Archive

2023

Browsing

House lawmakers are urging federal agencies to quickly and aggressively adopt artificial intelligence technology, at a time when the push from civil rights and industry groups for new AI regulations is still waiting to get off the ground.

The House Appropriations Committee, led by Rep. Kay Granger, R-Texas, released several spending bills this week that encourage the government to incorporate AI into everything from national security functions to routine office work to the detection of pests and diseases in crops. Several of those priorities are not just encouraged but would get millions of dollars in new funding under the legislation still being considered by the committee.

And while comprehensive AI regulations are likely still months away and are unlikely to be developed this year, lawmakers seem keen on making sure the government is deploying AI where it can. The bills are backed by the GOP majority, and Rep. Don Beyer, D-Va., the vice chair of the Congressional Artificial Intelligence Caucus, said agencies shouldn’t have to wait to start using AI.

‘We should support federal agencies harnessing the power and benefits of AI, as it has proven itself to be a powerful tool and will continue to be an invaluable asset for our federal agencies,’ he told Fox News Digital. ‘The Departments of Energy and Defense, for example, have been leveraging AI for technical projects to enhance precision and accomplish tasks beyond human capabilities.’

Beyer added that he is ‘encouraged’ by commitments some agencies have made to ensure AI is used ethically, such as those made by the Department of Defense and intelligence agencies.

In the spending bill for the Department of Homeland Security, language is included that would fund AI and machine learning capabilities to help review cargo shipments at U.S. ports and for port inspections.

‘As the Committee has previously noted, delays in the integration of artificial intelligence, machine learning, and autonomy into the program require CBP Officers to manually review thousands of images to hunt for anomalies,’ according to report language on the bill. ‘Automation decreases the chance that narcotics and other contraband will be missed and increases the interdiction of narcotics that move through the nation’s [ports of entry].’

The bill encourages DHS to use ‘commercial, off-the-shelf artificial intelligence capabilities’ to improve government efforts to catch travelers and cargo that should not be allowed to enter the United States. It also calls on DHS to explore using AI to enforce the border, to help ensure the right illegal immigrants are removed, and at the Transportation Security Agency.

The committee’s bill to fund the Defense Department warns that the Pentagon is not moving fast enough to adopt AI technologies.

‘Capabilities such as automation, artificial intelligence, and other novel business practices – which are readily adopted by the private sector – are often ignored or under-utilized across the Department’s business operations,’ the report said. ‘This bill takes aggressive steps to address this issue.’

Among other things, the bill wants DOD to explore how to use AI to ‘significantly reduce or eliminate manual processes across the department,’ and says that effort justifies a $1 billion cut to the civilian defense workforce.

The bill also wants DOD to report on how it can measure its efforts to adopt AI, and to take on more student interns with AI experience.

The spending bill funding Congress itself wants legislative staff to explore how AI might be used to create closed captioning services for hearings, and how else AI might be used to improve House operations.

House lawmakers also see a need for AI at the Department of Agriculture. Among other things, the bill adds more money for AI in an agricultural research program run by the U.S. and Israel, proposes the use of AI and machine learning to detect pests and diseases in crops, and supports ongoing work to use AI for ‘precision agriculture and food system security.’

The effort to expand the government’s use of AI comes despite the pressure that has been building on Congress to quickly impose a regulatory framework around this emerging and already widely used technology. Lawmakers in the House and Senate have held several hearings on the issue, which have raised ideas that include a new federal agency to regulate AI and an AI commission.

But despite the urgency, Congress continues to move slowly. Senate Majority Leader Chuck Schumer, D-N.Y., said last week that he still wanted to take several months to take input, and implied that an AI regulatory plan might not be passed by Congress until next year.

‘Later this fall, I will convene the top minds in artificial intelligence here in Congress for a series of AI Insight Forums to lay down a new foundation for AI policy,’ he said last week.

The full committee is expected to take up these and other spending bills in the coming months – Republicans have made it clear they want to move funding bills for fiscal year 2024 on time this year, which means finishing by the summer.

