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(NEW YORK) — Apple said on Sunday that COVID-19 restrictions at an iPhone factory in China have “temporarily impacted” shipments of its flagship phone.
The world’s most valuable company said a facility in Zhengzhou run by Foxconn, one of Apple’s largest suppliers, was “currently operating at significantly reduced capacity.”
“We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models,” Apple said in a statement. “However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products.”
Foxconn, as Hon Hai Precision Industry is known, turned its Zhengzhou facility into a “closed-loop” factory because of concerns about COVID-19 in the surrounding area, according to a report last week by Morgan Stanley analysts.
About 60% of Foxconn’s iPhone assembly happens in Zhengzhou, Morgan Stanley analysts wrote in the report.
“However, we do believe the impact of the COVID situation in Zhengzhou is showing up in iPhone lead times, as iPhone 14 Pro and Pro Max lead times have elongated by ~7 days in the last week, to 26 days as of Tuesday, November 1st,” the analysts wrote.
Taiwan-based Foxconn issued a current-quarter outlook on Monday, saying it was originally “cautiously optimistic,” but “due to the pandemic affecting some of our operations in Zhengzhou, the company will ‘revise down’ the outlook for the fourth quarter.”
The company said the local government had “made it clear that it will, as always, fully support” Foxconn’s local production.
“Foxconn is now working with the government in concerted effort to stamp out the pandemic and resume production to its full capacity as quickly as possible,” the company said in a statement.
Apple said it’s “working closely with our supplier to return to normal production levels while ensuring the health and safety of every worker.”
(NEW YORK) — When Nissan launched the all-new, seventh-generation Z sports car, company executives had a specific requirement: a manual transmission.
“In the more than 50 years of Nissan Z, we’ve never offered a Z without a manual transmission,” Brian Hoekstra, chief marketing manager of Z, told ABC News. “We recognize that for many Z and sports car enthusiasts, there is simply no alternative to a manual transmission.”
The coupe, which went on sale last summer, comes with a 3.0-liter V6 twin turbo engine that delivers 400 horsepower at 6,400 rpm and 350 lb-ft of torque. Drivers have a choice of a six-speed manual transmission or a nine-speed automatic. Hoekstra said sales are equally split between the manual and automatic, with younger owners preferring the “nostalgic experience” of three pedals.
“The manual transmission offers that classic sports car experience — it’s the ultimate driver-car connection, where you really feel like a part of the vehicle and can control it in ways you wouldn’t be able to with an automatic,” he said. “As long as there are still new internal combustion engine vehicles on the market, there will be an interest in manual transmissions.”
The car community has been decrying the death of the manual transmission for nearly two decades, said Henry Catchpole, a longtime automotive journalist who now hosts videos for Hagerty. As more automakers allocate resources to building electric vehicles, drivers are choosing engagement over pure performance, he argued.
“People are reassessing what they want and are going back to analog cars. It’s a big story in the industry,” he told ABC News. “There’s a shift in terms of how we look at performance cars. We don’t wax lyrical about paddle shifters as we do about manual gearboxes. Drivers are enjoying the manual again.”
Electric vehicles like the Porsche Taycan, Audi RS e-tron GT and Tesla Model S Plaid post performance numbers that few traditional supercars and sports cars can match. Straight-line acceleration and 0-60 mph times, however, may not matter to every motorist, said Bob Sorokanich, editor-in-chief of Jalopnik.
“Tesla has the quickest car on the market — just floor the accelerator and hang on,” he told ABC News. “It doesn’t take any driver skill.”
Automakers like Nissan, Toyota, Porsche and Honda are continuing to extol the manual transmission, he said, a “last hurrah” before the industry completely goes electric.
“It’s inevitable EVs are going to take over and people are getting misty-eyed that the manual won’t be around forever,” he said. “That’s why people are flocking to these specialty cars. Young people are interested in the opportunity to experience them as internal combustion engines come to a close.”
When Toyota released the Supra sports car in 2020, enthusiasts had one objection: there was no manual gearbox. The automaker listened and decided to offer the 2023 GR Supra with a newly developed six-speed manual transmission that was engineered and tuned specifically for the coupe’s straight-six engine. At least 25% of GR Supra sales are expected to be the manual, a company spokesperson said.
Then, to much acclaim, Toyota revealed the GR Corolla, a lightweight, vivacious hot hatch that meets every enthusiast’s requirements. It’s also built exclusively with a manual. Sorokanich expects Toyota to sell every one.
“The GR Corolla is meant for engagement,” he said.
