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How Big Tobacco used George Floyd and Eric Garner to stoke fear among Black smokers

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How Big Tobacco used George Floyd and Eric Garner to stoke fear among Black smokers

Retired Deputy Police Chief Wayne Harris stood in entrance of Black lawmakers and clicked to a slide of George Floyd, pinned down on the pavement with Police Officer Derek Chauvin’s knee on his neck.

“I selected this image deliberately as a result of I need to set the tone,” he mentioned.

However Harris hadn’t come to the luncheon to debate police reform or Floyd’s homicide.

He was there on the invitation of tobacco maker Reynolds American to induce representatives to not ban menthol cigarettes, the flavour of alternative for the overwhelming majority of Black people who smoke. Utilizing the specter of Floyd’s tragic dying and the social justice protests it impressed, Harris recommended that prohibiting menthol cigarettes would enhance policing in Black communities and create a brand new layer of racism in America.

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That message echoed via the third day of the annual gathering of the Nationwide Black Caucus of State Legislators on the Marriott Marquis lodge in Atlanta in November. Harris didn’t point out that he serves as chair of the board of the Legislation Enforcement Motion Partnership, a company that in 2019 obtained a 3rd of its funds from Reynolds American.

The lawmakers had been advised through the first course that the $40,000 invoice for his or her lunch — pork chops and candy tea — had been picked up by that very same firm, the most important producer of menthol cigarettes within the U.S.

Reynolds American’s multibillion-dollar market is beneath risk. About 150 cities and counties have positioned some type of restriction on the sale of menthol cigarettes, most issuing an outright ban. If California votes to ban the sale of menthols in November, it might comply with Massachusetts because the second state to take action. The Meals and Drug Administration has drafted a nationwide ban that would comply with within the subsequent few years, which estimates recommend may save greater than 600,000 lives, together with nearly 250,000 Black lives.

However it may reduce the roughly 30 billion Newport menthol cigarettes Reynolds American sells yearly to zero.

Since final summer season, the Los Angeles Occasions and the Bureau of Investigative Journalism have tracked strategic efforts throughout the nation by Reynolds American to maintain menthol cigarettes within the palms of people who smoke.

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The corporate has employed a workforce of Black lobbyists and consultants, together with former congressman Kendrick Meek (D-Fla.), and sponsored the group led by civil rights activist and MSNBC political present host the Rev. Al Sharpton. These figures have in flip stoked fears amongst Black communities about what the bans may imply.

Tobacco firm Reynolds American, whose cigarette market is beneath risk from restrictions and bans on the sale of menthol cigarettes, has sponsored a company led by the Rev. Al Sharpton in its marketing campaign towards menthol bans.

(Christian Monterrosa / Related Press)

Reynolds American for years has enlisted outstanding Black personalities in its lobbying efforts. This investigation has uncovered new particulars about how people and organizations engaged on Reynolds’ behalf have didn’t correctly declare their hyperlinks to the corporate. Lobbyists for the corporate in Denver efficiently killed a invoice that may have banned menthol cigarettes. And in Los Angeles, protesters had been paid to attend a rally organized by a gaggle with shut ties to the corporate.

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“The net that retains menthol current in cities just isn’t an accident. It’s not pushed by some sort of innate Black style for menthol,” mentioned Keith Wailoo, a historical past professor at Princeton College and writer of “Pushing Cool,” a ebook about menthol cigarettes. “It’s a byproduct of a posh and relentless story of how markets had been constructed and sustained.”

In response to an inventory of questions, Reynolds American advised reporters it believed that “regulating menthol cigarettes in another way than non-menthol cigarettes would lead to quite a few troubling unintended penalties, together with vital progress in contraband menthol cigarettes offered via an already widespread underground market.”

The corporate didn’t handle questions relating to its invoking of police brutality fears to guard its gross sales.

Sporting a darkish swimsuit and a buzz reduce, Harris adopted that narrative on the luncheon, when he gestured to a picture of Floyd taken exterior the shop often known as the most effective place in Minneapolis to purchase menthols. The inference was: What occurs if Black individuals can’t legally purchase the cigarettes they like? Harris warned that driving the market underground would lead to intrusive policing and racial friction in Black communities that already really feel unfairly focused by regulation enforcement.