This post appeared first on FOX NEWS

EXCLUSIVE: Senators Chuck Grassley and Ron Johnson are raising new questions about a 2020 FBI briefing in which the agency said the senators’ investigation into Hunter Biden was advancing Russian disinformation at a time the FBI was looking into some of the same allegations.

‘The more we learn about what the FBI was up to in the summer of 2020, the more questions we have about what was done with information related to the Hunter Biden investigation,’ Grassley, R-Iowa, told Fox News Digital this week. He called the briefing ‘totally unnecessary’ and said it was a ‘clear effort to discredit our oversight.’

‘Was there a broader effort by federal law enforcement to improperly silence or sideline anything critical of the Biden family in the run-up to the 2020 election?’ Grassley asked. ‘The timeline that is emerging does not paint a picture of an apolitical FBI, and the bureau has a duty to explain itself, which it has so far failed to do.’

The two senators opened an investigation into Hunter Biden’s finances, specifically his role on the board of Ukrainian natural gas firm Burisma Holdings. At the time of the FBI briefing, the senators were finalizing their report that would be released in September 2020.

On Aug. 6, 2020, the FBI provided a briefing to Grassley and Johnson ‘on behalf of the FBI and intelligence community,’ a briefing the senators have repeatedly said was given ‘because of pressure’ from Democrats ‘to falsely attack’ their investigation.

The two senators say that, in August 2020, FBI officials initiated a scheme to downplay derogatory information on Hunter Biden for the purpose of shutting down investigative activity relating to his potential criminal exposure by labeling it ‘disinformation.’ 

The senators also noted that whistleblowers have alleged that local FBI leadership ‘instructed employees not to look at the Hunter Biden laptop immediately after the FBI had obtained it.’

But the briefing took place as the Justice Department’s federal investigation into Hunter Biden was well underway. By December 2019, the FBI had obtained the laptop belonging to Hunter Biden and knew material on the laptop was ‘not manipulated’ and contained ‘reliable’ evidence.

Johnson told Fox News Digital the mixed messages from the FBI are problematic. 

‘As troubling as Biden family corruption is — and the extent to which it comprises American foreign policy — there is a much larger story of corruption to be uncovered,’ he said this week.

‘The complicity of federal law enforcement and the unequal application of justice is a true threat to our democracy,’ Johnson added. ‘Because the partisan corruption spans Democrat and Republican administrations, one has to wonder, ‘How is it being orchestrated and sustained?’’

The FBI has told Fox News the bureau had no comment when asked why the briefing was delivered to Grassley and Johnson in August 2020 and whether the FBI sought to downplay and discredit derogatory information about Hunter Biden.

Grassley and Johnson in September 2020 released their Hunter Biden report, which said Obama administration officials ‘knew’ that Hunter Biden’s position on the board of Burisma was ‘problematic’ and that it interfered ‘in the efficient execution of policy with respect to Ukraine.’

Hunter Biden joined Burisma in April 2014 and reportedly connected the firm with consulting firm Blue Star Strategies to help the natural gas company fight corruption charges in Ukraine. During the time Hunter Biden was on the board of the company, Joe Biden was vice president and running U.S.-Ukraine relations and policy for the Obama administration.

Grassley and Johnson’s 2020 report also revealed U.S. Treasury Department records that ‘show potential criminal activity relating to transactions among and between Hunter Biden, his family and his associates with Ukrainian, Russian, Kazakh and Chinese nationals.’

Grassley and Johnson said they received records that Hunter Biden ‘sent thousands of dollars’ to people who have ‘either been involved in transactions consistent with possible human trafficking, an association with the adult entertainment industry or potential association with prostitution.’

IRS whistleblowers involved in the IRS’ investigation into Hunter Biden have corroborated the information contained in the Senate report, which also found millions of dollars in ‘questionable financial transactions’ between Hunter Biden and his associates and people with ties to the Chinese Communist Party.

