• Is the FY25 outlook for Fortescue shares compelling?

    Female miner standing next to a haul truck in a large mining operation.

    The Fortescue Ltd (ASX: FMG) share price has slid 20% over the past month, as the chart below shows. With this lower market capitalisation, investors are being offered better value when buying Fortescue shares. Does the FY25 outlook mean it’s a good time to dig into the ASX iron ore share?

    It’s not surprising that investors aren’t feeling as optimistic – the iron ore price has dropped from US$117 per tonne at the end of May to US$107 per tonne now.

    A decline in the commodity price is bad news for miners – mining costs don’t usually change much from month to month, so a reduction in revenue for the same amount of production usually results in a large decline in net profit.

    Where will the iron ore price go next? No one can know for certain – commodity prices are both unpredictable and sometimes cyclical.

    Iron ore price to rebound?

    Trading Economics recently reported that economic data from China is adding to pessimism about the outlook for iron ore demand.

    Chinese house prices in 70 cities declined by 3.9% year over year in May, the largest decline since 2015.

    Another negative was that ‘fixed asset investment’ was lower than expected, which Trading Economics said unscored the “rout in the property market and consumers’ reluctance to purchase real estate.”

    Chinese officials have been trying to reduce the country’s growing housing inventory with various measures rather than supporting Chinese property developers in financial strife. Those developers are typically some of the world’s largest users of steel and, therefore, iron ore, so their struggles can have a knock-on effect on the iron ore industry.

    Finally, Trading Economics noted there was “muted” industrial demand in China, which was another headwind for iron ore because the hope was that “higher manufacturing growth would drive infrastructure-stemmed steel demand to offset the rout in construction.”

    However, it’s worth noting the iron ore price has fallen to approximately US$100 per tonne (or below) a number of times over the past five years and then rebounded, though past performance is not a reliable indicator for the future.

    Having said that, Trading Economics’ macro models and analyst expectations suggest the iron ore price could reach US$126 per tonne in 12 months. If that happens, it could increase the company’s profitability and fund larger dividends.

    FY25 earnings estimate

    The broker UBS, which is less optimistic about the iron ore price, has outlined in a note its expectations for Fortescue’s FY25 numbers. UBS thinks the iron ore price will be around US$113 per tonne over the rest of the 2024 calendar year.

    UBS forecasts Fortescue could see revenue of US$17.1 billion and net profit after tax (NPAT) of US$5.3 billion in FY25, with that profit forecast representing a possible year over year decline of 15%. The dividend per share could fall more than 23% year over year to A$1.28 per share.

    Fortescue isn’t expected to be producing green hydrogen meaningfully in FY25, so its efforts with green energy may not be material yet for Fortescue shares.

    If the iron ore price is stronger than expected during the 2025 financial year, it could mean better financials than what UBS is predicting, but that would likely require an uptick in demand from China, which doesn’t seem certain at this stage.

    The post Is the FY25 outlook for Fortescue shares compelling? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Fortescue Metals Group right now?

    Before you buy Fortescue Metals Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue Metals Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Buy these ASX income shares next week

    There are a lot of ASX income shares out there for investors to choose from at present.

    Two that are highly rated are named below. Here’s what analysts are saying about them:

    Cedar Woods Properties Limited (ASX: CWP)

    Analysts at Morgans are positive on this property company and think it could be an ASX income share to buy.

    The broker has Cedar Woods’ shares on its best ideas list with an add rating and $5.60 price target.

    Its analysts believe the company’s shares are undervalued and deserve to trade on higher multiples. They said:

    CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

    In respect to income, Morgans is forecasting dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.60, this will mean dividend yields of 3.9% and 4.35%, respectively.

    Healthco Healthcare and Wellness REIT (ASX: HCW)

    Another ASX income share that could be a buy next week is the Healthco Healthcare and Wellness REIT.

    Bell Potter is a big fan of the health and wellness focused property company and has a buy rating and $1.50 price target on its shares.

    It believes that recent weakness has created a compelling buying opportunity for investors. The broker said:

    HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

    As for dividends, Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on its current share price of $1.15, this would mean generous yields of 6.95% and 7.2%, respectively.

    The post Buy these ASX income shares next week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Cedar Woods Properties Limited right now?

    Before you buy Cedar Woods Properties Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cedar Woods Properties Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • What’s ahead for ASX 200 travel shares in FY 2025?

