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Tight US House races in California as GOP maintains control over the chamber
Headline Topics |
2024/11/14 07:02
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Republicans and Democrats awaited the outcome of vote-counting for crucial U.S. House districts in California on Wednesday, as the GOP clinched majority control of the chamber next year with a race call in neighboring Arizona.
In a rematch from 2022, Rep. Ken Calvert — the longest-serving Republican in the state’s congressional delegation — defeated rival Democrat Will Rollins in the 41st District, which lies east of Los Angeles and was a top target for national Democrats.
In Southern California’s Orange County, Democrat Dave Min defeated Republican Scott Baugh in a closely divided swing district, ending Baugh’s bid to seize the seat being vacated by Democratic Rep. Katie Porter in what was once a conservative stronghold.
The 47th District, southeast of Los Angeles, was a top target for national Republicans looking to protect and possibly expand the their narrow majority.
Calvert, who was backed by President-elect Donald Trump, claimed his 17th term in a district narrowly carried by Trump in 2020.
“This is a hard-fought victory that shows voters want someone who will put results above partisan politics,” Calvert said in a post on the social platform X.
Min, also posting on X, said that in Congress he will “fight to protect our democracy, safeguard our freedoms and expand economic opportunity.”
Baugh said on the same platform that “despite running a strong campaign … that effort is going to come up a little short.”
On Tuesday, Republican Rep. David Valadao’s victory in California’s 22nd District moved Republicans within two wins of retaining the House gavel, with the tally 216-207 in favor of the GOP, as counting continued in a sliver of races across the country.
With Calvert’s win, the Republican tally reached 217. That became 218 on Wednesday night, securing a majority margin, as Rep. Juan Ciscomani won reelection to a seat representing southeastern Arizona. Some squeaker races remained in play in California.
In the 45th District, anchored in Orange County, Republican Rep. Michelle Steel’s lead over Democrat Derek Tran was whittled down to a few hundred votes as counting continued.
California is known as a liberal protectorate — Democrats hold every statewide office, dominate the Legislature and congressional delegation and outnumber registered Republicans by a staggering 2-1 ratio. Still, Republicans retain pockets of political clout in the Southern California suburbs and vast rural stretches, including the Central Valley farm belt.
Orange County was once considered conservative holy ground, where white, suburban homeowners delivered winning margins for Republicans year after year. It was a foundational block in the Reagan revolution. But the county has become more demographically diverse and Democratic over time, like much of the state.
The 47th District, which includes Huntington Beach and other famous surf breaks, has been occupied by Porter, a progressive favorite who in 2022 narrowly defeated Baugh, a former Republican legislator. Porter, known for grilling CEOs during Capitol Hill hearings, stepped aside to run for U.S. Senate, but lost in the primary.
Given the stakes in the closely divided district, the contest was especially rancorous. Min ads called Baugh a “MAGA extremist” who would endanger abortion rights. Baugh said Min’s “extreme liberal views” were out of step with the district.
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Ford cuts 2024 earnings guidance due to warranty costs and slow pace of cost cutting
Headline Topics |
2024/10/26 08:51
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Stubbornly high warranty expenses and lagging cost-cutting efforts are holding back Ford Motor Co.'s profits this year, causing the company to lower its full-year earnings guidance.
That pushed the company’s stock price down 6% in trading after Monday’s closing bell.
The Dearborn, Michigan, automaker, which reported third-quarter earnings Monday, said its net profit tumbled nearly 26% as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV.
Ford said it made $892 million from July through September, compared with $1.2 billion it made a year earlier.
But excluding the one-time items, the company made an adjusted pretax profit of $2.6 billion, or 49 cents per share. That beat analyst estimates of 46 cents, according to FactSet.
Revenue rose 5.5% to $46.2 billion, also beating Wall Street predictions. Ford reduced its full-year pretax income guidance to $10 billion, at the low end of the $10 billion to $12 billion it expected at the end of the second quarter, spooking investors.
“Cost, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors,” CEO Jim Farley told analysts on a conference call.
Chief Financial Officer John Lawler said warranty costs were slightly below the third quarter of last year, but still high. The company wouldn’t give numbers until it files its quarterly report with securities regulators on Tuesday but said costs will be higher than a year ago.
Ford reported $800 million of increased warranty costs for the second quarter of this year.
