Technology Company Foxconn Is Rethinking Its $10 Billion Wisconsin Factory Amid Trump’s China Trade War

(Bloomberg) — Foxconn Technology Group is re-thinking its approach to a cutting edge display factory in Wisconsin that was part of a promise to create 13,000 jobs in the U.S.

There are no plans to scrap the facility but the company is considering what liquid-crystal display technology is best suited for the $10 billion plant, Louis Woo, special assistant to Chairman Terry Gou, said on Wednesday. Reuters reported earlier that the company could scale back LCD production plans or even abandon them.

Foxconn and U.S. President Donald Trump unveiled the Wisconsin project with much fanfare in 2017 as the Taiwanese company extracted a raft of incentives from the state, although some were forfeited last year after falling short of hiring goals. Gou’s company is in a particularly precarious position as the U.S. and China wage an escalating battle over trade. It does most of its manufacturing in the mainland, sells products to Americans and faces pressure from both sides to maintain or create new jobs.

“Given global economic conditions and the trade tensions between China and the U.S., we have to be responsible to our employees and customers, and it’s impossible that we can always stay committed to our original plan without any change,” Woo said. “There is no scrapping of our plans. We are upholding our commitment to Wisconsin.”

Doubt has been growing about Foxconn’s ability to meet its hiring commitments. Gordon Hintz, minority leader in the Wisconsin State Assembly, expressed concerns that Foxconn would fall far short, under a deal regarded as the richest tax credit, exemption, and subsidy package in state history.

The concern came into focus in a letter to the Wisconsin Economic Development Corporation, in which Foxconn confirmed it missed job-creation targets for 2018.

Foxconn, Apple Inc.’s main manufacturing partner, is also dealing with a slowdown in demand for iPhones. Its main listed business Hon Hai Precision Industry Co. gets about half its revenue from Apple, which is struggling to staunch declines in revenue, particularly in the pivotal Chinese market. In November, Bloomberg News reported Foxconn is planning a steep reduction in its expenses in 2019.

Taipei-based Foxconn assembles everything from iPhones and laptop computers to Sony Corp. PlayStations at factories in China and around the world. Beyond the slowing smartphone market, it’s grappling with an uncertain economic climate as U.S.-Chinese trade tensions escalate. Hon Hai in November posted earnings about 12 percent below expectations.

Fortnite Is Still Wreaking Havoc On the Video Game Industry

(Bloomberg) — Take-Two Interactive Software Inc. and Electronics Arts Inc. both tanked in U.S. trading after the video-game publishers posted disappointing numbers, yet another sign that the phenomenal success of Fortnite is looming large on the industry.

Take-Two, the maker of Grand Theft Auto, said revenue in the quarter ending in March will be $450 million to $500 million, when analysts anticipated $609.1 million. Its shares slumped as much as 14 percent, the most since December 2009, while Electronic Arts dropped 16 percent following a similar shortfall late Tuesday. Rivals Ubisoft Entertainment SA and Activision Blizzard Inc. also fell.

Game publishers have been thrown for a loop by the phenomenal success of Fortnite, a shooting game from Epic Games Inc., which counts Chinese social media giant Tencent Holdings Ltd. as a major shareholder. The game uses a “battle royale” format that lets users start a new competition immediately after they are eliminated, an addictive feature that keeps users playing — and just hanging out chatting — for hours on end. Netflix Inc. said last month it considered Fortnite among its biggest competitors in vying for consumers’ attention.

However, some analysts see reason to be upbeat on the sector. Fortnite’s growth appears to have stalled, analyst Robert Berg of Berenberg wrote in a report, and the “maximum pain” year-on-year will be felt from March 2018 to 2019.

“We believe that recent share price performances and current valuation multiples suggest structural uncertainty which to us is far from the reality,” he wrote. “In fact, the video-game segment is in rude health.”