    With just one week left in FY 2024, we polish our crystal ball to gauge what investors can expect from S&P/ASX 200 Index (ASX: XJO) travel shares in FY 2025.

    Before we turn to that, though, here’s how ASX 200 travel shares have performed over the past 12 months:

    • Qantas Airways Ltd (ASX: QAN) shares are down 5%
    • Flight Centre Travel Group Ltd (ASX: FLT) shares are up 1%
    • Webjet Ltd (ASX: WEB) shares are up 25%
    • Corporate Travel Management Ltd (ASX: CTD) shares are down 27%.

    This very mixed bag of results compares to a one-year gain of 6% posted by the ASX 200.

    Now, here’s what could help or hinder the big Aussie travel companies in the year ahead.

    A new financial year for ASX 200 travel shares

    Looking ahead to FY 2025, each of the ASX 200 travel shares will obviously face its own company-specific headwinds and tailwinds.

    But all of them depend on a robust travel sector to keep their customers and revenue flowing.

    With that in mind, the first thing to keep an eye on is fuel costs. Jet fuel accounts for some 20% of airlines’ annual expenses, so higher or lower fuel costs will impact Qantas shares directly.

    But Webjet, Corporate Travel Management and Flight Centre will also be impacted as airlines will pass on any major cost increases or declines to travellers, influencing the amount of business these companies can expect.

    On that front, the Brent crude oil price ended the week back above US$85 per barrel. With record US output balancing out the current OPEC+ production cuts, and with OPEC+ intending to ease out of those cuts in Q2 FY 2025, I don’t expect the oil price will sustainably hold above US$90 in the year ahead. Keeping a cap on fuel prices should help support the outlook for ASX 200 travel shares.

    The industry is also susceptible to what happens with the global conflicts currently raging in various corners of the world. Should these escalate or new conflicts erupt, that would likely put a dent in international travel. And it could drive energy costs higher as well.

    Growing tailwinds?

    All of the ASX 200 travel shares are likely to get a boost from various government cost-of-living relief measures and the stage 3 tax cuts in FY 2025. If inflation comes down and the RBA begins to cut interest rates, it could usher in a big boost for the sector.

    And another potential boost across the board for ASX 200 travel shares in FY 2025 is the potential for a big uptick in travellers to and from China.

    This comes after China just agreed to add Australians to those citizens who can travel to the Middle Kingdom visa-free for up to 15 days. Australia’s government is offering some reciprocal measures.

    The post What’s ahead for ASX 200 travel shares in FY 2025? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Corporate Travel Management Limited right now?

    Before you buy Corporate Travel Management Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Corporate Travel Management Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Trump thinks he can peel voters away from Biden in Democratic-heavy Philadelphia. Here’s how he plans to do it.

    Donald Trump
    Former President Donald Trump speaks to supporters during a rally in Pennsylvania.

    • Trump on Saturday is headlining a rally at Temple University in deep blue Philadelphia.
    • The former president hopes to make inroads with Biden's base of Black voters.
    • Trump has focused his campaign message on the economy. But Biden retains deep ties to the city.

    For former President Donald Trump, few states anchor his potential path back to the White House more than Pennsylvania.

    The former president lost the Keystone State to Biden by 1% in the 2020 election after narrowly winning the state over former Secretary of State Hillary Clinton in 2016.

    And a huge part of why Biden won in 2020 was his strong margins in the Philadelphia area — the city and its affluent suburbs — which offset the substantial edge Trump enjoyed.

    But Biden has struggled over the past year to reactivate the liberal-leaning coalition that sent him to the White House four years ago. Support among Black and Hispanic voters is particularly shaky.

    It's part of why Trump will speak at Temple University on Saturday in Philadelphia. He hopes to woo voters who may not have considered him in the past and may be up for grabs in November. He'll also be joined by Pennsylvania GOP Senate nominee David McCormick, who'll face veteran Democratic Sen. Bob Casey Jr. in the fall.

    Here's a look at how Trump is looking to win over these voters and the deep challenges that he faces in doing so.

    It's all about the economy…

    Pennsylvania's unemployment rate has sat at 3.4% for eight consecutive months as of May 2024, according to the Pennsylvania Department of Labor & Industry.

    That's below the current US unemployment rate of 4%.

    But similar to most national polls, Trump leads Biden on the question of which candidate would better handle the economy. In the most recent New York Times/Philadelphia Inquirer/Siena College poll conducted in late April and early May, Trump had a 12-point advantage over Biden on the issue among registered voters. And only 21% of respondents said the US economy was "good" or "excellent," while 78% described it as "fair" or "poor."

