIA INVESTIGATION
TRUMP, calling special counsel Robert Mueller’s probe a “witchhunt”: It’s “the greatest political hoax in American history.” — Wisconsin rally.
THE FACTS: A two-year investigation that produced guilty pleas, convictions and criminal charges against Russian intelligence officers and others with ties to the Kremlin, as well as Trump associates, is demonstrably not a hoax.
All told, Mueller charged 34 people, including the president’s former campaign chairman, Paul Manafort; his first national security adviser, Michael Flynn; and three Russian companies. Twenty-five Russians were indicted on charges related to election interference, accused either of hacking Democratic email accounts during the campaign or of orchestrating a social media campaign that spread disinformation on the internet.
Five Trump aides pleaded guilty and agreed to cooperate with Mueller and a sixth, longtime confidant Roger Stone, is awaiting trial on charges that he lied to Congress and engaged in witness tampering.
Mueller’s report concluded that Russian interference in the 2016 presidential election was “sweeping and systematic.” Ultimately, it cleared Trump of criminal conspiracy with the Russians but did not render judgment on whether Trump obstructed justice, saying his investigators found evidence on both sides.
ECONOMY
TRUMP: “Since the election, we have created more than 6 million new jobs. Nobody would have believed that. … 600,000 manufacturing jobs.” — Wisconsin rally.
THE FACTS: The record is not all his, and it’s not remarkable.
The economy created about 6 million jobs in the roughly two years before the election, then again in the roughly two years after.
By counting since the election, he’s taking credit for jobs created in the last months of the Obama administration. The country has added 453,000 manufacturing jobs, not 600,000, since Trump took office.
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Twitter Terror: Arrests Prompt Concern Over Online Extremism
A few months after he turned 17 — and more than two years before he was arrested — Vincent Vetromile recast himself as an online revolutionary.
Offline, in this suburb of Rochester, New York, Vetromile was finishing requirements for promotion to Eagle Scout in a troop that met at a local church. He enrolled at Monroe Community College, taking classes to become a heating and air conditioning technician. On weekends, he spent hours in the driveway with his father, a Navy veteran, working on cars.
On social media, though, the teenager spoke in world-worn tones about the need to “reclaim our nation at any cost.” Eventually he subbed out the grinning selfie in his Twitter profile, replacing it with the image of a colonial militiaman shouldering an AR-15 rifle. And he traded his name for a handle: “Standing on the Edge.”
That edge became apparent in Vetromile’s posts, including many interactions over the last two years with accounts that praised the Confederacy, warned of looming gun confiscation and declared Muslims to be a threat.
In 2016, he sent the first of more than 70 replies to tweets from a fiery account with 140,000 followers, run by a man billing himself as Donald Trump’s biggest Canadian supporter. The final exchange came late last year.
“Islamic Take Over Has Begun: Muslim No-Go Zones Are Springing Up Across America. Lock and load America!” the Canadian tweeted on December 12, with a video and a map highlighting nine states with Muslim enclaves.
“The places listed are too vague,” Vetromile replied. “If there were specific locations like ‘north of X street in the town of Y, in the state of Z’ we could go there and do something about it.”
Weeks later, police arrested Vetromile and three friends, charging them with plotting to attack a Muslim settlement in rural New York. And with extremism on the rise across the U.S., this town of neatly kept Cape Cods confronted difficult questions about ideology and young people — and technology’s role in bringing them together.
The reality of the plot Vetromile and his friends are charged with hatching is, in some ways, both less and more than what was feared when they were arrested in January.
Prosecutors say there is no indication that the four — Vetromile, 19; Brian Colaneri, 20; Andrew Crysel, 18; and a 16-year-old The Associated Press isn’t naming because of his age — had set an imminent or specific date for an attack. Reports they had an arsenal of 23 guns are misleading; the weapons belonged to parents or other relatives.
Prosecutors allege the four discussed using those guns, along with explosive devices investigators say were made by the 16-year-old, in an attack on the community of Islamberg.
Residents of the settlement in Delaware County, New York — mostly African-American Muslims who relocated from Brooklyn in the 1980s — have been harassed for years by right-wing activists who have called it a terrorist training camp. A Tennessee man, Robert Doggart , was convicted in 2017 of plotting to burn down Islamberg’s mosque and other buildings.
But there are few clues so far to explain how four with little experience beyond their high school years might have come up with the idea to attack the community. All have pleaded not guilty, and several defense attorneys, back in court Friday, are arguing there was no plan to actually carry out any attack, chalking it up to talk among buddies. Lawyers for the four did not return calls, and parents or other relatives declined interviews.
“I don’t know where the exposure came from, if they were exposed to it from other kids at school, through social media,” said Matthew Schwartz, the Monroe County assistant district attorney prosecuting the case. “I have no idea if their parents subscribe to any of these ideologies.”
Well beyond upstate New York, the spread of extremist ideology online has sparked growing concern. Google and Facebook executives went before the House Judiciary Committee this month to answer questions about their platforms’ role in feeding hate crime and white nationalism. Twitter announced new rules last fall prohibiting the use of “dehumanizing language” that risks “normalizing serious violence.”
But experts said the problem goes beyond language, pointing to algorithms used by search engines and social media platforms to prioritize content and spotlight likeminded accounts.
“Once you indicate an inclination, the machine learns,” said Jessie Daniels, a professor of sociology at New York’s Hunter College who studies the online contagion of alt-right ideology. “That’s exactly what’s happening on all these platforms … and it just sends some people down a terrible rabbit hole.”
She and others point to Dylann Roof, who in 2015 murdered nine worshippers at a historic black church in Charleston, South Carolina. In writings found afterward, Roof recalled how his interest in the shooting of black teenager Trayvon Martin had prompted a Google search for the term “black on white crime.” The first site the search engine pointed him to was run by a racist group promoting the idea that such crime is common, and as he learned more, Roof wrote, that eventually drove his decision to attack the congregation.
In the Rochester-area case, electronic messages between two of those arrested, seen by the AP, along with papers filed in the case suggest doubts divided the group.
“I honestly see him being a terrorist,” one of those arrested, Crysel, told his friend Colaneri in an exchange last December on Discord, a messaging platform popular with gamers that has also gained notoriety for its embrace by some followers of the alt-right.
“He also has a very odd obsession with pipe bombs,” Colaneri replied. “Like it’s borderline creepy.”
It is not clear from the message fragment seen which of the others they were referencing. What is clear, though, is the long thread of frustration in Vetromile’s online posts — and the way those posts link him to an enduring conspiracy theory.
A few years ago, Vetromile’s posts on Twitter and Instagram touched on subjects like video games and English class.
He made the honor roll as an 11th-grader but sometime thereafter was suspended and never returned, according to former classmates and others. The school district, citing federal law on student records, declined to provide details.
Ron Gerth, who lives across the street from the family, recalled Vetromile as a boy roaming the neighborhood with a friend, pitching residents on a leaf-raking service: “Just a normal, everyday kid wanting to make some money, and he figured a way to do it.” More recently, Gerth said, Vetromile seemed shy and withdrawn, never uttering more than a word or two if greeted on the street.
Vetromile and suspect Andrew Crysel earned the rank of Eagle in Boy Scout Troop 240, where the 16-year-old was also a member. None ever warranted concern, said Steve Tyler, an adult leader.
“Every kid’s going to have their own sort of geekiness,” Tyler said, “but nothing that would ever be considered a trigger or a warning sign that would make us feel unsafe.”
Crysel and the fourth suspect, Colaneri, have been diagnosed with Asperger’s syndrome, a milder form of autism, their families have said. Friends described Colaneri as socially awkward and largely disinterested in politics. “He asked, if we’re going to build a wall around the Gulf of Mexico, how are people going to go to the beach?” said Rachael Lee, the aunt of Colaneri’s girlfriend.
Vetromile attended community college with Colaneri before dropping out in 2017. By then, he was fully engaged in online conversations about immigrants living in the U.S. illegally, gun rights and Trump. Over time, his statements became increasingly militant.
“We need a revolution now!” he tweeted in January, replying to a thread warning of a coming “war” over gun ownership.
Vetromile directed some of his strongest statements at Muslims. Tweets from the Canadian account, belonging to one Mike Allen, seemed to push that button.
In July 2017, Allen tweeted “Somali Muslims take over Tennessee town and force absolute HELL on terrified Christians.” Vetromile replied: ”@realDonaldTrump please do something about this!”
A few months later, Allen tweeted: “Czech politicians vote to let citizens carry guns, shoot Muslim terrorists on sight.” Vetromile’s response: “We need this here!”
Allen’s posts netted hundreds of replies a day, and there’s no sign he read Vetromile’s responses. But others did, including the young man’s reply to the December post about Muslim “no-go zones.”
That tweet included a video interview with Martin Mawyer, whose Christian Action Network made a 2009 documentary alleging that Islamberg and other settlements were terrorist training camps. Mawyer linked the settlements, which follow the teachings of a controversial Pakistani cleric, to a group called Jamaat al-Fuqra that drew scrutiny from law enforcement in the 1980s and 1990s. In 1993, Colorado prosecutors won convictions of four al-Fuqra members in a racketeering case that included charges of fraud, arson and murder.