Lindsay Lee, a senior manager in vehicle marketing and communications for Toyota, said demand has been unprecedented for the GR Corolla.
“There is excitement in the market for a vehicle of this size with this amount of performance,” she told ABC News.
Porsche takes driver engagement so seriously that it offers 25 models with a manual transmission at no cost. Certain 911 models, like the Carrera T and GT3 with Touring Package, come standard with a manual gearbox.
“We see the highest degree of interest in manual transmissions on particularly enthusiast-focused variants such as the 718 Cayman/Boxster T, 718 Cayman GT4 and 718 Spyder or 911 GT3, where the manual take rate in the U.S. can reach 50% or more,” a Porsche spokesperson told ABC News. “We aim to offer the manual transmission as a choice as long as regulations permit.”
Stephanie Brinley, an associate director at S&P Global Mobility, said recent market conditions have dictated what automakers build, leading to less investment in manual transmission technology.
“Automakers are faced with difficult choices and manuals are things that have been sacrificed in the last two years,” she told ABC News.
Pleasing a dedicated group of owners who are willing to pay above MSRP for a niche product can, however, outweigh the costs, she noted.
“It’s a niche space but sometimes customer loyalty is a reason to keep it going,” she said. “EVs are here and growing. They do have a different feel and level of engagement. For people who want that manual transmission connection, now is the time to grab one before they go away.”
BMW’s head of M products confirmed that the German automaker would keep manuals around until the end of the decade. The S58 engine in the company’s new M2 coupe can be paired with either a six-speed manual gearbox or a dynamic eight-speed M Steptronic transmission.
At the unveiling of the seventh-generation Ford Mustang in September, company executives touted the Blue Oval’s commitment to the clutch pedal.
“Ford has saved the manual transmission for a new generation and the 5.0-liter V8 continues to offer a standard six-speed manual transmission for customers who want an uncompromised connection to eight-cylinder power,” according to a company press release.
The Dearborn automaker has also seen sizable interest among manual buyers in its Ford Bronco 4X4, with the take rate topping 20%, according to Brinley.
Honda’s latest Type R hatch is visually different from its predecessor, with an aggressive front bumper design, lower stance and a redesigned rear spoiler. What hasn’t changed? A manual transmission. Honda’s Civic Si, like the Type R, has been manual-only since its inception and the company sees “consistent interest from enthusiasts who want the engaging driving experience that can only be had by shifting your own gears,” according to a spokesperson. When Honda’s Acura brand premiered the fifth-generation Integra in March, enthusiasts lauded the return of the manual.
“At launch, nearly 70% of the Integra preorders were for the manual transmission,” the spokesperson said. “Since then, the mix rate has leveled out, but we’re still seeing high demand for the manual transmission, more than enough to justify its development.”
Catchpole said the unrelenting pressure on automakers to keep the manual alive has benefited an industry that’s rapidly closing the door on gas-powered vehicles.
“Some people see manuals as a chore but they’re not. They bring more color to life,” he said. “Porsche listened to enthusiasts and brought back the manual in the GT3. I hope other manufacturers will listen too.”
(NEW YORK) — The U.S. added 261,000 jobs in October, exceeding economist expectations and sending a positive signal for the economy days before the midterm elections.
The unemployment rate increased to 3.7%. However, the unemployment has stood between a narrow range of 3.5% and 3.7% since March, the government data said.
The strongest job gains came in health care, manufacturing and professional and technical services.
The report arrives two days after Fed Chair Jerome Powell announced another jumbo-sized interest rate hike, intensifying the central bank’s fight against inflation and stoking fears of a downturn.
The aggressive move is the latest in a string of borrowing cost increases imposed by the Fed in recent months as it tries to slash price increases by cooling the economy and choking off demand. The approach, however, risks tipping the U.S. into a recession and putting millions out of work.
While hiring has slowed from a breakneck pace earlier in the year, the labor market continues to defy recession concerns.
The number of job openings increased in September, a sign that the need for workers remains robust, government data released Tuesday showed. However, hiring and people quitting fell slightly in September, suggesting that the demand for labor from employers has begun to ebb.
While strong, the hiring in October falls well below the typical jobs added over a given month in 2022. Monthly job growth has averaged 407,000 thus far in 2022 versus 562,000 per month in 2021, the jobs data on Friday showed.
While some data points to an economic slowdown, a government report released last month showed significant economic growth over three months ending in September.
U.S. gross domestic product grew 2.6% over that period; by contrast, economic activity shrank a combined 2.2% over the first six months of the year.
(NEW YORK) — Twitter will begin layoffs on Friday, the company announced in an email.