    Trump is banking that many Democratic-leaning voters, who rate inflation and elevated housing costs as major concerns, could give him a lift in Philadelphia — a city where voters gave 81% of their votes to Biden in 2020.

    In 2020, Biden won Pennsylvania by roughly 80,000 votes out of more than 6.9 million ballots cast. And over 604,000 of those ballots cast for Biden came from Philadelphia voters. So any small movement toward Trump, especially among Biden's base of Black support in the city, could have dramatic implications for the statewide results.

    … but Biden's Philly ties run deep

    There's perhaps no city outside of Delaware that Biden loves to visit more than Philadelphia.

    He's lavished attention on the City of Brotherly Love — paying particularly close attention to its Black voters and union workers — before and during his presidency. As a US Senator from Delaware who resided in Wilmington, he was only miles away from Pennsylvania's largest city.

    So he has a natural relationship with many elected Democrats and union leaders. He can easily find himself among receptive audiences in the city's numerous Black churches, where a loyal base of older Black voters are overwhelmingly supporting his bid for a second term.

    Biden has stumbled with younger Black voters over issues like the conflict in Gaza and student-loan debt relief. And many young voters overall are largely unaware of his work on climate issues. But it would take a huge electoral shift — which can often take several cycles to come to fruition — for Biden to be seriously in danger of losing a large chunk of his Philadelphia base.

    So far, many down-ballot Senate Democratic candidates like Casey are outperforming their GOP challengers in critical races across the country. It's something that the Trump campaign is surely noticing as they look to flip Pennsylvania.

    Right now, the statewide race is incredibly tight. And Philadelphia is poised to once again have its say in the outcome.

    Read the original article on Business Insider
  • Surely CBA shares can’t just keep rising?

    A woman looks questioning as she puts a coin into a piggy bank.

    The Commonwealth Bank of Australia (ASX: CBA) share price has shown strong performance recently, with a rise of over 30% since the beginning of November 2023, as shown on the chart below. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has risen 14% in the same time period.

    CBA has climbed alongside the other major ASX bank shares, including National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

    Does the rise make sense? As John Maynard Keynes once said:

    The market can stay irrational longer than you can stay solvent

    Does the recent performance justify investor enthusiasm?

    It’s a strange surge for the banking sector, considering the ongoing banking challenges remain. The net interest margin (NIM) (lending profit after funding costs) is drifting lower, arrears are climbing, competition is strong and credit demand is not strong.

    In the FY24 third quarter update, cash net profit after tax (NPAT) declined 5% year over year to around $2.4 billion.

    CBA noted its net interest income was challenged because of “lower net interest margins primarily from continued competitive pressures and customers switching to higher yielding deposits.”

    It said there was “improved momentum” in volume growth across home lending and household deposits. Home loans grew by $4.2 billion, at 0.7 times the system, for the three months to March 2024.

    CBA also revealed its loan arrears are increasing – the percentage of home loans that are at least 90 days overdue increased to 0.61% at March 2024, up from 0.52% at December 2023, 0.44% at March 2023 and 0.43% at December 2022.  

    Despite that backdrop, the CBA share price has delivered this rise. It’s now very expensive on typical valuation metrics.

    According to the independently provided forecasts on Commsec, the CBA share price is valued at 22x FY24’s estimated earnings and 22.5x FY25’s estimated earnings – earnings per share (EPS) is expected to drop around 2.5% in FY25 amid the challenges I’ve talked about.

    My take on the CBA share price

    In my opinion, CBA is definitely one of the highest-quality banks in Australia, along with Macquarie Group Ltd (ASX: MQG) and probably NAB.

    It has done well growing profit over the last decade despite the challenges, and I applaud its efforts to expand in business banking, where it can diversify and grow its earnings.

    I don’t think CBA shares offer good value here, but I would have said that when the CBA share price was at $120 (and it’s above $127 now).

    There is one main reason the CBA share price keeps rising – there is stronger buying demand than selling. It’s hard to say who is driving the buy, but I wouldn’t be surprised if it’s investors who are not entirely focused on valuation.

    ASX-focused exchange-traded funds (ETFs), such as Vanguard Australian Shares Index ETF (ASX: VAS), must buy the shares in their index if people give the fund provider money.