Police and analysts have repeatedly said Islamberg does not threaten violence. Nevertheless, the allegations of Mawyer’s group continue to circulate widely online and in conservative media.
Replying to questions by email, Mawyer said his organization has used only legal means to try to shut down the operator of the settlements.
“Vigilante violence is always the wrong way to solve social or personal problems,” he said. “Christian Action Network had no role, whatsoever, in inciting any plots.”
Online, though, Vetromile reacted with consternation to the video of Mawyer: “But this video just says ‘upstate NY and California’ and that’s too big of an area to search for terrorists,” he wrote.
Other followers replied with suggestions. “Doesn’t the video state Red House, Virginia as the place?” one asked. Virginia was too far, Vetromile replied, particularly since the map with the tweet showed an enclave in his own state.
When another follower offered a suggestion, Vetromile signed off: “Eh worth a look. Thanks.”
The exchange ended without a word from the Canadian account, whose tweet started it.
Three months before the December exchange on Twitter, the four suspects started using a Discord channel dubbed ”#leaders-only” to discuss weapons and how they would use them in an attack, prosecutors allege. Vetromile set up the channel, one of the defense attorneys contends, but prosecutors say they don’t consider any one of the four a leader.
In November, the conversation expanded to a second channel: ”#militia-soldiers-wanted.”
At some point last fall the 16-year-old made a grenade — “on a whim to satisfy his own curiosity,” his lawyer said in a court filing that claims the teen never told the other suspects. That filing also contends the boy told Vetromile that forming a militia was “stupid.”
But other court records contradict those assertions. Another teen, who is not among the accused, told prosecutors that the 16-year-old showed him what looked like a pipe bomb last fall and then said that Vetromile had asked for prototypes. “Let me show you what Vinnie gave me,” the young suspect allegedly said during another conversation, before leaving the room and returning with black explosive powder.
In January, the 16-year-old was in the school cafeteria when he showed a photo to a classmate of one of his fellow suspects, wearing some kind of tactical vest. He made a comment like, “He looks like the next school shooter, doesn’t he?” according to Greece Police Chief Patrick Phelan. The other student reported the incident, and questioning by police led to the arrests and charges of conspiracy to commit terrorism.
The allegations have jarred a region where political differences are the norm. Rochester, roughly half white and half black and other minorities, votes heavily Democratic. Neighboring Greece, which is 87 percent white, leans conservative. Town officials went to the Supreme Court to win a 2014 ruling allowing them to start public meetings with a chaplain’s prayer.
The arrests dismayed Bob Lonsberry, a conservative talk radio host in Rochester, who said he checked Twitter to confirm Vetromile didn’t follow his feed. But looking at the accounts Vetromile did follow convinced him that politics on social media had crossed a dangerous line.
“The people up here, even the hillbillies like me, we would go down with our guns and stand outside the front gate of Islamberg to protect them,” Lonsberry said. “It’s an aberration. But … aberrations, like a cancer, pop up for a reason.”
Online, it can be hard to know what is true and who is real. Mike Allen, though, is no bot.
“He seems addicted to getting followers,” said Allen’s adult son, Chris, when told about the arrest of one of the thousands attuned to his father’s Twitter feed. Allen himself called back a few days later, leaving a brief message with no return number.
But a few weeks ago, Allen welcomed in a reporter who knocked on the door of his home, located less than an hour from the Peace Bridge linking upstate New York to Ontario, Canada.
“I really don’t believe in regulation of the free marketplace of ideas,” said Allen, a retired real estate executive, explaining his approach to social media. “If somebody wants to put bulls— on Facebook or Twitter, it’s no worse than me selling a bad hamburger, you know what I mean? Buyer beware.”
Sinking back in a white leather armchair, Allen, 69, talked about his longtime passion for politics. After a liver transplant stole much of his stamina a few years ago, he filled downtime by tweeting about subjects like interest rates.
When Trump announced his candidacy for president in 2015, in a speech memorable for labeling many Mexican immigrants as criminals, Allen said he was determined to help get the billionaire elected. He began posting voraciously, usually finding material on conservative blogs and Facebook feeds and crafting posts to stir reaction.
Soon his account was gaining up to 4,000 followers a week.
Allen said he had hoped to monetize his feed somehow. But suspicions that Twitter “shadow-banning” was capping gains in followers made him consider closing the account. That was before he was shown some of his tweets and the replies they drew from Vetromile — and told the 19-year-old was among the suspects charged with plotting to attack Islamberg.
“And they got caught? Good,” Allen said. “We’re not supposed to go around shooting people we don’t like. That’s why we have video games.”
Allen’s own likes and dislikes are complicated. He said he strongly opposes taking in refugees for humanitarian reasons, arguing only immigrants with needed skills be admitted. He also recounted befriending a Muslim engineer in Pakistan through a physics blog and urging him to move to Canada.
Shown one of his tweets from last year — claiming Czech officials had urged people to shoot Muslims — Allen shook his head.
“That’s not a good tweet,” he said quietly. “It’s inciting.”
Allen said he rarely read replies to his posts — and never noticed Vetromile’s.
“If I’d have seen anybody talking violence, I would have banned them,” he said.
He turned to his wife, Kim, preparing dinner across the kitchen counter. Maybe he should stop tweeting, he told her. But couldn’t he continue until Trump was reelected?
“We have a saying, ‘Oh, it must be true, I read it on the internet,’” Allen said, before showing his visitor out. “The internet is phony. It’s not there. Only kids live in it and old guys, you know what I mean? People with time on their hands.”
The next day, Allen shut down his account, and the long narrative he spun all but vanished.
Twitter Terror: Arrests Prompt Concern Over Online Extremism
A few months after he turned 17 — and more than two years before he was arrested — Vincent Vetromile recast himself as an online revolutionary.
Offline, in this suburb of Rochester, New York, Vetromile was finishing requirements for promotion to Eagle Scout in a troop that met at a local church. He enrolled at Monroe Community College, taking classes to become a heating and air conditioning technician. On weekends, he spent hours in the driveway with his father, a Navy veteran, working on cars.
On social media, though, the teenager spoke in world-worn tones about the need to “reclaim our nation at any cost.” Eventually he subbed out the grinning selfie in his Twitter profile, replacing it with the image of a colonial militiaman shouldering an AR-15 rifle. And he traded his name for a handle: “Standing on the Edge.”
That edge became apparent in Vetromile’s posts, including many interactions over the last two years with accounts that praised the Confederacy, warned of looming gun confiscation and declared Muslims to be a threat.
In 2016, he sent the first of more than 70 replies to tweets from a fiery account with 140,000 followers, run by a man billing himself as Donald Trump’s biggest Canadian supporter. The final exchange came late last year.
“Islamic Take Over Has Begun: Muslim No-Go Zones Are Springing Up Across America. Lock and load America!” the Canadian tweeted on December 12, with a video and a map highlighting nine states with Muslim enclaves.
“The places listed are too vague,” Vetromile replied. “If there were specific locations like ‘north of X street in the town of Y, in the state of Z’ we could go there and do something about it.”
Weeks later, police arrested Vetromile and three friends, charging them with plotting to attack a Muslim settlement in rural New York. And with extremism on the rise across the U.S., this town of neatly kept Cape Cods confronted difficult questions about ideology and young people — and technology’s role in bringing them together.
The reality of the plot Vetromile and his friends are charged with hatching is, in some ways, both less and more than what was feared when they were arrested in January.
Prosecutors say there is no indication that the four — Vetromile, 19; Brian Colaneri, 20; Andrew Crysel, 18; and a 16-year-old The Associated Press isn’t naming because of his age — had set an imminent or specific date for an attack. Reports they had an arsenal of 23 guns are misleading; the weapons belonged to parents or other relatives.
Prosecutors allege the four discussed using those guns, along with explosive devices investigators say were made by the 16-year-old, in an attack on the community of Islamberg.
Residents of the settlement in Delaware County, New York — mostly African-American Muslims who relocated from Brooklyn in the 1980s — have been harassed for years by right-wing activists who have called it a terrorist training camp. A Tennessee man, Robert Doggart , was convicted in 2017 of plotting to burn down Islamberg’s mosque and other buildings.
But there are few clues so far to explain how four with little experience beyond their high school years might have come up with the idea to attack the community. All have pleaded not guilty, and several defense attorneys, back in court Friday, are arguing there was no plan to actually carry out any attack, chalking it up to talk among buddies. Lawyers for the four did not return calls, and parents or other relatives declined interviews.
“I don’t know where the exposure came from, if they were exposed to it from other kids at school, through social media,” said Matthew Schwartz, the Monroe County assistant district attorney prosecuting the case. “I have no idea if their parents subscribe to any of these ideologies.”
Well beyond upstate New York, the spread of extremist ideology online has sparked growing concern. Google and Facebook executives went before the House Judiciary Committee this month to answer questions about their platforms’ role in feeding hate crime and white nationalism. Twitter announced new rules last fall prohibiting the use of “dehumanizing language” that risks “normalizing serious violence.”
But experts said the problem goes beyond language, pointing to algorithms used by search engines and social media platforms to prioritize content and spotlight likeminded accounts.