“I need us to bear in mind not solely the homicide of this man on the streets in Minneapolis however the unrest that occurred afterwards,” mentioned Harris, chatting with a whole bunch of Black lawmakers and their staffs. “I need to discuss to you about how policing intersects with the group and the way choices that you just make as legislators, as residents, affect how we find yourself coping with individuals on the streets.”

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Harris’ group, often known as LEAP, mentioned the push towards menthol bans is “the most recent iteration of the drug struggle besides that it — greater than most legal guidelines you see as of late — is overtly racist.” When requested about Reynolds American’s funding, LEAP mentioned its “message has been the identical for twenty years, and if somebody needs to donate to us to say it, bully for them.”

However different Black advocacy teams, together with the NAACP, “applaud” efforts to ban menthol cigarettes, saying that the “tobacco business is on a slender quest for revenue, they usually have been killing us alongside the best way.”

Tobacco-related cancers declare 40,000 Black lives every year, at a fee 17% greater than that for whites and 74% greater than for Asians and Latinos, in response to most up-to-date information. However Harris didn’t warn towards life-threatening diseases related to smoking. His mission was to make sure that menthol cigarettes — a gateway to hooking younger individuals — stayed authorized.

Cooler than cool

Menthol itself is misleading. Suck on a menthol cough drop and also you’ll really feel your airways open up, a cooling breeze as you breathe in and a momentary easing of the scratchiness in your throat. That’s an phantasm — the results of a response between the menthol and the receptors on the floor of your nerves.

An old Kool cigarette ad that reads "Kool! 'Cause we don't like rough puffs."

A classic Kool cigarette advert. Through the years, the tobacco business has studied Black tradition to fine-tune advertising techniques.

(Rita Harper / For the Bureau of Investigative Journalism)

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Wailoo remembers the billboard advertisements that towered over the sidewalks in Seventies New York Metropolis, a minty-green cover that pushed the contemporary, easy style of a menthol cigarette. It was a product courting to the Twenties, repackaged as new to focus on the big, concentrated Black inhabitants in America’s quickly altering cities.

The tobacco business, whose early success was constructed on slave-run tobacco plantations, had studied Black tradition to fine-tune advertising. At occasions, it got here to conclusions based mostly on previous racist tropes, similar to one Seventies advertising memo that recommended that Black individuals choose menthols as a result of they’re “mentioned to be possessed by an nearly genetic physique odor.” However the corporations additionally broke new floor.

“I grew up studying Black publications like Ebony and Jet, and menthol was throughout it,” mentioned Wailoo, the historical past professor and writer. Tobacco corporations sponsored occasions and handed out free menthols, usually to youngsters in Black neighborhoods. Wanting again, Wailoo now realizes he grew up on the “excessive level of the racialization of menthol smoking.”

A Seventies examine in Detroit commissioned by R.J. Reynolds (which grew to become a subsidiary of Reynolds American when the corporate merged with British American Tobacco in 2004) examined how the corporate ought to promote on predominantly Black buses that handed via white neighborhoods. The corporate was involved that white people who smoke could be postpone by advertisements for manufacturers similar to Kool and Newport that featured Black fashions and tradition.

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The authors concluded that the buses’ “exterior promoting ought to be suitable to each market segments” however that “inside promoting ought to particularly handle this [Black] group.”

A crumpled empty pack of Kool cigarettes on the ground in New Orleans.

A discarded Kool cigarette package deal in New Orleans. The demand for menthol cigarettes amongst Black people who smoke is excessive. In the present day, menthol is the selection for 30% of white people who smoke and 85% of Black people who smoke.

(Rita Harper / For the Bureau of Investigative Journalism)

A multibillion-dollar lawsuit in 1998 towards the nation’s 4 largest cigarette makers severely curbed how the business may promote. Though the billboards that Wailoo remembers are gone, the demand for menthol cigarettes amongst Black people who smoke persists. Within the Fifties, 2% of white people who smoke selected menthols, in contrast with 5% of Black people who smoke, in response to an business survey. In the present day, that 3% hole has grown right into a chasm: Menthol is the selection for 30% of white people who smoke and 85% of Black people who smoke.

Paid protesters

For 3 sizzling hours on the morning of June 15, 2021, protesters stood exterior Los Angeles Metropolis Corridor wielding indicators carrying messages similar to “No ban on menthol” and “Whites can smoke. Blacks can not.”

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On the again of their matching white T-shirts was the emblem of the group that had organized the rally, Neighborhood Ahead, a brand new, comparatively unknown group led by an area pastor.