There was some positive news from Take-Two, whose earnings beat estimates for last quarter. The bright spot was Red Dead Redemption 2, which immerses players in a cinematic, western-themed world. It has sold more than 23 million copies since its release in October.

EA wasn’t so lucky. Its latest Battlefield title flopped during the holiday season, drowned out by Fortnite and Red Dead. Upgrades to the Battlefield game are coming, including a Fortnite-style battle-royale mode, but they won’t come in time to save the current quarter, when net revenue will reach $1.17 billion, EA said on Tuesday. That compared with the $1.47 billion average of analysts’ estimates.

“It’s always a battle, for time more than a battle for money,” EA Chief Financial Officer Blake Jorgensen said in an interview.

Scientists May Have Found Another Black Hole in the Milky Way

Scientists have found evidence that a mid-sized black hole about 100,000 times more massive than the sun is hiding within the Milky Way, a discovery that could shed new light on the process by which galaxies grow.

Astronomers in Japan collected data supporting the black hole’s existence while exploring a cloud of molecular gas located near the center of the Milky Way, in which the gas moved at vastly different speeds. As they studied the cloud, the researchers saw a clump of gas toward the center of the cloud that appeared to be moved around by massive gravitational forces, they said in a Nature Astronomy report published Monday. (Black holes emit no light of their own, so in order to find them, scientists often look for evidence of nearby gravitational disruptions.)

Located near the clump of gas was a source of radio waves resembling those of Sagittarius A, the massive black hole at the center of the Milky Way, Science reports. The similarities could indicate the existence of a mid-sized black hole, the researchers say. While scientists have data supporting the existence of supermassive and small black holes, Science reports they lacked evidence of the mid-sized variety.

The scientists said the black hole could have formed after a former core of a dwarf galaxy was absorbed by the Milky Way. If the discovery is confirmed, it would support the theory that galaxies grow by “cannibalizing their smaller neighbors,” the researchers wrote.

Sears Could Stay Open Thanks to a $5 Billion Bankruptcy Auction Bid

(Bloomberg) — Eddie Lampert won a bankruptcy auction for Sears with a plan that will keep the bankrupt retailer in business and seek to save tens of thousands of jobs, according to a person with knowledge of the discussions.

Lampert’s bid prevailed over competing proposals from liquidators that would have forced the 126-year-old department store chain to shut down and sell its assets. The bid is valued at over $5 billion and represents an improvement of more than $150 million over the hedge fund manager’s previous offer, the person said, asking not to be identified because the talks are confidential.

The agreement, reached in the wee hours of Wednesday, caps two days of discussions behind closed doors in New York to determine whether Sears would be worth more dead or alive. Sticking points during the talks had included whether Sears Chairman Lampert should be insulated from lawsuits over his previous turnaround deals for the company, Bloomberg previously reported. The final agreement doesn’t include such a release for Lampert, the source said.

Representatives for Sears Holdings and at ESL Investments, the hedge fund run by Lampert that made the offer, didn’t immediately respond to a request for comment outside business hours. The agreement still needs to be approved by the U.S. judge overseeing the bankruptcy.

Turnaround Challenge

ESL is Sears’s biggest shareholder and creditor. Lampert now faces the challenge of returning a slimmed-down version of the company to profitability, after billions of losses under his management.

The winning bid is the latest in Lampert’s long list of maneuvers to turn the company around. Since engineering the $12.3 billion acquisition of Sears by Kmart in 2005, Lampert has shuttered hundreds of money-losing stores, cut more than $1 billion in annual expenses, and spun off units such as Lands’ End Inc.

The retailer, for years called Sears, Roebuck & Co. and famous for its massive catalog, boomed in the decades after World War II along with a growing middle class. But it wasn’t able to keep up with shifting consumer habits as online rivals including Amazon.com Inc. siphoned off shoppers, while turnaround efforts were hobbled by mountains of debt.

Sears sold everything from Craftsman tools to Kenmore appliances, but it lost its footing in the 1980s with expansions into financial products such as banking, mortgages, insurance and credit cards. Walmart Inc. supplanted Sears as the biggest retailer in the early 1990s.