“Once you indicate an inclination, the machine learns,” said Jessie Daniels, a professor of sociology at New York’s Hunter College who studies the online contagion of alt-right ideology. “That’s exactly what’s happening on all these platforms … and it just sends some people down a terrible rabbit hole.”
She and others point to Dylann Roof, who in 2015 murdered nine worshippers at a historic black church in Charleston, South Carolina. In writings found afterward, Roof recalled how his interest in the shooting of black teenager Trayvon Martin had prompted a Google search for the term “black on white crime.” The first site the search engine pointed him to was run by a racist group promoting the idea that such crime is common, and as he learned more, Roof wrote, that eventually drove his decision to attack the congregation.
In the Rochester-area case, electronic messages between two of those arrested, seen by the AP, along with papers filed in the case suggest doubts divided the group.
“I honestly see him being a terrorist,” one of those arrested, Crysel, told his friend Colaneri in an exchange last December on Discord, a messaging platform popular with gamers that has also gained notoriety for its embrace by some followers of the alt-right.
“He also has a very odd obsession with pipe bombs,” Colaneri replied. “Like it’s borderline creepy.”
It is not clear from the message fragment seen which of the others they were referencing. What is clear, though, is the long thread of frustration in Vetromile’s online posts — and the way those posts link him to an enduring conspiracy theory.
A few years ago, Vetromile’s posts on Twitter and Instagram touched on subjects like video games and English class.
He made the honor roll as an 11th-grader but sometime thereafter was suspended and never returned, according to former classmates and others. The school district, citing federal law on student records, declined to provide details.
Ron Gerth, who lives across the street from the family, recalled Vetromile as a boy roaming the neighborhood with a friend, pitching residents on a leaf-raking service: “Just a normal, everyday kid wanting to make some money, and he figured a way to do it.” More recently, Gerth said, Vetromile seemed shy and withdrawn, never uttering more than a word or two if greeted on the street.
Vetromile and suspect Andrew Crysel earned the rank of Eagle in Boy Scout Troop 240, where the 16-year-old was also a member. None ever warranted concern, said Steve Tyler, an adult leader.
“Every kid’s going to have their own sort of geekiness,” Tyler said, “but nothing that would ever be considered a trigger or a warning sign that would make us feel unsafe.”
Crysel and the fourth suspect, Colaneri, have been diagnosed with Asperger’s syndrome, a milder form of autism, their families have said. Friends described Colaneri as socially awkward and largely disinterested in politics. “He asked, if we’re going to build a wall around the Gulf of Mexico, how are people going to go to the beach?” said Rachael Lee, the aunt of Colaneri’s girlfriend.
Vetromile attended community college with Colaneri before dropping out in 2017. By then, he was fully engaged in online conversations about immigrants living in the U.S. illegally, gun rights and Trump. Over time, his statements became increasingly militant.
“We need a revolution now!” he tweeted in January, replying to a thread warning of a coming “war” over gun ownership.
Vetromile directed some of his strongest statements at Muslims. Tweets from the Canadian account, belonging to one Mike Allen, seemed to push that button.
In July 2017, Allen tweeted “Somali Muslims take over Tennessee town and force absolute HELL on terrified Christians.” Vetromile replied: ”@realDonaldTrump please do something about this!”
A few months later, Allen tweeted: “Czech politicians vote to let citizens carry guns, shoot Muslim terrorists on sight.” Vetromile’s response: “We need this here!”
Allen’s posts netted hundreds of replies a day, and there’s no sign he read Vetromile’s responses. But others did, including the young man’s reply to the December post about Muslim “no-go zones.”
That tweet included a video interview with Martin Mawyer, whose Christian Action Network made a 2009 documentary alleging that Islamberg and other settlements were terrorist training camps. Mawyer linked the settlements, which follow the teachings of a controversial Pakistani cleric, to a group called Jamaat al-Fuqra that drew scrutiny from law enforcement in the 1980s and 1990s. In 1993, Colorado prosecutors won convictions of four al-Fuqra members in a racketeering case that included charges of fraud, arson and murder.
Police and analysts have repeatedly said Islamberg does not threaten violence. Nevertheless, the allegations of Mawyer’s group continue to circulate widely online and in conservative media.
Replying to questions by email, Mawyer said his organization has used only legal means to try to shut down the operator of the settlements.
“Vigilante violence is always the wrong way to solve social or personal problems,” he said. “Christian Action Network had no role, whatsoever, in inciting any plots.”
Online, though, Vetromile reacted with consternation to the video of Mawyer: “But this video just says ‘upstate NY and California’ and that’s too big of an area to search for terrorists,” he wrote.
Other followers replied with suggestions. “Doesn’t the video state Red House, Virginia as the place?” one asked. Virginia was too far, Vetromile replied, particularly since the map with the tweet showed an enclave in his own state.
When another follower offered a suggestion, Vetromile signed off: “Eh worth a look. Thanks.”
The exchange ended without a word from the Canadian account, whose tweet started it.
Three months before the December exchange on Twitter, the four suspects started using a Discord channel dubbed ”#leaders-only” to discuss weapons and how they would use them in an attack, prosecutors allege. Vetromile set up the channel, one of the defense attorneys contends, but prosecutors say they don’t consider any one of the four a leader.
In November, the conversation expanded to a second channel: ”#militia-soldiers-wanted.”
At some point last fall the 16-year-old made a grenade — “on a whim to satisfy his own curiosity,” his lawyer said in a court filing that claims the teen never told the other suspects. That filing also contends the boy told Vetromile that forming a militia was “stupid.”
But other court records contradict those assertions. Another teen, who is not among the accused, told prosecutors that the 16-year-old showed him what looked like a pipe bomb last fall and then said that Vetromile had asked for prototypes. “Let me show you what Vinnie gave me,” the young suspect allegedly said during another conversation, before leaving the room and returning with black explosive powder.
In January, the 16-year-old was in the school cafeteria when he showed a photo to a classmate of one of his fellow suspects, wearing some kind of tactical vest. He made a comment like, “He looks like the next school shooter, doesn’t he?” according to Greece Police Chief Patrick Phelan. The other student reported the incident, and questioning by police led to the arrests and charges of conspiracy to commit terrorism.
The allegations have jarred a region where political differences are the norm. Rochester, roughly half white and half black and other minorities, votes heavily Democratic. Neighboring Greece, which is 87 percent white, leans conservative. Town officials went to the Supreme Court to win a 2014 ruling allowing them to start public meetings with a chaplain’s prayer.
The arrests dismayed Bob Lonsberry, a conservative talk radio host in Rochester, who said he checked Twitter to confirm Vetromile didn’t follow his feed. But looking at the accounts Vetromile did follow convinced him that politics on social media had crossed a dangerous line.
“The people up here, even the hillbillies like me, we would go down with our guns and stand outside the front gate of Islamberg to protect them,” Lonsberry said. “It’s an aberration. But … aberrations, like a cancer, pop up for a reason.”
Online, it can be hard to know what is true and who is real. Mike Allen, though, is no bot.
“He seems addicted to getting followers,” said Allen’s adult son, Chris, when told about the arrest of one of the thousands attuned to his father’s Twitter feed. Allen himself called back a few days later, leaving a brief message with no return number.
But a few weeks ago, Allen welcomed in a reporter who knocked on the door of his home, located less than an hour from the Peace Bridge linking upstate New York to Ontario, Canada.
“I really don’t believe in regulation of the free marketplace of ideas,” said Allen, a retired real estate executive, explaining his approach to social media. “If somebody wants to put bulls— on Facebook or Twitter, it’s no worse than me selling a bad hamburger, you know what I mean? Buyer beware.”
Sinking back in a white leather armchair, Allen, 69, talked about his longtime passion for politics. After a liver transplant stole much of his stamina a few years ago, he filled downtime by tweeting about subjects like interest rates.
When Trump announced his candidacy for president in 2015, in a speech memorable for labeling many Mexican immigrants as criminals, Allen said he was determined to help get the billionaire elected. He began posting voraciously, usually finding material on conservative blogs and Facebook feeds and crafting posts to stir reaction.
Soon his account was gaining up to 4,000 followers a week.
Allen said he had hoped to monetize his feed somehow. But suspicions that Twitter “shadow-banning” was capping gains in followers made him consider closing the account. That was before he was shown some of his tweets and the replies they drew from Vetromile — and told the 19-year-old was among the suspects charged with plotting to attack Islamberg.
“And they got caught? Good,” Allen said. “We’re not supposed to go around shooting people we don’t like. That’s why we have video games.”
Allen’s own likes and dislikes are complicated. He said he strongly opposes taking in refugees for humanitarian reasons, arguing only immigrants with needed skills be admitted. He also recounted befriending a Muslim engineer in Pakistan through a physics blog and urging him to move to Canada.
Shown one of his tweets from last year — claiming Czech officials had urged people to shoot Muslims — Allen shook his head.
“That’s not a good tweet,” he said quietly. “It’s inciting.”
Allen said he rarely read replies to his posts — and never noticed Vetromile’s.
“If I’d have seen anybody talking violence, I would have banned them,” he said.
He turned to his wife, Kim, preparing dinner across the kitchen counter. Maybe he should stop tweeting, he told her. But couldn’t he continue until Trump was reelected?