Farley has been trying to get a handle on warranty costs for the past four years. In October of 2020, he said the company was working to cut quality-related repairs after glitch-prone small-car transmissions hit the automaker’s bottom line.
Ford has said that it has a $7 billion cost gap with competitors, and Lawler said Monday it has made progress on that figure. The problem is competitors, which he did not identify, are cutting costs too. “We’ve taken cost out, but we’re not doing it at a pace faster than our competition,” he told analysts.
Ford has removed $2 billion in material, freight and labor costs this year, but that was offset by warranties and inflation at its Turkish joint venture, he said.
He said Ford is focused on reducing warranty and other costs, which will show up in later quarters.
The company’s plans are working, as evidenced by 10 straight quarters of revenue growth, Lawler said.
Farley said Ford has restructured its operations in Europe, South America, India and China, which collectively lost $2.2 billion in 2018 but together are profitable now. For instance, China, including exports, has contributed over $600 million to pretax earnings this year, Farley said. |
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South Korean court acquits former police chief over deadly crowd crush
Headline Topics |
2024/10/17 08:56
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A South Korean court found the former police chief of the country’s capital and two other officers not guilty over a botched response to a Halloween crowd crush that killed nearly 160 people in 2022.
The verdict by the Seoul Western District Court drew angry responses from grieving relatives and their advocates, who accused the court of refusing to hold high-level officials accountable for an incident that was largely blamed on a lack of disaster planning and an inadequate emergency response.
Kim Kwang-ho, former chief of the Seoul Metropolitan Police Agency, was the most senior police officer among more than 20 police and government officials indicted over the crush in Itaewon, a popular nightlife district in Seoul. Prosecutors had sought a five-year prison term for Kim.
An investigation led by the National Police Agency found that police and local officials failed to plan effective crowd control measures even though they expected more than 100,000 people to gather for Halloween events in Itaewon.
The investigators found that Seoul police assigned just 137 officers to Itaewon on the day of the crush. Police also ignored hotline calls placed by pedestrians who warned of swelling crowds before the surge turned deadly. Once people began getting crushed in an alley near Hamilton Hotel, police failed to establish control over the site and allow paramedics to reach the injured in time.
Some experts have called the crush a “manmade disaster” that could have been prevented with relatively simple steps like employing more police and public workers to monitor bottleneck points, enforcing one-way walking lanes, and blocking narrow pathways.
The Seoul court acquitted Kim of professional negligence, saying that prosecutors failed to prove that he had violated his duties or to establish a connection between his conduct and the high toll of deaths and injuries. The court also acquitted two lower-ranking police officers who faced similar charges.
The court stated that while Kim received status updates from various departments in his agency and the Yongsan police station about the situation in Itaewon before the crush on Oct. 29, 2022, this information would not have been sufficient for him to recognize the possibility of an incident of such magnitude.
The court also noted that Kim had instructed various police stations in Seoul, including Yongsan, to establish plans to maintain safety during Halloween celebrations.
“Based solely on evidence submitted by prosecutors, it’s insufficient to conclude that the defendants’ professional negligence and its relationship to the occurrence or escalation of this incident are fully established beyond reasonable doubt,” the court said in a statement. Relatives of the victims embraced and cried outside the court after the verdict was announced.
“This court just granted immunity to the police for whenever these kinds of incidents happen again!” one of them shouted. Others scuffled with security as they tried to approach Kim’s car as he left the court.
Itaewon Disaster Bereaved Families, a group representing the victims, said the ruling was “dishonest” and “impossible to understand” and called for prosecutors to appeal.
“We strongly condemn that the main officials of the Seoul Metropolitan Police Agency, who ignored their duties for prevention, preparation and response despite anticipating that a large crowd would develop, and who have been denying their responsibility until now, are being given a free pass,” the group said.
The same court last month sentenced the former chief of Yongsan police station, Lee Im-jae, to three years in prison and convicted two of his colleagues of professional negligence resulting in death, citing their failure to properly prepare for the crowd and respond to the crush.
The court acquitted Park Hee-young, head of the Yongsan ward office, and three other ward officials, saying that they had no legal authority to control or break up crowds.
Lee and another Yongsan police official who received a one-year sentence appealed the ruling earlier this month. The other police official had received a suspended sentence.