The company was started by Richard Sears, a train station agent in Minnesota who began selling watches by mail in 1886, according to its website. He soon partnered with watch repairman Alvah Roebuck.

Why America’s Founders Tried to Recruit a Foreign Prince to Be Their King—And How That Moment Holds a Warning for Today

Authoritarianism is on the rise throughout the world, from Russia to Turkey to Hungary. Even in the United States, 37% of Americans have lost faith in democracy and shockingly one in six is ready for a military dictatorship. And yet Americans often assume that they are thoroughly protected by our remarkable system of checks and balances, put in place by the Founding Fathers.

But we must do more than rely on faith in the genius of the Revolutionary generation: we should heed their advice to be ever vigilant at defending our republic against any populism and reaction that could erode our liberties. For even the Founders themselves were susceptible to the siren song of the strong man. Or so, at least, is the lesson of the little-known story of their offer to a European prince to become the monarch of the United States.

The years immediately following the victory over the British at Yorktown bordered on anarchy, in the words of General George Washington. Under the Articles of Confederation, the extremely weak Continental Congress had been so dysfunctional as to have almost lost the war itself. The chaos of governing was too much and became a crisis when veterans — unpaid because the government had no funds to give them — rebelled under Daniel Shays. Offered a glimpse of the rule of the mob, the new nation’s horrified leaders were determined to strengthen the executive power. And the most familiar form of a strong executive was a monarch.

And so it was that in 1786, the President of the Continental Congress, Nathaniel Gorham — a son of Massachusetts, the hotbed of anti-royalism — wrote on behalf of the government to Prince Henry, younger brother of the Prussian king, Frederick the Great.

The 13th son of King Wilhelm III, Henry had been made a colonel at the age of 14 and proved himself to be an extremely talented commander as well as an enlightened leader like his older brother, an erudite gentlemen interested in art and ideas. The Americans had a positive view of Prussia in general and Henry in particular because of Friedrich von Steuben, a volunteer who fought at Valley Forge and a veteran of the prince’s own wars. It was likely von Steuben who recommended the young Hohenzollern royal to Alexander Hamilton.

In the letter, now lost, Henry was invited to cross the Atlantic and become the king of the United States of America.

He was to have been head of a constitutional monarchy modeled on the very same English system that the colonies had fought a desperate war to overthrow. Von Steuben was skeptical of any chance of acceptance, but duly forwarded the missive to Berlin. In fact, Henry’s response — found more than a century later among his papers, proving the fact of what many had assumed was a legend — was indeed to decline. New York Senator Rufus King later reported that the prince had told Steuben that the “the Americans had shown so much determination [against] their old King, that they [would] not readily submit to a new one.” In short order, delegates assembled in Philadelphia to find other means of stability. The result was the U.S. Constitution.

America owes more than we like to admit to the fact that George Washington was our first president. Called back from retirement, first to chair the Constitutional Convention and then to serve as the first President, Washington could easily have held the office for life. Indeed, Alexander Hamilton argued for the Presidency as a lifetime office, with its occupant removable only by impeachment. John Adams went even further, advocating for the President to be addressed as “His Majesty.”

Washington himself had no desire for absolute power, but he was concerned that future Presidents might not have his scruples. Seeing that even his own wise compatriots, having thrown off the English king at great cost, were prepared just five years later to hand sovereignty to a new monarch (and a foreign one at that), he took the unusual and selfless act of setting a precedent by leaving the Presidency after eight years. If our first President had been Donald Trump, or even Franklin Roosevelt, who broke tradition to serve four terms, it is not hard to imagine the Presidency becoming something much more ominous and less constrained than it is today. When Washington had retired to his farm at the end of the war, George III remarked it made him “the greatest man in the world.” We cannot hope to always be governed by his like.