“We have a saying, ‘Oh, it must be true, I read it on the internet,’” Allen said, before showing his visitor out. “The internet is phony. It’s not there. Only kids live in it and old guys, you know what I mean? People with time on their hands.”
The next day, Allen shut down his account, and the long narrative he spun all but vanished.
Bolton: US Ignored $2 Million Bill from North Korea
The U.S. signed a document agreeing to pay North Korea $2 million for the medical care of American Otto Warmbier who had been detained by Pyongyang, U.S. national security adviser John Bolton said Sunday, but then ignored the bill and never paid it.
“It is very clear to me from my looking into it in the past few days that nobody was paid,” Bolton told Fox News Sunday. “That is clear.”
Bolton was confirming news accounts in recent days that North Korea demanded the money when it released Warmbier, a comatose college student, to U.S. authorities nearly two years ago so he could be returned to the United States. He died days later.
Warmbier was a University of Virginia student visiting North Korea when he was jailed in January 2016, sentenced to 15 years for trying to steal a propaganda banner from his hotel.
The mainland China travel company that arranged Warmbier’s trip, Young Pioneer Tours, specializes in “destinations your mother would rather you stay away from,” according to its website. It describes itself as “safe and fun.” Photos from the company’s website and Facebook page show selfies of happy, smiling, young Westerners in Pyongyang.
North Korean officials said Warmbier fell into a coma the night he was sentenced in March 2016, The Washington Post reported. Doctors have not identified the cause of his brain damage, and say they did not see evidence of him being beaten.
At their last meeting in Hanoi in February, President Donald Trump said he accepted North Korean leader Kim Jong Un’s claim not to have known what had happened to Warmbier in prison, despite the case being extraordinarily sensitive.
“I will take him at his word,” Trump said.
Following Warmbier’s sentencing, the North Koreans did not tell U.S. officials until June 2017 that he had been unconscious for 15 months. The Washington Post said news of Warmbier’s condition sparked a frantic effort to get him home. The effort was led by the State Department’s point man on North Korea at the time, Joseph Yun, who signed the agreement to pay the money.
Trump has sought to get Kim to agree to end North Korea’s nuclear weapons development program, but talks between the two leaders collapsed in Hanoi after Kim agreed at a summit in Singapore a year ago to move toward denuclearization. Bolton said Trump is willing to meet a third time with Kim.
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Tech Helping Make Big Impact on Local Government
Local governments often try to solve problems using old technology. A U.S. Senate bill aims to fund small tech teams to help state and municipal governments update and rebuild government systems. Deana Mitchell takes a look at the impact on one program that is serving the needy.
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Tech Helping Make Big Impact on Local Government
Local governments often try to solve problems using old technology. A U.S. Senate bill aims to fund small tech teams to help state and municipal governments update and rebuild government systems. Deana Mitchell takes a look at the impact on one program that is serving the needy.
…
Kenya Taps Into Technology to Attract Young People to Farms
Kenyan innovators are betting on digital technologies to attract young people to agriculture currently dominated by an aging population. With 98 percent mobile phone penetration, according to the latest data from the Communications Authority of Kenya, the cellphone is proving to be an important source of extension services in areas where such services are not available. Sarah Kimani reports for VOA from Kinoo, Kenya.
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More People Use Smartphone Apps to Find Flexible Gig Jobs
While many people have office jobs, working inside an office is not for everybody. And these days in the U.S. more people are turning to gig work — temporary jobs that allow them to work from home, hold multiple jobs and have flexible hours. More gig workers are now using smartphone apps to find jobs that set them free of office work. VOA’s Mykhailo Komadovsky spent time with one gig worker in Washington.
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Trump Presses Japan’s Abe to Build More Vehicles in US
U.S. President Donald Trump urged Japanese Prime Minister Shinzo Abe to have Japanese automakers produce more vehicles in the United States, according to a readout of their recent meeting provided Saturday by the U.S.
ambassador to Japan.
The two discussed recent public announcements by Japanese automakers, including Toyota Motor Corp.’s decision to invest more in U.S. plants.
“We talked about the need to see more movement in that direction, but I think the president feels very positive that we will see such movement because all the economics support that,” said Ambassador William Hagerty.
Trump has prodded Japanese automakers to add more jobs in the United States as the White House threatens to impose tariffs of up to 25 percent on imported vehicles, on the ground of national security.
Trump said Friday that it was possible that the United States and Japan could reach a new bilateral trade deal by the time he visits Tokyo in May, but he and Abe cited areas where they differ on trade.
“We want to ensure that the U.S. has trading terms with Japan that are no less favorable than any other nation,” Hagerty said in a phone call with reporters.
He added that Trump is planning to attend the summit of the Group of 20 industrialized nations set to take place in Osaka, Japan, in June.
Separately, Trump was optimistic trade talks with China would be successful, the ambassador said.
…
Trump Seeks to Swing Traditionally Democratic Jewish Vote
Shelley Berkley spent 14 years in Congress representing the western swing state of Nevada. The lifelong Democrat is worried about her party’s ability in next year’s presidential election to maintain the traditional support of her fellow Jews.
“Growing up, I didn’t know anybody that was Jewish who wasn’t a Democrat. The two went hand in hand. If you’re Jewish, you’re a Democrat. Things have changed dramatically,” according to Berkley.
The party’s rising left wing is less inclined to reflexively support Israel, while President Donald Trump has decisively aligned with Israel’s right-wing president, Benjamin Netanyahu.
“There’s a lot of folks like Congresswoman Berkeley increasingly concerned about the direction and tone the Democratic Party is taking as it relates to the Jewish community and Israel,” says Matthew Brooks, national executive director of the Republican Jewish Coalition.
Staunch democratic
Throughout most of the 20th century, Jews were staunch Democrats, traditionally allied with the labor movement and religiously coming out to vote in force.
As important, according to American University professor of history Alan Kraut, “is the influence that Jews wield as opinion leaders, journalists, contributors and activists – as a people basically who are never afraid to raise their voices one way or another.”
Pollster Mark Mellman contends data show that has not changed, with the Jewish community remaining “strongly Democratic to this day, and certainly anti-Trump, even though some are appreciative of some of the things that Trump has done vis-a-vis Israel.”
Both Berkley and Mellman say most Jewish voters detest Trump’s policies in general, as well as his behavior and lack of intellectual curiosity.
But Trump is trying hard to woo them, portraying the Democratic Party as anti-Israel and anti-Jewish.
“The reality is, the American Jewish community is not going to be voting for Donald Trump. … And for him to invest so much time, effort, energy, in trying to create a wedge between the American Jewish community and the Democratic Party isn’t really a very good use of his time,” says Mellman, who heads one of the most prominent Democratic marketing research and polling firms. But he acknowledges “there are some increasing doubts and concern.”
Berkley says her children remain strong Democrats but are concerned about whether they can continue to support their own party.
“Now that doesn’t mean they are embracing the Trump revolution. Hardly. But people like us, pro-Israel moderate Democrats, where do we go?” she asks.
At the RJC, Brooks is looking to lure those disaffected Democrats. He contends the rival party is overconfident about the Jewish vote.
“It’s going to be very hard for any of the Democratic candidates to have, like President Trump, an unvarnished pro-Israel agenda, because the grassroots in the base of the Democratic Party won’t allow it,” Brooks predicts.
Battleground states
“If we move 5% of the Jewish vote in Los Angeles or New York, it’s not going to make a difference,” Brooks says. “There’s no chance we’re winning New York state or California. So, our focus is very strategic and very targeted in the battleground states.”
At the forefront are Ohio and Florida, both with significant Jewish populations. Also seen in play: Arizona and Nevada out West, as well as Pennsylvania and Wisconsin in the Midwest.
“Since Trump has been in office, has he been able to attract and to peel away Jewish support from the Democratic Party? I believe the answer to that is yes,” says Brooks.
The head of the Republican Jewish Coalition says American Jews look not just at a candidate’s stance on Israel, but also at economic issues.
“I think that’s one of the reasons we’ve been able to make these incremental gains,” Brooks tells VOA.
Mellman says Brooks and other Republicans are overly optimistic “when you have a community that has consistently voted Democratic for many years. And right now, even after all these things, hates Donald Trump. Now, could that turn around in 17 months? It’s possible. But there’s never been that kind of wholesale turnaround in public opinion.”
Kraut sees the best opportunity for Republicans with “older Jewish voters, men and women, who lean toward Trump because of Israel. And because he does seem to them to fly in the face of what they regard as the left wing of the Democratic Party that’s taking shape” around congressional first-termers such as Alexandria Ocasio-Cortez and Ilhan Omar, according to Kraut.
“They don’t like these people. They don’t trust these people,” says Kraut of the older Jewish voters.
Berkley agrees.
“I’m apoplectic about my party’s response to the comments Omar and others have made,” she tells VOA. “Members of the Democratic caucus have made anti-Semitic statements that were no accident. They actually believe what they’re saying.”
Jewish populations
This sentiment likely will be more of a factor prior to the general election as Jews could have an outsized role in selecting the Democratic Party’s nominee.
While early voting states such as Iowa and New Hampshire have negligible Jewish populations, the big and solid Democrat states – New York and California – do.
