Wells Fargo downgrades Target, says headwinds are mounting for the retailer

US Top News and Analysis 

It’s time to step to the sidelines on Target , according to Wells Fargo. Analyst Edward Kelly downgraded shares to equal weight from overweight, saying a weaker consumer in 2023 will be especially challenging for general merchandise companies. “TGT’s outlook has deteriorated meaningfully and we no longer see it as an attractive investment into an uncertain 2023,” Kelly wrote in a Wednesday note. Target shares dropped more than 35% in 2022, greatly underperforming the S & P 500’s 19% fall, as it dealt with a challenging retail environment. The analyst expects Target to continue struggling going forward as retailers will have to navigate a disinflationary environment, which could mean lower pricing on products on top of weakening sales momentum. The analyst’s $142 target price, dropped from $170, represents a more than 6% decrease from Tuesday’s closing price of $151.73. Shares fell 1% in Wednesday premarket trading. “Our concerns include the potential for a sustained period of comp weakness in general merchandise, an inflection to negative traffic in Q4, a lack of visibility on the timing/magnitude of the margin recovery story, and the return of pre-COVID model scalability concerns,” Kelly wrote. “We see potential for $8-9 in EPS in 2023 and limited stock upside despite low expectations,” Kelly added. Instead, Kelly said other big-box retailers such as Walmart are better equipped to handle disinflation, as well as cater to a “better economically positioned” low-income consumer. —CNBC’s Michael Bloom contributed to this report.

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[World] US House in chaos after Kevin McCarthy loses speaker votes

BBC News world-us_and_canada 

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Watch: Kevin McCarthy’s whirlwind day – in 90 seconds

On a day of high political drama, Republican leader Kevin McCarthy repeatedly failed in his bid to be elected Speaker of the US House of Representatives.

The House adjourned without a speaker on Tuesday night – the first time since 1923 they had failed to choose a leader after a first round vote.

The start of a new Congress was supposed to be a victory lap for the Republican Party as it took control of the lower chamber following November’s elections. Instead, Mr McCarthy faced a rebellion from within his own ranks and made history for all the wrong reasons.

The California congressman has lost three consecutive votes for Speaker so far, and it’s unclear what his path to victory could be when the House returns on Wednesday to try all over again. They will keep voting until someone wins a majority.

And even if Mr McCarthy finds a way, analysts warn, the turmoil on the floor of the House foreshadows a tumultuous two years of moderate and right-wing Republicans at war with each other.

If the Republican party is unable to effectively run the lower chamber of Congress, this could hamper the ability of the House to carry out some of its core functions like passing spending bills or raising the debt ceiling.

‘Negotiations made him look weak’

Republicans narrowly won control of the House in November, so Mr McCarthy only had a few votes to spare in his bid to become Speaker. That allowed a group of hardline conservatives to band together to oppose his nomination.

The rift was a long time coming, according to Republican observers.

“Kevin McCarthy has not made friends with certain segments of the caucus for a while, he’s made a lot of enemies,” said one Republican lobbyist, who requested anonymity to speak frankly about Tuesday’s vote. “There’s people who don’t like him for political reasons, for personal reasons.”

Mr McCarthy entered into negotiations with his detractors – who see him as too mainstream and power hungry – offering concessions to try to win their vote. At one point, he reportedly agreed to change the House rules to make it easier to oust a sitting Speaker, handing his opponents an enormous check on his power.

“The fact he was negotiating with the Republicans at all made him look very, very weak to the point of being desperate,” the Republican lobbyist said.

His opponents feel emboldened

The futility of that approach became clear on Tuesday.

In three consecutive votes, Mr McCarthy failed to reach the required 218 vote threshold. Though Republicans hold 222 seats, a bloc of 19 hard-right Republicans had solidified in opposition to him. They oppose Mr McCarthy on ideological and personal grounds, but also see an opportunity to exploit Republicans’ narrow majority to force further concessions from him.

They would “never back down” Representative Bob Good, a Virginia Republican, told reporters on Tuesday.

The punches were still being thrown well after the drama on the floor had finished.

One of the rebels, Matt Gaetz, shot back at a Republican colleague who labelled the right-wing faction as the “Taliban 20”.

“Well, as hurtful and false as that is, I too am prepared for an extended battle that I will ultimately win,” said Mr Gaetz on Twitter.