On the other side of the Capitol, the House Judiciary, Oversight and Ways and Means committees have demanded transcribed interviews from more than a dozen Justice Department, IRS, FBI and Secret Service officials regarding allegations of politics influencing prosecutorial decisions in the Hunter Biden investigation.

The House Oversight Committee is  investigating the Biden family’s business dealings. That investigation has further revealed that the Biden family and its business associates created more than 20 companies and received more than $10 million from foreign nationals while Joe Biden served as vice president.

Committee Chairman James Comer said some of these payments could indicate attempts by the Biden family to ‘peddle influence’ and said the family appeared to take steps to ‘conceal the source and total amount received from the foreign companies.’

The White House continues to insist President Biden was ‘never in business’ with his son.

The DOJ last week announced that Hunter Biden will plead guilty to two misdemeanor counts of willful failure to pay federal income tax and one charge of possession of a firearm by a person who is an unlawful user of or addicted to a controlled substance. The plea deal is likely to prevent Hunter Biden from having to serve prison time.

This post appeared first on FOX NEWS

Residents of Austin, Texas, and crime victims’ families are speaking out after District Attorney Jose Garza signed off on a plea deal for a woman for her part in a murder-for-hire plot that targeted her in-laws.

Jaclyn Alexa Edison was sentenced last week in Travis County, Texas, to 10 years probation after pleading guilty to conspiracy to attempt to commit capital murder by hiring two hit men who ultimately killed her then-husband’s father. The boyfriend’s mother survived.

Edison’s husband, Nicolas Shaughnessy, and the two hit men accepted plea deals of 35 years in prison. The victims’ families said that deal was too lenient, but Austin Police Retired Officers Association President Dennis Farris told Fox News Digital that Edison should have faced the same punishment as the others.

‘She should have gotten the same thing they got,’ Farris said. ‘They literally are just as guilty, she’s just as guilty as the person who pulled the trigger.’

Edison, who was 19 years old at the time of the crime, was offered ‘deferred adjudication,’ which means she accepted responsibility for the crime but the conviction was not placed on her record. The lawyer for the surviving victim said he has never seen a similar outcome.

‘In the close to half a century that I’ve worked with criminal law as a prosecutor and a defense attorney … I have never seen anything like this,’ attorney Steve Brittain told KXAN-TV. ‘I can’t put it together in my mind, and I just don’t understand it.’

Edison and her now ex-husband were accused of hiring Arieon Smith and Johnny Leon in 2018 to kill Shaughnessy’s adopted parents who owned Gallerie Jewelers in Austin in a scheme they hoped would net them their $2 million life insurance policy.

Ted Shaughnessy was found dead of multiple gunshot wounds in a hallway of his home after his wife, Corey Shaughnessy, returned fire at the hit men until she ran out of ammunition and hid in a closet to call 911, authorities said.

You can withdraw money from the bank to pay to have your in-laws killed, and this district attorney is going to let you basically walk away,’ Farris said. ‘I mean this is just insane.’

While part of Edison’s probation says she must check in to the Travis County Jail for two days each year on the anniversary of the murder as part of her probation, Farris told Fox News Digital that’s a slap on the wrist and that she will probably end up spending less than two days in jail based on the way the jails credit time served based on the time of day you clock in.

Garza, who was backed by a PAC linked to billionaire George Soros, has been criticized for years for what the families of crime victims say is a soft-on-crime approach that stems from adherence to progressive politics and ‘reimagining’ the justice system.

One of those family members is Nicholas Kantor, whose brother, Doug, was an innocent bystander when he was shot and killed in 2021 when two rival gangs of teenagers opened fire on each other in downtown Austin in one of the worst mass shootings in the city’s history. Two years later, Nicholas Kantor says Garza’s office has yet to deliver justice for his family and has even impeded progress toward that goal.

Kantor told Fox News Digital in response to news of Edison’s probation sentence that people need to ask themselves how they would feel if Edison had killed their mother or their father.