“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” the company wrote in an email sent to employees on Thursday and obtained by ABC News.
“We recognize that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is unfortunately necessary to ensure the company’s success moving forward,” the email continues.
The Washington Post was first to report the email to employees.
According to the company email, the layoff process will take place via email, and all employees will receive an email by 9 a.m. PT/noon ET on Friday with the subject line “Your Role at Twitter.”
Employees were told, via the company email Thursday, that they would receive a notification to their Twitter email if their employment was not impacted, and they would receive a notification to their personal email with next steps if their employment is impacted.
In the company email, Twitter said its offices are temporarily closed and “all badge access will be suspended.”
“We acknowledge this is an incredibly challenging experience to go through, whether or not you are impacted,” the company said in the email.
Tesla CEO Elon Musk closed the deal to acquire Twitter last week.
Musk — the richest person in the world, according to Forbes — reportedly acquired Twitter at his original offer price of $54.20 a share at a total cost of roughly $44 billion.
A source familiar with the matter confirmed Musk’s Twitter deal closure to ABC News on Oct. 28. Some of Twitter’s top executives were fired, including CEO Parag Agrawal, chief financial officer Ned Segal, chief legal officer Vijaya Gadde and general counsel Sam Edgett, and the company will likely be launching an internal investigation, according to the source.
Musk had said last week that he will forgo any significant content moderation or account reinstatement decisions until after the formation of a new committee devoted to the issues.
“Twitter will be forming a content moderation council with widely diverse viewpoints,” Musk tweeted. “No major content decisions or account reinstatements will happen before that council convenes.”
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(NEW YORK) — Every Tuesday, every movie, only $5.
In the latest effort to get movie-goers back into theaters, AMC Theaters announced Thursday that AMC Stub members can enjoy “Discount Tuesday” for all titles at every AMC location in the U.S. from now through Jan. 31, 2023.
The AMC Stubs program is made up of three different tiers that include a paid monthly movie membership, a paid yearly membership and a free-to-join membership — all of which include the Discount Tuesday perk this holiday season.
The company also said in a press release that, along with a $5 tickets (plus tax), members can enjoy a $5 combo that includes a small popcorn and a 21-ounce ICEE or small Coca-Cola Freestyle beverage on Tuesdays.
“$5 Discount Tuesday at AMC offers significant value to movie-goers in many areas around the country,” the company stated. “While a premium experience fee applies for movies in IMAX at AMC, Dolby Cinema at AMC and PRIME at AMC, the base fee for premium experience movies is also $5.”
The news comes ahead of AMC Entertainment’s quarterly earnings report that is set to be published on Nov. 8. The company reported in August that the theater chain earned $1.17 billion and that revenue was up 162.3% on a year-over-year basis.
Since the COVID-19 pandemic spurred the release of movies onto streaming platforms, in-person movie theaters have been slowly reviving to pre-pandemic levels.
Several highly-anticipated movies are on the holiday schedule this season, including Marvel’s Black Panther: Wakanda Forever, Steven Spielberg’s The Fabelmans and a follow-up to Rian Johnson’s smash mystery hit Knives Out, titled Glass Onion: A Knives Out Mystery.
(NEW YORK) — A taste of the Marvel Cinematic Universe is coming to the menu at McDonald’s with a new item inspired by the highly-anticipated Black Panther sequel.
Starting Thursday, a new Happy Meal with superhero toys based on characters from Black Panther: Wakanda Forever will be available for a limited time nationwide.
There are 10 characters from the movie available in the exclusive new Happy Meals, including fan favorites like Shuri, Okoye and newcomers like Namor and Ironheart. Customers can get their hands on one of the new Happy Meals at participating restaurants nationwide, while supplies last.
Jennifer Healan, vice president of U.S. marketing, brand content and engagement at McDonald’s, said in a statement that the first Black Panther film “set a whole new standard for representation on the big screen. And now, we’re excited to bring that experience to our restaurants and help fans see and celebrate their inner hero with this new Happy Meal — because seeing is believing.”
“The Happy Meal has brought millions of smiles to our customers for decades, and we’re excited to collaborate with Disney and give our fans one more way to experience the kingdom of Wakanda,” the company said in a press release.
Marvel is owned by Disney, the parent company of ABC News and Good Morning America.
(NEW YORK) — The top executives of three civil rights groups are demanding a meeting with new Twitter owner Elon Musk following what they say has been a rise in racial and religious hatred on the social media platform.
The groups are asking for Musk to have “strong content moderation standards that foster a safe and healthy online environment.”