Image source, Getty Images

Image caption,

Representative Matt Gaetz is one of the Republicans opposing Mr McCarthy

In one of the day’s most dramatic moments, they even nominated Representative Jim Jordan to challenge him, just moments after Mr Jordan himself nominated Mr McCarthy for Speaker.

Even after Mr Jordan – who is a leading figure in the hard-right Freedom Caucus – urged Republicans to “rally around” Mr McCarthy in the third round of voting, 20 Republicans voted for Mr Jordan, again denying victory to Mr McCarthy.

Meanwhile, Democrats remained unified behind their party’s new leader, Representative Hakeem Jeffries of New York.

A few could not help publicly teasing their Republican counterparts about their party’s difficult afternoon. One congressman, Ruben Gallego of Arizona, tweeted that Democrats were “breaking the popcorn out,” and as evidence included a photo of the snack.

What are McCarthy’s options now?

Political observers in Washington have begun spinning out various theories about how this all could end. Their predictions to the BBC ranged from the feasible (Mr McCarthy holds out and wins, but walks away seriously weakened) to the entirely possible (he bows out and backs his second in command, Representative Steve Scalise of Louisiana). One suggestion verged on fantasy (five Republicans decide to vote for Mr Jeffries, a Democrat, and deliver him control of the House).

As it stands, Mr McCarthy is “essentially hostage to one side of his party,” said Ruth Bloch Rubin, a political scientist at the University of Chicago who studies partisanship.

Mr McCarthy has pledged not to make any more concessions, but may not have a choice. He could try to win over obstinate lawmakers with plum committee assignments or new leadership roles.

“He’s got to give the people who are against him something to hang their hat on,” said Aaron Cutler, a lobbyist who once worked for former congressman Eric Cantor, another politician who was ousted by conservative opposition. The other Republican lobbyist, however, believed there was “no path to victory, at all, period.”

Members will reconvene for a fourth time on Wednesday, though it’s unclear if the stalemate will break.

“We haven’t heard anything new from McCarthy,” one of the conservative holdouts, Representative Lauren Boebert of Colorado, told reporters. “So I guess we’ll just keep doing this.”

 

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Budowsky: Why American Dream Dems won in 2018, 2020 and 2022

Just In | The Hill 

Once upon a time in America and continuing through the 2022 midterm elections, the American idea of patriotic democracy was one nation with an American dream for all. 

Because this dream is the core of President Biden’s politics and the heart of values of Democrats across America, the party won historic victories in the elections of 2018, 2020 and 2022. 

Because the party of Lincoln became the party of Nixon and Trump, seething with enemies lists, targeting members of their own party, and a plan to bitterly divide the nation for victories that would exclude gigantic numbers of Americans, the fantasy of red waves dissolved into a nightmare of electoral defeats, which an astounding number of Republicans have denied for more than two years. 

While Biden was preparing to visit Kentucky alongside Senate Republican Leader Mitch McConnell (Ky.) and prominent Republicans and Democrats to celebrate the enactment of a historic bipartisan infrastructure bill that bettered the lives of tens of millions of Americans, prominent House Republicans were working to humiliate their leading candidate for Speaker, who spent day after day surrendering to their power-mad demands. 

President Biden has seized the high ground. He stands for politics where the American dream is available to all, bipartisanship is the preferred way of doing business, and democratic allies stand united in support of democracy in Ukraine and elsewhere. Every American wants, needs, and deserves leaders who make their lives better and dreams come true. 

Senate Democratic and Republican leaders have many differences, but are willing to discuss genuine bipartisan ideas and to make reasonable compromises on some important matters to achieve results. Senate Republican leaders understand the political realities of today and realize that what is right for the country — achieving results that help Americans — is also good politics for the GOP. 

The problem for achieving anything significant is in the House, where Republicans, who hold a small majority, are blockaded by a fanatic faction that opposes working with Biden and House Democrats on any issue, at any time, as a matter of non-negotiable principle. 

Biden seeks opportunities to work with Republicans in the House as well as the Senate. The incoming House minority leader, Rep. Hakeem Jeffries (D-N.Y.), is a skilled advocate and negotiator who shows great promise as Democratic leader. 

While most commentators, myself included, believe there is an upper limit to what Biden and congressional Democrats can accomplish legislatively, it is wrong to suggest that nothing important can be accomplished, for two reasons. 