Describing itself on Twitter as “a collective of actual voices from Black and Brown communities working collectively to result in actual change,” the group emerged after Floyd’s homicide in Minneapolis in 2020. It has since taken purpose at California’s plan to ban flavored tobacco, which incorporates menthol. The Senate invoice, often known as SB 793, was made regulation in August 2020. However a petition towards it signed by greater than 600,000 voters pushed it to a referendum due in November. So far, R.J. Reynolds and Philip Morris USA have spent greater than $20 million on a marketing campaign to dam the invoice.

“California fought Massive Tobacco and received,” the invoice’s writer, then-state Sen. Jerry Hill (D-San Mateo), mentioned when R.J. Reynolds first indicated it might search a referendum. “This shameless business is a sore loser and it’s relentless.”

Protesters with signs that read "Stop the Ban" in Boston on Nov. 6, 2019.

Pratik Patel, middle, of Jay’s Smoke Store in Worcester, Mass., joins a protest exterior the Massachusetts State Home in Boston in 2019. If California votes to ban the sale of menthol cigarettes in November, it might comply with Massachusetts because the second state to take action.

(Pat Greenhouse / Boston Globe)

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Earlier than that June rally, a textual content message had gone out to recruit protesters: “Menthol T-shirts will probably be supplied. … The pay is $80 for 2½ – 3 hours.”

Pastor Ok.W. Tulloss, Neighborhood Ahead’s public face, is a former chief of the native chapter of the Sharpton-led civil rights group Nationwide Motion Community, which has been funded by Reynolds American. Tulloss was completely happy to discuss the work that Neighborhood Ahead was doing to struggle SB 793. However when requested the place the group bought its cash, he mentioned that “we are able to’t deal with these sidebar conversations” and that reporters ought to “verify public data.”

Little public info exists about Neighborhood Ahead. Though the Los Angeles-based Tulloss is commonly described because the group’s co-founder, enterprise filings lead 1,500 miles east, to Missouri. There, the group was integrated by Charles Hatfield, a lawyer specializing in authorities relations litigation. Requested to elucidate how his position with Neighborhood Ahead, a small grass-roots motion, fitted with this work, Hatfield mentioned: “I don’t really feel any obligation that will help you with that.”

Even the particular person listed because the chair of Neighborhood Ahead’s board, the Missouri-based lobbyist Leroy Grant, declined to reply primary questions concerning the group and his curiosity in menthol cigarettes. “I’m not likely capable of converse on that concern,” he mentioned earlier than hanging up the telephone.

Though public data don’t present how the group is funded, they do reveal that considered one of its administrators is the California-based lobbyist Ingrid Hutt. She labored for Reynolds American for a number of months in 2019, employed to “promote the unintended penalties of the menthol ban within the African-American communities within the Metropolis of Los Angeles,” in response to lobbying disclosures. She didn’t reply to a number of makes an attempt to achieve her.

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A Newport advertisement with two smokers that reads, "Newport tastes fresher!"

Nearly all African People who smoke began with menthol cigarettes, which helped recruit an estimated 10 million extra U.S. people who smoke since 1980. Above, a Newport cigarette commercial.

(Rita Harper / For the Bureau of Investigative Journalism)

One other director is Corey Pegues, who was as soon as related to a Reynolds American-funded group known as the Nationwide Group of Black Legislation Enforcement Executives, or NOBLE. Tulloss mentioned NOBLE, which has campaigned throughout the nation towards menthol bans, first introduced the difficulty to his consideration.

Reynolds American didn’t touch upon these factors.

“These Black leaders act as if menthol cigarettes simply drop from the sky and aren’t the results of many years of racist, pernicious focusing on. They permit these … tobacco business executives to cynically exploit our reputable grievances,” mentioned Carol McGruder, co-founder of the African American Tobacco Management Management Council. “The time of this being acceptable is gone.”

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Thriving off addictions

Nearly all African People who smoke began with menthols. The product has helped recruit an estimated 10 million additional U.S. people who smoke since 1980, and analysis means that menthols may be tougher to surrender. This will likely clarify why Black people who smoke attempt to stop greater than white people who smoke, however they’re much less prone to succeed.

A row of Newport cigarettes on a shelf at the Food Mart in New Orleans.

Newport cigarettes on the market on the Meals Mart in New Orleans. Reynolds American sells roughly 30 billion Newport menthols a yr.