In a joint letter sent to Musk on Wednesday, the heads of the NAACP, Urban League and National Action Network say they are “alarmed by the rise in white supremacist propaganda and racial and religious hatred on the Twitter platform over the weekend.”
The civil rights groups say the purpose of their request is to “address our concerns and better understand your content moderation plan to protect our communities against abuse on Twitter by those who seek not simply to express controversial views, but who seek to harm us and undermine our democracy.”
They went on, “And as we have seen over the last several years, online behavior has offline impact, including leading to violence and harassment online and otherwise.”
Separately, NAACP President Derrick Johnson met with Musk on Tuesday “to express our grave concerns with the dangerous, life-threatening hate and conspiracies that have proliferated on Twitter under his watch,” according to an NAACP statement.
Johnson said, “Nazi memes, racial slurs, and extreme far-right propaganda do not belong in the ‘town square’ of any democracy or online platform. Taking the necessary actions is not rocket science, but failing to do so will put human lives at risk and further unravel our democracy.”
Noting the upcoming midterm elections, Johnson said he believes “it is critical that Twitter’s existing election integrity policies remain in effect until at the very least after the midterm elections have been certified.”
A new study from Montclair State University showed a dramatic increase in hate speech on Twitter immediately following Elon Musk’s acquisition of the social media platform.
Musk acquired the platform on Oct. 27 and promised to reduce Twitter’s content restrictions to promote free speech. He also said a “content moderation council” will be formed to review company policies.
“Free speech is the bedrock of a functioning democracy and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in a statement when the deal was announced.
A spokesperson for Twitter did not respond to ABC News’ request for comment.
(NEW YORK) — Starbucks is officially in holiday mode with the return of its iconic red cups and special holiday menu.
Starting Thursday, Nov. 3, Starbucks will celebrate the return of holiday beverages and festive food, as well as 25 years of the holiday cups.
The coffee chain first rolled out the cups, initially designed by Sandy Nelson in 1997, to signify the arrival of the holiday season. This year, the classic red and Starbucks green colors have accents of mint and sparkles as a nod to the Peppermint Mocha, which is celebrating its 20th anniversary.
Additional fan favorites back on the holiday menu include the Caramel Brulée Latte, Chestnut Praline Latte, Toasted White Chocolate Mocha, Irish Cream Cold Brew, and returning for the second year, the nondairy Iced Sugar Cookie Almondmilk Latte.
The pastry case is also getting the festive treatment for the season with a brand new Chocolate Pistachio Swirl and the return of Reindeer Cake Pops, Sugar Plum Cheese Danish, Cranberry Bliss Bars and Snowman Cookies.
Starbucks is also debuting its annual limited-edition holiday merch lineup, which features an array of colorful cold cups, tumblers, mugs and more in a variety of holiday designs.
(WASHINGTON) — The Federal Reserve said Wednesday it was raising its short-term borrowing rate another 0.75% to slow key areas of the economy and tame inflation, which is at a 40-year high.
The central bank said its new target range is 3.75%-4%, the highest level since January 2008.
The aggressive move is the latest in a string of borrowing cost increases imposed by the Fed in recent months as it tries to slash price increases by cooling the economy and choking off demand. The approach, however, risks tipping the U.S. into a recession and putting millions out of work.
The fourth rate hike of 2022 also arrives less than a week before the midterm elections.
“Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks,” Fed officials said in a statement. “The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
Data on consumer prices released last month showed that costs rose 0.4% on a seasonally adjusted basis in September, defying efforts to bring prices down. Consumer prices overall rose 8.2% over the 12 months ending in September, exceeding economists’ predictions.
The Federal Reserve is expected to raise the benchmark interest rate by 0.75%, repeating the same hike it imposed at each of the last three meetings, according to a Bloomberg survey of economists. Prior to this year, the Fed last matched a hike of this magnitude in 1994.
Federal Reserve Chair Jerome Powell on several occasions has reiterated the central bank’s commitment to bring inflation down to a target rate of 2%, saying in September the Fed expects to put forward “ongoing increases” to its benchmark interest rate.
The personal consumption expenditures price index – the inflation measure preferred by the Fed – stands at a year-over-year growth rate of 5.1%, government data showed last week.
“Powell has been very clear that inflation is unacceptably high and we have to stay the course to get it down,” Anne Villamil, an economist at Iowa University, told ABC News. “Markets have been a little hopeful that we could have a pause – I don’t see that happening.”
Despite persistent inflation, growing evidence suggests that the Fed’s moves have put the brakes on some economic activity.
Mortgage rates reached a 20-year high last week, as the U.S. faces an ongoing slowdown in home sales and housing construction.