First, there are somewhere between 10 and 30 House Republicans who could be part of negotiating success on some important issues that they believe in and which are important to their districts. 

Second, it is already increasingly apparent that the growing image of hard-core House Republican obstructionism, including the super-hostile attempts to humiliate Rep. Kevin McCarthy (R-Calif.), are beginning to brand House Republicans in the eyes of voters as the kind of anti-voter obstructionists that led the GOP to electoral disaster in 2018, 2020 and 2022. 

One can envision significant bipartisan agreements in the Senate that 10 or more GOP House members would accept, such as on a broad immigration bill that would strengthen border protection, improve border security, provide relief for the “Dreamers” and more. Remember when everyone believed bipartisan infrastructure was impossible to pass? 

It could be similarly possible to reach agreement on lowering prescription drug costs for a far wider group of patients than could be achieved last year, or to pass some version of the widely popular child tax credit and other measures to support working women. 

With these actions and others, the American dream can become a reality once more. 

Budowsky was an aide to former Sen. Lloyd Bentsen (D-Texas) and former Rep. Bill Alexander (D-Ark.), who was chief deputy majority whip of the House of Representatives.

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[Technology] Porn website age checks introduced in Louisiana

BBC News world-us_and_canada 

Image source, Getty Images

Pornographic websites must check that users in Louisiana are over 18 years old or risk being sued, a new law in the US state says.

Republican state legislator Laurie Schlegel, who introduced the bill, says she was inspired by musician Billie Eilish, who has spoken of the effect viewing porn as a child had on her.

But US adult industry campaigners argue the law is the wrong solution.

Age checks are also a key part of the UK’s Online Safety Bill.

Under the Louisiana legislation, most users are expected to use a smartphone app, called LA Wallet, to show they are over 18.

The app requires a driving licence or an official state identity card to establish a person’s age.

Users of one of the largest pornographic websites, Pornhub, are now directed to an age verification process, according to a video posted on Twitter.

“Louisiana law now requires us to put in place a process for verifying the age of users who connect to our site from Louisiana,” the on-screen text says.

The message also says that the site “guarantees” it does not collect data during this process.

Not retaining data is written into the bill, according to an official summary.

A check on free speech?

The law does not make it illegal to allow children to access pornographic websites, but enables people to sue sites that do not have age checks.

A federal law giving regulators the power to mandate age-verification country-wide was proposed last month by Republican US senator Mike Lee, from Utah. The Shielding Children’s Retinas from Egregious Exposure on the Net Act would make US regulators require sites to age-check their users.

But some lawyers question whether the Louisiana legislation is compatible with US constitutional protections for freedom of speech. Campaigners note a previous law was ruled unconstitutional by the Supreme Court.

Mike Stabile, of the Free Speech Coalition, which campaigns for adult industry rights, told the BBC: “We should all work to prevent access to adult content by minors, but the simple, free filters available on most devices would accomplish the same thing.”

The legislation was a dangerous step towards censorship and should be seen in the context of an effort by conservative and faith-based groups to “remove sex and information about sex from the public square”, said Mr Stabile.

Image source, Getty Images

Image caption,

Billie Eilish said watching pornography as a youngster helped her to be “one of the guys”

Ms Schlegel says she is a “certified sex addiction therapist” including “addiction” to pornography.

The legislator told USA Today the bill was not designed to prevent adults from accessing pornography, but was just about protecting children.

Ms Schlegel said she was inspired to act by Eilish, who said in a 2021 interview she watched pornography from age 11, and felt it helped her to be “one of the guys”.

Eilish said the experience led her to “not say no to things that were not good” when she began having sex.

Private data

In the UK, the Online Safety Bill, which is currently progressing through Parliament, will order pornographic websites to prevent children from accessing explicit content.

Previous legislative efforts have been abandoned and many privacy campaigners argue age verification systems can be easily circumvented using virtual private networks.

An Ofcom report last year found one in 20 children (6%) already got around parental controls restricting access to certain sites.

And critics say such systems collect large amounts of highly personal data about people’s sexual preferences.

Jason Kelley, of digital civil liberties group the Electronic Frontier Foundation, told the BBC: “Age verification systems like those required by the Louisiana law force users to hand private data over to a third party simply to use a website.

“There’s no guarantee that this data won’t be retained.”