Former Vice President Joe Biden is viewed by much of the Jewish bloc as stable and predictable with foreign policy, respected around the world, and representing their core social and moral values, according to Kraut.
“If I were a betting man, I would say that if Biden is the candidate of the Democratic Party, the Jews are going to flock to him” in the general election against Trump, Kraut says.
He sees Sen. Bernie Sanders of Vermont as struggling for Jewish votes, despite him being the only Jew running for president.
Some may find that ironic.
“It’s worse than ironic. It’s very unfortunate, actually,” laments Berkley, who says she opposes Sanders’ candidacy “because of his lack of support for Israel.”
Mellman says Sanders has stated he is “100% pro-Israel, that he believes Israel has every right to exist in peace and security without being subject to terrorism.”
Jewish leaders acknowledge Trump’s embrace of Israel may also be motivated by his desire to retain the support of Christian evangelicals (who believe that Israel must continue to exist as a harbinger for the return of Christ as the Messiah).
“Being good to Israel has many, many political advantages in the United States,” notes Kraut. “The Jewish vote alone isn’t going to put Trump over the top.”
Trump Seeks to Swing Traditionally Democratic Jewish Vote
Shelley Berkley spent 14 years in Congress representing the western swing state of Nevada. The lifelong Democrat is worried about her party’s ability in next year’s presidential election to maintain the traditional support of her fellow Jews.
“Growing up, I didn’t know anybody that was Jewish who wasn’t a Democrat. The two went hand in hand. If you’re Jewish, you’re a Democrat. Things have changed dramatically,” according to Berkley.
The party’s rising left wing is less inclined to reflexively support Israel, while President Donald Trump has decisively aligned with Israel’s right-wing president, Benjamin Netanyahu.
“There’s a lot of folks like Congresswoman Berkeley increasingly concerned about the direction and tone the Democratic Party is taking as it relates to the Jewish community and Israel,” says Matthew Brooks, national executive director of the Republican Jewish Coalition.
Staunch democratic
Throughout most of the 20th century, Jews were staunch Democrats, traditionally allied with the labor movement and religiously coming out to vote in force.
As important, according to American University professor of history Alan Kraut, “is the influence that Jews wield as opinion leaders, journalists, contributors and activists – as a people basically who are never afraid to raise their voices one way or another.”
Pollster Mark Mellman contends data show that has not changed, with the Jewish community remaining “strongly Democratic to this day, and certainly anti-Trump, even though some are appreciative of some of the things that Trump has done vis-a-vis Israel.”
Both Berkley and Mellman say most Jewish voters detest Trump’s policies in general, as well as his behavior and lack of intellectual curiosity.
But Trump is trying hard to woo them, portraying the Democratic Party as anti-Israel and anti-Jewish.
“The reality is, the American Jewish community is not going to be voting for Donald Trump. … And for him to invest so much time, effort, energy, in trying to create a wedge between the American Jewish community and the Democratic Party isn’t really a very good use of his time,” says Mellman, who heads one of the most prominent Democratic marketing research and polling firms. But he acknowledges “there are some increasing doubts and concern.”
Berkley says her children remain strong Democrats but are concerned about whether they can continue to support their own party.
“Now that doesn’t mean they are embracing the Trump revolution. Hardly. But people like us, pro-Israel moderate Democrats, where do we go?” she asks.
At the RJC, Brooks is looking to lure those disaffected Democrats. He contends the rival party is overconfident about the Jewish vote.
“It’s going to be very hard for any of the Democratic candidates to have, like President Trump, an unvarnished pro-Israel agenda, because the grassroots in the base of the Democratic Party won’t allow it,” Brooks predicts.
Battleground states
“If we move 5% of the Jewish vote in Los Angeles or New York, it’s not going to make a difference,” Brooks says. “There’s no chance we’re winning New York state or California. So, our focus is very strategic and very targeted in the battleground states.”
At the forefront are Ohio and Florida, both with significant Jewish populations. Also seen in play: Arizona and Nevada out West, as well as Pennsylvania and Wisconsin in the Midwest.
“Since Trump has been in office, has he been able to attract and to peel away Jewish support from the Democratic Party? I believe the answer to that is yes,” says Brooks.
The head of the Republican Jewish Coalition says American Jews look not just at a candidate’s stance on Israel, but also at economic issues.
“I think that’s one of the reasons we’ve been able to make these incremental gains,” Brooks tells VOA.
Mellman says Brooks and other Republicans are overly optimistic “when you have a community that has consistently voted Democratic for many years. And right now, even after all these things, hates Donald Trump. Now, could that turn around in 17 months? It’s possible. But there’s never been that kind of wholesale turnaround in public opinion.”
Kraut sees the best opportunity for Republicans with “older Jewish voters, men and women, who lean toward Trump because of Israel. And because he does seem to them to fly in the face of what they regard as the left wing of the Democratic Party that’s taking shape” around congressional first-termers such as Alexandria Ocasio-Cortez and Ilhan Omar, according to Kraut.
“They don’t like these people. They don’t trust these people,” says Kraut of the older Jewish voters.
Berkley agrees.
“I’m apoplectic about my party’s response to the comments Omar and others have made,” she tells VOA. “Members of the Democratic caucus have made anti-Semitic statements that were no accident. They actually believe what they’re saying.”
Jewish populations
This sentiment likely will be more of a factor prior to the general election as Jews could have an outsized role in selecting the Democratic Party’s nominee.
While early voting states such as Iowa and New Hampshire have negligible Jewish populations, the big and solid Democrat states – New York and California – do.
Former Vice President Joe Biden is viewed by much of the Jewish bloc as stable and predictable with foreign policy, respected around the world, and representing their core social and moral values, according to Kraut.
“If I were a betting man, I would say that if Biden is the candidate of the Democratic Party, the Jews are going to flock to him” in the general election against Trump, Kraut says.
He sees Sen. Bernie Sanders of Vermont as struggling for Jewish votes, despite him being the only Jew running for president.
Some may find that ironic.
“It’s worse than ironic. It’s very unfortunate, actually,” laments Berkley, who says she opposes Sanders’ candidacy “because of his lack of support for Israel.”
Mellman says Sanders has stated he is “100% pro-Israel, that he believes Israel has every right to exist in peace and security without being subject to terrorism.”
Jewish leaders acknowledge Trump’s embrace of Israel may also be motivated by his desire to retain the support of Christian evangelicals (who believe that Israel must continue to exist as a harbinger for the return of Christ as the Messiah).
“Being good to Israel has many, many political advantages in the United States,” notes Kraut. “The Jewish vote alone isn’t going to put Trump over the top.”
Student Scientists Helping to Monitor Air Quality
All too often what looks like haze is actually tiny particles in the air that are so small you can breathe them in, and they can be dangerous. Now a group of citizen scientists with help from the National Science Foundation is creating a network of sensors that could warn people when the air they breathe turns bad. VOA’s Kevin Enochs reports.
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Trump, Hannity Discuss Alleged Ukrainian Help for Clinton Campaign
U.S. President Donald Trump said on Fox News that Attorney General William Barr was reviewing allegations that Ukrainian agents provided Hillary Clinton’s presidential campaign with damaging information about Trump’s then-campaign chairman, Paul Manafort.
After calling the network Thursday night for a lengthy impromptu interview, Trump told host Sean Hannity that the allegations of collusion between Ukraine and Clinton’s campaign were “big and incredible.”
The 45-minute interview was the latest attempt by the president and Fox News to promote the narrative that Ukrainian agents tried to sway the 2016 presidential election in Clinton’s favor.
Hannity explored the issue on his show with a reporter from The Hill, a Washington publication, who interviewed Ukraine Prosecutor General Yuriy Lutsenko.
Lutsenko told Hill Television on March 17 that he would launch an investigation into alleged efforts by Ukrainians to meddle in the presidential election. Three days later, Trump, a regular viewer of Hannity’s show, tweeted, “As Russia Collusion fades, Ukrainian plot to help Clinton emerges.”
Lutsenko announced the probe after U.S. Ambassador to Ukraine Marie Yovanovitch criticized the country’s handling of corruption, citing a recent high court ruling to decriminalize illicit enrichment by public officials. Lutsenko said investigators would focus on so-called “black ledger” files that resulted in Manafort’s abrupt departure from Trump’s campaign.
Lutsenko’s probe was also prompted by a Ukrainian parliamentarian’s release of an audio recording that supposedly quotes a senior law enforcement official as saying his agency leaked Manafort’s financial records to help Clinton’s campaign.
Manafort, 70, was sentenced on March 13 to 7½ years in federal prison after being convicted in special counsel Robert Mueller’s investigation into Russian interference in the 2016 presidential election.
Manafort was convicted of conspiring to conceal tens of millions of dollars in payments for undisclosed lobbying for a Ukranian politician aligned with Russia. Manafort also conspired to influence witnesses and committed tax and bank fraud.
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Uber’s Stock Offering Terms Temper Expectations
Uber Technologies Inc., the world’s largest ride-hailing company, plans an initial public offering that values the company lower than the startup’s insiders had hoped, between $80.5 billion and $91.5 billion.
The valuation, outlined in a regulatory filing Friday, is less than the $120 billion that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in a private fundraising round in 2018.