Hamilton, Madison and other founders thoroughly analyzed the myriad examples since antiquity of democracies and their demise. They concluded rightly that excessive factionalism and the rise of corruption, incompetence and demagoguery almost always brought about the terminal crises. “Remember, democracy never lasts long,” Adams wrote. “It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide.” The final result was usually the ascension of an iron rule — whether in the form of a domestic dictator or a foreign conqueror. The American solution — an executive strong enough to be effective but checked enough to prevent tyranny — remains unfortunately dependent to some degree on the character of the President and the electorate that supports him.

There are early but troubling signs that we might face a crisis. The polarization and majoritarian factionalism the Founders feared has led to a tolerance for quasi-authoritarian actions among those who agree with the President. The rule by executive order begun under Obama and continued under Trump has eroded the separation of powers. The government seems unable to function effectively, anger is boiling and studies suggest that young people — those who will have to be responsible for the system’s endurance — are more likely than not to see democracy as less than “essential.” An alarming politics has arisen on the far Left and Right, with some adherents even seeking to dismantle the system itself.

This is the scenario that alarmed the Constitution’s framers, the governance vacuum that can lead the crowd to demand order above liberty. Their own near seduction by the charms of authoritarian rule prompted their attempt to create a system that could withstand that risk, but they also knew that their safeguards couldn’t work without wise leadership and a citizenry willing to value it.

“Those who expect to reap the blessings of freedom,” wrote Thomas Paine, “must undergo the fatigue of supporting it.” If even Hamilton, Adams and Gorham were tempted at a challenging moment to turn to a strong hand, we had best take no chances when defending the Constitution they bequeathed us.

Richard Hurowitz is a writer, investor and publisher of The Octavian Report, a quarterly magazine of ideas.

Correction, Nov. 26:

The original photo caption that appeared with this story misstated who is pictured in Howard Chandler Christy’s painting of the signing of the U.S. Constitution. Thomas Jefferson is not among those depicted.

Tom Cruise Is Here to Deliver Some Really Great Movie-Watching Advice

Tom Cruise appeared alongside Mission: Impossible – Fallout director Christopher McQuarrie in a Twitter video Tuesday with an extremely wise home theater suggestion: When watching movies at home, you should turn off your TV’s motion smoothing setting.

Motion smoothing, which goes by different names depending on your TV manufacturer, does exactly what the name suggests — smooths out video. But while it’s great for sports, it tends to make movies and TV shows look like garbage. Lots of other movie buffs have railed against motion smoothing before, including Last Jedi director Rian Johnson, who, upon seeing Cruise’s clip, rejoiced:

Your TV’s motion smoothing setting is probably buried somewhere in its video menu. If you do a Google search for your particular make and model and “motion smoothing,” you’ll probably quickly find out exactly how to turn it on and off. And Cruise is right — turning off the setting really does make movies look a ton better, and the way the creative forces behind the movies intended.

When to Watch the Solar Eclipse in NYC on August 21, 2017

The total solar eclipse will be in peak view in New York City at about 2:44 p.m. ET on Aug. 21, 2017. Viewers in New York City should expect to see a partial view of the eclipse.

Check out the interactive below to see when the eclipse reaches its peak, or type in your exact zip code to see what the eclipse will look like from your location.

Watch TIME’s livestream of the total eclipse beginning at 12 p.m. ET on Monday.

Inter Milan identify Manchester United superstar as top transfer target in 2019

Manchester United winger Anthony Martial is the subject of interest from Inter Milan, who hope to secure his services next summer.

The Frenchman is in a rich vein of form at the moment, having scored five times in his last five Premier League outings and looks like United’s best source of goals, despite being in and out of the starting line up.

The Red Devils are seventh in the table after 11 matches, nine points behind leaders Manchester City, but back-to-back victories against Everton and Bournemouth have lifted the mood at Old Trafford over the last fortnight.

Martial has been a huge part of that recent revival and at just 22 years of age, he has been widely tipped to become one of the world’s best players in the coming years, which has seen him linked with several top European clubs.