But providers of age check systems disagree there is a privacy risk.

Ben Keirle, of UK-based age verification platform 1account, said all that an adult website would see using its system “is a simple yes/no response to the request to verify a user prior to admitting access”.

He said information used to prove age was deleted once a person was validated and was in any case not stored by the platform and was never made available to the adult website.

 

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California braces for more 'brutal' flooding and mudslides as experts warn it won't quench historic drought



CNN
 — 

Parts of drought-plagued California are facing an onslaught of powerful storms to start the new year, bringing flooding rainfall and even mud and debris flows to the state.

The latest in the series of storms are expected to reach the coast Wednesday morning, and while the entire state will see impacts by the end of Thursday, Northern California and the Bay Area are likely to see the worst of the weather.

A so-called “bomb cyclone” over the Pacific Ocean – named because of how rapidly it intensifies over a short period of time – will sling a series of fronts at the West Coast. These fronts are being super-fueled with tropical moisture from a potent atmospheric river that stretches west to Hawaii.

While the prolonged wet conditions will provide some relief to the drought conditions, the rain has proved too much too fast.

According to the National Weather Service, the storm could trigger more widespread flooding, roads washing out, hillside collapsing, fallen trees, major power outages, “immediate disruption to commerce, and the worst of all, likely loss of human life.”

“This is truly a brutal system that we are looking at and needs to be taken seriously,” the NWS Bay Area office added.

The storm is part of a major system offshore over the Pacific Ocean that's drawing moisture from the tropics up into California.

The storms are called “atmospheric rivers” because they are essentially a conveyor belt of concentrated moisture in the atmosphere emerging from the warm waters of the Pacific Ocean. A similar storm unleashed rains, deadly floods, debris flows and hurricane-force winds, particularly in Northern California including the Bay Area, over the weekend.

It’s all happening against the backdrop of a yearslong, climate change-fueled megadrought that has drained the state’s reservoirs and triggered water shortages. These storms usher in much-needed rainfall and snow to the state. But Daniel Swain, climate scientist at the University of California in Los Angeles, said it is not enough to erase the decadeslong deficit that the unrelenting drought has built up.

“This is really going to help a lot with the short-term drought in Northern California, perhaps even erase short-term drought conditions, but it’s going to take a lot more to completely obviate the longer term, multi-year drought impacts,” Swain said, emphasizing that Wednesday’s atmospheric event will be a “high-impact storm.”

This dramatic swing in periods of drought and high precipitation, or weather whiplash, can occur more often and become more intense under a rapidly warming climate. And scientists say the chances of these sudden transitions happening in California will become much higher, if humans continue to pump out planet-warming gases.

Climate researchers have said it’s a lack of precipitation, higher temperatures, and an increase in evaporative demand – also known as the “thirst of the atmosphere” – that has pushed the West’s drought into historic territory.

As wells run dry and reservoirs drain, Julie Kalansky, a climate scientist at Scripps Institution of Oceanography in San Diego, said these storms are desperately needed more than ever to alleviate the drought, despite the hazards they bring in some areas.

An aerial view of flooded areas around homes on Sunday after heavy rain caused a levee to break, flooding Sacramento County roads and properties near Wilton, California.

“They’re two sides of the same coin: they can be extremely beneficial because they bring so much of California’s water supply to the state or they can also be drought busters,” Kalansky told CNN. “But when the duration becomes too long, they become too strong, they come back-to-back, and the landscape doesn’t get an opportunity to absorb all the rain, it can lead to this flooding.”

This winter is already showing some signs of respite for a state that’s still almost entirely in drought conditions. Large reservoirs in Northern California including lakes Shasta and Oroville, are slowly being replenished. Meanwhile, smaller reservoirs like Folsom Dam saw an increase of roughly 40 feet of water in three days.

Heavy snow fell over the weekend in the Sierra Nevada, see here near South Lake Tahoe, California. Snow helps alleviate the drought by storing water through the winter, which then melts in the spring to replenish the reservoirs at lower elevations.

Swain said the storms will have largely improved dry conditions in Northern California in the short term. But in the long term, he said climate change has already made its mark and that it would take a lot more than one exceptionally wet year – it will take consecutive wet years and cooler conditions to bust this drought.