‘Would you feel contentment that the DA provided you with justice and peace of mind to settle your heart?’ Kantor said.

‘This is about the future of the justice system, if we continue to stand idle through deals and decisions like this without any protests and outrage, that this will become the new normal,’ Kantor added. ‘And while today it may be somebody else’s broken heart, tomorrow it could very well be yours.’

Garza ran on a platform of prosecuting police officers and has already gone after several of them, including the indictment of over 20 Austin police officers for their roles in subduing a Black Lives Matter riot in the wake of George Floyd’s death. He also worked to convict Army Sgt. Daniel Perry to 25 years in prison for shooting an armed Black Lives Matter protester who approached his car with a raised AK-47 style weapon. 

‘This is a sweetheart deal,’ Farris said. ‘Do you think he would offer or make a deal with the police officers he’s charged? Things are getting worse in Travis County because we are refusing to put people in jail for the worst crimes they commit.’

Garza’s office did not respond to a request for comment from Fox News Digital.

Associated Press contributed to this report.

This post appeared first on FOX NEWS

The United Nations General Assembly is poised to approve a global framework this fall on ammunition management that could be dangerously vague and impact domestic policies in the United States, some Second Amendment advocates warn. 

In early June, the U.N.’s Open-Ended Working Group on Conventional Ammunition, also called the OEWG, completed its development of a new global framework.

The National Rifle Association and the Sporting Arms and Ammunition Manufacturer’s Institute attended each of the OEWG’s meetings, pushing to water down certain aspects of the international plan. 

‘It is going to the General Assembly in September. It’s basically a forgone conclusion,’ James Baranowski, the NRA director of international affairs, told Fox News Digital. ‘It’s the way of the U.N. It’s a game of chess, not checkers.’

The General Assembly passed a resolution in February 2022 establishing the OEWG to address the accumulation of stockpiles in surplus, which issued a final report this month.

The framework can be used for leverage in the political arena if gun control advocates claim it is a standard for international law, Baranowski said. 

‘It could have been a much worse document to start the framework,’ Baranowski said. ‘That said, it is never going away. It is a living document that will be modified. We are going to have to fight this every year.’

The 15 objectives of the global framework establish standards and guidelines for international cooperation in ammunition management, Adedeji Ebo, director of the U.N. Office of Disarmament Affairs, said June 9, when the working group adopted the framework. 

‘The adoption of the set of political commitments is a tremendous achievement, which, I have no doubt, will be endorsed by the 78th Session of the U.N. General Assembly,’ Ebo said during his remarks. 

The framework’s objectives aim to curb the transporting of small arms into conflict zones, preventing unplanned explosions at munition sites and recognizing the increased role of women in ammunition management, Ebo noted.

With a push by the Second Amendment organizations, the working group watered down some terms and deleted from drafts references to the ‘individual’ end users of ammunition, Baranowski said. So, at least for now, the framework only applies to governments, not individual ammunition owners.

Still, the OEWG’s final report doesn’t fully define key terms such as ‘stockpile,’ and ‘end users.’ And under the broad definition, even a 25-round box could constitute a stockpile, Baranowski contends. 

‘You see ‘stockpile’ and ‘end user.’ A stockpile could be a million rounds in a government stockpile or it could be a box of 25 rounds at a local police station,’ Baranowski said. ‘It is limited to governments as it is currently written. We argued to confine it. But we think, eventually, that language will be removed. There was an effort to include individual end users.’

The United Nations did not respond to inquiries for this story.

But the U.N.’s Ebo called the framework a ‘ray of hope for the disarmament community and the peoples of the world who have long suffered from the scourge of war and armed violence exacerbated by the mismanagement and illicit flows of conventional ammunition.’

‘The elaboration of the global framework is truly a milestone in our collective efforts towards durable peace, security and sustainable development,’ Ebo added. 