According to the Daily Mirror, the pacey attacker is still stalling on signing a contract extension in Manchester and although the club still has the option to extend his current deal by one year to 2020, he is technically going to be a free agent by the end of the season.

The Mirror reports that Inter Milan are hoping to pounce on the uncertainty surrounding Martial and have identified him as their top transfer target in 2019, with the club’s sporting director Piero Ausilio a keen admirer of the France international.

United boss Jose Mourinho would surely not want to lose one of his most prized superstars for nothing next year, particularly when his current squad is so thin on the ground in terms of creativity in the final third.

Martial is a quick, skilful footballer with unerring composure in front of goal and the Red Devils would do well to hang onto him as they bid to put an end to their local rivals’ dominance of English football over the next few seasons.

Manchester City host United in the league on Sunday, but before that Mourino’s men are in Turin on Wednesday night for a crucial Champions League showdown against Juventus, with Martial likely to play a key role once again.

 

This story could develop quickly during the winter period, with the January transfer window looming large on the horizon and speculation intensifying with each passing day.

These Companies Have Promised to Give Employees Bonuses Because the Tax Bill Passed

Several companies announced new investments, minimum wage hikes and employee bonuses on Wednesday as a result of the passage of Republican tax reform bill, which is set to bring them significant tax cuts by lowering the corporate tax rate.

AT&T

AT&T said it would give $1,000 bonuses to more than 200,000 employees in the U.S. once the tax bill is signed into law and promised to invest an additional $1 billion in the U.S. in 2018. CEO Randall Stephenson praised the tax legislation as “a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world.”

Trump praised AT&T’s announcement in remarks at the White House. “That’s because of what we did,” he said. “So that’s pretty good. That’s pretty good.” AT&T is currently awaiting approval from Trump’s Justice Department of its pending $85 billion acquisition of Time Warner.

Boeing

Boeing announced that it would spend $300 million on “employee-related and charitable investments” because of the tax plan. “The reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth,” CEO Dennis Muilenburg said in a statement.

Comcast

Comcast is giving $1,000 bonuses to 100,000 “frontline and non-executive employees,” the company announced, citing the rollback of the FCC’s Obama-era net neutrality rules and the passage of the tax reform bill. CEO Brian Roberts also said the company expects to spend “well in excess of” $50 billion on infrastructure investment over the next five years.

Fifth Third Bankcorp

Fifth Third Bancorp said it would increase its hourly minimum wage to $15 for U.S. employees.

Wells Fargo

Wells Fargo said it would increase its minimum wage for U.S. employees from $13.50 to $15 and spend $400 million on donations to nonprofits and community organizations in 2018.

 

‘Countdown’ Podcast Episode 5: A Spacewalk From Hell

No astronauts ever wanted a mission more than Tom Stafford and Gene Cernan wanted Gemini 9 in the spring of 1966. And no astronauts ever wanted one less either.

The mission itself was a first-rate assignment, one that included a rendezvous and docking with an Agena target vehicle as well as an extended spacewalk for Cernan. And it wouldn’t be just any spacewalk; Cernan would be wearing what amounted to an orbital jet pack, allowing him to zip around at the end of a long tether with a maneuverability no American astronaut or Soviet cosmonaut had ever enjoyed before.

The problem was, the mission was never supposed to belong to Stafford and Cernan at all. It had come to them just a few months before, only after a terrible tragedy had struck NASA. Stafford and Cernan would resolve to fly it well—but they knew they could never fly it with unalloyed joy.

As it happened, tragedy appeared ready to strike again. This time it took aim at Cernan, and this time it threatened the space agency with something it had never experienced before: the death of an astronaut during a flight—and a death of the worst imaginable kind.

Episode 5 of Countdown: The 10 Most Harrowing Space Missions of All Time, tells the tale of Gemini 9, and of the quick thinking and steady nerves of two astronauts who were determined that disaster would not strike the same mission twice.