“In a warming climate, the severity of droughts in places like the Southwest and California are being driven by increasing evaporative demand,” he said. “Essentially, the atmosphere is requiring more water as temperatures rise, so you’d actually need more precipitation than you used to have to balance that out — and we’re not necessarily seeing more precipitation than we used to.”

An average atmospheric river carries more than 20 times the water the Mississippi River does, but as vapor. California is prone to floods from these storms as they come ripping off the Pacific Ocean, and major floods from them have happened before — but climate change is raising the stakes with millions of people likely to be impacted.

Rainfall in parts of California exceeded 8 inches over the weekend as the last storm moved across the state. Oakland saw its wettest day on record on December 31 when 4.75 inches of rain fell, and San Francisco marked its second-wettest day with 5.46 inches – nearly half of its typical December rain.

Nearly all of Califonia was still in drought last week, according to the US Drought Monitor.

A 2022 study authored by Swain found that climate change has already doubled the chances of a disastrous megaflood happening in California in the next four decades – a storm unlike anything anyone alive today has ever experienced.

And while the recent series of storms isn’t the “big one” yet, the study paints a picture of what the state could face as the planet warms.

“We haven’t seen the mega floods, but we have definitely seen hints of increasingly extreme precipitation even in the middle of what has otherwise been a period characterized by a pretty severe and persistent drought,” Swain said.

Yet despite this wet start to the year, it’s worth noting that last year was relatively much wetter around this time — and the state was still mired in drought for the remainder of 2022.

“The face of droughts is changing,” Swain said. “It’s easier and easier to get into a drought – even following a really wet winter – because we just have that growing evaporative demand and hotter summers.”

“Multi-year droughts are going to look different than they used to,” he said.

source

Mortgage demand plunges 13% to end 2022, as interest rates head higher again

US Top News and Analysis 

A ‘For Sale’ sign stands in a vacant lot near new homes in Dunlap, Illinois.
Daniel Acker | Bloomberg | Getty Images

After a brief reprieve in the first half of December, mortgage interest rates shot up again to end the year, weighing on mortgage demand.

Mortgage application volume was down 13.2% at the end of last week from two weeks earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. The MBA was closed last week due to the holidays.

The average contract interest rate for 30-year fixed-rate mortgages with conforming balances ($647,200 or less), for loans with a 20% down payment, increased to 6.58% from 6.34% two weeks prior. At the end of 2021, the rate was 3.33%.

Demand for refinancing, which is most sensitive to weekly interest rate changes, dropped 16.3% from two weeks earlier and was down 87% from the same period in 2021.

“Mortgage rates are lower than October 2022 highs, but would have to decline substantially to generate additional refinance activity,” noted Joel Kan, an MBA economist.

Mortgage applications to purchase a home dove 12.2% from two weeks earlier and were down 42% year over year. They ended the year at the lowest level since 1996.

Read more: Home price increases weakened sharply in November

“Purchase applications have been impacted by slowing home sales in both the new and existing segments of the market. Even as home-price growth slows in many parts of the country, elevated mortgage rates continue to put a strain on affordability and are keeping prospective homebuyers out of the market,” said Kan, who also pointed to the threat of a wider economic recession.

Mortgage rates started this week, and this year, slightly lower, but all eyes are now on the all-important monthly employment report expected to be released Friday. Rates will like move more dramatically on the data – but it’s unclear which direction they’ll move.

VIDEO4:4004:40
Housing markets face tough start in 2023

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A Cardiologist and Therapist Talk Through How Planting and Living Near Trees May Actually Help You Live Longer

Well+Good 

From stone fruit and summer shade to showy fall foliage and fresh, oxygen-rich air, it’s no secret that trees are prolific givers. Growing evidence of a connection between green space and health risk factors such as exercise, stress reduction, and social connection has natural scientists wondering: can trees help us live longer?

It’s a question researchers at the Barcelona Institute for Global Health recently saw a unique opportunity to explore. Knowing Portland-based nonprofit Friends of Trees had planted 49,246 street trees between 1990 and 2019, the research team designed a study to answer the question: what impact might thirty years of tree planting have on the health of city residents? When they cross-referenced tree planting data furnished by Friend of Trees with mortality data provided by the Oregon Health Authority, the team uncovered significant, tree-level specific results.