    Also, Australians collectively continue to contribute billions of dollars to their superannuation fund, such as AustralianSuper, which must allocate that money in accordance with the super member’s investment allocation wishes, which typically would include a sizeable portion to Australian shares.

    There is a lot of capital in Australia that is looking for a home every month or three months. So, it’s possible the CBA share price could keep rising, even if the valuation isn’t appealing.

    The post Surely CBA shares can’t just keep rising? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you buy Commonwealth Bank Of Australia shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • The Justice Department is coming for AI: ‘If your AI fixes prices, you’re just as responsible’

    A flag waves outside the federal Department of Justice building in Washington, DC
    The US Department of Justice is cracking down AI.

    • The Justice Department is cracking down on anticompetitive uses of artificial intelligence.
    • The DOJ has been investigating RealPage for using AI algorithms to set high prices since 2022.
    • The investigation comes amid the Biden administration's wider antitrust crackdown on Big Tech.

    AI can make many things easier for companies, including price fixing.

    The Department of Justice is now cracking down on such anticompetitive uses of the buzzy new technology.

    That means practices like setting prices above the market rates, colluding with rivals, and striking exclusionary deals are unlawful — whether humans or algorithms are behind them.

    The Justice Department has been concerned about AI's impact on antitrust litigation for at least the past few years.

    Since 2022, it has been investigating RealPage, a rental property management software company, for instance, for using AI algorithms to set prices above competitive levels.

    The Justice Department says the company used sensitive and private data in an algorithm under the expectation that its competitors would do the same. That practice, it says, should be judged under the same guidelines as humans. "Automating an anticompetitive scheme does not make it less anticompetitive," the agency said in a statement from 2023.

    This focus on anticompetitive uses of AI comes amid a broader spate of investigations and antitrust lawsuits the Biden Administration has launched against major tech companies like Google, Apple, Amazon, and Microsoft.

    In the long term, algorithms will likely be even more important to litigate because they can process more information than humans.

    "If your AI fixes prices, you're just as responsible," Assistant Attorney General Jonathan Kanter told The New York Times in reference to the RealPage probe. "If anything, the use of AI or algorithmic-based technologies should concern us more because it's much easier to price-fix when you're outsourcing it to an algorithm versus when you're sharing manila envelopes in a smoke-filled room."

    That means stricter regulations around the use of AI — and stricter penalties for its misuse — could be coming.

    At the American Bar Association's annual gathering on white-collar crime this March, Deputy Attorney General Lisa Monaco said the Justice Department's focus on AI means prosecutors will impose "stiffer sentences" on individuals and corporations that misuse AI for white-collar crime, according to the Associated Press.

    And compliance officers, who ensure companies adhere to legal regulations, should "take note," she said. "When our prosecutors assess a company's compliance program — as they do in all corporate resolutions — they consider how well the program mitigates the company's most significant risks. And for a growing number of businesses, that now includes the risk of misusing AI."

    Read the original article on Business Insider
  • Tesla Cybertrucks vandalized in Florida with some choice messages attacking Elon Musk

    Tesla Cybertruck
    Tesla Cybertruck.

    • Dozens of Tesla Cybertrucks were vandalized in Fort Lauderdale, Florida, this week.
    • The Cybertrucks were spray painted with a message attacking Tesla CEO Elon Musk.
    • Cybertrucks have become a symbol of ire for Elon Musk's many critics.

    Tesla Cybertrucks have become symbolic. But probably not in the way Tesla CEO Elon Musk hoped.

    Nearly three dozen Cybertrucks were vandalized this week in Florida with disparaging messages aimed specifically at Musk.

    A 35-second viral video showing the aftermath of the vandalism spree in a Fort Lauderdale parking lot first gained traction on Instagram on Friday.

    The footage — shared to the Only in Broward account — showed a fleet of Cybertrucks with the phrase "Fuck Elon" spray painted across the metallic exteriors. The man filming the video said Tesla recently leased the parking lot, and Cybertrucks began arriving three days ago.

    "Looks like someone doesn't like Elon…" the caption read.

    Elon Musk on a red carpet.
    Elon Musk.

    Local authorities told NBC Miami that 34 vehicles had been vandalized within the parking lot, which housed Cybtertrucks and other Tesla models.

    The person who called the authorities said the vehicles were in fine condition on Thursday night but were damaged by Friday morning, the outlet reported.

    The vehicles were quickly cleaned or taken off the lot.

    Representatives for Tesla did not respond to a request for comment from Business Insider.