This reflects the poor stock performance of its smaller rival Lyft Inc. following its IPO last month. Lyft shares ended trading Thursday down more than 20 percent from their IPO price, amid investor skepticism over its path to
profitability.
Lyft completed its IPO at a valuation of $24.3 billion, which corresponded to around 11 times its 2018 revenue. By comparison, the top end of Uber’s valuation target is around eight times revenue last year.
“We believe that recent price reductions for both Uber and Lyft may be indicative of investor hesitance to invest in highly capital-intensive, deeply unprofitable and untested business models at this late stage of the economic cycle,” PitchBook analyst Asad Hussain said.
In the filing, Uber set a target price range of $44 to $50 per share for its IPO. The company will sell 180 million shares in the offering to raise up to $9 billion, with a further 27 million sold by existing investors for as much as $1.35 billion.
Reuters reported this month that the combined value of Uber shares sold in the IPO would be around $10 billion.
The Uber IPO would rank as the largest in the United States since that of Chinese e-commerce giant Alibaba Group Holding Ltd. in 2014.
Road show
The updated public filing comes as Uber begins its 10-day investor road show, in which management will pitch Uber to public markets investors.
Uber executives kicked off the IPO road show in New York on Friday. They will host an investor presentation in London on Monday, before returning to the United States for visits to New York a second time, Boston, San Francisco and the Midwest.
Uber expects to price the IPO on May 9 and then begin trading on the New York Stock Exchange the following day, people familiar with the matter have said.
Of the stock being sold in the IPO by existing Uber investors, 6.86 million shares are from Uber co-founders Travis Kalanick and Garrett Camp, meaning the two men could jointly pocket $343 million if the IPO prices at the top end of its current range.
Uber will face a host of questions from investors, including when it will turn a profit, how it will navigate the transition to autonomous vehicles, and whether its business model can support higher driver costs from minimum wage rules.
Underscoring the company’s ability to generate revenue but also the scale of its losses, Uber reported in the filing a net loss attributable to the company for the first quarter of 2019 of around $1 billion on sales of roughly $3 billion.
“When it comes to Uber, we believe there are still questions over the current car-sharing model, the economics of which are not immediately or obviously attractive for sustainable, long-term investment,” Mark Hargraves, head of Framlington Global Equities, wrote in a note.
Uber also said PayPal had agreed to purchase $500 million of stock in a private placement at the price the IPO eventually settles at. The two companies also said they were extending an existing partnership to “explore future commercial payment collaborations.”
This is similar to when Comcast Corp.’s NBCUniversal invested $500 million in Snapchat owner Snap Inc., around the time of the latter’s IPO in 2017.
Conservative valuation
Two other IPOs this month, those of online scrapbook company Pinterest Inc. and video conferencing company Zoom Video Communications Inc., have performed much better than Lyft.
Uber, however, has chosen to still value itself conservatively. One advantage Uber will likely seek to emphasize to investors is that it is the largest player in many of the markets in which it does business, and the fact that it operates
around the world.
Analysts consider building scale crucial for Uber’s business model to become profitable.
Unlike Lyft, Uber also has a restaurant delivery business, Uber Eats, which generated $1.5 billion in revenue last year and competes with the likes of Grubhub Inc. and DoorDash.
During Uber’s IPO road show, Chief Executive Dara Khosrowshahi will be also tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.
Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.
The Uber IPO is being led by Morgan Stanley, Goldman Sachs & Co. and Bank of America Merrill Lynch.
…
Uber’s Stock Offering Terms Temper Expectations
Uber Technologies Inc., the world’s largest ride-hailing company, plans an initial public offering that values the company lower than the startup’s insiders had hoped, between $80.5 billion and $91.5 billion.
The valuation, outlined in a regulatory filing Friday, is less than the $120 billion that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in a private fundraising round in 2018.
This reflects the poor stock performance of its smaller rival Lyft Inc. following its IPO last month. Lyft shares ended trading Thursday down more than 20 percent from their IPO price, amid investor skepticism over its path to
profitability.
Lyft completed its IPO at a valuation of $24.3 billion, which corresponded to around 11 times its 2018 revenue. By comparison, the top end of Uber’s valuation target is around eight times revenue last year.
“We believe that recent price reductions for both Uber and Lyft may be indicative of investor hesitance to invest in highly capital-intensive, deeply unprofitable and untested business models at this late stage of the economic cycle,” PitchBook analyst Asad Hussain said.
In the filing, Uber set a target price range of $44 to $50 per share for its IPO. The company will sell 180 million shares in the offering to raise up to $9 billion, with a further 27 million sold by existing investors for as much as $1.35 billion.
Reuters reported this month that the combined value of Uber shares sold in the IPO would be around $10 billion.
The Uber IPO would rank as the largest in the United States since that of Chinese e-commerce giant Alibaba Group Holding Ltd. in 2014.
Road show
The updated public filing comes as Uber begins its 10-day investor road show, in which management will pitch Uber to public markets investors.
Uber executives kicked off the IPO road show in New York on Friday. They will host an investor presentation in London on Monday, before returning to the United States for visits to New York a second time, Boston, San Francisco and the Midwest.
Uber expects to price the IPO on May 9 and then begin trading on the New York Stock Exchange the following day, people familiar with the matter have said.
Of the stock being sold in the IPO by existing Uber investors, 6.86 million shares are from Uber co-founders Travis Kalanick and Garrett Camp, meaning the two men could jointly pocket $343 million if the IPO prices at the top end of its current range.
Uber will face a host of questions from investors, including when it will turn a profit, how it will navigate the transition to autonomous vehicles, and whether its business model can support higher driver costs from minimum wage rules.
Underscoring the company’s ability to generate revenue but also the scale of its losses, Uber reported in the filing a net loss attributable to the company for the first quarter of 2019 of around $1 billion on sales of roughly $3 billion.
“When it comes to Uber, we believe there are still questions over the current car-sharing model, the economics of which are not immediately or obviously attractive for sustainable, long-term investment,” Mark Hargraves, head of Framlington Global Equities, wrote in a note.
Uber also said PayPal had agreed to purchase $500 million of stock in a private placement at the price the IPO eventually settles at. The two companies also said they were extending an existing partnership to “explore future commercial payment collaborations.”
This is similar to when Comcast Corp.’s NBCUniversal invested $500 million in Snapchat owner Snap Inc., around the time of the latter’s IPO in 2017.
Conservative valuation
Two other IPOs this month, those of online scrapbook company Pinterest Inc. and video conferencing company Zoom Video Communications Inc., have performed much better than Lyft.
Uber, however, has chosen to still value itself conservatively. One advantage Uber will likely seek to emphasize to investors is that it is the largest player in many of the markets in which it does business, and the fact that it operates
around the world.
Analysts consider building scale crucial for Uber’s business model to become profitable.
Unlike Lyft, Uber also has a restaurant delivery business, Uber Eats, which generated $1.5 billion in revenue last year and competes with the likes of Grubhub Inc. and DoorDash.
During Uber’s IPO road show, Chief Executive Dara Khosrowshahi will be also tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.
Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.
The Uber IPO is being led by Morgan Stanley, Goldman Sachs & Co. and Bank of America Merrill Lynch.
…
Foxconn Jobs, Tax Credits Could Be Renegotiated in Wisconsin
Wisconsin Gov. Tony Evers and Foxconn Technology Group officials are talking about making changes to the contract signed in 2017 that was based on constructing a larger display screen manufacturing facility than is now proposed.
But neither side is giving details. So how might the deal be changed? And what’s at stake for each side?
Here are five areas to watch as talks continue, based on interviews with people familiar with the Foxconn deal and others like it:
Jobs: It makes sense that Foxconn would want to open up the deal because it appears unlikely to meet the original jobs targets, said Bob O’Brien, president of U.S.-based Display Supply Chain Consultants, which tracks the global flat-panel industry.
Foxconn already came up well short of its first-year target of 260 jobs, costing it $9.5 million in tax credits. This year’s jobs goal has doubled to 520, and the 2020 goal — when Foxconn says production will begin — is nearly 2,000 jobs.
Starting in 2027, it must have at least 10,400 workers to qualify.
It makes sense that Foxconn would want to renegotiate to lower the threshold to qualify, O’Brien said.
The current contract awards Foxconn up to $1.5 billion in tax credits if it hires 13,000 people by 2023 making an average salary of $53,875.
Alan Yeung, Foxconn’s leader for strategy in the U.S., this week suggested there’s no way to predict whether Foxconn will meet the jobs target.
“Who has the crystal ball to predict if 13,000 jobs will be created by the year 2032? Esp in April `19,” he tweeted. Yeung later told reporters Foxconn remained committed to hiring 13,000 people.
“We’re not changing the deal … especially the 13,000 jobs,” he said.
Size of factory: Foxconn could get another $1.35 billion in tax credits if it spends $9 billion on capital investments, primarily building construction and the purchasing of machinery and equipment.
The original contract has Foxconn building what’s called a Generation 10.5 facility. But Foxconn now plans to build a Generation 6 plant, which will make smaller display screens for cellphones and other devices.
Opponents have said that wording referring to a Generation 10.5 plant puts the entire contract in jeopardy if Foxconn builds a different-sized factory.