Even when controlled for income, education, race, and age, the group found that an increase in neighborhood street trees was linked to a reduction in non-accidental and cardiovascular disease-related (CVD) death. For every twelve trees planted in a neighborhood (an average of 4,000 residents), the data showed fifteen fewer non-accidental deaths and five fewer CVD deaths per year.

Board-certified cardiologist Elizabeth Klodas, MD, FACC, who focuses on preventive cardiology in her Minneapolis-based clinic, says, “this study underscores what we probably all know intrinsically—that we live in balance with nature. It’s probably not too surprising then that enhancing or restoring the natural environment might have positive effects on us, especially our health.”

What does the science say about whether trees help us live longer?

The Friends of Trees study isn’t the only research effort to find a connection between green space and CVD outcomes. In 2021, scientists pooled together results from 48 different studies conducted in eighteen countries. Collectively, data from more than 100 million people were included. The analysis found that every 0.1-point increase in landscape greenness within 1600 feet of a residential address is associated with up to 13 percent lower odds of CVD mortality, ischemic heart disease mortality, stroke, and coronary heart disease incidence.

If planting trees has the potential to improve neighborhood health outcomes, what might tree loss do? When an invasive beetle caused the loss of 100 million trees in fifteen states across the United States, researchers designed a study to assess the impact. Using data from the Women’s Health Initiative, the study found that women living in beetle-infested counties were at a 41 percent increased risk of CVD, including acute myocardial infarction (MI), silent MI, ischemic or hemorrhagic stroke, or death from CHD.

Although researchers have consistently shown that there is a significant link between exposure to green space and specific health outcomes, they are also transparent about the limitations of natural experiments. These studies, including the latest findings out of Portland, are based on observation, not intervention. This means, unlike taking a prescription pill or undergoing another form of treatment, these studies don’t record a specific “tree dose” and analyze the outcome for one human being. This makes a direct cause-effect relationship between nature and decreased risk of CVD difficult to establish.

It also leaves practical questions unanswered. The research doesn’t tell us how much time is needed in green space in order for protective benefits to kick in. And it isn’t clear whether it’s enough to simply live on a tree-lined street or if being physically active in a natural environment is necessary in order to reap the heart-healthy benefits.

Dr. Klodas agrees the nature of these analyses is complicated. “Drawing firm conclusions is a stretch, but even if partially correct, huge impacts are possible. Data reproduction in other cities or planned communities would be helpful to shore up the validity of the conclusions, providing impetus to prioritize green space wherever we live and work as a public health concern.”

How might trees boost your health and longevity?

So far, researchers propose that green space influences health and longevity via both environmental and lifestyle mechanisms. Trees have been proven to reduce air pollution, which is an environmental factor linked to respiratory and cardiovascular disease. Trees also play a role in moderating temperatures, reducing the risk of heat-related illness. From a lifestyle perspective, studies have shown that access to green space is associated with an increase in exercise frequency in adults and play in children. A smaller set of studies has begun to explore a relationship between neighborhood green and open space and an increased sense of community. This is promising as existing research has identified a lack of social support as a risk factor for CVD.

Other studies have shown that the presence of trees is psychologically restorative, hinting that a reduction in stress and anxiety may be at work. This is consistent with what Maia Kiley, LMFT, sees in her practice as a licensed psychotherapist and certified ecotherapist. “I have discovered that when people spend time in nature, it brings them back home to themselves and offers relief from many symptoms like anxiety and depression.” She describes green space as “absolutely essential to our mental well-being.”

How can you better protect your heart, regardless of whether trees help us live longer?

What is known with certainty is that CVD is now the leading cause of premature death around the globe. It’s also clear that the number of CVD deaths is increasing disproportionately in low-and middle-income countries. While some risk factors like smoking, diet, and stress can be managed at the individual level, tree planting is an environmental factor that can be implemented at a community level cost-effectively. A cost-benefit analysis in the Friends of Trees study found that the average annual cost of planting and maintaining one street tree, somewhere in the range of 19.40 to 98 USD, produces a human life value of 14.2 million USD.

More good news is that 85 percent of the studies included in the 2021 meta-analysis on green space and CVD outcomes were published in the past five years. This is an indicator that the natural science field is paying close attention to this potential link and positioning itself to discover much more about what the natural environment can do for the human heart and how.