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Sean ‘Diddy’ Combs to stay in jail while appeals court takes up bail fight
Headline Topics |
2024/10/15 08:57
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A federal appeals court judge has ruled to keep Sean “Diddy” Combs locked up while he makes a third bid for bail in his sex trafficking case, which is slated to go to trial in May.
In a decision filed Friday, Circuit Judge William J. Nardini denied the hip-hop mogul’s immediate release from jail while a three-judge panel weighs his bail request.
Combs’ lawyers appealed to the 2nd U.S. Circuit Court of Appeals on Sept. 30 after two judges rejected his release.
Combs, 54, has been held at a federal jail in Brooklyn since his Sept. 16 arrest on charges that he used his “power and prestige” as a music star to induce female victims into drugged-up, elaborately produced sexual performances with male sex workers in events dubbed “Freak Offs.”
Combs has pleaded not guilty to racketeering conspiracy and sex trafficking charges alleging he coerced and abused women for years with help from a network of associates and employees while silencing victims through blackmail and violence, including kidnapping, arson and physical beatings.
At a bail hearing three weeks ago, a judge rejected the defense’s $50 million bail proposal that would’ve allowed the “I’ll Be Missing You” singer to be placed under house arrest at his Florida mansion with GPS monitoring and strict limits on visitors.
Judge Andrew L. Carter Jr., who has since recused himself from the case, said that prosecutors had presented “clear and convincing evidence” that Combs is a danger to the community. He said “no condition or set of conditions” could guard against the risk of Combs obstructing the investigation or threatening or harming witnesses.
In their appeal, Combs’ lawyers argued that the judge had “endorsed the government’s exaggerated rhetoric” and ordered Combs detained for “purely speculative reasons.”
“Indeed, hardly a risk of flight, he is a 54-year-old father of seven, a U.S. citizen, an extraordinarily successful artist, businessman, and philanthropist, and one of the most recognizable people on earth,” the lawyers wrote.
Combs’ lawyers have not asked the new trial judge, Arun Subramanian, to consider releasing him on bail. At a hearing Thursday, as Combs sat alongside his lawyers in a beige jail jumpsuit, Subramanian suggested he would at least be open to taking up the issue.
After setting a May 5 trial date, Subramanian briefly questioned Combs’ lawyers about his treatment at the Metropolitan Detention Center, which has been plagued by violence and dysfunction for years.
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Supreme Court grapples with governor’s 400-year veto, calling it ‘crazy’
Headline Topics |
2024/10/12 11:40
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Justices on the Wisconsin Supreme Court said Wednesday that Gov. Tony Evers’ creative use of his expansive veto power in an attempt to lock in a school funding increase for 400 years appeared to be “extreme” and “crazy” but questioned whether and how it should be reined in.
“It does feel like the sky is the limit, the stratosphere is the limit,” Justice Jill Karofsky said during oral arguments, referring to the governor’s veto powers. “Perhaps today we are at the fork in the road ... I think we’re trying to think should we, today in 2024, start to look at this differently.”
The case, supported by the Republican-controlled Legislature, is the latest flashpoint in a decades-long fight over just how broad Wisconsin’s governor’s partial veto powers should be. The issue has crossed party lines, with Republicans and Democrats pushing for more limitations on the governor’s veto over the years.
In this case, Evers made the veto in question in 2023. His partial veto increased how much revenue K-12 public schools can raise per student by $325 a year until 2425. Evers took language that originally applied the $325 increase for the 2023-24 and 2024-25 school years and instead vetoed the “20” and the hyphen to make the end date 2425, more than four centuries from now.
“The veto here approaches the absurd and exceeds any reasonable understanding of legislative or voter intent in adopting the partial veto or subsequent limits,” attorneys for legal scholar Richard Briffault, of Columbia Law School, said in a filing with the court ahead of arguments.
That argument was cited throughout the oral arguments by justices and Scott Rosenow, attorney for Wisconsin Manufacturers & Commerce Litigation Center, which handles lawsuits for the state’s largest business lobbying group and brought the case.
The court should strike down Evers’ partial veto and declare that the state constitution forbids the governor from striking digits to create a new year or to remove language to create a longer duration than the one approved by the Legislature, Rosenow argued.
Finding otherwise would give governors unlimited power to alter numbers in a budget bill, Rosenow argued.
Justices appeared to agree that limits were needed, but they grappled with where to draw the line.