(Rita Harper / For the Bureau of Investigative Journalism)

Menthol cigarettes are sometimes cheaper in predominantly Black neighborhoods, the place retailer homeowners have sought contracts with producers of the preferred manufacturers.

When President Obama signed into regulation a ban on flavored cigarettes, members of the Congressional Black Caucus, which has obtained a whole bunch of hundreds of {dollars} in donations from the tobacco business, had been seen as key in securing an exemption for menthol. Many members of the caucus have since come out in assist of a nationwide ban on the sale of menthol cigarettes.

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The business has grown ever extra reliant on income from menthols. Final yr, they made up greater than a 3rd of whole cigarette gross sales, the best proportion ever. LaTrisha Vetaw, who campaigned for banning their sale in Minneapolis, described menthols because the business’s “money cow.”

Reynolds American introduced in about $15.3 billion in U.S. gross sales final yr. About half got here from Newport cigarettes.

“If menthol is banned, you recognize they’ll lose some huge cash, in order that they’re paying off a couple of Black males to exit and attempt to cease it,” mentioned Vetaw. “They know who has a voice in our group.”

Sharpton and Meek didn’t reply to a number of inquiries from The Occasions. However prior to now, Sharpton has cited the 2014 dying of Eric Garner by the hands of police in New York to argue towards a ban.

“They killed him over ‘loosie’ cigarettes,” he mentioned at a 2016 discussion board held in an Oakland church, referring to allegations that Garner was illegally promoting single cigarettes. “What number of of those sort of conditions are we going to have if we maintain having these sort of engagements round criminalizing of low-level offenses?”

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Public well being advocates stress that the insurance policies goal the sale of menthol cigarettes, not their use, which ought to ease issues about how the bans may result in higher policing of Black communities. However there are few extra outstanding voices in Black communities than pastors like Sharpton and Tulloss.

“Even going again to the interval of enslavement, usually [Black] preachers had been appeared to be the spokespersons” for the Black group, mentioned Obery Hendricks, a scholar at Columbia College who has studied the intersection of faith and political economic system. “The tobacco business is aware of the maintain that Black pastors have over Black church buildings.”

Meek’s agency organized conferences this month with the White Home’s Workplace of Administration and Finances — accountable for evaluating the FDA’s proposed ban — for each Reynolds American and Sharpton’s Nationwide Motion Community.

Regardless of the variety of Black lobbyists engaged on behalf of the tobacco business, there’s a vital lack of Black illustration throughout executive-level and board-level positions in any respect the most important cigarette makers. In contrast with those that have lobbied for Reynolds American towards banning menthol cigarettes, nearly all the firm’s senior administration workforce is white.

Positions of energy

Denice Edwards sat within the again row of the committee room on the fourth flooring of Denver Metropolis Corridor. She was sporting all black, however her shock of amber hair stood out, even among the many crowd of campaigners sporting loud T-shirts with slogans sprawled throughout their chests.

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Denver’s Security, Housing, Training and Homelessness committee was debating a invoice that may ban the sale of flavored tobacco, together with menthol cigarettes. It drew extra individuals to Metropolis Corridor than another time because the begin of the pandemic, and unusually, it was being mentioned by the committee for the third time.

In contrast to a lot of these within the viewers on that brisk November morning, Edwards, who’s staunchly against banning menthols, wasn’t there to talk. Her work had already been performed. She’d spoken to various the council members forward of the assembly. She was merely “monitoring the difficulty.”

Councilmember Kevin Flynn, who sits on the committee, had proposed an modification to the invoice that may exempt menthol cigarettes from the ban.

“She simply known as me up and requested for a gathering,” Flynn mentioned of Edwards, whom he’s identified for many years. “It was earlier than the invoice was even launched. … Denice was really the primary one who approached me about it.”

However Edwards isn’t simply an previous acquaintance. She’s a lobbyist employed by Reynolds American — considered one of a minimum of three consultants working for the corporate on this concern in Denver. Though Flynn mentioned he was conscious of her ties to a tobacco firm, she didn’t disclose them on town’s lobbying register. Edwards didn’t reply to questions on her failure to correctly register, as Denver’s municipal code requires.

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The situation additionally reveals how Reynolds American consultants have been key in furthering the corporate’s pursuits in ranges of presidency it has not often lobbied earlier than.