    Tesla began delivering Cybertrucks to the general public in November 2023. Cybertrucks start at $60,990 for rear-wheel drive and increase to $79,990 for all-wheel drive. The Cyberbeast, which can reach 130 mph and tow 11,000 lbs, costs an estimated $99,990.

    While Tesla Cybertrucks have received a decidedly mixed response in the United States, they have been embraced elsewhere.

    The Dubai Police General Command added a Cybertruck to its fleet of patrol vehicles this month. Musk and the official Cybertruck account applauded the decision on X.

    "Very cool to see — thanks for the trust!" the Cybertruck account wrote.

    Tesla has faced a string of bad news in recent months. The automaker slashed 10% of its global workforce in April and laid off more workers in the weeks after. And some traders say the company's stock is overvalued. One short-seller recently called Tesla's stock was one of the "biggest stock market bubbles" in history.

    Read the original article on Business Insider
  • Apple’s big AI rollout is looking a lot smaller

    Apple WWDC 2024
    Apple Intelligence

    • Apple went big with its reveal of Apple Intelligence, its AI offering, earlier this month.
    • But Apple Intelligence is only available on the latest iPhone models.
    • And it likely won't be available in some of the company's largest markets anytime soon.

    At one of its splashiest product reveals in recent history, Apple unveiled its new AI push, called Apple Intelligence, with great enthusiasm earlier this month.

    But the new tech's big rollout is turning out to be a lot more limited than that fanfare implied.

    Apple Intelligence is only available on the company's newest and most expensive phones. And it might not even make it to some of Apple's biggest markets.

    Apple Intelligence will be "built into your iPhone, iPad, and Mac to help you write, express yourself, and get things done effortlessly," Apple boasts.

    But the tech, which will arrive in beta form this fall, will debut only on the "iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac with M1 and later" versions.

    It also faces hurdles in China, one of the iPhone maker's most important markets. Apple Intelligence uses ChatGPT, a product of OpenAI that isn't allowed in China as Beijing regulators prioritize Chinese AI developers. Apple is negotiating with local Chinese companies to try and find another way into the market, Business Insider previously reported.

    Apple is also postponing its release of Apple Intelligence in the European Union amid regulatory scrutiny. The EU put Apple on notice earlier this year to ensure the company's products comply with the Digital Markets Act, which is the bloc's attempt to hold major tech "gatekeepers" accountable and promote healthy competition. Apple said it is working to "find a solution that would enable us to deliver these features to our EU customers without compromising their safety," CNBC reported.

    Beyond regulations, tech companies are also navigating what users do and don't want from AI. Companies like Meta and Google have faced user backlash over the intrusiveness — and usefulness — of their new AI features.

    Some Facebook and Instagram users have grown frustrated by Meta AI, for instance, a feature shoehorned into the search bar and impossible to opt out of. Similarly, Google rolled out and then scaled back its AI-generated answers in search after its bot suggested users consume glue.

    So maybe Apple's limited rollout is for the best, for now.

    Read the original article on Business Insider
  • Ted Cruz says Biden is breaking the law by taking credit for infrastructure projects

    President Joe Biden speaks to a crowd about his economic and infrastructure plans on January 4, 2023 in Covington, Kentucky.
    President Joe Biden speaks to a crowd in Kentucky about his economic and infrastructure plans.

    • Sen. Ted Cruz has an issue with signage touting projects funded by the 2021 infrastructure law.
    • Construction sites across the US note that projects were made possible by the Biden-signed law.
    • "These displays are nothing more than campaign yard signs," Cruz argues.

    Across the United States, scores of construction sites are emblazoned with signs that read: "Project Funded By President Joe Biden's Bipartisan Infrastructure Law."

    For many people, it's an innocuous notation of the thousands of projects financed by the sweeping $1.2 trillion infrastructure law Biden signed into law in 2021 and was backed by both Democrats and a sizable contingent of Republicans.

    Texas Sen. Ted Cruz was not one of them.

    Cruz is now pushing for a government probe into whether the Biden administration has run afoul of the Hatch Act by using taxpayer funds to promote the law's impact, according to Politico.

    In a letter obtained by Politico, Cruz argues that the Biden administration has "highly politicized" the infrastructure law, pointing to the signs that explicitly state that projects were made possible by the legislation and include the president's name.

    Cruz, in the letter, then argues that Biden "unilaterally rebranded" the bipartisan infrastructure law as "President Biden's Bipartisan Infrastructure Law," which passed the House by 228-206 votes and the Senate by 69-30 votes.