This post appeared first on FOX NEWS

–>

In this edition of the GoNoGo Charts show, Alex and Tyler review rangebound charts across macro drivers such as yields (TNX), currency (UUP), and commodities (GLD, USO). Relative stability offers a low volatility backdrop for Equities to sustain the bullish Go trend conditions. Within the S&P 500, rotation and breadth expansion provides new opportunities in leadership amongst the Industrials sector (XLI). Multiple industry groups are pulling the sector higher.

This week, GoNoGo Charts provide idea generation in Airlines, heavy construction, and building materials. Drilling down to the individual security level, Alex and Tyler offer perspectives on Nocera (NCRA), Skywest (SKYW), and Boise Cascade Co (BCC) an engineered wood products company critical to framing out new home construction. Concluding with the Crypto Relmap, GoNoGo Charts reveals Bitcoin is again outperforming the S&P 500 from a trend perspective.

This video was originally recorded on June 29, 2023. Click this link to watch on YouTube.

Learn more about the GoNoGo ACP plug-in with the FREE starter plug-in or the full featured plug-in pack.

On this week’s edition of Stock Talk with Joe Rabil, Joe shows the criteria he is looking for when trading 2 timeframes. He covers the MA setup on both timeframes, price setup, and the preferred momentum conditions to this approach. This approach can be used in any 2 timeframes. Joe then analyses the symbols requests that came through this week. He then goes through the stock requests that came through this week, including DAL, BIDU, SHOP, and more.

This video was originally published on June 29, 2023. Click this link to watch on YouTube.

Archived episodes of the show are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show. (Please do not leave Symbol Requests on this page.)

The eurodollar futures contract is now no more, having been replaced by the new SOFR contract (Secured Overnight Financing Rate). For those unfamiliar with the term eurodollar, it is not a reference to the currency markets, but rather it referred to dollar-denominated time deposits in European banks. So you can think of it as LIBOR futures.

For a variety of reasons that are not important here, the CME decided to get rid of the eurodollar contract, and it spun up the SOFR as its replacement back in 2018. The sad part of this for me is that, for many years, I have gotten great insights from the Commitment of Traders (COT) Report data on eurodollar futures. The chart above shows how it gives about a 10-month leading indication of what short-term interest rates are going to do. 10 months ago, this indicator was peaking, which tells us that a peak for short-term interest rates is due right now, regardless of what Jerome Powell thinks.

The red line in this chart reflects the net position of the “commercial” traders of eurodollar futures as a group, as reported each week in the COT Report. The commercials are the big banks, who used these futures contracts as a way of offsetting their deposit/loan imbalances and interest rate risks. The changes in their net positioning carried a magical message about what future interest rate movements were going to look like.

Or, at least, that was true most of the time. When Ben Bernanke was Fed Chairman, the Fed implemented its “zero interest rate policy,” or ZIRP, which held short-term rates down to nothing for several years. That did not match the message of this model, as you can see in the middle of that chart above. But once the Fed relented and allowed interest rates to rise again, the correlation was restored.

This correlation was working even before the period shown in that chart above. Here is a flashback chart from 1991-2006, showing that the 10-month leading indication relationship was working even back then (although, to my knowledge, no one had discovered it back then until I figured it out years later). Note that the red line with the COT Report data is shifted forward by 10 months in this chart.

For many years before I discovered the 10-month leading indication these data gave for short term rates, I had used the eurodollar COT data as a 1-year leading indication for the stock market. And it worked great. Here is a chart showing that relationship from 1998-2016, with the red plot of the eurodollar COT data shifted forward by 1 year:

I note in the chart that this relationship did not work for a while in 2013, which was when the Fed started QE3. That was their largest ever effort (before COVID and QE4) to buy up Treasury debt, as well as mortgage-backed securities (MBS) in order to stabilize the banking system and stimulate the economy. QE3 was pretty disruptive, arguably in a good way, or at least in a bullish way. A lot of my other leading indications had also called for a stock market dip in 2013, which did not come about because of that stimulative effect from QE3. By early 2014, however, the relationship was back to working nicely again, foretelling the stock market’s movements a year ahead of time.