It felt “very uncomfortable for me, as a white man, to be requested to inform my Black constituents, ‘You may’t purchase this anymore,’” Flynn advised a reporter. “The tobacco business has marketed identical to any business markets to its goal market, proper? … I want they wouldn’t do it in any respect, however I’m not going to single out Black customers.”

Flynn and Edwards first met when he was a reporter on the native paper, the Rocky Mountain Information, and he or she was working for town’s first Black mayor, Wellington Webb. Practically twenty years after he held workplace, Webb, whose well-known door-to-door campaigning footwear are on show on the Smithsonian Establishment in Washington, stays an enormous determine in Denver. In early October, not lengthy earlier than Flynn launched his modification, Webb wrote an opinion piece for the Denver Put up, mentioning Garner’s dying.

“Legislation enforcement hardly wants extra purpose to cease us from going about our lives. However that’s what a menthol ban may do,” Webb wrote. (When requested concerning the menthol ban, Edwards mentioned: “I’m on the facet of Mayor Webb.”)

Just a few weeks later, Webb’s opinion piece was faraway from the newspaper’s web site. A correction in print famous that he had not advised the editors he was working as a advisor for Reynolds American.

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He didn’t reply to a number of inquiries for remark.

A man blows smoke while sitting in front of a green artwork

Darren Blake vapes at Myxed Up Creations in Denver, the place he works. The Denver Metropolis Council has been pushing to ban the sale of flavored tobacco, together with menthol cigarettes.

(Helen H. Richardson / Denver Put up)

Just a few doorways down the hall from the committee room in Denver Metropolis Corridor, Councilmember Amanda Sawyer, who co-sponsored the invoice that may ban the sale of flavored tobacco, had been doing the mathematics. In purple marker on a whiteboard had been the numbers 1 to 13. A collection of crosses and dashes subsequent to every indicated how she thought the 13 members of the Metropolis Council may vote on the invoice and its amendments. By her estimation, she had the numbers.

Certainly, as Sawyer predicted, Denver’s Metropolis Council voted in favor of banning nearly all varieties of flavored tobacco, together with menthol cigarettes, in December. Regardless of Edwards’ efforts, the modification to exempt menthol had failed. All that was left was for town’s mayor, Michael Hancock, to signal the invoice into regulation.

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However one other Reynolds American advisor, Artwork Means, who had beforehand spoken with the mayor’s workers concerning the proposed ban, wrote to Hancock’s workplace imploring him to veto the invoice, in response to emails launched in response to a public data request.

“Sadly, it’s the very communities the ban is meant to guard that can interact in gray market exercise rising the spectrum of criminality for each youth and adults of coloration,” wrote Means. However nowhere in his e-mail did Means clarify his ties to Reynolds American. And like Edwards, he’s not on town’s lobbying register. He advised a reporter he believed his state registration would suffice.

Means additionally mentioned that his e-mail, considered one of dozens despatched to the mayor’s workplace on this concern, “was doubtless no extra helpful than others.” He added: “In an effort to water down my message, taste ban proponents … would really like me to shout from the rooftop relating to my shopper. I’ve disillusioned on this regard once in a while however by no means purposefully tried to cover my affiliation.”

In his 11-year tenure Mayor Hancock had vetoed only one invoice.

The day after Means’s e-mail arrived, the mayor wrote a letter to the council members. The invoice banning menthol cigarettes had change into the second.

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Kristin Scott Thomas confirms secret wedding to Bloomberg News' John Micklethwait

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Kristin Scott Thomas confirms secret wedding to Bloomberg News' John Micklethwait

British actor Kristin Scott Thomas has wed Bloomberg News editor Johh Micklethwait.

The “Slow Horses” star confirmed her nuptials on Tuesday’s “Ruthie’s Table 4” podcast after host Ruth Rogers mentioned the wedding in the episode’s introduction.

“Kristin is basking in love and the joy of just a few weeks ago marrying the editor and my friend John Micklethwait,” Rogers said. The Independent had previously reported that the two, who reportedly dated for about five years, secretly wed in September.

Representatives for Scott Thomas did not immediately respond Wednesday to The Times’ request for comment.

Scott Thomas added that she had been “longing for stability” rather than traveling the world, including sleeping in the same bed for more than two weeks at a time. Her work in television has allowed for that.