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Mexican cartel leader’s son convicted of violent role in drug trafficking plot
Headline Topics |
2024/09/21 06:32
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The son of a Mexican drug cartel leader was convicted Friday of charges that he used violence, including the deadly downing of a military helicopter, to help his father operate one of the country’s largest and most dangerous narcotics trafficking organizations.
Rubén Oseguera, known as “El Menchito,” is the son of fugitive Jalisco New Generation cartel boss Nemesio Oseguera and served as the “CJNG” cartel’s second-in-command before his extradition to the U.S. in February 2020.
A federal jury in Washington, D.C., deliberated for several hours over two days before finding the younger Oseguera guilty of both counts in his indictment: conspiring to distribute cocaine and methamphetamine for U.S. importation and using a firearm in a drug conspiracy.
“El Menchito now joins the growing list of high-ranking Cartel leaders that the Justice Department has convicted in an American courtroom,” Attorney General Merrick Garland said in an emailed statement. “We are grateful to our Mexican law enforcement partners for their extensive cooperation and sacrifice in holding accountable leaders of the Jalisco Cartel.”
The younger Oseguera, who was born in California and holds dual U.S.-Mexican citizenship, is scheduled to be sentenced Jan. 10 by U.S. District Judge Beryl Howell. He faces a maximum sentence of life in prison and a mandatory minimum of 40 years in prison.
Oseguera didn’t have an obvious reaction to the jury’s verdict. One of his lawyers patted him on his shoulder before he was led out of the courtroom.
The U.S. government has offered a reward of up $10 million for information leading to the arrest of the elder Oseguera, whose alias, “El Mencho,” is a play on his first name.
Prosecutors showed jurors a rifle bearing Oseguera’s nicknames, “Menchito” and “JR,” along with the cartel’s acronym. The gun was in his possession when he was arrested.
“JR” also was etched on a belt found at the site where a Mexican military helicopter crashed after cartel members shot the aircraft down with a rocket-propelled grenade in 2015. Prosecutors said the younger Oseguera, now 34, ordered subordinates to shoot down the helicopter in Jalisco, Mexico, so that he and his father could avoid capture. At least nine people on board the helicopter were killed in the attack, according to prosecutors.
Oseguera ordered the killings of at least 100 people and frequently bragged about murders and kidnappings, according to prosecutors. They said he personally shot and killed at least two people, including a rival drug trafficker and a disobedient subordinate.
During the trial’s closing arguments Thursday, Justice Department prosecutor Kaitlin Sahni described Oseguera as “a prince, an heir to an empire.”
“But this wasn’t a fairytale,” she said. “This was the story of the defendant’s drugs, guns and murder, told to you by the people who saw it firsthand.”
Jurors heard testimony from six cooperating witnesses who tied Oseguera to drug trafficking.
Defense attorney Anthony Colombo tried to attack the witnesses’ credibility and motives, calling them “sociopaths” who told self-serving lies about his client.
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Alaska high court lets man serving a 20-year sentence remain in US House race
Headline Topics |
2024/09/12 11:08
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The Alaska Supreme Court ruled Thursday that a man currently serving a 20-year prison sentence can remain on the November ballot in the state’s U.S. House race.
In a brief order, a split court affirmed a lower court ruling in a case brought by the Alaska Democratic Party; Justice Susan Carney dissented. A full opinion explaining the reasoning will be released later.
Democrats sued state election officials to seek the removal from the ballot of Eric Hafner, who pleaded guilty in 2022 to charges of making threats against police officers, judges and others in New Jersey.
Hafner, who has no apparent ties to Alaska, is running as a Democrat in a closely watched race featuring Democratic U.S. Rep. Mary Peltola and Republican Nick Begich. Hafner’s declaration of candidacy listed a federal prison in New York as his mailing address.
Under Alaska’s open primary system, voters are asked to pick one candidate per race, with the top four vote-getters advancing to the general election. Hafner finished sixth in the primary but was placed on the general election ballot after Republicans Lt. Gov. Nancy Dahlstrom and Matthew Salisbury, who placed third and a distant fourth, withdrew.
John Wayne Howe, with the Alaskan Independence Party, also qualified.
Attorneys for Alaska Democrats argued that there was no provision in the law for the sixth-place finisher to advance, while attorneys for the state said that interpretation was too narrow.
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