Curiously, this relationship stopped working in 2018, which was, coincidentally, when the SOFR futures first started trading. I am not sure if that was cause and effect, especially since the SOFR trading volume and open interest were small at first. Whatever the reason, my once-great leading indication stopped working then, which is a great lesson for all of us not to come to count on anything working forever. But the eurodollar COT data did continue working beyond 2018 as a leading indication for short-term interest rates.

So with the eurodollar futures contract now having fully ridden off into the sunset, and its once-amazing COT Report data leading indications going away too, the natural question is whether its replacement, the SOFR contract, and its COT data will perform the same magic tricks. The answer is simultaneously amazing and frustrating.

I have been working with the SOFR COT data since early 2022, seeking that answer. What I have found is that, yes, the SOFR COT data do provide an interesting leading indication for the stock market, and I have shared that with subscribers of our twice monthly McClellan Market Report and our Daily Edition.

There are two curious points about this relationship. The first is that the lag time which works best is about 13 months, instead of the 12 months that had worked before with the eurodollar COT data. And that lag time is a bit imperfect, with the stock market sometimes running a bit early or late compared to the model, and varying back and forth between early and late, so I’m never sure exactly how to interpret its message.

The second curious point is that the relationship did not work at all during the first 3 years of the SOFR contract’s existence. Correlation back then was horrible, but then, starting in late 2021, it seemed to finally click and start working. It may be that the SOFR was so new at first, and not being widely adopted yet, so the message from the big banks about future liquidity flows was just not yet contained in these data early on.

I will be continuing to feature this SOFR COT model in our twice monthly newsletter and Daily Edition, so, if you are interested in seeing how things turn out, and you are not already a subscriber, I hope you will decide to give one or both a try. You can sign up at https://www.mcoscillator.com/market_reports/.

Bed Bath & Beyond is splitting the bankruptcy-run auction of its Buy Buy Baby chain into two phases as the retailer struggles to nail down bids in a sale process now shrouded in doubt.

An auction for all of Buy Buy Baby’s assets was originally scheduled for 10 a.m. ET Wednesday. Now, only bids for the chain’s intellectual property, including its trademark and domain, will be accepted, according to people familiar with the matter.

The failed home goods retailer is planning to host a separate auction, potentially Thursday, where buyers can submit bids to keep Buy Buy Baby and its stores running, said the people, who weren’t authorized to speak publicly on the matter.

An initial winner will likely be chosen during Wednesday’s intellectual property auction. That bidder and other suitors can participate in the second auction. If Bed Bath & Beyond receives a higher offer for the entire banner than it gets for the intellectual property, that bidder could be selected and supersede the winner of Wednesday’s auction, the people said. 

The decision to split up the bidding comes after the retailer held separate sale proceedings for its Buy Buy Baby and Bed Bath & Beyond banners. 

More from CNBC:

First Republic employees are fleeing JPMorgan after the regional bank’s acquisitionInflation, interest rates likely to be stickier than markets are pricing, says Goldman’s OppenheimerOcado is ‘flipping grocery operations on its head,’ analyst says

The move, considered unusual in the world of bankruptcy, allows Bed Bath & Beyond to boost bids for its Buy Buy Baby chain as doubts grow about what, if any, offers will come in, some of the people said.

The banner, which sells baby goods such as strollers, clothes and cribs, has long been considered the crown jewel of Bed Bath & Beyond’s assets. It attracted interest from numerous bidders both before and after its parent company declared bankruptcy. Some prospective buyers considered keeping stores open. 

But as the auction drew nearer, interest in keeping those stores alive waned and the retailer has struggled to nail down bids in an increasingly uncertain sale process, some of the people said.

Bidders interested in purchasing Buy Buy Baby and operating its brick-and-mortar stores and online presence would need to purchase the bulk of its 100-plus locations to reach profitability. 

The expenses behind running the stores, such as leases, overhead costs and salaries, make it difficult to reach profitability if a buyer acquires only a fraction of Buy Buy Baby’s doors along with its intellectual property. 