    "I write to refer this to you for investigation as a possible violation of the Hatch Act, federal law that broadly prohibits using taxpayer dollars for campaign activity," Cruz said in the letter addressed to the Office of the Special Counsel's Hampton Dellinger. "Congress, not President Biden, wrote [the infrastructure law], and it did not do so to aid the President's reelection campaign."

    "These displays are nothing more than campaign yard signs courtesy of the American taxpayer," the senator added, according to Politico.

    Cruz vociferously opposed the law and voted against its passage.

    White House spokesperson Robyn Patterson told Politico in a statement that the project signs "promote transparency and inform taxpayers how federal dollars are being spent."

    "If Senator Cruz were half as concerned about Texas kids getting safe drinking water as he is about signs, he might have voted for the Infrastructure Law and to send $31 billion to tackle essential infrastructure needs across Texas," the statement added.

    According to Politico, Cruz also said the "Investing in America" logo was "purposefully designed to look like the Biden-Harris campaign logo."

    The infrastructure law — by far Biden's signature domestic accomplishment — is being touted by the president himself and Democratic candidates on the campaign trail as one of their biggest legislative wins.

    The law provided federal funding for long-awaited upgrades for bridges and tunnels, highways, and rail infrastructure, among other projects.

    Biden aims to set himself apart from former President Donald Trump on the issue. In 2016, Trump ran on enacting a broad infrastructure plan, but during his term in the White House, he never proposed a workable bil for lawmakers.

    Still, Biden has hit a wall on the issue ahead of the November election, as some voters remain skeptical of the law's effectiveness — while a significant slice isn't giving him much credit for it at all.

    A Politico-Morning Consult Poll conducted in April showed that 40% of registered voters gave Biden the edge on infrastructure upgrades and job creation, while 37% of respondents gave Trump the advantage. And in the seven battleground states, Biden's edge over Trump on the issue was just six points (42% to 36%).

    Read the original article on Business Insider
  • Russia launches ‘massive’ attack on Ukraine’s power grid, the 8th in just 3 months, Ukraine’s energy ministry says

    A worker at a power plant, tries to repair damages after a Russian attack in central Ukraine, Jan. 5, 2023.
    A worker at a power plant after a Russian attack in central Ukraine in January 2023.

    • Russia launched a "massive" attack on Ukraine's power grid overnight.
    • Russia has increasingly targeted Ukrainian energy infrastructure as the war has progressed.
    • This latest attack marks the eighth since March, Ukraine's energy ministry said.

    Russia launched a "massive" attack on Ukraine's power grid overnight as it continues to target the country's energy infrastructure, Ukraine's energy ministry announced on Telegram.

    The latest attack marks the eighth time Russian forces have targeted Ukraine's power grid since March, the ministry added.

    Ukraine's air force said Russia launched 16 missiles and 13 drones in the attack, which targeted a number of different regions.

    While the air force said Ukraine's air defense systems were able to take down 12 of the missiles and all of the drones, two workers were injured in strikes in Zaporizhzhia in southeastern Ukraine, and some equipment was damaged.

    Russian targeting of Ukrainian energy infrastructure has also caused mass blackouts across Ukraine this year.

    Russia has switched up its tactics from previous attempts to attack the power grid, aiming to strike energy generation infrastructure instead of electricity substations.

    "We urgently need to close our skies or Ukraine faces a serious crisis this winter," Maxim Timchenko, the CEO of DTEK, a Ukrainian energy company, said following the latest attacks, per the BBC. "My plea to allies is to help us defend our energy system and rebuild in time."

    Ukrainian President Volodymyr Zelenskyy has urged Ukraine's allies to provide more air defense systems as his forces attempt to repel such attacks, saying they required at least "seven more 'Patriots' or similar air defense systems."

    Ivan Fedorov, the governor of Zaporizhzhia, echoed this in a post on Telegram following the latest attack.

    "At night, Russians attacked Zaporizhzhia region again," he wrote. "The enemy will not stop. Ukraine needs air defense systems."

    In April, Business Insider reported that Ukraine's low stocks of air defense missiles were leaving even the country's best-protected cities increasingly vulnerable to attack after Russia was able to strike a major power plant near Kyiv.

    The Associated Press reported earlier this month that the US had agreed to send a second Patriot air defense system to Ukraine, citing two US officials.

    Business Insider contacted Ukraine's energy ministry for comment.

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