But Evers, in an interview, discounted that concern.
“I think that we’re past that point and I don’t think anybody would have ever called them out and say we’re going to negate this deal because of that,” Evers said.
Level of credits: While Foxconn may want to lower minimum job-creation numbers to get credits, the state may want to make the benefits less generous.
The credits for job creation and capital investment are much richer than for most economic development projects, a point that critics repeatedly point to as a fault with the contract.
Foxconn is currently eligible for a 15% capital investment credit for expenditures on land and buildings, more than the typical 10%. It’s eligible for a 17% credit on wages, more than double the usual 7%.
Wisconsin went with the larger incentive payments because of the enormous promised scale of the project, which was projected to have massive ripple effects across the state’s economy. President Donald Trump heralded it as the “eighth wonder of the world” and said it was a sign of a resurgence in American manufacturing.
But with the scale of the project reduced, and hiring numbers in question, there will be pressure on the state to lower its commitment.
Changes in leadership: The project has been in flux almost from the moment it began. The election of Foxconn critic Evers as governor, followed by the announcement earlier this month that Foxconn CEO Terry Gou plans to run for president of Taiwan, has added uncertainty.
Gou was personally involved in the Wisconsin deal, traveling to the state multiple times to negotiate with then-Gov. Scott Walker and his administration and meet with Trump.
There are more changes to come. In September, Evers will be able to appoint a new leader to the Wisconsin Economic Development Corp., which wrote the contract.
New requirements: Renegotiating the contract would give Evers a chance to insert new environmental safeguards, but those would come at a cost that Foxconn would surely want to mitigate elsewhere. Evers could also attempt to put in place new requirements forcing Foxconn to do business with Wisconsin companies and hire workers from the state. The state may also want to include protections for local communities, which have already spent about $190 million on the project, O’Brien said.
To me it's a partnership and we're going to be working together to solve it,'' Evers said.
I suppose at some point in time we might not agree and then it becomes somewhat of a negotiation. But I truly believe that the changes that are made will be reasonable to all sides. Of course, you go in knowing it might not be.”
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Cory Booker Offers Plan to Address Environmental Inequality
Democratic presidential candidate Cory Booker says it’s time to overhaul environmental policies that he says unfairly disadvantage minority and impoverished communities.
The New Jersey senator is promoting what he calls his environmental justice agenda during a campaign stop in South Carolina.
He told students at Allen University in Columbia that the government hasn’t done enough to ensure all Americans have equal access to clean, healthy communities.
Booker says addressing environmental inequality is one of today’s civil rights battles.
Booker wants to strengthen Environmental Protection Agency and reverse what he says are Trump administration rollbacks of environmental safeguards. He’s proposing more EPA workers and resources to ensure safe drinking water.
EPA Administrator Andrew Wheeler has said unsafe drinking water is the world’s most immediate public health issue.
Cory Booker Offers Plan to Address Environmental Inequality
Democratic presidential candidate Cory Booker says it’s time to overhaul environmental policies that he says unfairly disadvantage minority and impoverished communities.
The New Jersey senator is promoting what he calls his environmental justice agenda during a campaign stop in South Carolina.
He told students at Allen University in Columbia that the government hasn’t done enough to ensure all Americans have equal access to clean, healthy communities.
Booker says addressing environmental inequality is one of today’s civil rights battles.
Booker wants to strengthen Environmental Protection Agency and reverse what he says are Trump administration rollbacks of environmental safeguards. He’s proposing more EPA workers and resources to ensure safe drinking water.
EPA Administrator Andrew Wheeler has said unsafe drinking water is the world’s most immediate public health issue.
Trump Tells NRA He’s Withdrawing from Arms Trade Treaty
With pro-gun legislation largely stalled in Congress, President Donald Trump said Friday he is withdrawing the U.S. from an international agreement on the arms trade, telling the National Rifle Association the treaty is “badly misguided.”
Trump made the announcement as he vowed to fight for gun rights and implored members of the nation’s largest pro-gun group — struggling to maintain its influence — to rally behind his re-election bid.
“It’s under assault,” he said of the constitutional right to bear arms. “But not while we’re here.”
Trump said he would be revoking the United States’ status as a signatory of the U.N. Arms Trade Treaty, which regulates international trade in conventional weapons, from small arms to battle tanks, combat aircraft and warships. President Barack Obama signed the pact in 2013 but it has never been ratified by U.S. lawmakers.
It has long been opposed by the NRA.
“Under my administration, we will never surrender American sovereignty to anyone,” Trump said, before signing a document on stage asking the Senate to halt the ratification process. “We will never allow foreign diplomats to trample on your Second Amendment freedom,” Trump said
“I hope you’re happy,” he told the group, to cheers.
His move against the treaty came as Trump sought to excite an organization that was pivotal to Trump’s victory in 2016 but, three years later, is limping toward the next election divided and diminished.
“You better get out there and vote,” he said, telling the crowd of thousands that the 2020 election “seems like it’s a long ways away. It’s not.”
‘Reckless move’
Gun activists denounced the treaty when it was under negotiation as an infringement of civilian firearm ownership, despite the well-enshrined legal principle that says no treaty can override the Constitution or U.S. laws. The treaty is aimed at cracking down on illicit trading in small arms, thereby curbing violence in some of the most troubled corners of the world.
Advocates of tighter gun restrictions denounced Trump’s decision. Kris Brown, president of the Brady organization, said it was a “reckless move” that will “only embolden terrorists and other dangerous actors around the world.”
In a speech full of grievance, Trump railed against the Russia investigation, which did not establish a criminal conspiracy between Russians and the Trump campaign. Special counsel Robert Mueller outlined potential episodes of obstruction of justice by the president without concluding that he had committed any crime, leaving such questions for Congress to pursue as it saw fit.
“They tried for a coup,” Trump said. “It didn’t work out so well.”
“And I didn’t need a gun for that, did I?” he quipped, adding: “Spying. Surveillance. Trying for an overthrow? And we caught `em.”
And in a pre-emptive attack against his 2016 Democratic challengers, Trump claimed without evidence that the other party wants “to take away your guns.”
Influence of mass shooting
An emboldened NRA had high hopes and ambitious plans for easing state and national gun regulations after pouring tens of millions of dollars into the 2016 presidential race, seeing its dark horse candidate win and Republicans in control of both branches of Congress.
But much of the legislation the group championed has stalled, due, in part, to a series of mass shootings, including the massacre at a Parkland, Florida, high school that left 17 dead and launched a youth movement against gun violence that has had a powerful impact. And Democrats won control of the House in the midterms.
At the same time, the group is grappling with infighting, bleeding money and facing a series of investigations into its operating practices, including allegations that covert Russian agents seeking to influence the 2016 election courted its officials and funneled money through the group.
As Trump landed in Indianapolis, a judge imposed an 18-month prison term on gun rights activist Maria Butina, an admitted Russian agent who tried to infiltrate American conservative groups.
The NRA’s shaky fortunes have raised questions about the one-time kingmaker’s clout heading into 2020.
“I’ve never seen the NRA this vulnerable,” said John Feinblatt, president of Everytown for Gun Safety, a nonprofit that advocates for gun control measures.
Fear is gone
With Trump in office, gun owners no longer fear the Second Amendment is under attack to the extent it was perceived to be under Democrats.
“Good times are never good for interest groups because it’s much better when Armageddon is at your doorstep,” said Harry Wilson, a Roanoke College professor who has written extensively on gun politics. “Fear is a huge motivator in politics.”
The NRA, said Adam Winkler, a UCLA law professor and expert on gun policy, has also dramatically changed its messaging over the last two years, with its NRATV service advocating a panoply of far-right political views that have turned off some members.
At the same time, public sentiment has shifted. A March AP-NORC poll found that 67% of Americans overall think gun laws should be made stricter — up from 61% in October 2017.
And a June 2018 Gallup poll found overall favorable opinions of the NRA down slightly from October 2015, from 58% to 53%. Unfavorable views have grown, from 35% to 42%.
Against that backdrop, Democratic politicians have become more comfortable assailing — and even actively running against — the NRA and pledging action to curb gun violence. And gun control groups like Everytown, which is largely financed by former New York City Mayor Michael Bloomberg, and a political action committee formed by Gabby Giffords, the former Arizona congresswoman wounded in a shooting, have become better organized and more visible, especially at the state level.
That reversal was made clear during the 2018 midterm elections, when those groups vastly outspent the NRA .
‘Disappearing act’
During the midterms, the NRA “committed almost a disappearing act,” said Everytown’s Feinblatt.
Winkler, the UCLA law professor, allowed that the group had scored some victories under Trump, including the appointment of two Supreme Court justices who may be open to striking down gun laws.
But overall, he said, “On the legislative front, the NRA has been frustrated,” with priorities like national reciprocity for conceal carry laws and a repeal of the ban on silencers stalled.
Instead, Trump introduced a new federal regulation: a ban on bump stocks after a man using the device opened fire on a crowd of concertgoers on the Las Vegas strip, killing 58 people and wounding hundreds.