Until the research is more conclusive on whether trees can help us live longer, Dr. Klodas has empowering words about taking ownership of our heart health. “In cardiac care and prevention, we tend to rely solely on medications and procedures to help achieve better outcomes. The truth is that all these care system efforts pale in comparison to what we can do ourselves to minimize risk and ensure healthy longevity. Whether it’s eating in a way that effectively lowers cholesterol or ensuring our surroundings are conducive to health, we all have a lot of power over our health destinies.”

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Tesla Rival Rivian Narrowly Misses Its Bet

TheStreet 

The electric vehicle manufacturer has just published its production figures for 2022.

It’s a horrible year that ends on a false note. 

But this is not really a surprise either for investors or for Rivian shareholders. 

The upstart, seen as one of Tesla’s most serious rivals, had a nightmarish year 2022. Nothing went the way the Irvine, CA-based band hoped. 

Rivian  (RIVN) – Get Free Report, which started producing cars in 2021, predicted that 2022 would be the year of ramp-up or mass production. Unfortunately it turned out to be one of increased difficulties. The automaker encountered many problems including major disruptions related to the supply chain, which led it to halve its initial production target of 50,000 vehicles mid-year. Rivian was then less ambitious, planning to produce only 25,000 vehicles over the whole year. 

But even this low bar could not be reached. The group has just published its 2022 production figures and these show that the automotive group produced only 24,337 vehicles. 

One of the few good notes is that Rivian made great progress in the fourth quarter, during which time the company manufactured 10,020 vehicles, according to a press release.

‘Incredible Achievement’

The firm, which currently has only one plant in Normal, Illinois, delivered 20,332 vehicles for the whole of 2022, including 8,054 in the fourth quarter.

Rivian

In an email to employees CEO RJ Scaringe said the company actually produced 25,051 vehicles. But just over 700 of these vehicles were not ready to be delivered to consumers because some parts were still missing. Software had not yet been validated in certain vehicles and the wheels still had to be aligned in others.

Scaringe, however, praised the employees, describing Rivian’s performance as “an incredible achievement.” According to the CEO, Rivian could have done better had it not been for the supply chain issues that forced the company to shut down the plant for 20 days and disrupted another 50 days of production. 

Bad weather also forced Rivian to shut down the plant for five more days, Scaringe said.

Rivian’s announcements were rather well received on Wall Street, where the stock gained more than 1% in electronic trading after losing nearly 6% during the session. It is the opposite of rival Tesla  (TSLA) – Get Free Report, which was heavily sanctioned on January 3 after announcing delivery figures below expectations. Tesla stock lost more than 12% during this trading session.

The Stock Is Down 83%

But Rivian, which went public with much fanfare in November 2021, has fallen dramatically in 2022. The stock is down 83% in one year. Market capitalization has shrunk by more than $75 billion. Rivian’s market value is currently at $15.3 billion  whereas it had exceeded $100 billion shortly after the IPO. This is a real disaster for shareholders.

The reasons for Rivian’s problems have been the same since the start of the year: continued disruptions to supply chains which are driving up costs and are having a colossal impact on its ambition to mass-produce vehicles. 

The carmaker also ended, a few days ago, a strategic partnership with Mercedes-Benz  (DMLRY) , which would have allowed it to penetrate the European market and reduce its costs. 

“We’ve decided to pause discussions with Mercedes-Benz Vans regarding the memorandum of understanding we signed earlier this year for joint production of electric vans in Europe,” said Scaringe on December 12. “As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments.”

Rivian is burning a lot of cash and is facing rising costs due, in particular, to soaring prices for raw materials and other logistics costs. In the short term, the end of the partnership complicates Rivian’s ambitions to compete with Tesla, which is present in three important markets – North America, China and Europe.

During the third quarter, the firm widened its losses, recording a net loss of $1.72 billion, against $1.23 billion in the third quarter of 2021. 

“Throughout the quarter, our cost of materials was impacted by inflationary pressures, which we believe will continue to have an impact on our gross margin for the near future,” Rivian said.

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The two Dmitris: A lesson for the West

Just In | The Hill 

Winston Churchill famously said that Russia was “a riddle, wrapped in a mystery, inside an enigma.” That observation may have been correct at the height of Stalinism in 1939, when Churchill uttered these words, but it’s far less appropriate today, at the height of Putinism. Russia’s dictator, Vladimir Putin, occasionally may be unpredictable, but a close reading of his statements shows that he consistently has pursued an increasingly anti-democratic, authoritarian, and fascist agenda at home and an increasingly imperial, hegemonic agenda abroad. Putin has changed, but in a predictably repressive and violent direction.