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“So much life happens in those four years,” Scott Thomas said of her time on the AppleTV+ thriller series. “People have died, people have been born, people have got divorced, people have got married. And this year we’ve had two weddings. We had Jack [Lowden]’s wedding [to Saoirse Ronan] and my wedding.”

The Oscar-nominated star of “The English Patient” said she and Micklethwait got married in Rutland, England, where his family is from. Discussing the wedding menu on the food podcast, the Cornish performer said that they had coronation chicken, a cold chicken salad famously created for a luncheon during Queen Elizabeth II’s 1953 coronation. As a wedding present, her sister collected and compiled maternal and paternal family recipes and put them into a book for her.

The “Four Weddings and a Funeral” and “Gosford Park” star previously was married to obstetrician François Olivennes from 1987 to 2005. The former couple share three adult children.

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How Trump's second presidency could bring more drama to Hollywood

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How Trump's second presidency could bring more drama to Hollywood

Already facing retrenchment and existential concerns about its business model, Hollywood is bracing for more potential volatility from the incoming Trump administration.

While President-elect Donald Trump has not laid out specific plans for the entertainment industry, analysts said his proposed broader policies on global tariffs, as well as the threat of retaliation against companies, could put a chill on Los Angeles’ signature business.

“If I were wealthy today, I would not be buying stock in the entertainment world,” said Stephen Galloway, dean of Chapman University’s Dodge College of Film and Media Arts. “There’s going to be a lot of turbulence.”

California Gov. Gavin Newsom recently proposed upping the annual cap on state film and TV tax credits to $750 million, from its current total of $330 million. He and others have called for the federal government to step in and keep the U.S. competitive in global production.

But it’s unlikely that Trump would throw the film and TV business a lifeline, especially in any way that could help Newsom and deep-blue California.

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“Let’s face it, liberal Hollywood is the enemy,” Galloway said. “Even though this is a guy who made his name in entertainment, he’s not going to be a pro-entertainment-industry politician.”

Many Hollywood stars and executives were vocal backers of the Democratic nominee, Vice President Kamala Harris, lending her their endorsements and their pocketbooks after pushing for President Biden to withdraw from the race.

Some executives hedged their bets, though. Warner Bros. Discovery Chief Executive David Zaslav demurred when asked this summer whom he supported for president, saying he preferred someone who would pave the way for more consolidation.

On Thursday, the Motion Picture Assn. trade group, which lobbies on behalf of the studios, congratulated Trump and the incoming Congress on their victories.

“We look forward to working with them on a wide range of important issues for the film, TV, and streaming industry, which supports more than 2.7 million American jobs, boosts more than 240,000 businesses in cities and small towns across the country, and delivers over $242 billion in wages to our workforce each year,” the group said in a statement.

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Analysts were also concerned about the effect a potential tariff war could have on the entertainment industry.

If Trump follows through with his threats of global tariffs, nations like China could ban U.S. imports, including film and TV shows, which would dent the already-reeling distribution market, Galloway said. During Trump’s first term, the president’s trade war with China was partly blamed for derailing Hollywood’s relationship with the country.

The potential for retaliation could also be a problem, said Kevin Klowden, executive director of the Milken finance institute.

As a candidate, Trump railed against CBS and said he wanted the network’s broadcast license pulled for editing one of Harris’ answers during her interview on “60 Minutes.” The news program has flatly denied allegations of deceptive editing to help Harris.

That type of directive would likely get tied up in the courts, but “it’s the threat that becomes the issue,” Klowden said.

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Films and TV shows that paint Trump in a negative light run the risk of drawing his ire, which could then affect their parent companies, Galloway said. Media and entertainment giants might be wary of the situation Walt Disney Co. found itself in after it battled Florida Gov. Ron DeSantis over the state’s so-called Don’t Say Gay anti-LGBTQ legislation.

Recently, the Trump biopic “The Apprentice” struggled to find a distributor after the former president’s team threatened legal action. The film fared poorly at the U.S. box office.

More conservative media, on the other hand, could see a boost in their stock, including the Murdoch family-owned News Corp., which publishes the New York Post, Wall Street Journal and Investor’s Business Daily, and Fox Corp., parent company of Trump’s favored Fox News.

“Back in the day, studios were little companies making movies,” Galloway said. “Now they’re cogs in enormous, multinational operations where one domino suddenly sends 50 others falling.”