Nearing End of His Tenure, Rosenstein Hits Back at Critics
Deputy Attorney General Rod Rosenstein is taking swipes at his critics as he prepares to leave the Justice Department. In a speech, Rosenstein made barbed remarks in the direction of former FBI Director James Comey, political pundits and the media
Deputy Attorney General Rod Rosenstein is taking swipes at his critics as he prepares his exit from the Justice Department.
In a speech Thursday night before a lawyers’ group, Rosenstein made barbed remarks in the direction of former FBI Director James Comey, political pundits and the media.
He suggested there were decisions made before he arrived at the Justice Department two years ago that he didn’t agree with, likening himself to a man who lies down in a burning bed but doesn’t know how the fire started.
He also said “there was overwhelming evidence that Russian operatives hacked American computers and defrauded American citizens.”
Rosenstein is expected to leave his position now that special counsel Robert Mueller has submitted his Russia investigation report .
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US Social Media Firms Scramble to Fight Fake News
As Notre Dame Cathedral burned, a posting on Facebook circulated – a grainy video of what appeared to be a man in traditional Muslim garb up in the cathedral.
Fact-checkers worldwide jumped into action and pointed out the video and postings were fake and the posts never went viral.
But this week, the Sri Lanka government temporarily shut down Facebook and other sites to stop the spread of misinformation in the wake of the Easter Sunday bombings in the country that killed more than 250 people. Last year, misinformation on Facebook was blamed for contributing to riots in the country.
Facebook, Twitter, YouTube and others are increasingly being held responsible for the content on their sites as the world tries to grapple in real time with events as they unfold. From lawmakers to the public, there has been a rising cry for the sites to do more to combat misinformation particularly if it targets certain groups.
Shift in sense of responsibility
For years, some critics of social media companies, such as Twitter, YouTube and Facebook, have accused them of having done the minimum to monitor and stamp out misinformation on their platforms. After all, the internet platforms are generally not legally responsible for the content there, thanks to a 1996 U.S. federal law that says they are not publishers. This law has been held up as a key protection for free expression online.
And, that legal protection has been key to the internet firms’ explosive growth. But there is a growing consensus that companies are ethically responsible for misleading content, particularly if the content has an audience and is being used to target certain groups.
Tuning into dog whistles
At a recent House Judiciary Committee hearing on white supremacy and hate crimes, Congresswoman Sylvia Garcia, a Texas Democrat, questioned representatives from Facebook and Google about their policies.
“What have you done to ensure that all your folks out there globally know the dog whistles, know the keywords, the phrasing, the things that people respond to, so we can be more responsive and be proactive in blocking some of this language?” Garcia asked.
Each company takes a different approach.
Facebook, which perhaps has had the most public reckoning over fake news, won’t say it’s a media company. But it has taken partial responsibility about the content on its site, said Daniel Funke, a reporter at the International Fact-Checking Network at the Poynter Institute.
The social networking giant uses a combination of technology and humans to address false posts and messages that appear to target groups. It is collaborating with outside fact-checkers to weed out objectionable content, and has hired thousands to grapple with content issues on its site.
Swamp of misinformation
Twitter has targeted bots, automatic accounts that spread falsehoods. But fake news often is born on Twitter and jumps to Facebook.
“They’ve done literally nothing to fight misinformation,” Funke said.
YouTube, owned by Google, has altered its algorithms to make it harder to find problematic videos, or embed code to make sure relevant factual content comes up higher in the search. YouTube is “such a swamp of misinformation just because there is so much there, and it lives on beyond the moment,” Funke said.
Other platforms of concern are Instagram and WhatsApp, both owned by Facebook.
Some say what the internet companies have done so far is not enough.
“To use a metaphor that’s often used in boxing, truth is against the ropes. It is getting pummeled,” said Sam Wineburg, an education professor at Stanford University.
What’s needed, he said, is for the companies to take full responsibility: “This is a mess we’ve created and we are going to devote resources that will lower the profits to shareholders, because it will require a deeper investment in our own company.”
Fact-checking and artificial intelligence
One of the fact-checking organizations that Facebook works with is FactCheck.org. It receives misinformation posts from Facebook and others. Its reporters check out the stories then report on their own site whether the information is true or false. That information goes back to Facebook as well.
Facebook is “then able to create a database now of bad actors, and they can start taking action against them,” said Eugene Kiely, director of FactCheck.org. Facebook has said it will make it harder to find posts by people or groups that continually post misinformation.
The groups will see less financial incentives, Kiely points out. “They’ll get less clicks and less advertising.”
Funke predicts companies will use technology to semi-automate fact-checking, making it better, faster and able to match the scale of misinformation.
That will cost money of course.
It also could slow the internet companies’ growth.
Does being more responsible mean making less money? Social media companies are likely to find out.
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US Social Media Companies Pressed to Better Police Content
Social media companies such as Twitter, YouTube and Facebook are not legally responsible for the content that users upload to their sites. That legal protection has been key to their explosive growth, but there is a growing consensus that companies must do more to root out misleading content. Michelle Quinn reports, the companies may be taking action in the hope of avoiding stricter government regulation.
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Amazon Aims to Bring One-day Delivery to Prime Members Around Globe
Amazon.com Inc plans to deliver packages to members of its loyalty club Prime in just one day, instead of two days, part of a spending ramp-up that might curb future profits after a blockbuster first quarter.
Shares rose as much as 2% in after-hours trade on Thursday on the faster shipping announcement for customers around the globe and as Amazon’s first-quarter profit trounced estimates thanks to soaring demand for its cloud and ad services. Amazon will spend $800 million in the second quarter on the goal.
The announcement adds pressure to rivals Walmart Inc and others already racing to keep pace with the speed and benefits of Amazon’s Prime program.
Amazon’s first-quarter net income more than doubled to $3.6 billion, while analysts were only expecting $2.4 billion, according to IBES data from Refinitiv.
Second-quarter operating income will be as much as $3.6 billion, but analysts had been expecting $4.2 billion, according to FactSet.
Chief Financial Officer Brian Olsavsky said Amazon was still reaping rewards from prior years of hiring and investments in warehouses and other infrastructure.
“We’re banking the efficiencies of prior investments, continued into Q1,” he said on a call with reporters. “There’ll be times when we have to invest ahead to build out warehouse capacity, but right now we are on a nice path where we are getting the most out of the capacity we have.”
Olsavsky also said earlier that the company would spend more later this year to roll out more benefits to international Prime members.
Investments mean lower profits
The news marks a familiar refrain for the world’s largest online retailer. For years, Amazon has made expensive bets on new technology and programs, like its $13.7 billion purchase of Whole Foods Market in 2017 to become a player in the U.S. grocery business.
Amazon’s investments had long meant lower profit. However, its steady, often successful marches into new industries have been lucrative to shareholders, including its founder Jeff Bezos, who had become the richest man in the world.
The luster of these bets still shined brightly on Thursday. The company’s loyal customer base has drawn merchants to sell and increasingly advertise through its site in exchange for fees, helping Amazon transform from a largely low-margin retail business to a more and more lucrative marketplace.
Revenue from seller services jumped 20% to $11.1 billion in the first quarter, while ad and other sales surged 34% to $2.7 billion, the company said.
Meanwhile, Amazon’s cloud unit kept growing as more enterprises moved data and computing operations to the technology company’s servers. Sales for Amazon Web Services (AWS) rose 41% to $7.7 billion in the first quarter.
More hiring, spending to come
Some analysts noted that these growth figures, while impressive, were lower than what Amazon had posted in prior quarters.
“Amazon delivered slower growth in all key segments,“ (AWS, advertising and e-commerce) “but margins skyrocketed, seemingly driven by less aggressive investment,” said Atlantic Equities analyst James Cordwell.
Amazon suggested that spending indeed was on the way, and with that smaller growth in profit.
‘Lord of the Rings’ prequel
The company has been building warehouses around the world to ensure its edge in delivering goods to customers the fastest. It is spending more on video, from live sports to a planned prequel series to “The Lord of the Rings,” to draw more people to log on to its website, watch, and while they are there, buy socks. Hiring will pick up from the 12 percent increase Amazon posted in the past 12 months, Olsavsky said.
And the company is delving into even less familiar terrain.
It recently announced investments in self-driving and electric car companies, teasing how it thinks these high-tech, capital-intensive businesses could pay dividends potentially in the form of autonomous deliveries in the long run. Amazon has not described in detail its thinking behind the bets.
In China, where the company had long struggled to compete with Alibaba Group Holding Ltd, Amazon said this month it would close warehouses and its domestic marketplace in July. There were silver linings for investors, however.
Amazon’s Olsavsky said the company saw no material impact in India from actions the company took to comply with new regulations there affecting foreign investment in the e-commerce sector, something Amazon had voiced concern about in the past.
Prime signups on rise in India
Prime member signups in India, one of Amazon’s most important growth markets, continue to be rising the fastest in the company’s history.
Bezos, who many regard as a management guru, also settled his closely watched divorce such that he will retain full voting control of his family’s stock, sparing Amazon a boardroom battle. However, his fortune, which has been the largest of any married couple in the world, will be divided.
The company forecast net sales of between $59.5 billion and $63.5 billion for the second quarter, the midpoint of which was below analysts’ average estimate of $62.37 billion, according to IBES data from Refinitiv.
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