Sadly, the Russians evidently also have changed, from a people who welcomed glasnost and perestroika in the Mikhail Gorbachev years to a people who tolerate, perhaps even welcome, war and genocide in the most recent Putin years. Russian elites have followed in Putin’s and the people’s footsteps. One of the most glaring such examples among policymakers is Dmitri Medvedev, Russia’s former president and prime minister, a man who used to be known as a political moderate and now appears to be a saber-rattling extremist. An equally distressing example of a scholar who has undergone a similar sea change is another Dmitri: Dmitri Trenin.

Trenin once was the darling of European and American conferences. With his perfect English, impressive knowledge and genial smile, he charmed those who met him. “Dima,” as he was known, appeared to be a scholar and a gentleman. He also appeared to be someone who could speak evenhandedly, as well as critically, about Russia — and, of course, the West. Many people saw him as someone you could trust.

That he was always openly identified by conference organizers as a former colonel of the GRU, the foreign military intelligence agency of the General Staff of the Armed Forces of the Russian Federation, bothered no one. Some raised their eyebrows, but post-Soviet Russia seemed to be becoming a transparent country — and, besides, Dima was a former colonel, wasn’t he?

In the mid-1990s, he joined the Carnegie Moscow Center, a think tank affiliated with the prestigious Carnegie Endowment for International Peace based in Washington. In 2008, he became the director of the center. (The affiliation ended in early 2022.) Carnegie wasn’t the only feather in Dima’s cap. He served as senior research fellow at the NATO Defense College in Rome. He became a member of the International Institute for Strategic Studies in London, the Royal Swedish Academy of Military Science, and the European Leadership Network. He even participated in a Carnegie Corporation-funded project I directed on reengaging Russia.

And then came Putin’s unprovoked attack on Ukraine on Feb. 24, 2022. Push came to shove, and Dima chose to leave the Center and ally with Putin and his genocidal war. His Putinophilia evidently became so extreme that, on Nov. 30, 2022, as the war was obviously going badly for Russia, Dima out-Putined Putin by arguing that Russia should “place all of eastern, southern, and central Ukraine under its control.” Shades of Medvedev’s rhetoric!

What happened to the two Dmitris? Medvedev’s turnabout is easy to explain: A protégé of Putin, he had to march in lockstep with his master to curry favor. But how could a mild-mannered scholar like Trenin turn into someone who comes across as a rabid imperialist?

It’s perfectly possible that Dima fell for Putin’s ideological blandishments and, having suddenly seen the error of his Westernizing ways, decided to side with the Kremlin. It’s also possible that he experienced a progressive disillusionment with the “degenerate” West and then, confronted with war, opted for Mother Russia.

But there’s another, less comforting possibility: Had Trenin remained a colonel of the GRU all along? “One hundred percent,” is how a Ukrainian colleague responded when I asked him what he thought the likelihood of this would be. In other words, once in the GRU, always in the GRU?

This brings us back to Churchill’s quip. Yes, Russia can be mysterious, but it looks especially so if we view it through rose-tinted glasses. In that sense, Dima’s story isn’t about him and his possible duplicity. It’s about us — the West — and our naivete. If indeed the premise is true, we should have known better than to accept uncritically the possibility that a former colonel of the GRU could ever leave its ranks.

And that, in turn, raises a discomfiting question: Just how many liberally minded Russians might be working for Russian intelligence?

Unfortunately, although this question must be asked, asking it is corrosive, because it casts doubt on the sincerity of Russian liberals in general. On the one hand, they deserve Western support in their struggle against Putin’s dictatorship. On the other hand, thanks partly to the two Dmitris, they may always be under suspicion. There is, alas, no solution to this conundrum — which may be just what Russian intelligence wants.

Alexander J. Motyl is a professor of political science at Rutgers University-Newark. A specialist on Ukraine, Russia and the USSR, and on nationalism, revolutions, empires and theory, he is the author of 10 books of nonfiction, as well as “Imperial Ends: The Decay, Collapse, and Revival of Empires” and “Why Empires Reemerge: Imperial Collapse and Imperial Revival in Comparative Perspective.”

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