“There’s not a profitable model where you only have 10 stores or 40 stores,” a person with knowledge of the matter previously told CNBC. 

Bed Bath & Beyond did not respond to CNBC’s request for comment.

A credit bid from pre-bankruptcy lender Sixth Street Partners, which could team up with an e-commerce platform, is considered a top contender, some of the people said. It’s unclear if the offer will go beyond the intellectual property assets. Sixth Street Partners did not respond to CNBC’s request for comment.

Go Global Retail — which owns the children’s wear brand Janie and Jack — was initially interested in keeping Buy Buy Baby stores open, but the number of locations it was interested in saving has since dwindled to about 20 stores, if any at all, CNBC previously reported. 

Direct-to-consumer online registry Babylist has submitted a bid to acquire some of Buy Buy Baby’s assets, such as its domain name and trademark, but opted out of bidding for its stores, CEO Natalie Gordon previously told CNBC.

Earlier this month, Overstock.com won the auction for Bed Bath & Beyond’s assets and purchased the banner’s intellectual property and digital assets for $21.5 million. The digital retailer didn’t agree to purchase any of Bed Bath & Beyond’s stores.

This post appeared first on NBC NEWS

Bed Bath & Beyond locations across America will soon be replaced by Burlington Stores outposts and a range of other businesses, after the failed home goods retailer auctioned off its leases as part of its bankruptcy proceedings, court records show. 

The doomed big-box store selected bidders for 109 of its leases after a Monday auction. Off-price giant Burlington agreed to take over 44 of the locations for $12 million, the largest share of the leases, records filed late Tuesday show. 

Burlington secured six more leases for $1.53 million outside the auction process, bringing the total number of locations to 50 for $13.53 million, records show. 

Many of the locations are considered “top notch,” said Bill Read, executive vice president of commercial real estate firm Retail Specialists. The firm provides retailers in growth mode an opportunity to snag leases in prime locations amid a dearth of quality commercial real estate.

“In aggregate, the Bed Bath & Beyond locations were some of the best that I’ve seen become available. They’re usually in large community centers with Target as an anchor and multiple other desirable anchor tenants in the shopping center,” Read told CNBC. 

“These are generally in well-established, mature markets that have a proven track record of generating high sales,” he continued.

Several other retailers snatched up the leases. Here’s a list of the top winners: 

Burlington Coat Factory: 50 leases for a total price of $13.53 million.Michael’s: Nine leases for $2.55 million.Haverty: Four leases for $468,334.

The other winners include grocers, premium furniture stores and discounters. Macy’s paid $1.2 million for a lease in ritzy Winter Park, Florida, for a potential Bloomingdale’s location, and Barnes & Noble secured a lease in Concord, North Carolina, for $129,015. 

Landlords apart from those companies won 37 of the leases, the next-largest portion after Burlington. Those landlords can now find their own tenants and potentially get a higher rent price than they’d be able to within the auction process.

The leases are for both Bed Bath & Beyond and Buy Buy Baby locations. Leases for the Buy Buy Baby outposts could be clawed back depending on what happens at an auction for the chain’s assets, Bed Bath & Beyond said in a court filing. 

The leases sold are for stores that range in size from 14,000 square feet all the way to 92,000 square feet. 

Bed Bath & Beyond raked in $24.41 million from the lease auction. A portion of those proceeds will likely go to unpaid rents at the locations and the rest will go to Bed Bath & Beyond to pay the retailer’s many creditors. 

More from CNBC:

More than $200 billion in Covid loans potentially stolen by fraudsters, watchdog saysTake a look inside the factory fueling candy giant Mars’ $1 billion ice cream ambitionsPokemon Go maker Niantic lays off 230 employees, cancels games

When Bed Bath & Beyond filed for bankruptcy in late April, the retailer had 468 leases to its name, and 153 of them were brought to auction earlier this week, records show. Successful bids went through for only 109 of them.