Job growth has persisted at a strong rate but has shown signs of moderating.
U.S. employers added 263,000 jobs in September and the unemployment rate fell slightly to 3.5% from 3.7%, exceeding expectations and demonstrating the continued strength of the labor market.
But the total came in well below the typical jobs added over a given month in 2022. Monthly job growth has averaged 420,000 so far this year versus 562,000 per month in 2021, according to the Department of Labor.
Meanwhile, hires and quits fell slightly in September, suggesting that the demand for labor from employers has begun to ebb, government data released on Tuesday showed. The number of job openings, however, increased in September, a sign that the need for workers remains robust.
While some data points to an economic slowdown, a government report released last month showed significant economic growth over three months ending in September. U.S. gross domestic product grew 2.6% over that period; by contrast, economic activity shrank a combined 2.2% over the first six months of the year.
“We’re getting these very conflicting signals,” Villamil said. “That’s why the Fed has a tough job.”
(NEW YORK) — CBS and its senior leadership knew about multiple allegations of sexual assault against former chief executive Les Moonves but intentionally concealed them from shareholders, regulators and the public, according to an investigation by the New York attorney general’s office that alleged insider trading and violations of consumer protection law that are now part of a $30 million settlement.
A senior CBS executive who knew about the allegations, former chief communications officer Gil Schwartz, sold millions of dollars in company stock in the weeks before the allegations became public, the attorney general’s office said.
The network fired Moonves in December 2018 after two law firms conducted an investigation into sexual misconduct allegations. That triggered a lawsuit by shareholders who alleged CBS and some of its current and former executives made false statements or failed to disclose material information about how the company handles sexual harassment complaints in the workplace.
The attorney general’s investigation also accused a captain of the Los Angeles Police Department of “direct and repeated interference” and violating confidentiality rules when the captain informed CBS about one complaint against Moonves and worked with network executives to prevent the complaint from becoming public.
“Hopefully we can kill media from PD. Then figure [sic] what [Complainant #1] wants,” the attorney general’s office quoted a text message from Moonves as saying.
The New York attorney general’s office said it has referred the matter involving the LAPD captain to the California attorney general.
The LAPD released a statement Wednesday acknowledging the New York attorney general’s investigation “involving the actions of a former command officer of the Department while assigned as a Captain to Hollywood Division.”
“We are fully cooperating with the New York and California Attorney General offices and have also initiated an internal investigation regarding the conduct of the retired command officer as well as to identify any other member(s) of the organization that may have been involved,” the statement said.
LAPD Police Chief Michel Moore added, “What is most appalling is the alleged breach of trust of a victim of sexual assault, who is among the most vulnerable, by a member of the LAPD. This erodes the public trust and is not reflective of our values as an organization.”
According to the attorney general’s office, the same day an individual filed a confidential criminal sexual assault complaint against Moonves at an LAPD station in Hollywood, the former LAPD captain informed a CBS executive of the confidential complaint. The LAPD captain shared an unredacted police report with the executive, who shared it with Mr. Moonves and other executives at CBS, the AG’s investigation found.
The settlement requires Moonves and CBS to pay $30.5 million to shareholders. CBS must reform its human resources practices around sexual harassment and provide biannual reports to the attorney general’s office.
“CBS and Leslie Moonves’ attempts to silence victims, lie to the public, and mislead investors can only be described as reprehensible,” said New York Attorney General Letitia James. “As a publicly traded company, CBS failed its most basic duty to be honest and transparent with the public and investors. After trying to bury the truth to protect their fortunes, today CBS and Leslie Moonves are paying millions of dollars for their wrongdoing.”
As CBS tried to hide these allegations, the company authorized its former chief communications officer, Schwartz, who was one of the few people with information about the allegations and the LAPD police report, to sell his shares, the attorney general’s office said. Schwartz died in May 2020.
Six weeks before the first article about the allegations became public, Schwartz sold 160,709 shares of CBS stock at an average weighted price of $55.08 for a total of $8,851,852. The stock dropped 10.9% from the day before the news broke to the trading day after, according to the attorney general’s office.
“We have reached an agreement in principle to resolve the matter with the Investor Protection Bureau of the New York State Attorney General’s Office,” Paramount Global, CBS’s parent company, said in filing with the Securities and Exchange Commission Wednesday. “The resolution includes no admission of liability or wrongdoing by the Company.
Moonves agreed to pay $2.5 million, and CBS will pay the rest of the settlement, according to a letter filed Wednesday with the federal judge in Manhattan handling the case.