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AI startup funding hit a record in L.A. area last quarter. Here's who got the most money

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AI startup funding hit a record in L.A. area last quarter. Here's who got the most money

The Bay Area has long held the title for attracting the most venture capital funding in the nation, and that naturally includes the hot market for artificial intelligence startups. After all, San Francisco is home to some of the most prominent AI players, including ChatGPT maker OpenAI.

But the Greater L.A. area is growing its presence in this space. The region broke a record in the third quarter, capturing $1.8 billion in VC investment for AI startups with a total of 31 deals, according to a new report by research firm CB Insights. L.A. ranked as the second-biggest market for AI investments, up from the second quarter, in which it ranked behind Silicon Valley, New York and Boston.

The big bump came mostly from a single deal: a $1.5-billion funding round for Costa Mesa-based defense technology firm Anduril Industries, the report said. The deal, which was announced in August, was led by Founders Fund and Sands Capital. The round valued the seven-year-old business at $14 billion.

Anduril, which manufactures autonomous weapons systems, including submarine drones, has said it would use the additional investment “to increase hiring, enhance processes, upgrade tooling, increase resiliency in its supply chain and expand infrastructure.” The company, co-founded by entrepreneur Palmer Luckey, has signed more than $1 billion in public contracts with the U.S. and allied governments. His company and other tech businesses that serve the defense industry are expected to get a boost from the incoming Trump administration.

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For years, L.A. has been working to build itself as a major home for innovative technology, even at one point marketing the region as “Silicon Beach.” Some hope that AI can help boost Southern California as a tech destination, especially with applications in areas such as manufacturing, entertainment and healthcare.

“L.A. is definitely becoming a serious tech hub,” said Ivan Nikkhoo, a managing partner with Navigate Ventures, adding that the area has plenty of schools providing engineering talent and a lot of networking events. “All the elements are there.”

While Los Angeles is the epicenter of entertainment, where AI is expected to have serious ramifications, much of the recent tech investment was focused on other industries, including healthcare.

Startups in the L.A. region that raised significant capital in the quarter included Regard, a business that is offering an AI-powered clinical insights platform for doctors. The firm raised $61 million. Another healthcare-based company, Pearl, which creates artificial intelligence tools to help read dental patient X-rays, raised $58 million — which the company says is the biggest investment ever in dental AI.

Pictor Labs, a West Los Angeles-based startup spun off from the UCLA engineering school, raised $30 million in the third quarter, bringing its total venture capital investment so far to about $49 million. Pictor Labs uses AI to quickly analyze tissue samples digitally. The startup says it could save pathology labs significant time and resources, as well as reduce labs’ footprint in toxic reagents.

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“It shows the strong interest and support of our investors for AI-driven solutions, particularly in the healthcare sector,” said Pictor Labs Chief Executive Yair Rivenson. The funding will help grow the company’s 24-member staff and accelerate its product development, Rivenson said.

AI startups globally saw the number of deals increase to 1,245 in the third quarter, up 24% from the previous quarter, indicating investor interest remains strong in the category, according to CB Insights. Overall venture deals declined 10% compared with the previous quarter, the research firm said. In the L.A. area, venture capital investments bucked national trends, rising 38% compared with the second quarter.

The U.S. market captured 68% of the global venture capital funding in AI companies, with Silicon Valley taking up roughly half of that amount.

Hollywood studios are in discussion with companies such as OpenAI to potentially license video footage to train AI models. And last month, L.A. residents got a sneak peek at what that could look like at a generative AI film competition in Culver City.

The so-called Culver Cup competition, which was hosted by Amazon’s AWS Startups and L.A.-based tech firm FBRC.ai, showcased eight films that were created with AI tools. The winning film was a narrative that explored how food helped an elderly woman with dementia remember her life with her late husband. Judges noted that the top films honed in on truly human stories.

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AI is particularly controversial in Hollywood, where entertainment industry unions have fought hard for protections against digital automation that could kill jobs.

“People are really fearful about what they don’t know,” said Todd Terrazas, co-founder of FBRC.ai. “Having these types of showcases help show people what is possible today with these tools.”

Terrazas said he has noticed more investments in the area’s AI startups during the last two years. L.A. has an edge over other cities’ AI communities in entertainment, media, aerospace, manufacturing and gaming, he said.

“I think it’s really us leaning into our strengths with the industries that are prominent here in Los Angeles and doubling down on building these new startups,” he said.

There will also be an AI International Film Festival, screening around 20 short films, held at the Los Feliz Theatre next month.

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