The retailer had said in court filings that another wave of lease auctions could take place. It is unclear if that process is underway or what will happen to the additional leases that weren’t auctioned off this week. 

Retail bankruptcies and off-price expansion

The influx of available stores comes as vacancy rates for shopping centers fell to 5.6% in the first quarter of this year, the lowest level since commercial real estate firm Cushman & Wakefield began tracking in 2007.

The lack of available retail space can hinder companies looking to expand. But retail bankruptcies can provide a unique opportunity to snatch space they couldn’t otherwise access.

When Burlington reported earnings for the three months that ended April 29, the company noted it planned to open 70 to 80 net new stores in fiscal 2023. It aimed to open even more in the coming years. 

During a call with analysts, CEO Michael O’Sullivan said the company had its eye on “retail bankruptcies.”

“We think these bankruptcies are likely to have a significant impact on the availability of attractive new store locations … we’re confident that these bankruptcies will strengthen our new store pipeline,” said O’Sullivan. 

“We hope in 2024 and 2025, some of the availability that we’re seeing from retail bankruptcies will give us the opportunity to open more,” he added.

Burlington’s decision to buy Bed Bath & Beyond’s leases wasn’t its first foray into bankruptcy-run lease auctions, the chief executive said on the call. 

“We have a very strong real estate team that has a lot of experience dealing with retail bankruptcies. Many of our most successful and productive stores today were once upon a time Circuit City, Toys R Us, Sports Authority, Linens ’N Things,” said O’Sullivan, rattling off a series of other failed retailers that came before Bed Bath & Beyond. 

“Some of our best stores were created from carved-up Kmart or Sears locations,” he added.

Read, the executive vice president with Retail Specialists, said it’s “no surprise” Burlington was the top bidder for Bed Bath & Beyond’s leases. 

“Burlington is in aggressive growth mode, these are fantastic locations and they’re getting a lot of value for their dollar,” Read said. “Companies like Ross and TJX already have enough stores in their fleet that they didn’t have to be as aggressive in an auction to get new stores, but it’s perfectly reasonable for Burlington to be aggressive to reach their store count desires.”

Read added, “They’re getting reasonable rents, they’re getting great locations, they’re getting great co-tenancy and they’d probably be in a bidding war with other retailers at higher rents for these locations if it was outside of an auction.”

This post appeared first on NBC NEWS

The New York Times’ 1619 Project founder Nikole Hannah-Jones said wealthy White people on the Supreme Court overturned affirmative action, adding that Justice Clarence Thomas is ‘irrelevant here.’

‘An elite, white majority determining after just 50 years of weak, half-hearted affirmative action efforts, that they are the ones to decide that enough has been done to address centuries of explicit racial exclusion against Black people is the most American ruling ever,’ Hannah-Jones tweeted following the historic Supreme Court ruling against affirmative action. ‘Let me make it simpler: Rich white people thinking THEY are the ones who get to say that society has done enough to mitigate that devastation of 350 years of explicit discrimination against Black people is the most American thing of all.’

‘Was going to write an essay about it, but why even bother. (Also, Clarence Thomas is actually irrelevant here. So thanks but no thanks),’ the ‘1619 Project’ creator said.

In a 6-3 decision, the Supreme Court ruled on Thursday that the use of race as a factor in collegiate admissions is a violation of the  14th Amendment’s equal protection clause.

Chief Justice John Roberts wrote the majority opinion, stating that ‘A benefit to a student who overcame racial discrim­ination, for example, must be tied to that student’s courage and determination.’

‘Or a benefit to a student whose herit­age or culture motivated him or her to assume a leadership role or attain a particular goal must be tied to that student’s unique ability to contribute to the university. In other words, the student must be treated based on his or her ex­periences as an individual—not on the basis of race,’ reads the opinion.

READ THE SUPREME COURT AFFIRMATIVE ACTION OPINION – APP USERS, CLICK HERE:

Justices Clarence Thomas, Samuel Alito, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett joined Justice in the majority opinion.

This post appeared first on FOX NEWS